Assignment Questions:

1. Where is the theater’s control system lacking?
The main problem of theater’s control system is in Management control, especially in Motivational problems. Employees are not motivated enough to generate profit. Moreover, you shouldn’t forget about strategic control, because as said in the book “strategy may have become obsolete… in more dynamic environments” p. 8. which will cause even more problems in the future.

2. Are the controls themselves weak or incomplete, or are the theater’s problems caused primarily because of lack of discipline in using the existing controls?
In my opinion, heather’s controls themselves weak and incomplete. That leads employees to fraudulent operations such as giving out drinks for free or letting people enter the theatre without tickets. It is proved by research that “between 10 and 20 % of a company’s employees will steal anything that isn’t nailed down”. p.11.

3. What control improvements would you suggest for Leo’s Four-Plex?
In order to perform a “Good Management Control” Leo should complete following points: 1. Solve problem of “Lack of responsibility”.
There is no manager in movie theatre who is responsible for everything, who will keep an eye on every employee and who will make employees operate in appropriate way. 2. Solve problem of “Motivation”. Leo should think of “ how MCSs can be employed to motivate positive and productive behavior”p. 11 of his employees. This could be reached by implementing bonuses to avery employee, which are going to be based on sales. Or provide commission-based addition to salary, which will motivate employees to generate as much profit as they could and to be more responsible for Leo’s Four-Plex. 3. Solve problem of absence of “Automation” 1) The way that Leo’s Four-Plex selling and recording customers is too old. Computers help