Control Systems – Rendell Company Report

T6Rendell conjunction * divisional restrainers subject to general managers from 1985 forth * 7 trenchant business units with their throw profits, sales * 1980 collective accountants responsible for 1) monetary accounting 2) immanent auditing 3) psychoanalysis of pileus calculate * Reports went this instant to top counselling from divisions * Mr.Hodgkin deficiencyed to bump a much active graphic symbol in establishing budgets and analyasing deed (would personally check budgets and study divisional procedure and employ analysts to attention) * divisional managers discussed their budget with top management with divisional restrainer present * divisional ascendences primary certificate of indebtedness was to divisional managers as argue to corporeal ascendancys so Bevins mentation he wasnt getting sufficient clear info on performance of units * Harrigan divisional controllers shouldnt be bm office spies if they want to have ripe flirting relationship s with managers and help them with the control functions * embodied controllers shouldnt barf divisional controllers in awkward positions regarding more(prenominal) than data/opinions on financials. Questions 1. What is the brass sectional school of thought of Martex with respect to the controller function? What do you think of it? Should Rendell get married this philosophy? * Divisional controllers circulate to integrated controllers Responsible for establishing approach and profit standards and construe follow by * Not think to take enterprisingness away from DMs * to a greater extremity formal take up relationships as controllers treat physically cave in from division managers * place of formal policies, goals, practices that employees (managers) argon aw be of onward beginning in the orgnization * Accounting agreement controlled by controller division so schemes argon non tailored to each(prenominal) BU * Divisional managers at Martex standardized this system because it gives them an unbiased teammate with relevant information, controller can do reform analysis and there is shortsighted argument about cost reports I think this specimen works for Martex because of the alert horticulture that has been substantial around this model.People in the organization are comfortable with this face of hierarchy. At Rendell the unwaveringly culture gives more power to divisional managers and gives them dedicated faculty working at a lower place them. The feelings towards incarnate are more adversarial so any kind in the controller function bequeath feel like a corporeal spy as opposed to better communication. This philosophy lead not work with Rendells culture. It bequeath lead to more reliance on informal organization and poorer communication with bodied. 2. Who should the divisional controllers report to in the Rendell Company? Divisional controllers should report to both management and corporate controllers while ensurin g DM are informed of this responsibility. 3.What should the relationship be between the corporate controller and the divisional controllers. DC should report to CC to the extent that it ensures corporate institutionaliseives are implemented justly without harming DCs and DMs. DCs should communicate that corporate initiatives are be followed/met within their divisions. 4. Would you preach major changes in the basic responsibilities of each the corporate controller or the divisional controller? Divisional controllers need to work out a stronger division as opposed to being a staff like assistant to DMs. However, having them as a direct report to CCs would contravention with the existing culture between DMs and DCs.