IBS Hyderabad

Academic Year – 2020-22

MBA SEMESTER IV
Management Control Systems
Course Faculty: Anita C. Raman

Group Project: Study of Management Control Systems in Tata Motors

Name of the Members Registration No.

Sannya Aggarwal 20BSPHH01C1101

Saumya Basak 20BSPHH01C1114

Satvika 20BSPHH01C1112

Sai charan Mullapudi 20BSPHH01C1048

Sakshi Saoji 20BSPHH01C1070

Table of Contents Pg.no
1. Introduction 1
2. Various Strategies adopted by Tata Motors 1
3. Organizational Structure as a Sub-System of MCS 4
4. Corporate Culture 6
5. Systems Designed 8
6. Human Resource Deployment Structure 9
7. Performance Measurement System Implemented 10
8. Financials and other specific Management Control Systems 12
9. References 16
Introduction
Mumbai is the company's headquarters. Tata Motors (previously TELCO, which stands for TATA
Engineering and Locomotive Company) is an Indian multinational automobile manufacturer and a
component of the Tata group. The company's products include automobiles, trucks, vans, coaches,
military vehicles, sports cars, buses, and construction equipment.

Various Strategies adopted by TATA MOTORS

Segmentation, targeting, positioning in the Marketing strategy of Tata Motors –

Tata Motors does not adhere to a single marketing strategy or formula, believing that all members of
the community should be served. With options ranging from NANO to Jaguar Land Rover, the brand
caters to a wide range of customers from rural to urban areas.

It is aimed at everyone earning more than Rs. 4 lakh per annum, millennials working as professionals,
managers, and anyone wishing to upgrade from a two-wheeler to a four-wheeler. The age range for the
brand's product is 21-65 years old, and it is aimed at the Middle Class. Its target demographics include
upper middle class, high class, and affluent class.

Tata Motors offers items such as the Tata ACE, a compact truck mostly used for agricultural delivery, the
Tata NANO for the middle class, the Tata Indica and Indigo for commercial use, and the Jaguar in the
high-end market, implying that there is something for everyone in its vast product line.

Tata Motors uses a differentiated targeting strategy to target clients and meet their needs and wants.

Marketing Mix of TATA MOTORS:

The Marketing mix of Tata Motors talks about the 4P of the brand which has helped the brand rise in
the automobile empire.

1. Product in the marketing mix of Tata Motors Tata has a very wide range of products it has
passenger cars, utility vehicles, Trucks, Commercial passenger Carriers and Defense Vehicles

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 Passenger cars Utility Vehicles Trucks Commercial Passenger Carriers

Indica vista Safari Dicor Tata Novas Buses

Indigo XL Sumo Grande TL 4×4 Winger

Nano Sumo Magic

Fiat cars Xenon XT

2. Price in the marketing mix of Tata Motors

Tata motors' costs are generally affordable and widely accepted by the general people. With Nano as their
trump card, Tata always has something for the lower classes. Tata Motors employs a number of effective
strategies, including monthly discounts and special promotions for specific types of vehicles. At a given
range, a discount can be made from the company's profit or from the profit of the dealer.

3. Place in the marketing mix of Tata Motors

Tata Motors has a large dealer network that covers both domestic and international markets. There is a
Tata Motors Sales and Service dealership near you no matter where you are. The distribution route,
physical location, and dealership mode of distribution and sales are all commonly used. Vehicle
distribution must be quite systematic, from the factory through the dealership and finally to the end user.
This applies not only to India, but also to the global dealership.

4. Promotion in the marketing mix of Tata Motors – Tata motors promote their products via
Advertising and after sales services

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5. People in the marketing mix of Tata Motors

The highly motivated and skilled employees of Tata Motors are responsible for our success. Our
recruitment division selects the best candidates from India's top universities, management schools, and
technical schools. They put them through rigorous training programs to help them polish their
entrepreneurial skills and gain a thorough understanding of the products.

6. Processes in the marketing mix of Tata Motors – Tata motors follow Balanced Scorecard
Collaborative, Inc for achieving excellence in overall Company performance.

7. Physical Evidence in the marketing mix of Tata Motors

Even in this recession, the company's management has managed to keep their hopes alive, hoping that
the worst is behind them. Tata Motors recently launched the most awaited car of the year, the Tata Nano,
and the company has already received 203,000 fully paid bookings, with 70% of applicants willing to wait
until the end of 2010 for the car to be manufactured.

