M.C.S.

IN SERVICE ORGANIZATIONS
Presented By:Sourabh Pal Rahul Yadav Wilson Xalxo Binoy Babu

By:Sourabh Pal

SERVICE ORGANIZATIONS
Service Organizations in General
Characteristics:1) 2) 3) 4) Essence of Inventory Buffer Difficulty in Controlling Quality Labor Intensive Multi- Unit Organizations
Historical Development

PROFESSIONAL SERVICE ORGANIZATIONS

Special Characteristics 1) Goals 2) Professionals 3) Output and Input Measurement 4) Small Size 5) Marketing

MANAGEMENT CONTROL SYSTEMS

1) 2) 3) 4) 5) Pricing Profit Centers and Transfer Pricing Strategic Planning and Budgeting Control of Operations Performance Measurement and Appraisal

By:Rahul Yadav

FINANCIAL SERVICE ORGANIZATIONS

The Financial Services Sector The arguments for spin off are many:
1) This separation will ensure objective research data. 2) At present, cost of research is being subsidized by investment banks; if investors have to pay for it, they will demand higher-quality research. 3) Investor confidence will improve if they are convinced that research is unbiased.

Several arguments are offered against such a spin off:

1) The cost of research will go up if they are set up as separate firms; 2) The best research analysts will join investment banks due to the higher pay scales, thereby leaving independent research firms with lower caliber employees; and 3) To keep costs down, research departments may issue short reports instead of a rich, detailed analysis of stocks as is the current practice.

Special Characteristics
1) 2) 3) 4) 5) Monetary Assets Financial assets Time Period for Transactions Risk and Reward Technology

By:-

WILSON XALXO

HEALTH CARE ORGANIZATIONS

Health care organizations consist of hospitals, clinics, and similar physicians organizations; health maintenance organizations; retirement and nursing homes; home care organizations; and medical laboratories, among others. They constitute the largest industry in the United States: 14 percent of the gross national product, which is about the same percentage as the total of all durable goods manufacturers.

Special Characteristics
1) Difficult Social Problem 2) Change in Mix of Providers

3) Third-Party Payers
4) Professionals 5) Importance of Quality Control

Management Control Process

Because of the shift in the product mix and because of the increase in the quantity and cost of new equipment, the strategic planning process in hospitals is important. The annual budget preparation process is conventional. Huge quantities of information are available quickly for the control of operating activities.

Financial performance is analyzed by comparing actual revenues and expenses with budgets, identifying important variances, and taking appropriate actions on them.

By:-

Binoy Babu

NONPROFIT ORGANIZATIONS
A nonprofit organization, as defined in law, is an organization that cannot distribute assets or income to, or for the benefit of, its members, officers, or directors. The organization can, of course, compensate its employees, including officers and members, for services rendered and for goods supplied. This definition does not prohibit an organization from earning a profit; it prohibits only the distribution of profits.

A nonprofit organization needs to earn a modest profit, on average, to provide funds for working capital and for possible rainy days.

Special Characteristics
1. Absence of the Profit Measure 2. Contributed Capital 3. Fund Accounting 4. Governance

MANAGEMENT CONTROL SYSTEMS

1) Product Pricing 2) Strategic Planning and Budget Preparation 3) Operation and Evaluation

Ani Querij Pleaj. Dheej..