Section 6 Modification of Operating System and Managing System of Post

l980s and early 1990s was the period of planned economy transferring to market economy. The focus of post enterprise's reform was the reform on the microstructure of enterprise management and didn't involve the reform on operating system and managing system, so reform on operating system became the main task for the middle and late 1990s.

A. "3 steps" of system reform

From the foundation of new China and the establish of MPT to 1998, MPT and post administration bureau in each province, autonomous region and city carried out the system of "unified administration and enterprise" which had the functions of administration and enterprise management. Such a management system of "unified post and telecommunication" and "unified administration and enterprise" played an important role for post and telecommunication breaking away from the dilemma, compensating each other, centralizing capitals and materials to carry out key communication construction, rapidly develop network, increase communication ability, enlarge service scope during the period of planned economy and after the reform and opening. But under socialistic market economy system, it gradually showed the problems that the original system went against the rapid and healthy development of post and telecommunications, went against the unified program of communication construction and communication industry management. The "3-Determination Plan" approved by the National Establishment Committee in 1992 determined that the reform of post organization should change the system of unified administration and enterprise, and gradually carried out the separation of responsibilities of administration and enterprise. From 1992, MPT carried out the procedure of "3 steps" of the separation. On the first step, it accomplished the separation of administration and enterprise in the units of post industry, material construction and stamp collecting. It transferred the administration management functions of the two general bureaus to integrated departments, while the enterprise management functions of the integrated departments were transferred to the two general bureaus, and set up a policy, regulation and communication industry management organization. On the second step, from 1994, MPT further promoted the separation, enforced the macro management of communication industry, set up Post Department and Telecommunication Administration Department. It changed General Post Bureau and General Telecommunication Bureau to separate- accounting enterprise respectively, to operate post and public telecommunication business of the whole country. On the third steps MPT would actively create conditions to prepare for the final realization of separation of post and telecommunications, administration and enterprise.

B. Deepen Post Reform

In the middle of 1990s, socialistic market economy further developed, which made the situation of China Post more severe. It faced the challenges in market competition, deficit, technical ability, operation management, system, etc. Especially in system, post operation system and management system basically remained the situation of the planned economy. Post in the world, especially post in developed countries, had made great reform in operation system and management system, and basically finished the transition from state-run, monopolized operation to full-of-competition marketization, enterprisation and companization. In operation modes, it had transferred from manual operation to mechanization, automation and electronization. In business, it had developed from simple business of mail, parcel and remittance to diversified business which fitted for the requirements of market and customers. After the reform, post was vigorous and changed from deficit to profit.

The challenge of native market and the experience of foreign post showed that China Post should have new ideas and new measures to deepen reforms on system. In 1996, the Party and the State put forward the task of realizing two fundamental changes, i.e. economic system changed from traditional planned economy system to socialistic market economy system, economic increasing style changed from open to concentration. MPT leaders pointed out that to realize the two fundamental changes, post should set up the operation and management system which fitted for socialistic market economy and its own features and should develop around market, and reform around development. The way out for post was the reform.

From Aug.3 to Aug.6, 1997, MPT held the national post conference. The central task of this conference was to research the reform of China Post, solve the Problems of China Post's cross-century development, solve the problems of developing from traditional post to modern post and China post's going out of the difficulties to realize benign circle. The conference determined the ideology, guidelines and developing objectives of cross-century continuous development of China Post, i.e. taking concept transformation as the forerunner, development as the objective, to actively promote the two fundamental changes and the constructing of the two civilizations. By 2000, it would set up the post network with reasonable layout, advanced technology, scientific management, rapid delivery and excellent service. By 2010, it would set up the post network of rapid transportation, mechanical and automatic operation, electrical operation, information management and diversified services to meet the requirements of national economy and social development. The whole post would rank in the advanced post level in the world.

MPT decided that post work would put reform on prominent position and undertake reforms as following:

Firstly, to modify management organization and reform on management functions. The functions of General Post Office and Post Department in the Post Administration Bureau would change from business and regulation management to be responsible for drawing up network technology and business policy, drawing up and implementing network construction programme, developing network business, especially new business.

Secondly, to reform on post operation system, actively promote specialized operation. Each post profession should carry out economical laws, start from market requirements, change from profession management to profession operation, make it become the economic entity with economic cooperative postion and self-operation authority.

Thirdly, to reform on post network structure, fully implement central office system, optimize post network resource configuration. The whole productive organization would be divided into two major systems, i.e. transportation and mail processing system with central office as its main body, and operation delivery system with post offices as its main body. The conference fully disposed to accelerate the implementation of central office system. By 2000, MPT would finish the modification of productive and operating post organizations and operate it according to the central office system. After the national post conference, the General Post Bureau carried out the operation of central office in East China areas to obtain the experience of popularizing it to the whole country. Fourthly, with the market as the guidelines, to reasonably modify business structures and widen the scope of post business. Post would face diversified market, i.e. communication market, transportation market, financial market, cultural market, information market and all kinds of labour markets. So post department should actively develop new-business and cultivate the increasing point of new business, as well as delivery business. Fifthly, to modify, improve, establish and perfect regulations that should fit for market economy and modem post.