BCG Matrix in the Marketing strategy of Tata Motors :

The star segment includes the Indica, Safari Dicor, Manza, Winger, and Magic, which are the most
popular commercial vehicles.

Nano& Zest is still in the question mark area, despite Safari, Sumo, and Indigo CS being their cash cows.

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Distribution strategy in the Marketing strategy of Tata Motors :

TATA Motors has a strong dealer network in India, with 576 locations in 424 cities, selling over 56,000
vehicles in July 2018. Due to its robust dealer network, the brand saw a startling 64 percent increase in
domestic sales during the first quarter of FY19 (April-June 2018) at 164,579 units compared to 100,141
units the previous year.

TATA Motors carries out its promotional strategy in 2 ways:

Above the line (ATL)

• It includes: print ads (newspaper advertisements by local dealers, magazines)

• TV, Radio

Below the line (BTL) Promotions:

• It includes: exchange fair

• Rural fair
• Loan fair,
• Society activities
• Corporate display activities

Organizational Structure as a Sub-System of MCS

Organizational structure refers to the role and responsibility of various employees working for that
organization along with their pre-defined interaction patterns. Organizational structure also gives us the
picture for flow of information both vertically and horizontally in an organization. With the proper design
of the organizational structure there would be many advantages like we can easily communicate with the
entire organization as we have clear hierarchy structure. The harmony between the employees will also
be very strong which gives rise to effective teamwork. As each and every task or activities of an employee
is predefined so that they get motivated to reach their goals so all the employees collectively work to
reach the goals of the company.

In the formation of Organizational structure there are specific metrics or dimensions to look after in order
to from an efficient and effective structure and those metrics which are to be considered in the building
of Organizational structure are

• Degree of Formalization
• Degree of Specialization
• Hierarchy of authority
• Centralization
• Degree of professionalism
• Personnel ratios

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The above dimensions are to be used for building an efficient organization because dimension covers
important aspects for the effective management of the organization like Degree of specialization covers
to what extent the organizational activities to divided into subgroups, Hierarchy of authority refers to how

many subordinates report to a supervisor, Degree of formalization refers to what activities or tasks to be
performed by an individual. So, each and every dimension play a prominent role in designed an efficient
organizational structure.

As we have seen various dimensions we need to look after while designing an organizational structure
based on the above dimensions Organizational structures are divided into various types and they are
classified into:

• Functional Organization
• Matrix Organization
• Horizontal Organization
• Hybrid Organization
• Divisional Organization
In the above Organization structures each one has different characteristics and the way they operate
differ from each other on the different dimension we discussed above. For example, Functional
Organization is formed by grouping people based on their skills and expertise whereas divisional
organization is formed based on the organization’s Products range and various locations where the
organization operates whereas matrix organizations tried to club both functional and Divisional
characteristics.

In the above sections we have seen dimensions of Management Control Systems and types of
Organizational Structures basically organizations adopt management control systems for both financial
and non-financial measures because both of them impact the business. Here we have some internal and
external factors like Decentralization, Perceptions of the employees, Size and spread of an entity etc.
which affect the Management control systems. In order to overcome and create an efficient and effective
framework of Management Control Systems we need few core elements that determine the effectiveness
and success of a management control system framework or simply we can term them as the subsystems
of a successful management control systems framework and those elements are:

• A perfect Organizational Structure.

• Motivating through reward system.
• Aligning with goals and strategies of a company.

Tata motors Limited is an Indian multinational automotive company which have many subsidiaries like
Jaguar, Land Rover, Marco polo etc. need to have an efficient Organizational Structure in order to have
an efficient MCS framework so i.e., why Tata Motors follow a Matrix Organizations Structure. Basically,
Matrix Organizational structure is a combination of two or more types of organizational structures i.e.,
each employee or individual have two or more bosses to report. So, in Tata Motors also the heads of
functions such as Human Resources head, CFO, CMO and heads of vehicle divisions such as passenger
vehicles head, Commercial Vehicles head together form the top management. Each department have
their respective head and they are responsible to their department’s tasks and day to day activities.

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In the above figure we can see the organizational structure of Tata Motors through which we can observe
that even though the top-level management consists of various members like head of commercial
vehicles, Human Resources Head, Chief Information Officer etc. ultimately everyone will report the CEO
of the company but the top-level management is divided into various parts in the matrix organizational
structure. Tata motors choose Matrix type of organizational structure because it covers both the product
of the project and the function of the management producing the product and also the communication is
also open in this type of Organizational structure and it also helps the employees to enhance their skills
by interacting with various departments of the projects.

