Book Description: With its unique range of case studies, real life examples and comprehensive coverage of the latest management control-related tools and techniques, Management Control Systems is the ideal guide to this complex and multidimensional subject for upper level undergraduates, postgraduates and practising professionals.
Traditionally there are two very distinct approaches to teaching management control: 
1) Control taught from an accounting perspective. This approach is seen in the original Merchant and also Anthony & Govindarajan ( McGraw-Hill ).
2) Control taught from a much broader business-based perspective. Often called performance measurement, these modules are taught to general business students/MBA. This is the approach taken by US books such as Simons (PH).
Merchant is unique in that while still approaching control from an accounting perspective, the authors have increasingly balanced this with issues of performance measurement, applying control to decision-making situations in business. Merchant continues to satisfy a steady demand for this balanced approach, not only in Northern Europe, but in Asia, Australia and Canada. And increasingly in the US as well!

Detailed Contents

Preface

PART I

THE CONTROL FUNCTION OF MANAGEMENT

1、Management and Control

  Management and control

  Causes of management control problems

  Characteristics of good management control

  Control problem avoidance

  Control alternatives

  Notes

  Leo’s Four-Plex Theatre

  Wong’s Pharmacy

  Private Fitness, Inc.

PART II

MANAGEMENT CONTROL ALTERNATIVES AND THEIR EFFECTS

2、Results Controls

  Prevalence of results controls

  Results controls and the control problems

  Elements of results controls

  Conditions determining the effectiveness of results controls

  Conclusion

  Armco, Inc. -- Midwestern Steel Division

  Visionary Design Systems: Are Incentives Enough?

  HoustonFearless 76, Inc.

3、Action, Personnel, and Cultural Controls

  Action controls

  Action controls and the control problems

  Prevention versus detection

  Conditions determining the effectiveness of action controls

  Personnel controls

  Cultural controls

  Personnel/cultural controls and the control problems

  Effectiveness of personnel/cultural controls

  Conclusion

  Atlanta Home Loan

  Alcon Laboratories, Inc. (A)

  Axeon N.V.

4、Control System Tightness

  Tight results control

  Tight action controls

  Tight personnel/cultural controls

  Multiple forms of controls

  Conclusion

  Lincoln Electric Co.

  Controls at the Bellagio Casino Resort

5、Control System Costs

  Out-of-pocket costs

  Behavioral displacement

  Gamemanship

  Operating delays

  Negative attitudes

  Conclusion

  Sears Auto Centers (A)

  Disctech, Inc.

  Philip Anderson

6、Designing and Evaluating Management Control Systems

  Understanding what is desired and what is likely

  Decision 1: choice of controls

  Decision 2: Choice of control tightness

  Adapting to change

  Keeping a behavioral focus

  Maintaining good control

  Rabobank Nederland

  Airtex Aviation

  Puente Hills Toyota

PART III

FINANCIAL RESULTS CONTROL SYSTEMS

7、Financial Responsibility Centers

  Advantages of financial results control systems

  Types of financial responsibility centers

  Choice of financial responsibility centers

  The transfer pricing problem

  Conclusion

  Kranworth Chair Corporation

  ToyotaMotor Sales

  Zumwald, AG

  Global Investors, Inc.

  Boise Cascade Corporation

8、Planning and Budgeting

  Purposes of planning and budgeting systems

  Planning cycles

  Performance target setting

  Variations in practice

  Criticisms of companies’ planning and budgeting processes

  Conclusion

  Citibank Indonesia(HBS case no. 9-185-061 ? same as in prior edition)

  HCC Industries (HBS case no. 9-189-096 ? same as in prior edition)

  Borealis (HBS case no. 9-102-048 ? new case)

  Patagonia, Inc. (same as in prior edition)

9、Incentive Systems

  Purposes of incentives

  Monetary incentives

  Incentive system design

  Criteria for evaluating incentive systems

  Group rewards

  Conclusion

  Superconductor Technologies, Inc.

