Transcript BU620 Management Controls 1st Class - Objectives     Introduction Course Outline & Objectives Expectations In class case exercises.

BU620
Management Controls
1st Class - Objectives
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Introduction
Course Outline & Objectives
Expectations
In class case exercises
Introduction
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Professor: Dr. Laura MacDonald
Contact Information:
• [email protected] or ext. 2815
P2052
Office Hours:
• Thursday 12:30 – 1:30 or by
appointment
Class:
• Monday 1- 4 p.m., SBE 2260
Faculty Assistant:
• Sandra Castellanos, SBE2201
Course Overview
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Performance measurement and control is
an essential function of management
• ensure that the organization’s objectives
and strategies are carried out
effectively.
• it increases the probability of
organizational success.
Course Overview
Management can use a combination of mechanisms
to achieve organizational control.
• One is to hire good people who can be relied
upon to serve the firm well (personnel
controls).
• ensure that employees do not perform certain
actions known to be harmful to the
organization (action controls).
• rewarding individuals for generating good
results (results controls).
Course Overview
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We will focus on the use of results controls
• measurement and evaluation of financial
and non-financial performance.
Focus on key decisions that must be made
in using results controls:
• performance measures, standards and
targets
• performance-based incentives.
• Limitations of traditional measures
• Recently developed approaches
Course Overview
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The course is designed to be useful to
those aspiring to be:
• Managers
• Compensation consultants or human
resource specialists
• Management consultants
• Management accountants
Course Objectives
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After completing this course you will;
• Be able to evaluate the efficacy of an existing
management control system;
• Understand the role played by effective
management accounting and control systems
in modern organizations;
• Be able to design and develop an effective
management accounting and control systems;
and,
• Be familiar with a number of emerging ideas
and concepts in the field of management
control.
Seminar Course
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my role is primarily as a resource person to help
guide your exploration of the material.
your role as a student is to contribute to class.
The real learning comes from
• your preparation for class and
• participating in the exploration of ideas during
class.
• Your level of preparation for class largely
decides the value you will take away from each
session.
The case method facilitates the exploration of the
management control issues in a broad range of
settings
Expectations
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Prepared for class and ready to contribute
most of the course will involve a
discussion of ideas, concepts, opinions,
and analysis that follow from the cases
and readings
You should therefore come to each
seminar ready to discuss issues from
the assigned readings as well as the
cases assigned for that day.
Expectations
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For each case, a number of members of
the class will be assigned responsibility for
presenting the “basics” of each case: an
overview of the firm/industry, an overview
of the MCS in place, and an overview of
the presenting problem
The class as a whole will be responsible
for analyzing the situation, proposing
alternatives and making
recommendations.
Evaluation
Participation:
 Hand-in case summaries
 Case Overviews
 Classroom contribution
10 %
10 %
5%
Report and Presentation
40%
Examination
35%
100%
Hand-in Case Summaries
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Each member of the class will provide a one-page summary
of the cases at the beginning of the class in which the case
is discussed.
This summary will not be graded for “correctness” but only
for an honest attempt to consider the issues in the case and
make a preliminary recommendation.
You must be present at the class for this summary to be
accepted for grading.
These items will not be returned to you, as I will assemble
them into a portfolio of work on which I will assess your
performance collectively over the term. I will also contact
any student whose case submissions I deem to be
unacceptable for graduate level work.
If you fail to submit a case summary, I will interpret your
not submitting a required hand-in as an indication that you
did not prepare for class and will record your contribution
accordingly.
Case Overviews
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For each case, 2-4 members of the class
(depending on course registration) will be
assigned responsibility for presenting the “basics”
for each case:
• an overview of the firm/industry,
• an overview of the MCS in place, and
• an overview of the presenting problem (i.e.,
the symptoms).
• Your job is not to solve the case – just to kick
off the discussion.
• Your grade will reflect your ability to present
an informative summary and kick start class
discussion
Group Formation
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Form groups for purposes of case overviews and
fiasco report/presentation.
Allowable group size will be 2-5 (depending on
enrollment)
A sign-up sheet listing all cases will be posted on
Monday, May 7 in class. Students will form
groups and pick cases.
