Management Control System The Nature of Management Control System

CONTROL
Control is a implementing results. process of planning, and evaluating the

Control may be formal or informal.

CONT
Control consists of the following elements:
A Detector or sensor Information about what is happening An Assessor Comparison with standard An Effector Behavior alteration, if needed A Communications Network devices that transmit information between

SYSTEMS
A system is a prescribed way of carrying out an activity or set of activities; usually the activities are repeated. A system is more or less rhythmic, recurring, coordinated series of steps that are intended to accomplish a specified purpose.

MANAGEMENT
Organisation is a group of two or more people. Organisation consists of hierarchy of managers with the CEO at the top. Each Manager subordinate. has superior and a

MANAGEMENT CONTROL
Management Control is the process by which managers influence other members of the Organisation to implement the organizations strategies. It involves Planning, Coordinating, communicating, Evaluating, Deciding & Influencing the people

MANAGEMENT CONTROL SYSTEM

According to Prof. John Dearden :
MCS is the process by which managers assure that resources are obtained and used effectively and efficiently in the accomplishment of the organization goals.

CONT
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.

OBJECTIVES
Acquaint future managers with control systems in profit making as well as not for profit making organization. To gain knowledge, insight and analytical skills related to how a firms managers go about designing, and using planning and control systems to implement a firms strategies

CONT
To assist management in the coordination of the parts of an organization and the steering of those parts towards the achievement of its overall purposes, goals and objectives. A control system is designed to bring unity out of diverse activities of an organization as it seeks to fulfill its overall purpose.

Scope of MCS
Activity
Strategy formulation Management Control Task Control

Nature of End Product

Goals, Strategies, policies Implementation of strategies Efficient and effective performance Of individual tasks

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