C. Separation of post and telecommunications

(1)Separation of post and telecommunications To accelerate the realization of the objectives of post system reform, and exploit the method and experience of separating post and telecommunications, at the beginning of 1997, MPT decided to try to carry out separation of post and telecommunications in Chongqing city and Hainan province. After Chongqing became the municipality directly under the Central Government, since April 10,1997, post and telecommunications were separate, each set up an administration bureau. On May 9, 1997, Post Administration Bureau of Chongqing was established. By the end of July, post offices in 44 districts and counties were established and operated according to the new system. From March 1997, Hainan Province started its separation of post and telecommunication. its basic structure was' the organization of the Provincial post administration bureau remained the same, post office and telecommunication office were set up in each city and . county, all persons, capital and materials were separated.

The separation of post and telecommunication was an important reform for communication enterprises to realize specialized operation under the new historical condition. It was the requirements of post system reform as well as the needs for their own development. Through separation, according to their own features and market laws, post and telecommunication could enforce management, accounting and operation, improve operation management level, promote the enterprises rapidly go into the market, Promote the two fundamental changes and further accelerate the development of both post and telecommunications. For example, when post and telecommunication in Chongqing were separated in 1997, it became the year of fastest post development in Chongqing post history. Post business and income reached 220 million Yuan and 380 million Yuan, increasing 12'4% and 59% respectively comparing to that of the last year. From Jan. 1998 to Sept. 1998, post business and income increased 24% and 9.51% comparing to that of the same period in the last year.

The decision of organization reform made by the state in March 1998, promoted the steps of the separation of post and telecommunications. Based on the research and summarized the experiences of the trials, the newly-established Ministry of information industry drew up and issue the "Guidelines of separation of post and telecommunications" and inspected to realize the separation in the whole industry by the end of 1998. Because its clear guidelines, correct policies and concrete measures, the separation Progressed steadily and smoothly. By Oct. 1998, the separation in most of counties and cities had finished. The separation in prefectures and cities had been carried out and the separation of the whole industry had finished by the end of 1998. Post Administration Bureau was set up in each province, autonomous region and city according to the regulations. After the separation, post faced many difficulties, but it was appreciated and supported by the post workers because the separation was the intrinsic requirement of their own development and was indispensable. The director of the post office of Yongchun county which had been separated for over I year $aid, in the past, post was supported by telecommunication; after the separation, post should make effort to survive and develop and could gained great achievement and grow through its endeavor.

(2) Establishment of the State Post Bureau In March 1998, the 1st conference of 9th NPC passed the organization reform plan of the State Council. It changed the original system that government organizations directly manage the production and operation of enterprises. It carried out the system of separation of administration and enterprises. It would establish the Ministry of information industry on the basis of MPT and the Ministry of Electronics industry. Under the administration of Mll, the State Post Bureau would be established. The "3-Determination plan" of the State Council about the State Post Bureau regulated that the responsibilities of post industry management and post enterprise management of the former MPT would be transferred to the State Post Bureau, which is an administration organization as well as a public enterprise. It should enforce the management of post industry to maintain national benefit and customer's benefit, and be responsible for the unified construction and operation of national post network, undertake the responsibility of popular service. The State Post Bureau (SPB) would set up post office in province, autonomous region and city, carrying out the management system of dual-leadership of the National Post Administration Bureau and local government, mainly by the State Post Bureau. Local post offices are public enterprises, which are responsible for local post administration, authorized by SPB.

On Sept.9, 1998, the State Post Bureau held a conference. In the conference the minister of Mll Wu Jichuan pointed out that the establishment of the State Post Bureau was the important composition of national organization reform and was beneficial to the development of post industry. The separation of post and telecommunication was not simply separation. It should be carried out according to the regulations of establishing modem enterprises. The director of the State Post Bureau made a speech that the leader group of the State Post Bureau was appointed in the key period of the development of China Post. There are difficulties and hopes, challenges and opportunities. We would firmly carry out the "3 Regulations" of the State Council, construct the leader group into an uncorrupted, high-efficient, united collectivity. We would firmly determine two objectives: One was to improve post economic benefit, to change from deficit to profit in several years. The other was to place service on an important position, to undertake all services needed by the public, carry out the duty of popular service, improve social benefit and firmly see through China Post industry.

The establishment of the State Post Bureau marked the end of the "unified post and telecommunication" system which had last for nearly 50 years. From a profession of the former MPT, China Post became an independently-operated national organization and economic entity, with administration function and enterprise operation function. It indicated that the position and function of post in economic development and social progress became prominent. Meanwhile, it also provided historical opportunity and displayed brilliant future for post to go into market, mobilize operation, make progress in the competition and realize modernization. Now With highly historic responsibilities post department of each level and 600,000 post workers were keeping up their spirits, working hard and corporately. They maintained the reform as the mainlines, science and technology as the support, improving worker's level as the measures to undertake network construction and business development and devote to the realization of the cross-century objectives of post.