...Scientific management (also called Taylorism, the Taylor system, or the Classical Perspective) is a theory of management that analyzes and synthesizes workflow processes, improving labor productivity. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs, Shop Management (1905) and The Principles of Scientific Management (1911).[1] Taylor believed that decisions based upon tradition and rules of thumb should be replaced by precise procedures developed after careful study of an individual at work. In management literature today, the greatest use of the concept of Taylorism is as a contrast to a new, improved way of doing business. In political and sociological terms, Taylorism can be seen as the division of labour pushed to its logical extreme, with a consequent de-skilling of the worker and dehumanisation of the workplace. Contents [hide] General approach * Developed standard method for performing each job. * selected workers with appropriate abilities for each job. * trained workers in standard method. * supported workers by planning their work and eliminating interruptions. * provided wage incentives to workers for increased output. Contributions * Scientific approach to business management and process improvement * Importance of compensation for performance * Began the careful study of tasks and jobs * Importance of selection and training ...
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...Principles of Management Control Systems 20 Fo rI B ICFAI UNIVERSITY S U se O nl y C la s s of 09 Principles of Management Control Systems 20 Fo rI B ICFAI Center for Management Research Road # 3, Banjara Hills, Hyderabad – 500 034 S U se O nl y C la s s of 09 The Institute of Chartered Financial Analysts of India, January 2006. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without prior permission in writing from Institute of Chartered Financial Analysts of India. Fo ISBN 81-7881-995-3 Ref. No. PMCS/A 01 2K6 31 For any clarification regarding this book, the students may please write to ICFAI giving the above reference number, and page number. While every possible care has been taken in preparing this book, ICFAI welcomes suggestions from students for improvement in future editions. rI B S U se O nl y C la s s of 20 09 Contents PART I: AN OVERVIEW OF MANAGEMENT CONTROL SYSTEMS Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Introduction to Management Control Systems Approaches to Management Control Systems Designing Management Control Systems Key Success Variables as Control Indicators Organizing for Adaptive Control Autonomy and Responsibility Transfer Pricing 3 15 28 42 57...
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...Principles of Management Control Systems 20 Fo rI B ICFAI UNIVERSITY S U se O nl y C la s s of 09 Principles of Management Control Systems 20 Fo rI B ICFAI Center for Management Research Road # 3, Banjara Hills, Hyderabad – 500 034 S U se O nl y C la s s of 09 The Institute of Chartered Financial Analysts of India, January 2006. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without prior permission in writing from Institute of Chartered Financial Analysts of India. Fo ISBN 81-7881-995-3 Ref. No. PMCS/A 01 2K6 31 For any clarification regarding this book, the students may please write to ICFAI giving the above reference number, and page number. While every possible care has been taken in preparing this book, ICFAI welcomes suggestions from students for improvement in future editions. rI B S U se O nl y C la s s of 20 09 Contents PART I: AN OVERVIEW OF MANAGEMENT CONTROL SYSTEMS Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Introduction to Management Control Systems Approaches to Management Control Systems Designing Management Control Systems Key Success Variables as Control Indicators Organizing for Adaptive Control Autonomy and Responsibility Transfer Pricing 3 15 28 42 57...
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...CFOs role in the diffusion of management control systems 29 May 2015 CFOs role in the diffusion of management control systems Abstract Purpose – this paper aims to review the literature on CFOs and their role in diffusing management control systems. Design/methodology/approach – this paper identifies 41 studies from leading academic journals and evaluates 7 of these studies, which deal with CFOs role in diffusing management control systems. The author analyze both research design and actual findings in the field. Findings – The analysis finds that even though characteristics such as education and tenure is shown to have an effect on the innovation of management control systems, there are also contradictions on which characteristics have a significant effect which opens for further research on the subject. Originality/value – the author synthesize the findings and derive a future research agenda. Keywords – CFO, management control systems, upper echelons, literature review Paper type – literature review 1. Motivation Recent papers (Burkert and Lueg, 2013; Hiebl, 2014) suggests that CFOs have become more powerful in recent years and that they are responsible for the diffusion of management control systems across organizations. To examine the role of the CFO in diffusing management control systems, I review literature with a focus on upper echelon characteristics of CFOs and management control systems, which will allow me to clarify the influence CFO characteristics...
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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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...European Management Journal VoI. 14, No. 6, pp. 596--611, 1996 ~ Pergamon S0263-2 373(96)00056-4 Copyright © 1996 Elsevier Science Ltd Printed in Great Britain. All rights reserved 0263-2373/96 $17.00 + 0.00 Effective Organizational Control'. A Framework, Applications, and Implications ERIC FLAMHOLTZ, Professor of Management, University of California at Los Angeles This article by Eric Flamholtz provides a framework for understanding the nature, role, functioning, design, and effects of organizational control systems. It represents a model of control which can be used to make this process more visible in organizations. It illustrates the practical applications of the model, and suggests its implications for corporate and human resource management as well as for scholars. Copyright © 1996 Elsevier Science Ltd Introduction All organizations (businesses, universities, governments, hospitals) are concerned with channeling human efforts toward attainment of organizational objectives. Regardless of their formal purposes, organizations are composed of people with their own personal interests. Even if these individuals and groups wish to help attain organizational goals, the organization of which they are ,~=r~ must integrate their efforts and direct them toward goals. Thus, organizations must influence or the behavior of people, if they are to fulfil their nd achieve their goals. To help gain control over the behavior of people in formal organizations, most enterprises...
