ATs6

The management idea of West China Hope Group is: Using proper person in proper position, bold devolution and strength supervision.

Enterprise control mode (C)

Formal control (r)

ACr1

Mainland Hope Group wanted to use modern enterprise management systems, ERP information system, to achieve scientific and efficient management.

ACr2

In Mainland Hope Group, they wanted to standardize the management by regarding equity as a link, laws as the criterion and implement target management responsibility system and use performance management, 360˚ assessment to strengthen enterprise internal control.

ACr3

One of West China Hope Group’s management policy is: “Using iron discipline to manage enterprise”.

ACr4

West China Hope Group wanted to use ERP system to monitor and guide every branches in real time. Currently, the usage of ERP covers logistics, production and financial management.

ACr5

By using marginal contribution rate, East Hope Group evaluated the investment returns of every branch and used formals management system in personnel, finance and quality management.

ACr6

New Hope Group seized two key points in management firmly: One is the finance of subsidiaries must accepts direct leadership of headquarter; The other is implementing vertical management system in the field of technology management

Informal control (i)

ACi1

Four brothers’ verbal agreement:

Liu Yongxing and Liu Yongmei hold the majority of the stock.

ACi2

Liu Yongxing and Liu Yongmei put forward the principle of “Share profits equally” initiatively, but the property right were still fuzzy and the wealth did not belong to one person, but everyone in the family.

ACi3

It was the first time of four brothers to divide their labor and assets in 1992. Different from the agreement in entrepreneurial stage, four brothers shared the stock rights equally (everyone hold 25%) rather than “Liu Yongxing and Liu Yongmei hold the majority of the stock”.

Subjective consciousness

(B)

Organizational trust (T)

Social trust (s)

BTs1

Liu Yonghao stated “The socialization of company managers not only can optimize governance structure, play the role of professional managers better but also help to guarantee family control”.

BTs2

Liu Yonghao stated “Provide the best wages, benefits and developing space to professional managers, let them help New Hope Group to grow. This kind of interaction is our common aspiration”

BTs3

Authorize gradually, give professional managers enough free decision space, everybody was let to display his talents fully, make professional managers and enterprise grow together.

BTs4

Liu Yonghao stated “Don’t afraid to use outsiders”

BTs5

Liu Yongxing stated “The biggest malady of family enterprise is social elite can’t participate in management layer”

BTs6

Liu Yongxing stated “There is no Liu’s family member in East Hope Group’s senior managers”

BTs7

Liu Yongxing stated “For employees who have potential capacity, we put them in the positions even they don’t dare to dream about to train them and after their capacity and responsibility increased, the remuneration will also increased.”

Enterprise control mode (C)

Formal control (r)

BCr1

East Hope Group pursued excellent basic management and kept improving enterprise management systems and related disciplines.