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Management Control Jeopardy: An active-learning prototype Frank Selto Directions: If you have never watched the TV game show, Jeopardy, take the time to watch an episode.
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Management Control Jeopardy: An active-learning prototype Frank Selto Directions: If you have never watched the TV game show, Jeopardy, take the time to watch an episode. 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. 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. 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.
Cost center Discretionary cost center Revenue center Profit center Investment center Financial Measures – 10 points
“Managers focus only on the most significant variances” Financial Measures – 20 points
“Income/Sales Revenue X Sales Revenue/ Invested Capital” Financial Measures – 30 points
“Managers forego investments that exceed the firm’s cost of capital” Financial Measures – 40 points
Income after tax Net operating assets Weighted average cost of capital Financial Measures – 50 points
Employee capabilities • Process and product quality • Customer satisfaction • Market share • Non-Financial Measures – 10 points
“Non-financial performance that signals future financial performance” Non-Financial Measures – 20 points
“Relationships among lead and lag indicators of performance” Non-Financial Measures – 30 points
Logical • Finality • Causal • Non-Financial Measures – 40 points
“A” is logically independent of “B” “A” closely but always precedes “B” Observation of “A” predicts the subsequent observation of “B” 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
Debit to Division A’s G&A expense Credit to Division B’s revenue Transfer Pricing – 20 points
“Arm’s length market price” Transfer Pricing – 30 points
Comparable uncontrolled price* Resale price Cost-plus* Comparable profits Profit split* Transfer Pricing – 40 points * = 5-point bonus question
Administrative or managerial services • Germany or Switzerland • Transfer Pricing – 50 points
“An individual’s compensation is contingent on organizational outcomes” Incentives – 10 points
“Quarterly earnings” and “Long-term growth; environmental responsibility” Incentives – 20 points
Pay is not a motivator Rewards punish Rewards rupture relationships Rewards ignore reasons Rewards discourage risk taking Rewards undermine interest Incentives – 30 points
“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”
Absolute or relative? Formula or subjective? Financial or non-financial? Narrow or broad responsibility? Current or deferred rewards? Salary, bonus or stock? Incentives – 50 points
Insert Text for Answer Others – 10 points
Insert Text for Question Others – 10 points
Insert Text for Answer Others – 20 points What are organizational controls?
Insert Text for Question Others – 20 points
Insert Text for Answer Others – 30 points
Insert Text for Question Others – 30 points
Insert Text for Answer Others – 40 points
Insert Text for Question Others – 40 points
