Shenyang Chemical is determined to use an incentive mechanism in order to build a more competitive management team, consequently, middle managers could find themselves competing for their position. The first subsidiary to act as a pilot for the mechanism was the Shenyang Paraffin Chemical Industry Co, by firing all 51 middle managers at the beginning of January. These people then had to compete with many other young and quite promising managers for their former position. Shenyang Paraffin selected the most qualified managers among the many competitors, which included some post-1980s personnel who had evolved with the company.
To make the process go smoother, the company informed its staff members in advance about the new plan and all the pertinent details. There were 46 competitors, all below the age of 40 years and with a bachelor’s degree or higher. Three of them outperformed the others and were hired on Jan 16. Meanwhile, eight people lost their former positions. The competition has improved the company’s management and has provided more opportunities for skilled personnel. Anyway, middle managers can no longer rest on their laurels, thinking that their position is secure, this is why Shenyang Paraffin’s new management team, has been given a new look.