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...Chapter 1 Management and Control Management control is a critical function in organisations. Management control failures can lead to large financial losses, reputation damage and possibly even to organizational failure. Reality shows us (in some examples illustrated on page 3-4) the importance of having good management control systems (MCS). However, adding to much control does not always lead to better control. Some MCS’s in common use often stifle initiative, creativity, and innovation. I.e. in organisations with a lot of bureaucracy a culture with a lack of responsibility can occur and due to the slow, bureaucratic processes people can find ‘creative’ ways to speed up this process. That good MCS’s are important is widely accepted, but within the field of MCS’s there are different views. An old, narrow view of a MCS is that of a ‘cybernetic’ system involving a single feedback loop. You can compare measuring performance with a thermostat; They measure the temperature, compare those measurements with the desired standard, and, if necessary, take a corrective action (turn on or off). This book, however, takes a broader view. It recognizes that may management controls in common use, such as direct supervision, employee-hiring standards and codes of conduct do not focus on measured performance. The focus instead on encouraging, enabling or, sometimes, forcing employees to act in the organization’s best interest. MCS can rather be proactive (to prevent) than reactive. The primary...
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...Knowledge Management. Contemporary Trends and Issues ORGANIZATIONAL LEARNING Povilas Brilius Baifoteka Ltd, Lithuania, povilas@baifoteka.com Abstract: Organizational Learning (OL) is recognized to have established itself as a discipline. However, it remains unclear what it is primarily focused onto – practical problem solving or theoretical descriptive analysis. Due to largely fragmented literature, sometimes interweaving concepts and a variety of attitudes, practitioners find it difficult to easily apply this field, meantime theorists call for more comprehensive understanding of OL. This article focuses on contemporary trends in OL research. It argues and unveils that current OL investigation has made a shift towards holistic and integrative approach in which individual has more powers to make a decision. Article illustrates such contemporary shift of mind by (a) summarizing most important literature in the field (b) providing examples of latest research in OL area. For a smoother analysis, author builds and applies working framework of dichotomies between concepts (dialectical approach). Keywords: organizational learning, contemporary trends, holism. JEL Classification: D800, D830 1. Introduction During the last 50-60 years Organizational Learning (OL) has undoubtedly established itself as a discipline – a number of concepts have been constructed and applied theoretically, numerous schools with distinct models have emerged. However, a question may be posed – to what...
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...This page intentionally left blank Business Performance Measurement Drawing together contributions from leading thinkers around the world, this book reviews recent developments in the theory and practice of performance measurement and management. Significantly updated and modified from the first edition, the book includes ten new chapters that provide a comprehensive review of performance measurement from the perspectives of accounting, marketing, operations, public services and supply chain management. In addition to these functional analyses the book explores performance measurement frameworks and methodologies, practicalities and challenges, and enduring questions and issues. Edited by one of the world’s leading experts on performance measurement and management, Business Performance Measurement will be of interest to graduate students, managers and researchers who wish to understand more about the latest developments in this rapidly changing field. Andy Neely is Deputy Director of the ESRC/EPSRC AIM Research initiative, Professor of Operations Strategy and Performance at Cranfield School of Management, and Visiting Professor of Operations Management at London Business School. Business Performance Measurement Unifying theories and integrating practice Second edition Edited by Andy Neely CAMBRIDGE UNIVERSITY PRESS Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo Cambridge University Press The Edinburgh Building, Cambridge...
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...VIEW Strategic Human Resource Management Taken from: Strategic Human Resource Management, Second Edition by Charles R. Greer Copyright © 2001, 1995 by Prentice-Hall, Inc. A Pearson Education Company Upper Saddle River, New Jersey 07458 Compilation Copyright © 2003 by Pearson Custom Publishing All rights reserved. This copyright covers material written expressly for this volume by the editor/s as well as the compilation itself. It does not cover the individual selections herein that first appeared elsewhere. ii Permission to reprint these has been obtained by Pearson Custom Publishing for this edition only. Further reproduction by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system, must be arranged with the individual copyright holders noted. This special edition published in cooperation with Pearson Custom Publishing. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Please visit our web site at www.pearsoncustom.com ISBN 0–536–72690–6 BA 996748 PEARSON CUSTOM PUBLISHING 75 Arlington Street, Suite 300 Boston, MA 02116 A Pearson Education Company iii iv Table of Contents SECTION ONE ................................................................. 1 An Investment Perspective and Human Resources .... 2 HUMAN RESOURCE INVESTMENT CONSIDERATIONS ...6 INVESTMENTS IN TRAINING AND DEVELOPMENT ..... 14 INVESTMENT PRACTICES FOR IMPROVED RETENTION ..................
