ADMS 4570 3.0: Management Planning & Control Systems:
Fall 2014: Course Outline
Section A: Tuesday 7-10 pm: Instructor Professor Babar Khan Location: ACW 003
Section B: Thursday: 11.30 am to 2:30 pm: Instructor: Professor Nelson Waweru: Location: ACW 302
Area co-ordinator: John Parkinson: Atkinson 424, email:
Textbooks:
Management Control Systems:
K.A.Merchant & W.A.Van der Stede: Prentice Hall, 3rd Edition, 2012.
Effective Case Analysis:
Alan Richardson: Captus Press, 2013
Assessment will be through the following:
1: Analysis and presentation of the first group case study: 20%
2: Analysis and presentation of the second group case study: 20%
3: Submission of weekly case study related exercises: 10%
4: Participation in class discussions:
During the weekly discussion of the case and the assigned reading material the instructor will keep records of the quantity and quality of the contribution made by each student. A mark for participation will be assessed out of 10%. 10%
Total term work: 60%
5: Final examination:
The final exam will be case-study based. It will be open book: 40%
Total: 100%
September 9th, 11th: Week 1:
Introduction to the course
How organizations choose strategies;
What is a case study and why are they used?
Read:
MCS: Ch. 1: Management & Control;
ECA: Ch. 1: What is a case?
Porter, M.E., Competitive Strategy: New York, the Free Press, 1980
Mintzberg, H. Crafting Strategy: Harvard Business Review, 65, #4, July-August 1987, pp. 66-75
Discuss:
Private Fitness Inc: p. 20.
Groups:
During the course you are required to work in groups to submit 2 case analyses. Each group should be around 5 people (minimum 4, maximum 6). This week start organizing yourselves into those groups.
September 16th, 18th: Week 2:
Read:
MCS: Ch. 2: Results Control;
ECA: Ch. 2: Learning Styles & Case Learning;
Kerr, S. The Best-Laid Incentive Plans: Harvard Business Review, 81, #1, January 2003 pp 27-40
Discuss:
Loctite Company of Mexico; p. 55
Submit (by September 23rd, 25th):
ECA: Ch. 2: Exercise 1.
This requires you to self-assess through a learning styles inventory and reflect on the outcome. If the link in the Richardson textbook does not work, download one from the net: there are several out there, and any one will do.
You may submit assignments in hardcopy in the class, or email them to your course director.
This is the first of 5 hand-in assignments: each will be given a mark out of 2:
no submission = zero;
a poor quality submission, or a late submission = 1
a good submission = 2.
Submit (by September 23rd, 25th):
Names of group members by email to your course director.
September 23rd, 25th: Week 3
Read:
MCS: Ch. 3: Action, Personnel & Cultural Controls;
ECA: Ch. 3: A Model of case Analysis;
Rucci, A., S.Kirn & R.Quinn: The Employee-Customer-Profit Chain at Sears: Harvard Business Review: January-February 1998, pp.82-97
Discuss:
Alcon laboratories: p. 112
Submit (by September 30th, October 2nd)
ECA: CH. 3: Exercise 4:
This requires you to submit a brief case analysis of the “Jet Blue” case in the Richardson textbook. Use point form: submit no more than 2 pages.
Submit (by September 30th, October 2nd)
1st group case will be due on October 21st, 23rd. Select any case from chapters 3, 4 or 5 (excluding those to be discussed in class) and submit its name to your course director for approval.
September 30th, October 2nd: Week 4:
Read:
MCS: Ch. 4: Control System Tightness;
ECA: Ch. 4: Identifying Issues:
Van der Stede, W.A., The Pitfalls of Pay for Performance: Finance & Management, December 2007, pp. 10-13.
Discuss:
Controls at the Bellagio Casino Resort, p. 134.
Submit (by October 7th, 9th):
ECA: Ch. 4: Exercise 2.
This requires you to prepare a fishbone diagram and prioritize the core issues in the Eisner Mousetrap case.
October 7th, 9th: Week 5:
Read:
MCS: Ch. 5: Control System Costs:
ECA: Ch. 5: Identifying Alternatives:
Merchant, K.A., The Effects of Financial Controls on data manipulation and Management Myopia; Accounting, Organizations & Society, 15, #4, 1990, pp. 297-313.
