ADMS 4570 3.0: Management Planning & Control Systems:
Winter 2014: Course Outline
Section M: Tuesday: 4-7 pm; TEL 1016
Instructor: Babar Khan bkhan@schulich.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%.
7
th
January: 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
14
January: 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
21st January, 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
28th January: 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.
4
th
February: 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
11th February: 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
th
25
February: 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.
4th March: 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
11th March: 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.
th
18
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
25th March: 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.
1
st
April: Week 12:
2nd group case is due.
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
2st December: Week 13:
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 11th February.
2nd group case is due on 1st April.
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