SVKM’s

NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

MASTER OF BUSINESS ADMINISTRATION
Program: MBA Trimester: VI
Course: Management Control Systems Code:
(MCS)
Teaching Scheme: Evaluation Scheme:
Classroom Practical/ Tutorials
Credit Continuous Term End Examination
Sessions Group work Evaluation (TEE)
20 60% 40%
Course Rationale:
The world is full of ideas but less of people to implement them. With this saying the spirit of this
course is put forward. This course is largely focused on implementation of strategy. This course
provides knowledge, insights and skills on how a firm’s senior management people’s design and
implement ongoing management systems that are used to plan and control the firm’s performance.
Elements of management control system include strategic planning, budgeting, resource allocation and
transfer pricing.
This course emphasizes equally on the techniques of management control process (e.g. transfer
pricing, budget preparation & management compensation) and behavioral considerations involved in
the use of these techniques (e.g. motivation, goal congruence and superior-subordinate relations).
Broadly speaking this course is divided into three parts viz. management control environment,
management control process and variations in management control.

Course Objectives:
The objectives of this course are to:
1. Make the participants understand the nature of management control systems.
2. Develop analytical skills of the participants with respect to management control environment.
3. Generate ability to analyze issues relevant with management control processes.
4. Sensitize the participants about the variations in management control with respect to variations in
strategy.
5. Sensitize the participants about the variations in management control with respect to service
sector, multinational organizations and projects.

Learning Outcomes:
On successful completion of this course, the participant will be able to:
1. Understand the nature of management control systems.
2. Possess analytical skills with respect to management control environment.
3. Analyze issues relevant with management control processes.
4. Apply variations in management control with respect to variations in strategy.
5. Applyvariations in management control with respect to service sector, multinational organizations
and projects.

Prerequisite(s):
 Financial Accounting: a conceptual understanding of Financial Accounting
 Working Knowledge of Spreadsheets.

Pedagogy:
 Case Discussion

Textbook:
 Management Control Systems,12e, Robert N. Anthony, and V. Govindrajan, McGraw Hill
(herein referred as Text)

Reference Books:
  Management Control Systems –Performance Measurement, 3e, Kenneth A. Merchant and Wim A.
Van Der Stede, FT Prentice Hall(herein referred as KW)
 Managerial Accounting: Creating Value in a Dynamic Business Environment; 10e, Ronald W.
Hilton, and David E. Platt, McGraw Hill Education, India,2013
 Strategic Cost ManagementShank, John K & Vijay Govindarajan, The New Tool for Competitive
Advantage, Simon& Schuster;2008
 Advanced Management Accounting 2e, Robert S.Kaplan, and A.A.Atkinson,Prentice Hall, 1998

Journals:

 Journal of Management Accounting,

 Management Accounting Research ·
 Journal of Management Accounting Research ·
 The Management Accountant

Links to websites:
 https://www.cimaglobal.com
 http://icmai.in

Evaluation Scheme:
 Quizzes/ Internal Class Tests /Pre Class Preparations 20%
 Class Participation/ Case Discussion 20%
 Mid Term Exam 20%
 Term-End Exam 40%
TOTAL 100%

Session Plan:
Session Topic (including subtopics) Learning Outcomes Pedagogical Tool Textbook
Chapters
&
Readings
1 The Nature of Management Understand the nature Case: Textbook:
Control Systems and boundaries of Nucor Corporation Chapter 1
Management Control (A)in Textbook pp Ref book:
Systems. 19 Chapter 1
Or KW
Case:
Private Fitness, Incin
KW pp 20

2 Alternative Forms of Differentiate between Case: Textbook:

Management Controls – alternative forms of Atlanta Home Loans Chapter 3
Results Controls, Action, management controls in KW Ref book:
Personnel/Informal Controls pp 22 Chapter
2,3 KW
3 Behavior in Organizations Analyzing the Case: Textbook:
behavioral factors Nucor Corporation Chapter 3
having an influence on (B) in Text pp 117
Goal Congruence. Or
Case:
Rendell Company in
Text pp 119
4 Responsibility Centers:  Analysis input- Case: Textbook:
Revenue and Expense output relationship. Appex Corp. Chapter 4
Centers  Understanding #491082-PDF-ENG
responsibility Published 1991
centers and its types. Revised 1992
HBS
5 Profit Centers Analysis of issues Case: Textbook:
relevant with North Country Auto, Chapter 5
establishment and Inc.
governance of profit Text pp 201
centers
6-7 Transfer Pricing Analysis of issues Case: Textbook:
relevant with transfer Birch Paper Co. Chapter 6
pricing mechanism. #158001-PDF-ENG
Published 1957
Revised 2003
HBS
8-9 Measuring and Controlling Analysis of assets Case: Textbook:
Assets Employed employed in a firm. Investment Center Chapter 7
Problems (A) & (B)
Text pp 291
10 Strategic Planning Understanding Case: Textbook:
strategic planning and Allied Office Chapter 8
using analytical Products
techniques to Text pp 348
strengthen the
planning.
11 Budget Preparation  Distinguishing Case: Textbook:
budget from a New York Times Chapter 9
strategic plan. Text pp 396
Preparing various
type of budgets.
 Analyzing
behavioral issues
in budget
preparation.
12-13 Analyzing Financial Applying various Case: Textbook:
Performance techniques to analyze Compagnie du Froid, Chapter 10
financial performance S.A.
of a firm. # 197085-PDF-ENG
Published 1997
Revised 2017
HBS
14-15 Performance Measurement Analyzing Case: Textbook:
performance through Vyaderm Chapter
non-financial tools. Pharmaceuticals: The 11
EVA Decision
#101019-PDF-ENG
Published 2000,
Revised 2017
HBS
16 Management Compensation Discussion on nature Case: Textbook:
and impact of Wayside Inns Inc., Chapter
incentive Text pp 567 12
compensation plans.

17 Controls for Differentiated Differentiate controls Case: Textbook:

 Strategies according to the Texas Instruments Chapter
differentiated and Hewlett-Packard 13
corporate and business Text pp 597
level strategies.
18 Special Issues in Analysis of Case: Textbook:
Management Control of management control Piedmont University Chapter
Service Organizations issues which arise in Text pp 650 14
distinct service
provider setups.
19 Special Issues in Analysis of Case: Textbook:
Management Control of management control Hindustan Lever Chapter
Multi National issues faced by Multi Text pp 717 15
Organizations National
Organizations.
20 Special Issues in Analysis of Case: Textbook:
Management Control of management control Modern Aircraft Chapter
Projects issues which have a Company 16
special relevance with Text pp 751
projects.