ØABED4500 Management Control Systems Course description

In this course, students acquire knowledge of how management control and incentive systems should be designed to achieve value creation in decentralised organisations. The course focuses on mechanisms that different management levels can use to stimulate effort and focus on value creation for the owners in line with the company's strategy. Interaction between formal reward systems and more informal motivational factors is an important topic.

Strategic Human Resources Management.

None.

In order to be able to register for the exam, the student must have the following approved work requirements:

Knowledge

The student has

• insight into the most important issues relating to elements of management control systems
• an understanding of the effect of different goals on the performance of different responsibility centres
• the ability for critical reflection on the relationship between formal reward systems and other forces driving internal and external motivation

Skills

The student is capable of

• applying motivation theory, principal-agent theory, accounting concepts and microeconomic insights to complex management control problems in companies
• relating the choice of management control approaches to the company's strategies at group and entity level

• The reasons for and limitations of management control systems
• Management control organisation: responsibility centre
• Models for transfer pricing and allocating joint costs
• Measuring and controlling resources used
• The control process: planning, budgeting, goal achievement. Multifaceted objectives
• Reward systems
• The link between strategy and management control systems

The course is taught in plenary lectures, and through students working on different assignments.

In order to be able to register for the exam, the student must have the following approved work requirements:

Three written assignments must be handed in by set deadlines during the semester. The scope of the assignment (number of pages) varies depending on the nature of the assignment. If the assignment is not approved, the student will be given one opportunity to submit an improved version. The lecturer will inform students of deadlines for submission.

Written school exam (4 hours). 

None.

Grading scale A to F.

An internal and an external examiner will grade the exam.

A selection of at least 25% of the exam papers will be assessed by two examiners. The grades awarded to exam papers assessed by the external and internal examiner will be used to determine the level of all exam papers.