Decentralized organizations

Service quality can be understood as an organization’s ability to fulfill its obligatory functions or mandates in satisfying customer needs. In the Indonesian context, especially at District Education Office level, service quality is the District Education Office’s ability to fulfill its obligatory functions to satisfy school needs. Delivering services depends on many different factors.

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(BQ) In the previous chapters we considered how information could be developed to help managers make decisions. In this chapter we will discuss the fundamentals of management control systems. After studying this chapter you should be able to: Explain the role of a management control system, identify the advantages and disadvantages of decentralization, describe and explain the basic framework for management control systems.

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(BQ) Chapter 15: Transfer pricing. A common example of decentralized decision making occurs when business units (divisions) within the organization buy goods and services from one another and when each is treated as a profit center (i.e., when each unit manager is evaluated on reported unit profit). When such an exchange occurs, the accounting systems in the two divisions record the transaction as if it were an ordinary sale (purchase) to (from) an external customer (supplier).

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FACTORS THAT INFLUENCE THE DECENTRALIZATION OF THE INFORMATION SYSTEMS UNIT IN ORGANIZATIONS : A CONTIGENCY APPROACH Figure 1.2 displays the average allocation of school effectiveness in markets with three and ten equally-sized districts. Panel A depicts the case where parents are unconcerned about the peer group, as in the left-hand panels of Figure 1.1. Here, families must be perfectly sorted on school effectiveness in equilibrium, and the average μ ’s depicted in the figure are simply order statistics from the standard normal distribution....

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