...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 of Project Portfolio Uncertainty: A Managerial Role Perspective Tuomas Korhonen, Cost Management Center (CMC), Department of Industrial Management, Tampere University of Technology, Tampere, Finland Teemu Laine, Cost Management Center (CMC), Department of Industrial Management, Tampere University of Technology, Tampere, Finland Miia Martinsuo, Department of Industrial Management, Tampere University of Technology, Tampere, Finland PAPERS ABSTRACT ■ This article presents empirical results on different managers’ viewpoints regarding the sources and management of project portfolio uncertainty. As a key result, this study demonstrates the versatility of uncertainties experienced by managers, the limited degree of perceived control over them, the use of an almost complete management control package in managing uncertainties, and the necessity of managers’ cooperation in the skilled use of the management control package when managing uncertainties. In addition, a further research agenda is proposed. KEYWORDS: project portfolio management; uncertainty; managerial roles; management control systems; product development INTRODUCTION ■ n their product development, large companies have adopted project portfolio management (PPM) as a means for prioritizing and selecting product development projects among various options as well as allocating resources with the value maximization, balance, and strategic alignment of the portfolio in mind (Cooper, Edgett, & Kleinschmidt...
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...concepts of management control, accounting information systems, performance budgets and the roles of budgets. These general accounting concepts, applicable in both the private and public sector, are used to compose a research framework for analyzing the role of budgeted performance measures in Dutch local government. Organizational and management control Control, next to strategy formulation and objective setting, is one of the critical management processes (Merchant, 1998; Merchant and Van der Stede, 2003). The term “organizational control” has no single generally accepted definition. Literature presents various definitions, describing organizational control as a process (of setting a standard, observing what is happening, comparison of observation and standard, and if necessary, behavior altering communication), or by its main goal (e.g. assuring implementation of strategies). Anthony (1988) has provided a general accepted structure for organizational control. His traditional framework distinguishes three separate and distinct processes; being strategy formulation, management control, and task control. Within this concept, task control and strategy formulation form the boundaries of the management control process. Strategy formulation is the process of deciding on the goals of the organization and the strategies for attaining these goals. Task control is the process of ensuring that specific tasks are carried out effectively and efficiently. Management control fits between...
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...Q# 3 The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming impure blood, processes it and sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human body in normal course and also in crisis. The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries: the managers and the top management. The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems the MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing. The MIS helps the clerical personnel in the transaction processing and answers their queries on the data pertaining to the transaction, the status of a particular record and references on a variety of documents. The MIS helps the junior management personnel by providing the operational data for planning, scheduling and control, and helps them further...
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...CONCEPT, ROLE AND IMPORTANCE OF MIS CONCEPT The MIS is an idea which is associated with man, machine, marketing and methods for collecting information’s from the internal and external source and processing this information for the purpose of facilitating the process of decision-making of the business. MIS is not new, only the computerization is new , before computers MIS techniques existed to supply managers with the information that would permit them to plan and control business operations. The computer has added on more dimensions such as speed, accuracy and increased volume of data that permit the consideration of more alternatives in decision-making process. The scope and purpose of MIS is better understood if each part of them is defined individually, thus 1. MANAGEMENT: Management has been define in process or activities that describe what managers do in the operation for their organization plan, organize, initiate and control operations. They plan by setting strategies and goals and selecting the best course of action to achieve the goals. They organize the necessary tasks for the operational plan, set these tasks up into homogenous groups and assign authority delegation; they control the performance standards and avoiding deviation from standard. The decision-making is a fundamental prerequisite of each of the foregoing process, the job of MIS is facilitating decisions necessary for planning, organizing and controlling the work and functions of the business...
