8/12/2019 Define Management Control System and Explain Its Characterstics

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Define Management Control System and explain its characterstics

Definition :: Management Control System is defined a set of policies andprocedures designed to keep operations going according to plan

CHARACTERISTIC FEATURES OF MANAGEMENT CONTROL SYSTEM : (a) It focuses on programmers and responsibility centers .

Responsibility centre is an unit or sub unit or sub unit of anorganization usually headed by a manager, who becomes responsibleand accountable for the activities or that unit or sub unit.

(b) For the purpose of control, managers use two types of data, viz. planned data and actual data . Planned data relate to estimate,

budget, and standard and forecast details of future events oractivities.

(c) The control process is a set of actions such as programming,

budgeting, monitoring, evaluating, analyzing and reporting. It is acont inuous or an on going process. Just as the navigator in anaircraft or sea voyage continually takes reading to ascertainwhether or not he is relative to a planned course.

(d) It is a total system covering all aspects of a companysoperations. This is important because management function assuresthat all parts are balanced with one another. Unless managementobtains information about each of them, coordination between allthe activities is not possible.

(e) The system is normally coordinated and integrated so that the sameset of information can be used by other units for some otherpurpose. Management Control system is a set of interlocking subsystems generating a single system. While designing reportingformat, this aspect is carefully considered by the systems manager.

(f) The system is usually designed with financial figures and not with physical units of input and output. Because, monetary unit is the

only common denominator which can be used to express heterogeneousinput and resources, such as, kgs., pcs., litre, machine hour,labour hour, etc.

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8/12/2019 Define Management Control System and Explain Its Characterstics

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