PAPER _ 6 ELECTIVE PAPER _ 19

MANAGEMENT CONTROL SYSTEMS

(Pl6MBAEO3)

Important Questions

UNIT: I

1) Control function

The control function in management control system refers to the activities and processes involved in ensuring that
organizational objectives are being achieved efficiently and effectively.

The control function involves the monitoring of actual performance against planned performance, identifying deviations,
and taking corrective actions when necessary to ensure that the organization is on track to achieve its goals.

There are several types of control that fall under the control function in management control systems, including:

1. Feed-forward control: this involves anticipating potential problems and taking preventive actions to avoid them.

2. Concurrent control: this involves monitoring activities as they are being executed to ensure that they are being performed
according to the plan.

3. Feedback control: this involves monitoring the actual results of activities and comparing them to the planned results to
identify deviations and take corrective actions.

4. Financial control: this involves monitoring financial performance metrics, such as revenue, expenses, and profitability, to
ensure that financial objectives are being met.

The control function is critical to the success of any management control system because it helps to ensure that
organizational objectives are being achieved effectively and efficiently.

Without effective control, the organization runs the risk of not achieving its goals, wasting resources, and incurring
unnecessary costs.

2) Significance of control

Control is a critical component of a management control system for achieving organizational objectives.

It ensures that resources are managed efficiently and that plans are executed effectively.

The following are some of the significances of control in a management control system:

1. Providing feedback: Control provides feedback that allows managers to monitor the performance of organizational units
against established standards and make necessary adjustments to achieve desired results.

2. Enhancing decision-making: Control provides managers with accurate and relevant information about the organization,
enabling them to make better-informed decisions.

3. Improving efficiency: Control helps managers ensure that resources are used efficiently and effectively, thereby
increasing productivity and reducing waste.

4. Achieving goals: Control helps organizations achieve their objectives by ensuring that plans are executed correctly and
that corrective action is taken when necessary.

5. Evaluating performance: Control helps managers evaluate the performance of individuals, teams, and organizational units
against established standards, thereby identifying areas for improvement.

6. Maintaining accountability: Control ensures that individuals and teams are held accountable for their actions and that
performance standards are maintained throughout the organization.

In summary, control is essential for ensuring that a management control system operates effectively and achieves its goals.

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 It provides feedback, enhances decision-making, improves efficiency, achieves organizational objectives, evaluates
performance, and maintains accountability.

3) Scope of control

Management control system refers to the tools, techniques, and processes used by an organization to ensure that the
management's goals are achieved.

It involves the systematic measurement, monitoring, and reporting of organizational performance against set objectives and
targets. The scope of control in management control systems includes:

1. Financial control: This involves monitoring the financial performance of the organization, including budgeting, cost
control, financial reporting, and financial analysis.

2. Operational control: This involves monitoring the day-to-day operations of the organization, including production, sales,
marketing, and customer service.

3. Strategic control: This involves monitoring the organization's long-term strategic direction, including the development of
new products, expansion into new markets, and diversification.

4. Behavioral control: This involves monitoring the behavior of employees and ensuring that they are aligned with the
organization's values and objectives.

Overall, the scope of control in management control system is broad, covering all aspects of an organization's activities and
operations.

The goal is to ensure that the organization is meeting its objectives and targets, and that all stakeholders are satisfied with
the organization's performance.

4) Nature of management control system

The nature of a management control system (MCS) comprises the tools, processes, procedures, and policies used by
managers to monitor, evaluate, and control the operations and performance of individuals and teams within an organization.

The main aim of an MCS is to attain organizational objectives by aligning the actions of employees with the overall
strategies and goals of the company.

The MCS captures and reports data that is used to make informed decisions and adjustments in order to achieve better
results.

The nature of an MCS involves the following:

1. Planning: MCS involves the setting of targets, plans, and budgets to guide the operations of an organization.

2. Controlling: MCS is used to monitor and ensure that employees and teams operate within the set guidelines, rules, and
regulations.

3. Feedback: The MCS provides feedback to managers regarding the performance of individuals and teams, as a basis for
making improvements.

4. Communication: MCS facilitates the flow of information across the different levels of an organization to enable informed
decision-making.

5. Evaluation: MCS provides a basis for evaluating the effectiveness and efficiency of an organization's activities.

Overall, the nature of an MCS supports the process of achieving organizational goals through accountability, transparency,
and evidence-based decision-making.