  Loctite Company De Mexico, S.A.de C. V.

  Tsinghua Tongfang

PART IV

PERFORMANCE MEASUREMENT ISSUES AND THEIR EFFECTS

10、Financial Performance Measures and their Effects

  Value creation: the primary goal of for-profit organizations

  Market measures of performance

  Accounting measures of performance

  Investment and operating myopia

  Return-on-investment measures of performance

  Residual income measures as a possible solution to the ROI measurement problems

  Conclusion

  Behavioral Implications of Airline Depreciation Accounting Policy Choices

  Las Ferreterías de México, S.A. de C.V.

  Industrial Electronics

  Berkshire Industries PLC

11、Combinations of Measures and Other Remedies to the Myopia Problem

  Addressing the myopia problem

  Measure a set of value drivers: combination-of-measures systems

  Measure changes in shareholder value directly

  Control investments with preaction reviews

  Use “improved” accounting profit measures

  Extend the measurement horizon (use long-term incentive plans)

  Reduce pressure for short-term profit

  Conclusion

  Catalytic Solutions, Inc.

  Diagnostic Products Corporation

  Bank of the Desert (A) and (B)

  First Commonwealth Financial Corporation

12、Using Financial Results Control in the Presence of Uncontrollable Factors

  The controllability principle

  Types of uncontrollable factors

  Controlling for the distorting effects of uncontrollables

  Other uncontrollable factor issues

  Conclusion

  Olympic Car Wash

  Hoffman Discount Drugs, Inc.

  Formosa Plastics Group, Inc.

  Southern CaliforniaEdison

  Beifang Chuang Ye Vehicle Group

PART V: CORPORATE GOVERNANCE, IMPORTANT CONTROL-RELATED ROLES, AND ETHICS

13、Corporate Governance and Boards of Directors

  The Sarbanes-Oxley Act of 2002

  Boards of directors

  Audit committees

  Compensation committees

  Conclusion

  Pacific Sunwear of California, Inc.

  Financial Reporting Problems at Molex, Inc.

  Golden Parachutes?

  Vector Aeromotive Corporation

14、Controllers and Auditors

  Controllers

  Auditors

  Conclusion

  Don Russell: Experiences of a Controller/CFO

  ITT Corporation: Control of the Controllership Function, 1977 vs. 1991

  Desktop Solutions, Inc. (A): Audit of the St. LouisBranch

  Desktop Solutions, Inc. (B): Audit of Operations Group Systems

  Landale PLC

15、Management Control-Related Ethical Issues and Analyses

  The importance of good ethical analyses

  Ethical models

  Analyzing ethical issues

  Why do people behave unethically?

  Some common management control-related ethical issues

  Spreading good ethics within an organization

  Conclusion、    

  Two Budget Targets

  Conservative Accounting in the General Products Division

  Education Food Services at CentralMaineStateUniversity

  The “Sales Acceleration Program”

  Expiring Software License

  The PlatinumPointeLandDeal

  Lernout & Hauspie Speech Products

PART VI

SIGNIFICANT SITUATIONAL INFLUENCES ON MANAGEMENT CONTROL SYSTEMS

16、The Effects of Environmental Uncertainty, Organizational Strategy, and Multinationality on Management Control Systems

  Environmental uncertainty

  Organizational strategy

  Multinationality

  Conclusion

  Conagra Grocery Products Company

  LincolnElectric: Venturing Abroad

  Teco Electric & Machinery Co. Ltd.

  Driessen Autogroep

17、Management Control in Non-Profit Organizations

  Differences in for-profit and non-profit organizations

  Goal ambiguity and conflict

  Difficulty in measuring performance

  Accounting differences

  External scrutiny

  Legal constraints

  Employee characteristics

  Services provide

  Conclusion

  BostonLyric Opera

  City of Yorba Linda, California

  Waikerie Co-Operative Producers Ltd.

  Universityof Southern California: RevenueCenterManagement System

Index