Finally, to conclude in order to have an effective and efficient Management Control system framework
we need to have a capable organizational structure which in turn states Management control system is
dependent on organizational structure in other words we can term it as Organizational structure is a
subsystem of Management Control System.

CORPORATE CULTURE
The organizational atmosphere in the case of Tata and workers, formally and organizationally is truest to
the values. It also has a somewhat flat structure, which aids in knowledge acquisition. The primary portion
to be addressed at the main Tata group heading towards, taken by the board of directors, is control &
levels in the organizational structure and formulates the environmental uncertainties. One of the
employees' responsibility and authority matrices is in the coverage area, which is measured on a regular
basis based on the information provided by the report to the boards of directors.

Another key function is the development of estimating and coordination abilities. Tata Motors publishes
a monthly newsletter for frequent communications and correspondence. This assists them in progressing
from level to level. The investment in today's environment of organizing data is to be made. Based on this
information, production and purchasing place a premium on being enterprising, which TATA Motors was
not. The simplicity with which all of these actions are carried out at AUTO CADIAL, etc., organizational

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structure and atmosphere, as well as knowledge, have a significant impact on employees' behavior
motors.

They have regular casual encounters, which encourages employees to feel comfortable obtaining and
sharing information. As a result of Tata Motors' assistance, they are able to easily engage with numerous
details and share ideas across the firm. about the personalization and organizing of products Because Tata
Motors operates in various markets, it has a limited range of control over product modification. However,
the forty benefits of product customization are not so evident over Tata Motors' command, but rather all
of Tata Motors' strategic decors.

Formalization is a gracious impact of organizational structure elements, and it defines specialized areas.
They follow Tata motors, which aids them in identifying various roles of individuals, both functionally and
financially. Motors has newsletters for each division, which are distributed throughout correspondence
from the Chairman, MD, and CEO levels of management, who are always available to discuss and promote
expertise. All activities must be carried out with precision in order to effectively manage the activities of
all departments, finance, operations, and so on. Information Technology can be used to link the activities
of all departments, finance, operations, and so on (ERP).

The same concept with their employees are bounded with tata motors is having issues level in structure
also talks about span with less levels of article also relates Tata motors, how. In decentralization, actions
& plans accelerates on knowledge role & duties for decoding of conduct & duties.

THE TATA WAY

Trying to get around or over obstacles consumes a lot of time and productivity, and it severely limits one's
capacity and ability to do tasks. Some tasks that might take one day in a more developed market could
take a week or even a month here. Even then, the process is filled with uncertainties and challenges, and
a leader's productivity suffers significantly as a result.

The vision and the aggressive stance that Tata Motors has taken, most particularly in the last 10 years or
so, to break out of the normal growth pattern and to look at opportunities in the market as they emerge.
We then try to convert those opportunities into real business.

Tata Motors has a very strong, outstanding, and broad base of Indian loyalty, which is assisting us
significantly in product development. We construct trucks ranging in size from little to very huge. Buses,
both little and huge, are bulk passenger transporters that we manufacture. We manufacture passenger
and multi-utility cars. Because the range is so broad, maintaining a strong position necessitates a
significant investment of time, effort, and money.

There is strong concept of trusteeship, not ownership, throughout all the companies. Mr. Tata heads the
Tata Group by virtue of being trustee of those trusts and not as the owner – and that perspective
permeates throughout the management levels within the company.

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This is one aspect of our management style. The second is that the founder had the extremely
devolutionary attitude that everything came from society should contribute back to society in some shape
or another when he first started building up firms. That is to say, you hold what you receive from society
in confidence and then return it to it.

As a result, Tata has a distinct culture or ethos, if I may call it that, which pervades the entire Tata Group
and contributes to improved corporate governance. There are greater ethical principles, alternative ways
of doing things, and better records of expressing concern for society under this approach.

There is a greater caring for people and caring for things around our businesses. Tata’s values and group
culture are unique, compared to other businesses, which also means that many times there are much
greater problems and difficulties in getting things done.

SYSTEMS DESIGNED – TATA MOTORS

The Harrier, Tiago, Hexa, Tigor, Nexon, and Altroz are examples of TATA’s innovative vehicles, which range
from India's first entirely indigenous passenger car, the Indica, to the current generation cars - Harrier,
Tiago, Hexa, Tigor, Nexon, and Altroz.