5) Important features of management control system

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1. Goal setting and planning: A management control system should be designed to help identify and set specific goals for
the organization, and develop a strategic plan for achieving those goals.

2. Performance measurement and evaluation: The system should have processes in place to measure, analyze, and evaluate
the actual performance of the organization against the set goals.

3. Feedback mechanisms: The system should have feedback mechanisms that enable decision-makers to use the information
collected from the performance measurement and evaluation process to make informed decisions and continuously improve
the organization's performance.

4. Cost management: The system should have controls in place to manage and monitor costs and ensure that the
organization's resources are used efficiently.

5. Risk management: The system should address the potential risks related to the organization's operations and implement
controls to mitigate those risks.

6. Communication and reporting: The system should have mechanisms in place to facilitate open communication and
reporting between different levels of management, departments, and teams within the organization.

7. Employee empowerment: The system should empower employees to contribute to the achievement of organizational
goals through their roles, responsibilities, and decision-making abilities.

8. Compliance: The system should ensure that the organization operates in compliance with legal and regulatory
requirements, industry standards, and ethical policies and practices.

9. Flexibility and adaptability: The system should be flexible and adaptable to changing market conditions, business
environments, and organizational needs.

10. Continuous improvement: The system should promote a culture of continuous improvement through ongoing evaluation,
feedback, and learning.

6) Management control and planning

Management control and planning are two important functions of business management.

Management control refers to the process of monitoring and evaluating the performance of a company or organization to
ensure that it is performing according to the desired objectives and goals.

It involves setting performance standards, measuring actual performance, comparing the two, identifying deviations, and
taking corrective action when necessary.

Planning, on the other hand, involves setting goals and objectives for the organization and developing strategies to achieve
them.

It involves analyzing the environment, identifying opportunities and threats, identifying and allocating resources, and
developing action plans to achieve the desired outcomes.

Both management control and planning are important for the success of a business.

Management control ensures that the organization is performing effectively and efficiently, while planning ensures that the
organization is moving in the right direction.

By combining both functions, organizations can achieve their goals and objectives efficiently and effectively.

7) Characteristics of a good management control system

1. Goal-Oriented: The management control system should be focused on achieving the company's strategic goals and
objectives.

2. Integrated: The system should have a comprehensive and integrated approach that covers all areas of the organization.

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3. Measurable: The system should have quantifiable parameters to assess and measure performance.

4. Timely: The system should report performance data in a timely manner, allowing managers to make informed decisions.

5. Flexible: The system should be adaptable to changes in the organization, such as new products, services, or business
processes.

6. Clear: The system should be easy to understand, communicate, and implement throughout the organization.

7. Reliable: The system should be dependable and accurate, providing consistent results over time.

8. Cost-Effective: The system should be cost-effective and offer a good return on investment.

9. Empowering: The system should empower managers with the information they need to make informed decisions and take
appropriate actions.

11. Encourages Improvement: The system should encourage continuous improvement through identifying opportunities for
improvement, providing feedback, and rewarding success.

8) Steps in the control process

1. Setting goals and objectives:

This is the first step in the control process. The goals and objectives must be clearly defined and communicated to all
stakeholders.

2. Measuring performance:
This involves collecting relevant data and information to measure actual performance against the set goals and objectives.

3. Comparing performance to set standards:

The data collected in the previous step is then compared to predetermined standards.

4. Analyzing and interpreting results:

After comparing the performance to the set standard, the results are analyzed and interpreted. This helps to identify the
areas where deviations have occurred.

5. Taking corrective action:

Based on the results of the analysis, corrective measures are taken to correct deviations and improve performance.

6. Monitoring progress:
After taking corrective action, progress is monitored to ensure that the performance is on track towards achieving the set
goals and objectives.

7. Communicating results:
The results of the control process are communicated to relevant stakeholders to inform them of progress and any corrective
measures taken.

8. Reviewing and adjusting standards:

Periodically, the standards used in the control process are reviewed and adjusted to ensure they remain relevant and
effective.

UNIT - II

1) Control and organization behaviour

Control and organizational behavior refer to the methods and approaches used by a business or organization to regulate and
manage the behavior of its employees in order to achieve its goals and objectives.

Organizational behavior refers to the study of human behavior and its impact on the organization, while control refers to the
procedures and systems that are put in place to manage organizational behavior.

Effective control and organization behavior are essential for the success of any business or organization.

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By regulating employee behavior, organizations can ensure that everyone is working towards the same goals and objectives,
and that all employees are working efficiently and effectively.

