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Ideal Management Control System]

Ideal Management Control System]

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Published by Bharat Patil

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Published by: Bharat Patil on Mar 27, 2012
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05/19/2013

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Ideal Management Control System

Subject : Management Control System
Guided By – Lata Murthy madam Prepared By – Snehal Ramdin

4. 5.Index • • • • 1. 2. 3. Defination of management control Relationship between planning and control functions Implementation mechanism Features of ideal MCS – Total system Monetary standards Definite pattern Coordinated system Line managers .

Management Control Defination • Management control is the process by which managers at all levels ensure their team align themselves to the goal of the BU. division or organization referred as “Goal congruence or Goal alignment” ( or ) • Management control is the process by which managers influence other members of the organization to implement organization strategies. .

Relationship between planning and control functions .

strategies and policies Planning and control equally important Management control Implementation of strategies Lower level • most systematic • focus – short run operational activities • uses accurate current data • control more important Task / operational control Effiecient and effective implementation of individual tasks .Functions Top level • least systematic • long run focus • uses rough approximation for future • process of planning more important Activity Nature of end results Strategy formulation Goals.

Implementation mechanism Management controls Strategy Organization structure HR management Performance Culture .

[Features] Monetary Standards Total System Definite Pattern Coordinated System Line manager .

It is an overall process of the enterprise which aims to fit together the separate plans for various segments so as to assure that each harmonizes with each others. and that the aggregate effect of all of them on the whole enterprise is satisfactory. .Total system • A MCS is a total system as it covers all aspects of the companies operations.

.Monetary standards • MCS is built around a financial structure and all resources and outputs are expressed in terms of money. The results of each responsibility centre in respect to production and resources are expressed in terms of the common denominator of money.

The whole operational activity is regular and rhythmic.Definite pattern • The MCS follows a definite pattern and time table. It is a continuous process even if the plans are changed in the light of experience or change in technology. .

therefore.Coordinated system • A MCS is fully coordinated and integrated system. It is. Even if the information for one purpose varied from that collected for another purpose. more plausible to consider the interlocking subprocesses as a single set for achieving the objectives of the enterprise. . the data reconciles with one another.

Business budgets are prepared based on their advice and suggestions. Line managers motivate the employees to improve their performance and thereby achieve the organizational goal. .Line manager • Information collected from various sources is organized by the line managers. The line managers are the focal points in the MCS.

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