CHAPTER VIII: ORGANIZATIONAL STRUCTURE

Organizations are formed by people in social groups in order to achieve a joint goal. From a macro-economic perspective, there are three main types of organizations in modern society: national organizations, economic organizations and social organizations. Organizational structure has a decisive impact on people’s interests, rights and socioeconomic status and opportunities for access to the configuration of resources. The healthy operation of modern society and its harmonious development requires a corresponding rational and effective organizational structure. Since the reform and opening up, China’s organizational structure has undergone profound changes. The social action and the differentiation of its operating mechanism have brought a demarcation of the organizational structure: the country-led organization system gradually disintegrated; a variety of new economic and social organizations emerged; and the relationship between the three main types of organizations began to transform into a mutually supportive modern relationship model. However, this transformation is far from complete. With the deepening of the reform and opening up, along with economic and social development, these organizations will enter a new stage of development. Whether their relationship will transform into a healthy and reasonable one will depend largely on whether the relevant institutional innovation will cultivate a new structural system that may adapt to modernization.