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MANAGEMENT CONTROLJE
SSSICA
P.
GUT
IERREZ
Preparedby:
Control Manageent ControlSy!te
Manager"al#$n%t"on
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CONTROL&"! t'e pro%e!! o( g$"d"ng a !et o(
)ar"able! to atta"n a pre%on%e")ed
goal or ob*e%t")e!. It "! a broad%on%ept appl"%able to people+t'"ng!+ !"t$at"on!+ and
organ",at"on!.&-to deter"ne t'e be'a)"o$r or
!$per)"!e t'e r$nn"ng o(+ toa"nta"n+ "n$en%e or a$t'or"tyo)er...to re $late.../
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MANAGEMENT
CONTROL
&t'e a%t"on! $!ed by t'e
anageent to g$"de people+a%'"ne!+ and ($n%t"on! to atta"norgan",at"onal goal! andob*e%t")e!.
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MANAGEMENTCONTROL S0STEM&an organ",ed !y!teat"% pro%e!!
and !tr$%t$re t'at anageent$!e! "n anageent %ontrol.
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T'e Nat$re o( Control
An organ",at"on o( anager! and1or2er! $!t be ot")ated andg$"ded to do t'"ng! "t! leader!
1ant "t to do and $!t be%orre%ted 1'en "t depart! (rot'e p$r!$"t o( anageent goal!.
I( anageent lo!e! %ontrol andt'e organ",at"on goe! o$t o(%ontrol+ $nde!"rable t'"ng!'appen to any people.
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3E#INITIONS O# MANAGEMENTCONTROL
&is one of the managerial functionslike planning, organizing, stang
and directing. It is an importantfunction because it helps tocheck the errors and to take thecorrective action so that
deviation from standards areminimized and stated goals oforganization are achieved in
desired manner.45"2"ped"a6
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&Control of an undertaking consistsof seeing that everything is beingcarried out in accordance withthe plan which has been adopted,
the orders which have beengiven, and the principles whichhave been laid down. Its object is
to point out mistakes in orderthat they may be rectied and
prevented from recurring
47enry #ayol+8986
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Control is checking currentperformance against pre
determined standards containedin the plans, with a view toensure ade!uate progress andsatisfactory performance.
4Ed1ard #ran%"! Leopold ;re%'6
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& "anagement Control is theprocess by which managersin#uence other members of theorganization to implement theorganization$s strategies.
4Robert N. Ant'ony+6
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"anagement control is concerned with coordination,resource allocation, motivation, and performance
measurement. %he practice of management controland the design of management control systemsdraws upon a number of academic disciplines.
&. "anagement control involves e'tensivemeasurement and it is therefore related to and
re!uires contributions from accounting especiallymanagement accounting.
(. It involves resource allocation decisions and istherefore related to and re!uires contribution fromeconomics especially managerial economics.
). It involves communication, and motivation whichmeans it is related to and must draw contributionsfrom social psychology especially organizationalbehavior.
A%%ord"ng to Ma%"ar"ello et al. 4899?6+
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Manageent Control Pr"n%"ple!
8. Pr"n%"ple o( A!!$ran%e o( Ob*e%t")e& T'eba!"% p$rpo!e o( anageent %ontrol "! t'eatta"nent o( ob*e%t")e! doe! t'"! bydete%t"ng (a"l$re!+ "n plan!
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?. Pr"n%"ple o( #or1ard Loo2"ng. Control+ l"2e plann"ng!'o$ld be (or1ard loo2"ng. T'e pr"n%"ple "! o(tend"!regarded largely be%a$!e %ontrol 'a! been depend$p a%%o$nt"ng and !tat"!t"%al data "n!tead o( $pon(ore%a!t! and pro*e%t"on!.
. Pr"n%"ple o( 3"re%t Control. Mo!t+ %ontrol! $!ed todayare ba!ed on t'e (a%t t'at '$an be"ng a2e"!ta2e!. T'ey are o(ten $!ed a! "nd"re%t %ontrol!a"ed at %at%'"ng error!+ o(ten a(ter t'e (a%t. 5'eree)er "! po!!"ble+ d"re%t %ontrol! a"ed at pre)ent"ngerror! !'o$ld be $!ed.
. Pr"n%"ple o( Ree%t"on o( Plan!. Controll"ng "! t'e ta!2o( a2"ng !$re t'at plan! are %arr"ed o$t eFe%t")ely.T'ere(ore+ %ontrol te%'n"B$e! $!t ree%t t'e !pe%"%
nat$re and !tr$%t$re o( plan!.
>. Pr"n%"ple o( Organ",at"onal S$"tab"l"ty. A anageent%ontrol !y!te t t'e anage a$t'or"ty area and "t!'o$ld ree%t t'e organ",at"on !tr$%t$re.
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H. Pr"n%"pe o( Ind")"d$al"ty o( Control!.Control!be%oe eFe%t")e 1'en t'ey are %on!"!tent
1"t' t'e po!"t"on+ operat"onal re!pon!"b"l"ty+%opeten%e+ and need! o( t'e "nd")"d$al%on%erned.
9. Pr"n%"ple o( Cr"t"%al Po"nt Control!. 5'"le
eDer%"!"ng %ontrol+ a anager !'o$ld (o%$!attent"on on t'e (a%tor!+ 1'"%' are %r"t"%al toappra"!"ng per(oran%e.
8=. Pr"n%"ple o( A%t"on. Control "! a 1a!te o(t"e $nle!! t'e %orre%t")e a%t"on "! ta2en.Corre%t")e a%t"on ay "n)ol)e redra1"ngplan!+ reorgan",at"on+ repla%eent or tra"n"ngo( a !$bord"nate+ ot")at"on o( !taF+ et%.
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