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Direct management

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Direct management means that the state Mandatory plan Mainly in the form of direct control and supervision over the production and operation activities of enterprises. Its characteristics are that the management power is highly centralized, and the enterprise becomes an appendage of the state administrative organ due to the lack of due autonomy. In terms of plan management, it mainly focuses on mandatory indicators, administrative intervention, physical management, and annual plans. In terms of financial management, the state takes unified responsibility for profits and losses, revenue and expenditure for state-owned enterprises. This kind of management mode played a positive role in the early days of the founding of the People's Republic of China or in a specific period. [1]
Chinese name
Direct management
Definition
The country Mandatory plan Mainly in the form of direct control and supervision over the production and operation activities of enterprises
Field
Finance
Indirect management is a management mode in which the state mainly controls, regulates and supervises the production and operation activities of enterprises by formulating guiding plans, using economic levers, signing order contracts and other forms. Enterprises are relatively independent economic entities. The state has delegated some decision-making power that should have been made by enterprises to enterprises, and let enterprises do all economic activities that can be carried out directly between enterprises, so as to expand their autonomy. The economic relationship between the state and enterprises is mainly based on the commodity economy principle of exchange at equal value A contractual relationship formed by signing an order contract and other forms. However, enterprises should still obey the planning guidance and management of the state.