Module Overview

The materials will be presented through both lectures and case study analyses. The case studies permit the exploration of management control issues in a broad range of settings, and allow students to expand and apply their knowledge to selected cases. Good advance preparation by the students is therefore essential for active participation and contribution to the case analyses and discussions, and for the ability to answer posed questions during the class sessions. The expectation is that all students will participate actively for most of the case analyses and presentations, and when inputs are solicited from students by the lecturer. 

 A detailed schedule for the semester, including a list of case studies for the respective sessions, will be handed out later. The finalization of this list depends upon the enrolment size.

The first major topic area for the first few weeks is Management Control Alternatives. This topic introduces the subject of management control, the major management control alternatives, and their advantages and disadvantages. The reading for this first topic is MCS, chapters 1-6. The importance of culture in the design and implementation of management control systems will also be illustrated in this topic. 

The topic for the first week is Introduction to Management Control Systems, and the reading for this first week is MCS, chapter 1. (Students should also skim the reading in MCS, chapter 16, at this stage. Chapter 16 illustrates that the design, implementation, monitoring and revising of an organisation’s  MCS is contingent upon a large number of situational factors). The (short) case studies to be prepared by all students for the first session are (1) Leo’s Four-Plex Theater, and (2)Wong’s Pharmacy (MCS, pp.19-20).

Students will be required to prepare answers for the following questions for the case Private Fitness, Inc. for the second class session:

1.      Describe a solution to Rosemary Worth’s control problem that emphasizes (a) results controls, (b) action controls, and (c) personnel/cultural controls.

2.      What should Rosemary do?

Text:Management Control Systems: Performance Measurement, Evaluation and Incentives (2^nd ed) by Merchant and Van der Stede (Prentice-Hall/Financial Times, 2007).  (Referred to a MCS). 

Students will also be referred to the following texts:

Management Control Systems (12^th ed) by Anthony and Govindarajan (McGraw-Hill/Irwin, 2007).

 Accounting: Text and Cases (12^th ed) by Anthony, Hawkins, and Merchant  (Mcgraw-Hill/Irwin, 2007).
 

Assessment:

Tests (Mid-term/ final)                       50%

Case analyses                                    30%

Class participation                              20%

                                                         100%