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Non-profit Organization and Management Control

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Non-profit Organization and Management Control
A Central University

Department Of Management Studies Assignment on Management Control System in Non-Profit Organization Management Control System MBA 3rd Semester

2010-2011

Submitted To:

Submitted By:

Dr.B.D.Mishra Akriti Gupta Reader Iti Shrivastava M.B.A.; Ph.D Shikha Sahu Financial Management, Business Policy Shobhna Jha Strategic Management

INDEX
Service Organization in General 01

1

Professional Service Organization Financial Service Organization Health care Organization Non-profit Organization Conclusion

06 12 16 18 24

SERVICE ORGANIZATIONS
In this Assignment, we describe the management control process in service organizationsorganizations that produce and market intangible services. We first discuss the characteristics that distinguish service organizations in general from manufacturing organizations. We then discuss the special problems that arise in professional, financial service, health care, and nonprofit organizations.

2

Service Organizations in General
In the 18th and the early part of the 19th century, the workforce in the United States was predominantly in agriculture. After that, it was predominantly in manufacturing. Early in the 20th century, employment in the service sector overtook employment in the manufacturing sector. By 2003, service sector employment had grown to more than twice that of manufacturing. In this chapter we provide insights into management control systems for service organizations.

Characteristics
For several reasons, management control in service industries is somewhat different from management control in manufacturing companies. Some factors that have an impact on most service industries are discussed in this section. (Others, which are characteristics of particular service industries, are discussed later.) These factors apply also to the management control of legal, research and development, and other service departments in companies generally. 1. Essence of Inventory Buffer Goods can be held in inventory,

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