Search for the following concepts when looking for appropriate resources:
�Management control systems
�Incentive compensation systems
�Management by Objectives
�Controllable versus uncontrollable costs
The bibliography needs to be done as an APA formatted annotated bibliography. Please use the link
below to see how an annotated bibliography is formatted.
�Each cited source needs to be specifically linked to the concepts in the case. Please do not cite
random sources.
�Make sure your annotation captures the important point of the source. Please do not give a one-
sentence summary.
Dropulić, I. (2014). DESIGN OF MANAGEMENT CONTROL SYSTEMS – A STUDY OF JOINT
STOCK COMPANIES IN CROATIA. Management: Journal Of Contemporary Management
Issues, 19(2), 157-167.
This article shades light on the definition and proper understanding of management
control system. There has been little understanding of this concept by varied entrepreneurs and
scholars. There has been little research done to ascertain the level of understanding of this
concept by entrepreneurs and at great extents, the usage of the concept in the right way.
Designing of management control systems must be done in accordance to the specific
needs of the organization in question, (Dropulić, 2014). Although the basics of management
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Case 23.2
control systems are the same, there ought to be manipulation of the essential elements to suit the
particular organization. Failure to adhere to this concept leads to coming up with management
control systems, which could be too costly for the organization and may even be irrelevant.
In coming up with management control systems, there ought to be special consideration
given to administrative and cultural elements, (Dropulić, 2014).This does not mean that the other
aspects are of no great importance, but these two aspects are very crucial to stability of
organizations especially the multinational ones.
In this article, survey methodology has been used, which gives the work more credibility.
Basing the survey on Croatia gives the article more credit because there has been choice of a
specific region.
Friis, I., Hansen, A., &Vámosi, T. (2015). On the Effectiveness of Incentive Pay: Exploring
Complementarities and Substitution between Management Control System Elements in a
Manufacturing Firm. European Accounting
This article sheds light on the importance of incentives in an organization. This area has
been much avoided by many scholars due to the connotation that as long as employees are
receiving their salaries, there is no need for them to be given incentives.
This article points to the realization that it is very essential for organizations to embrace
the spirit of giving incentives to employees on top of creating a conducive working environment.
There is insight into the great lengths that incentives can go in terms of influencing the
employees to reach goals that would otherwise not be reachable without the incentives, (Friis,
Hansen &Vámosi, 2015).
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Case 23.2
There is pointing out to the different methodologies that could be adopted as incentives.
This view follows the realization that incentives are very much linked to motivation. Human
beings are different, and are therefore motivated by different factors. It is therefore crucial to
consider varied incentive methods, depending with the organization but more so in consideration
of the individual employees. This article is credible because, it has used an in depth case study in
making clear the process of implementing a new incentive program as part of management
control systems.
Čiutienė, R., &Petrauskas, P. (2012). MANAGEMENT BY OBJECTIVES USING COACHING.
Economics & Management, 17(4), 1559-1563. doi:10.5755/j01.em.17.4.3029
This article engages in discussion of embracing management by objectives with much
alignment to the importance of coaching in the process. In the recent organizational leadership
endeavors, there has been much encouragement of adoption of management by objective
whereby; the management has the objectives or short term goals of the organization in mind.
When there is adoption of management by objectives, there is lower chances of wastage of
managerial energies by focusing on nonessential issues, (Čiutienė&Petrauskas, 2012).
This article is credible because it examines theoretical principles of management.
Although in the recent times there has been much arguments against theoretical principles of
management, it is crucial to note that; to attain the practical facets of management, managers
ought to first understand the theoretical realm. This article is therefore insightful because it offers
a platform for understanding of those theoretical principles of management.
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Case 23.2
There is also insights into the diversified areas of the application of management by
objective aspect. In the past, there had been propositions that management by objectives was
only applicable in the private sector. This article sheds lights in understanding that management
by objectives is also applicable to private sector, (Čiutienė&Petrauskas, 2012).The processes and
implementation steps are well presented and analyzed.
Bol, J. C., Hecht, G., & Smith, S. D. (2015). Managers’ Discretionary Adjustments: The
Influence of Uncontrollable Events and Compensation Interdependence. Contemporary
Accounting Research, 32(1), 139-159. doi:10.1111/1911-3846.12070
Many business management scholars have not been able to distinguish the controllable
and the non-controllable costs. There has been failure to separate the two and therefore much
inability to balance the same in organizations, (Bol, Hecht & Smith, 2015). This article sheds
light on the uncontrollable costs in relation to the controllable costs. Many people have had the
connotation that, the non-controllable costs are unavoidable and therefore, understanding them is
of no positive consequence.
This article points to the realization that; when entrepreneurs understand the extents of
uncontrollable costs, they are capable of mitigating the extent of the cost. There is also more
potential of mitigating the spill of the uncontrollable costs to the controllable costs.
Understanding the distinction between the two means that; one is capable of striking a balance
between the two in undertaking any business venture that entails both controllable and
uncontrollable costs, (Bol, Hecht & Smith, 2015).
This article offers insights into the efforts that could be made to enhance controls in the
future undertakings of the business. Articulating the understanding of the controllable and
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Case 23.2
uncontrollable costs is critical in adjusting management control systems. It is not possible to
come up with viable management control systems without first distinguishing the controllable
and uncontrollable costs such that the best option is undertaken. This paper offers insight into
understanding the distinctions of the two variable costs.
References
Bol, J. C., Hecht, G., & Smith, S. D. (2015). Managers’ Discretionary Adjustments: The
Influence of Uncontrollable Events and Compensation Interdependence. Contemporary
Accounting Research, 32(1), 139-159.
Čiutienė, R., &Petrauskas, P. (2012). MANAGEMENT BY OBJECTIVES USING
COACHING. Economics & Management, 17(4), 1559-1563.
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Case 23.2
Dropulić, I. (2014). DESIGN OF MANAGEMENT CONTROL SYSTEMS – A STUDY OF
JOINT STOCK COMPANIES IN CROATIA. Management: Journal Of Contemporary
Management Issues, 19(2), 157-167.
Friis, I., Hansen, A., &Vámosi, T. (2015). On the Effectiveness of Incentive Pay: Exploring
Complementarities and Substitution between Management Control System Elements in a
Manufacturing Firm. European Accounting Review, 24(2), 241-276.
