Research On The Integration Of Internal Control And Value Management

Entering the new century, we clearly realize that we are at the initial stage of a change, which has fundamentally changed the operation mode of the enterprise.

The concepts of organization reengineering and process innovation have become very popular. The concept of enterprise is no longer confined to the internal organization of enterprises, and has been extended to the entire supply chain outside the enterprise, including suppliers, customers and other stakeholders.

With the deepening of the research, it is gradually found that the factors that affect the operation of enterprises are multidimensional and three-dimensional. Cost, quality, time, service and environment are the key competitive factors that urge the enterprise to win customers and create value. The standard of measuring the advantages and disadvantages of enterprises is no longer profit, but should be a comprehensive index of competitiveness. This capability index is "the value of enterprises".

How to maximize the value of enterprises has become a worldwide problem that puzzles us since the emergence of enterprises in the modern sense.

Based on the above understanding, value based management has become a new mode of enterprise management in western enterprises.

Unlike the traditional enterprise management mode, which focuses on the production management and profit maximization of enterprises, this new enterprise management mode highlights the core position of enterprise value in the concept of enterprise management. Based on the enhancement of the overall value of enterprises, it emphasizes the unification of the external market value and the internal economic value of enterprises, so the theory of enterprise value management is the modern extension and the latest development of the theory of enterprise management.

As Margaret, a senior editor of Harvard Business Review, summed up in his "what is management", the essence of management is first and foremost creation value and value management.

Based on the formation and improvement of different enterprise values, different enterprise values have different definitions of enterprise value content due to their different understanding of enterprise value and different methods of evaluating enterprise value, thus forming a variety of definitions and contents of value management.

Tom.

Kaplan and others consider value management, also known as Aalue-Based Management (VBM), is a comprehensive management mode based on value assessment and value growth.

Enterprise value management is a management structure that creates long-term value for shareholders through evaluation and management of enterprise activities.

And rewards are given through the increase in stock prices and dividend growth.

In essence, value management is a management mode and a set of guiding principles. It is a strategic performance measurement that promotes organizational formation and focuses on internal and external performance and value creation.

This article holds that, fundamentally speaking, value management is the activity process centered on the continuous creation of value and the realization and distribution of value.

Among them, the continuous creation and increase of value and the realization of their own value are the two central links that closely undertake, depend on each other and promote each other.

The continuous creation and increase of value is the premise for the realization of the value of the enterprise itself, while the latter is the basis for the continuous development of the former.

Especially in the constantly changing and dynamic environment, the smooth progress of these two links is the key to the sustainable development of enterprises.

The continuous creation of value is a creative activity with strategic significance for the sustainable development of enterprises. Only through such activities can the core idea of value management be materialized.

As Tang Gu Liang believes, "value management is rooted in the internal requirements of enterprises pursuing the maximization of value, and a new management framework based on value assessment, planning value objectives and management decisions, integrating various value drivers and management techniques, and carding management and business processes" is established.

The continuous creation of value needs to find corresponding driving factors, and this driving factor exists in all kinds of resources that enterprises need. However, the relative scarcity of resources will change with time. The enterprises that can achieve relatively dynamic allocation of resources can achieve sustainable development and enhance the overall value of enterprises.

Further analysis shows that, as the driving factors of sustained creation of value exist in various elements of enterprise needs, because of the large number of essential elements of enterprises, there must be conflicts between value orientations among the main factors.

The coordination of the input value orientation of the factor input is integrated into the value management, and then the integrated value management performance information is reflected in the capital market completely and systematically, so as to realize the harmonious distribution of the value created by the enterprise among the main investment entities.

It is one of the important goals of the future value management theory to make the society understand the public responsibility of the enterprise.

The main technical support to achieve this goal is to establish an internal control system based on the common governance of enterprises' main input elements, so as to enable enterprises to reflect and disclose the complete value information (a kind of integrated information that mainly reflects the value management of enterprises such as social responsibility). It embodies Scientific Outlook on Development, achieving sustainable development and achieving the ultimate goal of maximizing the overall value of enterprises.

This may cause people's worries, mainly from enterprises.

It may lead to excessive failure of enterprises.

It is necessary to design a complex and cumbersome control procedure for coordinating the coordination of the value orientation of the input elements and the pursuit of the expected value orientation of the public and society, so as to control the errors and defects within the acceptable scope. This will lead to the slow decision and action speed of the enterprises, the decline of the reaction speed and ability to the market, thus leading to the failure of the enterprises.

At first, people often neglect internal control of enterprises. Now the contents of internal control are more and more, which may cause "overcorrection". Therefore, how to correctly grasp and understand the internal control function of enterprises becomes the key to understand the above problems.

It is mainly confined to the internal stakeholders of enterprises. Under this background, the internal control functions of enterprises are mainly related to the management functions caused by internal conflicts of interests and division of labor and cooperation. Under the limited liability company system, the conflict of interests between owners and creditors of the enterprise owners and between the production managers and the non controlling owners is caused by asymmetric accounting information, which is much more serious than the owner and partnership system, which results in the expansion of the internal control function, that is, the generation of the moral hazard and adverse selection behavior management functions of the enterprise operators and owners, so that the internal control mode conforms to the governance objectives. Under the owner system and partnership system of the enterprise system, the basic characteristics of the economic mode are the market economy mode, but the conflict of interests caused by the asymmetry of accounting information.

Among participants, the healthy operation of capital market has been affected, so the internal control mode now appears to be a unified mode, and the internal control standards or guidelines are unified by authoritative organizations to ensure the effective operation of the whole capital market. Under the planned economy mode, the enterprise system adopts state ownership or ownership by the whole people, and the enterprise's objectives are mainly subordinated to the national macro planning objectives, and the government directly participates in the management and management of enterprises. The allocation mechanism and distribution mode are directly determined by the government, thus deciding that the internal control mode is mainly subordinated to the national macro-economic plan and the government's direct participation in the management of enterprises.

In view of this, the function of internal control, that is, internal control can solve any problem, it depends on the needs of enterprise development, especially the economic environment of enterprise development and the matching economic mode.

In other words, under the circumstances of changing needs of enterprises, especially in different economic environments,

Different economic regulation mechanism and regulation means different corporate governance modes and management modes, thus the demand for internal control functions is different, which leads to different positioning of internal control, and then puts forward different internal control function modes.

Under the background of the current value management era, because the enterprise is a real social existence and does not emphasize the maximization of the value of the enterprise's overall factor inputs, there is no such thing as the maximization of the overall value of the enterprise.

Only by continuously creating value, coordinating and balancing the value orientation of the main elements of enterprises' input, and ensuring the harmonious coexistence of enterprises' factor inputs, can enterprises comply with the expectation of social public value orientation and thus enhance the overall value of enterprises.

The establishment of an internal control system based on the corporate governance mechanism of corporate stakeholders has become one of the important means for enterprises to continuously create value and maximize the value of enterprises.

Our era is an open and inclusive era. Interdisciplinary research has become one of the main directions of current theoretical research.

While carrying out theoretical research, we must grasp the characteristics of the times and grasp the essence of concealment.

Therefore, in the study of internal control, we must pay attention to the current value management era. Since the common goal of internal control and value management is to maximize the value of enterprises, how to combine them organically, form two "boosting arms" to promote the upgrading of enterprise value, and enhance the core competitiveness of enterprises, is the significance of this study.