Premium Essay

Management Control Systems, Chapter 1-4

In: Business and Management

Submitted By nihasch89
Words 2231
Pages 9
Summaries Management Control
-------------------------------------------------
Session 1: Chapters 1,2,3 & 4
Chapter 1 Management and control

Management control – all devices or systems managers use to ensure that behaviors and decisions of their employees are consistent with the organizations objectives and strategies (MCS)

* Back end of management process * Involves managers taking steps to help ensure that employees do what is best for the org.

Primary function of MC: to influence behaviors in a desirable way
Benefit of MC: increased probability that organization’s objectives will be achieved
Addressing types of problems: theft, fraud, unintentional error, etc
Disadvantageous of MC: suppress initiative, creativity and innovation
Control System: 1) Strategic Control – Is our strategy (still) valid or do we need to change it and if, how? Focus on the external tools. Management Control – Are our employees likely to behave accordingly? (do they understand what’s expected, and are they capable and willing to do so, if not how can we change it?) Focus on the internal mechanism.

Causes of MC problems and needs for control:
Can happen in any kind of combination simultaneously
Can happen in any kind of combination simultaneously

1. Lack of direction – some employees perform poorly simply because they do not know what the organization wants form them. Management control therefore involves informing employees.

2. Motivational problems – individuals are self-interested or effort averse. Employees sometimes act in their own personal interest at the expense of their organization’s interest. The role of MCs in motivating employees to perform well involves incentives in a result control context.

3. Personal limitations – employees can lack the requisite intelligence, training, experience or knowledge, even though they know what is…...

Similar Documents

Premium Essay

Capstone

...OPERATIONS MANAGEMENT Courses with numerical and conceptual focus Course Planner 16031::Gurpreet Kaur Lectures 3.0 Tutorials Practicals Credits 1.0 0.0 4.0 TextBooks Sr No T-1 Title Operations Management Reference Books Sr No R-1 R-2 Other Reading Sr No OR-1 OR-2 OR-3 OR-4 OR-5 OR-6 OR-7 OR-8 OR-9 OR-10 OR-11 OR-12 Journals articles as Compulsary reading (specific articles, complete reference) The four things that a service Business must get right HBR Article , Bang & Olufsen Design Driven Innovation : HBR , Smart Product Design : HBR , Mishina, Kazuhiro. Toyota Motor Manufacturing, U.S.A., Inc. HBS Case No. 9-693-019. Harvard Business School Publishing, Boston, 1995. , Hammond, Janice H. Barilla SpA (A). HBS Case No. 9-694-046. Harvard Business School Publishing, Boston, 1994. , Latour, Almar. Nokia Handles Supply Shock with Aplomb as Ericsson of Sweden Gets Burned. The Wall Street Journal. Dow Jones & Company, Inc., 2001. , National Cranberry Cooperative HBS #688122. From Case Map , John Crane UK Ltd Case : The CAD CAM Link . HBS #691021,24p , To Move or not to Move .Case of Cathay Pacific Airways . University of Hong Kong HBS #HKU003,22p , Note on Quality: The Views of Deming, Juran, and Crosby HBS .687011 , Process Control at Polaroid , HBS, #693047 , LL Bean Item Forecasting and Inventory Management HBS, #893003, 5p , Johson Control Automotive Systems , HBS,#69308623p , Title Operations Management Concepts, Techniques & Applications Operations Management Author......

