MGT D54 MANAGEMENT CONTROL SYSTEMS FALL - 2011

Instructor Contact Information: Name: Douglas Kong Office: IC 362 Email: kong@utsc.utoronto.ca Telephone: 416-208-2694 Class day/time: Monday (7-9 pm) Class location: IC204

Course Description: This course develops a thorough understanding of planning and control systems in organizations, with an emphasis on behavioural implications as well as reviewing a number of different specific tools and techniques used for control purposes. The course will emphasize decision-making through the analysis of case studies both in written submissions and classroom discussions. Prerequisite(s): MGT B03 (Management Accounting) MGT B23 (Managing People in Organizations) MGT B29 (Managing Groups and Organizations) Textbook/Required Course Materials: Anthony & Govindarajan, Management Control Systems, 12th edition (Irwin, 2006) (henceforth referred to as AG) Lecture Notes and Other Announcements: All the lecture notes and announcements for the course will be posted on the intranet. It is the responsibility of the students to check the intranet at least once a week to ensure that no major announcements are missed.

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada www.utsc.utoronto.ca/mgmt

Evaluation and Grading: Component Class Participation Group Case Analysis Group Project Final Exam Total Weight/Value 10% 30% 20% 40% 100% Individual Groups of 3 Groups of 5 or 6 Individual Due Date Every Class Assignment 1 Oct 17 Assignment 2 Nov 21 Nov 28 Final Exam Period

Class Participation This course will be taught via the "case method". This approach demands that students come to class prepared to discuss the case(s) in depth, that is: -state and define the problem(s) -submit alternatives with the advantages/disadvantages of each -submit recommendations Active student participation is expected and necessary for this type of course to be successful. Group Case Analysis Working in groups of 3, you will be responsible for handing in two written case analyses during the term. The case analysis is to be submitted at the beginning of the class and will not be accepted by fax, email or on disk. Late assignments will not be accepted. The case should be typed, double-spaced on letter-size paper with 12 point New York font or equivalent. Maximum length is 8 pages, exclusive of the executive summary, tables, appendices and references. A cover sheet should provide the following information : Case Title; Date; Course Number; Names of Students who worked on the paper. Outside sources (articles, books, interviews, etc.) are encouraged but not required. Any references should be listed in a bibliography at the end of the paper. The instructor will discuss with you in more details regarding which 2 cases will need to be handed in. The organization and presentation of the paper is up to the individual groups. However, the first page of the submission should present an "Executive Summary" which is a very brief presentation of the major issues identified and a concise summary of the group's analysis and conclusions/ recommendations. The questions at the end of a case are not to be answered specifically. They should be used for guidance only. The report should be a critical review of the basic control issues in the case and, where appropriate, an outline of possible alternatives and recommended actions/changes.

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada www.utsc.utoronto.ca/mgmt

In writing the case analysis, you should make the assumption that the marker has read the case and that there is no need to fully describe the contents of the case. Rather, identification of issues and specific recommendations are the major concern, using case facts to add support. Though you should not be wasting time repeating case text, you should properly but concisely back up your analytical points. Do avoid excessive use of involved sentence structure and jargon. GROUP PROJECT : The research project is a significant component of this course. The objective of this project is to give students the chance to see how management control concepts apply/are put into practice in real life and to compare this to what is learned in theory from class, textbooks and literature. Working in groups of 5 (no more than 6 students), this group project relates to management control applications. It involves a written report at a minimum of 8 pages and no more than 12 (excluding appendices, standard fonts, double spaced) as well as a 10 minute group presentation with 2 minute question and answer period (depending on class size). Both are due in week 11. Groups are advised to prepare the presentation in a professional manner with overheads, powerpoint presentations, etc. if necessary in advance. The written paper and presentation each weighs 50% of the total project. The written paper will be graded for quality analysis, presentation, organization of thought, understanding of context and originality of ideas. The presentation will be graded for organization, presentation of key ideas, understandability, creativity and originality. For the project, each group is required to identify a company to prepare a case study of the companys management control system. Your final report should include (1) a description of the company and its context, (2) an overview of the Management Control System, in place, (3) an analysis of the Management Control System using the concepts in the course, (4) your evaluation of the effectiveness of the Management Control System, given the companys strategy etc., and (5) any recommendations for improvement that are warranted. FINAL EXAM: The Final Exam will be held in the regularly scheduled examination period. The format of the Exam would include 1 single case similar to the ones discussed in the class. Students will be responsible for all the assigned content of the text, as well as any additional items and handouts discussed in class.

