ADMS 4570 3.0: Management Planning & Control Systems: Fall 2013: Course Outline Section A: Tuesday: 7-10 pm; Vari Hall 3006 Instructor: John Parkinson johnmp@yorku.ca 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%. 9 th 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 th 16 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 Case discussion & analysis: 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 Case discussion & analysis: 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. Case discussion & analysis: 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. 297313. Case discussion & analysis: Game Shop Inc., p. 229 14th October: Week 6: 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 Case discussion & analysis: Diagnostic products Corporation: p. 220 st 21 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 Case discussion & analysis: Zumwald AG, p. 293. 28th October: Week 8: 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 Case discussion & analysis: 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 Case discussion & analysis: Tsinghua Tongfang Co. Ltd. p. 397. 11th November: Week 10: 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 18th November: Week 11: 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 Case discussion & analysis: First Commonwealth Financial Corporation. P. 466. th 25 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. Case discussion & analysis: 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 Case discussion & analysis: 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. 40% of the final grade. It will be open book: it will count