On the cargo transportation front, the Tata Intra, is India's first compact truck in the SCV segment, the
globally benchmarked Prima, Signa, and Ultra trucks in the Medium & Heavy Commercial Vehicle
(M&HCV) segment, the Xenon Yodha in the pickup category, and the segment-defining Tata Ace.

Tata Motors has unveiled the future of mass public transportation with the launch of the Starbus Electric
(9m and 12m) and Starbus Hybrid (12m) buses in passenger transit. By launching a line of smart buses
that are designed, produced, and powered by alternative fuels to fulfil the current and future passenger
transportation needs of smart cities. These buses were developed in India and are safe and pleasant, as
well as economically viable 'Made in India' solutions. TML is also working on developing the country's first
"Fuel Cell Bus."

To improve the look and feel of our vehicles and to improve the overall driving experience for our
customers, the focus is on present and future auto technology. Tata’s award-winning engines and new-
age concept automobiles are evidence of how far their inventive skills have taken them.

From frugal engineering to the work on vehicles, powered by alternative fuels, the innovation thrust forms
one of the pillars of a business built on sustainability.
Tata’s cutting-edge R&D centers and design studios are located in India's Pune, Jamshedpur, and Lucknow,
as well as Italy and the United Kingdom, and have a long list of firsts to their credit. Tata motors is proud
to have the country's first multi-story soak room for BS6 development, Asia's first anechoic chamber,
India's first full vehicle crash test facility, and India's only full climatic test facility, all of which were recently
improved.

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In the latest, Tata motors is producing ground-breaking technologies that are influencing the form and
performance of future automobiles with nearly 5000 engineers, designers, scientists, and technicians.

HUMAN RESOURCE DEPLOYMENT STRUCTURE

Human resource (or personnel) management in the sense that "people get things done" is an important
part of the responsibility of all managers, but many organizations are departments that provide
competent services to ensure personnel. I think it is advantageous to install the function efficiently.
"People are our most valuable asset" is a consistent phrase for management members. However, the
reality of many companies is that their employees are still undervalued, unqualified, and underutilized.
The market for talented and skilled employees is highly competitive and expensive. Hiring new employees
can confuse existing employees.

`The company considers human capital to be an important success factor. With the support of Tata Sons
and a unit sponsored by Tata Sons, the company has developed a comprehensive HR strategy that
addresses key aspects of HR development, including:

● A fair and objective performance management system related to the company's performance.
● Identify and differentiate employees according to performance level.
● Create a common pool of competent managers for all Tata Sons and Tata Sons-sponsored enterprises
with the goal of improving mobility through job rotation between enterprises.
● Provide comprehensive training programs to improve and improve industry and / or feature-specific
skills and management capabilities.
● In line with the company's talent strategy, Tata Motors has taken various initiatives to build better
organizational skills that the company believes can remain competitive in the global market. The focus
of the company is to attract talent, retain better talent and develop the best talent. Initiatives to
achieve this goal include: Developing an agile organization with process changes, delays, structural
adjustments, and an increasing customer-oriented role.
● The organizational structure changes allow teams on all product lines to manage the product lifecycle
and take responsibility for profit and loss.
● Extensive process mapping exercises to compare and coordinate HR processes with global best
practices. Outsource transaction activity to the internal back office (Global Delivery Center) to reduce
transaction costs and time.
● The talent management process is designed with an emphasis on recognizing future leaders.
● Build strategic partnerships with leading educational institutions to promote academically sound
research and create opportunities for employees to continue their education and research.
● Develop the company's image and appeal among the top engineering and management schools to
attract the best.
● Capacity development centers at all factories are training young people as part of the Government of
India's national employment enhancement mission. These trainees are recognized by the Automotive
Skills Development Council and support employment in the industry. The company benefits from
hiring trainees to meet the cyclical nature of demand.

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PERFORMANCE MEASUREMENT SYSTEM IMPLEMENTED
Performance assessment is defined as the process of evaluating the performance and progress of an
employee or group of employees in a particular position and their potential for future growth. This
includes all formal procedures and employee potential used in the work organization.

