Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
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7 sessions
Take-home cases
Final examination:
Take home case
Due date: 30 september 2008
Literature:
K. A. Merchant & W.A. van der Stede, 2003, Management
Control Systems, Prentice Hall, ISBN 0 273 65596 5
OR
K. A. Merchant & W.A. van der Stede, 2007, Management
Control Systems, Prentice Hall, ISBN 0 273 7080 15
Website
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Ch. 1
April 21
Ch. 2 & 3
May 6
May 19
June 2
Ch. 11 & 12
Ch. 10 & 11
June 9
Ch. 14 & 15
June 16
7. Situational influences
Ch. 16 & 17
June 23
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Benefit
increased probability that the organizations
objectives will be achieved.
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Management
the process of organizing resources and directing
activities for the purpose of organizational objectives.
Process-breakdown
Objective setting; what goals do we want to achieve?
Strategy formulation; how are we going to realize these
goals?
Control: are we on track in realizing these goals?
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Objectives are
a necessary prerequisite for any purposeful activities.
Objectives can be
financial versus non-financial;
quantified, explicit versus implicit;
economic, social, environmental, societal.
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Hence,
strategies put constraints on employees to
focus activities on what the organization does
best or areas where it has an advantage over
competitors.
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Control ...
Strategic control
Is our strategy (still) valid?
Strategy revision -- intended vs. emergent strategies.
Management Control
Are our employees likely to behave appropriately?
(design)
Do they understand what we expect of them?
Will they work consistently hard and try to do what
is expected of them?
Are they capable of doing what is expected of them?
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Objective Setting
Strategy Formulation
Strategy Implementation
Strategic Control
Management Control
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Three issues:
Do they understand what we expect of them ...
Lack of direction
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Because
Lack of goal congruence
Individual goals do not coincide with organizational goals.
Self-interested behavior
Statement!!
Personal limitations
Remedies:
Training
Job assignment / promotion
Job design
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measure performance;
compare with pre-set standard;
take corrective action.
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Three strategies
Activity elimination
e.g., subcontracts, licensing agreements, divestment.
Automation
Computers / robots eliminate the human problems
of inaccuracy, inconsistency, and lack of motivation;
Only applicable to relatively easy decision situations;
Automation can be very costly.
Centralization
Superiors reserve for themselves the most critical
decisions.
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Control alternatives
ACTION CONTROLS
RESULTS CONTROLS
PEOPLE CONTROLS
Depending on ...
Excellent
Action Control
and/or
Results Control
Results Control
Poor
High
Action Control
(e.g., large projects)
People Control
(e.g., research lab)
Low
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Overview ...
Can people be avoided?
(e.g., automation, centralization)
Yes
No
Yes
Yes
Control-problem
avoidance
People controls
No
No
Action controls
Yes
Results controls
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