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 system defines character and goals of an organisation and setting guidelines, for both performance targets and acceptable employee behaviour, in pursuit of those targets (Armesh et al. 2010). A management control system progresses through the development of a vision, formulation and implementation of strategy, measurement, evaluation and detailed reporting of operational data (Swinburne 2015). An effective management control system should, monitor the internal organisational activities and be aware of changes in the external environment (Armesh et al. 2010, p.193). Management controls have two important subcategories, these are firstly, output or results controls and secondly, behaviour and personnel controls; and social engagement contracts. Output controls involve measuring, monitoring and comparing outcomes against targets, enabling action to be undertaken when needed, by using administrative or action controls . The second category has controls such as values and norms, that is m...
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...ositive behaviour in organisations. Encouragingly, it seems possible for FIFA to change its culture, by removal of the unethical current management, restructuring its processes and adopting its ethical framework.
The use of an MCS by organisations, was discussed using the example of the Balanced Scorecard, in comparison to the Ittner and Larcker value-based control system used by FIFA. Ironically, their stakeholders perceived, through poor ethics of FIFA’s management 's , a lack of shared goals and values. Consequently, a Balanced Scorecard approach emphasising moral and ethical benchmarks may be more pertinent.
The impacts of organisational culture and a MCS on the performance of an organisation are compelling, therefore it is paramount that an organisation is defined by a positive culture and has the systems in place to measure and control their cultural focus.
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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.... [tags: Management, Strategic management]
1179 words (3.4 pages)
- ASSIGNMENT 1: THE INTERRELATIONSHIP BETWEEN MANAGEMENT CONTROL SYSTEMS (MCS) AND STRATEGY. TABLE OF CONTENTS: 1. Introduction 2. Definitions of Management Control System (MCS) 3. Definition of Strategy 4. The interrelationship between Management Control System and Strategy 5. Conclusion 6. References 1. INTRODUCTION: This assignment examines the interrelationship between management control systems (MCS) and strategy. The conventional view is that the MCS is shaped by organisational strategy, where as more contemporary researches suggest that there may be two-way relationships between the two variables.... [tags: Management, Strategic management, Organization]
728 words (2.1 pages)
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1140 words (3.3 pages)
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1305 words (3.7 pages)
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1073 words (3.1 pages)
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1160 words (3.3 pages)
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1781 words (5.1 pages)
- INTRODUCTION: SYSTEMS ENGINEERING THROUGH THE SYSTEM LIFE CYCLE Modern engineered systems come into being in response to societal needs or because of new opportunities offered by advancing technology, or both. The evolution of a particular new system from the time when a need for it is recognized and a feasible technical approach is identiﬁed, through its development and introduction into operational use, is a complex effort, which will be referred to as the system development process. This chapter is devoted to describing the basic system development process and how systems engineering is applied at each step of this process.... [tags: management control, documentation]
3182 words (9.1 pages)
- Appendix A. Journal Article Critiques Article Critique #1 The first article reviewed was the Use ERP Internal Control Exception Reports to Monitor and Improve Controls. The abstract discusses how businesses with ERP systems are able to utilize internal controls to improve their financial reporting. It also goes on to discuss how internal control reporting can be used to monitor and improve employees access controls and segregation of duties. The Enterprise Resource Planning (ERP) system provides businesses the opportunity to have constant monitoring and improvement over their internal control system.... [tags: Internal control, Audit, Auditing, Financial audit]
1423 words (4.1 pages)