Introduction
Under the current economic environments, reasonable introduce and efficiently use of management control system is critical for a company. Action control, result control and people control can be considered as three key factors in management control system which is used to reduce the risk of operation and help the companies to achieve their objectives and also maximize the profit. In this essay, we will focus on the analysis of result control relate with some case studies and journal articles. At first, we will discuss the affect of results control on incentive talents, and then indicate the potential limitation of result control in certain situations. At last, we will try to give some solutions to overcome the potential limitation
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Result control can be used to help the organizations to overcome these problems. A certain defined results tell the employees to know what is the expect outcomes they need to get and also result controls set and measure the performance targets which can encourage and motivate employees to improve their abilities to address the personal limitations .Particularly, result control induces the employee to do their best in order to achieve the target and maximize the profit of companies, this due to the reward and punishment policies. As the case study: Leo’s Four-Plex Theater shows, Lack of motivation will lead the stuffs slack off and no enthusiasm during working time , this directly influence on the profit of theater. Implementing reward and punishment policies to motivate employees is a good choice to solve this …show more content…
Secondly, results controls is beneficial for managing a company and help it to get the best of interest, however, it still has some potential limitations in certain situations, such as the employees may unscrupulously to achieve the goals for the rewards, one more limitation is how to effectively measure the result. Measuring the result reasonably, precisely, objectively and timely are potential limitations in result controls. At last, to overcome the potential limitations of result controls, the organizations need to use the action control together with the result control to monitor the employees’ behaviors. To make sure the employees work for the best interest of companies within the desired way. To overcome the limitation in measuring result, automation to measure is good choice to think about. Management control systems greatly promote the organizations’ operation and help to achieve the goal to maximize the profit, however, it still have some potential limitations need to be overcome. Through continuous improvement, the management control systems will play more important roles in
PROBLEM : What effective management control system or systems should the Company adopt to attain maximum profitability not only of its divisions’ respective operations but that of the Company as a whole?
The pressure can come from the need to make minimum wage money or a parent deciding on what their kids need to fulfill financially. When choosing something partaking interest in, they are content and adore what they do. Love for their work profession encourages a positive attitude and this is needed for productivity. When an employee loves what they do, they attain a constructive behavior. But, when productivity is sacrificed, it begins to suffer with negative employees who only work to make a piece of change. The only determination they pertain to is to increase their productivity in order to get more money, but in due time this makes them traumatic and hostile. Undesirable employees have no interest in the work, soon the satisfaction is hard for them to achieve, leading to insufficient motivation. The two major ways for employees to improve, productivity in their professional ranges is the choice of profession
Process control within an organization is a meeting or exceeding standards that are determined by setting goals to attain within the company to improve processes for better outcomes. In setting goals, managers determine the standard in which they will operate. For example, the shipping department must process thirty shipments per day. This now becomes the standard to meet and if it is achievable, will be a good way to keep employees motivated. If the goal is not achievable, companies should consider changing those standards to make them achievable.
The company motivates employees by providing “reward” and “engagement”. Reward is evaluating the employees properly and giving reasonable salary, and are divided into three parts:
Controlling in management is a function of management that is concerned with making sure that all other functions of the management are put in place and operated effectively. Controlling ensures that it has taken into consideration the monitoring of the output of the employees as well as the establishing standards of performance that will guarantee that the performance of the will always meets the set standards (Spellman,
Incentive reward engagement offers a win-win situation for the employees and the company. Kelleher believes that incentive is a form of recognition and builds engagement through company’s and employee’s obligations towards a common goal (2014). The company has a “Growth Incentive Scheme” for the production workers. Special monetary incentives are provided should the workers achieve the monthly output target. Through the rewards, employees feel motivated towards their work and thus, contribute towards the company’s
The organization needs to continuously monitor on whether the objectives are met. Feedback comes from human re-sources carrying out the processes (employees) and many other areas affected by the organiza-tion. This is mainly done through research which of the system. Schaech (2004), says it is very important for a system to have a control mechanism that ensures that information from the system output is evaluated against the system and provide feedback on this evaluation so to further inform the inputs. The systems theory provides a new way of viewing management because it provokes managers to look at their institutions from a broader perspective (Schoech, 2004). According to system theory, it is important to pay close attention to the in-terrelations of different component of their organizations and not look at one thing at a time but a part of a
Performance management is a management tool used to value, monitor and measure a company’s strategies that ensure the efficiency and effectiveness of its product delivery. This management tool does not focus on the organisation and on its employees as well as stakeholders. It is a continuous process that entails that managers make sure that organisational and employee values are corresponding (Aguinis, 2005,p.1/2-1/5). Performance Management brings about the competencies in the employees, increases self-esteem by giving feedback to employees, there is a low number of lawsuits because it helps understand the company better (eThekwini Municipality, 2008,p.10-11). According to Pride, Hughes and Kapoor (2011, p.288) performance management creates motivation for employees; one theory of motivation is of Expectancy, which stipulates that employees satisfaction is driven by expectations of what an organisation will offer in return.
