Management Control Systems in a

Service Organizations

Characteristics

Absence of Inventory Buffer Difficulty in Controlling Quality Labour Intensive Multi-Unit Organizations

Classification

Professional Organizations Financial Service Organizations Health Care Organizations Non-Profit Organizations

Management Control Systems

Pricing Profit Center & Transfer Pricing Strategic Planning & Budgeting Control of Operations Performance Management & Appraisal

PSG Special Characteristics

Goals Professionals Output and Input Management Small Size Marketing

Financial Service Organization

Financial Service Organization

Commercial Banking Investment Banking Retail Brokerage Insurance

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Financial Service Organizations

Huge Economic Contribution Use Of Information Technology Need for Control Systems New Forms of Instruments New Research

FSO- Special Characteristics

Monetary Assets Time Periods of Transactions Risk and Reward Technology

Health Care Organizations

Health Care Organizations---special characteristics

Difficult Social Problems Change in Mix of Providers Third Party Payers Professionals Quality Control

HCO-

Management Control Systems

Budget Preparation Strategic Planning Acquiring New Equipments Quick availability of Information Financial Performance Identifying Variances

Non Profit Organizations

What are Non-Profit Organizations ?

NPO- Special Characteristics

Absence of Profit Measure Contributed Capital Fund Accounting Governance

NPO- management control systems

Product Pricing Strategic Planning Budget Preparation Operation & Evaluation

Case Discussion

Harlan Foundation

Metropolitan Bank