Build Management Mode of Vocational Institute Group Based on the Shared Governance of Stakeholders

YAO Ying

Abstract： At present， during the development of Chinese vocational institute group， there are many problems， such as loose organization，lack of sanction， less effective intensive operation. All these problems have effect on the intensive operation of the group. The paper refers to the theory of corporate governance and then builds vocational institute management mode of stakeholders shared governance on the basis of analyzing stakeholders benefit appeal and conflicts. Building the mode has certain theoretical and practical significance to overcome the system obstacle.

Keywords： stakeholder，shared governance， vocational institute group， associated mode

Since the 1990s， the theory of “shareholder Paramount” is a strong challenge by stakeholder theory. For companies， stakeholders and shareholders mutually govern breakthrough the limitation of traditional company which emphasizes maximize shareholder interests， and build the mechanism and system of diversified enterprise stakeholders co-governance. From the aspect of the assets structure form， vocational education group in China could not build the management system and operational mechanism in accordance with the equity. But as a stakeholder and a gathering body， it can draw lessons from the principles and realization ways of the shared governance of companies and related benefit body to build reasonable leadership and organization system and its corresponding operation mode.

1. Analysis on shared governance of stockholders of vocational institution group in China

Vocational education group in our country is run according to the intensive operation mode of organization， its purpose is to make the development of vocational institution group in China from extensive to intensive， from the number of dilated to product quality. Vocational institution group， as a kind of typical of todays domestic and foreign vocational institution organization will be different from other organizations in running， and there will be a different group of stakeholders from of the enterprises.

（1） Colleges in the group. Colleges of vocational institution group including vocational colleges and secondary vocational schools. Colleges in the group have clear interest motivation to participate in group activities. Colleges in the group under the profit-driven cooperation， give full play to the function of group organization， to make the group dynamic.

（2） Enterprise. The functions of vocational institution group are the cooperation platform between colleges， and businesses close relation， and the deep cooperation between enterprise and group. Enterprises to participate in group activities also has the profit motive， such as enterprise recruitment， staff training， the use of education resources to carry out the enterprises technical services and consulting， etc.

（3） Students. Students in vocational education market， is the consumer， is also the most direct stakeholder of vocational institution group. Group organization through their intensive operation centralized education resources to provide good education service to the student. At the same time， in the process of university-enterprise cooperation it enables students to carry on the productive practice and field work， and meet the need of the enterprise in aspects of basic theory and professional skills， and make the students quickly obtain employment after graduation， and also achieve the sustainable development.

（4） The government. Vocational institution group in the forming process of most of the lack of capital， the government education departments at all levels will be group organization and operation of the participants， and stakeholders. When the group is to form， the government plays an irreplaceable role and gain interests for the regional economic development through the group.

（5）. Industry association. Many vocational colleges in our country have industry background. When industry runs school， industry often is the competent administrative department of the college. Industry has various relationships with college in assets， the appointment or dismissal of cadres， and interests distribution.

（6） Creditors. Creditors rights and the personnel financial institutions of vocational educational group. In the process of vocational education development in recent years， many vocational colleges ask bank loans for construction， behind the rows of beautiful buildings is hundreds of millions of dollars or more financial liabilities， therefore， financial institutions as creditors of vocational colleges surely become group of stakeholders.

（7） The community institutions. Community institutions including vocational education group in the social public institutions. Good community environment can create the same atmosphere for the survival and development of vocational institution group， such as transport， health care， roads， public health， public security， etc.， so that these institutions become the interests of the correlation of the group organization.

（8） Teachers and other staff. Vocational institution groups development relies on the efforts of staff in college， to contribute in different teaching and management jobs. At the same time， the realization of the interests of the staffs personal career also depends on the speed of the development of vocational institution.

To sum up， the vocational education group of stakeholders should have the following in common. First of all， the vocational education group of stakeholders associated with group activities； second， the contract is the basis of the interest relationship； finally， the mutual obligations and risks. To this end， the concept of vocational education group of stakeholders statement should be： the interests of stakeholders is related to the vocational education group has organized groups， it is based on the contract， for the purpose of win-win， expect from a group in the operation of the interests， and at the same time to undertake the corresponding obligations and responsibilities.

2. Stakeholders interest requirements and conflict of Chinas vocational education group

1. Stakeholders interest requirements

Vocational institution group stakeholders in inside and outside the organizations position is different， the focus of interest and assume the responsibility of each are not identical. See table 1

1.Stakeholders interest conflict

（1） Interest conflict between vocational colleges in the group

Vocational colleges and universities in vocational institution group participate in activities through the contract and articles of association to enjoy rights and assume obligations. Various vocational colleges through the inter-school cooperation to make full use of the limited education resources， generating intensive effect. Within the group， however， vocational colleges as an independent enterprise legal person， in the operation of the organization have independent and the interests of the personalized requirements， thereby inevitable conflict of interest.

