Online Final Examina,on Name: Ahmad Rabbani / IBA 2018

Score :
Date : 30 June 2021

Lecturer : Arista Atmadja@

Fac./Study : Business and Social Sciences/AVM/

Prg. IBA

Semester/
Year : 4-6/2021
Time : 110 minutes

Management Control System.

I. Examina,on Condi,ons
a. The final exam is opened all resources.
• Plagiarism is not acceptable and leads to fail (such as copy paste from internet is not allowed)
b. In case the answer in hand wri@ng:
• Answer on plain paper A4 size, portrait posi@on.
• Answer using black or dark blue pen, no pencil is allowed.
• The answer shall be converted into picture file (such as screen shot frontaly).
• Write down your name onevery page.
• Write down page number on each page (eg. 1/8, 2/8, 3/8.....)
c. In case the answer is in electronic file (such as computer typing):
• Answer on document file (such as doc, docx, pdf, txt)
• Answer using fontblack color size 12.
II. Down loading and sending the final exam
a. The exam material is to be down loaded fromIULI Repository
Detail address will be sent by invigilator in form of link (see in CHAT BOX)
b. The answer is sentdirectly to the email address announced by invigilator (see in CHAT BOX)
c. Email subject shall follow the following format: [Subject name]_Your_name_Your PSbatch
Example: [Robo,cs_Automa,on2]_John_Doe_MTE2017
d. File name of the final exam answer: [Subject_name]_Your_name_Your PSbatch
Example: [Robo,cs_Automa,on2]_John_Doe_MTE2017
e. Your answer shall be a]ached as email a]achement in one email. If you have more than one file,
you have to a]ach all the files separately (do not zip). Max. total size is 25 MB.

III. Examina,on Regula,on

Chea@ng or dishonest
conduct
a. Chea@ng or dishonest conduct are strictly prohibited.
b. Students found chea@ng or showing dishonest conduct will be failed in the respec@ve subject.
c. Students have to retake the course for the respec@ve subject completely.
d. The invigilator has the right to judge chea@ng or dishonest conduct based upon objec@ve evidence.
Leaving the virtual class during the exam
a. Students have to ask permission to invigilator by wri@ng in “CHAT BOX”.
b. Students may leave the virtual class if they have finished the exam without disturbing others
Dress code
a. Students have to dress appropriately.
b. No wearing hat is allowed.
IV. Emergency
For any technical case (such as internet connec@on) contact Budhi 0818555742 and for any other
emergency case contact Pak Suhendin 08176355081.

This examina@on material has been verified by:

Date: June 28, 2021

File: 1/2 QT 05.06a/ Rev.00

PO Box 150, BSD CPA 15330 IULI – Eco Campus, GOP6

Tel. +62 85212318000 Jl. BSD Grand Boulevard

info@iuli.ac.id BSD City 15345

www.iuli.ac.id Island of Java

Online Final Examina,on Name:

Ques%ons af MCS exam ,

1. Please elaborate the tradi@onal method or old paradigm approach on MCS ac@vi@es by
BOD at company.

2. Please explain MCS controlling huge company by BOD in modern approach and explore
the techniques are using.

3. Give your comments whether we prefer to create huge companies with diversifica@on
with create many sister companies or more focusing in single special business. Give your
arguments.

4. How to manage communica@on or managed effec@vely and efficiently in huge

company such as; Lippo group or Sinar Mas group which are the subsidiaries very in
various businesses, explain on your opinion.

File: 2/2 QT 05.06a/ Rev.00

PO Box 150, BSD CPA 15330 IULI – Eco Campus, GOP6

Tel. +62 85212318000 Jl. BSD Grand Boulevard

info@iuli.ac.id BSD City 15345

www.iuli.ac.id Island of Java

Answers:

1. Tradi@onal method are those which have been used by the companies for a long @me now. A
company used techniques like personal observa@on, sta@s@cal reports, break-even analysis and
many more. Personal observa@on is the most tradi@onal method of control. It is one of those
techniques which enables the manager to collect the informa@on as first-hand informa@on. It
also creates a phenomenon of psychological pressure on the company's employees to perform
in such a manner so as to achieve well their goals as they are aware that they are being
observed personally on their job. Sta@s@cal reports is an overall analysis of reports and data
which is used in the form of averages, percentage, ra@os, correla@on and many more. It presents
useful informa@on to the managers regarding the performance of the company in various areas.