Words: 3895 - Pages: 16

Premium Essay

Economic Growth

...Bangalore University Bachelor of Business Management (New Scheme) SEMESTER SCHEME OF EXAMINATION UNDER SEMESTER : BBM COURSE SEM NO. PAPER NO. 1.1 TITLE OF THE PAPER LECTURE HOURS 04 MARKS UE 90 RM 10 TOTAL MARKS 100 I 1.2 1.3 1.4 1.5 1.6 2.1 II 2.2 2.3 2.4 2.5 2.6 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4.1 4.2 4.3 4.4 4.5 4.6 4.7 5.1 5.2 5.3 5.4 5.5 5.6 III IV V LANGUAGE: KANNADA/SANSKRIT/URDU/TAMIL/ TELUGU/ADDITIONAL ENGLISH/ MARATHI/HINDI ENGLISH BUSINESS ECONOMICS FUNDAMENTALS OF ACCOUNTING BUSINESS MANAGEMENT BUSINESS MATHEMATICS TOTAL LANGUAGE: KANNADA/SANSKRIT/URDU/TAMIL/ TELUGU/ADDITIONAL ENGLISH/ MARATHI/HINDI ENGLISH BUSINESS STATISTICS FINANCIAL ACCOUNTING ORGANISATIONAL BEHAVIOUR BUSINESS ENVIRONMENT TOTAL BUSINESS COMMUNICATION HUMAN RESOURCE MANAGEMENT MARKETING MANAGEMENT CORPORATE ACCOUNTING SERVICES MANAGEMENT INTERNATIONAL BUSINESS INDIAN CONSTITUTION TOTAL BUSINESS RESEARCH METHODS BUSINESS LAW COST ACCOUNTING FINANCIAL MANAGEMENT PRODUCTION & OPERATIONS MANAGEMENT LAW AND PRACTICE OF BANKING COMPUTER FUNDAMENTALS TOTAL INCOME TAX STRATEGIC MANAGEMENT MANAGEMENT ACCOUNTING COMPUTER APPLICATION IN BUSINESS PROJECT MANAGEMENT ENTREPRENEURIAL DEVELOPMENT TOTAL 04 04 04 04 04 24 04 90 90 90 90 90 540 90 10 10 10 10 10 60 10 100 100 100 100 100 600 100 04 04 04 04 04 24 04 04 04 04 04 04 04 28 04 04 04 04 04 04 04 28 04 04 04 04 04 04 24 90 90 90 90 90 540 90 90 90 90 90 90 90 630 90 90 90 90 90 90 90 630 90 90 90 90 90 90......

Words: 19726 - Pages: 79

Premium Essay

Accounting Information Systems: Course Objectives, Description, Topics, and Assignments

...ACCOUNTING INFORMATION SYSTEMS: COURSE OBJECTIVES, DESCRIPTION, TOPICS, AND ASSIGNMENTS ACCT-5600 DR. NICOLAOU Fall 2010 COURSE STRUCTURE In the modern world, the majority of accounting entries occur electronically. Accountants and auditors store information in databases, managed by enterprise systems that have a set of controls to ensure that transactions and record keeping happen as expected. E-business Web sites handle transactions automatically, with the accounting data going directly into the necessary databases. The concept of a paper trail has become a bit of a misnomer; today, because of accounting information systems, there is often no paper involved at all; however, it is important to establish the flow the data in different areas of the organization, or audit trail, so as to properly exercise internal controls. AISs help in this purpose. At the outset of this course, you will learn the basics of accounting information systems and business processes. Next, you will learn about database management systems, and the design of various database models. Finally, you will learn about how to use internal controls effectively for risk management, as well as the requirements for business reporting. After completing this course, you should not only have a clear idea of how accounting information systems work, but you should also be prepared to design and configure them to meet the record-keeping and risk management requirements of the organization. In......

Words: 6838 - Pages: 28

Premium Essay

Management Control Systems

...Management control systems Solutions to Chapter 16 questions (a) See Chapter 16 for the answer to this question. In particular, your answer should stress: (i) The need for a system of responsibility accounting based on a clear definition of a manager’s authority and responsibility. (ii) The production of performance reports at frequent intervals comparing actual and budget costs for individual expense items. Variances should be analysed according to whether they are controllable or non-controllable by the manager. (iii) The managers should participate in the setting of budgets and standards. (iv) The system should ensure that variances are investigated, causes found and remedial action is taken. (v) An effective cost control system must not be used as a punitive device, but should be seen as a system that helps managers to control their costs more effectively. (b) Possible problems include: (i) Difficulties in setting standards for non-repetitive work. (ii) Non-acceptance by budgetees if they view the system as a punitive device to judge their performance. (iii) Isolating variances where interdependencies exist. (a) See ‘Planning’, ‘Motivation’ and ‘Performance evaluation’ in the section on the multiple functions of budgets in Chapter 15 for the answer to this question. The answer should emphasize that the role of motivation is to encourage goal congruence between the company and the employees. (b) See ‘Conflicting roles of budgets’ in Chapter 15 for an explanation of how...

Words: 6086 - Pages: 25

Premium Essay

Managenment

...Economics | ACCT 4250-01 Advanced Management Accounting (3,0,0) MWF 1:30-2:20 PM A&E 208 Instructor: Dr. Laura Jean Kreissl Office: IB 2060 Office Hours: please check office door Email: lkreissl@tru.ca Email is strongly recommended over voicemail as it is checked more frequently Phone/Voice Mail: 250-852-7675 Last Updated: November30, 2015 Calendar Description Building on ACCT 3250: Intermediate Management Accounting, students explore the integrative and interdisciplinary role of management accounting and its contribution to the strategic management process and the provision of quantitative and non-quantitative information for planning, control, and decision making. Topics include management control systems; results controls, action, personnel and cultural controls; control system tightness; control system cost; designing and evaluating management control systems; financial responsibility centers including transfer pricing; planning, and budgeting; incentive systems; financial performance measures; the myopia problem; uncontrollable factors; corporate governance; and ethical issues. | Educational Objectives/Outcomes Upon completing this course, students will be able to: 1. Locate the role of Management Control Systems (MCS) in both strategy and operations. 2. Describe results control and its applications. 3. Distinguish indirect controls from the direct controls based on action and personnel/culture. 4. Determine whether an......

