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1 Star Cables ,a 25 year old co. with centralized operations is located in New Delhi.The Companys units

in Bhopal and Bangalore are incurring losses.The Controller is of the opinion that the units require

organic systems of control.What are organic systems of control and how they will benefit Star Cables.?

2. The shift in present day business is towards knowledge based employees. The controls that are

applied in traditional organizations are not applicable to knowledge based organizations.What are thechanges in Control Systems that can be applied to these organizations?

3 Instances of abuse in transfer pricing are abundant.Some examples are Coca Cola in Japan which

together with other prominent multinational companies was fined for under recording local

profits.Californias litigation against Barclays Bank and Nissan of U.K.s defrauding of the Inland

Revenue.All these have brought into focus the transfer pricing policies of MNCs.What are reasons of

such abuses in transfer prices

4 The Controller of Xavier Group of Industries feels that his job has become too mechanical. Recently, he

came across an article in business magazine that stated that most organizations extend the activities of

the Controller beyond assisting CFO.The article has inspired him to involve himself in other activities of

the organization.Do you think the Controllers activities should be extended to other areas of the

business?What steps should he take to become successful modern controller?

5 The management of courier firm wants to work out the kind of rewards that would be suitable for its

organization.The HR Manager suggested that the firm should use a more flexible,less formalized

coordinating mechanism.He suggested that informal reward system work better during times of

uncertainty.Support HR Managers views with examples.

6 General Electric has implemented programmes to fuel the process of continuous improvement and

change.Every function in General Electric is asked to create its own work out process;each seniormanger is held accountable for continuous improvement.What are the reasons for the increasing

importance being given to continuous improvement ?What kind of environment should an organization

create to successfully implement continuous improvement.?

7 A companys feedback system provides ongoing information to every employee on his/her

progress.Employees are pressurized when the goals are not achieved.The company does not bother to

find out the reasons for the inefficient performance.Neither does it give the required coaching to

improve their skill.This leads to low morale and unethical behavior among employees.Do you think the

organization has gone wrong in designing its control systems?What steps should it take to rectify the

situation?

8 Narayan Ltd.is a small manufacturing company manufacturing detergent soaps.The organization has a

simple reporting structure and is centralized in nature.The company plans to expand its product range to

include washing powder,liquid blue,washing soda etc.The management feels a centralized and simple

reporting structure will not give efficient economies of scale.What type of organization design,would

you suggest for Narayan Ltd.?

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9 The recent scandles in Enron,Global crossing,Computer Associates,Xerox have highlighted the issue of

CEO compensation.Investors are angry that CEO salaries continue to rise even as the company stock

prices fall.Do you think CEOs should be paid such exorbitant salaries?Support your answer?

10 Premium Shirts was a small manufacturer of readymade shirts.The company expanded into other

businesses like childerns wear,all kinds of readymade garments for teenagers etc.The CEO empoweredthe mangers of different units so that they might bring more efficiency to decision making.When the

organization was small,key mangers and employees met every week and explored the impact of

emerging threats and opportunities.But as the organization grew,senior mangers had less personal

contact with people in the organization.The management felt the need for control system that would

enable the employees to share information.What kind of control system would be suitable for the

organization?