18953024 Carol Belinda Sia Siew Siew MCS PDF

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Portfolio Cover Sheet Management Control Systems ACCT3001 Due: 12 noon on Wednesday, 05 September 2018

Family Name / Surname: Sia Other Names: Carol Belinda Siew Siew Student ID: 18953024

Name of Tutor: Dr. Dhanuskodi Rengasamy Workshop day / Workshop time: Wednesday 8:00-10:00

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Question 1 (word limit: 600 words) a. Identify three typical customer's needs and service expectations of most Internetserver companies. (3 marks) Facing the fierce market competition, enterprises must take customers as the center to carry out business activities and serve customers with satisfaction. Only by improving customer satisfaction, enterprises can occupy the market with a strong competitive advantage, so that enterprises can obtain considerable development. Three typical customer's needs and service expectations of most Internet-server companies: 1. Improving the speed of internet-server Every customer wants the internet can be able to quickly derive their preview pages such as videos, songs, information, etc. For example, the speed of internet-server plays an important role in the working environment. They need the Internet to check e-mail to confirm the business transaction. Most importantly, when a party is in the distance, it can also meeting through the Internet. If the network speed is too slow, the customers' mood will be very impatient. So improving the speed of the Internet is very important not only to save time but also to improve customer satisfaction. 2. Increase the customer service response When a customer is faced with a problem, they always call or serve in the store, but each time they have to wait a very long time, which reduces customer satisfaction. Therefore, enterprises can increase the number of customer service personnel and enhance the speed of customer service to solve customer doubts, such as network crash, slow network speed and so on. In addition, customer service personnel should also require multiple languages. When you meet customers who do not speak Malay, you can speak Chinese or English to solve problems. 3. Provide economical internet-server package Every customer likes something that is economical and affordable. Therefore, the Internet service company can launch a series of matching. For example, give loyal customers a free service to upgrade the network, or new users register the network with TV program (Happy Tv), and so on.

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b. Assuming that this dramatic growth continues, name two (2) specific actions the company can take to retain its goal of "focus on the customer". (You need to explain why each has the goal of customer focus). (4 marks) Focus on the customers is the demand of the buyer (customer). Its purpose is to obtain profits from customer satisfaction, which can be considered as a "consumer (useroriented) or "market-oriented" business concept (3RDVIEW CONSULTING 2013). In other words, focus on the customer refer to the dynamic process in which enterprises strive to consolidate and further develop long-term and stable relationships with customers(Segio et al. 2013). 1. Reward loyal consumers Enterprises can reward loyal consumers through the activities. Through this activity, it can successfully attract new customers to spend. This activity can be a lucky draw or member day. The so-called "member day" is a feedback to loyal customers. Through member days, enterprises can give free towels, cups and so on to loyal customers. In addition, new customers will also be registered as members of this activity. In this way, not only new customers have been added and also maintain the number of loyal customers. 2. Care for customers Enterprises can investigate consumers through customer service. This survey can be divided into product quality, product expectations, and so on. The quality of products will affect the loyalty of customers. When the quality of a product is very bad, the customer will not buy it again. On the contrary, the quality of the product is very good, and no need to promote will also can let customers buy it again. Therefore, enterprises must pay attention to the quality of products, not only for the low cost production without paying attention to the quality of products. Product quality not only maintains the loyalty customer, but also brings new customers. In addition, companies can collect their opinions from consumers and find out the reasons for product sluggishness and improve them. (591 words) Question 2 (word limit: 500 words) a. Describe participative budgeting (2 marks) Participative budgeting refers to the process of budget enforcer's participation in budgeting and budget execution results evaluation (Langfield-Smith et al. 2018). Participative budgeting also known as lengthy and time-consuming process which allows all levels of managers to develop their own initial estimate for budgeted sales, 3|Page 18953024 Carol Belinda Sia Siew Siew

costs and so on (Langfield-Smith et al. 2018). In another point of view, participative budgeting will respect and meet the needs of the organizational members. It will contribute to the organizational cohesion in order to reduce the pressure and worry related to budget. Participative Budgeting can be subdivided into top-down budgeting and also bottomup budgeting. Top-down budgeting refers to a system in which senior managers impose budget targets on more junior managers with little or no consultation (Langfield-Smith et al. 2018). Bottom-up budgeting is a participative process with lower managerial and operational levels play an active role in developing their own budgets (Langfield-Smith et al. 2018). b. Identify six benefits of participative budgeting to Pillar Group (3 marks) 1. Motivating employees to achieve congruence goals Participative budgeting can motivate employees to participate in the budgetary (Formula 2015). Each employee will assign the responsibility for the budget. In this way, the probability to achieve the goal will be very high as everyone will focus on achieving a consistent goal rather than personal goals. 2. Improving the relationship and communication Through participatory budgeting, any level manager can improve their communication and relationship. Top management can understand the idea of low-level managers. In addition, low-level managers can also strengthen their own shortcomings as they can improve their level through top management's opinions or ideas. 3. Improving the management commitment Managers need to take any responsibilities to achieve the goals set for them. Such participation will encourage the subordinate manager and have a positive impact on the performance of a subordinate manager (Formula 2015). 4. Precisely the budget Participative budgeting can make budgeting more accurate (Formula 2015). Subordinate managers can plan the budget more accurately as they are more closely linked to operations and have more detailed knowledge of operations. After reviewing all relevant facts and figures, they will prepare the budget with the help and advice of functional heads.