Words: 7415 - Pages: 30

Free Essay

Re: Target Jbims.. Dream Team 2012.. Do You Have It in You...

...CSE- 401 DISTRIBUTED SYSTEMS [3 1 0 4] 1. Distributed System Models: Introduction , Examples , Architecture models , Fundamental models (1.1,1.2,1.4, 2.1-2.3 of Text1 ) ..2hrs 2. Interprocess Communication, Distributed Objects and Remote Invocation: Introduction , External data representation and marshalling, Communication models, Communication between distributed objects , Remote procedure call Case study: Interprocess communication in UNIX, Java RMI . (4.1-4.6, 5.1-5.5 of Text1) ..6hrs 3. Operating System Introduction , Operating system layer, Processes and threads, Communication and invocation, Architecture (6.1-6.6 of Text1) ..4hrs. 4. Distributed File Systems and Name Services: Introduction , File service architecture, Name services, Domain Name System, Directory and directory services. Case study: Sun network file system, Global name service. (8.1-8.3, 9.1-9.4 of Text1) …6hrs 5. Synchronization: Clock Synchronization, Physical clocks, Logical clocks, Global state (5.1-5.3 of Text2) ..5hrs 6.......

Words: 5050 - Pages: 21

Premium Essay

I Do Not Know

...A Framework for IT Governance in Small Businesses by Herman Koornhof A FRAMEWORK FOR IT G O V E R N A N C E by IN SMALL BUSINESSES Herman Koornhof TREATISE Submitted for the partial fulfilment of the requirements for the degree MAGISTER TECHNOLOGIAE in Business Information Systems in the FACULTY ENGINEERING, BUILT ENVIRONMENT OF THE AND INFORMATION TECHNOLOGY of the N E L S O N M A N D E L A M E T R O P O L I T A N U N I V E R SI T Y Supervisor: Prof. Rossouw von Solms January 2009 ii Declaration I, Herman Koornhof, hereby declare that: • • • The work in this treatise is my own work. All sources used or referred to have been documented and recognised. This treatise has not previously been submitted in full of partial fulfilment of the requirements for an equivalent or qualification at any other recognised educational institution. higher Herman Koornhof iii Acknowledgements I would like to express my gratitude to the following people: • My love, Jenny, for your love and understanding during the past year. Without your encouragement and inspiration this work would not have been possible. • • My family and friends for your interest and support. My supervisor, Prof. Rossouw von Solms, for your guidance and advice, and your detailed and constructive comments. • To Him who is able to do immeasurably more than all we ask or imagine, according to his power that is at work within......

Words: 36563 - Pages: 147

Premium Essay

Quality Manual

...Mark Kaganov The Perfect Manual A Guide to Lean Management Systems ISO 9001:2008 ISO 13485:2003 ISO 14001:2004 BS OHSAS 18001:2007 and other standards Seventh edition QW Enterprises, LLP, a fictional company referenced in this book, does not have any association with any other company that may carry the same name. © 2009 Quality Works All rights reserved. No part of this book may be reproduced in any form or by any means without permission in writing from the publisher, except as defined in the License Agreement. The Perfect Manual 07 Published by Quality Works www.quality-works.com The Perfect Manual 1 Chapter 1 Foreword Chapter 1 – Foreword Page 1 of 90 The Perfect Manual 1.1 Table of Contents 1  Chapter 1 Foreword .................................... 1  Table of Contents ............................................................ 2  Introduction ...................................................................... 4  About the Author ............................................................. 6  ISO – Brief Overview ....................................................... 8  The History of Quality .................................................... 10  Why We Need ISO 9001 ............................................... 13  How to Work With This Electronic Book ........................ 15  2  Chapter 2 Quality Manual 101 ................... 18  2.1  What is a Quality Manual? ............................................. 19  2.2  Quality Manual – Two......

