The Study On Cultural Control Of Parent-Subsidiary Corporations

As a kind of informal control, cultural control plays an important role in the management of parent-subsidiary corporations of Enterprises Group. In the 1980s of the 20th century, China had established lots of Enterprises Groups through many methods, such as administrative transfers, combination of large enterprises, government departments' transformation and so on. In the 1990s, our country had emerged some formal Enterprises groups through the transformation of property rights and self-development. The research on management of parent-subsidiary corporations of Enterprises Group began from 1990s in China, and it is relatively late for foreign academic research. The research on management and control of parent-subsidiary corporations in our country was still at an early stage, and it didn't form a complete theoretical system yet. The emergence of Enterprises Group in China was not long time ago. There are still some problems in the management of parent-subsidiary corporations such as cultural conflict, poor level of implementation of cultural control. Therefore, exploring the influential factors and means of cultural control has become a very tight subject.Cultural control is that the parent company makes use of vision and shared values to manage subsidiaries, so it is different from the method of formal bureaucratic control. The intensity of cultural control is influenced by means of cultural control, internal and external environmental factors, and people in organizations. At present, Management control in parent-subsidiary corporations can be divided into three types: centralized management, decentralized management and the other types between them. These patterns influence the mean of cultural control and the choice of control degree.As a main body of implementation, the parent company carries out cultural control through out-socialization and in-socialization, the formulation and implementation of the system and the establishment of cultural department. Although there are a variety of choices on the means of cultural control, the parent company can perform controlling on key control points. These key control points include the centralization and synergy of training, implementation and supervision of system, control of board members and managers, construction of enterprise information, and the level of supervision and integrated management. Through the control of key control points, Enterprises group can guard the cultural risks in the processing of carrying out cultural control.