Control - Management Control - Management Control System

CONTROL, MANAGEMENT CONTROL, AND MCS

ELEMENTS OF MANAGEMENT CONTROL Management control is a generic term for a wide range of formal and informal approaches and mechanisms that aim to regulate the behavior of members of an organization. It is the process of assuring that resources are obtained and used effectively and ef ficiently in the accomplishment of an organization’s objectives

ELEMENTS OF A MANAGEMENT CONTROL SYSTEM

Delegated decision authority. Performance evaluation and measurement systems. Compensation and reward systems.

WHY IS CONTROL IMPORTANT? Control is the Final Link in the Management Process provides the critical link back to planning only way managers know whether organizational goals are being met Permits Delegation of Authority fear that employees will do something wrong for which the manager will be held responsible provides information and feedback on employee performance

A THEORETICAL FRAMEWORK FOR MANAGEMENT CONTROL PRACTICES

CULTURAL CONTROL To succeed with the technical and operational tasks, cultural control should first succeed. Cultural control elements are: Cultural beliefs, norms and values are the most important factors that shape the type of MCS in an organization Symbol-based control plays less effect on the organizations operational culture. It refers to the physical expressions of the organizational environment such as the design of offices, dress codes of the key staff and promoting specific behavior of employees

ADMINISTRATIVE CONTROLS Administrative control tasks refer to the organizational structure and governance system. It is the control tasks that involve the administrative matters such as the design of organizational structure, setting responsibilities and defining governance mechanisms. In this proposed new dimensions, administrative control include the task of vision/mission, organizational structure, governance system and boards and the process of MCS change. Vision and mission statement Organizational structure Organizational structure plays an important role to determine individuals’ responsibilities and accountabilities in the organization Governance system that is used to determine the relationship between the agent (management) and the principal (stakeholders) of an organization. Process of MCS change which refers to the possible changes that may occur in the MCS practices in a certain times.

PROCESS CONTROLS Process control is an integrated group of activities that are employed to accomplish specific organizational goals, such as physical, people and material element This type of control mostly involves the operational activities and daily routines of an organization Consist of: Planning Performance measurement Incentive plans and reward system The flow of the information and communication

THE NATURE OF MANAGEMENT CONTROL

CONTINGENCY FACTORS IN THE DESIGN OF CONTROL SYSTEMS

THREE DISTINCT PERIODS OF EVOLUTION OF MANAGEMENT CONTROL THEORY

FOUR CONCEPTUAL CATEGORIES

CHARACTERISTICS OF THE FOUR CONCEPTUAL CATEGORIES

THE PLANNING-CONTROLLING LINK

T YPES OF CONTROL

QUALITIES OF AN EFFECTIVE CONTROL SYSTEM

THE FIVE ESSENTIAL STAGES OF ORGANISATIONAL CONTROL

ORGANISATIONAL RELATIONSHIPS AND COMPLIANCE

THE BASIS OF DELEGATION

MAIN STAGES IN THE PROCESS OF DELEGATION

CONCEPT MAP OF DELEGATION, AUTHORIT Y, POWER AND RESPONSIBILIT Y