Control and organizational behavior can also help to create a positive work environment, improve employee satisfaction,
and reduce turnover rates.

Some of the key components of control and organizational behavior include:

-Leadership: Effective leadership is critical for the success of any organization.

Leaders set the tone for the organization, establish its values and culture, and provide direction and support to employees.

- Communication: Clear and effective communication is essential for managing behavior and ensuring that everyone is
working towards the same goals.

- Rewards and incentives: Offering rewards and incentives can motivate employees to work harder and contribute more to
the organization.

- Performance evaluation: Regular performance evaluations can help to identify areas where employees are excelling and
areas where improvement is needed.

- Training and development: Providing training and development opportunities can help employees to improve their skills
and abilities, and can also help to foster a positive work environment.

2) Types of control

There are several types of control in a management control system, including:

1. Feed forward control:

This type of control focuses on preventing problems before they occur by identifying potential issues and planning
accordingly.

2. Concurrent control:
This control involves monitoring ongoing activities and interventions to detect problems as they occur.

3. Feedback control:
This control refers to the process of learning from past experiences and using that knowledge to improve future performance.

4. Direct control:
This control involves active intervention by management to ensure that tasks are being carried out as planned.

5. Indirect control:
This control involves setting guidelines and creating incentives that encourage employees to act in ways that are in line with
the organization's goals.

6. Preventive control:
This control involves implementing measures that prevent potential problems from occurring.

7. Corrective control:
This control involves taking corrective action to address problems that have already occurred.

8. Strategic control:
This control involves aligning organizational strategies with performance metrics to ensure strategic goals are met.

UNIT - III

1) Strategy formulation

Strategy formulation in management control system refers to the process of developing a clear and comprehensive plan for
the organization to achieve its objectives and goals.

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It involves analyzing the internal and external environment of the organization, identifying opportunities and threats, and
developing specific actions to address them.

The following are some of the key steps involved in strategy formulation in management control system:

1. Setting goals:
The first step in strategy formulation is defining the organization's goals, objectives, and mission.
The goals should provide a clear direction for the organization and be aligned with the overall strategy.

2. Environmental scanning:
Understanding the internal and external environment is important to identify opportunities and threats.
Internal analysis involves assessing the strengths and weaknesses of the organization, such as its resources, capabilities, and
culture. External analysis includes factors such as competitors, customers, suppliers, regulatory factors, and market trends.

3. Strategy development:
Based on the goals, environmental analysis, and resource evaluation, the organization can develop a strategy that outlines
how it will achieve its goals.
This strategy may involve identifying new markets, expanding product lines, and improving operational efficiencies.

4. Implementation planning:
Once the strategy is developed, the organization must develop a comprehensive plan to implement it.
The plan should include specific actions, timelines, resource allocation, and performance metrics.

5. Monitoring and control:

Regular monitoring and control of the implementation plan are essential to ensure that the organization is on track to
achieve its goals.
Key performance indicators (KPIs) can be used to track progress and identify areas that require corrective action.

In summary, strategy formulation in management control system is a crucial element in the success of an organization.
It involves developing a clear and comprehensive plan that aligns the goals, resources, and environmental factors to achieve
optimal results.

2) Steps in designing management control system

1. Define the objectives:

The first step in developing a management control system is to define the specific objectives that the system will support.

For example, the system may be designed to improve financial performance, enhance operational efficiency, or ensure
regulatory compliance.

2. Identify key performance indicators:

Once the objectives are defined, the next step is to identify the key performance indicators (KPIs) that will be used to
measure progress toward these objectives.

These may include financial metrics such as profit margins and revenue growth, as well as operational metrics such as
production efficiency and customer satisfaction.

3. Select appropriate metrics:

After identifying the KPIs, the next step is to select the most appropriate metrics for each KPI.

For example, if the objective is to improve financial performance, the metrics may include revenue, net income, return on
investment (ROI), and cash flow.

4. Develop reporting systems:

Once the metrics have been selected, the next step is to develop the reporting systems that will provide regular updates on
performance against these metrics.

This may involve implementing software tools such as dashboards, scorecards, or data visualization tools.

5. Establish data collection and analysis processes:

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In order to provide accurate and timely reporting, it is important to establish robust data collection and analysis processes.
This may involve implementing data management software, establishing data quality standards, and building analytical
capabilities and expertise within the organization.

6. Implement control processes:

Finally, the management control system must include processes for implementing corrective actions to address any
performance issues identified by the system.

