Professional Documents
Culture Documents
Behaviour in Organisation
Behaviour in Organisation
Objectives
To understand Goal Congruence and impact of GOOD
Management Control Systems on it.
To analyze the formal and informal control system and its
influence on the organization.
Type of Organization : Fit and effective MCS
Role of Controller : the person who is responsible for the
design and operation of MCS
Goal Congruence
1.
2.
-
Rules
Other information
Yes
Strategic
Planning
Budgeting
Responsibility
Center
Performance
Report
Actual Vs.
Plan
Was
Performance
Satisfactory?
Communication
No
Types of organizations
A firms strategy has a major influence on its structure. And in turn the type
of structure influences the organizations control system. The
structures can be divided into three major categories:
1.
Functional organizations:
-
Contd.
2. Business Units:
- The business unit form of organization is designed to solve the problems
inherent in the functional structure.
- In which business unit managers are responsible for most of he activities of
their particular unit, and the business unit functions as a semi-independent
part of the company.
- They are responsible for planning and coordinating the work of the separate
functions and for resolving the disputes between functions.
- The business unit manager is responsible for all the activities but the
important decisions like funds allocation, approving of budgets, judging of
performance will be done by top management only.
- An advantage of the structure is it provides a training ground in general
management.
- Another advantage of this type of structure is that because the business unit
is closer to the market for its products than headquarters is.
- But, with this advantages certain disadvantages or problems are also there
like, there may be a duplication of work because the functional work is done
at unit level will be done at top level also. Which will increase the staff cost.