The Research On Parent-Subsidiary Management Control Model Of YK Group

With China’s rapid economic development and deepening the reform of state-owned enterprises, more and more enterprises develop the group scale. To improve the effectiveness and efficiency of the operations and avoid Large Enterprise Disease, an effective group of management control model plays the important role in domestic enterprises’healthy and sustainable development.As a transnational, cross-regional operation of large state-owned enterprise group, YK Group operates coal, coal chemical products, electrolytic aluminum and mechanical and electrical device manufacturing. In terms of analysis of Group control environment, YK Group’s management control appears the phenomenon of unbalance. With the development and expansion of enterprise group, group management control ability will be an important factor which restricts YK Group’s fast growth. After the confirming the key elements above, It has practical significance to choose and design the fit management control model for YK Group.The analysis thinks that the present condition of YK Group emphasizes on administrative management, the model is single, and does not match management control means, corporate governance needs to be perfect, organization structure needs to be set and optimize, the parent company is accustomed to doing everything for subsidiary company, ownership company is used to pressing the parent company instructions and lacks the market strain ability, therefore, the model does not adapt to international enterprise groups development. Through the analysis above, the text provides a plan for adjustment, compression group organization, and establishes governance structure models and operation rules of different forms, which includes wholly owned subsidiary, holding subsidiary, share company, branch company and etc; then,in this text, it presents an idea that Coal chemical Branch and Electric aluminum Branch adapt to the administrative model, Coal Mining Co., Ltd, Guizhou Neng Hua Co., Ltd and Xinjiang Neng Hua Co., Ltd. for the managing model,and Donghua Industrial Co.,Ltd, Property management Branch and Financial management Co., Ltd. for independent management model. Finally, in order to ensure the effective implementation of management control model, the text presents a practical support measures from aspects as strategic management, corporate governance, human resource management, financial management, investment management, cultural management and risk management, etc.