This may involve establishing policies, procedures, and staffing plans to ensure that teams are equipped to respond quickly
and effectively to any performance concerns.

3) Factors influencing the design of management control system

There are several factors that influence the design of management control systems, including:

1. Organizational structure:
The design of management control systems must align with the structure of the organization. For example, a decentralized
organization may require more autonomy and flexibility in its management control systems.

2. Strategy:
The management control system must support the organization's overall strategic goals and objectives. For example, if the
strategy is to increase cost efficiency, the control system may focus on reducing costs.

3. Technology:
The use of technology can influence the design of management control systems. For example, the adoption of new
technologies may require changes in the control system to ensure data is accurately captured and analyzed.

4. Culture:
The organizational culture can affect the success of the management control system. For example, a culture of trust and
collaboration may require a more participatory approach to control system design.

5. External environment:
The external environment, such as changes in regulations, customer preferences or economic conditions, can impact the
design of the control system. For example, changes in regulations may require additional reporting or monitoring.

6. Size and complexity of the organization:

The size and complexity of the organization may require a more sophisticated management control system to efficiently
manage operations and decision-making.

7. Leadership style:
The leadership style of top management can influence the design of the management control system. For example, a more
authoritarian leader may prefer a more centralized control system, while a transformation leader may prefer a more
participatory approach.

Overall, the design of the management control system must align with the needs and objectives of the organization, while
also considering these various factors.

UNIT - IV

1) Management control structure

Management control structure refers to the system or framework within an organization that is put in place to ensure that the
organization achieves its goals and objectives.

It is a process that organizations use to monitor and regulate their activities, to ensure that they are in line with the
organizational goals.

The management control structure includes mechanisms that management uses to plan, monitor, and evaluate performance.

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The structure includes the policies, procedures, systems, and processes employed within an organization to ensure that
activities are conducted in a way that is consistent with the organization's goals and objectives.

The components of a management control structure include:

1. Planning: Where management establishes goals and objectives, and develops strategies and plans to achieve them.

2. Organizing: Assigning tasks, allocating resources and delegating authority and responsibility to achieve the objectives.

3. Directing: Supervising and managing employees to accomplish organizational goals.

4. Controlling: Monitoring and evaluating performance against set goals, measuring the outcomes, and taking corrective
actions where necessary.

5. Reporting: Communicating the results of the organization's activities to stakeholders, including employees, shareholders,
and customers.

Overall, a well-designed and implemented management control structure can help organizations achieve their objectives
effectively and efficiently.

2) Profit centers

Profit centers are a crucial part of management control systems that help organizations to measure and monitor their
performance.

Profit centers are departments or business units within an organization that generate revenue and produce a profit, and are
responsible for their own expenses and financial results.

Profit centers can include production departments, service units, sales teams, and other business units that generate revenue
and are accountable for their own performance.

The management control system of an organization is the framework through which managers monitor and regulate the
activities of profit centers and other business units.

This system includes financial and non-financial performance metrics, budgeting processes, and other control mechanisms
that enable managers to make informed decisions about resource allocation and performance improvement.

The benefits of profit centers in management control systems include:

1. Enhanced accountability: Profit centers enable managers to allocate resources and monitor performance at a more
granular level, thereby increasing accountability for results.

2. Improved decision-making: Profit centers provide managers with more data and insights to make informed decisions
about resource allocation and performance improvement.

3. Greater flexibility: Profit centers allow organizations to adapt to changing market conditions and customer needs, as each
unit can adjust its strategy and operations to fit its unique circumstances.

4. Increased motivation: Profit centers provide managers and employees with a sense of ownership and accountability,
which can help to motivate them to achieve better results and improve performance.

Overall, profit centers are essential to effective management control systems, as they provide a clear framework for
monitoring, measuring, and improving performance across an organization.

3) Management control process

Management control process refers to the systematic approach followed by managers to ensure that organizational goals and
objectives are achieved efficiently and effectively.

It involves establishing standards and targets, monitoring and measuring performance, identifying deviations from
established standards, taking corrective actions, and communicating results to higher management.

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The following are the steps involved in the management control process:

1. Setting goals and objectives: Managers need to define specific and measurable goals and objectives for their teams or
departments.

2. Establishing standards and targets: Managers need to establish standards and targets that enable them to monitor and
evaluate the performance of their teams.

3. Measuring and monitoring performance: Managers need to measure and monitor the actual performance of their teams
against the established standards and targets.

