D.卡尔顿 罗西
D. Carlton Rossi

Property Seizure

"This is a conspiracy"

Classification: Land Acquisition Disputes

2018-10-27 10:19

On July 25, 2018, the 77,000 square-meter, old-age apartments in Dawu Kangyang Town were confiscated by the Xushui District Land Bureau. The reason is that "the construction was not approved first, and the land was illegally occupied." We think this is a bureau of officials and a conspiracy.

According to the national policy, local villagers can apply for the use of collective construction land. The Dawu Group Pension Center is engaged in public welfare projects, and in July 2017, it was named the first batch of characteristic Kangyang towns in Baoding. However, a short time later, on August 5, 2017, Xushui Land Bureau investigated and dealt with the Dawu Pension Center. The basis for filing the case was a rectification letter from the Provincial Land Department on July 31. This letter did not explain which ones. The land issue was approved by the leaders of the municipal government and the district government in just four days. ( attached to the letter)

For such an efficient investigation, we have the following questions:

1. What is the basis for the Provincial Land Department to issue this “revision letter” (Annex 1)? The rectification letter stated: “The Dawu Group has a large number of illegal land occupations, and the masses have strongly reflected” and asked the municipal government to investigate and deal with them. In other words, the district government and the district land bureau did not think that we were illegal. It was the Hebei Provincial Land Department that claimed we were illegal and they were handling the case for the leadership (Annex 2, 3)! Therefore, we suspect that the Xushui Land Bureau, especially the director Wang Yuya, has misunderstood and framed us because she has the motive for committing crimes. (other case )

2.  At the end of last year, on December 18, Director Zhang of the Provincial Land Department Law Enforcement Bureau, accompanied by Li Zhiyong District Mayor and Deputy Mayor Ma Zhixin, brought 18 people to the Dawu Group to investigate the case. Director Zhang clearly stated at the scene:

1   Handling some public welfare projects without penalty, such as schools and hospitals, can take the form of transfer;

2    Local villagers can apply for the use of collective construction land, without having to go to the province for approval, the city will approve it, and there is no penalty; 

3  To classify and deal with, this problem is the responsibility of Xushui District. Don't turn it over again. The more complicated it is, the more complicated it is. Break It can be seen from this that Director Zhang has already negated the provincial government rectification letter and the punishment of the Xushui Land Bureau. 

3.  We want to coordinate the handling according to the direction of Mr. Li. We should not pay more than 4 million yuan for the balance of compensation. Because Langwuzhuang has 47 acres of construction land indicators, Ma Zhixin’s deputy head of the district also promised that this indicator is available for use. However, in order to solve the problem, we still paid a 45-acre balance. However, after the payment, the Land Bureau issued a decision on the punishment for confiscation. Why was there confiscation and more punishment in terms of payment?

4.  After the administrative punishment, we conducted a reconsideration. During the reconsideration, we have already conducted consultations and resolved the problem in Xushui District. In the process of negotiation, the district government can’t wait to reach the ground floor to “maintain the original punishment decision of the land bureau”, forcing us not to file a lawsuit.

5.  Director Li promised that the property would not be assessed and returned the ground assets. However, the Land Bureau also invited a lawyer to say that it was necessary to evaluate the illegality and quietly evaluate 70 million which made the government unable to act. The Dawu Group could not coordinate.

6.  Why did the Land Bureau write to the Urban Construction Bureau, the Power Supply Company, the Market Supervision Administration, the Development and Reform Bureau, and the Planning Bureau to jointly enforce the law, and to kill the Dawu Kangyang Project! Why does the Land Bureau want to mobilize the public security law and threaten the Dayu Group executives? What is the basis? According to this paper official letter, this paper official letter to the Provincial Law Enforcement Bureau Director Zhang has already negated, why should we carry out threats and insist on investigation?

Looking at the big picture, this is a conspiracy! It makes the government and enterprises confront each other, making the situation so unbearable! We asked the relevant departments to respond to the real name report of the Dawu Group and file a case with the land director Wang Yuya as soon as possible!


1, "Hebei Provincial Department of Taiwujituan about illegal seizures of land for rectification of the letter"

2, illegal clues registration table

3, the filing Cheng Pibiao




                     Dawu City, Kangyang Township

Mental property of employees of Dawu Group


Source: Family Business Magazine

(WeChat public ID: jiazuqiyezazhi)

In the final analysis, the competition faced by enterprises is the competition of talents. How can family enterprises improve the psychological ownership of employees to enterprises under the premise of ensuring that family ownership is not weakened, so that employees can regard development enterprises as their own business and work with the boss and so that employees serve the enterprise wholeheartedly? This is a question put forward by practice.

