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Ms-43 December 2009 Management Control Systems

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December, 2009

MS-43 : Management Control Systems

1. Emphasize the importance of behavioural dimensions in Management Control Systems (MCS). For understanding the behavioural dimensions in relation to MCS which styles of management are crucial and under what conditions ? Explain.

2. What is the need for responsibility centres in an organisation ? Discuss the various types of Responsibility Centres.

3. Explain the Arm's length principle and discuss the comparable uncontrolled price (CUP) method giving a suitable example.

4(a) Discuss the important issues that need to  be examined and sorted out before developing the detailed budgets.

(b) What do you mean by a Balanced Score Card ? Discuss its advantages and the process of creating it.

5. What do you understand by Profit Centre ? Discuss the different issues that need to be looked into if Bank branches are to be treated as Profit Centres.

6. What do you mean by Business Process  Reengineering (BPR) ? Discuss the seven principles proposed by Hammer for reengineering and integration. What changes occur within an organization by the application of BPR ?

7. Explain the following statements :

(a) 'Five metaphors of control help not only in understanding the control process in organisations but also in designing the control systems'.

(b) 'Budgetary control system or any MCS cannot be operated unless the human factor in Management is given adequate consideration'.

(c) 'In performance appraisal the management should distinguish between performance of the manager and performance of the unit as an economic activity'.

(d) 'MIS is essentially a managerial tool for decision making, performance review and performance measurement'.

8. Write short notes on any four of the following :

(a) Cybernetic Paradigm

(b) Marketing Intangibles

(c) Economic value added

(d) Benchmarking

(e) Master Budget

(f) Knowledge organisations

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