4. Identifying deviations: Managers need to identify any deviations or variances from established standards and targets.

5. Analyzing the causes: Managers need to analyze the causes of the deviations and determine whether they are due to
controllable or uncontrollable factors.

6. Taking corrective actions: Managers need to take appropriate corrective actions to bring performance back in line with
established standards and targets.

7. Communicating results: Managers need to communicate the results of the management control process to higher
management and other stakeholders to ensure that everyone is aware of the performance of the organization.

UNIT - V

1) Management information system (MIS)

A management information system (MIS) is a computer-based system that provides managers with the tools needed to
organize, evaluate, and efficiently manage information within an organization.

An MIS typically utilizes software, hardware, and data that allow managers to make informed decisions as they collect and
analyze a variety of data sets related to the organization's operations, finances, and performance.

An MIS can benefit businesses in several ways, such as:

1. Improved decision-making: An MIS can help managers identify trends, patterns, and potential problems that may not be
visible through manual data collection and analysis.

2. Increased efficiency: An MIS can streamline business processes by automating repetitive tasks, reducing human errors,
and providing managers with real-time information.

3. Better collaboration: An MIS can facilitate communication and collaboration between departments by providing access to
the same data sets and information.

4. Enhanced customer service: An MIS can help businesses better understand their customers' needs and preferences by
analyzing customer data.

Overall, an MIS can help businesses gain a competitive advantage by providing managers with the information and tools
they need to make informed decisions.

2) Systems theory and management

Systems theory is a field of study that investigates the behavior of complex systems in terms of their components,
interactions, and inputs and outputs.

It is commonly applied to domains such as biology, ecology, and engineering. In management, systems theory is a useful
tool for understanding how organizations function as complex systems.

Management is the process of planning, organizing, directing, and controlling the resources of an organization to achieve
predetermined objectives.

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Effective management requires a deep understanding of the complex systems that make up an organization, including the
internal processes, external environment, and interactions between various stakeholders.

Systems theory can help managers approach organizational problems from a holistic perspective, identifying the
interdependent components that can affect overall performance.

By analyzing an organization as a system, managers can better understand how changes in one part of the system can affect
the rest of the organization.

They can also use systems thinking to identify feedback loops and causal relationships that contribute to organizational
issues, and devise strategies to address them.

In summary, systems theory provides a useful framework for managers to understand and manage organizations as dynamic
and complex systems.

By adopting a systems thinking approach, managers can better address challenges and improve organizational performance.

3) Management control in service and non profit organization

In service and non-profit organizations, management control is crucial to ensure that the organization is achieving its goals
and meeting the needs of its stakeholders.

Management control refers to the processes, policies, and procedures used by an organization to monitor, measure, and
manage the performance of its operations, programs, and services.

The following are some ways in which management control is exercised in service and non-profit organizations:

1. Performance measurement: This involves setting performance targets, monitoring progress against these targets, and
taking corrective action when necessary.
In service and non-profit organizations, performance is typically measured in terms of outcomes or impacts, such as
improved health outcomes for patients or increased literacy rates for children.

2. Financial control: Financial control involves monitoring and managing the organization's finances, including budgeting,
accounting, and financial reporting.
In non-profit organizations, financial control is often more complex than in for-profit organizations, as non-profits must
track and report on sources of funding, including grants, donations, and government funding.

3. Strategic planning: Service and non-profit organizations must regularly assess their programs and services to ensure they
are meeting the needs of their stakeholders.
Strategic planning involves setting goals and objectives for the organization and developing strategies to achieve these goals.

4. Risk management: Service and non-profit organizations must manage a range of risks, including financial, operational,
and reputation risks.
Risk management involves identifying and assessing risks and implementing controls to mitigate these risks.

5. Governance: Governance refers to the systems and processes used to manage the organization, including the board of
directors, management team, and other stakeholders.
Effective governance is critical in service and non-profit organizations to ensure that the organization operates in an ethical
and transparent manner, and in accordance with its mission and values.

4) Types of control used by MNCs

1. Financial Control: MNCs use financial control to monitor the financial performance of their subsidiaries.
They use various financial metrics to assess how well their subsidiary is performing in terms of profit margins, cash flow,
return on investment, and other financial indicators.

2. Cultural Control: MNCs often use cultural control to ensure that their subsidiaries adhere to the parent company’s values,
norms, and practices.
This is particularly important in cases where the parent company operates in different cultural environments.

