Management Control Systems

Description

This title was recommended as a significant textbook within Bruno S. Frey and Christoph A. Schaltegger (eds), 21st Century Economics – Economic Ideas You Should Read and Remember (Springer, 2019).   As the market-leading text for Management Control and performance measurement, Management Control Systems 4th Edition will give you a thorough understanding of core concepts and key topics. Including a wide range of international case studies and real life examples means this is the ideal guide for understanding complex topics and bringing this subject to life. Cover Title Page Copyright Page Dedication Brief Contents Contents Preface Acknowledgements SECTION I The Control Function of Management 1 Management and Control Management and control Causes of management control problems Characteristics of good management control Control problem avoidance Control alternatives Outline of this text Notes Leo’s Four-Plex Theater Wong’s Pharmacy Private Fitness, Inc. Atlanta Home Loan SECTION II Management Control Alternatives and their Effects 2 Results Controls Prevalence of results controls Results controls and the control problems Elements of results controls Conditions determining the effectiveness of results controls Conclusion Notes Office Solutions, Inc. Puente Hills Toyota Kooistra Autogroep Houston Fearless 76, Inc. 3 Action, Personnel, and Cultural Controls Action controls Action controls and the control problems Prevention vs. Detection Conditions determining the effectiveness of action controls Personnel controls Cultural controls Personnel/cultural controls and the control problems Effectiveness of personnel/cultural controls Conclusion Notes Witsky and Associates, Inc. The Platinum Pointe Land Deal EyeOn Pharmaceuticals, Inc. Axeon N.V. 4 Control System Tightness Tight results control Tight action controls Tight personnel/cultural controls Conclusion Notes Controls at the Bellagio Casino Resort PCL: A Breakdown in the Enforcement of Management Control 5 Control System Costs Direct costs Indirect costs Adaptation costs Conclusion Notes Philip Anderson Sunshine Fashion: Fraud, Theft, and Misbehavior among Employees Better Beauty, Inc. Fit Food, Inc. Atlantis Chemical Industries 6 Designing and Evaluating Management Control Systems What is desired and what is likely Choice of controls Choice of control tightness Adapting to change Keeping a behavioral focus Maintaining good control Notes Diagnostic Products Corporation Game Shop, Inc. Family Care Specialists Medical Group, Inc. SECTION III Financial Results Control Systems 7 Financial Responsibility Centers Advantages of financial results control systems Types of financial responsibility centers Choice of financial responsibility centers The transfer pricing problem Conclusion Notes Kranworth Chair Corporation Zumwald AG Global Investors, Inc. 8 Planning and Budgeting Purposes of planning and budgeting Planning cycles Target setting Planning and budgeting practices, and criticisms Conclusion Notes Royal Wessanen NV The Stimson Company Multiple Versions of the Plan Vitesse Semiconductor Corporation VisuSon, Inc.: Business Stress Testing 9 Incentive Systems Purposes of incentives Monetary incentives Incentive system design Criteria for evaluating incentive systems Group rewards Conclusion Notes Harwood Medical Instruments PLC Superconductor Technologies, Inc. Raven Capital, LLC SECTION IV Performance Measurement Issues and Their Effects 10 Financial Performance Measures and Their Effects Value creation Market measures of performance Accounting measures of performance Investment and operating myopia Return-on-investment measures of performance Residual income measures as a possible solution to the ROI measurement problems Conclusion Notes Behavioral Implications of Airline Depreciation Accounting Policy Choices Las Ferreterías de México, S.A. de C.V. Industrial Electronics, Inc. Haengbok Bancorp Corbridge Industries, Inc. King Engineering Group, Inc. Berkshire Industries PLC 11 Remedies to the Myopia Problem Pressures to act myopically Reduce pressures for short-term profit Control investments with preaction reviews Extend the measurement horizon (use long-term incentives) Measure changes in value directly Improve the accounting measures Measure a set of value drivers Conclusion Notes Catalytic Solutions, Inc. Dortmunder-Koppel GmbH Johansen’s: The New Scorecard System Mainfreight Statoil 12 Using Financial Results Controls in the Presence of Uncontrollable Factors The controllability principle Types of uncontrollable factors Controlling for the distorting effects of uncontrollables Other uncontrollable factor issues Conclusion Notes Olympic Car Wash Beifang Chuang Ye Vehicle Group Hoffman Discount Drugs, Inc. Howard Building Corporation, Inc. Bank of the Desert (A) Bank of the Desert (B) Fine Harvest Restaurant Group (A) Fine Harvest Restaurant Group (B) SECTION V Corporate Governance, Important Control-Related Roles, and Ethics 13 Corporate Governance and Boards of Directors Laws and regulations The Sarbanes-Oxley Act Boards of directors Audit committees Compensation committees Conclusion Notes Arrow Motorcar Corporation Golden Parachutes? Pacific Sunwear of California, Inc. Entropic Communications, Inc. Bio/Precise Medical Devices, Inc. 14 Controllers and Auditors Controllers Auditors Conclusion Notes Don Russell: Experiences of a Controller/CFO Desktop Solutions, Inc. (A): Audit of the St. Louis Branch Desktop Solutions, Inc. (B): Audit of Operations Group Systems Andrew G. Scavell, Chief Risk Officer 15 Management Control-Related Ethical Issues Good ethical analyses and their importance Why do people behave unethically? Some common management control-related ethical issues Spreading good ethics within an organization Conclusion Notes Two Budget Targets Conservative Accounting in the General Products Division Education Food Services at Central Maine State University The “Sales Acceleration Program” The Expiring Software License Wired, PLC Mean Screens USA, Inc. Lernout & Hauspie Speech Products Ethics Cisco SECTION VI Management Control When Financial Results Are Not the Primary Consideration 16 Management Control in Not-for-profit Organizations Corporations, B corporations, and not-for-profits Key differences between for-profit and not-for-profit organizations Goal ambiguity and conflict Difficulty in measuring and rewarding performance Accounting differences External scrutiny Employee characteristics Conclusion Notes SCI Ontario: Achieving, Measuring, and Communicating Strategic Success University of Southern California: Responsibility Center Management System Index A B C D E F G H I J K L M N O P R S T U v W Z