Meanwhile, break-even analysis is a technique used by managers to study the rela@onship
between costs, volume & profits. It determines the overall picture of probable profit & losses at
different levels of ac@vity while analyzing the overall posi@on.


2. Modern approaches of controlling are those which are of recent origin and compara@vely new
in MCS literature. As controlling is one of the most important func@ons of management. It helps
managers close the gap between their organiza@on's actual performance and goals. Modern
approaches shows its status as a system and proved the difference between management
control systems and accoun@ng management. This can reduces the losses and risks for the
company. The experts of management and strategists have developed techniques that
suppor@ng MCS in modern approach.



The techniques that most company used on their MCS ac@vi@es are :



- Return on Investment (ROI)

Return on investment (ROI) can be defined as one of the important and useful techniques. It
provides the basics and guides for measuring whether or not invested capital has been used
effec@vely for genera@ng a reasonable amount of return. ROI can be used to measure the overall
performance of an organiza@on or of its individual departments or divisions. It can be calculated
as net income before or ater tax may be used for making comparisons. The total investment
includes both working as well as fixed capital invested in the company.



- Management Informa,on System

Management Informa@on System is useful for the companies because it control the company's
organiza@on properly as the management needs an accurate informa@on. The informa@on is
collected con@nuously to iden@fy problems and find out the solu@ons. MIS needs informa@on
about the internal working of the company's organiza@on and the external environment. It
collects data, process it and provide it to the management.



- Management Audit

Management audit refers to a systema@c appraisal of the overall performance of the
management of an organiza@on. The purpose is to review the efficiency and effec@veness of
management & to improve its performance in future periods. 



 - PERT & CPM

PERT (programmed evalua@on & review technique) & CPM (cri@cal path method) are important
network techniques that useful in planning and controlling. These techniques, help in
performing various func@ons of management like planning; scheduling and implemen@ng @me-
bound projects involving the performance of a variety of complex, diverse and interrelated
ac@vi@es.


3. In my opinion, I would prefer to create a huge company with diversifica@on by crea@ng many
sister companies. Because diversifica@on allows the company for more variety and op@ons for its
products and services as it used by companies to help them expand into markets and industries
that they may haven't explored. If diversifica@on did well correctly, it provides a tremendous
boost to the company's brand image and its profitability and will appeal new customers in these
new markets. By diversifying the business, the company can protect itself from compe@ng with
companies. 



If a company is only focus in single special business. It won't guarantee the longevity of the
popularity of the company's products and services. The products and services may created a
hype among the customers but it won't for long. A be]er products and services with be]er
quality will be launched at the some @me ater that and then customers will move their appeal
to the new products and services. Unless if the company did a innova@on to create or expands
their crea@vity for their new development of their products and services with some upgrades
that might will be increase the customer's loyalty.


4. Every companies especially a large company needs a great internal communica@on in order for it
to func@on effec@vely and efficiently. It needs a proper strategy so the company can deliver the
communica@ons very well. When delivering the informa@on, make sure to be truthful and as
complete as possible. Be transparent and let the colleagues from the company know if there are
details that might simply cannot share due to confiden@ality. Even if they haven't processing the
informa@on properly, they will appreciate it honesty and likely be more suppor@ve and be more
engaged. The company also should focus on the consistency, align the informa@on with the
company's mission, vision and values. Sharing the reason behind a decision or change in
direc@on helps the colleagues understand the reason behind the decision. This builds trust and a
strong partnership mentality. In some cases, like in a company reorganiza@on, it can be helpful
to hold regular mee@ngs with the companies middle management to update them on
developing changes.