Psychological ownership was proposed by Jon L. Pierce, professor of organization and management at the University of Minnesota Duluth. He found that many scholars' research conclusions have a certain degree of consensus that the “employee shareholding plan” does not necessarily lead to employees thinking and acting like “owners”, thus promoting organizational performance. Therefore, he tried to explain this phenomenon and in 1991 proposed the concept of “psychological ownership”.

The election meeting of the 7th Board of Directors of Hebei Dawu Group was held at the Dawu Gymnasium. The election meeting which was held after the Spring Festival of 2017 is also the last general election meeting. The chairman of the board of directors is sitting on the board of supervisors. The board of supervisors is chaired by the family committee. It member composition consists of the Sun Dawu couple, the founder of the Dawu Group, and their four grandchildren who sit at the front row of the podium. Dawu Group which was founded in 1984 is a typical family business.

The conference adopted electronic counting, and after careful voting by the cadres  the counting team carefully counted the votes, and the supervisory team strictly inspected the votes. The conference elected the seventh board of the Dawu Group.

The data shows that in the past ten years, Dawu Group's annual employee turnover rate is less than 3%, and more than 100 people from ordinary employees have entered the middle-level management. The annual sales have achieved a rapid growth of 25%~30%. Practice gives an excellent answer. In the past ten years, Dawu Group has maintained a stable workforce, a very low turnover rate, and successfully trained a group of talented employees within the company. In Sun Dawu's view, the staff of the big afternoon are all lovely. They deeply love the Dawu Group. This is one of the important reasons for the continuous high-speed development of the Dawu Group and the source of confidence for the future development of the Dawu Group.

During the period from 2016 to 2017, we conducted a questionnaire survey on employees of Dawu Group on psychological ownership and other issues, and collected 361 valid questionnaires. The survey found that the employment time of Dawu Group employees was positively correlated with psychological ownership. The correlation coefficient was 0.172, which was significant at a 0.01 level. This indicates that the longer the employee's service then the higher the psychological ownership. The higher the position, the higher the psychological ownership.

The magic of psychological ownership: 

Dawu Group is a family business. Property rights belong to Sun Dawu. Enterprises do not implement shareholding system. The shares are completely closed. The shares are neither open to management and employees, nor are shared with family members. In order to ensure the overall inheritance of the enterprise and avoid the dispute of property rights in the next generation, even in the inheritance, Sun Dawu does not quantify the next generation of children. The family constitution of the Dawu Group clearly stipulates: “The overall inheritance of property rights will never be quantified or divided.” “The Board of Supervisors represents the family group and safeguards the legitimate rights and interests of family members.”

It is in this context that the equity is completely concentrated in the personal and non-shareholding system of the founder Sun Dawu. Our research found that the Dawu Group occupies a very important position in the hearts of employees. In the hearts of employees, the Dawu Group is also theirs. They will do their best to maintain the group and work hard. The fact that the Dawu Group has far below the turnover rate of other companies and the fact that hundreds of management cadres have been trained among ordinary employees has proved this.

An attractive plan like employee stock ownership does not necessarily guarantee that employees and the company will go forward together, let alone not share with employees. Why can the Dawu Group not simultaneously weaken the family ownership and let the employees follow the company? What is this? From the long-term study of the officials of the Dawu Group, scholars, and the words of the great afternoon staff, we can understand the mechanism behind it.

In February 2013, after long-term research and on-site observation of the election of the fifth board of directors of the Dawu Group's employee representatives, the former vice chairman of the All-China Federation of Industry and Commerce, Bao Yuzhen, expressed his feelings to the reporter: Several director candidates this morning gave very impressive campaign speeches. In particular, when a  middle-level cadre from the field said that "Great afternoon is my home" it was even more touching. To be honest, not many people in private enterprises let alone state-owned enterprises regard the enterprise as their own home.

Dawu staff member, Qi Lianlong, introduced his experience in the group's internal publications: "I have been working in the group since I was 22 years old. I have been here to build a family, start a business, buy a house and my children go to school in Dawu Middle School. My wife also goes to work here, all my friends are here and my life is here. Due to these reasons, we are the foreigners who are rooted here, and the group is the community of interests and destiny. We will follow the group well. If the group is gone, others can turn around and go home. I don’t have a room when I go home. I don’t know where to go. So we foreigners most hope that the group can develop well and tolerate people’s development."

At an in-house learning meeting hosted by the current Chairman Sun Meng, an old member of the poultry company said: "I have been working in the company for more than 20 years. My job is to make chicken feed, and I am happy every day. Rural women like me with low culture did not expect to find a company where they can not only earn wages, but also earn dignity and life. Since raising chickens 30 years ago, the breeding company has always had a breeding dream, and I will take my job. Work is a career that I have struggled in all my life."

The concept of psychological ownership was proposed by Jon L. Pierce (1991) based on the theory of "possession psychology and is defined as a state of mind in which a person feels a certain goal. Things (which may be material or non-material) or part of them are their own.

