...The Bellagio has extensive controls in place in order to ensure the smooth operations of their hotels and casinos. Most of the controls put in place at the Bellagio consist of action and personnel controls; not a lot of results or cultural controls seen. The gaming industry is heavily regulated so many controls have to be put in place anyway as required by regulatory bodies, however the Bellagio has gone above and beyond the required amount. Some of the action controls that we see being employed at the Bellagio are: • Daily cash count • 2000+ surveillance cameras that record footage at each table and all casino surroundings • Strict record keeping procedures and daily reconciliations • Dual or triple supervision when transferring cash or cash equivalents • Pocketless uniforms to prevent hiding cash • Extensive supervision of gamers, dealers and all personnel handling cash • Cash cage, lock boxes and specific procedures for handling cash • Being aggressive on collection of receivables • A lot of redundancy so they are never short staffed and security remains high Some of the personnel controls that we see are: • Only hire experienced staff • Thorough screening process of potential hires • Extensive training of employees • Licensing of casino staff • Good job design: giving staff 20 minutes break each hour Cultural controls: • Reporting suspicious transactions • Reporting any transaction over $10 000 Results controls: • Upper management bonuses...
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...In-class activity 1: Identifying control problems and MCS Source case / paper: Wong’s Pharmacy (textbook p. 20) AND Leo’s Four-Plex Theater (textbook p. 19) In-class activity questions / objectives: Wong’s Pharmacy: 1. What is the main problem facing Wong’s pharmacy? 2. What options are available to Thomas Wong? Leo’s Four-Plex Theater: 3. What are the key controls problems at Leo’s Four-Plex Theater? 4. State the control measures implemented in the theatre and the purpose and limitations of each 5. Are the problems caused primarily by inadequate existing controls and what improvements would you suggest? In-class activity 2: The role of management accounting information in controlling an organisation Source case / paper: Kaplan, R. S., 1984, The Evolution of Management Accounting, The Accounting Review, Vol. LIX, No. 3, pp. 390-418 (SO page 92 to 120). In-class activity questions / objectives: 1. What is the role of accounting information in controlling an organisation? 2. Outline the historical development of the use of management accounting information to control organisations. 3. Why may profit not be a good criterion to “motivate and evaluate short-term performance” in all cases? In-class activity 3: Controls at the Bellagio Casino Resort Source case / paper: Case Study: Controls at the Bellagio Casino Resort (textbook p. 134) In-class activity questions / objectives: Focus on the three key roles at three levels of authority in the...
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...University of Southern California Controls at the Bellagio Casino Resort Teaching Note Purpose of Case The Controls at the Bellagio Casino Resort case was designed with several purposes in mind. First, it illustrates a control system that is dominated by action and personnel controls, rather than results controls. The analysis of this system leads to insights about some of the factors that limit the feasibility of results controls. Second, the case can lead into a discussion of what is meant by the term “tight control.” The case presents an excellent example of the application of tight action controls in the table games areas of the casino. Finally, the case can lead into a discussion of the meaning of what auditors refer to as “internal control,” which is a subset of the broader area of management control. The case describes an excellent system of controls over cash and cash-equivalent stocks and movements thereof. These controls, which fall in the category of internal controls, are necessary but not sufficient to guarantee good management control. Suggested Assignment Questions Since the case can be used for several purposes, the assignment can be slanted in several ways. The following is one list of questions that might be used 1. Focus on three key roles at mainly three levels of authority in the casino – blackjack dealers, pit bosses, and the vice president of table games. How would you characterize the “control strategy” (e.g., tight vs. loose) used...