Classroom Contribution
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You are encouraged to take an active part in the
course discussions by providing thoughtful,
constructive, worthwhile comments, questions
and debate. Oratory skills are a must for
professionals, so meaningful classroom
contribution is expected.
Please use a name card in my class. Grading
class participation requires that I get to know
everybody as soon as possible. My expectation is
that you will come to class every time. If you will
be absent, please let me know before class [by
email].
Classroom Contribution
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Good participation grades are assigned to students
who:
• Are always well prepared;
• Ask insightful, penetrating questions;
• Push the discussion of the case to a higher, more
sophisticated level;
• Help other students understand, in a constructive
manner, that some of the arguments that have been
voiced are somehow flawed or incomplete.
Failing participation grades are assigned to students
who:
• Rarely talk;
• Skip classes;
• Make irrelevant, shallow comments;
• Are unprepared when they are called on.
Fiasco Report/Presentation
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As part of a 3-5 person team, you will
• identify an organization, (i.e. for-profit, notfor-profit, public or private sector) that has
experienced a major management fiasco and
• prepare a case study of how the company’s
management control system contributed to
that fiasco.
• This research must be completed from
secondary sources without contacting the
company, so ensure you choose a company
whose fiasco was widely publicized and can be
researched from publicly available resources.
• Peer evaluation will also be considered on a
group by group basis, as requested.
Initial Report
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by June 11 you must provide a brief report to me
detailing:
the name of the company
the names of those in the group
disclose any relationships that group members may have
with the company
an overview of the firm and its strategic position (i.e., what
customers and markets does it serve, who are its
competitors, what is its business model and what are the
critical success factors for this business).
an overview (description) of the management control fiasco
you plan to analyze.
a research plan specifying how you will collect information
about the fiasco and control system.
This document will be worth 10 of the 40 marks for this
project.
Final Report
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by July 23 you must provide a final report to me in digital and
hard copy:
The digital version will be posted on the website for the class to
read prior to the presentation
You must also send a copy to Turnitin.com [address provided on
course website]
Your final report should include
a description of the company and its context,
a detailed description of the management control fiasco
an overview of the MCS in place,
an analysis of the MCS and the role it played in the fiasco [using
the concepts in the course],
your evaluation of the effectiveness of the MCS
any recommendations for improvement that are warranted.
This document will be worth 20 of the 40 marks for this project.
Presentation
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Each group will present their study to the class on July 30
or 31:
Each group will have 30 minutes to present the key issues,
analysis and recommendations, and to answer questions
(do not spend a lot of time repeating material company
information that is included in your written description).
The oral presentation will be graded by the class based on
the contribution that you make to their understanding of
management control system design/functioning.
Provide a hard copy of your slides and handouts to me at
the beginning of the session in which your group is
scheduled to present.
All members of your group must be involved in the
presentation – ideally for equal amounts of time.
This presentation will be worth 10 of the 40 marks for this
project.
Final Examination
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The examination will be case analysis to
be completed on an individual basis.
The Final Exam case and instructions will
be distributed during the August 1st class.
You must submit your final examination
paper no later than 4 p.m. on August 15th
to the MBA office, as well as an email copy
to me and turnitin.com.
Details will be provided closer to the time
as to requirement for turnitin.com and
format, length etc.
Module 1
Management Control Alternatives
and their (Dis)advantages
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This module introduces the subject of
management control, the major
management control alternatives,
and their advantages and
disadvantages.
Module 2: Financial Results Control
Systems
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Financial results controls dominate in
importance in managerial levels in
most North American firms. This
module examines the major
elements of these systems (i.e.
responsibility centres, planning and
budgeting systems, performance
evaluations and reward structures).
Module 3: Common Financial
Results Control Problem Areas
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In this module, we explore problems
that measuring performance in
accounting terms create, including
management myopia, suboptimization and game playing. We
also discuss several methods to
mitigate these problems.
Module 4: Special Concerns in
Management Control
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This module examines controloriented roles in organizations and
how to deal with a range of controlrelated ethical issues. As well, we
discuss control in distinctive
circumstances.