Pierce believes that legal ownership does not directly affect the attitudes and behaviors of employees who own the ownership. Instead, it creates psychological ownership through formal ownership, and then influences employees' attitudes, motivations, and behaviors through psychological ownership. Formal ownership must make employees have psychological ownership so that they can influence employees' attitudes, motivations and behaviors.

This is why some companies even give employees shares, but the attitudes, behaviors and performance of employees have not improved significantly. Because giving employees ownership is only a formal possession, there is no real sense of ownership in the employees' minds, that is, psychological ownership; so, it is impossible to encourage employees to improve their attitudes and behaviors from the bottom of their hearts, and performance cannot be effectively improved.

Why is the Dawu Group not giving shares to employees, but the employees are still working actively and competing to contribute to the group? It is because the group can directly act on psychological ownership through management measures, allowing employees to generate higher psychological ownership, prompting employees to think that the group also has a part of me, and also my efforts in it, resulting in a master Consciousness, and then act positively to strive for performance.

Three-wheel drive psychological ownership

Pierce et al. (2001) argue that psychological ownership is generated through three paths: controlling the target, understanding the target and individual input. The root cause behind the higher employee psychological ownership of the Dawu Group is the Dawu Group's institutional system and management measures (especially the election mechanism of the Dawu Group and the comprehensive guarantee system) which greatly stimulated the enthusiasm of the employees. These systems and measures act on employees from three aspects and generate higher psychological ownership. 

1. Controlling the target

The  control of the target is a major feature of the phenomenon of psychological ownership. Controlling the target results in a psychological ownership of the target. Just like a part of a person's body, such as hands and feet, hands and feet as objects can be controlled by us, so they are considered part of the self. The higher the degree of control over the target, the more the target is considered to be part of the self. On the contrary, if the target cannot be controlled, or the target is controlled by others, the target will not be considered part of the self. 

The board of directors and management of Dawu Group is not appointed by the shareholders' meeting, nor is it nominated by the chairman of the board of directors. Instead, it is elected by the employee on behalf of one person and one vote. It is worth noting that the senior leaders of the Dawu Group, including the owners of the company who are Sun Dawu and their family members have only one ordinary vote without any election privileges.

The bottom-up elections give employees the right to be the masters of the house and the opportunity to express their inner voice. Employees can truly feel that the development of the company is closely linked to their votes.

Each ballot is in fact the right that the organization provides to employees to “control” the organization of personnel and other factors. Through the electoral system, employees feel that they can actually influence and “control” the personnel or other aspects of the group. The control is very strong. After the election, the board of directors and other leading bodies will be elected according to the number of votes. Therefore, employees feel that the company is also “I” and will form a psychological ownership and responsibility for the group.

2. It is precisely because of the connection between the individual and the target that the psychological ownership feeling is generated. Just like a gardener, through a certain time of contact with the garden, it will be the feeling that this garden belongs to him.

"Who is the boss" is the unique management philosophy of the Dawu Group. The way to become a boss is through the election of employees. In the Dawu Group, employees who have been elected for more than one year have the right to vote. The employees who have accumulated more than 10 years of service have the right to formally vote. At present, the election of the Dawu Group is divided into three levels: primary election, re-election, and formal election. In the primary election, all members participate in the voting; in the re-election, employees with more than the squad leader and employees who have worked for more than one year vote; in formal elections the cadres with more than squad leader and employees with more than 10 years of service vote. This kind of institutional arrangement aims to release the power to govern the enterprise to the employees layer by layer. All members have primary qualifications in the primary election, but only those who have a certain understanding of the enterprise, and have long been working in the enterprise and have a sense of belonging to the enterprise are talents which are officially eligible to vote.

In this system, the setting of the people who have the right to vote and the right to vote is different. The system design emphasizes that “employee qualification is higher than the qualification of the election”. Those who have the right to be elected have a broader requirement and a larger range of people to use. Even employees with shorter incumbents can have the right to be elected as cadres if they have outstanding ability. This system originally stipulated that employees with more than three years of service have the right to formally vote and be elected. Now, the system has evolved to where a talented person with one year of service can be elected. The people who enjoy the right to vote have stricter requirements and a smaller scope. The requirement is that employees who have entered the company for more than ten years and cadres with more than one squad leader have the right to vote because they understand the culture and overall situation of the company and pay attention to the development of the group. Where there is more emotional and identity then the voting will be more fair and just.

The efficiency of the industry will affect the income and welfare of the employees, and the employees will choose to vote for the capable people.

Sun Dawu said: "Because employees who have been working for more than 10 years are already in this social enterprise, they have already bought a house married and have children. Children have to go to school here. The elderly are going to support them here. They will continue to care for themselves here. They have formed a community of interests and destiny; so, of course, the people who want to be elected directors are reliable."

