Hunan Ding Eagle Group Parent-subsidiary Control Mode

Dingying Group is a state-owner enterprise that focuses on water and electricity industry infrastructures' construction and management. It puts into practice of centralized or decentralized management mode of parent-subsidiary corporations and adopts simplistic control methods.Currently, Ding Ying Group is in a critical stage of reform and adjustment. The strategies of further improving in related diversified group need to of development, the size of group is being expanded, subsidiaries and other various units different from ownership have different characteristics, and there is an urgent need to address the parent-subsidiary corporate management control problems and the optimization of parent and subsidiary companies of the Group Management Control System. Then the group get the strategic coordination.A complexing and phasing mode is a practical choice to Dingying Group .Based on investigation of the external and internal environment, specialists' interview, and questionnaire, the author drew the conclusion that the parent-subsidiary corporations management mode and the method has not met the need of the rapid development of Dingying Group. Dingying Group should change its management and control mode from excessive centralized and bureaucracy mode or extreme decentralization to the managed control mode based on the governance of subsidiaries. On the one hand, Dingying Group should persist the centralized management mode to the important subsidiaries and branches that be engaged in the expressway management. On the other hand, it should choose the managed control mode based on the governance of subsidiaries to the other subsidiaries and give them more and more rights to increase their enthusiasm and the response speed to the complicated environments. At the same time, it should select and use all kinds of flexible management methods to amplify parent-subsidiary corporation management control system.