The Research On Group X'S Mother-subsidiary Company Management And Control

Grouping is an inevitable product when the Chinese and overseas companies reach a certain stage of development, and is the only way to achieve a breakthrough for the modern enterprises basing on a certain scale. The collectivizing of the companies can maximize the value of the business of 1+1> 2 through internal non-market resource consolidation. However, the expansion of the grouping brings big challenges to the management, how to achieve effective control from the group over the subsidiaries and at the same time to ensure adequate room for each industrial module is the long lasting subject in the global business.Chinese state-owned companies pushed by resources and opportunities in the process from a planned to a market economy also change to grouping direction, in the requirement of marketing development, it's also become a key link to play the greatest degree of the group in the allocation of resources and value creation. Although there is a "Company Law" clearly defined management structure of enterprises, the practice has proved the law defined modern enterprise system can't ensure an effective parent and subsidiary company management system. It's a major practical problem for all the groups to build an effective parent and subsidiary company management system so as to ensure groups' overall strategy.Group X was the star in the Chinese household electrical appliance industry; its historic grouping development is not only the inevitable result of industrial development, but also the result with typical administrative color. After experiencing a series of group formation, pioneering, raising, brilliance, expansion, confusion and recombination, the group still remained with imperfect parent and subsidiary company management structure, unclear division of authority, management control design needed to be further improved, over-complicated organizations, ambiguous division of responsibilities, neglect of group strategy and culture construction, loose control of financial control, performance evaluation, and information systems, and other management controls. There are unreasonable factors existing in the control of parent and subsidiary company.In order to optimize X group's parent and subsidiary company management control system, we should improve the parent and subsidiary company governance structure, establish checks and balances between the powers, which should be based on X group's strategic development goals; Further formulate management restriction between the powers, make clear the rights and obligations of each main body, standardize the code of conduct of each main body, and ensure the subsidiaries to play active initiatives; Moreover, optimize the organizational structure of the group, strengthen and expand the group departments management function; At the same time, in accordance with the company different stages of development, by use of various means of integrated management control, establish a fair, just and open performance appraisal mechanism and incentive and restraint mechanisms to ensure a smooth realization of the parent and subsidiary company's each target.