How does the head office manage its subsidiaries?

After the establishment of the subsidiary, how to continuously improve the overall operating efficiency and anti-risk ability of the subsidiary, so as to increase the company's profits? To achieve these goals, we must strengthen the management of subsidiaries. So, how does the head office manage its subsidiaries? What are the common problems in subsidiary management? Let's take a look together, I hope it will help you! What are the common management problems of subsidiaries?

1, it is difficult to obtain information and there are many obstacles in management.

Subsidiaries have their own positions, and if they are not controlled, this position or self-will will will become more and more obvious. When the interests of the parent company are temporarily unfavorable to the current situation of the subsidiary, the subsidiary will take risks and hide or lie about the information. The result is that management is out of control and hidden dangers are everywhere.

2. Subsidiaries are self-interested, and the income is difficult to guarantee.

As a subsidiary, under normal circumstances, it will concentrate on business and strive to create the best performance. However, in the process of operation, there are actually some links where individuals gain and the company loses. Some unknown behind-the-scenes transactions may make some people rich, especially some company executives, and it is easy to get such opportunities. Sometimes the company is losing money, taking up a lot of investment costs, while some people earn a lot of money. This is the poor supervision caused by excessive decentralization and unbalanced management and control, which breeds corruption.

3, talent management risk

The competition between companies can be interpreted as various versions, but in the end, none of them is competitive. If a company has professional or top-notch talents in the industry, it will have a dominant position in the industry. The parent company should put forward requirements and standards for the construction and management of subsidiaries' teams and talents, otherwise it will be difficult to ensure that it can build a high-quality talent team. Without talents, you can't fight hard, and when you meet challenges, you can't fight. In addition, if there is no intervention in the talent management of subsidiaries, you don't even know the minimum team situation, let alone talk big. The relationship between companies essentially depends on interpersonal relationships, cooperative relationships and familiarity. The first step of control is to manage people, and people can't give up the right of assessment. Giving up causes the risk of talent management in subsidiaries.

4. Legal risks of process management

In daily production, operation and life, legal risks are everywhere. So in a word, in a word, your final creditor's rights may not be recovered, and rationality will become unreasonable. This requires subsidiaries to prevent and control risks from the aspects of external cooperation and internal control, so as to prevent them beforehand. Although the subsidiary is an independent legal person, it bears civil liability independently. But the management is not in place, the risk exists, and finally the crisis comes, which will cause losses to the parent company. Therefore, the loss of control rights of subsidiaries will cause legal risks in process management.

How to solve the management problems of subsidiaries

1. In the form of general meeting of shareholders.

Mainly, the parent company controls the shareholders' meeting of the subsidiary, and influences the management decision of the subsidiary through the shareholders' meeting. However, there is one exception, that is, when the subsidiary is not wholly-owned and the parent company holds less than two thirds of the shares, the parent company may not be able to fully implement its influence because the special resolution of the subsidiary shareholders' meeting requires two thirds of the shareholders to exercise the resolution right.

2. Through the board of directors of subsidiaries.

The shareholders' meeting only decides a few important matters of the subsidiary, which has limited effect, and the decision of major business is carried out by the board of directors, so it is very important to control the board of directors, and the parent company can exert influence by controlling the board of directors of the subsidiary.

3. In the form of the board of directors of the parent company.

The laws of different countries are different, but it is generally required that some major decision-making issues in the operation of subsidiaries, such as accepting or transferring important property and huge loans, need to be solved by the board of directors of the parent company, so as to implement some influences.

4. Evaluate and guide the performance of subsidiaries through the parent company.

The parent company can pass the routine performance appraisal of subsidiaries, the deliberation of important matters and the guidance of some work of subsidiaries.

Methods for enterprises to manage subsidiaries

1, sort out the ownership structure

Sorting out equity mainly depends on a boundary, whether the parent company is the largest shareholder. If so, the parent company is in an absolute holding position and legally holds the initiative of control. The parent company can make rules and the subsidiaries can abide by them. If not, it depends on the relationship between the controller of the parent company and the controller of the subsidiary company, and whether there are other interests, so as to find the convenience of control. If there is no possibility of active control, the management mode is agreed through the cooperation agreement.

2, control the upgrade, appropriate centralization.

Excessive decentralization is harmful, so the countermeasures are to upgrade control, properly concentrate power and concentrate key power. From the management authority and mode, strengthen the control of subsidiaries. Many group companies adopt financial control mode to control their subsidiaries, that is, monitor financial statements and grasp the flow of funds and process profitability. This method is a management process on the surface, but actually only wants results and pursues the results of return on investment. If we want to further reduce risks and hidden dangers, we should also directly intervene from all aspects. Human resource management and control is the key project to do well in management and control.

3. Strengthen professional technical control and guidance.

Do a good job of control, give full play to the advantages of professional technology, and establish the relationship between technology and technology within the company. It is the last word for subsidiaries to rely on professional technology. Only people can convince people, and only people can admire them. Specific measures can be that the parent company regularly conducts technical inspection and guidance, establishes a system of technical exchange meetings between companies, and jointly develops new topics.