Management Control Systems in aService Organizations

Characteristics

•Absence of Inventory Buffer•Difficulty in Controlling Quality•Labour Intensive•Multi-Unit Organizations

Classification

•Professional Organizations•Financial Service Organizations•Health Care Organizations•Non-Profit Organizations

Management Control Systems

•Pricing•Profit Center & Transfer Pricing•Strategic Planning & Budgeting•Control of Operations•Performance Management & Appraisal

PSG Special Characteristics

•Goals•Professionals•Output and Input Management•Small Size•Marketing

•Financial Service Organization

Financial Service Organization

•Commercial Banking•Investment Banking•Retail Brokerage•Insurance

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Financial Service Organizations

Huge Economic ContributionUse Of Information TechnologyNeed for Control SystemsNew Forms of InstrumentsNew Research

FSO- Special Characteristics

•Monetary Assets•Time Periods of • Transactions •Risk and Reward Technology

Health Care Organizations

Health Care Organizations---special characteristics

•Difficult Social Problems•Change in Mix of Providers•Third Party Payers•Professionals•Quality Control

•Budget Preparation•Strategic Planning•Acquiring New Equipments•Quick availability of Information•Financial Performance•Identifying Variances

HCO- Management Control Systems

Non Profit Organizations

What are Non-Profit Organizations ?

•Absence of Profit Measure•Contributed Capital•Fund Accounting•Governance

NPO- Special Characteristics

•Product Pricing•Strategic Planning•Budget Preparation•Operation & Evaluation

NPO- management control systems

Case Discussion

HarlanFoundation

Metropolitan Bank