IBS Hyderabad

Academic Year 2014-15

Course Handout
Course Name: Management Contro System Semester: III
Faculty Name: C.Padmavathi
Room No: F114 Wing No: F Wing First Floor
Consultation Hours: between hrs every !day"
#obile No: $%4%&'&('& )mail: c*admavathi+ibsindia.org
Course Objective: This course is designed to give a broad understanding of the control process, control systems and their
applications to real life business situations
Learning Outcomes: At the end of the course a student is expected to understand the importance of Control systems in an
organization and gain knowledge about designing the control process
Recommended Text Book: Management Control ystems ! "obert Anthony # $i%ay &ovindara%an' ()th *dition, Tata Mc&raw+
,ill
Suggested books: Management Control ystems ! -oseph A Maciariello and Calvin -. /irby
Course Outline:
Sl
No
Sessio
n No.
Topic 0 Area Covered Case Case
details
Chapter Reading
1 (
Introduction to
Management
Control System
Overview of Management Control System Chapter 1-The nature of Management
Control Systems (Text boo -!" #$%&
' ) Nature of Organi(ation an) nee) for
Management Control
"T* Mi+ro Te+hnologies, Maing
the numbers
*-S No.
.-1/0-/.1
1 & The Subsystems an) the Components of
Control Systems.
Nu+or Corporation " 2 - Text -oo
Case no 1-1
an) 1-'
Chapter 1,-Management Control Systems 3
4oseph Ma+iariello 2 Calvin 5
6 4 Understanding Strategies Becton Dickson, 7esigning the
New Strategi+8 Operational8 2
9inan+ial :lg
*-S No.
.-1.;-/16
Chapter ', <n)erstan)ing Strategies ( Text
boo%
= , Behavior and
Culture for
Control
Systems
Managerial Styles 2 7esign of the Control
Systems8 Corporate Culture 2 7esign of the
Control Systems
Guidant Corporation, Shaping
Culture through Systems
*-S No. .-
1.0-/;>
Chapter 1- -ehavior in Organi(ations(Text
-oo% Chapter 6 3 Style an) Culture an)
the 7esign of Control Systems (4oseph
Ma+iariello an) Calvin 5%
> - NCP-
; .
!rgani"ation
Structure #
Control
7e+entrali(ation vs. Centrali(ation
?volution of the Matrix Stru+ture - Matrix vs.
9un+tional - 7ivisional "utonomy
$%%e& Cor%oration *-S No.
.-6.1-/0'
Chapter = 3 of 4oseph Ma+iariello an)
Calvin 5irby - @nfrastru+ture-@ Organi(ing for
")aptive Control
0 % 'es%onsi(ility Structure - Overall
?ffe+tiveness Measures - Stan)ar) Cost
Center - !evenue Center - :rofit Center -
@nvestment Center
a% North County "uto
b% )igashimaru Shoyu
Company8 At).("%, :ri+e
Control System
Text boo
Case no =-'
*-S No.
.-1.=-/=/
Chapter 6 3 Text -oo- !esponsibility
Centers, !evenue an) ?xpense Centers
Chapter = 3 :rofit Centers
. $
*ransfer Pricing 3 ObBe+tives 3 Metho)s
an) simple problem in Transfer :ri+ing
Birch Pa%er Company *-S No. .-
1=0-//1%
Chapter >, Transfer :ri+ing (Text
-oo%
1/ 1' Management
Control
Process
Budgeting as Control tool
Empire Glass Company
(A)
HBS No .
9-109-043
Chapter 9: Budget Preparation
(Text Book)
11 11
Beyond Budgeting
Borealis HBS No .
9-102-048
1' 1(
+ariance
$nalysis
Analyzing and reporting fnancial
performance analysis of variances
Problems on Material & Labor variances Chapter 10: Analyzing Financial
Performance (Text Book)
Chapter 11: Performance
Measurement Systems(Text Book)
11 1&
NCP-2
16
14
Performance
Measurement
Interactive Control- Target
Costing - Activity based costing
Continental Media
Group : Business
Highlights
HBS No.
5-110-090
Chapter 11: Performance
Measurement Systems (Text Book)
1= 1,
Management
Compensation
&
Communication
Rewards as a control tool-
Characteristics of Incentives-
Communication Structures in
Support of the Control Process -
Impact of Information
Technology on Control Systems.
Crown Point Cabinetry Text book
Case no 12-
2
Chapter 12: Management
Compensation(Text Book)
1> 1-
Management
Control in
Service
Organizations
Introduction Nature of Control
in service organizations
Control systems in Financial
Institutions
OReilley Associates Text Book
Case no 14-
1
Chapter 14: Service Organizations
(Text Book)
1; 1.
