Case Briefing-AirTex Aviation and Inland Steel Company

2. Prepare a list of the controls described in the case. What control problems are they designed to address? Are the managers interviewed for the case justified in being proud of their company’s control system? Why or why not?

Airbus was planning to introduce the A380 in direct competition to Boeing 747 to compete in the large aircraft sector. The rivalry between Airbus and Boeing was already intense. Boeing’s market share reduced from 70% in 1974 to 45% in 1990 while Airbus’s market share had increased from 1% to 34% during the same time (Exhibit 5). Encouraged by this increase in market share, Airbus was contemplating the introduction of A380. Development of new product line is extremely expensive in the Aircraft sector. Following is a quantitative analysis of the project to calculate the risks involved in introducing a new line of Aircrafts.

The design and implementation and objectives of company controls are not adequate to meet the control objectives. The control environment control objective is ineffective. This control objective lacks a written policy on ethical conduct, is lacking oversight from the board of directors and audit committee, lacks a consistent style and philosophy from management, and lacks a strong commitment to competence. The risk assessment control objective is effective but lacks any antifraud program and controls. The information and communication control is ineffective. A virus has been detected and is affecting the files of the company. This control is lacking a strong IT department. The general controls financial reporting control objective is effective but is weak in detecting or preventing material misstatement. The monitoring control objective is ineffective; this control has need of an internal auditor.

Overall Strength: in general, the article provides structure to a concept that is very intangible by: (a) describing the nature and the functions of control; (b) segregating the MCS into categories: core control system, organizational structure, and organizational culture; (c) illustrating how to apply the control model (satisfied my approach) (d) provides a basis for designing and evaluating the system. The manner, in which the model is presented, with its use of figures, further emphasizes the structure of the model. See below on further emphasis on parts (a) -(c).

To maintain the excellent services and infrastructure enjoyed by the City of Urbanopolis, it is vital to ensure that the budget meets the demands of these services and infrastructure. Since most of the budget is tied up within labor payments, this should be the first focus of restructuring in terms of budget. It is therefore important to find a way to better balance the budget so that vital equipment and infrastructure requirements can be met. The request for new computer equipment, for example, has been denied, and the department is obliged to work with second-hand and/or outdated equipment. This, in turn, affects the way in which the department is able to function, which is not effective or acceptable in the long run. Several positions have been identified for elimination in the new financial year. However, my policy for restructuring human resources budgets is to match the skills and enthusiasm for each job description with the potential elimination of the position. Hence, my policy will be to change the description and statuses of some positions to maintain employees who have shown themselves to be worthy of their positions while either negotiating with or eliminating the positions of those employees who have not.

First, it illustrates a control system that is dominated by action and personnel controls, rather

Carlson Rezidor Hotel Group, like most large organizations, uses all four forms of control identified by Knights and Willmott (2012); Direct control of behaviour, control through

First, it illustrates a control system that is dominated by action and personnel controls, rather

Problem: Bachand was particularly concerned about how best to motivate the managers of a corporate-owned store given that they did not share in its ownership. He wondered what control system features would make sense for the Corporate Owned stores?

Juarez requires improvements in quantity production, and problems with quality control, 3D printers, and shipping/damage. To increase the quantity of toys produced, they need more hours of training, and their equipment and process needs to be inspected and reviewed to determine why they had the largest amount of issues with quality control, 3D printers, and shipping/damages. While Dayton requires review into why their costs where the least favorable compared to standard. These types of actions fall under different types of control, pre, concurrent, and feedback. Pre-control occurs before the work is performed and is aimed at eliminating behavior that causes unfavorable results, such as training, while concurrently refers to employee performance or functioning equipment, and feedback refers to the post performance against standards (Omran, 2005, p. 32). Although corrective actions are to be taken due to deviations from the plan, there are other methods of determining deviations from the standard.

Downsizing has become a commonplace strategy for organizations to adopt in an effort to cut costs, eliminate redundancies, and streamline organizational systems. Over the last 15 years, many organizations have engaged in downsizing more than once. Most companies have learned from the mistakes of the past, but some companies are still trying to use the same tactics today that were used in the mid 1980s, that leave employees reeling.

In the middle of 1990’s, Boeing began its plan of acquisitions and in 1996 it paid $3.2 billion for the aerospace and defense holdings of Rockwell International which was responsible for the Space shuttle and International Space Station programs, as well as activities in launch systems, rocket engines, missiles, satellites and military airplanes. Furthermore, in 1997 Boeing completed a $14 billion acquisition of McDonnell Douglas which was the world’s number three maker of commercial aircraft. The acquisition

Tight or rigid control systems may be detrimental to performance if the technology requires fast responses or new innovative solutions. In contrast a control system that is loose and open to encourage innovation and communication may work against the organisation if the use of technology requires standard responses and is used in a rigid fashion. The way that technology is used must be considered when regarding the management control system within the organisation.

1. Coordination. The size of modern organisations is quite large. A large amount of capital and large number of people are employed in them. This complicates the problem of control as there are many units producing and distributing different products. In order to coordinate their activities, an efficient system of control is necessary.

So Ted thinks that it is important to educate the department managers to the new management approach wanted by him and Franck. Ted decided to make the control system represent reality and his personal role would then be that of an emotional leader as opposed to a task leader. Control system would be the task leader and Ted could avuncular personal leadership. He also thinks that decentralized decision making environment is very important. He thinks that without control system Altex would never survive.