Samenvatting - Management Controle en Kostenbeheersing (D9X08A)
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Course
Management Controle en Kostenbeheersing (D9X08A)
Institution
Katholieke Universiteit Leuven (KU Leuven)
De samenvatting omvat het deel Management Controle van het vak Management Controle en Kostenbeheersing gegeven door Filip Roodhooft. Het is een volledige samenvatting en voldoende om enkel deze te studeren voor dit vak, aangevuld met de cases uit de les.
Part 1: Management control and management control systems
1 Introduction to management control
1.1 Management control
= systematic process by which the organization’s higher-level managers influence the organization’s lower-level managers to
implement the organization’s strategies
Decentralization = most important reason for the need for management control (agency theory based)
1.2 Need for control: why?
1. Decentralized managers do not automatically understand the goals and strategies developed by higher level management,
nor how they can contribute to these goals and strategies à als je ze niet kent, hoe ga je dan bijdragen?
Goals:
- Non for profit: mission statement
- For profit:
Financiële doelstelling
o Winst, profitable growth door groei (prijs , volume )
o Shareholder value: EVA (bv. Coca Cola, Siemens)
Financële doelstelling gecombineerd met andere
o Tripple bottom-line: Profit People Planet
o CSR: corporate social responsibility
o ESG: environment, social, government
Strategie = manier om goal te bereiken
2. DM do not automatically agree with organizational goals and strategies developed by HL-M à als we ze kennen, zijn we het
dan eens?
- Principal-agent: verschillende nutsfuncties
- Ze zijn het niet eens owv andere private informatie bv. staan dichter bij de markt
3. DM do not automatically have the resources needed to act with organizational goals and strategies developed by HL-M à
als we het eens zijn, hebben we dan genoeg middelen?
- Resource allocation & juiste persoon op de juiste plaats
1.3 Firm size
Hoe groter een bedrijf, hoe belangrijker MC
Top-down function of MC Bottom-up function of MC
1. Don’t understand Explain S&G in an operational way Report on goal achievement, provide input when goals
G&S are unrealistic
Support coordination across business functions at
decentralized level Enable coordination and cooperation with other
decentralized units
2. Don’t agree Motivate lower-level managers to strive for Facilitate higher-level managers to benefit from the
organizational goals specialized skills and knowledge of lower-level
managers
3. Don’t have the Resource allocation, develop personal skills of lower- Enable lower-level managers to acquire the support
resources level managers: juiste persoon op de juiste plaats and resources to execute their responsibilities
1.4 Management and control
MC (1, 2 & 5) is part of the overall managerial function:
1. Planning: strategie definiëren en plannen wat we nodig hebben
2. Organizing: resources inzetten om planning waar te maken
3. Staffing: juiste mensen op de juiste plaats
4. Leading: anderen motiveren, inspireren
5. Controlling: of we (1) ook bereikt hebben bereikt achteraf
1
,Management controle:
- Integreert deze verschillende dimensies
- Connecteert verschillende niveaus van het bedrijf
- Tools en technieken < management accounting
1.5 Accounting and control
MC uses MA information:
1. Scorecard keeping: performance measurment
2. Attention directing: bijsturen
3. Problem solving: hoe bijsturen > decision making
MA = interne rapportering (redenen: voorraadwaardering + winstbepaling, nemen van beslissingen, aansturing)
Redenen voor een sterke connectie tussen MA en MC:
1. The importance of money as the overall measure of organizational performance = puur financieel
2. The general importance of the organization’s overall accounting system to satisfy the information needs of the
organization’s stakeholders = ook niet financiële, strategische elementen
1.6 Human behavior
MC gaat over het uitlokken van gewenst gedrag van DM; we willen maximale doelcongruentie realiseren, er is echter altijd een
residual loss, anders zijn de kosten van MC té hoog
Managers are motivated by goals or targets that they are asked to achieve
Goals kunnen een positief effect hebben op effort (inpanningen leveren, direction of effort, volhouden)
- When goals are clear and directional (bv. targets op EVA, je moet weten wat EVA is)
- When goals are not too distant (haalbaar, distant in time: heb je er zelf impact op?)
- When achievement is valued positively
Attention points:
- Goals should be aligned with strategy
- Multiple goals reduce clarity and direction à niet te veel verschillende goals
- Goals may be seen as a threat; moeten haalbaar zijn
Managers are motivated by rewards that they get from their efforts
Rewards are the price paid for products and services of managers (financial/not financial):
- Variation in their dependence on output
- Controlled by labor laws (je kan niet zomaar doen wat je wil)
- Variety across firms and functions
Aandachtspunten:
- Reward mag niet gezien worden als een fixed salary
- Rewards kunnen interne competitive verhogen
- Performance en rewards moeten gematcht worden in tijd > reward op hetzelfde moment als goede performance
Managers are motivated by the social context in which they work = informal
Externe factoren: work ethics, locatie (bv. Silicon Valley) /= social context per sector bv farma vs bouwsector
Interne factoren: organizational culture, management/leadership style, tone-at-the-top
Aandachtspunten:
- Culture explains control differences (zie 3.4 national culture)
- Culture explains that organizations are not easily changed
- Culture can also be used as a control bv J&J
2
, 2 Designing management control systems
2.1 Objects of control à waarop willen we een impact?
Control of..
- The individual DM
- The management team the manager is part of
- The unit that the management team supervise
- All units with management teams
- The whole organization
2.2 Elements of control
Control device à entity being controlled:
- Detector: rapporteren waar we nu staan, actuals (thermometer)
- Assessor: vergelijken met een standaard bv. budget of met variantieanalyse (temperatuur vergelijken met gewenste)
à hoe standaard zetten?
- Effector: bijsturen, coordineren (airco activeren of verwarming hoger zetten)
à interventie is niet automatisch, vergt interactie met anderen => coordinatie nodig
2.3 Control model
Drie niveau’s:
1. Manager/inputcontrole
= juiste persoon op de juiste plaats
§ Staffing, recruitement, strategische jobs
§ Development, competence management, opleidingen geven,
introductieprogramma’s
§ Culture building: warden van de organisatie zodat mensen
deze kunnen naleven
2. Decisions/effort/troughput controle
= impact op beslissingen van manager, gedrag inperken
§ Delegation of authority: wie mag wat doen (authority matrix: tot welke euro mag wie wat uitgeven)
§ Delegation of responsibility: decentralisatie
§ Prescribing behaviors: regels, procedures bv. code of conduct, prikklok
3. Results/output/performance controle = belangrijkste
§ Stating performance targets: KPI’s
§ Linking performance to rewards: pay for performance
§ Linking performance to promotion
Opmerkingen:
- In elke organisatie: combinatie van de drie niveaus
- Voor elk van de elementen kijken: loose vs tight control
- In control vs out of control (goed vs slecht)
2.4 Strategy, management control and task control
Management control activities:
- Planning what the organization should do
- Coordinating the activities of several parts of the organization
- Communicating information
- Evaluating information
- Deciding what, if any, action should be taken
- Influencing people to change their behavior
3
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