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...management control system targets. Therefore, conventional management control systems focus on getting better operational efficiency. But as operational efficiency is no longer adequate to create sustainable competitive advantages, management control systems must be expanded to managerial practices that cultivate employee cooperation and creativeness in the discovery and development of new business opportunities. This is especially the case in the high-tech industries that are at the faced with the challenges of globalisation and employee teams must combine efficient communication with creativity. ``Project managers and product designers in software and other industries thus need to find ways to divide up products and tasks so that even teams of many of clever people can work and communicate efficiently as well as creatively'' (Cusumano, 1997). Simons (1987 and 1990) argued that control systems is in four categories, namely i. ii. iii. iv. Diagnostic control systems Boundary control systems Interactive systems Belief systems. These four different management control systems are identified recently by companies as effective categories of controlling system, companies must apply them in a way that maximizes operational effectiveness without limiting employee creativity. This task can be accomplished by using diagnostic measures as a way to improve operational effectiveness and the other three types of control measures as a way to mitigate its negative effects on employee creativity...
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...MANAGEMENT SYSTEM Food safety is related to the presence of food-borne hazards in food at the point of consumption (intake by the consumer). As the introduction of food safety hazards can occur at any stage of the food chain, adequate control throughout the food chain is essential. You are required to integrate food safety into Environment, Health and Safety (EHS) management system. Please define the following: a. Correspondence or cross reference between food safety and EHS management system. ISO 22000, published on 1 September 2005, is a new International Standard designed toensure safe food supply chains worldwide and the first of a family on food safety management systems. Food safety management systems – Requirements for any organization in the food chain, provides a framework of internationally harmonized requirements for the global approach that is needed. The standard has been developed within ISO by experts from the food industry, along with representatives of specialized international organizations and in close cooperation with the Codex Alimentarius Commission, the body jointly established by the United Nations’ Food and Agriculture Organization (FAO) and World Health Organization (WHO) to develop food standards. Many organizations that use ISO 22000 systems are now choosing to also implement ISO 14001 and OHSAS 18001 compliant systems due to factors such as demands of government regulations, customers, risk management, market requirements and corporate...
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...Evaluating and Improving Internal Control in Organizations Internal control is a crucial aspect of an organization’s governance system and ability to manage risk. It is also fundamental to supporting the achievement of an organization’s objectives and creating, enhancing, and protecting stakeholder value. High-profile organizational failures typically lead to the imposition of additional rules and requirements, as well as to subsequent time-consuming and costly compliance efforts. However, this obscures the fact that the right kind of internal controls—enabling an organization to capitalize on opportunities while offsetting the threats—can actually save time and money and promotes the creation and preservation of value. Effective internal control also creates a competitive advantage, as an organization with effective controls can take on additional risk. Despite the existence of sound internal control guidelines, it is often the application of such guidelines that fails or could be further improved in many organizations. With the publication, the Professional Accountants in Business (PAIB) Committee aims to provide a practical guide focused on how professional accountants in business can support their organization in evaluating and improving internal control as an integral part of its governance system and risk management. The guidance is complementary to existing internal control guidelines and is based on those internal control matters that often cause difficulties...
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...Project Control Management Assignment Abstract Introduction Section 1: The Trophy Project: Project Controls 1.1 Project Planning and Estimating 1.2 Requirements Definition 1.3 Risk & Issue Management 1.4 Reporting (Cost & Status) 1.5 Integrated Planning Section 2: The Importance of Integrated Planning as a Project Control 2.1 Integrated Planning 2.2 Integrated Planning in BAE Systems Section 3: The Consideration of Human Factors at WCE 3.1 The WCE Strategic Change Programme 3.2 Why Change Programmes Fail Conclusion Abstract Wynn Computer Equipment – a reasonably successful and good business to work for (benefits & salary wise), had been suffering with issues in productivity. These issues were mainly derived from a combination of poor communication, bad planning, a confusing organisation structure and a lack of direction & team morale/ teamwork. The company received a contract for the ‘Trophy Project’ – which was project managed by a previously junior member of staff – Reichart. The project was extremely problematic and was delivered very late and at great cost, mostly due to the poorly executed project control mechanisms within the business (during planning and project implementation). The business could have greatly benefitted from using a more integrated approach to project planning and control- something which BAE Systems finds of great importance to their project management activities. Introduction...
