University of Jordan Faculty of Business 1606747: Management Control Systems in Public Administration Lecturer: Email: Office telephone:

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Course Description This is a graduate level course designed to help students enhance their competency in using management control systems. Since high level management cannot always direct each employees efforts and observe all outcomes, it must utilize a management control system to help guide employees to take optimal action towards proper implementation of the organizations guiding strategy. Management control systems are organizational methods, policies, and procedures that are used to monitor and direct the execution of organizations strategy in order to attain organizational goals. The same

principles can be applied in governmental, non-governmental, profit, and notfor-profit organizations. In particular, the course is designed to allow students to gain knowledge, insight, and analytical skills related to management control systems and strategic implementation. Learning Objectives At the conclusion of this course, the student is expected to be able to: 1. Gain understanding of the main concepts and principles of management control systems

control, steering or process control, and feedback control work in organizations 3. Understand how good planning can provide better control systems.

2. Understand how different types of control systems such as feed forward

Required Text The textbook assigned for this course is Management Control Systems (12th Edition), (McGraw Hill International Edition, 2007), by Robert Anthony and Vijay Govindarajan. The textbook is available at the Academic Center for College Textbooks (opposite the North Gate of the university), telephone 5340383, 5345711, 5332330. Class Format This course will follow a seminar format; therefore, it is expected that each student will read the required reading thoroughly and prepare a summary for the assigned chapter before the class begins. Late submission of the summary will

not be accepted. Also, each student is required to read the cases included at the end of each chapter, and then form an opinion about and prepare for discussion of these cases. Your contribution to class discussion will affect your grade. Each student is expected to be in class before the class starts; this will reflect your seriousness and commitment to this course. If you MUST miss a class for a certain reason, please inform me ahead of time. In addition, each student is required to present to the class an assigned chapter. If you miss your chapter presentation, your grade will be affected. Moreover, you are expected to be well-prepared and ready to discuss the material in detail.

Term Paper Each student is required to choose a Jordanian profit or non-for profit organization for his/her term paper. The main objective of the term paper is to make a comprehensive analysis of the management control system of the organization you choose. The paper should not exceed 10 pages. If you use a published source it must be documented. You will present your case study to the class at the end of term. The due date of the presentations will be agreed upon later in the term.

Grading The students final grade will be based on the total number of points earned out of a total of 100 points for the course. The 100 points are distributed as follows: Class participation, chapter presentation, and chapter summary points points points Midterm exam Term paper 15 30 15

Final exam points points

40 100

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Assignment Schedule

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W 1 2

Date

Topic

Reading

Student

19 Orientation Sep. The Nature of Management 26 Control Systems Sep. Case Study 1-1: Nucor Corporation (A) Understanding Strategies 3 Oct. Case Study 2-4: Cisco Systems (A)

Anthony & Govindarajan Ch. 1 Anthony & Govindarajan Ch. 2

Omar Balouta Samar Yunis Tawfiq al Halaq Noor Matur

13

Responsibility Centers: Anthony & Revenue and Expense Centers Govindarajan Ch. 4 4 10 Oct. Case 4-1: Vershire Company Profit Centers 5 17 Oct. Case 5-1: Profit Center Problems Anthony & Govindarajan Ch. 5

Khaled Shawabkeh Murad Zawahreh Abeer Jibril Amjad al Kmeim

14

Transfer Pricing Case 6-1: Transfer Pricing 6 24 Oct. Problem 7 8 31 Oct. MIDTERM

Anthony & Govindarajan Ch. 6 MIDTERM Anthony & Govindarajan Ch. 8

Ahmad Mubaideen Mohammad Abu Toq MIDTERM Sa'ed al Khadhar Mahmoud Abu Zureiq

Strategic Planning 7 Nov. Case: Allied Office Products

15

Budget Preparation 9 14 Nov. Case 9-1: New York Times Performance Measurement 21 Nov. Case 11-3: CUP Corporation 28 Management Compensation Nov. Case 12-1: Lincoln Electric

Anthony & Govindarajan Ch. 9 Anthony & Govindarajan Ch. 11 Anthony & Govindarajan Ch. 12

Samar Yunis Omar Balouta Noor Matur Tawfiq al Halaq Amjad al Kmeim

10 11

16

Company (A)

Abeer Jibril

12 5 Dec.

Controls for Differentiated Strategies Case: 3M Corporation Service Organizations

Anthony & Govindarajan Ch. 13 Anthony & Govindarajan Ch. 14

13

12 Dec. Case 14-4: Piedmont University

Mohammad Abu Toq Ahmad Mubaideen Mahmoud Abu Zureiq Sa'ed al Khadhar

17

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Case 16-1: Modern Aircraft Company 15 2 Jan. PRESENTATIONS 16 9 Jan. PRESENTATIONS FINAL EXAM: January 16, 2008

26 Dec.

Management Control of Projects

Anthony & Govindarajan Ch. 16

Murad Zawahreh Khaled Shawabkeh

18