Achiyat Ulumuddin Chasan

1464002
Management Control System

Rendell Company

Problem
Mr. Bevins as controller of the Rendell Company predicts a problem with the
relationship between corporate controller and divisional controllers. As corporate controller,
Mr. Bevins see ineffectiveness with the organizational status of divisional controller. All this
time, divisional controller was under order of divisional general managers. Divisional
controller directly reported to the divisional managers. With this role, Mr. Bevins realizes that
divisional controller goal to establish budgets and analyze performance will be very difficult
to pursue. Because with loyalty of divisional controller to the divisional managers rather than
to corporate controller, he thought that adequate information of the divisional performance
will not be given. Mr Bevin wants to change this organizational status adopt Martex
organizational philosophy, which is divisional controller works under control of corporate
controller.

Corporate Controller

Divisional Manager

Divisional Controller
Picture 1 Rendells Controller Organizational Status

Corporate Controller

Divisional Manager

Divisional Controller
Picture 2 Matrexs Controller Organizational Status