An essential task for any manager is to align the activities of employees with those of the organization. A management control system can ensure that this happens. In the Management Control Systems course, we discuss the nature of these systems, the types of controls contained within them, and how to align the planning, incentive, and reporting functions to make them more effective. The course also covers how to design a management control system, control its cost, make ethical decisions, and several related topics.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize the characteristics of a management control system and a system of corporate governance.
Recall the components of a management control system.
Recognize the characteristics of the different types of controls.
Specify the process for making ethical decisions.
Recall the types of direct and indirect costs of a management control system.
Recognize the different types of transfer pricing schemes.
Recall the advantages of having a well-coordinated planning system.
Recognize the behavioral impacts of having a budget.
Specify the issues associated with the design of incentive systems.
Recall the characteristics of the financial performance measures used as part of a management control system.
Recognize the steps required to design an effective management control system.
Major Topics
The Goals of a Management Control System
The Control Loss Continuum
Result Controls
Action Controls
Personnel Controls
Complementary Controls
Planning Systems
Incentive Systems
The Cost of Management Control Systems
The Impact of an Ethical Environment
