Course content

In an enterprise of a certain size and complexity, the ability of owners and management to exercise direct control through monitoring and supervision is reduced. Consequently, management control, control mechanisms, and the composition of the overall control system become essential to ensure that the organization’s activities collectively contribute to maximizing the organization’s goal attainment—whether these goals relate to profitability, value creation, and/or various sustainability objectives.

This course examines how different management control tools can be used, integrated, and applied in combination, adapted to each organization’s managerial traditions, organizational structure, technology, and culture.

The course begins with a review of key concepts and dimensions within the field of management accounting and control before discussing control mechanisms such as:

• Performance indicators (KPIs)

• Profitability measures

• Incentive mechanisms

• Organizational design through responsibility centers

• Various control tools for decentralized organizations (budgets, rolling forecasts, management by objectives (MBO), and transfer pricing)

During the discussion of these control mechanisms, issues concerning their design, calculation, and the opportunities and challenges associated with their use will be addressed. Particular emphasis will be placed on how such mechanisms can be aligned with the organization’s values and culture.

In practice, the various mechanisms operate in interaction with the organization’s broader control system. The course explores how different mechanisms can be combined into a coherent management control system and how the degree of control tightness may influence behavior within the organization.

The course is particularly relevant for students aiming for careers in finance and accounting functions, consulting, or line management.

Learning outcome

Knowledge

Upon successful completion of the course, students will have:

• Comprehensive knowledge of key management control tools (see course topics)
• Thorough understanding of the effects of applying various financial and non-financial performance indicators
• Advanced knowledge of how different management control tools can be applied within organizations to set performance requirements and monitor units
• Insight into how the composition of various mechanisms into an integrated control system should be balanced and adapted to the characteristics of the organization

Skills

Upon successful completion of the course, students will be able to:

• Perform calculations related to key tools in management accounting (e.g., profitability measures, performance indicators, and different forms of transfer pricing)
• Discuss and apply relevant tools within the field (see course topics) to enhance organizational value creation
• Conduct, interpret, and discuss analytical assessments

General Competence

Upon successful completion of the course, students will be able to:

• Address challenges related to the design, composition, and use of management control systems
• Critically reflect on theories, methods, tools, and data within the field of management accounting and control
• Communicate issues and analyses related to the subject area to managers, management accountants and other stakeholders in public and private organizations

Learning methods and activities

A detailed course schedule and reading list will be provided at the beginning of the semester.

Teaching will be conducted through lectures and case seminars.

Compulsory assignments

• Group Assignments

Specific conditions

Recommended previous knowledge

30 ECTS credits in accounting and business administration

Required previous knowledge

none

Course materials

The final reading list will be announced at the beginning of the semester.