Management Control Systems Case Study

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Management Control Systems
As described in the introduction, a management control system (MCS) is defined, as the use of a number of techniques to observe and evaluate employee performance, in comparison to management organisational targets . The MCS collects and uses information to evaluate the performance of resources that ultimately influence the organisational strategies. The research of Simons (cited in Armesh et al. 2010, p.193) identified the four distinct categories as diagnostic, boundary, interactive and belief control systems. The diagnostic and boundary systems set standards for improving efficiency and creativity whereas the interactive system is ideal, to form guidelines, to adapt to changing market conditions. Finally, the belief
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The balanced scorecard is a continuous, strategic analysis of the organisation from multiple perspectives commonly approached by analysing the four perspectives of financial, learning and growth, customer and internal business processes. A combination of financial and non-financial performance measures are used in this analysis. Financial information is measured in dollars or ratios of dollars and compares forecasts to actual results, whereas nonfinancial information, that cannot be measured in dollars, includes data on areas such as defect rates, throughput time and employee retention (Eldenburg et. al. 2014, p. 699). Interestingly, the Balance Scorecard MCS was developed to balance the undue emphasis of the financial performance focus of organisations, with non financial indicators, particularly in the western english speaking countries such as the United States of America and the United Kingdom (Otley 1994, p.
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