Case Briefing-AirTex Aviation and Inland Steel Company Essay
Case 1: Airtex Aviation, Text p. 246
Discuss two elements of the control system that Frank and Ted implemented. In your opinion were these appropriate and if so what will they help achieve?
After they purchased the business of Airtex Aviation, Frank and Ted implemented a control system across the whole company. I would like to discuss both action controls and personnel controls in the system.
Action controls include: 1) Profit centers were merged into departments; 2) Profit centers identified revenues and expenses, which were communicated to the profit center manager; 3) Departmental managers were accounted for their profit centers, and would receive a bonus for their …show more content…
Case 2 – Inland Steel Company
Homework questions: Brief answers to Questions 1 and 2.
1. What kind of MCS did Inland Steel have before it undertook its quest for organizational effectiveness?
Before it undertook its quest for organizational effectiveness, Inland Steel had people-oriented management control system. This strong people-oriented culture succeeded in providing employees the right motivation and incentives. The company treated their employees very well and concerned about the workers, it even created a shelf for those incompetent workers until they retired. Thus, employees had tremendous loyalty to the company. In the meanwhile, this management control system had disadvantages. It was difficult to reduce workforce, correct mistakes, and make decisions.
2. Is or should the control system be different after the change? If so how?
The control system should be different after the change: 1) The employees understood what is required in their particular roles and were capable of performing well. Getting rid of those who were not incompetent means that the new system would not allow the company to take responsibilities for those who did not perform well and all employees in the company should work hard to achieve the company’s