Discuss:
Game Shop Inc., p. 229.
Submit (by October 14th, 16th)
ECA: Ch. 5: Exercise 3.
This requires you to develop alternatives to the “Eisner Mousetrap” case using at least 2 of the methods described in chapter 5 of the Richardson text.
October 14th, 16th: Week 6:
Read:
MCS: Ch. 6: Designing and Evaluation Management Control Systems;
ECA: Ch. 6: Evaluating Alternatives:
Marginson, D. & S. Ogden, Coping with Ambiguity through the Budget: the Positive Effects of Budgetary Targets on Managers’ Budgeting Behaviours: Accounting Organizations & Society, 30, #5, July 2005, pp. 435-56
Discuss:
Diagnostic Products Corporation: p. 220
Submit (by October 21st, 23rd):
1st group case is due on October 21st, 23rd. Select any case from chapters 3,4 or 5 (excluding those to be discussed in class) and either hand in hardcopy in class, or email it to your instructor.
October 21st, 23rd: Week 7
Read:
MCS: Ch. 7: Financial Responsibility Centres;
ECA: Ch. 7: Making Recommendations:
Cools, M. & R. Slagmulder, Tax-Complaint Transfer Pricing & Responsibility Accounting, Journal of Management Accounting research, 21 (2009), pp. 151-78
Discuss:
Zumwald AG, p. 293.
Submit (by October 28th, November 6th):
ECA: Ch. 7: Exercise 3.
This requires you to critique the implementation plan of the “Fairy Falls” case.
At this point you should have submitted 5 assignments: these will be counted towards a mark out of 10.
October 28th, November 6th: Week 8:
Read:
MCS: Ch. 8: Planning & Budgeting;
ECA: Ch. 8: Group Work:
Hansen, S.C. & W.A. Vander Stede, Multiple Facets of Budgeting: Management Accounting Research, 15, #4 December 2004, pp. 415-39
Discuss:
HCC Industries. P. 329
Present:
Groups 1 & 2 will present their case study analyses.
Plan the presentation to last no more than 20 minutes.
Submit (by November 4th, 13th):
2nd group case is due on December 7th (which is the last day of fall term classes): choose one case from chapters 6 through 13 that is not going to be discussed in class. Email your course director with the name of the case, for approval.
November 4th, 13th: Week 9:
Read:
MCS: Ch. 9: Incentive Systems;
ECA: Ch. 9: Case Based Examinations;
Bonner, S.E. & G.B. Sprinkle, The Effects of Monetary Incentives on Effort and Task Performance, Accounting, Organizations & Society, 27, # 4/5, May 2002, pp. 303-45
Discuss:
Tsinghua Tongfang Co. Ltd. p. 397.
Present:
Groups 3 & 4 will present their case study analyses.
November 11th, 20th: Week 10:
Read:
MCS: Ch.10: Financial Performance Measures and their Effects;
ECA: Ch.10: Epilogue;
The Cost of Myopic Management: Natalie Mizik &Robert Jacobson
Harvard Business Review: Jul 01, 2007. Prod. #: F0707E-PDF-ENG
Discuss:
Industrial Electronics. P. 435.
Present:
Groups 5 & 6 will present their case study analyses.
November 18th, 27th: Week 11:
Read:
MCS: Ch. 11: Remedies to the Myopia Problem
Laux, C. & C.Leuz, The Crisis of fair Value Accounting, Accounting, Organizations & Society, 34, # 6/7, August-October 2009, pp. 826-34
Discuss:
First Commonwealth Financial Corporation. P. 466.
Present:
Groups 7 8 will present their case study analyses.
November 25th, December 4th: Week 12:
Read:
MCS: Ch. 12: Using Financial Results Control in the Presence of Uncontrollable Factors;
MCS: Chapter 13: Corporate Governance & Boards of Directors;
Rajagoplan, N. & Y.Zhang, Recurring Failures in Corporate Governance, Business Horizons, 52, 2009, pp. 545-52
Discuss:
Entropic Communications Inc. p. 590
Submit:
2nd group case is due by December 7th (which is the last day of fall term classes): choose one case from chapters 6 through 13 that has not been discussed in class and email it to your course director.
Final exam:
The final exam will be open-book and will consist of a single case study: it may come from the textbook or it may come from a different source. It will count 40% towards the overall grade.