Research On The Application Of The Value Of The Corporation Management Entropy

With the competition between corporations getting fiercer, corporations need scientific theories to guide their operations. By setting up a measuring model of corporation management entropy, this essay is designed to appraise the efficiency of corporation management by making use of the value corporation management entropy, which is based on the theory of management entropy and management dissipative, and the help the corporations to make sound decisions.In the first part of the essay, the author gives an account of the complexity of business organizations. Such a feature calls for the application of management entropy and management dissipative in the research of the pattern of business operation. Then the essay goes on to introduce the theory of corporation management entropy and management dissipative advanced by prof. Ren peiyu and describe the relationship and interaction between management entropy and management dissipative as well as the relationship of this theory with the regulation of the evolution of business organization.In setting up the measuring model of corporation management entropy, the author conducts the calculation of the management entropy in terms of the corporate pay off ability, debt redemption ability, marketing, organization management and the sustainable development of the corporation. The calculation results constitute a matrix in which all factors are influenced by management entropy. By combining the interaction matrix of the eight factors with the weight matrix, the value of overall management entropy can be calculated and on the basis of this model we can calculate the value of the management entropy of any assumed business.In the last part, the essay analyzes the possible application of the calculation result through the analysis of a supposed case and points out the interval (distribution) of the value of management entropy in decising making.