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Management Control System

The Nature of

Management ControlSystem

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CONTROL

Control is a process of planning,implementing and evaluating theresults.

Control may be formal or informal.

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CONT

Control consists of the following elements:

A Detector or sensor Informationabout what is happening

An Assessor Comparison withstandard

An Effector Behavior alteration, if

needed A Communications Network devices

that transmit information between

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SYSTEMS

A system is a prescribed way of carryingout an activity or set of activities; usuallythe activities are repeated.

A system is more or less rhythmic,recurring, coordinated series of steps thatare intended to accomplish a specified

purpose.

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MANAGEMENT

Organisation is a group of two or morepeople.

Organisation consists of hierarchy ofmanagers with the CEO at the top.

Each Manager has superior and asubordinate.

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MANAGEMENT CONTROL

Management Control is the process bywhich managers influence othermembers of the Organisation to

implement the organizationsstrategies.

It involves Planning, Coordinating,communicating, Evaluating, Deciding &

Influencing the people

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MANAGEMENT CONTROLSYSTEM

According to Prof. John Dearden :

MCS is the process by which managersassure that resources are obtained andused effectively and efficiently in theaccomplishment of the organization

goals.

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CONT

Management control systems are toolsto aid management for steering anorganization toward its strategic

objectives.

Management controls are only one ofthe tools which managers use in

implementing desired strategies.

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OBJECTIVES

Acquaint future managers with controlsystems in profit making as well as notfor profit making organization.

To gain knowledge, insight andanalytical skills related to how a firms

managers go about designing, and usingplanning and control systems toimplement a firmsstrategies

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CONT

To assist management in thecoordination of the parts of anorganization and the steering of those

parts towards the achievement of itsoverall purposes, goals and objectives.

A control system is designed to bring

unity out of diverse activities of anorganization as it seeks to fulfill itsoverall purpose.

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Scope of MCS

Strategy

formulation

ManagementControl

Task Control

Activity Nature of End Product

Goals, Strategies, policies

Implementation of strategies

Efficient and effective performanceOf individual tasks

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Thank You