Convenience

Control Systems at State University
Purpose:
This exercise offers you an opportunity
to practice analyzing an organization’s need for con-
trols. You also will describe likely challenges to
implementation and list ways to overcome resistance
to control.
Introduction:
The following case represents an
organization with seriously deficient control systems,
which is rather unrealistic. However, most organiza-
tions do suffer from one or more control efforts that
are lacking or ineffective. In addition, implementing
controls
is
usually
more
difficult
than
simply
Chapter 14:
Basic Elements of Control
4 5 1
Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
www.MyEbookNiche.eCrater.com

---

diagnosing the need for controls, especially when orga-
nization members resist the control.
Instructions:
Step 1
: The instructor will divide the
class into small groups. Read “The University Control
Problem” short case, which follows.
The University Control Problem
You are on a committee appointed by the State Univer-
sity Student Council to help the new president deal
with a number of problems that have plagued the cam-
pus for years. For example, the university regularly
runs out of funds before the academic year ends, caus-
ing major disruptions of student services. In fact, some
departments seem to have no knowledge of how much
money they need or how much they have spent.
Students are upset because tuition fees are constantly
being changed in an effort to match the university’s
varying demands for money. Department chairs have
no idea how many students are being admitted, so they
never schedule the appropriate number of courses.
Some buildings are in bad physical shape. Classrooms
are assigned to departments, and some classrooms seem
to sit empty while others are overcrowded. There seems
to be an oversupply of research equipment but a shortage
of computer equipment for students. Some schools, such
as the business school, don’t have enough faculty to teach
their classes, while some departments in liberal arts have
surplus faculty with no students to teach.
Step 2
: As a small group, reach consensus about how
to complete the University Control Matrix, shown here.
Identify the different controls that might be established
for each of the four resources—physical, financial,
human, and information—and remember to consider
each type of control. Preliminary controls focus on inputs
into the university. Screening controls act on the univer-
sity’s transformation processes. Postaction controls
control the university’s outputs.
Step 3
: As a small group, develop responses to the
following Discussion Questions. Discuss your responses
with the class.