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada www.utsc.utoronto.ca/mgmt

For the final exam, i. Students who require special accommodations and arrangements for writing the examination should be in contact with the Accessibility Special Services Office to ensure that arrangements can be made on a timely basis. ii. According to the Academic Regulations of UTSC (please refer to http://www.utsc.utoronto.ca/courses/calendar02/Academic_Regulations_(Part_III).html), if students are scheduled to write two final examinations at the same time, they should report their conflicts to the Assistant Registrar (Scheduling) (Room S416A, 416-287-7540). Arrangements will normally be made for students to write both examinations on the same day, with a supervised break. Where the conflict involves a St. George Campus course, arrangements will normally be made for both examinations to be written at University of Toronto at Scarborough. Requests for such arrangements must be made no later than two full weeks before the commencement of examinations and will not be considered after that time. iii. Students scheduled to write final examinations in three consecutive time slots (these are morning, afternoon, and evening) may request special arrangements. Requests for such arrangements must be made with the Assistant Registrar (Scheduling) no later than two full weeks before the commencement of examinations. Requests will not be considered after that time. iv. The final examination must be written in ink. Policy on Missed Assignments: No late assignments will be accepted. All assignments must be submitted at the beginning of the class. Academic Support The Department of Management, in collaboration with the UTSC library, will be providing academic research support in the IC Building. To refine your research skills or to learn more about various scholarly resources, please contact the Librarian for Management and Economics students. Lola Rudin, Subject Librarian, Management and Economics Room IC375 Office hours: Monday & Thursday, 1:00 3:00pm or by appointment Email: lrudin@utsc.utoronto.ca Web: http://guides.library.utoronto.ca/utsc_mgmt

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada www.utsc.utoronto.ca/mgmt

The English Language Development Centre (ELDC) helps students develop the critical thinking, vocabulary and academic communication skills essential for achieving academic and professional success. Personalized support includes: RWE (for academic writing); Communication Cafs (oral); Discussion Skill-Building Cafs; Vocabulary Cafs; seminars/workshops; personal ELD consultations; drop-in sessions. http://ctl.utsc.utoronto.ca/eld/ The Writing Centre (TWC) offers invaluable services to students (learn to become a better writer!) and offers many different kinds of help: drop-in sessions, individual consultations, workshops, clinics, and online writing handouts. http://ctl.utsc.utoronto.ca/twc/ Academic Misconduct Students should note that copying, plagiarizing, or other forms of academic misconduct will not be tolerated. Any student caught engaging in such activities will be subject to academic discipline ranging from a mark of zero on the assignment, test or examination to dismissal from the university as outlined in the academic handbook. Any student abetting or otherwise assisting in such misconduct will also be subject to academic penalties.

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada www.utsc.utoronto.ca/mgmt

Detailed Course Outline: DATE 1-Sept 12 TOPIC & READINGS 1: The Nature of Management Control Systems CASES Leos Four-Plex Theater (Handout) Case 1-2; 2-3 Case 5-4 Zumwald AG (Handout) Pantagonia Inc (Handout) Case Assignment 1 Due DUE DATE

2-Sept 19 3-Sept 26 4-Oct 3 Oct 10 5-Oct 17

2:Understanding Strategies 3:Behaviour in Organizations 4:Responsibility Centers: Revenue & Expense Centers 5:Profit Centers 6:Transfer Pricing 7:Measuring & Controlling Assets Employed Thanksgiving Day No Class 8:Strategic Planning 9:Budget preparation 10:Analyzing Financial performance Reports 11:Performance Measurement 12:Management Compensation

6-Oct 24 7-Oct 31

8-Nov 7 9-Nov 14 Nov 16 10-Nov 21

11-Nov 28 12-Dec 1 Dec 2 6 Dec 7 - 20

Formosa Plastic Group (Handout) Superconductor Technologies Inc. (Handout) 13: Controls for Differentiated Strategies Case 13-3 16:Management Control of Projects Case 16-1 Last Fay to drop F courses without academic penalty 15:Multinational Organizations Citibank Indonesia (Handout) Group Project Presentation 14:Service Organizations & Review Case 14-1 Study Break No Classes Final Exam (40%) Time and Location (TBD)

Case Assignment 2 Due Group Project Due

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada www.utsc.utoronto.ca/mgmt