Management Control Jeopardy: An active-learning prototype Frank Selto Directions:
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Transcript of Management Control Jeopardy: An active-learning prototype Frank Selto Directions:
Management Control Jeopardy: An active-learning prototypeFrank Selto
Directions:1. If you have never watched the TV game show, Jeopardy, take the time to
watch an episode.2. Assigned teams and knowledge bases can depend on the size of the
class and the extent of the background research reading. For this prototype, I assigned sets of readings (which became categories of the game) to sub-groups of the class, who were free to read any or all of the other sets of readings, too. Because the class had only 16 students, each was a solo participant. Teams of two or three might work more smoothly for larger classes.
3. You can choose the first participant randomly, or, as a reward, I allowed the highest performer on the previous exam to choose the first category and answer. The game proceeded as closely as possible to the TV version.
4. I allowed students to keep their own scores, and I was careful to label their points as “basis” points that I converted to modest bonus points on the next exam.
Performance Measure JeopardyFinancial Measures
Non-Financial Measures
Transfer Pricing Incentives EFG
10 10 10 10
20 20 20 20
30 30 30 30
40 40 40 40
50 50 50 50
1. Cost center2. Discretionary cost center 3. Revenue center4. Profit center5. Investment center
Financial Measures – 10 points
Financial Measures – 10 points
?
“Managers focus only on the most significant variances”
Financial Measures – 20 points
Financial Measures – 20 points
?
“Income/Sales Revenue X Sales Revenue/ Invested Capital”
Financial Measures – 30 points
Financial Measures – 30 points
?
“Managers forego investments that exceedthe firm’s cost of capital”
Financial Measures – 40 points
Financial Measures – 40 points
?
1. Income after tax2. Net operating assets3. Weighted average cost of capital
Financial Measures – 50 points
Financial Measures – 50 points
?
• Employee capabilities• Process and product quality• Customer satisfaction• Market share
Non-Financial Measures – 10 points
Non-Financial Measures – 10 points
?
“Non-financial performance that signalsfuture financial performance”
Non-Financial Measures – 20 points
Non-Financial Measures – 20 points
?
“Relationships among lead and lag indicators of performance”
Non-Financial Measures – 30 points
Non-Financial Measures – 30 points
?
• Logical• Finality• Causal
Non-Financial Measures – 40 points
Non-Financial Measures – 40 points
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1. “A” is logically independent of “B”2. “A” closely but always precedes “B”3. Observation of “A” predicts the
subsequent observation of “B”
Non-Financial Measures – 50 points
Non-Financial Measures – 50 points
?
“The value attached to a transfer of goods or services between divisions
of a single company”
Transfer Pricing – 10 points
Transfer Pricing – 10 points
?
Debit to Division A’s G&A expenseCredit to Division B’s revenue
Transfer Pricing – 20 points
Transfer Pricing – 20 points
?
“Arm’s length market price”
Transfer Pricing – 30 points
Transfer Pricing – 30 points
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1. Comparable uncontrolled price*
2. Resale price3. Cost-plus*4. Comparable profits5. Profit split*
Transfer Pricing – 40 points* = 5-point bonus question
Transfer Pricing – 40 points
?
*
• Administrative or managerial services
• Germany or Switzerland
Transfer Pricing – 50 points
Transfer Pricing – 50 points
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“An individual’s compensation is contingent
on organizational outcomes”
Incentives – 10 points
Incentives – 10 points
?
“Quarterly earnings”and“Long-term growth;
environmental responsibility”
Incentives – 20 points
Incentives – 20 points
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1. Pay is not a motivator2. Rewards punish3. Rewards rupture relationships4. Rewards ignore reasons5. Rewards discourage risk taking6. Rewards undermine interest
Incentives – 30 points
Incentives – 30 points
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“It is only by giving a special inducement or incentive that the
employer can hope even approximately to get the initiative of
his workmen”
Incentives – 40 points*bonus = “Scientific Management”
Incentives – 40 points
?
1. Absolute or relative?2. Formula or subjective?3. Financial or non-financial?4. Narrow or broad responsibility?5. Current or deferred rewards?6. Salary, bonus or stock?
Incentives – 50 points
Incentives – 50 points
?
Insert Text for AnswerOthers – 10 points
Insert Text for QuestionOthers – 10 points
Insert Text for AnswerOthers – 20 points
What are organizational controls?
Insert Text for QuestionOthers – 20 points
Insert Text for AnswerOthers – 30 points
Insert Text for QuestionOthers – 30 points
Insert Text for AnswerOthers – 40 points
Insert Text for QuestionOthers – 40 points
Insert Text for AnswerOthers – 50 points
Insert Text for QuestionOthers – 50 points
Final Jeopardy – 50 Points
“The learning organization”
Final Jeopardy – 50 Points