3. Bureaucratic Control: MNCs use bureaucratic control to enforce rules and regulations within their subsidiaries.

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This includes establishing policies and procedures, setting performance standards, and ensuring that employees comply with
these standards.

4. Strategic Control: MNCs use strategic control to ensure that their subsidiaries are working toward the same goals and
objectives as the parent company.
It involves developing a long-term strategic plan that guides the activities of the subsidiary and aligns them with the parent
company’s objectives.

5. Technological Control: MNCs use technological control to monitor the use of technology within their subsidiaries.
This includes regulating the use of technology and ensuring that the subsidiary has access to the latest technology and
resources.

6. Quality Control: MNCs use quality control to maintain standards and ensure that their products and services meet
customer expectations.

This includes monitoring quality, ensuring compliance with regulations, and implementing quality improvement processes.

5) Factors affecting control system in MNCs

1. Cultural and language barriers - MNCs operate in multiple countries where different languages and cultures are prevalent.
This creates a challenge in implementing a uniform control system that is effective across all locations.

2. Different legal and regulatory frameworks - MNCs operate in different countries with varying legal and regulatory
frameworks.
The control system needs to adhere to the local laws and regulations, which may be different in each country.

3. Distance and time-zone differences - Many MNCs have operations in distant and far-off locations, which makes
communication and coordination challenging.
The control system needs to be designed in such a way that it can operate across different time zones and distance.

4. Technological advancements - Technological advancements have revolutionized the way businesses operate.
MNCs need to continuously upgrade and adapt their control systems to keep up with the latest technological trends.

5. Differences in financial systems - Every country has different financial systems and accounting standards.
Therefore, it is important for MNCs to create a control system that can accommodate these differences while still
maintaining financial transparency and accuracy.

6. Political instability - Political instability in some countries can lead to an uncertain business environment, making it
difficult for MNCs to implement and monitor their control systems.

6. Employee turnover and training - High employee turnover rates and a lack of adequate training can make it difficult for
MNCs to maintain and enforce their control systems consistently.
It is essential to provide adequate training to employees to ensure that they understand the importance and intricacies of the
control system.

6) Control in professional organizations

In professional organizations, control generally refers to the management and oversight of the organization's operations,
resources, and personnel to ensure that they are aligned with the organization's objectives, policies, and values.

Some of the key areas of control in professional organizations include:

1. Financial control: This involves the monitoring and management of the organization's financial resources, including
budgeting, accounting, and financial reporting.

2. Legal control: This involves ensuring the organization's compliance with relevant laws, regulations, and ethical standards,
as well as managing the organization's legal risks and liabilities.

3. Operational control: This involves managing the organization's day-to-day activities, processes, and systems to ensure
efficiency, effectiveness, and quality.

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4. Personnel control: This involves managing the organization's human resources, including recruitment, training,
performance management, and employee relations.

5. Strategic control: This involves setting and monitoring the organization's long-term goals and objectives, as well as
developing and implementing strategies to achieve them.

In professional organizations, control is typically carried out by a combination of senior management, governance boards or
committees, and various functional departments or units.

Effective control is essential for ensuring organizational performance, sustainability, and accountability.

7) Control in financial service organizations

Control in financial service organizations is concerned with regulating and guiding the activities of the employees and the
use of resources to ensure adherence to policies, procedures, and regulations.

The control processes aim to prevent errors and fraud, minimize risks, ensure compliance with regulatory requirements, and
protect the interests of customers and stakeholders.

Some ways in which financial service organizations can implement control measures include:

1. Internal control procedures: This involves establishing policies and procedures to ensure that operations are conducted in
accordance with company policies and regulations.

2. Risk management: This includes identifying and analyzing potential risks and developing strategies to manage them.

3. Compliance monitoring: This involves monitoring activities to ensure compliance with regulations and internal policies.

4. Audit function: This involves carrying out independent reviews of financial actions, records, processes, and systems to
assess their effectiveness.

5. Segregation of duties: This involves separating the duties of employees to minimize the risk of errors or fraud.

6. Training and development: This involves providing employees with the necessary skills, knowledge, and information to
carry out their duties more effectively and efficiently.

7. Performance management: This involves monitoring and evaluating the performance of employees to ensure that they are
meeting the required standards.

Overall, control measures in financial service organizations are essential to maintaining integrity, accountability, and
transparency in the organization's operations.

It also helps to build trust and confidence among customers, employees, and shareholders.

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