ADMS 4570 3.0: Management Planning & Control Systems

ADMS 4570 3.0: Management Planning & Control Systems:

Fall 2013: Course Outline Section A: Tuesday: 7-10 pm; Vari Hall 3006 Instructor: John Parkinson [email protected]

Textbook: Management Control Systems: K.A.Merchant & W.A.Van der Stede Prentice Hall, 3rd Edition, 2012.

This is a case-based course in how organizations strategize, plan and control their operations. Assessment will be through the following: 1: Analysis and presentation of 2 case studies: 40% (20% each)

2: Participation in class discussions: 20%

3: Final examination 40%. 9th September: Week 1:

Introduction to the course

How organizations choose strategies;

How case studies are analyzed.

Read: Ch. 1: Management & Control

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

Case discussion & analysis:

Private Fitness Inc: p. 20 16th September: Week 2:

Read Ch. 2: Results Control

Kerr, S. The Best-Laid Incentive Plans: Harvard Business Review, 81, #1, January 2003 pp 27-40

Loctite Coompany of Mexico; p. 55

23rd September, Week 3

Read: Ch. 3: Action, Personnel & Cultural Controls.

Rucci, A., S.Kirn & R.Quinn: The Employee-Customer-Profit Chain at Sears: Harvard Business Review: January-February 1998, pp.82-97

Alcon laboratories: p. 112

30th September: Week 4:

Read: Ch. 4: Control System Tightness.

Van der Stede, W.A., The Pitfalls of Pay for Performance: Finance & management, December 2007, pp. 10-13.

Controls at the Bellagio Casino Resort, p. 134.

7th October: Week 5:

Read: Ch 5: Control System Costs:

Merchant, K.A., The Effects of Financial Controls on data manipulation and Management Myopia; Accounting, Organizations & Society, 15, #4, 1990, pp. 297-313. Case discussion & analysis:

Game Shop Inc., p. 229

1st group case is due.

Read: Ch 6: Designing and Evaluation Management Control Systems.

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

Diagnostic products Corporation: p. 220 21st October: Week 7

Read: Ch. 7: Financial Responsibility Centres

Cools, M. & R. Slagmulder, Tax-Complaint Transfer Pricing & Responsibility Accounting, Journal of Management Accounting research, 21 (2009), pp. 151-78

Zumwald AG, p. 293.

Read: Ch. 8: Planning & Budgeting.

Hansen, S.C. & W.A. Vander Stede, Multiple Facets of Budgeting: Management Accounting Research, 15, #4 December 2004, pp. 415-39

HCC Industries. P. 329

4th November: Week 9:

Ch. 9: Incentive Systems.

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

Tsinghua Tongfang Co. Ltd. p. 397.

Read: Ch. 10: Financial Performance Measures and their Effects.

Bebchuk, L., Y. Grinstein and U. Peyer, Lucky CEOs and lucky Directors: Journal of Finance, 65, #6, December 2010, pp. 2363-401 Case discussion & analysis:

Industrial Electronics. P. 435

Read: Ch. 11: Remedies to the Myopia Problem.

Laux, C. & C.Leuz, The Crisis of fair Value Accounting, Accounting, Organizations & Society, 34, # 6/7, August-Ocober 2009, pp. 826-34

First Commonwealth Financial Corporation. P. 466. 25th November: Week 12:

Read: Ch. 12: Using Financial Results Control in the Presence of Uncontrollable Factors.

Bol, J. Subjectivity in Compensation Contracting: Journal of Accounting Literature. Pp. 1-24.

Bank of the Desert (A), p. 543

1st December: Week 13:

2nd group case is due.

Read Chapter 13: Corporate Governance & Boards of Directors.

Rajagoplan, N. & Y.Zhang, Recurring Failures in Corporate Governance, Business horizons, 52, 2009, pp. 545-52

Entropic Communications Inc. p. 590 Assessment:

1: Cases:

The class will be divided into groups, probably of 5 members. From the cases in the textbook that have not been selected for class discussion, each group will pick 2 cases and submit a written analysis in good case format. These will count 20% each towards the final grade.

2 * 20% = 40%.

1st group case is due on 14th October.

2nd group case is due on 1st December.

2: Participation:

During the case analysis and discussion 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 20%.

3: Final exam:

The final exam will be case-study based. It will be open book: it will count 40% of the final grade.