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...Case #1 Michael Benavides Controls at the Bellagio Casino and Resort The Bellagio Casino and Resort is owned by the MCM Mirage and is one of the 23 properties that they own. The Bellagio is one of the world’s most premier casino resorts. With it they have up to 4,000 employees working 24 hours a day, every day of the year. Of the 4,000 employees 1000 of them work in finance organization, reporting directly to the executive vice president/CFO. The casino consists of 2409 slot machines and 143 gaming tables inside the in 2,000 square foot convention space. In the casino and resort industry they are a very competitive environment and are high regulated by the state of Nevada. The Bellagio consists of two separate profit centers. One profit center is the gaming operations with table games (blackjack, baccarat, craps, roulette, keno, and poker) and the slot machines. The second profit center is the non-gaming operation which is made up of rooms, food and beverage, entertainment, retail and other, and non-casino revenue. With the industry changing so much as it is Bob Rudloff (vice president of internal audit) explains that “People don’t just come to Vegas anymore to gamble; rather, they are attracted by shopping, dining, spas, shows, and entertainment. This has resulted in a shift in revenues from gaming to non-gaming. Strategically, however, our business is not just about controlling the gaming part of revenues any longer. 1.) Focus on three key roles at mainly three levels...
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...Management control systems rk assignment ME2028 Behavioral Management Control Andreas Torbiörnsson 09 How could each of the control problems at Leo´s Four-Plex Theater be solved with the use of Cultural control? Cultural control is a type of control that encourages mutual monitoring1 and it builds a lot upon group pressure. The main idea of cultural control is to get the employees to watch over each other and to create a culture that has certain things that you specifically do or don’t do. It aims to set up shared beliefs and norms in that company, rules of behaving that everyone abides by. The case of Leo’s Four-Plex Theater has a number of control problems that I can identify. They are as follows: Discrepancies in the cash counts of the ticket booths. Most likely caused by a lack of motivation that leads to employee theft and neglecting of duties. The employees working in the refreshment stand sometimes do not collect cash from customers or doesn’t register the sale on the cash register. This is also most likely caused by a lack of motivation, it can’t be lack of direction since they know what they should do and neither could it be a personal limitation since they know how to operate the machine and how to collect payment. The problem seems to be that they don’t know why they should collect the cash. Test counts reveal that the number of tickets sold or put into the stub box isn’t equal to the amount of customers entering and leaving the theater. This seemed...
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...KTH Homework assignment ME2028 Behavioral Management Control Andreas Torbiörnsson 09 How could each of the control problems at Leo´s Four-Plex Theater be solved with the use of Cultural control? Cultural control is a type of control that encourages mutual monitoring1 and it builds a lot upon group pressure. The main idea of cultural control is to get the employees to watch over each other and to create a culture that has certain things that you specifically do or don’t do. It aims to set up shared beliefs and norms in that company, rules of behaving that everyone abides by. The case of Leo’s Four-Plex Theater has a number of control problems that I can identify. They are as follows: Discrepancies in the cash counts of the ticket booths. Most likely caused by a lack of motivation that leads to employee theft and neglecting of duties. The employees working in the refreshment stand sometimes do not collect cash from customers or doesn’t register the sale on the cash register. This is also most likely caused by a lack of motivation, it can’t be lack of direction since they know what they should do and neither could it be a personal limitation since they know how to operate the machine and how to collect payment. The problem seems to be that they don’t know why they should collect the cash. Test counts reveal that the number of tickets sold or put into the stub box isn’t equal to the amount of customers entering and leaving the theater. This seemed to be caused by three...
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...to maintain position through security needs by task-related activities. After taking the LSI survey my primary and secondary styles of thinking fall under aggressive/defensive thinking. My limiting style of thinking falls under passive/defensive thinking. My primary thinking style, power, measures your self-worth to a degree that we can control and dominate others. Power thinkers lack confidence in others and try to establish their feelings of self-importance. Power thinkers are characterized to be aggressive and to have a rigid way of thinking. Power thinkers have a high need for control, power, prestige, and status. Power thinkers dictate the actions of others and they are threatened by undermined authority. Consequently, the qualities I found to be true about me regarding power is that I have a lot of aggression, lack confidence in others, and I have a high need of control and influence. At work I like to influence my coworkers to strive high and push towards things that they will improve their lives. I like to try and control my relationships and daily activities. Also, I have a tendency of trying to control situations that I have no control over. Furthermore, I disagree with the power style characterization. I use power to keep my daughters in line and my life in order. I...
