Note: Attempt all the questions
Q 1
(a) Define and Explain Management Control System (MCS). Discuss the Nature and Scope of MCS in terms of components
of Management and explain that how it helps in achievement of the objectives of organisation?
(b) What are the characteristics of a good control system? Explain the components of MCS in terms of hierarchy of control,
organisation structure and division of responsibilities. What is the role of feedback, MIS and Corporate Culture in
binding the various components of MCS?
(c) Draw a comparison between Strategic Planning and Management Control and also between Management Control and
Task Control.
Q 2
(a) Define Strategy. Explain how Strategy helps in achieving the mission of an organisation.
(b) List out the various attributes of an MCS.
(c) Explain the following terms
- Interactive Control
- Corporate Strategy
- SWOT analysis. How it helps in formulation of Strategy.
- Core Competencies
- BCG Model for achieving Business Unit Goals
- 5 force Model to improve competitive edge of an organisation.
Q 3
(a) What is Goal Congruence and explain how it helps in achievement of the organizational objectives? Illustrate the
formal and Informal factors of control which affect the behaviour of an employee.
(b) Explain the concepts behind at least six modern techniques used by Management to influence the behaviour of the
employees for Goal Congruence.( Hint- any 6 out of ERP, TQM, TKM, JIT, Benchmarking, SQC, BPR, Value added
analysis/ Value chain).
Q 4
(a) Differentiate between Rewards and Compensation. What are the components of a compensation plan? Work out a
compensation plan for a CEO of the company at a cost to the company of Rs 20 lac per annum.
(b) Discuss the merits and demerits of short term and long term incentive plans. What are the considerations behind
designing incentive plans for a CEO, a Business Unit Head and general employees?
(c) Write short notes on-
- ESOP
- Phantom Shares
- Various Profit sharing plans used by management as incentives the employees
- Some research findings regarding rewards and compensation plans
- Theory X and Theory Y.
Q 5
(a) How responsibility centres are an integral part of Management Control Structure? Explain in terms of need for delegation
and performance evaluation. What are the various ways by which a large multi product, multinational would create
responsibility centres?
(b) Explain various types of responsibility centres and how they are normally placed in the hierarchy of the organisation for the
purpose of control? What are the criteria for evaluating the performance of each type of responsibility centre?
(c) Write short notes on-
- ROI
- RI
- EVA.
Q 6
(a) Why organisations need transfer pricing? Explain various factors affecting the transfer pricing policies in an organisation. What are the
different methods adopted by organisations for determining transfer prices?
(b) Prepare a matrix showing relative advantages and shortcomings of various methods used by organisations for transfer pricing.
Q 7
(a) Define Budget. What are the main considerations behind preparation of budget in an organisation? What are the various classifications
of budgets in an organisation?
(b) Write short notes on following ( any 7)-
- Activity Based Budgeting
- Zero Based Budgeting
- Corporate Long Range Planning
- Budgeting under Uncertainty
- Cash Budget, and methods of preparing cash budgets
- Flexible and Fixed Budgeting
- Budgetary Control System and Performance Reporting
- Capital Budgeting and Controls
- Various Functional Budgets and their inter relationship
(c) What are the various behavioural aspects involved in budgeting. Please explain how performance improvement can be affected by
dealing with the behavioural aspects.
Q 8
(a) What are the various financial and non financial measures of performance in an organisation? Explain and illustrate each of them.
(b) What is a Balance Score Card and explain that how it helps in overcoming the short comings of a single variable?
(c) Explain the concept of Market Value Added in detail.