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5. Achieve potential identification of different levels of management The team members are composed of managers at different levels. They can be easily to identify the capabilities and responsibilities of other members. This identification can stimulate the ability of lower management, but also help to motivate and rationally use the talent of lower management. 6. Improve the confidence of management When the lower management suggestion is implemented as they will feel confident and satisfied. In this way, they will form a positive attitude towards for their work, and give them the motivation to strive to achieve their goals, but also have a positive psychological impact on subordinate managers. (457 words) Question 3 (word limit: 700 words), Assuming that the new management wants to operate as a decentralized firm, what major management problems do you foresee in the transition from sole owner to employee ownership? (8 marks) Centralization decision-making power is a higher level of concentration in the organizational system (Marume 2016). Centralization and decentralization are relative concepts. In organizational management, centralization and decentralization are relatively absolute centralization, or absolute decentralization is impossible (Marume 2016). Decentralization implies that enterprise distributes the decision-making power of production management to the subordinate manager in order to initiative and creativity for the low-level manager (Marume 2016). Decentralization is usually applied to industries with large scale, a wide range of products, rapid market changes and relatively decentralized regional distribution (Marume 2016). On the other hand, centralization is defined as top-level manager only concentrates on the decisionmaking power of a few stakeholders. In the case, Aiden Henry decided to sell the firm to his employees which change the centralization management to decentralization firm will occur the problem as follow: First of all, the boss must do everything personally when operate the small business in order to become a medium-sized enterprise. However, when the scale of the enterprise becomes larger, entrepreneurs must change their business ideas, and concentrate on the overall strategy and business plan of the company. At the same time, if 5|Page 18953024 Carol Belinda Sia Siew Siew

entrepreneurs are still hands-on, it will result in the scale and performance of the enterprise stalled, and even shrink to the original size. Second, they worry that power will be out of control after empowerment. This is caused by the lack of effective monitoring mechanism and credit system. In recent years, there have referred to of managers' betrayal of the enterprise, and many bosses are afraid of authorization. Bosses worry that too much empowerment will lead to subordinates acting nonsense, which is actually a sign of imperfect risk management and internal control. In a well-managed company, from top to bottom, no matter the boss, senior managers, middle managers, or ordinary employees, all have clear responsibilities and power, they must accept the checks and balances and supervision of the relevant departments. It is impossible to make arbitrary decisions by virtue of their power. Third, "subordinates are not mature enough to affect the effectiveness of authorization". If the boss never authorizes his subordinates on the ground that they are not matured, even qualified and mature subordinates will not be able to grow up because they are not trained. "Early request, late reporting" is a deformity phenomenon in many enterprises. It is clearly the duty of the post, if the employee did not consult his superior in advance, he may suffer all kinds of difficulties; in the long run, the employee no longer dare to make his own opinions, can only consult his superior to decide everything. Moreover, decentralization is not obvious, which is not conducive to training the future leaders of enterprises. If only one person in the whole enterprise has the last say and everyone else is a slave, once the boss retires, the enterprise will have a power vacuum. At this time, policymakers are not in a position to find suitable successors. This is the result of arbitrary dictatorship. Lastly, the idea of misconception of empowerment management - empowerment is not to distribute one's power to others (who do not want it), but to return the power that belongs to others and concentrate on doing one's own job. When the decisionmaker delegates more power, he has enough time and energy to do his real job such as decision making. To conclude that to correctly handling the relationship between centralization and decentralization is conducive to bringing into play the enthusiasm and creativity of the two management subjects. The balance between the two is not only necessary for the individual organizational system, but also very important in the overall management of the social system. Only by grasping its limits and coordinating these contradictions can promote the development of enterprises and further promote social progress. (631 words)

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References List

3RDVIEW CONSULTING. 2013. “Understanding and Improving Customer Focus” https://www.communitydoor.org.au/sites/default/files/Topic_1_-_ Introduction_to_Customer_Focus.pdf. Formula Examples. 2015. “Advantages of Participative Budget” http://formulaexamples.blogspot.com/2015/12/advantages-of-participativebudget.html. Langfield-Smith, K., Smith, D., Andon, P. Hilton, R., and Thorne, H. 2018. Management Accounting: Information for creating and managing value, 8th edition, McGraw-Hill. Marume, Dr. S. B. M. , R. R. Jubenkanda. 2016. “Centralization and Decentralization” http://www.questjournals.org/jrhss/papers/vol4-issue6/Q46106110.pdf. SergioBiggemann,ChristianKowalkowski,JaneMaley,StaffanBrege. 2013. “Development and implementation of customer solutions: A study of process dynamic and harket shaing” https://doi.org/10.1016/j.indmarman.2013.07.026.

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