Additional Information
Book Details
Abstract
As the market-leading text for Management Control and performance measurement, this book will give you a thorough understanding of core concepts and key topics. Including a wide range of international case studies and real life examples means this is the ideal guide for understanding complex topics and bringing this subject to life.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Cover | Cover | ||
| Title Page | iii | ||
| Copyright Page | iv | ||
| Dedication | v | ||
| Brief Contents | vii | ||
| Contents | ix | ||
| Preface | xiii | ||
| Acknowledgements | xvi | ||
| SECTION I The Control Function of Management | 1 | ||
| 1 Management and Control | 3 | ||
| Management and control | 8 | ||
| Causes of management control problems | 12 | ||
| Characteristics of good management control | 15 | ||
| Control problem avoidance | 15 | ||
| Control alternatives | 19 | ||
| Outline of this text | 19 | ||
| Notes | 20 | ||
| Leo’s Four-Plex Theater | 22 | ||
| Wong’s Pharmacy | 23 | ||
| Private Fitness, Inc. | 23 | ||
| Atlanta Home Loan | 25 | ||
| SECTION II Management Control Alternatives and their Effects | 31 | ||
| 2 Results Controls | 33 | ||
| Prevalence of results controls | 34 | ||
| Results controls and the control problems | 37 | ||
| Elements of results controls | 38 | ||
| Conditions determining the effectiveness of results controls | 42 | ||
| Conclusion | 46 | ||
| Notes | 46 | ||
| Office Solutions, Inc. | 48 | ||
| Puente Hills Toyota | 58 | ||
| Kooistra Autogroep | 71 | ||
| Houston Fearless 76, Inc. | 78 | ||
| 3 Action, Personnel, and Cultural Controls | 86 | ||
| Action controls | 86 | ||
| Action controls and the control problems | 91 | ||
| Prevention vs. Detection | 92 | ||
| Conditions determining the effectiveness of action controls | 93 | ||
| Personnel controls | 95 | ||
| Cultural controls | 97 | ||
| Personnel/cultural controls and the control problems | 101 | ||
| Effectiveness of personnel/cultural controls | 101 | ||
| Conclusion | 103 | ||
| Notes | 103 | ||
| Witsky and Associates, Inc. | 105 | ||
| The Platinum Pointe Land Deal | 106 | ||
| EyeOn Pharmaceuticals, Inc. | 114 | ||
| Axeon N.V. | 121 | ||
| 4 Control System Tightness | 128 | ||
| Tight results control | 128 | ||
| Tight action controls | 131 | ||
| Tight personnel/cultural controls | 137 | ||
| Conclusion | 139 | ||
| Notes | 140 | ||
| Controls at the Bellagio Casino Resort | 142 | ||
| PCL: A Breakdown in the Enforcement of Management Control | 168 | ||
| 5 Control System Costs | 173 | ||
| Direct costs | 173 | ||
| Indirect costs | 174 | ||
| Adaptation costs | 182 | ||
| Conclusion | 186 | ||
| Notes | 187 | ||
| Philip Anderson | 189 | ||
| Sunshine Fashion: Fraud, Theft, and Misbehavior among Employees | 190 | ||
| Better Beauty, Inc. | 194 | ||
| Fit Food, Inc. | 206 | ||
| Atlantis Chemical Industries | 212 | ||
| 6 Designing and Evaluating Management Control Systems | 221 | ||
| What is desired and what is likely | 221 | ||
| Choice of controls | 222 | ||
| Choice of control tightness | 229 | ||
| Adapting to change | 230 | ||
| Keeping a behavioral focus | 231 | ||
| Maintaining good control | 231 | ||
| Notes | 232 | ||
| Diagnostic Products Corporation | 233 | ||
| Game Shop, Inc. | 242 | ||
| Family Care Specialists Medical Group, Inc. | 252 | ||
| SECTION III Financial Results Control Systems | 259 | ||
| 7 Financial Responsibility Centers | 261 | ||
| Advantages of financial results control systems | 261 | ||
| Types of financial responsibility centers | 262 | ||
| Choice of financial responsibility centers | 267 | ||
| The transfer pricing problem | 269 | ||
| Conclusion | 274 | ||
| Notes | 275 | ||
| Kranworth Chair Corporation | 275 | ||
| Zumwald AG | 283 | ||
| Global Investors, Inc. | 285 | ||
| 8 Planning and Budgeting | 297 | ||
| Purposes of planning and budgeting | 297 | ||
| Planning cycles | 299 | ||
| Target setting | 301 | ||
| Planning and budgeting practices, and criticisms | 310 | ||
| Conclusion | 312 | ||
| Notes | 313 | ||
| Royal Wessanen NV | 315 | ||
| The Stimson Company | 323 | ||
| Multiple Versions of the Plan | 332 | ||
| Vitesse Semiconductor Corporation | 333 | ||
| VisuSon, Inc.: Business Stress Testing | 342 | ||
| 9 Incentive Systems | 353 | ||
| Purposes of incentives | 355 | ||
| Monetary incentives | 357 | ||
| Incentive system design | 364 | ||
| Criteria for evaluating incentive systems | 365 | ||
| Group rewards | 370 | ||
| Conclusion | 370 | ||
| Notes | 371 | ||
| Harwood Medical Instruments PLC | 374 | ||
| Superconductor Technologies, Inc. | 375 | ||
| Raven Capital, LLC | 384 | ||
| SECTION IV Performance Measurement Issues and Their Effects | 395 | ||
| 10 Financial Performance Measures and Their Effects | 397 | ||