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...SOCIAL AND ORGANIZATIONAL IMPACTS OF A MANAGEMENT INFORMATION SYSTEM The society in which we live has been so profoundly affected by information systems that historians refer to the present time as the information age. This is due to our ability to collect, process, store, disseminate and manipulate large amount of information using information system. A Management Information System (MIS) is an information system that provides corporate information to management of a company. It can also be defined as a computerized system that provides corporate information to aid the management of a company. The role of the MIS in an organization can be compared to the role of heart in the body. The Management Information System plays the role of information generation, communication, problem identification and helps in the process of decision making. The MIS, therefore, plays a vital role in the management, administration and operations of an organization. Since the MIS plays a very important role in the organization, it creates an impact of the organization .The manager’s attention is brought to a situation which is expected in nature, inducing him to take an action or a decision in the matter. It also creates another impact in the organization which relates to the understanding of the business itself. The MIS begins with the definition of data, entity and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the...
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...Health and Safety Management Systems - An Analysis of System Types and Effectiveness EXECUTIVE SUMMARY 1. INTRODUCTION 2. HEALTH AND SAFETY MANAGEMENT SYSTEMS 3. TYPES OF HEALTH AND SAFETY MANAGEMENT SYSTEMS PART ONE: LITERATURE AND FRAMEWORK FOR ASSESSMENT 3.1 INTRODUCTION 3.2 LITERATURE ON TYPES OF HEALTH AND SAFETY MANAGEMENT SYSTEMS PART TWO: CASE EVIDENCE 3.3 SYSTEM TYPES - CASE STUDY FINDINGS 3.4 SUMMARY 4. ASSESSING HEALTH AND SAFETY MANAGEMENT SYSTEM EFFECTIVENESS PART ONE: LITERATURE AND FRAMEWORK FOR ASSESSMENT 4.1 INTRODUCTION 4.2 LITERATURE ON EFFECTIVENESS OF HEALTH AND SAFETY MANAGEMENT SYSTEMS PART TWO: CASE EVIDENCE 4.3 THE TWENTY CASES: CONTENT AND LEVEL OF DEVELOPMENT OF HEALTH AND SAFETY MANAGEMENT SYSTEMS 4.4 THE TWENTY CASES: OUTCOME DATA 4.5 SUMMARY 5. FACTORS SHAPING PERFORMANCE AND THE ROLE OF SYSTEM TYPE 5.1 INTRODUCTION 5.2 BASICS AND EXTRAS 5.3 SYSTEM-RELATED CHARACTERISTICS 5.4 THE ROLES OF THE KEY WORKPLACE PLAYERS 5.5 THE LINKAGES BETWEEN HEALTH AND SAFETY PERFORMANCE AND SYSTEM TYPE 5.6 SUMMARY 6. CONCLUSIONS REFERENCES APPENDIX ONE: CASE STUDY PROTOCOL APPENDIX TWO: ASSESSMENT CRITERIA APPENDIX THREE: CASE SUMMARIES AND SYSTEM TYPES Executive Summary This report examines planned approaches to health and safety management in the workplace. It is the result of a two-year study of enterprise-level health and safety management systems, funded by Worksafe Australia, and conducted from late 1994 to late 1996. The need...
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...in the work. ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization. ISO 9000 The ISO 9000 family addresses various aspects of quality management and contains some of ISO’s best known standards. The standards provide guidance and tools for companies and organizations who want to ensure that their products and services consistently meet customer’s requirements, and that quality is consistently improved. Standards in the ISO 9000 family include: * ISO 9001:2008 - sets out the requirements of a quality management system * ISO 9000:2005 - covers the basic concepts and language * ISO 9004:2009 - focuses on how to make a quality management system more efficient and effective * ISO 19011:2011 - sets out guidance on internal and external audits of quality management systems. ISO 14000 The ISO 14000 series of standards was developed by ISO Technical Committee (TC) 207 for guidance in environmental management systems and tools. As of January 2001, almost 24,000 organizations worldwide had already become registered to ISO 14001, a specification standard for environmental management systems (EMS). The momentum building with ISO 14001 makes it clear that environmental management is becoming the new business priority. Similarities Between ISO...