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...levels are at analyzing the environment? 2. “To manage transactions with the organizational environment effectively, managers should chart the forces in the organization’s specific and general environments, noting (a) the number of forces that will affect the organization, (b) the pattern of interconnectedness or linkages between these forces, (c) how rapidly these forces change, and (d) the extent and nature of competition, which affects how rich or poor the environment is.” (Managerial Implications, p. 73) Conduct a specific analysis of Yahoo’s environment, identifying each of the 4 factors listed above. 3. “Taking that analysis, managers should plan how to deal with contingencies. Designing inter-organizational strategies to control and secure access to scarce and valuable resources in the environment in which they operate is the first state in this process” (Managerial Implications, p. 73) 4. How is Resource Dependence Theory illustrated in Yahoo’s relations with its environment? 5. Illustrate the concepts of symbiotic and competitive interdependence, using Yahoo’s case history. Did Yahoo effectively manage its interdepencies? 6. As a consumer, how would you rate Yahoo against its major competitor Google? Why? Part I. Identification of Problems (2-4 pages) Using only the information provided in the case, identify and explain the problems that the company is having. In...
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...Telstra suffered from an embarrassing situation which risked losing its position of dominance. The main reason for this is that its management structure, that is, classical management. The report will argue that the problem of classical management and offer a recommendation for this situation. From this case, it is clearly to identify the management problem is that classical management. There are some facts, which can prove this. One of the fact is that the organization assets were privatised in a way that allowed the organization to function as a monopoly. In addition, another fact is that Telstra block competitors' access to the network. Both of these examples emphasize Telstra aimed at controlling others. Telstra control market by controlling competitors in order that it is a monopoly. According to William C, the classical management focus is controlling others(1992). In terms of investment, Telstra invest $300 million in upgrading network, and they want to get all providers to use this network. This means Telstra maximize return on investment, they also focus on short-term goals. William C stated that the classical management revolves managers are seen as keepers of scorecards who manage toward short-term goals and they maximize return on investment(1992). All of this facts are in accordance with classical management models. In view of the above-mentioned facts, a recommendation is provided. Telstra should adopt new paradigm management. According to William C, the...
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...the storage of products, and their primary purpose is to maximize the usage of available storage space. Distribution centers emphasize the rapid movement of products through a facility, and they attempt to maximize the throughput. 4. Cross-docking is a process where a product is received in a facility, occasionally married with product going to the same destination, then shipped at the earliest opportunity, without going into long-term storage. This could affect warehousing design as cross-docking is more desirable by allowing more receiving and outgoing delivery doors, or a bigger floor space to handle more product movements. 6. The advantages of private warehousing are: cost is spread over more units of inventory, more control over storage needs, control over product placement within the facility, and access to product whenever the company needs. A few disadvantages are: initial cost is very high, fluctuating demand means loss of productive space, high interest rates cause more cost for financing, and a reduction in the company’s flexibility in relation to their external environment. 11. The trade-off between order-picking versus stock-replenishing is: keeping both teams working on the same floor at the same time will save on managerial personnel being needed, it will also cause congestion. 18. To start with, hazardous materials means that enhanced security focusing on people, facilities, and processes must occur. Secondly, proper documentation and signage needs to be able...
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...INTRODUCTION Every human been has several needs and desires. But no individual can satisfy all his wants. Therefore, people work together to meet their mutual needs which they cannot fulfill individually. Moreover, man is a social being as he likes to live together with other people. It is by working and living together in organized groups and institutions that people satisfy their economic and social needs. As a results there are several types of groups, eg..; family, school, government, army, a business firm, a cricket team and the like. Such formal groups can achieve their goals effectively only when the efforts of the people working in these groups are properly coordinated and controlled. The task of getting results through others by coordinating their efforts is known as management. Just as the mind coordinates and regulates all the activity of a person, management coordinates and regulates the activities of various members of an organization. Every organization, regardless of size, has developed and implemented its own management in order for it to run smoothly and accomplish the vision, goals and objectives it has set forth. As such, the basic function of management, broken down into four different areas, allow for it to handle strategic, technical and operational decisions for the organization. The four function of management are: planning, organizing, directing and controlling. PLANNING Planning is the core area of all function of management. It is the foundation...
