Question 1: a) under what conditions is this principle valid in the design of management control systems?
1) Management by objective: the objective of the control system is to promote goal congruence, therefore the goals of the organization must be in congruence with the goals of an organization’s individual. If the system does not identify all relevant goals and seek to control them. Then people may simply channel their efforts toward some other direction. 2) Design of incentive system: The organizations should have a system to provide the incentive reward for a good result. And, they need to make sure the systems that do not create temptation. 3) Decentralization (empowerment): The authority of decision making should pass from the top to the bottom. The delegation of authority is required. 4) Three conditions where results control work best: Firstly, managers can clearly define and control each employee’s major areas of responsibilities in terms of the results expected of them. Secondly, managers must be able to measure the results effectively. Thirdly, the individuals whose behaviors are being controlled must have significant influence on the results in the desired performance dimensions.
b) Do these conditions apply in universities? Discuss.
Condition applied in universities: 1) Decentralization: The University is a large organization, it may include school, department and program structure. Therefore, it is important to make decision rapidly. By decentralization, it allows faculty and managers from different departments to interpret their own performance. For example, deans can decide which course will be offered and faculty can raise fund for the new research program. Since the closer decision makers is to relevant information, the better the decisions to be made would likely be. 2) Measurement of Responsibility: each departments of universities has accountability and responsibility for their own result. Managers of revenue centers are held...