“The control process gives managers the tools needed to effectively monitor progress towards an objective” (Satterlee 2013. p.74). There are basically two types of controls utilized by management: internal and external controls. “Internal controls generally can be classified into two categories: preventive or detective” (Satterlee, 2013. p75). As the names depict, preventive is used to ensure things do not happen unless desired and detective is described as determining what happened after it already occurred. Preventive is generally the best choice. Merchant states, “The need for controls over any particular behavior or operation within an organization depends very simply on the impact of that area on overall organizational performance” (Merchant, 1982, p. 48). External control is on the outside of the organization which may deal with polices, auditing and procedures to name a few. The organization has little-to-no control over many of external controls; however, managers must remain cognizant of their affect on the organization and plan for any
Life is all about setting goals and trying to achieve them. The same theory also applies in the managerial industry. The accomplishment of desired results in a business is called performance. One of the major concerns of the top managers of a firm is the actual performance of the firm so its measurement is unavoidable.
Usually Managers have the role to manage the company’s performance; therefore they must be trained professionally in the field of administration management, Project Evaluation and Maintenance management. The must also be well versed with the adhering to the objectives of performance management in a given company or a business organization. On the other hand, employees of the same organization must be sure and certain of their duties and roles. Certainly, they will work with an aim and focus to achieve specified goals of the company. An organization with suitable management acquires many professionals with appropriate skills and knowledge. On acquisition, the firm will have expectations towards achieving high standards performance across systems management. Such professionals will always work at the best interest of the company, with skill and care and they will go ...
Performance is defined as a role of individual ability, skills and effort in a given situation. Performance depends on an individual’s perception, values and attitudes. Job performance is an accomplishment of the specific work related tasks or skills by an employee. Besides, employee behaviour is also necessary for an organization to be smooth, cooperate and communicate well in the organization to achieve gaols. There is some reciprocal relationship between job satisfaction and job performance. Satisfaction can cause performance, performance can cause satisfaction and rewards affect both performance and satisfaction. If employees are satisfied and committed to their job, they are more willing to take additional responsibilities without increasing their salaries. Then, their levels of commitments are high and they are more enjoyable in their work place. When employees are happy, they are more probably to have a positive attitude on life and more enthusiastic and productive. Otherwise, if employees are dissatisfied on their job, they are demotivated and they are not participating in any organizational activities, means lack of commitment.
The factors, such as global competition, technology improvement and the economic growth force the company to modify its performance measurement system. By only evaluating the performance from accounting information and putting aside the performance process, the manager’s responsibility to increase the value of company cannot be done. Large scale of the business requires the process-oriented measurement, which is suitable for mass customization manufactures, rather than result-oriented.
Performance management forms a bridge that connects between the employees and the organization. Organization considered performance management as insurance for the both company that employees will attempt to give their best performance at the work site. In return, the organization will fill their obligation to the employees by providing all the necessary tools, resources, training materials, feedback, motivation, appraisals, and rewards systems to assist the employees with being fully successful. Kazlauskaite, Buciuniene, & Turauskas (2012), indicated, “Organizations empowerment was positively related to job satisfaction, and affective commitment” (p.138).
Performance Management is a critical component to organizational success. However, creating, developing, and maintaining a system that captures all the characteristics of an ideal performance management system should involve an ongoing collaboration between leadership and employees to achieve a successful outcome. After all, the performance and success of the organization is dependent upon the employees. Therefore, performance management should incorporate organizational goals, employee goals, and continuous feedback that reflect individual’s contribution (NorthCoast 99, 2012).