Research On The Performance Management System To The Subsidiaries Of C Company Based On Balanced Scorecard

With the rapid development of domestic economy after thirty years,many enterprises grow from weak to strong, a lot of group enterprises growing out, especially state-owned holding group. How to handle its subsidiaries so that the subsidiaries could actually serve the purposes to the group’s development strategy? it’s a question that has also been thought about by the group executives. In order to control subsidiaries, the most important part is the management of subsidiary executives,so that both of parent-subsidiary could realize the synchronous development.The most scientific method is the performance management.Mature performance management system which is praised as managers’ holy grail by many managerialists, was originated from the United States in the 70 s of the last century and introduced to China in the 90 s. After decades o f development, performance management has owned multiple sets of complete system, strict process and the system of a virtuous cycle, at the same time, it has produced a large number of performance management tools, such as BSC, KPI, target management, etc. Especially the BSC which could turn the strategy into action, is in the most willing to focus on and carry out by the human resources department even execution of a set of control system. In the meantime, the BSC is the most comprehensive system of performance management tool.Firstly, the article summarized and learned the control theory of performance management from the parent-subsidiary, introduced the basic situation of C company including its subsidiaries and the control mode of C company to its subsidiaries. Secondly, through the study of C company’s long-term strategy, ensured its main development path in the next six years the, as well as their positioning and planning for the development of the subsidiaries; Thirdly, by analysising the subsidiaries’ senior manager group composition and the characteristics of the work, reveals the structure of the subsidiaries’ senior manager and its strategic requirements of matching degree to C company; Last but not least, put forward the exist problems in the evaluation mode by dissecting performance management system of the subsidiaries.The above analysis can be found that BSC could solve the current performance management predicament of the C company to its subsidiary company.On this basis, through the interviews to management and the investigation to senior managers,distinct the basis and the desire of BSC, verify the BSC is completely feasible in the performance management of the C company to its subsidiary company. In addition, the paper has refined and designed the index design, weight design, implementation of the BSC performance management system, formed a complete performance management scheme of the subsidiary based on BSC.From the research, C company’s executives has positioning itself to be a strategic guiding company, each subsidiary has been incorporated into the strategic development framework of the parent- company, according to the positioning, bear the different strategic task. The current performance appraisal way does not meet the needs of C company’s strategy control to its subsidiaries.C company executives agree that they could use BSC to realize strategic task from the parent-company to subsidiary, senior managers of C company have the desire to change the existing assessment method. Based on the above advantages, according to the BSC’s four dimensions: customer, internal business processes,and learning and growth,meanwhile add the measure of special requirements for the other dimensions of state-owned enterprises. According to the function of each unit and competitive positioning, the paper designs two sets of corresponding index system, match with different weight distribution. At last, the paper has summarized the main points of the implementation of each link which need to pay attention to, in order to realize the parent-company ‘ s strategic requirements based on the subsidiaries’ BSC performance management system, and could effectively promote the system.