To understand Tata Motors' performance management system, we need to explain some concepts that
play a vital role in the successful use of PMS. These are:

● KRA (Key Results Area): Employee performance is highly dependent on the KRA points that
employee have achieved each year. Therefore, one needs to answer some basic questions such as: B.
What are the guidelines for establishing KRA for employees? How do employees amortize KRA for a
particular fiscal year? twenty-one. How is an employee's KRA score calculated based on the goals set
and the achievement of those goals?
● Behavioral Characteristics: Some of the qualitative aspects of an employee's performance,
combined with the general behavioral characteristics that the employee has shown during the year,
form his behavioral characteristics. Employees are evaluated based on the intensity of the behavior
they display. They can even move the rating up and down one notch, so they play a very important
role in determining the final performance rating of an employee.
● BHARTI 2010 Leadership Competency Framework: This skill framework is a simple and organized
way to explain the behavioral elements needed to effectively exercise a role. The framework also aims
to objectively assess employee performance.
● Performance Evaluation Process: The evaluation process aims to explain four different types of
evaluation that employees can achieve. H. EC, SC, C and PC. It also describes the criteria considered
to give an employee one of these ratings.
● Promotion and Evaluation Distribution Guidelines: Promotion and regular distribution guidelines
form the framework in which the performance evaluation process needs to be carried out. It is very
important that HR follow these guidelines correctly when creating bell curves for different functions
and integrated bell curves for all functions. These guidelines will also help you decide which
promotions will occur during the year.

The HR Vision of Tata Motors in a nutshell is the guide to drive continuous change towards
organizational excellence. Creating a learning and vibrant organization with great pride among members

Appraisal and Rewards System:

● New evaluation system based on KRA and goals

● Regular review of goals
● Granting important KRA rewards based on human resource development
● Productivity and profit-oriented incentive programs
● Training including long-term career design

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● Performance and potential base assessment
● Fast track options for high performers

HR Initiatives:

• Rebuilding an organizational culture based on new visions and values

• Objective performance management and evolution systems.

• Performance-related compensation and awareness systems

• Career planning and funding policies

• Revised recruitment policies

• Capability mapping

• Training and a strong focus on training initiatives to develop training organizations

The evaluation model, which runs from April to March each year, has proven to be very effective for Tata
Motors employees. The twice-yearly evaluation system was started a year ago. This activity was started
with the dynamic behavior of the industry in mind. The six-month evaluation system gives employees the
opportunity to receive feedback twice a year and rethink their way of working. We also take necessary
measures for employees who do not meet their goals. They have introduced a comprehensive system of
quarterly assessments, where employees select their goals or key outcome areas (KRA) quarterly and use
these parameters to assess their performance. Tata Motors conducts mid-term evaluations for all top
performers and expects to raise their salary twice a year if they perform well. They used to do annual
assessments, but then felt that there wasn't enough incentive to motivate sales departments and
companies to generate revenue. They provide financial benefits and allocations depending on
performance. If the employee deserves both, he / she gives him / her the benefits of both, otherwise at
least one of them. Award increments are held annually. These are proportional to the efforts of
individuals, teams, and departments. Renaming is done against the background of the great responsibility
of having to take high responsibility. Cash profits are primarily incentives given in cash or in kind. For
example, they offer travel packages both inside and outside India. It also has a cumulative incentive
system that allows employees to accumulate incentives and receive them with interest each year. To meet
the company's new requirements and help improve employee performance, they are beginning to
associate some of our salary increases as variable compensation with individual performance basis.
Currently, 6-8% of rewards fluctuate, but we would like to increase them over a period of time. Executives
are rated based on their performance in relative rankings, and performance-related payments are made
based on the results.

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 Financials and other specific Management Control Systems

Balance sheet of tata motors

PARTICULARS Standalone Consolidated

FY 2021 FY 2020 FY 2021 FY 2020

REVENUE FROM OPERATIONS 47031.47 43928.17 249794.75 261067.97

TOTAL EXPENDITURE 44629.62 43510.11 214012.84 237153.67

OPERATING PROFIT 2401.85 418.06 35781.91 23914.30

OTHER INCOME 842.96 1383.05 2643.19 2973.15

PROFIT BEFORE INTEREST FOREIGN EXCHANGE

DEPRECIATION AMORTIZATION EXCEPTIONAL ITEM AND 3244.81 1801.11 38425.10 26887.45
TAX

FINANCE COST 2358.54 1973.00 8097.17 7243.33

PROFIT BEFORE DEPRECIATION AMORTIZATION

886.27 (171.89) 30327.93 19644.12
EXCEPTIONAL ITEM FOREIGN EXCHANGE AND TAX

DEPRECIATION AMORTIZATION AND PRODUCT

4589.25 4205.53 28773.34 25613.92
DEVELOPMENT/ ENGINEERING EXPENSES

FOREIGN EXCHANGE (GAIN)/LOSS (NET) 1.67 239.00 (1732.15) 1738.74

PROFIT/(LOSS) BEFORE EXCEPTIONAL ITEMS AND TAX (3704.65) (4616.42) 3286.74 (7708.54)

