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MANAGEMENT CONTROL SYSTEMS

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By: Udevir Singh(1103) Mrugank Mistry(1118) Jignesh Patel(1136)

INTRODUCTION
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ITC is one of India's foremost private sector company. The ancient Imperial Tobacco Company of India Limited is ITC Limited today, which was incorporated in August 24, 1910. Spread over more than 60 locations across India. Business segments:
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Hotels Paperboards & Stationary Packaging, Agri-Business Packaged Foods & Confectionery Information Technology Branded Apparel Personal Care Safety Matches Cigarettes

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ORGANIZATION STRUCTURE (THREE-TIER GOVERNANCE STRUCTURE) 3 .

Also provides direction and exercises appropriate control to ensure that the Company is managed in a manner that fulfils: stakeholders’ aspirations  societal expectations.  4    .BOARD OF DIRECTORS  Protect and enhance shareholder value Ensures that the Company has clear goals relating to shareholder value. Sets strategic goals and seeks accountability for their fulfillment.

5 .CORPORATE MANAGEMENT COMMITTEE  Strategic management of company’s business as per the directions of Board.

Function is to realize tactical and strategic objectives in accordance with Board approved plan.DIVISIONAL MANAGEMENT COMMITTEE   Also known as strategic Business Unit. 6 .

efficiency.Advantage:  Strategic supervision on behalf of the shareholders by the Board. Through Division of Business: Company can remain free from collective strategic responsibilities.   7 .  Effectiveness of the business.  Focuses on enhancing the quality.

Composition  Comprises five Non-Executive Directors. 8 . four of whom are Independent Directors.COMPENSATION MANAGEMENT Remuneration committee   Recommends to the Board the compensation terms of Executive Directors and the senior most level of management Responsibility for administering the Employee Stock Option Schemes.

promotion. age. race. disability. Promotes diversity and offers equality of opportunity to all employees. religious. religion. access to training. gender. marital status or affiliation with a political. color.   ITC does not engage in or support direct or indirect discrimination in recruitment. Application of the non-discrimination employment policy rests with the Unit Head 9  . ancestry. compensation. termination or retirement based on caste.CONTROL SYSTEMS Policy to Prevent Discrimination at Workplace  Acknowledges that every individual brings a different and unique set of perspectives and capabilities to the team. or union organization or minority group.

Helps to build. Policy is communicated to all employees through induction programmes. Employees are not discriminated against for exercising this right. Right to organize themselves into interest groups independent from supervision by the management.Policy on Freedom of Association   ITC's culture relies on building partnerships and interdependence. policy manuals and intranet portals. sustain and strengthen harmonious employee relations in the organization. Each ITC Unit has appropriate systems to ensure compliance with the Policy. 10     .

and through the intranet portals. 11     . Promotes a culture of partnership. monitored by the Unit Head. All major changes involving work processes. manning norms and other productivity linked issues are carried out after discussions with the employees and the recognized unions.Policy on Information and Consultation on Changes  Support an employee engagement process. Shared with employees at all units through a series of formal communication meetings.

 12 . which ruled India from time to time.ITC HOTELS  ITC’s hotel division was launched on October 18. Joint venture with the Sheraton Corporation to strengthen its international marketing base. 1975.   Each of the chain’s hotels pays architectural tribute to ancient dynasties. Distinctive logo of hands folded in the traditional Namaste.

STRATEGIC BUSINESS UNIT “ITC – FOUR BRANDS OF HOTELS”  ITC Hotels .Luxury Collection WelcomHotel | Sheraton Fortune Hotels WelcomHeritage    13 .

Skilled specialist should be able to supervise workers in the same function better than the generalist. Manager brings specialized knowledge Likely to make better decisions in their fields. 14 .     Important advantage of a functional structure is efficiency.ORGANIZATIONAL STRUCTURE  Follows a functional organizational structure.

Eight functional departments 1) 2) 3) 4) 5) 6) 7) 8) Food and Beverages Production Food and Beverages Service Front Office Housekeeping Engineering’ Sales Finance Human Resource 15 .

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The various attributes on which they are rated are: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10)    JOB KNOWLEDGE SKILLS CO-OPERATION RESPONSIBILITY ATTITUDE TOWARDS WORK INITIATIVE EFFICIENCY ATTENDANCE PUNCTUALITY DISCIPLINE 17 . Factor Rating Method. Yearly appraisal system.PERFORMANCE MANAGEMENT  It is a mechanism that improves the likelihood that the organization will implement its strategies successfully.

each level representing a certain level of behavior or skill. Each of these attributes carries certain weight age depending upon their importance. The employee is scored on a likert scale of 1 to 5. The score is further multiplied to the weights and scores for each attribute is finally added.   18 .

Advantages of Factor rating  Helps the organization have a clear account of average. good and excellent performers. Controlling employees behavior and check its sync with the organization culture and values. Training of individuals. Understanding who needs to be retained in the organization. deciding who needs to be trained and in which area. 19    .

QUALITY CONTROL SYSTEMS 1) WOW Ratios  At the daily meetings each department submits its WOW ratios. Best performing department is rewarded for they’re performance in the form of incentives and perks. Performance of each department is compared on a monthly basis. Indicate the performance of each department on a likert scale.    20 .

Each department has to choose a specific area within the organization. For the purpose of improvement.2) Model Areas  Each month departments have to take up Model Areas.   21 .

Based on industry benchmarks and research it then goes ahead and creates a new improved process chart.   22 . Looks into the old process charts and tries to make process improvements.3) Process Line Charts  Defines the process flow of any department or function.

THANK-YOU  23 .