Management Control System at Firm Term Paper Example | Topics and Well Written Essays - 1750 words

Management Control governance at Firm - Term Paper ExampleWestern Digital Corporation has been a to a great extent disk drive storage manufacturing pioneer. The intersection point line of the company includes external drives for mobile desktops, laptops and other digital home entertainment products Structure (By Decentralization) One of the major features of the overall management control system is the comportment of decentralization. Western Digital has understood the importance of the decentralization in the decision making system so that the sub-goals can be set and achieved. In this way each and every decision maker has die responsible for a small portion of the overall organizational objectives. The Do-it-Yourself, or DIY, burnish has been intent on home grown tooling and aimment. Despite of the decentralization, the implementation of MCS ensures that the organizations develop rules to ensure that supervisors are aware of the authority and the subordinates are aware of t he tasks to be performed and respective expectations (Ng and Dastmalchian 18). (organizationstructure.org) Technological, regulatory, political and economic forces are changing the competitive environment (Jensen 1). wherefore organizations are looking to use technology in itself to get business insights. WD is also not an exception. However, the exercise of technology by the organization is quite unique to say the least. The use of a home-grown job programing system is one example of it. The company does not use commercial Extract, Transform and Load tools. The DIY culture is not an issue of cost as the company already has expensive business intelligence tools in the form of statistical analysis software. But the internally developed solution of the company has been more responsive. The primary(prenominal) objective of the introduction of the decentralization by WD is to tie the subunits of the company together. In order to complement such decentralization, the company has ado pted a product or divisional organizational structure. Here it is be added that kinda of going for process intervention, the organization has decided to go for structural intervention by looking to swap organizational design, job design, the public presentation review system , etc (Sisaye 54). Planning System As far as the planning system is concerned, the company wished to restore the confidence of the employees through informal and formal communication. The organization wishes to develop a plan to incline capability beyond 40 M units. The organization expects to meet the product costs targets that achieve more than 25% the company is set to support a quality first step on AFR improvement. The company also has plans to review and overhaul the process control system as unavoidable (Anthony 101). Review and Measurement System When a control system designer undertakes to review and measure the death penalty of the decentralized process, a number of issues are needed to be consid ered. The main issue is the involvement of the standard of the performance with regard to the interdivisional transactions and profit. The technique used to review and measure the performance is quite sympathetic to the ROIC performance management. The company uses the ROIC approach to assess the efficiency of capital allocation. In this way, through the return on invested capital, the company gets a sense of how well the company is actually using money to generate returns (Dent 84). However, the performance of