ABSTRACT
This chapter explores the human dimension constitutes a vitally important, yet largely hidden agenda, the nature and complexity. At the core of the process of industrial reform is an effort to create more efficient industrial administrations in state-owned factories and mines. The new stress on profit and the incentives inherent in the somewhat misleadingly labelled notion of "enterprise autonomy" are bound to have some positive effect. The link in the causal chain for creating efficient industrial administrations in China is the extent to which conditions can be created among factory staffs that encourage hard work, creativity, and rational decision-making. The reform effort as a whole hinges on the efficiency of industrial administration--continuing high levels of inefficiency and waste will act as a brake on success, an inertial force that will lead to sluggish economic response, perhaps eventual stagnation and reversal of reform.
