Scribd
Upload
30 views21 pages

The Nature of Management Control Systems

Management control involves coordinating individuals and groups to implement organizational strategies. It is a process carried out by managers at all levels of the organization. A management control system coordinates activities, communicates information, evaluates performance, and influences people's actions. While management control aims to ensure strategies are carried out, conforming strictly to plans is not always best - the goal is achieving organizational objectives. Control involves interactions between individuals and aligning personal and organizational goals.

Uploaded by

otrayigus20008199
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
30 views21 pages

The Nature of Management Control Systems

Management control involves coordinating individuals and groups to implement organizational strategies. It is a process carried out by managers at all levels of the organization. A management control system coordinates activities, communicates information, evaluates performance, and influences people's actions. While management control aims to ensure strategies are carried out, conforming strictly to plans is not always best - the goal is achieving organizational objectives. Control involves interactions between individuals and aligning personal and organizational goals.

Uploaded by

otrayigus20008199
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 21

Chapter 1

The Nature of Management


Control Systems
Basic Concepts
 What is control?
 Elements of a control system:
» detector or sensor
» assessor
» effector
» communication network
Basic Concept
 Examples:

»Thermostat: simple
»Body temperature: more
complex
»Automobile driver: behavior
aspects
Management
Organization: a group of
people who work together
Organization has goals
Management: leaders in
organization
Management
hierarchy of management
CEO decides the strategy to
attain goals
MC process: ensure that
members implement the
strategies
System
A prescribed way of carrying out
activities that are repeating
 Characterized by a rhythmic,
recurring, coordinated series of
steps
 To accomplish specified purpose(s)
Management Control
 Standard is not preset
 Not automatic
 Coordination among individuals
 MCS is a “black box”
 Much control is self-control
Boundaries of MC
 See exhibit 1-2:
Strategy Formulation

Management Control

Task Control
Boundaries of MC
 MC: the process by which
managers influence other
members to implement the
strategies
MC Activities
 Planning
 Coordinating activities
 Communicating information
 Evaluating information
 Deciding actions
 Influencing people

1
Actions vs Plans
 MC does not necessarily mean that
actions should correspond to a plan
 The purpose is to ensure that
strategies are carried out so that the
organization’s objectives are attained

1
Actions vs Plans

 Conforming to a budget is not


necessarily good, and departure
from it is not necessarily bad

1
Behavioral Considerations
MCS involves interactions
among individuals
How to achieve goal
congruence between personal
goals and organization’s goals

1
Strategy Implementation
 See exhibit 1-3:
»management controls
»organization structure
»human resource management
»culture

1
Emphasis
 Financial performance
» net income, ROE
 Nonfinancial performance
» quality
» market share
» customer satisfaction
» on-time delivery
» employee morale

1
Interactive Control

Today’s Control

Tomorrow’s Strategy

1
Strategy Formulation
 Strategy formulation is the process of
deciding on the goals of the
organization and the strategies for
attaining these goals
 Strategy revision is the process of
reexamining, changing, or adopting
new strategies
1
Strategy Formulation vs MC
 Strategyformulation: process of
deciding on new strategies
» unsystematic, judgment, few people, part of
organization
 Management control: process of
deciding how to implement strategies
» systematic, all levels, whole organization

1
Task Control
 Task control is the process of
assuring that specified tasks are
carried out effectively and efficiently
 Transaction-oriented
 Activities are scientific
 Most info in organization is TC

1
Task Control vs MC
 Task control:
» scientific, specific tasks, less judgment
 Management control:
» behavior, organizational units
 See exhibit 1-5 for examples of decisions
in planning and control functions

2
Impact of Internet
 Impact on business:
» Instant access
» multi-targeted communication
» Costless communication
» Display images
» Shifting power and control to individual
 Facilitates coordination and control but
not substitute management control
2

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy