Sem 2 Planning, Control and Management Control Systems
Textbook: ch 1
Management And Control
Management is the process of organizing resources and directing activities for the purpose of achieving organizational objectives.
Functions: product (or service) development; operations; marketing/sales; finance.
Resource: people; money; machines; information.
Processes: objective setting; strategy formulation; control
This books focus on control: the backend of management.
Objective setting: knowledge of objectives is a necessary prerequisite for the design of any control or MCS and indeed, for any purposeful activates.
Strategy formulation: strategies define how organizations should use their resources to meet their…show more content…
2 What are the potential problems in the theatre? What further controls would you implement to minimise them?
Handling of tickets
Attendant failed to collect cash from customers or failed to ring up the sale on the cash register.
Tickets issued of the wrong colour or with the wrong dates in the ticket stub box
A significant number of free theatre passes with Bill Reilly’s signature
Suspicion that the ticket collectors admitting their friends who had not purchased ticket.
Self-interest(manager and employees)
Acting in self interest at the expense of the theatre’s best interests
Size of the business
The theatre is small with a limited budget
Lack of leadership
Management problems at the top
Leo(owner) over-reliant on his nephew Bill
3. Further control
Daily inventory controls-stock taking the number of inventory at open and close of shifts
Introduce video cameras at refreshment stands
Introduce video cameras at ticket booths
Random inspection of stub-box
Computerised ticketing system
Remove Bill(nephew) and hire someone more qualified
Training and development program for employees
Employee incentive scheme (bonuses, awards package)