| Value creation | 398 | ||
| Market measures of performance | 399 | ||
| Accounting measures of performance | 401 | ||
| Investment and operating myopia | 404 | ||
| Return-on-investment measures of performance | 406 | ||
| Residual income measures as a possible solution to the ROI measurement problems | 411 | ||
| Conclusion | 413 | ||
| Notes | 414 | ||
| Behavioral Implications of Airline Depreciation Accounting Policy Choices | 415 | ||
| Las Ferreterías de México, S.A. de C.V. | 417 | ||
| Industrial Electronics, Inc. | 421 | ||
| Haengbok Bancorp | 422 | ||
| Corbridge Industries, Inc. | 424 | ||
| King Engineering Group, Inc. | 433 | ||
| Berkshire Industries PLC | 442 | ||
| 11 Remedies to the Myopia Problem | 448 | ||
| Pressures to act myopically | 448 | ||
| Reduce pressures for short-term profit | 450 | ||
| Control investments with preaction reviews | 451 | ||
| Extend the measurement horizon (use long-term incentives) | 453 | ||
| Measure changes in value directly | 455 | ||
| Improve the accounting measures | 455 | ||
| Measure a set of value drivers | 456 | ||
| Conclusion | 460 | ||
| Notes | 461 | ||
| Catalytic Solutions, Inc. | 462 | ||
| Dortmunder-Koppel GmbH | 470 | ||
| Johansen’s: The New Scorecard System | 478 | ||
| Mainfreight | 488 | ||
| Statoil | 501 | ||
| 12 Using Financial Results Controls in the Presence of Uncontrollable Factors | 517 | ||
| The controllability principle | 519 | ||
| Types of uncontrollable factors | 520 | ||
| Controlling for the distorting effects of uncontrollables | 522 | ||
| Other uncontrollable factor issues | 529 | ||
| Conclusion | 529 | ||
| Notes | 530 | ||
| Olympic Car Wash | 531 | ||
| Beifang Chuang Ye Vehicle Group | 532 | ||
| Hoffman Discount Drugs, Inc. | 534 | ||
| Howard Building Corporation, Inc. | 541 | ||
| Bank of the Desert (A) | 554 | ||
| Bank of the Desert (B) | 556 | ||
| Fine Harvest Restaurant Group (A) | 561 | ||
| Fine Harvest Restaurant Group (B) | 565 | ||
| SECTION V Corporate Governance, Important Control-Related Roles, and Ethics | 571 | ||
| 13 Corporate Governance and Boards of Directors | 573 | ||
| Laws and regulations | 574 | ||
| The Sarbanes-Oxley Act | 575 | ||
| Boards of directors | 580 | ||
| Audit committees | 583 | ||
| Compensation committees | 585 | ||
| Conclusion | 586 | ||
| Notes | 586 | ||
| Arrow Motorcar Corporation | 588 | ||
| Golden Parachutes? | 594 | ||
| Pacific Sunwear of California, Inc. | 598 | ||
| Entropic Communications, Inc. | 610 | ||
| Bio/Precise Medical Devices, Inc. | 625 | ||
| 14 Controllers and Auditors | 629 | ||
| Controllers | 629 | ||
| Auditors | 633 | ||
| Conclusion | 639 | ||
| Notes | 640 | ||
| Don Russell: Experiences of a Controller/CFO | 641 | ||
| Desktop Solutions, Inc. (A): Audit of the St. Louis Branch | 648 | ||
| Desktop Solutions, Inc. (B): Audit of Operations Group Systems | 657 | ||
| Andrew G. Scavell, Chief Risk Officer | 660 | ||
| 15 Management Control-Related Ethical Issues | 677 | ||
| Good ethical analyses and their importance | 678 | ||
| Why do people behave unethically? | 682 | ||
| Some common management control-related ethical issues | 684 | ||
| Spreading good ethics within an organization | 689 | ||
| Conclusion | 691 | ||
| Notes | 692 | ||
| Two Budget Targets | 694 | ||
| Conservative Accounting in the General Products Division | 694 | ||
| Education Food Services at Central Maine State University | 695 | ||
| The “Sales Acceleration Program” | 697 | ||
| The Expiring Software License | 698 | ||
| Wired, PLC | 699 | ||
| Mean Screens USA, Inc. | 700 | ||
| Lernout & Hauspie Speech Products | 701 | ||
| Ethics\tCisco | 708 | ||
| SECTION VI Management Control When Financial Results Are Not the Primary Consideration | 719 | ||
| 16 Management Control in Not-for-profit Organizations | 721 | ||
| Corporations, B corporations, and not-for-profits | 722 | ||
| Key differences between for-profit and not-for-profit organizations | 723 | ||
| Goal ambiguity and conflict | 724 | ||
| Difficulty in measuring and rewarding performance | 725 | ||
| Accounting differences | 727 | ||
| External scrutiny | 728 | ||
| Employee characteristics | 731 | ||
| Conclusion | 731 | ||
| Notes | 733 | ||
| SCI Ontario: Achieving, Measuring, and Communicating Strategic Success | 735 | ||
| University of Southern California: Responsibility Center Management System | 746 | ||
| Index | 761 | ||
| A | 761 | ||
| B | 762 | ||
| C | 762 | ||
| D | 764 | ||
| E | 765 | ||
| F | 765 | ||
| G | 766 | ||
| H | 767 | ||
| I | 767 | ||
| J | 767 | ||
| K | 768 | ||
| L | 768 | ||
| M | 768 | ||
| N | 769 | ||
| O | 769 | ||
| P | 769 | ||
| R | 770 | ||
| S | 771 | ||
| T | 772 | ||
| U | 773 | ||
| v | 773 | ||
| W | 773 | ||
| Z | 773 |