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How to determine the management and control model of group companies

Author: DingJingPing From: www.yourpaper.net Posted: 2007-11-19 20:04:23 Read:
Group companies control mode determination is a complex system, it is to relate to the three dimensions of the problem:
First is narrowly defined management mode to determine, that the headquarters of subordinate enterprises control mode; followed by generalized control mode, it not only include the narrow sense of specific control mode, but also the company's governance structure to determine, headquarters and under the Company's role and segregation of duties, the specific form of organizational structure to select the (linear functions of the system, the division system, the matrix system, subsidiaries, and multi-center network type), the important resources of the Group's control (such as human, financial, material management and control system) as well as the establishment of the performance management system; third level is the consideration of some important external factors related to the management and control model, it comes to strategic business objectives, human resources management, workflow systems, and management information systems.
the three specific control mode
The headquarters of the management and control model of subordinate enterprises, according to the headquarters of the set, a different degree of decentralization the operation control type ", strategic management and control type" and "financial management and control type is divided into three control modes. These three models each with distinct characteristics:
operation control type: Headquarters developed from strategic planning to implementation of the little tube. In order to ensure the implementation of the strategy and the achievement of the goals, the Group's various functions of management depth. Such as personnel management is not only responsible for Group-wide personnel system policy formulation, but also responsible for the management of the two companies management team and the backbone of the business personnel selection, appointment and dismissal. In the implementation of this mode of control group, the the subordinate enterprise business to be very high. In order to ensure the headquarters can correct decision and able to cope with solving a variety of problems, headquarters functions of the number of personnel, the scale will be very large. Companies such as GE in 1984 is used in this control mode, resulting in the headquarters functions up to more than 2,000. Until Jack. Welch as CEO after the strategic management and control model, greatly reducing headquarters staff officers. This mode can be vividly described as "mind, hands and feet. IBM can be said to be typical in this regard, in order to ensure the implementation of the strategy of the global "on demand" type, each division by the headquarters centralized management plans to be formulated by the headquarters, subordinate units responsible for safeguarding the implementation.
strategic control type: Group headquarters is responsible for the Group's financial assets operations and strategic planning of the Group as a whole, the subordinate enterprises (or division) as well as to develop their own business strategic planning, and proposed to achieve the planning objectives of inputs required resources budget . The headquarters is responsible for approving the plan of subordinate enterprises and to give value-added recommendations to approve its budget, and then performed by the subordinate enterprises. In the implementation of this mode of control group, the relevance of the business of the subordinate enterprises demanding. Group headquarters in order to ensure the maximization of the goals of subordinate enterprises and the Group as a whole, the scale is not large, but the main focus during the overall balance, improve the overall efficiency of the Group to do the work. Balance the resource requirements among enterprises, to coordinate the contradiction between the subordinate enterprises, implementation of the "borderless corporate culture", the cultivation of senior director, brand management, best practices sharing of experience. This model can be vividly expressed "brains, brains". Use this control mode typical British Petroleum, Shell, Philips. The world's most Group companies have adopted or are turning this control mode.
the financial management and control type: Group headquarters are only responsible for the operations of the Group's financial assets, the Group's financial planning, investment decision-making and implementation of monitoring, as well as external business acquisitions, mergers. The subordinate enterprises each year will have their own financial goals, as long as they can reach your financial goals. In the implementation of this mode of control group, the the subordinate enterprise business can be very small. The typical financial management company of the Group and Hutchison Whampoa. And Hutchison Whampoa Group operates a number of businesses in 45 countries around the world, employing more than 180,000 people, it has both ports and related services, real estate and hotels, retail and manufacturing, energy and infrastructure business, Internet, telecommunications services business. Headquarters is mainly responsible for the operation of the assets, the functions of the headquarters staff is not much, and financial management. GE is also using this control mode. This mode can be vividly expressed as "intelligent, hands and feet.
Visible operation control type and the type of financial management and control of the two extremes of centralization and decentralization, strategic management and control type in the intermediate state. However, some departure from their actual situation, In order to facilitate the management and control, strategic management and control in the intermediate state further fine program for the implementation of the strategy type "and" strategic guidance type ", the former emphasis on centralization and the latter emphasis on decentralization .
broad control mode there is no "best" only "the most suitable"
The broad control mode because a lot of factors that affect all enterprises in which the industry competitive environment and conditions of the same, therefore, there is a "standard" or "universal" model, there is no "best" mode , only the "best fit" model, and they are also bound with a number of external factors change continuously adjusted.
For example, the factors affecting the Group company organizational structure specific forms of competitive environment, corporate strategy, business portfolio, industry characteristics, firm size, management of traditional, government policies, legal requirements, the Group which the different stages of development, and so on, even operating by style. Thus, in real life, the organizational structure of the Group companies are actually often based on a hybrid form of existence, most of them based on the system of a parent company and a subsidiary company based mixed with the division system and linear functions of the system at the same time.
Another example, from the needs of the business strategy, the main industry development direction of the Enterprise Group Holdings subsidiary, the parent can use the equity swap, acquisitions approach making it a wholly-owned subsidiary, in order to achieve full control of the company; a wholly owned subsidiary, based on some considerations may also sell part of the shares so that it becomes a holding company or a joint stock company.
Again, from the operating risk factors to consider, if it is anticipated that the company off-site operational risks, to set up a subsidiary, to a limited liability; On the contrary, they may consider to set up branch offices, to reduce the tax base of the parent company's taxable and operating costs.
organic system of management and control model
To determine the management and control model of the group of companies involved in the problems of the third dimension, related to the management and control model some important external factors to consider, including strategic business objectives, human resources management, workflow systems, and management information systems.
Management and control model for the group of companies is very important, but if the sake of discussion is often difficult to say clearly, solve the problem. First, the choice of the management and control model what should be the criteria? Management and control model needs to be developed where to start? To solve these problems are related to the company's strategic objectives. Since the establishment of the management and control system based on the completion of the Group for the purpose of specific strategic objectives, it is to achieve the strategic objectives of the Group's business services. Therefore, the benchmark established by the management and control system of the Group companies is the Group's business strategy. To achieve effective control of the group of companies, management of the Group's business development strategy should first clear direction and goals of development to the whole group. So that all employees know the way to where to go, where an effort to make. Otherwise, the Group company's management and control system will lose the basis for the establishment of the blind set up management and control system is often ineffective.
Secondly, management and control model specific implementation of each position, each employee, and make it truly effective? Management and control model of the problem is not merely in the management and control model can be solved, it needs to have a specific way to help it implement. For example, a company's strategic objectives are very clear, governance structure and organizational structure matched, too, the sector is also very clear division of responsibilities. But not the work can be automatically carried out? Target will be able to successfully achieve it? The answer is clearly no, because they have a lack of implementation of the security conditions. Can think about, if a corporate job responsibilities are not clear, unreasonable salaries and benefits, performance management is not perfect, staff training can not keep up, staff development no prospects, employees will be on the enthusiasm? The ultimate goal can be achieved? Therefore, the implementation of the management and control model of group companies, there should be the improvement of the human resources management system and cooperation.
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