MCIS ASSIGNMENT
DESIGNING OF MANAGEMENTCONTROL SYSTEMS
Submitted By:Hardik VariaSaumyendra Pratap SinghShubham AgarwalSupriti MukherjeeVikash BhanthiaVivek Vatsalya AyyagariWaseem Mansuri
Introduction to management control systems
To begin with management control Information system introduction some e.gscan be studied1)
Controlling a car with brakes and accelerator2)
Controlling temperature of human body or driving carManagement control system can be defined as a set of interrelatedcommunication structures that facilitates the processing of information to assistthe managers in coordinating the parts to achieve goals on continuous basisbringing out the unity/harmony out of diverse activities.Management control is not a preset standard. It is an adaptive technique whichneeds planning and control together. It cannot be compared to automatic carbecause it involves human beings. It requires coordination among individuals. Inmanagement controls actions are not specified. It depends on the situation.Management control systems are of two types:
y
Systematic control
y
U
nsystematic control
Purpose
Of management control Information systems1)
P
lanning activities- It requires control of actual accomplishments with setplans2)
Coordinating activities-It means harmony among functional units3)
Communicating-It promotes communication of information to various levelof hierarchy4)
Evaluating- It suggests evaluation of information and decide actionsaccordingly5)
Influencing- MCS helps to influence human behavior
Organization context of Management Control Systems
y
Organization is divided into subunits having independent autonomy andobjectives
y
MCS lowers cost to coordinate them
y
MCS brings out efficiency and effectiveness
y
It facilitates adaptation and innovation
y
It helps to maintain inducement-contribution balance among stakeholders
y
To maintain MCS there is need to understand human behavior becausehuman beings are rational, creative, they have strong/weak morals, theyhave desire to be associated or to be in community.
Steps in designing Management Control Systems
A well designed management control supports and coordinates the decision-making process and motivates individuals throughout the organization to act inconcert. The first and most basic component in a management control system isthe organizations' goals. Because the focus of the management control system ison motivating decisions that help achieve the organizations goals. A basic adageof management control system is that "you get what you measure". It means themeasures of performance will influence managers' decisions; therefore measureof performance should be consistent with the organizations goals. To design themanagement control system that meets the organizations' goals or organizationsneeds, the designing has to be done according to the following stages.Stage 1: Identifying Responsibility Centers
U
nder this stage the whole organization is divided into responsibility centers andfor every responsibility center their goals are decided and responsibilities are alsofixed.Stage 2: Developing
P
erformance MeasuresFor every responsibility center the performance measures are fixed. Means if some responsibility has been assigned then the method of their measurementsare developed at this stage.
U
nless we measure the performance, no objectivitycould be introduced in the system. To practically implement this performance
Search History:
Result 00 of 00
00 results for result for
p.
More From This User
Notes
Load more
