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Bellagio Casio Resort Essay

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Issues in Management Accounting

Bellagio Casino Resort

Word count 1064

Introduction

Based on my assessment of the management control systems used by the Bellagio Casino Resort, it illustrates a control system that is dominated by action and personal controls, rather than result controls. An analysis of this system reveals some insights of some of the factors that limit the practicality of result controls.

This paper will identify the types of control devices used by Bellagio Casino Resort. It will focus on three roles at three levels of authority in the casino – blackjack dealers, pit bosses, and the vice president of the table games. It will characterise the “control strategy” (example tight versus loose) used over each of these roles. It will also identify the control problems that these controls are designed to address.

Blackjack dealers, pit bosses, and the vice president of table games:

Tighter Management controls systems should provide a higher degree of certainty that employees will act as the organisation wishes (Merchant & Van der Stede 2007:128). Management control includes all the devices or systems managers use to ensure that the behaviours and the decision of their employees are consistent with the organisation’s objectives and strategies. The term “tight control” therefore means effective and efficient control systems - that is “good” control.

The controls used over these roles will be analysed in the following table:

Control Type
Result controls

Dealers
None practical

Pit bosses
None practical

Vice president
Internal Audit Individual objectivity Profit No controls mentioned but could be implied in the delegated authority No controls mentioned, but could be implied in delegated authority No controls are likely. He needs the flexibility of action choices

Action Control 1) Behaviour constraints

-Separation of duties Separation of duties -Physical constraints like locks on boxes

Action Control 2)...

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