Management Control Instruments

Some knowledge of Excel, namely the use of dynamic tables and graphs.

Course Unit Teaching Approach

The course unit will be conducted through theoretical-practical classes, aiming to combine the expository dimension of the subject with the necessary practical exemplification, where both the lecturer and students will present and discuss the resolution of various real-life case studies.

 Teaching Methods

The course unit will be taught through theoretical-practical classes, combining the theoretical exposition of fundamental concepts with practical application by students. The teaching approach follows an active learning methodology, encouraging research, critical reflection, and structured knowledge construction in a progressive manner.

 Systematic Literature Review – Research-Based Learning (RBL)

In the theoretical component, students will carry out a systematic literature review, in pairs, using the PRISMA methodology. The process begins with a guiding question, which students must answer based on the analysis of selected scientific studies.

 This approach falls within Research-Based Learning (RBL), promoting the development of research, critical analysis, and information synthesis skills. The review will subsequently be presented in class, providing a moment for discussion and collective reflection on the theoretical topics covered in the syllabus.

 Practical Development – Problem-Based Learning (PBL) and Project-Based Learning (PjBL)

In the practical component, students will work in groups of four, developing a Balanced Scorecard (BSC) and a Tableau de Bord for a company director. The company may be real or fictional.

 The development process follows a progressive approach, where before each phase, the lecturer provides a theoretical explanation of the topic and presents illustrative examples, ensuring that students understand the concepts and their practical application before starting their group work.

 The stages of the project are as follows:

•  Strategy Formulation – Definition of the company’s vision and mission.
• Definition of Strategic Objectives – Establishment of long-term goals.
• Strategy Communication – Structuring the strategy to ensure clarity and alignment within the organization.
• Definition of Indicators – Identification of key indicators for monitoring strategic, tactical, and operational objectives, along with their associated targets.
• Measurement Planning – Definition of calculation timelines, data sources, and formulas for each indicator.
• Performance Evaluation – Application of the BSC to assess company performance, using simulation data within a software tool.
• Construction of the Tableau de Bord – Development of a Tableau de Bord for a director of a functional area, facilitating the monitoring of the most relevant indicators for decision-making.

The project will be presented in class, allowing students to learn by observing the solutions developed by other groups.

 Throughout the entire process, the lecturer assumes the role of a consultant, monitoring the groups’ progress, providing continuous feedback, and helping students develop a critical perspective on their work, fostering continuous improvement throughout the project.

 This approach aims to enhance autonomy, analytical thinking, and decision-making skills, preparing students for the real-world application of management control tools.

This curricular unit intends to present, analyze, and discuss the different instruments intended to evaluate and manage the performance of organizations, whether for profit organizations or not, and therefore of its managers, through a balanced set of performance indicators and mechanisms of reporting, with the objective to assessing efficiency and effectiveness.

At the end of the course unit, the student should be able to:

Identify the role, objectives, recipients, and diversity of instruments of a management control system.

Develop and analyze management tools, both strategically and operationally.

Identify the implementation problems of the various instruments, with a view to promoting their objectives and avoiding the adoption of indicators that may stimulate counterproductive attitudes and behaviors.

They should also be able to know the different software available on the market to implement the BSC.

They must also be able to build a spreadsheet that supports the construction of the BSC or Tableau de Board.

1 – Performance evaluation and control systems.

2 – Integrated performance evaluation systems.

3 – Tableau de Board and its implementation

    3.1. Fundamental concepts.

     3.2. Select the axes of progress.

     3.3. Determine intervention points.

     3.4. Select objectives and indicators.

     3.5. Structure the TB.

4 – The Balanced Scorecard and its implementation.

    4.1. Basic concepts

    4.2. Preparation of the implementation process

    4.3. The construction of the strategy map.

    4.4. Definition of indicators.

    4.5. Goal settings.

    4.6. Identification, alignment, and selection of initiatives.

    4.7. The first control meeting.

    4.8. The organization focused on strategy.

    4.9. Construction of a spreadsheet to implement the BSC.

5 – Incentives based on control instruments.

NAO