What is the factory director (manager) responsibility system?

According to the Enterprise Law adopted by the First Session of the National People's Congress in April 1988, the factory director (manager) is responsible for state-owned enterprises.

1, factory director (manager) responsibility system

(1) The factory director is selected in the following ways: (1) The government authorizes the department to appoint or recruit; (2) Recruitment or election of enterprise workers' congress. Its mode of production should embody the principles of competition, fairness, merit and democracy. In small and medium-sized enterprises, the methods of public bidding and factory director selection are widely practiced.

(2) The functions and powers of the factory director are mainly management decision-making power, command power and human rights use, and also include the right to reward and punish employees, the right to refuse apportionment and the right to request reconsideration.

(3) The enterprise shall set up a management committee as an organization to assist the director in making decisions.