Management and Organizational Studies 3370A/B Study Guide - Midterm Guide: Management Control System, Gamesmanship, New Product Development

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Bill Dawson

Document Summary

Issue: new management performance system (measurement) vs old mcs. Maintenance department - 40% of holy employees (old equipment) New management idea - perceived old system to be ineffective. Maintenance - keep equipment running (max production output) Management bonus / political competitive products (ar - 42) management. Transfer price (if made head of ce - ship to uk) Whether or not to accept the investment proposal, proposed by axeon"s british subsidiary, Uk manufacturing vs expand netherlands production 600 t/ transportation costs. Hollandsworth ltd, to manufacture in the uk or to expand in their current city of netherlands. Complex product - requires higher skilled workers. Current production good; proposed now 400 t (create demand) Managing directors u. k. h. o. subsidiaries board of directors. All new investment must yield 12% return. Netherlands 600 + 400 = 1000; uk 0. The purpose of having management control system in place: To encourage employees that bene t the company and discourage actions that do not.