Table 1： Stakeholders interest requirements of vocational education group

Stakeholders Interest requirements

Colleges in the group Reasonable resource configuration， the integration of the coordinated development of higher vocational， intensive development

Staff Career development， treatment increase and value realization

Enterprise Enterprise development， staff training， technical services， human resources， business diversification

Industry association Enterprise development， staff training， technical services， human resources， business diversification

The government Economic growth， social stability， stable employment taxes

Creditors Investment benefit， repayment of the principal

The community institutions Community harmony， community activities， community stability， environmental protection

Other colleges Make full use of resources， mutual imitation and common development

Students Quality improvement， employment， skills， to improve the quality of sustainable development

（2） Conflict of interest between groups in vocational colleges and enterprises

University-enterprise cooperation is the foundation of the survival and development of vocational education group. In the group， colleges and enterprises are different interest subjects. There is a big difference between its objectives， organization and the way. Through the game to obtain equilibrium between colleges， its game process embodies the interest difference and conflict.

（3） Conflict of interest between colleges and students in the group

Vocational institution as an important form of the service trade in the WTO organization has fundamentally changed the vocational colleges and students， the relationship between management and the management education. As consumers of vocational institution， students have the right to request to enjoy high quality education service. At the same time， students should plan according to the school to complete the teaching process， abide by the system and the management.

（4） Conflict of interest between colleges， enterprises and government in the group

The construction and development of Chinas vocational institution group cannot do without government support. However， Chinas political system reform lags behind the economic system reform， the functions of the governments not perfect and administrative inaction and asymmetric information may be found in varying degrees set barrier for rapid development of vocational education group， thus forming a conflict of interest.

3. Approach to Achieve Vocational Institute Group Stakeholders Shared Governance

Currently， the plight of vocational institute group development is the institutional barrier. Refer to the shared governance of stakeholders of companies and enterprises， establishing vocational institute group leadership system and organization system will have great significance in achieving the rapid and intensive development of the vocational education in China.

（1） The Management Structure of Vocational Institute Group

In the management system of vocational institute group， the benefit-related stakeholders can be subdivided into five levels of governance. The Director General Assembly is composed of all stakeholders and poses the highest power. The General Council is composed of stakeholders that are related to the agreement and usually deals with executive process. The Secretariat is the working body of vocational institute group and has two parts under it， which are the “faculty committee” and the “Teaching Management Committee”. See Figure 1.

（2） Responsibilities of Different Institutions

a.Director General Assembly

The Director General Assembly is composed of all relevant stakeholders. Given the nature and the responsibilities of enterprises group， the Director General Assembly is the most powerful institution. Its responsibilities are mainly about constituting regulations， cooperation strategies， development planning， resolving resource allocation and members change. The meeting of Director General Assembly shall be convened at least twice a year.

b.The General Council.

The General Council is the most powerful institution. The responsibilities include that implementing the resolution of the Director General Assembly， making annual work plans， determining internal institutions and personnel arrangement， proposing resource allocation plan and presenting groups internal resource integration and integrated education program plan.

c.The Secretariat.

The secretariat is the executive institution of vocational institute group. It is subdivided into several sectors， such as the “faculty committee” and the “Teaching Management Committee”. The Secretariat usually help to implement the resolution of the General Council， coordinate the behavior of different members， investigate the work process and evaluate the intensive effect.

d.School Affairs Committee.

The School Affairs Committee has two branches-professional jury and teaching quality committee. The School Affairs Committee needs to coordinate different members about their constructing planning of building layout and scale in the region of economic and industrial development， formulate the education regulation and make sure it can be implemented.

At the same time， in accordance with the requirement of stakeholders shared governance， several principles shall be followed during the construction of vocational institute group：

（1）Intensive Development Principle.

In order to avoid duplicate resource construction and extensive development， connections between schools and enterprises should be established so as to achieve the optimal resource allocation.

（2） Active Participation to Achieve Mutual Benefit.

Based on the principle of stakeholders shared governance， the governance structure must be conducive to stimulate active participation. Mutual Benefit is the condition to achieve the sustainable development of vocational institute group.

（3）Different Governance Methods Based on the Transaction Frequency

The stakeholders can be divided into ones with agreement （universities， enterprises， students） and ones without agreement （industry associations， creditors）. As they have different participation motivation， which determines that they will reap benefit via different ways.

（4）United and Centralized Principle

In accordance with the requirement of stakeholders shared governance， the management mode of vocational institute group should be united instead of loose. Meanwhile， the decision of command institution should be implemented effectively.

References

1.Jian Sun & Minglun Wang. Strategy of Vocational Institute Development from stakeholders perspective. 2010

2.Zhongmei Liao. Research on Stakeholders of Vocational Institute Group. 1978