Systems
Introduction
Basic Concepts
Elements of a control system consists of:
1. A detector
2. An assessor
3. An effector
4. A communication networ
1.
Your eyes
Assessor= Your brain
Effector= Your foot
Communication network= Your nerves
system
Example
Your
Your
Example
Your
Concept of Management
Control
MANAGEMENT CONTROL
DEFINED
CHARACTERISTICS OF
MANAGEMENT CONTROL
PROCESS OF MANAGEMENT
CONTROL
Organizing
the process
Segmenting the organization
Risk assessments:
Planning further activities
Management control evaluations:
Corrective actions
Reporting:
FACTORS AFFECTING
MANAGEMENT CONTROL
Identify
MANAGEMENT CONTROL
SYSTEMS
It
NATURE OF MANAGEMENT
CONTROLS
SCOPE OF MANAGEMENT
CONTROL SYSTEM
Management
Planning
Involvement of Top Management:
Motivation of Employees:
Establish proper communication mechanism:
Boundaries of Management
Control
Strategy
Strategy Formulation
Management
Control
System design
Unsystematic, Strategic
Rhythmic,
decision may be made any predetermined
time
procedures
Nature of
information
Tailored-made to faced
problems, more external
and predictive, less
accurate
Integrated, more
internal and
historical, more
accurate
Communication Simple
of information
Difficult
Top management
and line managers
Strategy Formulation
Management
Control
Number of
Few people
involved people
Many people
Mental activity
Administrative and
persuasive
Discipline
Economics
Social psychology
Time horizon
Tend to long-term
Tend to short-term
End products
Goals, strategies
Strategy
implementation
Management
Control
Task Control
Focus of
activity
The whole of
operation
Individual task or
transaction
Nature of
information
Integrated, many
financial data
Tailored-made to
individual task, more
non-financial data
Supervisor or none
Mental activity
Administrative and
persuasive
Follow direction or
none
End products
Strategy
implementation
Management
Control
Task Control
Mental activity
Administrative and
persuasive
Follow direction or
none
Discipline
Social psychology
Economics, physics
Time horizon
Weekly, monthly,
annually
Daily
Type of cost
Discretionary costs
Engineered costs
Management
Control
Task Control
Enter a new
business
Expand a plant
Schedule
production
Change debt to
equity ratio
Decide magnitude
and direction of
research
Control of research
organization
Acquire an
unrelated business
Run individual
research project
Perception
Attitudes and Beliefs
Motivation
Goal Congruence
Inter-unit Conflict and Cooperation
Managerial Styles
Force Field Analysis
Resistance to Change
Entrapment
Compromising and Sacrificing
Socio-Cultural Influences