The Model of Transforming State-Owned Enterprise Organizations to Public Organization

Abstract

The objectives of this research were 1) to study different types of organizations according to the roles and missions of the government sector, 2) to study the problems and obstacles of transforming state-owned enterprise organizations to public organizations, and 3) to study the positive and negative impacts of the said transformation. The method of this study was divided into three steps, namely: 1) Study of the model of organization, 2) Training and education of transforming state-owned enterprises to public organizations, and 3) Result synthesis. This study used a qualitative research through workshop and in-depth interview. The results of this research indicated that 1) The administration of a public organization was characterized by faster and more agile operation than other  government agencies because it relied on a management style similar to the way managed in a private sector under the supervision of directors who were independent to formulate rules and regulations, manage operational and organizational structure, and responsible for budget management inspected by the government. Organizational patterns as government agencies could be divided into 4 types: government agencies, state-owned enterprises, public organizations, and new government agencies, 2) The transforming state-owned enterprises to public organizations was an important issue and a risk factor for organizational change, including acceptance of personnel, was a key component. The most important factors in organizational change included wage, employment contract, welfare, and benefits including job security,                 3) Transforming state-owned enterprises to public organizations provided positive impacts as a public organization held absolute power to make complete decisions in the organization, leading to more agility and flexibility in operations, more ability to respond to state missions in a faster manner, compared with state-owned enterprises. A public organization had also high autonomy to formulate rules and regulations, operational and organizational structures, and budget management. However, it had negative impacts related to managing existing manpower, entering the power of the new structure and departments, causing overlapping between existing and new power.