What Are The Benefits Of Management Control System?

If you’d have to name a single function in the organisation that can make or break it, you might mention management. The control of the operations and the people behind them is what management is about and it can be a tougher task than many imagine. So, what could make it easier and guarantee results that are more effective? According to a number of proponents, management control systems can help provide plenty of benefits to organisations of all shapes and sizes. What are these management control systems? Let’s examine the definition, the function, the characteristics and the benefits of it. We’ll also venture a little into the implementation process and the factors that can help or hinder when applying the system to your organisation.

1 Defining

The management process wants to ensure different parts work together to attain these goals. How can this be done? Well, this in most instances means dealing with different resources and allocating them to correct roles and purposes. Management includes guidance and monitoring of these resources as well. You are essentially managing how other people perform a specific role and use resources, instead of doing it yourself. As a manager, you are essentially a facilitator – if A needs to be done, you find B to do it and provide him the strategy and the resources to do it.

OK, so that explains the core concept, but what about the functions of management? You need to identify and understand the key components of management as well. The first component is the different functions of management. The definitions can be different depending on the situation, but generally, five functions are identified as the core functions of management. These are planning, organising, staffing, leading, and controlling. You can watch the YouTube clip below to learn more about the functions and the specific processes they

The most common forms of resourcing include: human resources, financial resources, technological resources and natural resources. You could use the above functions to allocate, control and monitor the different forms of resources. In essence, you are combining the functions you have at hand – planning, staffing and so on – with the resources, such as financial resources. The clearest example is having the function of staffing and using the human resource funding to hire in new staff.

The definition of management in the context of MCS is important because of how organisations can be viewed. Think of an organisation as a system. Now the role of management is therefore facilitating the production of beneficial outcomes from the system. If you want the system, i.e. the organisation, to produce a result A, you use management to gather the resources, i.e. the human and other resources, to guarantee A gets done. You are essentially the engine, which gathers the other parts together to move the car forward.

Systems

What about systems? As mentioned above, you can view organisations as systems. The Business Dictionary gives two definitions to systems, which are both good to understand in the context of MCS. Systems are:

“a set of detailed methods, procedures and routines created to carry out a specific activity, perform a duty, or solve a problem”

or you could view them