Management Control Systems

Program Credit Course Code : MBA : 3 : SL GM 601 Class of Sessions : : 2011 33

Third Semester

Objective
The objective of the course is to give students a broad understanding of the control process & reporting systems and their applications to real life business situations. REFERENCE BOOKS Management Control Systems Management Control Systems Management Control Systems : Using Adaptive Systems to Attain Control, 2nd e Management Control Systems : Text and Cases Management Control Systems Detailed Syllabus Introduction to Management Control Systems: Nature of Management Control - Purpose of Management Control Systems - The Organizational Context of Managerial Control Systems - The Formal Systems - The Informal Systems - The Subsystems and the Components of Control Systems – Use of Information Technology on Control Systems Designing the Control Process and Managerial Controls: Introduction - Schools of thoughts in control (contingency approach, Cybernetic Approach, Management control process approach) - Designing Management Controls - The Control Process Hierarchy - Communication and Reporting Structures in the Control Systems. Key Success Variables and Measures of Performance: Identification of Key Success Variables - Key Success Variables and the Control Paradigm - Performance Indicators - EVA, Profitability measures. Design, Style and Culture of Control Systems: Managerial Styles and the Design of Control Systems - Corporate Culture and Control Systems - Establishing a Customer-Focused Culture. Organization Structures for Adaptive Control: Different types of organization structures and control implications – Role of Controller in different organizational structures – Structural requirements for an Adaptive Organization. Autonomy, Responsibility and Performance Measurement: Divisional Autonomy - Style and Processes of Management - Responsibility Structure - Overall Effectiveness Measures - Standard Cost Center - Revenue Center Profit Center - Investment Center - Performance Measurement of Decentralized Operations - Inter profit - Center Relations. Tools for Management Control: Budgeting as a control tool – Analyzing and reporting financial performance – analysis of variances - Target Costing - Activity based costing- (simple numerical examples to be used to explain the above tools) - Quality Control tools (focus on how they act as tools for operational control) Management Control in Multinational Corporations: Control Issues in the Multinational Corporation - Cultural differences and resulting structural design problems - Transfer Pricing - Foreign Exchanges Management. Management Control in Non-Profit Institutions: Introduction - The Mission of Non-Profits institutions - Key Success Factors - Performance Measures - Management Style and Culture - Formal Control Processes AUTHOR / PUBLICATION Robert Anthony and Vijay Govindarajan Special Indian Edition –TMH IUP Maciariello, Joseph A / Kirby, Calvin J . Prentice-Hall, India Anthony, Robert N / Deardon, John. Irwin Inc Dutta, Abhijit . Kalyani Publishers

Detailed Syllabus – The Class of 2011

1

Circumstances Leading to Development of Management Audit (including various types of functional audits) . Cost Audit.Management Audit Process Financial Audit.Implications for Management Control in service organizations – Control systems in Financial Institutions .Weaknesses Revealed by Management Audit .Management Control in Service Organizations: Introduction .Professional Service Organizations and Hospitality Sectors Management Control in Projects: Nature of Planning and Control in Projects .com’s Inventory Management Consumer-driven Six Sigma at Ford The AXA Way – Improving Quality of Services The Millau Viaduct Project – Creating an Engineering Marvel Xerox PARC – Innovation without Profit? Human Resource Management System Reforms at Matsushita Outsourcing IT – The GM Way CRM Implementation Failure at Cigna Corporation Governance and Control at AXA Ping Fu – Inspiring Entrepreneurship Source: Case studies in Management Control Systems Detailed Syllabus – The Class of 2011 2 . Cases Faculty will be handling eight or more cases Jack Welch and Jeffrey Immelt – Continuity and Change in Strategy. and Culture at GE Infosys’ Global Delivery Model Some HR Dilemmas in Information Technology and Business Process Outsourcing Firms EVA and Compensation Management System at Tata Consultancy Services Balanced Scorecard Implementation at Philips Hollinger International – The Lord Black Saga BP: Putting Profits before Safety? Corporate Governance at Ahold P&G’s Brand Management System Global Supply Chain Management – Best Practices at Li & Fung Limited Amazon.control environment in projects – reporting – project auditing – Evaluation of projects Management Audit: Introduction. Internal Control/Audit and Management Audit – Parameters of evaluating of management audit – Social and environmental audits. Style.

Responsibility and Performance Measurement Tools for Management Control Control of Multinational Operations Control of Non-profit Institutions Control of Service Organizations Management Control of Projects Management Audit Total Sessions No. of Sessions 2 2 2 3 2 4 5 4 2 2 2 3 33 Detailed Syllabus – The Class of 2011 3 . Style and Culture of Control Systems Organization structure for Adaptive Control Autonomy.Suggested Schedule of Session Topic Introduction to Management Control Systems Designing the Control Process and Managerial Controls Key Success Variables and Measures of Performance Design.