Management Control System

Management control system

Meaning

Management control is the process by which managers influence the other members of the organization & ensure that activities and efforts are producing desired results. It helps in taking steps to ensure that organization’s employees are doing their best for the organization.

Definition “Management control is the process by which managers assure that resources are obtained and used effectively and efficiently in the accomplishment of organization’s objectives” -Anthony

nd 2

definition

“Management control implies measurements of accomplishment against the standards and the corrections of deviations to assure attainment of objectives according to the plans” -koontz and o’donell

Basic concepts of MCS MCS is mainly composed of three concepts namely:üManagement üControl üSystem

Nature of MCS vFuture oriented vObjective driven vContinuous process vco-ordinate integrated system vNot always economically desirable vDynamic vRhythmic vTime horizon vNature of information

Scope of MCS

System

STUCTURE ( WHAT IT IS)

PROCESS (WHAT IT DOES)

MCS as a process:ØCommunication of information and interaction ØSetting up of standards ØEvaluating the performance ØTaking remedial measure

MCS as a structure :Øcombination of units and sub-units with in the organization. ØManager is responsible for the activities of such units. ØAttempt should be make to control system fit into the work & personalities.

Objectives of MCS • To assist the management • T evaluate the performance • To indicate corrective action

THANK YOU PREPARED BY:ABHINAV