The Research On The Optimization Of Luyin’s Parent-subsidiary Corporation Management Control

Along with the development and integration trend of global economy, our country enterprise scale tends to expend, and the amount of enterprise group has increased, the form of subsidiary company organization are widely used. Parent and subsidiary companies are equal in the level of law, through the property right relations form actually management control relation, parent companies realize their own governance will through the subsidiary, in order to achieve the ultimate objective of maximizing interest group. The management control of subsidiary company is not fixed pattern for ever, also not static, need to be changed and adjusted according to the external environment and the specific situation of the group, following the "contingency adjustment, and the operation" rules, select management control model, and optimize from the strategic, human resources, finance and so on various management control means.Under the guidance of Shandong Province, LuYin group was established in shandong province in1993, with the development of nearly20years, it’s subordinate industry including strip steel, powder metallurgy, cashmere products, such as real estate, with more than20subsidiary, has become a larger scale of enterprise group. With the expansion of the scale of the group, with the increasing of the number of industry especially subsidiary, the management control of LY’s subsidiary company on the governance structure is imperfect, the management control concentrated power, controls lack, especially group company’s positioning, these problems are serious increased the operating risks, restricted the further development of the group.To solve these problems, this paper first reviews the related theory, this paper analyses LuYin group in the subsidiary company on the control of internal and external factors affecting the existence, and careful analysis to the problem of internal control, and overall system design group subsidiary company management the optimum control system.First of all, the paper optimizes the corporation governance structure of LY group,and improves the board of directors and the board of supervisors and professional committee of the board of directors of the Settings, and formulated the rules, then repositions the mother company and set it’s fuction focus at guidance,service and coordination, abandon the function of operation management. Second, according to the characteristics of subsidiary, the position, subsidiary in the group stage of development, makes the choice of the control mode of management, a subsidiary of the management to be centralized such as the administrative management type management mode strip company, a subsidiary of the decentralized management to need flexible such as cashmere products company select independent management mode, to set with management, a subsidiary of the separation such as real estate company selection management type control mode. Finally, according to the management control mode, optimizes the organization structure at the request of LuYin group company, clears the functional departments of the functions and duties, and optimizes the management control through the methods including the strategic, culture, human resources, finance, performance and so on.