Management
Control in
Multinational
Corporations
Cultural diferences and
resulting structural design
problems
AB Thorsten Text Book
Case no 15-
1
Chapter-15: Multinational
Organization (Text Book)
1%
Transfer Pricing
10 1$
Management
Control in
Projects
Nature of Planning and Control
in Projects control environment
in projects reporting project
auditing Evaluation of projects.
Turner Construction
Company: Project
Management Control
Systems
HBS No.
9-190-128
Chapter 16 Management Control
of Projects (Text Book)
1. ('
NCP-3
'/ (1
Enterprise Risk
Management
Objectives types of risks- Risk
management process- COSO
ERM framework
Countering the biggest
Risk of All (HB
Article)
Enterprise Risk
Management at
Hydro One
HBS No.
9-109-001
'1 ((
Comprehensive
view of Control
System
Turnaround Strategy, Control
Systems, Incentives,
Organizational & Cultural
changes
Ranjana Kumar
Interview in
IIMB
Management
Review, March
2004
Other contemporary issues
R/ 01 2 Robert /nthony 3 0i4ay 1ovindara4an !5e6t 7oo8"
Expectations rom Students :
a. Students must re*ort to the res*ective sessions well be9ore the announced time. :atecomers will not be *ermitted to 4oin the class a9ter the scheduled
time. ;9 late< the attendance 9or that session will be mar8ed as absent.
b. Read the Case Study = material well *rior to the class discussion. >e=she is also e6*ected to read the cha*ter indicated in the course *lan as the 9aculty
directs.
c. ;n the class discussion student is e6*ected to *artici*ate actively and contribute to individual and grou* learning. )valuation is based on active
*artici*ation.
d. )valuation is a continuous *rocess at ;7S. )very student needs to be aware o9 the timelines given in the section below. /bsence 9rom these evaluations
will mean non awarding o9 mar8s in that *articular com*onent
e. Wherever a**licable< grou* assignments re?uire each student to contribute to the grou* e99ort. 5his enhances grou* e99ectiveness and leads to greater
a**reciation o9 wor8ing in grou*s.
9. Formal dressing is suggested 9or all students. @o not roam in the academic area= attend classes in cha**als = shorts = in9ormal t shirts
g. Students are e6*ected to show high regard and a**reciation 9or in class disci*line and desist 9rom using mobile *hones. 5his disturbs the class ambience
and unnecessarily diverts attention o9 other students as well as the 9aculty member.
h. )ach 9aculty has been given a scheduled consultation hour. AtiliBe this time to meet the 9aculty and clari9y doubts i9 any< see8 e6*lanations and get
mentored i9 needed.
i. /ttendance is com*ulsory in all sessions. >owever re9er to guidelines in your academic handboo8 9or e6ce*tions.
Evaluation Timelines
Cee*ing in line with continuous evaluation at ;7S the 9ollowing schedules have been drawn. Students are e6*ected to go through the dates = sessions
mentioned and *re*are accordingly.
Com*onent Com*onent Number )6*ected slot = due date #ar8s declaration by Weightage
Class Partici*ation !CP" 1 Session . Session % 1'
Class Partici*ation !CP" ( Session 14 Session 1, 1'
Class Partici*ation !CP" & Session (1 Session (( 1'
Non class *artici*ation !NCP" 1 Session - Session . 1'
Non class *artici*ation !NCP" ( Session 1( Session 1& 1'
Non class *artici*ation !NCP" & Session 1% Session 1$ 1'
)nd e6am /t the end o9 the semester 4'
5otal 1''
Per9ormance till #idterm will be announced by end o9 session No. 1( in each course which means each student will 8now his = her *er9ormance in one
CP and two NCPs. 5he 9inal result will be declared a9ter the end e6aminations. 7e9ore the student ta8es the end e6amination he = she will be aware o9
the *rogress in each course u* to an e6tent o9 -' mar8s. Students not ta8ing the evaluation according to the timelines mentioned above will not be given
another o**ortunity e6ce*ting in rare circumstances o9 e6treme illness or hos*italiBation.
Brie proile o the !acult" #ember
C!"adma#at$i% Associate "ro&essor '(inance ) Accounting*% IBS Hyderabad!
A C$artered Accounting and a "ost +raduate in Commerce ,it$ more t$an 14 years% e-.erience in teac$ing!
/t$er areas o& interest incude I(0S ) 1S+AA" and Micro&inance