Management control system notes
Chapter 1 - Management and control
Management
MCS has the same meaning as the terms execution and strategy implementation
Objective setting: In any organization employees must have a basic understanding of what the organization is trying to accomplish.
Strategy formulation: Strategies define how organizations should use their resources to meet these objectives. A well-conceived strategy guides employees in successfully pursuing the organization objectives.
Management control versus strategic control
Control systems can be viewed upon as having two functions: Strategic control and management control. Strategic control involves managers addressing the question of “ is our strategy valid? Whereas management control focuses in execution and it involves addressing the general question: “ Are our employees likely to behave in line with the strategy.
Strategic control primarily have a external focus dealing with the company’s swot. Management control have a internal focus. How can we influence employees behaviour in a desired way.
Behavioural emphasis
Management control involves managers taking steps to help ensure that the employees do what is best for the organization
Causes of management control problems
Lack of direction: Employees do not know what is expected from them: Management control function involves informing employees as to how they can direct their contribution
Motivational problems: Employees sometimes act in their own self-interst on the expense of the company
Personal limitations. Some employees know what is expected from them, they are also motivated but they have personal limitation for instances. Some can be person-specific others can be lack of training or knowledge.
Characteristics of good management control
Good control means that management can be reasonably confident that no major unpleasant surprise will occur – good management also recognises that failure can occur, because perfect management does not
Management
MCS has the same meaning as the terms execution and strategy implementation
Objective setting: In any organization employees must have a basic understanding of what the organization is trying to accomplish.
Strategy formulation: Strategies define how organizations should use their resources to meet these objectives. A well-conceived strategy guides employees in successfully pursuing the organization objectives.
Management control versus strategic control
Control systems can be viewed upon as having two functions: Strategic control and management control. Strategic control involves managers addressing the question of “ is our strategy valid? Whereas management control focuses in execution and it involves addressing the general question: “ Are our employees likely to behave in line with the strategy.
Strategic control primarily have a external focus dealing with the company’s swot. Management control have a internal focus. How can we influence employees behaviour in a desired way.
Behavioural emphasis
Management control involves managers taking steps to help ensure that the employees do what is best for the organization
Causes of management control problems
Lack of direction: Employees do not know what is expected from them: Management control function involves informing employees as to how they can direct their contribution
Motivational problems: Employees sometimes act in their own self-interst on the expense of the company
Personal limitations. Some employees know what is expected from them, they are also motivated but they have personal limitation for instances. Some can be person-specific others can be lack of training or knowledge.
Characteristics of good management control
Good control means that management can be reasonably confident that no major unpleasant surprise will occur – good management also recognises that failure can occur, because perfect management does not