First of all, the ruthless performance management system leads to the loss of vitality of internal control. Of course, there is the impact of the national macro housing policy, but there are also problems in the management of the enterprise itself. Enterprise management of Evergrande real estate. As the first real estate enterprise under Evergrande group, founder Xu Jiayin advocated the ruthless management system of Evergrande real estate, focusing on performance rather than sympathy. Therefore, the first and most important link of controlling employees is to be strict, which is almost cruel. From the group's senior management to grass-roots employees, they have participated in the performance appraisal system. Managing performance is everyone's job. Senior managers need to implement strategies to achieve corporate goals through performance management, while middle managers need to better complete tasks through performance management. For employees, the reason of performance management is conducive to the realization of personal goals and career development plans. In short, performance management is everyone's task. At first, performance management is the most basic management system of enterprises, and it is also an effective and mature management mode. However, in Evergrande real estate group, whether to achieve the goal of performance management has become the only goal of each employee and management. Evergrande's boss once offered a reward of 2 million yuan, which was a goal on the football field, and some tragic cases of being fined 200000 yuan for minor work mistakes. The ultimate reward and punishment system is the extreme development model of performance management system. With the passage of time, employees' sense of belonging decreases and their work motivation is insufficient, which leads to the rigidity of internal management and the natural obstruction of the enterprise.

Second, the company's senior management made strategic mistakes and devoted too much personal color. Xu Jiayin, a man, has to say that he started the cause of Evergrande. During his tenure as chairman of Evergrande group, Evergrande has made remarkable achievements. For example, in July 2019, Evergrande ranked 138th among the Fortune 500 in 2019. On August 22, 2019, the "top 500 Chinese private enterprises" was released, and Evergrande ranked fifth. One belt, one road initiative, ranked thirty-second in China's top 100 companies. In December 2019, Evergrande Real Estate Group Co., Ltd. was selected as one of the top 100 brands at the 2019 China brand power conference. Xu Jiayin's management mode advocates performance first. What does performance depend on? This depends on the development of new businesses and the rise of layers of buildings. These are the performance of employees. He is a gambler and a man who dares to take risks. With the help of adventure, he established his own business empire. Risk bearing should be an early strategy in the field of enterprise expansion. However, after the enterprise stabilizes, it will also take risks blindly, which is likely to lead to the decline of enterprise performance and market share. Evergrande has President, chairman, general manager and other positions. These positions are obviously responsible for the real estate development of provinces and cities, but they have only one tone, that is, continuous expansion, unconditional implementation of the president's strategic decision, and finally washed away in the torrent.

Third, blind expansion, wanton promotion, consumption of inventory, borrowing money to build houses, arrears of manufacturers' funds, and communication between the two sides failed. Evergrande real estate faces a debt risk of more than 300 billion yuan. It demolished the east wall to make up for the west wall and blindly purchased land to expand and build buildings. After the land development and sale of land a is completed, the profits obtained shall be immediately used to taste and repay the arrears of land B. The capital chain has been in tension. Finally, the capital chain broke and the funds were frozen by the bank. Manufacturers and companies mistakenly believe that this is the same. Large real estate developers have a great career and are able to repay their debts. Unexpectedly, Evergrande's real estate capital chain was broken and they could not recover. They can only sell assets to pay off their debts. However, in the context of the current epidemic and the new national housing policy, no one dares to take over Evergrande's huge debt, so they can only wait and see on both sides and have no better solution.

Fourth, enterprise fund management. As mentioned above, Evergrande real estate group's serious liabilities are due to its poor fund management and the lack of strict and scientific financial management system, so the fund management risk is relatively large. It usually depends on the capital turnover between loans and projects. Once there is a debt crisis, banks will urge funds and encounter project capital turnover. If you don't open it, you will be in financial trouble, either facing debt collection and salary collection, or facing bankruptcy and bankruptcy. You can only face the liquidated mortgage.

Question:

What sorts of management theories that are related to the Evergrande real estate group management issues as highlighted above? relate in proper discussion how the theories is related.