Words: 13933 - Pages: 56

Free Essay

Management Accounting

...GSU MBA 8115, Syllabus, Aderhold Room 204, 4:30-7pm, Wednesday, Spring, 2010 MANAGEMENT ACCOUNTING This course introduces you to a select set of topics on managerial decision-making and control, including basic cost concepts, inventory process systems, budgeting, performance measures, segments and transfer pricing. We will examine the current practices of these elements of managerial control in decentralized business organizations and conceptual issues related to designing effective managerial decision-making and control systems. The general aim of this course is to help you develop a basic but solid understanding of how management systems function, and to help you to develop a conceptual framework for critically analyzing managerial control systems. Students are expected to recognize and uphold standards of intellectual and academic integrity. The University Policy on Academic Honesty is explained in detail in the student handbook On Campus and is available online at www.gsu.edu/oncampus. The course syllabus and class schedule provides a general plan for the course; deviations may be necessary. Attendance – Each student is expected to attend all scheduled class meetings for the entire duration of the class. Most students will find MBA 8115 to be very demanding. Poor attendance will almost certainly result in poor course performance. Exams – There will be three exams, each covering specified chapters. Exams may contain any content contained in the reading......

Words: 1324 - Pages: 6

Premium Essay

Case Study

...06_0789735733_ch02.qxd 4/5/07 1:29 PM Page 63 2 CHAPTER TWO IT Governance This chapter helps you prepare for the Certified Information Systems Auditor (CISA) exam by covering the following ISACA objectives, which includes understanding the role IT governance plays in providing assurance. The assurance structure starts at the top with senior management and continues downward through the organization. This includes items such as the following: Tasks Evaluate the effectiveness of IT governance structure to ensure adequate board control over the decisions, directions, and performance of IT so that it supports the organization’s strategies and objectives. Evaluate the IT organizational structure and human resources (personnel) management to ensure that they support the organization’s strategies and objectives. Evaluate the organization’s IT policies, standards, and procedures; and the processes for their development, approval, implementation, and maintenance to ensure that they support the IT strategy and comply with regulatory and legal requirements. Evaluate the IT strategy and the process for its development, approval, implementation, and maintenance to ensure that it supports the organization’s strategies and objectives. Evaluate monitoring and assurance practices to ensure that the board and executive management receive sufficient and timely information about IT performance. Evaluate management practices to ensure compliance with the......

Words: 14503 - Pages: 59

Premium Essay

Accmiderm

...Grade Details Page: 1 2 1. Question : (TCO 1) According to the textbook author, potential investors need information that is: Student Answer: relevant and reliable. fair and future-oriented. accurate and truthful. audited and complete. Instructor Explanation: Chapter 1 Points Received: 0 of 4 Comments: 2. Question : (TCO1) The largest organization of professional accountants in the United States is the: Student Answer: Financial Accounting Standards Board. Securities and Exchange Commission. American Institute of Certified Public Accountants. Auditing Standards Board. Instructor Explanation: Chapter 1 Points Received: 4 of 4 Comments: 3. Question : (TCO 1) The acronym GAAP stands for: Student Answer: generally acceptable authorized pronouncements. government authorized accountant principles. generally accepted accounting principles. government audited accounting pronouncements. Instructor Explanation: Chapter 1 Points Received: 4 of 4 Comments: 4. Question : (TCO1) The going-concern concept of accounting: Student Answer: enables accountants to ignore the effect of inflation in the accounting records. holds that the entity will remain in operation for the foreseeable future. maintains that each organization or section of an organization stands apart from other......

Words: 2249 - Pages: 9

Premium Essay

Final Exam

...exams Chapter 9 Introduction to internal control systems Internal controls: the controls established to protect the assets of an organization. Internal control: describes the policies, plans, and procedures implemented by the management of an organization to protect its assets, to ensure accuracy and completeness of its financial information, and to meet its business objectives. Four objectives of internal control system: 1. Safeguard assets, 2. Check the accuracy and reliability of accounting data, 3. Promote operational efficiency, 4. Enforce prescribed managerial policies. Sarbanes Oxley Act of 2002 piece of legislation with respect to internal controls Section 404: reaffirms management is responsible for establishing and maintaining an adequate internal control structure. 1992 Coso report: established common definition of internal control for assessing control system, as well as determined how to improve controls. An internal control system should consist of the five components: 1. The control environment 2. Risk assessment 3. Control activities 4. Information and communication 5. Monitoring Control environment: foundation for all other internal control components and provides discipline and structure. Top management oversight, integrity, and ethical principles that guide the organization Risk assessment: identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and implement only those controls......

