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MANAGEMENT CONTROL SYSTEMS

By:

Udevir Singh(1103)

Mrugank Mistry(1118)

Jignesh Patel(1136)1

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INTRODUCTION

ITC is one of India's foremost private

sector company. The ancient Imperial Tobacco Company

of India Limited is ITC Limited today,which was incorporated in August 24,1910.

Spread over more than 60 locations

across India. Business segments:

Hotels

Paperboards & Stationary

Packaging, Agri-Business

Packaged Foods & Confectionery

Information Technology

Branded Apparel

Personal Care

Safety Matches

Cigarettes 2

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ORGANIZATION STRUCTURE

(THREE-TIERGOVERNANCESTRUCTURE)

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BOARD OF DIRECTORS

Protect and enhance shareholder value

Ensures that the Company has clear goals relating to shareholder

value.

Sets strategic goals and seeks accountability for their fulfillment.

Also provides direction and exercises appropriate control to ensurethat the Company is managed in a manner that fulfils:

stakeholders aspirations

societal expectations.

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CORPORATE MANAGEMENT

COMMITTEE

Strategic management of companys

business as per the directions ofBoard.

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DIVISIONAL MANAGEMENT

COMMITTEE

Also known as strategic Business

Unit. Function is to realize tactical and

strategic objectives in accordance

with Board approved plan.

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Advantage:

Strategic supervision on behalf of the shareholders by theBoard.

Through Division of Business:

Company can remain free from collective strategicresponsibilities.

Focuses on enhancing the quality, efficiency.

Effectiveness of the business.

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COMPENSATIONMANAGEMENT

Remuneration committee

Recommends to the Board the compensation terms of Executive

Directors and the senior most level of management

Responsibility for administering the Employee Stock OptionSchemes.

Composition

Comprises five Non-Executive Directors, four of whom areIndependent Directors.

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CONTROLSYSTEMS

Policy to Prevent Discrimination at Workplace

Acknowledges that every individual brings a different and unique setof perspectives and capabilities to the team.

Promotes diversity and offers equality of opportunity to allemployees.

ITC does not engage in or support direct or indirect discrimination inrecruitment, compensation, access to training, promotion, terminationor retirement based on caste, religion, disability, gender, age, race,color, ancestry, marital status or affiliation with a political, religious, orunion organization or minority group.

Application of the non-discrimination employment policy rests withthe Unit Head

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Policy on Freedom of Association

ITC's culture relies on building partnerships and interdependence.

Helps to build, sustain and strengthen harmonious employeerelations in the organization.

Employees are not discriminated against for exercising this right.

Right to organize themselves into interest groups independent fromsupervision by the management.

Policy is communicated to all employees through inductionprogrammes, policy manuals and intranet portals.

Each ITC Unit has appropriate systems to ensure compliance withthe Policy.

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Policy on Information and Consultation on Changes

Support an employee engagement process.

Promotes a culture of partnership.

All major changes involving work processes, manning norms andother productivity linked issues are carried out after discussions with

the employees and the recognized unions.

Shared with employees at all units through a series of formal

communication meetings, and through the intranet portals.

monitored by the Unit Head.

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ITC HOTELS

ITCs hotel division was launched onOctober 18, 1975.

Distinctive logo of hands folded in thetraditional Namaste.

Each of the chains hotels paysarchitectural tribute to ancientdynasties, which ruled India from timeto time.

Joint venture with the SheratonCorporation to strengthen itsinternational marketing base.

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STRATEGIC BUSINESS UNIT

ITC FOUR BRANDS OF HOTELS

ITC Hotels - Luxury Collection

WelcomHotel | Sheraton

Fortune Hotels

WelcomHeritage

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ORGANIZATIONALSTRUCTURE

Follows a functional organizational structure.

Manager brings specialized knowledge

Likely to make better decisions in their fields.

Skilled specialist should be able to supervise workers in the

same function better than the generalist.

Important advantage of a functional structure is efficiency.

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Eight functional departments

1) Food and Beverages Production

2) Food and Beverages Service

3) Front Office

4) Housekeeping

5) Engineering

6) Sales

7) Finance

8) Human Resource

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PERFORMANCE MANAGEMENT It is a mechanism that improves the likelihood that the organization

will implement its strategies successfully.

Yearly appraisal system.

Factor Rating Method.

The various attributes on which they are rated are:1) JOB KNOWLEDGE

2) SKILLS

3) CO-OPERATION

4) RESPONSIBILITY

5) ATTITUDE TOWARDS WORK6) INITIATIVE

7) EFFICIENCY

8) ATTENDANCE

9) PUNCTUALITY

10) DISCIPLINE17

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Each of these attributes carries certain weight age depending

upon their importance.

The employee is scored on a likert scale of 1 to 5, each level

representing a certain level of behavior or skill.

The score is further multiplied to the weights and scores for each

attribute is finally added.

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Advantages of Factor rating

Helps the organization have a clear account of average, good and

excellent performers.

Training of individuals, deciding who needs to be trained and in

which area.

Understanding who needs to be retained in the organization.

Controlling employees behavior and check its sync with theorganization culture and values.

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QUALITYCONTROLSYSTEMS

1) WOW Ratios

At the daily meetings each department submits its WOW

ratios.

Indicate the performance of each department on a likert

scale.

Performance of each department is compared on a monthly

basis.

Best performing department is rewarded for theyre

performance in the form of incentives and perks. 20

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2) Model Areas

Each month departments have to take up Model Areas.

Each department has to choose a specific area within theorganization.

For the purpose of improvement.

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3) Process Line Charts

Defines the process flow of any department or function.

Looks into the old process charts and tries to make processimprovements.

Based on industry benchmarks and research it then goes

ahead and creates a new improved process chart.

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THANK YOU

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