MANAGEMENT CONTROL SYSTEMS

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

INTRODUCTION

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:

Hotels Paperboards & Stationary Packaging, Agri-Business Packaged Foods & Confectionery Information Technology Branded Apparel Personal Care Safety Matches Cigarettes

ORGANIZATION STRUCTURE
(THREE-TIER GOVERNANCE STRUCTURE)

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. Also provides direction and exercises appropriate control to ensure that the Company is managed in a manner that fulfils:
stakeholders aspirations societal expectations.

CORPORATE MANAGEMENT COMMITTEE

Strategic management of companys business as per the directions of Board.

DIVISIONAL MANAGEMENT COMMITTEE

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

Advantage:

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

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. Composition

Comprises five Non-Executive Directors, four of whom are Independent Directors.

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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. Promotes diversity and offers equality of opportunity to all employees.

ITC does not engage in or support direct or indirect discrimination in recruitment, compensation, access to training, promotion, termination or retirement based on caste, religion, disability, gender, age, race, color, ancestry, marital status or affiliation with a political, religious, or union organization or minority group.
Application of the non-discrimination employment policy rests with the Unit Head
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Policy on Freedom of Association

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

Support an employee engagement process. Promotes a culture of partnership. 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. Shared with employees at all units through a series of formal communication meetings, and through the intranet portals. monitored by the Unit Head.
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ITC HOTELS

ITCs hotel division was launched on October 18, 1975. Distinctive logo of hands folded in the traditional Namaste.

Each of the chains hotels pays architectural tribute to ancient dynasties, which ruled India from time to time.
Joint venture with the Sheraton Corporation to strengthen its international marketing base.

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STRATEGIC BUSINESS UNIT

ITC FOUR BRANDS OF HOTELS

ITC Hotels - Luxury Collection WelcomHotel | Sheraton Fortune Hotels WelcomHeritage

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ORGANIZATIONAL STRUCTURE

Follows a functional organizational structure. Manager brings specialized knowledge Likely to make better decisions in their fields. Skilled specialist should be able to supervise workers in the same function better than the generalist.

Important advantage of a functional structure is efficiency.

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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

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PERFORMANCE MANAGEMENT

It is a mechanism that improves the likelihood that the organization will implement its strategies successfully. Yearly appraisal system. Factor Rating Method. 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

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

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Advantages of Factor rating

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

1) WOW Ratios

At the daily meetings each department submits its WOW ratios. Indicate the performance of each department on a likert scale. Performance of each department is compared on a monthly basis. Best performing department is rewarded for theyre performance in the form of incentives and perks.

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2) Model Areas

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

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3) Process Line Charts

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

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THANK-YOU

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