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...in our Contemporary Management textbook, our class was assigned to determine if Mr. Edens’ behavior was ethical and acceptable or unethical and unacceptable. Secondly, we needed to provide the rationale for our answers and provide examples. Mr. Edens has created a highly controlled workplace with close manager supervision and surveillance. Even though I don’t agree with this environment, I think Mr. Edens’ behavior has been ethical and acceptable. Lockbox Processing: No Place to Hide Mr. Edens’ company, Electronic Banking System Inc., specializes in “lockbox processing.” Due to the sensitive nature of this financial service, Mr. Edens has implemented many controls to monitor his employees. Workers handle thousands of dollars in checks and cash, and thus they need to be monitored closely. These controls are designed to limit theft which reassures customers that their money is safe. Managers sit at the front of the room on raised platforms; other supervisors watch employees from the rear. While some may consider this approach intrusive, these techniques exist in many workplaces today where employees come in direct contact with money. Mr. Edens’ employees work in an area called “the cage.” No talking is permitted, the windows are covered, and many common items that workers usually have at their desks are banned. Mr. Edens is able to monitor this environment with a series of eight cameras which have the ability to zoom in closer on employee’s activities. Personally...
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...scientific management which is a scientific approach to management that requires all tasks in organizations are analyzed, routinized, divided and standardized in depth instead of using rules of thumb (Buelens et al, 2011). The scientific management was developed because that production at his time was controlled by the workers in terms of the pace and nature of production, which was viewed by him as the cause for inefficient production. He then divided tasks into subtasks and eliminated the unnecessary subtasks to get an optimal time. Each task had to be performed in the best way and workers have no right to choose how to do their tasks (Buelens et al, 2011). Thus, through removing employees’ discretion over the work, managers were able to control over the method and pace of working, and to take the responsibility for planning each activity to ensure that every step was in line with business objectives. Moreover, based on the assumption that workers can not be trusted to perform their jobs diligently, work activities were tightly controlled through supervision and monitoring. However, Taylor believed that people were rational beings who could be motivated through financial incentives. Piece rate reward system was used to reward people when they reached a certain target (Buelens et al, 2011). Critiques of Taylorism mostly come from humanistic side. Although social scientists agree that modern management methods have led to greater material wealth and thus a higher standard of life...
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...with the number of products that are produced for sale. Example of these costs includes wages of production, electricity power to run machines, raw materials and the cost of maintaining inventory. These costs fluctuate depending on the activity of the business and should be controlled for the business to accrue profits. Various strategies can be employed to control variable costs (Bragg, 2011). Products and service provided need to be scrutinized in order to find out the most cost effective one. The costs can be reduced by reducing the production of products that provide least profits while at the same time investing in products that are more lucrative. For example, raw material can be scrutinized to find out the best sources that will be more cost effective in the production of various products. Another way to control the costs is to cut expenditure on fluctuating costs such as employee salaries and advertising costs before targeting the fixed costs like utilities and rent. Reducing fixed costs can put strain on the operational and financial status of the business compared to when variable costs are cut. This control strategy may be challenging especially in the case where there is stiff competition. For instance, to be able to compete favorably in...
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...------------------------------------------------- life is good (case study) FOM September 6, 2014 utban ali I13-0862 September 6, 2014 utban ali I13-0862 Q1.As the top managers of the company what types of issues might Bert and john have to deal with? Be as specific as possible. What management functions might be most important to them? Why? A1. The number of issues and problems they might face may vary from time to time as they depend on a number of things. As the top managers of the company they have to make very important and big decisions such as which market are they going to target and also which partners they have to cooperate. They might face issues relating to communication as if a company wants to progress the top managers have to make sure that their message is delivered to the employees and also that the message of employees is delivered to them. Effective teamwork depends on a culture of open communication, where superiors and subordinates can freely discuss progress and problems. Employees who feel that their bosses are distant or somehow “off limits” have a tendency to make mistakes that could have been avoided had parties felt more comfortable talking to each other. Being Leaders they are often responsible for helping build unity between staff members. It can take a bit of time for workers to develop trusting relationships with one another, and the role of a supervisor or managers is to set the proper framework to encourage these relationships to...
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