Words: 1409 - Pages: 6

Premium Essay

Grey

...The summary of Management Control Systems – Kenneth A. Merchant [Prentice Hall] Summarized by Mooyoung Son Linkoping University SMIO 2009 http://cyworld.com/zekison The summary of Management Control Systems – Kenneth A. Merchant [Prentice Hall] Summarized by Mooyoung Son Linkoping University SMIO 2009 http://cyworld.com/zekison Chap 1 : MANAGEMENT AND CONTROL 1) Causes of Management -Lack of Direction -Motivational Problems -Personal Limitation 2) Avoidance -Activity elimination : Eliminate what is not working properly -Automation -Centralization -Risk Sharing Chapter 2 SECTION II 3) Result Control : Preventive type Control Helps Mgr to address strategy, org, employees are performing - Steps : 1. Define Performance dimension 2. Measure Performance 3. Setting Target 4. Provide Reward Requirement for Effective Result control : - Knowledge of desired result : Org should know what result are desired - Ability to influence desired result : Employee have influence on result (Controllable) -Ability to measure Controllable result effectively : Org can measure result effectively (Measurable)  Result measure should be : Precise, Objective, Timely, Understandable Chapter 3 4) Action Control : To ensure employees act in org’s best interest a. Form of Action control - Behavioral constraints – Negative Form (You can’t do this You can’t do that) - Pre action Review – Scrutiny(详查정밀조사) of action plan (What will they do?) - Action Accountability – (의무義務) Hold employees for action......

Words: 5664 - Pages: 23

Premium Essay

Adms

...School of Administrative Studies Faculty of Liberal Arts and Professional Studies York University Fall 2013 Course Outline AP/ADMS 4552 3.0 Section A and B Information Systems Audit Term: Fall 2013 COURSE: AP/ADMS 4552 3.0 Sections A and B Information Systems Audit Schedule First day of class: Section A: Wednesday, September 11, 2013 11:30 AM – 2:30 PM, Location: HNE 030 Section B: Thursday, September 12, 2013 7:00 PM – 10:00 PM, Location: HNE 032 REQUIRED COURSE TEXT/READINGS: • Hall, James A., (2011), Information Technology Auditing, 3e, Mason: South-Western Cengage Learning (Referred to as “IT Audit Text” in the Readings List for each class) • Additional material as listed in the course outline. This includes articles referenced by links, readings from books that were required for prerequisite courses, cases and assignment details posted on our web site. • CICA Assurance Handbook, as available online from York University library, (referred to as “Handbook” in the Readings List for each class). Selected readings are from: [Note this book is available on reserve at the business library in the Schulich building if you do not have a copy.] • Arens, A., R. J. Elder, M. S. Beasley and I. B. Splettstoesser-Hogeterp. 2011. Auditing: The Art and Science of Assurance Engagements, Canadian 11th Edition, Pearson Prentice Hall: Toronto. (Referred to as “Audit Text” in the Readings List) References for the 12th Canadian...

Words: 3433 - Pages: 14

Premium Essay

Booger

...Guide to the Project Management Body of Knowledge (PMBOK® Guide) m START m CHAPTER 7 m CONTENTS m CHAPTER 8 m LIST OF FIGURES m CHAPTER 9 m PREFACE m CHAPTER 10 m CHAPTER 1 m CHAPTER 11 m CHAPTER 2 m CHAPTER 12 m CHAPTER 3 m APPENDICES m CHAPTER 4 m GLOSSARY m CHAPTER 5 m INDEX m CHAPTER 6 EXIT A Guide to the Project A Guide to the Management A Guide to the Project Body of Project Management Knowledge Management Body of (PMBOK Guide) Body of KnowledgeE KnowledgeE L L ® P MP AM SA S 2000 Edition Project Management Institute Newtown Square, Pennsylvania USA ❍ NAVIGATION LINKS ❍ ACROYMNS ❍ ACRONYMS LIST LIST ❍ ACROYMNS LIST Library of Congress Cataloging-in-Publication Data A guide to the project management body of knowledge (PMBOK® guide).--2000 ed. p. cm. Includes biobliographical references and index. ISBN 1-880410-22-2 (alk. paper)--ISBN 1-880410-23-0 (pbk. : alk. paper) 1. Industrial project management. I. Title: PMBOK® guide. II. Project Management Institute. HD69.P75 G845 2001 658.4’04—dc21 00-051727 CIP A Guide to the A Guide to the Project Project Management Management Body of Body of KnowledgeE L KnowledgeE PL ISBN: 1-880410-23-0 (paperback) ISBN: 1-880410-22-2 (hardcover) ISBN: 1-880410-25-7 (CD-ROM) MP AM SA S Published by: Project Management Institute,......

Words: 88066 - Pages: 353