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...Limitations of the study 8 CHAPTER 02 9 Overview of management control systems 9 2.1Management Control Systems (MCS) 10 2.2Elements of Management Control 11 2.3Boundaries of Management Control 11 2.4 Benefits of management control systems 12 2.5 Limitations of Management control systems 12 CHAPTER 03 13 Management control systems and strategy: 13 A critical analysis 13 3.1 Relationship between Management control systems and strategy 14 3.2 Levels of strategy from organization point of view 14 3.2.1Corporate-Level Strategy 14 3.2.2 Business Unit Strategies 15 3.2.2.1 Business Unit Mission 15 3.2.2.2 Business Unit Competitive Advantage 15 3.4 Responsibility Centers 16 3.4.1 Nature of Responsibility Centers. 16 3.5 types of Responsibility Centers 17 3.5.1 Revenue Centers 17 3.5.2 Expenses Centers 17 3.5.3 Profit Centers 18 3.5.4 Investment center 21 3.6 Concept of Transfer Pricing in relation to Responsibility center 22 CHAPTER 04 23 Budgeting and performance measurement 23 4.1Budgeting as a Control Mechanism 24 4.2Business performance management 25 4.3Balanced Scorecard 26 CHAPTER 05 29 FINDINGS AND CONCLUSION 29 5.1 Findings 30 5.2 Conclusion 30 5.3Bibliography 31 CHAPTER 01 About the report 1.1Introduction To introduce this topic and understanding the importance of management control system we know that in the present globalised world, organizations need to use management control systems that go beyond the strategies that focus on acquisition...
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...ijcrb.webs.com OCTOBER 2010 VOL 2, N O 6 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Management Control System Hamed Armesh Faculty of Management ,MMU,Malaysia Listed in ULRICH S Dr. Habibollah Salarzehi , Dr.Baqer Kord Faculty of Management, University of Sistan and Baluchestan Abstract A management control systems (MCS) is a system which gathers and uses information to evaluate the performance of different organizational resources like human, physical, financial and also the organization as a whole considering the organizational strategies. Finally, MCS influences the behaviour of organizational resources to implement organizational strategies. Keywords: Management , Control , Systems 1. Introduction To introduce this topic and understanding the importance of management control system we know that In the present globalised world, organisations need to use management control systems that go beyond the strategies that focus on acquisition of technology and logistics which are not sufficient to give the organisation sustained long-term competitive edge over its competitors. Management Control Systems (MCS) as defined by Anthony (cited by LangfieldSmith, 1997) is the process by which managers ensure that resources are obtained and used effectively and efficiently in the accomplishment of the organization s objectives . MCS is a system used in an organization which collects and uses information to evaluate the performance of the organizational resources...
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...63 2 CHAPTER TWO IT Governance This chapter helps you prepare for the Certified Information Systems Auditor (CISA) exam by covering the following ISACA objectives, which includes understanding the role IT governance plays in providing assurance. The assurance structure starts at the top with senior management and continues downward through the organization. This includes items such as the following: Tasks Evaluate the effectiveness of IT governance structure to ensure adequate board control over the decisions, directions, and performance of IT so that it supports the organization’s strategies and objectives. Evaluate the IT organizational structure and human resources (personnel) management to ensure that they support the organization’s strategies and objectives. Evaluate the organization’s IT policies, standards, and procedures; and the processes for their development, approval, implementation, and maintenance to ensure that they support the IT strategy and comply with regulatory and legal requirements. Evaluate the IT strategy and the process for its development, approval, implementation, and maintenance to ensure that it supports the organization’s strategies and objectives. Evaluate monitoring and assurance practices to ensure that the board and executive management receive sufficient and timely information about IT performance. Evaluate management practices to ensure compliance with the organization’s IT strategy, policies, standards, and procedures...
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