Research On The Parent-Subsidiary Companies’Management And Control Based On Business Associated Degree

The context of world economic integration, enterprise groups, especially the development of the multinational corporation has become an inevitable trend. The growing number of enterprise groups facing the development of a wide range of Parent-Subsidiary companies in the organizational operations of the enterprise group, necessarily involves the mother and the company’s management control problems. The parent companies and subsidiaries properly deal with the problem of management control which is directly related to the relationship between the corporation and its subsidiaries, not only the operations of enterprise groups, organizations successfully achieve, but also determines the ability to achieve the strategic objectives of the enterprise group. For a large enterprise groups, a key management control problem of Parent-Subsidiary companies is to handle the proper choice for the subsidiary management model and the control According to the business associated with the degree of parent companies and subsidiaries of subsidiaries classified management, a new management mode selection and control means of the application for the Parent-Subsidiary companies. In this study, control theory in the management of parent companies and subsidiaries of existing enterprise groups review on the basis of the analysis of management control status of Parent-Subsidiary companies of enterprise groups in China. Further the study investigate the X-Group, Parent-Subsidiary companies as Empirical Study of the Parent-Subsidiary business association management mode of the Parent-Subsidiary companies, as well as mother and son the matching relationship between the means of corporate control, trying to do a little exploring in the management model of the perfect enterprise groups in China parent companies and subsidiaries, provide a reference for the guidance of the management practices of the Chinese enterprise groups, Parent-Subsidiary companies.The findings show firstly that, based on the extent of the degree of technology transfer between Parent-Subsidiary companies and the subsidiary company is involved in the core technology of the parent company subsidiaries are divided into core business subsidiaries, business units and other business units. Secondly, according to the set of decentralized different levels of Parent-Subsidiary management model is divided into three, the centralized model, set decentralization combined with a management model, and decentralized management model. The mode of pursuit of the core idea is to authorize and control the balance. Enterprise groups should give full consideration to the type of business of the subsidiary, clear Parent-Subsidiary corporate management of separation of powers "principle. The centralized model focuses on process control, set of separation of powers combined with a management model focuses on the control of the program; the decentralized model is more emphasis on control of the results. In the management mode of choice of the Parent-Subsidiary companies, the centralized management model applicable to the high associated with the main business of the Corporation wholly owned or holding subsidiaries; sets decentralization combination of management mode applies higher with the Group’s main business association owned and controlled subsidiaries; decentralized management model applicable to other subsidiaries of the high associated with the main business of the Corporation.Subsidiaries in the Group’s development strategy is different for different types of enterprises, the company subsidiary of the approach taken in the management and control methods should also be different, combined with the specific design of the various types of enterprises targeted management control is necessary. Strategic control, personnel control, cultural control, financial control, performance control, information control are the basic means of the six management control types of the Parent-Subsidiary companies. For different companies, the parent company to subsidiaries in strategic, personnel, cultural, financial, performance, information and other aspects to be taken to control. Core business units of the applicable means of control:strategic, and cultural control, human resources, control, financial control, information control means, process-oriented use. Control means associated business units for the management of pattern matching:strategic and cultural control, process control, result control, efforts to control the lower, focus on the control of labor costs. Other business units of the applicable means of control:strategic and cultural control, performance control, and company resources (human, financial, physical, information). Operational evaluation of the results, the use of frequency and depth is much lower than the core business.