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Management Control Systems in a

Service Organizations


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


‡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


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


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