AY524 Management Control Systems: 2005-2006

National University of Ireland, Galway

Executive MBA Degree Program (Second Year)

AY524 Management Control Systems: 2005-2006

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Course overview:
The objective of this course is to enable participants to understand and
analyse the systems used by organizations to measure, manage and
control performance and to facilitate implementation of chosen strategies.

This function was traditionally served by management accounting systems

and budgetary control systems. Of course these systems (including
financially-based incentive schemes, transfer pricing systems, and
divisional performance assessment) are essential elements of
management control systems in todays organizations. However,
innovative techniques such as the balanced scorecard and economic
value added are becoming increasingly important elements of
management control systems.

The course is intended to develop participants ability to design systems of

management control, including both traditional and innovative control
methods.

Case studies will be an essential feature of the course. Course

participants will be asked to prepare a case or cases for discussion in
advance of each class session (except the first session). Both the interim
and final assessment (see below) will be based primarily on case studies.

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AY524 Management Control Systems: 2005-2006

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Lecturer:
John Currie
Department of Accountancy & Finance

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E-mail:

john.currie@nuigalway.ie

Web:

www.af.nuigalway.ie/jcurrie; then click on the link for AY524

Phone:

091-493884

Office:

Room #377 (Cairnes Building)

Assessment:

Interim case study assignment (20% of course grade).

Final examination, of 3 hours duration (80% of course grade).

Textbook:
Robert N. Anthony & Vijay Govindarajan, Management Control Systems
(11th edition) (McGraw Hill, 2003). ISBN 0-07-123227-3.

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AY524 Management Control Systems: 2005-2006

Course content:
1.

Introduction to management control systems

Reading:

2.

3.

4.

5.

6.

7.

Anthony & Govindarajan, Chapter 1.

Management control systems in their strategic context

Reading:

Anthony & Govindarajan, Chapter 2.

Case:

Case 2-5: Motorola.

Management control systems & organizational behaviour

Reading:

Anthony & Govindarajan, Chapter 3.

Case:

Case 3-4: Rendell Company.

Responsibility centres: Revenue centres & cost centres

Reading:

Anthony & Govindarajan, Chapter 4.

Case:

Case 4-2: New Jersey Insurance Company.

Profit centres
Reading:

Anthony & Govindarajan, Chapter 5.

Case:

Case 5-2: North Country Auto.

Transfer pricing
Reading:

Anthony & Govindarajan, Chapter 6.

Case:

Case 6-2: Birch Paper Company.

Investment centres & economic value added

Reading:

Anthony & Govindarajan, Chapter 7.

Cases:

Case 7-3: Quality Metal Service Centre;

Case 7-4: Aloha Products.

8.

Strategic planning & management control

Reading:

Anthony & Govindarajan, Chapter 8.

Case:

Case 8-1: Allied Stationery Products.

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AY524 Management Control Systems: 2005-2006

9.

Budgeting
Reading:

Anthony & Govindarajan, Chapter 9.

Case:

Case 9-3: Riverview.

10. Analysis of financial performance reports

Reading:

Anthony & Govindarajan, Chapter 10.

Case:

Case 10-3: Galvor Company.

11. Performance measurement

Reading:

Anthony & Govindarajan, Chapter 11.

Cases:

Cases 11-1 & 11-2: Analog Devices (A) & (B).

12. Management reward systems

Reading:

Anthony & Govindarajan, Chapter 12.

Case:

Case 12-1: Lincoln Electronic Company (A).

13. Controls for differentiated strategies

Reading:

Anthony & Govindarajan, Chapter 13.

Case:

Case 13-1: Pelican Instruments.

14. Control in service organizations

Reading:

Anthony & Govindarajan, Chapter 14.

Case:

Case 14-1: OReilley Associates.

15. Control issues in multinational organizations

Reading:

Anthony & Govindarajan, Chapter 15.

Case:

Case 15-1: AB Thorsten.

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