Chapter 1 Topic - 1

Management Control
Systems (MCS)
An Introduction

Prof. PUTTU GURU PRASAD

FACULTY MEMBER
INC GUNTUR
pgp4149@gmail.com
 In this chapter - We shall discuss
 Purpose Of Management Control System
 Domain Of Management Control System
 Organizational Context Of Management Control
Systems
 Formal And Informal Control Systems
 Subsystems And Components Of Control
System
 Cybernetic And Systems Approach Of Control
 Industrial Dynamics And Management Control
 Accounting Database For Control
 Introduction
 Role Of Management?
 Plan, Organize, Integrate And Interrelate
Organizational Activities
 To Achieve Organizational Activities
 This Is Facilitated Through Management
Control Systems
 Control System
 Set of formal and informal system.

 Assists management in steering the

organization towards its goal.

 Helps in guiding employees.

 Brings unity in diversity.

 Purpose of MCS
 Assist management in coordination.
 Steering activities towards fulfillment of
goal, objective and overall purpose.
 Ensures unity in diversity.
 Helps management in decision making
 Control System - Functions
 Planning activities of an organization
 Coordinating activities of an organization
 Communication information to different
levels of the hierarchical structure
 Evaluating information and deciding the
actions to be taken
 Influencing people to change their
behavior.
Thank You