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...Accounting, Organizations and Society 28 (2003) 127–168 www.elsevier.com/locate/aos Management control systems design within its organizational context: findings from contingency-based research and directions for the future Robert H. Chenhall Department of Accounting and Finance, Monash University, Clayton, Victoria 3168, Australia Abstract Contingency-based research has a long tradition in the study of management control systems (MCS). Researchers have attempted to explain the effectiveness of MCS by examining designs that best suit the nature of the environment, technology, size, structure, strategy and national culture. In recent years, contingency-based research has maintained its popularity with studies including these variables but redefining them in contemporary terms. This paper provides a critical review of findings from contingency-based studies over the past 20 years, deriving a series of propositions relating MCS to organizational context. The paper examines issues related to the purpose of MCS, the elements of MCS, the meaning and measurement of contextual variables, and issues concerning theory development. A final section considers the possibility that contingency-based ideas could encompass insights from a variety of theories to help understand MCS within its organizational context. # 2002 Elsevier Science Ltd. All rights reserved. 1. Introduction The three purposes of this paper are to provide a review of empirical, contingency-based research as it has developed...
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...Lincoln University, Canterbury, New Zealand Abstract Purpose – This paper seeks to examine the mainstream theories of corporate governance in an attempt to suggest that their underlying assumptions and ideologies are misplaced and ought to give way to an emerging pluralistic view of the governing process in order to understand any governance contribution to the dynamics of the business environment. Design/methodology/approach – The paper engages with the traditional literature and views on governance models from law, business and organisational studies perspectives. It then considers the environment and changes in the environment and how those challenge the relevance of the traditional approach, drawing upon the impacts on the fluidity of management and governance perspectives and practices in the global economy. Findings – The reflections and analysis confirm the view that the underlying assumptions of existing models and regulatory frameworks for governance are misplaced and it is suggested, with reason, that a pluralistic view and framework are better than the current dualistic approach to provide a better understanding of corporate governance in today’s dynamic business environments. Originality/value – The paper develops a new model and framework for governance practice and regulation and seeks to persuade policy makers and commentators that the global business environment needs to recognise and engage with this new model and validate its...
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...Management Accounting Research 19 (2008) 324–343 Operation of management control practices as a package—A case study on control system variety in a growth firm context Mikko Sandelin ∗ Helsinki School of Economics, Department of Accounting and Finance, P.O. Box 1210, FIN-00101 Helsinki, Finland Abstract This empirical case study examines the operation of management control practices as a package in a growth firm context by paying particular attention to the couplings among cultural, personnel, action and results controls. The analysis focuses on two different management control packages in the face of similar contingencies at different points of time. The paper argues that the functionality of a control package depends on internal consistency, specifically on the reciprocal linkages of design and use between a primary mode of control and other control elements. Moreover, it argues that control package variety is driven by the way in which the management responds to functional demands. Two different control packages are considered equifinal to the extent of limited operational complexity, whereas an accounting-centric control package is also sufficient in the face of increasing levels of operational complexity. © 2008 Elsevier Ltd. All rights reserved. Keywords: Management control package; Control system variety; Internal consistency; Functional demands; Equifinality; Growth firm 1. Introduction This empirical case study examines the operation of management control...
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...MANAGEMENT CONTROL SYSTEMS Performance Measurement, Evaluation and Incentives Second Edition Kenneth A, Merchant University of Southern California Wim A. Van der Stede London School of Economics Lffir Prentice Hall FINANCIAL Th,tES An impriil of P Harlow, England . London ' eatson Education New York . Boston . san Francisco . Toronlo Sydney. Tokyo . Singapore. Hong Kong .Seoul. Taipei. New Delhi Cape Town . Madrid . Mexico City . Amsterdam ' Munich . Paris. Mian "@@64wrw MANAGEMENT AND CONTROL in organizations. Management contlol \ fianagemenr conrrol is a critical function o In Aplil 2005, employees at the 75-year-old California-based not-for'-proirt Gemological Institute of America (GIA), the world's largest grader of diamonds, were accused of accepting bribes fi'om large diamond dealers to inflate diarnond grades. Large diamond can lead to large financial losses, r'eputation damage, and possibly even to organizational failure. Here are some recent examples: IYlfaitures dealers rvouid submit proportionally high bids, often 20 to 30qa highel than prevailing bids fol lough stones. knowing that they would be able to sell these stones at a profit because they bribed GIA staff to get a higher-than-deserved grade. A small differ-ence in grade can mean a huge difference in price, often hundreds of thousands of dollars on larger diamonds. The size of the blibes is unknown, but the probe into the allegations...
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