7/27/2019 MCS Case1 Nurul Sari (1101002048)

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Name: Nurul Sari

NIM: 1102048

Assignment 1 – Management Control System

Case 1-3: Xerox Corporation (A)

1.  Outline the management control system at Xerox. What are the key elements that make

the system works?

Management control system is the system used by management to control the activities of 

an organization. Every company has their own uniqueness management control system.

Xerox focus at customer satisfaction, quality of financial reporting, and also organizational

culture. Xerox using measurement system to combine the the financial aspect with the

operational targets. The measurement system begin with the planning process. Every units

in the business division and customer division make long run planning. Tht planning will be

combined with review and feedback session. With leadership through quality (including

competitive benchmark), management combine the operational performance with finanncial

performance such as market share, customer satisfaction, etc.

Business

Division

Customer

Operation

Unit UnitUnitUnit UnitUnit

Long Run

Planning

Long Run

Planning

ConsolidatedReviewFeedback

Leadership through qualityFinanncial

PerformanceOperational

Performance

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Name: Nurul Sari

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Assignment 1 – Management Control System

There are three elements which make the system works:

a.  Way of the measurements established.

The measurements are the combination of financial and operational targets. XeroxCorporation apply Leadership through Quality (LTQ) and competitive benchmarking as

main tools to measure operational efficiency. LTQ used in order to make sure that the

products meets the world class quality requirements while competitive benchmarking

helps the operational business units compare Xerox’s product, services, and business

practice with competitors.

b.  The culture in Xerox Corporation.

The working culture in Xerox are employee expected to be proactive and use analytical

approach in solving problems. The employee’s involvement in achieving company’s

target is the biggest concern too. The other culture is open communication.

c.  Unit controller of Xerox.

Another key element of success was the fact that unit controllers knew both the

financial and operational aspects of the business. A combination of all the elements

ensured the durability and high effectiveness of the management control system

implemented in Xerox.2.

2.  What recent trends at Xerox do you see influencing the management control process?

Xerox has the strategy for increasing the leadership skill in the company, that is “leadership

through quality” . The principle of this strategy is meeting the customer’s requirement. This

stratesy focus at long term period so that it always need to be improved by the

management, so training and sharing of information are very critical to the implementation

of this strategy. The major component of this strtaegy are employee involvement,

competitive benchmarking, and the quality of improvement process. Competitive

benchmarking focus at quality, product reliability, and cost. It requires the integration of 

competitive information, practices, and performance into decision making and

communication functions at all levels of the business.

3.  In your opinion, how important are organizational culture and individual personalities in

the Xerox control process?

In every organization or company, organizational culture can be considered as a part of 

development of that organization. Organizational culture sometime can represent the whole

organization, it also can predict the quality of output in the organization. The working

culture in Xerox are employee expected to be proactive and use analytical approach in

solving problems. The employee’s involvement in achieving company’s target is the biggest

concern too. The other culture is open communication. It means that individual personalities

are the main factor to build the best cultures. Because the drivers of that company is the

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Name: Nurul Sari

NIM: 1102048

Assignment 1 – Management Control System

individual of that company so it is important to develop the character of the personnel in the

company too achieve the company’s goal.