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04/08/2304/08/23 [email protected], VIM [email protected], VIM Pune 11
Nature of Management Control SystemsNature of Management Control Systems
ManagementManagement
ControlControl M.C.S.M.C.S.
SystemSystem
SuccessfulSuccessfulStrategy Strategy ExecutionExecution
04/08/2304/08/23 [email protected], VIM [email protected], VIM Pune 22
Nature of Management Control SystemsNature of Management Control Systems
Management is -
- Getting things done in the desired manner.
- Ensure optimum utilization of resources
- Ensure group works towards a common goal.
- Exercise Generic Functions - Planning, organizing, directing, coordinating, motivating, controlling etc
- Ensure, entire organization hierarchy is putting its efforts towards achieving the set Goal.
04/08/2304/08/23 [email protected], VIM [email protected], VIM Pune 33
Nature of Management Control SystemsNature of Management Control Systems
Management:-
The main objective of management is The main objective of management is to achieve the strategic goal through to achieve the strategic goal through effective and efficient utilization of effective and efficient utilization of resources.resources.
04/08/2304/08/23 [email protected], VIM [email protected], VIM Pune 44
Nature of Management Control SystemsNature of Management Control Systems
Control comprises of -
- Design how to get there (desired destination) - Plan
- Measure the performance. - Detect
- Evaluate the performance. - Asses
- Initiate the Corrective Action if needed. - Effect and communicate
04/08/2304/08/23 [email protected], VIM [email protected], VIM Pune 55
Nature of Management Control SystemsNature of Management Control Systems
Control :-
The objective of control is to ensure that the things/activities follow the pre-determined track.
04/08/2304/08/23 [email protected], VIM [email protected], VIM Pune 66
Nature of Management Control SystemsNature of Management Control Systems
System is -
2. Set of coordinated efforts/Components
3. Rhythmic process
4. Recurring pattern giving assured output
1. Well defined/ formal/systematic method of accomplishing a task.
Thus a system is a - A well prescribed way of doing an activity usually in repetitive manner.
5. Framework to carry an activity ( I-P-O )
04/08/2304/08/23 [email protected], VIM [email protected], VIM Pune 77
Establishing the standards
Operations – Organizing,
Staffing, Directing etc
Performance Measurement
Performance Appraisal
Not OK
OK
New Improved Standards
Revised Standards
Steps in Controlling
Nature of Management Control SystemsNature of Management Control Systems
04/08/2304/08/23 [email protected], VIM [email protected], VIM Pune 88
Nature of Management Control SystemsNature of Management Control Systems
Correction Feedback
Goals, Strategies, Goals, Strategies, Policies, Strategic Policies, Strategic Plans, Programs, Plans, Programs, BudgetsBudgets
Business Business Operations Operations /Implementatio/Implementation of the n of the StrategyStrategy
Performance Performance Appraisal- Appraisal- Measure & Measure & Compare the Compare the Actual with Actual with DesiredDesired
EnvironmentEnvironmental Factorsal Factors
Is Actual Is Actual Performance Performance is in line is in line with Desired with Desired one?one?
Reward
Feedback
Yes
No
I/P
O/P
PROCESS
04/08/2304/08/23 [email protected], VIM [email protected], VIM Pune 99
Nature of Management Control SystemsNature of Management Control Systems
ManagementManagementImplement the Implement the
StrategyStrategy
ControlControl Detect, Detect, Assess &Assess &
EffectEffect
M.C.S.M.C.S.
System System Structured Framework to Structured Framework to carry out a (control) taskcarry out a (control) task
SuccessfulSuccessfulStrategy Strategy Impleme-Impleme-ntationntation
If you put together the three concepts we get -
04/08/2304/08/23 [email protected], VIM [email protected], VIM Pune 1010
Nature of Management Control SystemsNature of Management Control Systems
MCS is the implementation of prescribed MCS is the implementation of prescribed method to ensure that the organization method to ensure that the organization is marching towards a common goal.is marching towards a common goal.
Management control process is the process Management control process is the process by which managers at all levels ensure by which managers at all levels ensure that the people they supervise that the people they supervise
implement their intended strategies.implement their intended strategies.
MCS is like designing and implementing a MCS is like designing and implementing a road map: it shows the final destination road map: it shows the final destination and and usually the best way to get there usually the best way to get there and and ensures every thing follows the map. ensures every thing follows the map.
04/08/2304/08/23 [email protected], VIM [email protected], VIM Pune 1111
Elements of Management Control SystemsElements of Management Control Systems
- 1. Planning what is desired.
- 2. Setting the standards of performance.
- 3. Monitoring actual performance.
- 4. Comparing actual performance with target planned.
- 5. Taking corrective actions.
