Three modes of group management and control

Lead: In order to carry out effective group control, we must first make clear the control mode of headquarters to subsidiaries. Generally speaking, the management and control mode of headquarters to subsidiaries can be divided into: operation management, strategic management and financial management. For example, what is the positioning of Shenzhen AVIC Group? High-tech manufacturing, real estate, retail? , the business relevance is low, and the strategic management and control mode is adopted. It is mainly reflected in the following aspects: the organizational structure dominated by holding subsidiaries, the relatively decentralized strategic management and control mode, giving full play to the vitality of various business sectors, and the decision-making efficiency of subsidiaries is high. Through the strategic cooperation of subsidiaries, we can form the competitive advantage of the group, enjoy key resources (technology, market, talents, management and finance), reduce transaction costs, give play to the efficiency of the group, and reflect the role of the group headquarters in creating value. As a large state-owned industrial group, China State Shipbuilding Corporation's development strategy is to highlight its main business and become one of the largest shipbuilding groups in the world, so it adopts the operation control mode. After professional management consulting, the functional orientation of its group headquarters has risen from management center to operation center, and the management and control mode has also developed from relatively scattered strategic management and control to relatively centralized management and control. Capital, finance, procurement and business are concentrated in four areas? The management mode has achieved the effect that the group headquarters can enjoy core resources, gain economies of scale and control business risks.

Three modes of group control 1. Operation management type:

The headquarters manages the daily operation of subordinate enterprises through the functional management department of the headquarters. In order to ensure the implementation of the strategy and the achievement of the goals, the management of various functional departments of the group is very in-depth. The core functions retained by the headquarters include financial control/strategy, marketing/sales, new business development and human resources. For example, personnel management is not only responsible for the formulation of personnel policies of the whole group, but also responsible for the selection, appointment and removal of the second-level management team and business backbone personnel of subordinate companies. In the group that implements this control mode, the business relevance of each subordinate enterprise is very high. In order to ensure that the headquarters can make correct decisions and solve various problems, the number of functional personnel at the headquarters will be large and the scale will be huge.

2. Types of strategic management:

The group headquarters is responsible for the group's finance, asset operation and overall strategic planning. At the same time, each subordinate enterprise (or division) should also make its own business strategic plan and put forward the resource budget needed to achieve the planning objectives. The headquarters is responsible for examining and approving the plans of subordinate enterprises, putting forward valuable opinions, approving their budgets, and then handing them over to subordinate enterprises for implementation. In the group that implements this control mode, the business relevance of each subordinate enterprise is also very high. In order to ensure the realization of the goals of subordinate enterprises and maximize the overall interests of the group, the size of the group headquarters is not large, but it mainly focuses on comprehensive balance and improving the comprehensive benefits of the group. Such as balancing the resource demand among enterprises, coordinating the contradictions among subordinate enterprises, and implementing? Corporate culture without borders? , executive training, brand management, sharing of best mode experience, etc. This model can be expressed visually as? The world has brains, and the world has brains? . Typical companies that adopt this control mode are BP, Shell Oil, Philips, etc. At present, most group companies in the world have adopted or are turning to this control mode.

3. Financial management type:

The group headquarters is only responsible for the group's financial and asset operations, the group's financial planning, investment decision-making and implementation monitoring, as well as the acquisition and merger of external enterprises. Subordinate enterprises will set their own financial goals every year, as long as they are achieved. In a group that implements this control mode, the business relevance of each subordinate enterprise can be very small. The typical financial management group company is Hutchison Whampoa. Hutchison Whampoa Group operates a number of businesses in 45 countries around the world, with more than 6,543,800 employees. Its businesses include ports and related services, real estate and hotels, retail and manufacturing, energy and infrastructure, and Internet and telecommunications services. The headquarters is mainly responsible for asset operation, so there are not many functional personnel in the headquarters, mainly financial management personnel. GE company also adopts this control mode. This model can be expressed visually as? Have brains but no hands and feet? .

Operation management and financial management are two extremes of centralization and decentralization, and strategic management is in the middle. According to the practical application, the types of strategic control are usually further divided into? Strategic control type? And then what? Strategic design type? The former emphasizes centralization while the latter emphasizes decentralization.

After defining the functional orientation of the headquarters, it is easier to straighten out the relationship and division of responsibilities between the headquarters and its subordinate companies. Subsequently, the choice of specific control mode, the determination of organizational form, the positioning of functions and the division of responsibilities of various departments within the organization have a clear basis. At the same time, the establishment and improvement of the corresponding support system can be logical. For example, in the human resource management system, the most basic work-job setting, job description and value evaluation-has a basis, so that a series of management systems such as salary, performance, ability, recruitment and training can be established on this basis.