EXCEPTIONAL ITEMS - (GAIN) / LOSS (NET) (1392.08) 2510.92 13761.02 2871.44

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PROFIT/(LOSS) BEFORE TAX (2312.57) (7127.34) (10474.28) (10579.98)

TAX EXPENSES/ (CREDIT) (NET) 82.87 162.29 2541.86 395.25

PROFIT/(LOSS) AFTER TAX (2395.44) (7289.63) (13016.14) (10975.23)

SHARE OF PROFIT OF JOINT VENTURE AND ASSOCIATES

- - (378.96) (1000.00)
(NET)

PROFIT/(LOSS) FOR THE YEAR (2395.44) (7289.63) (13395.10) (11975.23)

OTHER COMPREHENSIVE INCOME/(LOSS) 442.99 (378.72) 2919.34 11504.47

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS) FOR

(1952.45) (7668.35) (10475.76) (470.76)
THE YEAR

ATTRIBUTABLE TO:

SHAREHOLDERS OF THE COMPANY - - (10551.20) (578.88)

NON-CONTROLLING INTEREST - - 75.44 108.12

DIVIDEND

In view of losses for FY 2020-21, we regret that no dividend can be paid to the Members as per the
provisions of the Companies Act, 2013 (‘the Act’) and the Rules framed thereunder.

TRANSFER TO RESERVES

Due to losses in FY 2020-21, no amount has been transferred to Reserves. An amount of 134 crores was
transferred from Debenture Redemption Reserve to Retained earnings.

VEHICLE SALES AND MARKET SHARES

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The Tata Motors Group sales for the year stood at 8,37,783 vehicles, down by 12.9% as compared to FY
2019-20. Global sales of all Commercial Vehicles were 2,67,513 vehicles, while sales of Passenger Vehicles
were at 5,70,270 vehicles.

Tata Motors recorded sales of 4,63,742 vehicles, a growth of 4.4% over FY 2019-20, whereas the Indian
Auto Industry volumes declined by 6.1%. The Company’s market share (calculated on wholesales)
increased to 14.1% in FY 2020-21 from 12.7% in FY 2019-20.

FUTURE FINANCIAL TARGETS

We have activated the Business Agility Plan to navigate the challenges of recent COVID-19 pandemic wave
in India. We remain committed and focused to Win Decisively with our extensive product range and
continue to lead the market developments.

Profit & Loss - Tata Motors Ltd.

Mar'21 Rs (in Crores) Mar'20 Rs (in Crores)

Sales Turnover 47031.47 43928.17

NET SALES 47031.47 43928.17

Other Income 842.9600 1383.0500

TOTAL INCOME 47874.43 45311.22

Manufacturing Expenses 1279.42 1259.09

Material Consumed 35849.83 33035.88

Personal Expenses 4212.99 4384.31

Selling Expenses 444.37 846.60

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Administrative Expenses 3752.32 5053.47

Expenses Capitalized .00 .00

Provisions Made .00 .00

TOTAL EXPENDITURE 45538.93 44579.35

Operating Profit 1492.54 -651.18

Other specific management control systems implemented in the company.

Types of MCS: -
1)Input control
2) process control
3) output control

Informal Control System: -

1.Self Control
2. Social Control
3.Cultural Control

Management Control System: -

The Company’s internal control systems are commensurate with the nature of its business, the
size and complexity of its operations and such internal financial controls with reference to the
Financial Statements are adequate.

It majorly deals with effective utilization of resources made available by top level management, it
is exercised by the middle management through interaction with Top and Lower-level
management
It is medium term in nature.

Traditional Techniques:

1.Personal Observation
2.Budgeting
3.Breakeven Analysis
4.Financial Statement
5.Statistical Data and Report

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 References:

• https://www.marketing91.com/management-control-system/
• https://www.cram.com/essay/Tata-Motors-Organizational-Structure-Analysis
• https://www.icmrindia.org/courseware/management%20control%20systems/MCS02.ht
m

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