ideal management control system]

8/2/2019 Ideal Management Control System]

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Ideal

Management Control System

Subject : Management Control System

Guided By Prepared By

Lata Murthy madam Snehal Ramdin


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Index

Defination of management control

Relationship between planning and control functions

Implementation mechanism

Features of ideal MCS

1. Total system

2. Monetary standards

3. Definite pattern

4. Coordinated system

5. Line managers


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Management Control Defination

Management controlis 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 controlis the process by which managers

influence other members of the organization to implement

organization strategies.


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Relationshipbetween planning

and controlfunctions


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Functions Nature of end resultsActivity

Top level

least systematic long run focus

uses rough

approximation for

future

process of planning

more important

Planning and

control equally

important

Lower level

most systematic

focus short run

operational activities

uses accurate current

data

control more

important

Strategy

formulation

Goals,

strategies and

policies

Task /

operational

control

Effiecient and

effective

implementation

of individual

tasks

Management

control

Implementation

of strategies


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Strategy Performance

Managementcontrols

Organization

structure

Culture

HR

management

Implementation mechanism


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[Features]

Total System

Monetary

Standards

Definite Pattern

Coordinated

System

Line manager


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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 onthe whole enterprise is satisfactory.


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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.


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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.


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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 sub-

processes as a single set for achieving the objectives of theenterprise.


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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 andsuggestions.


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ideal management control system]

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