Management Control System
Chap 1 : MANAGEMENT AND CONTROL 1) Causes of Management -Lack of Direction -Motivational Problems -Personal Limitation 2) Avoidance -Activity elimination : Eliminate what is not working properly -Automation -Centralization -Risk Sharing Chapter 2 SECTION II 3) Result Control : Preventive type Control Helps Mgr to address strategy, org, employees are performing - Steps : 1. Define Performance dimension 2. Measure Performance 3. Setting Target 4. Provide Reward Requirement for Effective Result control : - Knowledge of desired result : Org should know what result are desired - Ability to influence desired result : Employee have influence on result (Controllable) -Ability to measure Controllable result effectively : Org can measure result effectively (Measurable) Result measure should be : Precise, Objective, Timely, Understandable
Chapter 3 4) Action Control : To ensure employees act in org’s best interest a. Form of Action control - Behavioral constraints – Negative Form (You can’t do this You can’t do that) - Pre action Review – Scrutiny(详查정밀조사) of action plan (What will they do?) - Action Accountability – (의무義務) Hold employees for action required (You should do this and that) Requires : Define actions acceptable or unacceptable Communicate definitions to employees Observe what happens (reaction) Reward or Punish - Redundancy (과잉過剩) : Set more Human resource than what they need (Backup) b. Requirement for effective action control : - Knowledge of desired action - Ability to ensure that desired actions are taken 5) Personnel Control: Build employees’ natural tendency to control / motivate themselves a. Purpose: Make people understand what company is doing Ensure people is doing good job
The summary of Management Control Systems – Kenneth A. Merchant [Prentice Hall] Summarized by Mooyoung Son Linkoping University SMIO 2009 http://cyworld.com/zekison
Engage self-monitoring (Naturally present force that want to do good job) (I want A for exam!) b. Major
Chapter 3 4) Action Control : To ensure employees act in org’s best interest a. Form of Action control - Behavioral constraints – Negative Form (You can’t do this You can’t do that) - Pre action Review – Scrutiny(详查정밀조사) of action plan (What will they do?) - Action Accountability – (의무義務) Hold employees for action required (You should do this and that) Requires : Define actions acceptable or unacceptable Communicate definitions to employees Observe what happens (reaction) Reward or Punish - Redundancy (과잉過剩) : Set more Human resource than what they need (Backup) b. Requirement for effective action control : - Knowledge of desired action - Ability to ensure that desired actions are taken 5) Personnel Control: Build employees’ natural tendency to control / motivate themselves a. Purpose: Make people understand what company is doing Ensure people is doing good job
The summary of Management Control Systems – Kenneth A. Merchant [Prentice Hall] Summarized by Mooyoung Son Linkoping University SMIO 2009 http://cyworld.com/zekison
Engage self-monitoring (Naturally present force that want to do good job) (I want A for exam!) b. Major