This set of electoral rights is designed to ensure that those who are capable will not be stuck at the grassroots level for years, prevents bribery, maintains the operation of democratic elections, and ensures that the elected management understands the enterprise which also includes management. Most of the employees within the company have important reasons for high psychological ownership because the Dawu Group is an organization that has long-term life, familiarity, intimacy and certain “control”.

3.  The energy, time, and effort invested by the individual in the individual's target causes the self and the target to be integrated thus creating a psychological ownership of the target. For entrepreneurs, they have invested a lot of time, energy, values, etc. in their own companies, and they have also gained economic or other returns, so they will feel psychological ownership of the company. Dawu Group not only empowers employees through institutional design, but also uses strategic planning to improve employees' recognition and ownership of the company.

The Dawu Group which was founded in 1984 in a remote and desolate countryside was free, independent and wild in the tide of reform and opening up, and started and developed by the hard work and sweat of local farmers.

Most of the Dawu Group's initial business focused on farming and animal husbandry. A considerable proportion of employees used to be farmers. Agricultural production requires employees to invest a lot of time and energy to produce. It may involve decades or a lifetime. Over time they naturally combine their own values with the results of breeding, the farm and animal husbandry so products are good and they are proud. It feels that their own investment has produced good results. These long-term employees who have a long working life are naturally responsible for their duties. Work and company generate a sense of identity.

For the ever-increasing group of employees, in order to allow employees to buy and settle on the ground based on local employment, building Dawucheng has become the strategic goal of Dawu Group. The Dawu Group proposed to build a community that has  “circular development in an endless life consumption chain. This was also the original intention of Dawu Group to build roads, build schools, build gymnasiums, build hospitals and build parks in the local area. From the transformation of enterprises, it has completed the industrial upgrading and transformation from the primary industry and the secondary industry to the tertiary industry.

The Dawu Group has invited nearby residents to participate in the community relations symposium which has become a tradition. Every year, the villagers are invited to see the changes and development of the group.

For employees, Dawucheng provides employees with living space and community, and has hospital, school and other security (welfare) agencies. Most of the employees' work and life are carried out in the Dawu Park. The employees of Dawu have contact with enterprises and colleagues. Far more than other companies, the level of familiarity with the group is also a three-pointer.

The Dawu Group's cadre backbone training class has a staff representative give a speech each session. Everyone will often express their sense of corporate identity, belonging, happiness and respect and honor on this enterprise platform. This sense of identity and belonging not only stems from the weakening of the power of leaders at all levels through the system, but also strengthens the participation and voice of employees in public affairs, and gives full play to the enthusiasm of all employees who are the bosses. It is also because the construction of “Dawucheng” makes it no longer a station for migrant workers, but a living home for employees. In Sun Dawu’s view it promotes  social security and harmony and industry. The business team is stable and the turnover rate is very low. Correspondingly, it will increase the productivity of Dawucheng.

In January 2018, the Dawu Group began to implement free medical care for all employees.

From an organizational point of view, Dawu Group's protection for employees is sufficient, which deepens the gratitude of employees, promotes the integration of employees themselves and the group, and allows them willingly to do well in the enterprise. There are three types of guarantees for the employees of the Great Lunch. The three types of protection systems focus on different groups, and the employees choose one. First, with regard to social security, the group handles social security for some employees according to the national social security standards, such as school teachers; second, the retirement system is for older employees who are about to retire, and can enjoy pensions according to their working years. In principle, the longer the working years, the more the pension is. If a worker works in the Dawu Group for 30 years, then after he retirees, the monthly pension can be more than 2,250 yuan. The third is the internal insurance system, which means that the company and employees pay in proportion to each other. The group has individual employee-specific pension fund accounts. The employees can enjoy the full interest of the account, and the profits can be calculated through profit. Finally, the individual can withdraw far higher than this. The amount of pension in gold, and the total pension in the afternoon is higher than the social security.

Individual employees invest time and energy. They agree with the organization of the business and the organization itself. The organization also favors the employees, and eliminates the worries of the employees with a sound security system, providing protection beyond the level of the county where the employees are located. This is also the employee's ownership of the enterprise, psychological ownership. 

(作者陈阳军为北京理工大学管理与经济学院工商管理硕士研究生。裴蓉是北京理工大学管理与经济学院教授, 北京理工大学中外家族企业联合研究中心主任。本文详见于【《家族企业》杂志2018年9月刊】 未经本刊授权,不得转载;经本刊授权转载的,请注明来源)





Sheng Hong: The exit of private enterprises denies the foundation of 40 years of reform and opening up

Sheng Hong



The most serious problem at present is that the property rights of private enterprises are not effectively protected. People with mastery of public power use means other than the market, such as political means or administrative means, to threaten, intimidate and retreat private enterprises, and even seize the property rights of private enterprises.