Management Controlling

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Nov 30, 2013 (3 years and 9 months ago)

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MANAGEMENT CONTROL

M. S. Memon

Lecturer

Industrial Engg & Management

Department

MUET, Jamshoro

MCS


AN OVERVIEW


An

enterprise

has

to

use

its

resources

effectively

and

efficiently,

in

order

to

achieve

its

objectives

and

excel

in

its

chosen

domain

of

operations
.


A

competitive

edge

needs

to

be

maintained

over

competitors

in

terms

of

cost

and

quality
.


MCS


AN OVERVIEW


In

order

to

survive

and

sustain

themselves

in

a

complex

business

environment,

organizations

are

required

to

simultaneously

meet

the

growing

demands

of

their

stakeholders

.


CONTROL


Control refers to the activities of


Establishing standards of
performance,


Evaluating actual performance
against these standards, and


Implementing corrective actions to
accomplish organizational objectives

CONTROL


In a complex and volatile business
scenario,
the most carefully
crafted plans can go wrong
. The
enterprise requires control systems to
monitor the developments in the
external marketplace and to adapt to
them.


CONTROL


MCS help in not only assuring better
quality but also in coping with
unanticipated change

and creating
faster cycles to market

Definition


A

management

control

system

is

a

set

of

interrelated

communication

structures

that

facilitates

the

processing

of

information

for

the

purpose

of

assisting

managers

in

coordinating

the

parts

and

attaining

the

purpose

of

an

organization

on

a

continuous

basis

MCS


It assists the management in


Formulating strategies,


Coordinating the activates of the
organization, and in


Steering those activates toward the
achievement of the overall goals and
objectives.

Cybernetic approach to

MANAGEMENT CONTROL


Cybernetics

is

the

study

of

the

entire

field

of

control

and

communication

theory,

whether

in

the

machine

or

the

animal
.



Cybernetic approach to

MANAGEMENT CONTROL


When exercising the control
function, a manger
measures the
performance

of an
individual
, a
plan
, or a
program

against certain
predetermined

standards and
takes
corrective actions

if there
are any
deviations

Basic control process


Determining areas to control


Establishing standards


Measuring performance


Comparing actual performance
against standards


Rewarding good performance


Taking corrective action when
necessary


Adjusting standards when necessary