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Research based on the balanced scorecard thinking of a subsidiary of the parent company evaluation results

Author: RenRuiXiang From: www.yourpaper.net Posted: 2010-05-23 14:06:32 Read:
[Abstract] parent company should focus on the relevant factors of the positioning of the subsidiaries in the Group's overall development strategy, and the stage of development of the subsidiary, designed to adapt to the performance evaluation system, the development of the subsidiary fully reflects the parent company's investment objectives with The strategic intent subsidiary under the guidance of the Group's overall strategy to achieve sustained and healthy development.
[Keywords] performance evaluation; parent and subsidiary companies

Joey Miller pointed out that the International Accounting: a good performance evaluation system allows senior managers to determine the profitability of the existing business activities; discovery has not yet control the field; configuration company limited resources; evaluation of management performance. Therefore as a strategic management tool for the design of the performance evaluation system must meet the goal of consistency, good contingency reaction evaluate the characteristics of the enterprise, other performance evaluation system but also to meet the evaluation is accurate, timely and objective. Therefore, we must proceed from a strategic and systematic view to consider the performance evaluation of the parent and subsidiary companies.
Now the enterprise group has entered the era of strategic management, competition among enterprises for long-term, comprehensive ability of competition. Strategic enterprise management to deal with long-term goals and short-term goals, the relationship between the overall interests and local interests. Therefore, the performance evaluation system of the parent and subsidiary companies as a subsystem in a part of the Enterprise Group's strategic management and strategic management system, the index system, the evaluation criteria to be tight around the Group to build on the overall development strategy of the subsidiary arrangements, performance evaluation system of the parent and subsidiary companies to be able to fully make a scientific and comprehensive evaluation of the system of internal and external environment affect subsidiaries and parent company have a clear grasp of the internal and external situation of the subsidiary, the subsidiary's efforts in order to further clarify the direction optimize the Group's internal allocation of resources, in order to achieve the strategic objectives of the whole group. For example: for those who encourage their scale subsidiary, it is appropriate to evaluate the residual income. Consistent with the Group continues to expand the overall strategic objectives. So, we build the mother and the performance evaluation system should be closely around the Enterprise Group's long-term strategic goals, the entire system should be conducive to the formation of the Enterprise Group's long-term competitive advantage; entire evaluation system to have a global concept, highlighting the overall interests of the enterprise, distinguish the factors that affect the interests of the local and global forecast uncontrollable factors affect the overall interests of, and under the guidance of the Group's overall strategy, financial and non-financial factors, qualitative and quantitative factors, and the overall and local factors such as organic unity.
Enterprise groups as a complex open systems, we build the mother and the performance evaluation system, but also from the overall, system, comprehensive perspective to analyze and the research mother and company performance evaluation system and related issues. So, when building a mother and the performance evaluation system, to pay attention to the Group's strategic objectives for the center, always emphasized objective achievements and objective effects of the enterprise group system; maximize this system to the whole group, stressed that the interests of the whole group rather than subsidiaries individual local optimization. System theory can help us focus on research in the study of parent-subsidiary performance evaluation system, the system by which the relationship between the specific elements of of survival greater layer of the system and this system internal and mutual influence.
Mother and so we have to clear the building of the performance evaluation system is a subsystem of the overall strategy of the enterprise group management system is an integral part of the entire corporate group management system, Enterprise Group's overall strategic development services. Our intention is to stand on the perspective of the whole group system, to evaluate the results of operations of the subsidiary as a subsystem of the Group, so at this point, we have a clear organizational aspects of this mother and the performance evaluation system, the evaluation of the main must be the strategic management department of the parent company and the relevant functional departments, and its object is the actual operating results of each subsidiary. The mother and the performance evaluation system in the entire operation and management system as shown below:

The construction of the specific method of evaluation, we follow a relevant factor in the performance evaluation system to be derived from the Group's overall strategy and, ultimately, for the Group's strategic services. Under the guidance of the Group's overall strategy, but also with the actual situation of the evaluation of the object, and build whole mother and the performance evaluation system. Mother and company performance evaluation system is a multi-link system as the center of the group strategy. This system consists of the design of the evaluation, the evaluation criteria to determine the value, the actual performance measurement and evaluation of the results of the strategic application of other sectors. We build the parent-company performance evaluation system as shown below:

Parent-subsidiary performance evaluation system is a strategic signal mechanism to express the concern of the parent company to the subsidiary strategic expectations, to the Group's business objectives and the Group's strategic intent to convey to each subsidiary, prompting subsidiary operators standing own point of view to the implementation and enforcement of the Group's overall strategy. The results of the evaluation of strategic applications make up the loopholes of the previous link may exist to promote the protection of Group finishing to achieve strategic business objectives.
Here, the results of the evaluation of strategic applications is the core of the evaluation system, the evaluation index from the parent company to subsidiaries basic goal expectations, and strategic application of the results of the evaluation will not only be targeted strategy of parent expectations and Group internal allocation of resources to make the adjustment; subsidiary of the main operators in their own interests and expectations of the parent company's strategy can also be linked to procure that its actions are consistent with the strategic positioning of the parent company to subsidiaries. Determination of the target value is the result of comprehensive consideration of environmental factors faced by the Group as a whole, under the premise of the parent company to further make clear strategic expectations. Target value properly or not affect subsidiaries operate the mobilization, the impact of the Group's overall strategic health development. The actual performance measurement is the basis of performance evaluation is carried out smoothly, this link should be subordinated to and serve the needs of the Group's overall strategy to consider the functionality of existing enterprise information systems.
Finally, the performance evaluation system of the parent and subsidiary companies should have the following individuals and dynamic characteristics:
Individual characteristics. Due to the differences of subsidiaries stages of development, production and operation and environment particularity itself facing different strategic positioning of the Group's overall strategy, strategic positioning requirements with matching mother and performance evaluation system corresponding, in order to provide a comprehensive system of scientific evaluation of the results of operations of the subsidiary, to provide the basis for the strategic adjustment of the parent and the Group's internal resources optimization.
Dynamic characteristics. Parent-subsidiary performance evaluation system is the development of dynamic. Mother and performance evaluation system design will be subject to the the internal constrained environment, the development strategy of the Group, the Group outside the market, the impact of the regulatory environment, and these factors are not static. Changes in certain factors to achieve substantive impact, mother and performance evaluation system is bound to change. With the continuous development of the market environment, the subsidiary into the different stages of development, will bring the Group's overall strategy to adjust, and thus the impact on the mother and performance evaluation system. Therefore, a good mother and the performance evaluation system to be able to fit the Group's internal and external environment, which can effectively promote the interests of consistency between the parent and subsidiary companies, and ultimately to promote the overall value of the Group's largest.

References
[1] Zhang Tao, Wen new enterprise performance evaluation. Economic Science Press, 2002.12
[2] TRANSFORMATION. "Business performance evaluation." Accounting Research, 1998 12
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