Analysis of the Management Controls in Bellagio Casino Resort
The resort in question is one of the largest companies whose operations are based on gambling casinos as well as other related leisure facilities. The activities of gambling tend to offer various opportunities for theft (Merchant & Stede, 2017). Therefore, some controls are laid in place to regulate such behaviour. Notably, the Bellagio Casino Resort runs diversified activities of gambling. Thus, every event is allocated to its control system. For instance, we shall be focusing on the controls employed by the blackjack dealers, the vice president of the table games as well as the pit bosses. Below is the analysis of the effectiveness of these control systems at the Bellagio Casino Resort case.
Characteristics of the control strategy
In the Blackjack dealers, there is a tight control system due to the high visibility of the dealers makes it difficult for activities of fraudulence to occur thus reducing the susceptibility to unnecessary losses (Merchant & Stede, 2017). Furthermore, with the existence of installed closed-circuit television observation, the table assignments, and employees that are keeping watch on the floor as well as the two dealers at the table. These measures heighten the controls and make the dealers in question experience tight controls.
The pit bosses, regarding the control strategy, they are a little bit tight but not as much as the dealers. However, they are consistently watching the dealers as well as handling customers, which makes them visible (Merchant & Stede, 2017). Moreover, they share some of the control with the dealers which include licensure, CCT observation, thorough documentation during their interaction with the finances that include the perks belong to customers, chip counts as well as the bonuses that are based on the profitability, and a background check controls.
Finally, the vice president of the table games works to oversee the games’ operations. They thus have some aspect of the tight control strategy to ensure that all the games operations run smoothly without any elements of fraud. The VPTG are capable of abusing the complimentary service while evading any problems that may face their friends. Hence, it has loose controls.
List of controls
The controls include;
- CCT observation.
- Background checks
- Thorough documentation in case one handle money or other related documents
- Two dealers at the table
- Employees on the floor
- Table assignment
The CCT observation control ensures that all the events that take place in the casino are monitored so that no fraud takes place. The licensure is put in place to ensure that the gaming activities in the casino are all licensed and meet the standards of the Gaming control board. Thorough documentation in case one can handle documents or money helps as a control measure as it assists in keeping track of the transactions that take place in the casino, this helps prevent fraud (Merchant & Stede, 2017). The two dealers at the table and employees on the floor assist in monitoring the gaming activities that take place in the casino thus help prevent any form of fraud. Table assignment ensures the actions of each table are being watched and all the rules are followed. Fraudsters being one of the greatest hindrances to the profitability of the casino, the company had to take its measures to ensure that no losses are incurred through cheats (Strauss, 2015). The controls were thus designed to eradicate or bar any fraudulent behaviours in the casino in question.
Managers view of the control system
Yes, managers should be proud of the company’s control system. In as much as these internal controls do not guarantee the excellent management control in the presented case, the managers are proud because the controls sufficiently and satisfactorily ensure the safety of cash as well as cash equivalent stock and movement in their Casino (Merchant & Stede, 2017). With a correctly working control system, there is increased internal control of the cash by the management of the company, and thus the company expands its profitability. Good management control system is related to the perfect control system which is the goal of a casino company.
Are any of the control systems in place at the Bellagio suitable for firms in other industries?
Yes, since all industries always work towards getting a great managerial control over their profitability and increased control of cash. Since some of the controls used in the company have advanced towards achieving their primary aim, they can be very successful when applied in different circumstances. Since all industries work towards gaining managerial control, it is clear that some of the controls in the firm in question are used in other sectors. For instance, the CCT observation is employed in many different industries (Strauss, 2015). Others include the proper documentation in case an employer interacts with money or the product produced by the industry.
Generally, management control systems in Bellagio are effective in ensuring all the gaming activities that take place have no aspects of scam. The CCT observation, licensure, background checks, table management amongst other controls have provided maximum profitability and reduced losses caused by deception of the participants. Other firms that are under the risks of being invaded by fraudsters such as education systems and job interviews can employ such managerial controls for efficiency.
Merchant, K., & Stede, W. V. (2017). Management control systems: Performance measurement, evaluation, and incentives. Philadelphia: Trans-Atlantic Publications.
Strauss, L. (2015). Management control system design: conditional interdependencies between behavioral constraints, incentives, and employee selection. New York: Marble.
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