The Research On Group L'S Mother-Subsidiary Company Management And Control

The only way to make an enterprise more powerful and profitable is to establish a parent-subsidiary company management mechanism. How to avoid "the typical problems of big enterprises", establish an effective parent-subsidiary company control system, and ensure parent and subsidiary companies the same and maximal interests have not only become the focus of attention for modern Chinese enterprises but an important project for the domain of company management to deal with. Systematically probing into the control system of parent-subsidiary company and studying its means of management to ensure its business efficiency is very important for the healthy growth of Chinese enterprises.The parent-subsidiary company management is systematic management, the main target of which is to realize the maximum profits of the whole company. In the process of management, the parent company should not only set the overall structure for the subsidiary company through company management system and organizational system but also control the subsidiary company to realize its goals by the overall use of strategies, performance goals, finance, human resources, corporate culture, and internal report. The benchmark of the management and control model of a parent-subsidiary company is the power division between the parent company and the subsidiary company. The model falls into three types: power-concentrated system, power-separated system and combination of the previous two. For a parent-subsidiary company the choice of the management and control model should be contingent upon the parent company's stages of development, strategic objectives, resources and energy to realize the unanimous and maximum profits of the whole company.Under the guidance of "integrating resources, giving play to advantages, and decreasing costs" of higher authorities Group L is a real estate sub-group established by merging an affiliated real estate company of a large enterprise group. The formation and development of the group is in fact administratively-guided joint reorganization, and the group is a state-owned enterprise in nature. Concerning the model and means of parent-subsidiary company management and control in Group L there exist problems as follows: the governance structure is imperfect; the relationship between parent and subsidiaries and the power division between the Board and the general manager is not clear; the design of the management and control model of the parent-subsidiary company needs to be perfected; how to control the subsidiaries, reasonably divide power between parent company and subsidiaries, and clearify the function of the parent company all need to be systematically determined; since Group L is the result of administratively-guided joint reorganization, not a naturally growing group, there is no unanimously accepted corporation culture; the management and control means such as financial management and control, performance examination and internal report are still in coarse construction; and parent company is short of control power.To optimize the management and control system in Group L, firstly equity ratio of the subsidiaries should be designed according to the target of Group Us strategic development and management structure of the parent-subsidiary company should be perfected. Secondly, it is necessary to determine the management authority of different levels, clarify their rights and obligations, and ensure the freedom of the subsidiaries under a certain framework. Thirdly, the function of the parent company needs to be emphasized and its synergistic function to be reinforced. Fourly, different management and control means should be employed according to the company's different stages of development. Lastly, just, fair and open performance examination and promotion systems should be established to ensure the realization of the company's objectives.