We will be also tackling the roles, functions and responsibilities of a controller in an organization. This case takes us into Rendell Company which is currently having problems between the corporate controller and the divisional controller. We assessed the advantages and disadvantages of the organization structure of Martex whether it can be applied and be implemented to Rendell Company in order to resolve the problem.
Our focuses are to answering the questions given in the book and find the most applicable solution for the questions stated in the Management Control System Book by tracing the existing facts provided.
It is expected that the findings and solutions that we made will contribute to the people who has the similar issues. James Hodgkin became company president inpreviously as controller and on and vice president in Fred Bevins, who was an assistant controller before, replaced Hodgkin after Hodgkin was promoted as Rendell company case study vice president.
Rendell company has seven operating divisions: Each division is responsible for manufacturing and marketing sections in each production sector. Although the number of parts and components transferred between divisions, business volume is not large division.
Organizational corporate controller in has a responsibility, especially in terms of 1 financial records, 2 internal auditing, and 3 the analysis of the capital budget request. Personally, as a controller, Hodgkin took an active role Rendell company case study reviewing budget performance reports and studies the divisions and hires some people to help his analysis.
While Bevins continues to move in the same direction as his promotion as the new controller. In the corporate organization was beginning to be well staffed to be able to give careful attention towards the information submitted by the divisions.
The division controller directly reports to the divisional general manager. But the controllers are always encouraged to consult prior to the appointment of the controller division. In addition, he also consulted in relation to the increase in the salaries of the controller division.
The specified corporate controller function on the recording system in which the divisions are expected to conform to the general procedures related to budgeting and performance reporting.
However, the implication is clear that the performance of the division of budget reporting is accountability division general manager, division controller that acts as a staff assistant in preparing the document.
To understand more about Rendell environment, we will analyze the internal environment of Rendell Company. So below here are the strength and weakness that Rendell have regarding those Rendell structures of controller and divisional manager.
With control division reports directly to the division manager, enabling issues to be quickly resolved and based on the latest information. Critical assessment helps to reduce the over-budgeting and implement a new control program easier. It is possible for the Division Manager to hide financial information.
The Division Controller may not be independent and make the information among it biased.
Theoretical Behavior in Economics Management control systems affect human behavior. Good management control system in such a way as to influence behavior has a purpose that is consistent; meaning individual actions 3 undertaken to achieve personal goals will also help to achieve organizational objectives.
Or this could also be called as goal congruence. Goal Congruence Goal congruence indicates that the individual within an organization are not against the interest of organization even when those individuals have their own self-interest.
In a goal congruence process, the actions people are led to take in accordance with their perceived self-interest are also in the best interest of the organization.
There are two things which influences the goal congruence, informal factors and formal factors. Both formal and informal factors influence human behavior within an organization; they affect the degree to which goal congruence could be achieved.
External Factors External factors are the norms regarding the expected behavior in the community, where the organization is a part.
These norms include attitude, which collectively often called as EOTS work, which is realized through employee loyalty to the organization, tenacity, passion and pride owned by employees in performing their duties. Culture The most important internal factor is the organization's own culture- the common beliefs, shared values, norms of behavior and assumptions that are implicitly and explicitly manifested throughout the organization.
Cultural norms are extremely important since they explain why two organizations with identical formal management control systems, may vary in terms of actual control. A company's culture usually exists unchanged for many years.
Management Style Internal factor, which may have the most powerful impact on management control, is management style. Typically, subordinate attitudes reflect what they perceive as their superior attitude, and the attitude of the boss in the end rests on what the attitude of the CEO.
Informal Organization 4 The lines on the organization chart describing the formal relationships, the shareholders authorized the authority and responsibilities of any management.
The chart may show, for example, that the production manager of Division A reports to the general manager of Division A. But in the course of fulfilling his or her responsibilities, the production manager of Division A actually communicates with many other people in the organization, as well as with other managers, support units, the headquarters staff, and people who are simply friends and acquaintances.
In extreme situations, the production manager, with all these other communication sources available, may not pay adequate attention to messages received from the general manager; this is especially likely to occur when the production manager is evaluated on production efficiency rather than on overall performance.
The realities of the management control process cannot be understood without recognizing the importance of the relationships that constitute the informal organization.Rendell Company Case Study Executive Summary This report will give us a clear perspective as to what the optimal organizational structure that suits Rendell Company plus some additional control system in attaining the company’s main objectives.
I. Case Context. Rendell Company is experiencing some difficulties in implementing its modern control techniques due to the irking relationship between the divisional controller and the corporate controller (Mr.
Bevins) resulting in an added fat to the organization's budgets.3/5(2). Rendell Company Management Control System Study Case Irvine Farhanan, Amanda Talitha Rahmadita, Aldo Pranata , , Accounting, Faculty Economics and Business, Padjadjaran University Jalan Dipatiukur no 35, Bandung, Indonesia.
[email protected] Abstract This. Rendell Company Case Study. Executive Summary This report will give us a clear perspective as to what the optimal organizational structure that suits Rendell Company plus some additional control system in attaining the company’s main objectives/5(1).
Rendell Company Management Control System Study Case Irvine Farhanan, Amanda Talitha Rahmadita, Aldo Pranata , , Accounting, Faculty Economics and Business, Padjadjaran University Jalan Dipatiukur no 35, Bandung, Indonesia.
Rendell Company Case Study This Case Study Rendell Company Case Study and other 64,+ term papers, college essay examples and free essays are available now on regardbouddhiste.com Autor: review • June 15, • Case Study • 4/4(1).