Description
A management control system (MCS) is a system which gathers and uses information to evaluate the performance of different organizational resources like human, physical, financial and also the organization as a whole considering the organizational strategies.
Management Control Systems
Eleventh Edition
By: Robert N Anthony Vijay Govindarajan
? Robert N. Anthony Anthony (2007) defined Management Control as “The process by which managers influence other members of the organization to implement the organization’s strategies. Management control systems are tools to aid management for steering an organization toward its strategic objectives. Management controls are only one of the tools which managers use in implementing desired strategies.”
The Nature of Management Control Systems
? Designing and implementing of management systems, used to plan and control the firm’s performance. ? They include;
? ? ? ? ? ? Strategic planning Budgeting Resource allocation Performance measurement, evaluation, reward Responsibility center allocation Transfer pricing
Basic Concepts
? Control
? ? ? ? A detector or sensor An assessor An effector A communication network
? Management ? Systems
Boundaries of Management Control
Activity
Strategy formulation Management Control Task Control
Nature of End Product
Goals, Strategies, policies
Implementation of strategies
Efficient and effective performance Of individual tasks
doc_205361499.ppt
A management control system (MCS) is a system which gathers and uses information to evaluate the performance of different organizational resources like human, physical, financial and also the organization as a whole considering the organizational strategies.
Management Control Systems
Eleventh Edition
By: Robert N Anthony Vijay Govindarajan
? Robert N. Anthony Anthony (2007) defined Management Control as “The process by which managers influence other members of the organization to implement the organization’s strategies. Management control systems are tools to aid management for steering an organization toward its strategic objectives. Management controls are only one of the tools which managers use in implementing desired strategies.”
The Nature of Management Control Systems
? Designing and implementing of management systems, used to plan and control the firm’s performance. ? They include;
? ? ? ? ? ? Strategic planning Budgeting Resource allocation Performance measurement, evaluation, reward Responsibility center allocation Transfer pricing
Basic Concepts
? Control
? ? ? ? A detector or sensor An assessor An effector A communication network
? Management ? Systems
Boundaries of Management Control
Activity
Strategy formulation Management Control Task Control
Nature of End Product
Goals, Strategies, policies
Implementation of strategies
Efficient and effective performance Of individual tasks
doc_205361499.ppt