Management Control System of the University of Southern California
The purpose of this case study is to describe and analyse the features of the management control system (MCS) of University of Southern California (USC). Before commencing the analysis a brief background of USC is provided.
The USC, located in Los Angeles, was established in 1880 as a private research institution. The university's academic and administrative programs are led by the president's cabinet, which is comprised of a provost and senior vice president for academic affairs, senior vice president for finance and chief financial officer, senior vice president for administration, senior vice president for university relations, and senior vice president for advancement. USC is governed under the direction of the …show more content…
The success of RCM depends mainly on the size and complexity of the institution, its organizational culture, and the propensity of the university's leadership to support RCM as an effective approach to manage the institution. As Strauss and Curry (2002, p. 3) state, ‘RCM's objectives include clarifying roles and responsibilities between local and central units, linking cause and effect through revenue and indirect cost allocations, placing local academic planning decision making in a cost/benefit context, and unleashing entrepreneurship’.
The entrepreneurial approach encourages deans to focus on earning good revenues contrary to what happens under a more centralized management model, it ignores the practice of negotiating over larger share of existing resources with central administrators (Strauss & Curry 2002).
RCM operates efficiently in collaboration with a well communicated mission of the organization without which the bottom-line focus of RCM will become the goal of the organization itself. Secondly, RCM also has the ability to move the institution away from its original goal and create distrust and competition (Strauss & Curry 2002).
There is also an