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Information Process - Module 5

This document discusses learning curves and management control in specialized organizations. It defines learning curves as graphical representations of the rate of learning for an activity over time, showing initial difficulty and how much is left to learn. It then discusses management control challenges in four types of specialized organizations: service organizations, professional service organizations, financial service organizations, and non-profit organizations. Each have unique characteristics that require adapting general management control principles.

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Saritha
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68 views7 pages

Information Process - Module 5

This document discusses learning curves and management control in specialized organizations. It defines learning curves as graphical representations of the rate of learning for an activity over time, showing initial difficulty and how much is left to learn. It then discusses management control challenges in four types of specialized organizations: service organizations, professional service organizations, financial service organizations, and non-profit organizations. Each have unique characteristics that require adapting general management control principles.

Uploaded by

Saritha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Module 5

HUMAN AS A PART OF
INFORMATION PROCESS

Asst Prof. Ramesh Chandrahas


BE (E&C), MBA, (Ph.D)
Davangere University, Davangere
Learning Curves
• The term learning curve refers to a graphical representation of
the “average” rate of learning for an activity or tool.
• It can represent at a glance the initial difficulty of learning
something and, to an extent, how much there is to learn after
initial familiarity.
• Initially introduced in educational and behavioural psychology,
the term has acquired a broader interpretation over time, and
expressions such as “experience curve”, improvement curve”,
progress curve” and efficiency curve are often used. Most
tasks get faster with practice.
• The learning curve is visible with enough aggregation of
dissimilar tasks or across similar tasks down to the level of
individual subject’s strategies. In this context, control system
can use this concept in designing phase.
Management Control in Specialized
Organization
1. Service Organisations
Management control in service industries is different from
management control in manufacturing companies. The
factors which apply to the management control of legal,
research and development, and other service department in
companies generally are:
• Absence of Inventory Buffer
• Difficulty in Controlling Quality
• Labour Intensive
• Multi-Unit Organisations
• Historical Development
Management Control in Specialized
Organization
2. Professional Service Organizations
Research and development organisations, law firms, accounting
firms, health care organisations, engineering firms, architectural
firms, consulting firms, advertising agencies, symphony and
other arts firms and sports firms are examples of professional
service organisations.
Special Characteristics
1. Goals
2. Professionals
3. Output and Input Measurement
4. Small Size
5. Marketing
Management Control in Specialized
Organization
3. Financial Service Organizations
Financial Service organisations include commercial bank and thrift
institutions, insurance companies, non-banking financial institutions,
mutual funds and securities firms. These companies are in business
primarily to manage money. Some act as intermediaries, some act as
risk shifters and still others as traders.
Special Characteristics
The general principles and concepts of management control systems
applied must be adapted to the following special characteristics of this
industry.
• Monetary Assets
• Time Period for Transactions
• Risk and Reward
• Technology
Management Control in Specialized
Organization
4. Nonprofit Organization
A non-profit organisation, as defined by law, is an organisation that cannot distribute
assets or income to, or for the benefit of its members, officers or directors. The
organisation can, of course, compensate its employees, including officers and members,
for services rendered and for goods supplied. This does not permit an organisation from
earning a profit; it prohibits only the distribution of profits. A non profit organisation
needs to earn a modest profit, on average, to provide funds for working capital and for
possible “rainy days”.

Special Characteristics
• Absence of the Profit measure
• Contributed Capital
• Fund Accounting
• Governance
Thank You

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