Ideal Management Control System

Subject : Management Control System

Guided By Lata Murthy madam Prepared By Snehal Ramdin

Index
1. 2. 3. 4. 5. Defination of management control Relationship between planning and control functions Implementation mechanism Features of ideal MCS Total system Monetary standards Definite pattern Coordinated system Line managers

Management Control Defination

Management control is the process by which managers at all levels ensure their team align themselves to the goal of the BU, division or organization referred as Goal congruence or Goal alignment ( or ) Management control is the process by which managers influence other members of the organization to implement organization strategies.

Relationship between planning and control functions

Functions
Top level least systematic
long run focus uses rough approximation for future process of planning more important

Activity

Nature of end results

Strategy formulation

Goals, strategies and policies

Planning and control equally important

Management control

Implementation of strategies

Lower level
most systematic focus short run operational activities uses accurate current data control more important

Task / operational control

Effiecient and effective implementation of individual tasks

Implementation mechanism

Management controls

Strategy

Organization structure

HR management

Performance

Culture

[Features]
Monetary Standards Total System Definite Pattern

Coordinated System

Line manager

Total system
A MCS is a total system as it covers all aspects of the companies operations. It is an overall process of the enterprise which aims to fit together the separate plans for various segments so as to assure that each harmonizes with each others, and that the aggregate effect of all of them on the whole enterprise is satisfactory.

Monetary standards
MCS is built around a financial structure and all resources and outputs are expressed in terms of money. The results of each responsibility centre in respect to production and resources are expressed in terms of the common denominator of money.

Definite pattern
The MCS follows a definite pattern and time table. The whole operational activity is regular and rhythmic. It is a continuous process even if the plans are changed in the light of experience or change in technology.

Coordinated system
A MCS is fully coordinated and integrated system. Even if the information for one purpose varied from that collected for another purpose, the data reconciles with one another. It is, therefore, more plausible to consider the interlocking subprocesses as a single set for achieving the objectives of the enterprise.

Line manager
Information collected from various sources is organized by the line managers. The line managers are the focal points in the MCS. Line managers motivate the employees to improve their performance and thereby achieve the organizational goal. Business budgets are prepared based on their advice and suggestions.