Essay on Management Control Systems And Management

Essay on Management Control Systems And Management

Length: 1179 words (3.4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

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 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...


... middle of paper ...


...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.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Management Control Systems And Management

- 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]

Better Essays
1179 words (3.4 pages)

Interrelationship Between Management Control Systems And Strategy Essays

- 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]

Better Essays
728 words (2.1 pages)

Strategy and Control Frameworks Essay

- Strategy and control form an important relationship in management accounting as they inform the nature and use of control systems to guide decision makers. Strategy is concerned with strategic issues and the aim of having sustainable competitive advantage. Strategies need to be well thought out as well as specific, measureable, attainable, realistic and timely. Control is the task of setting standards, measuring performance and taking corrective action to ensure objectives are achieved. Strategy and control frameworks provide a means of determining the link between strategy and control....   [tags: Management, Accounting, Control Systems]

Better Essays
1140 words (3.3 pages)

Management Systems: Behavior Control And Output Control Essay example

- Behaviour-control and output-control are opposing methodologies managers employ in control-systems. Organizational requirements are determined by size, goals and other variables. Control-systems are mechanisms “for adjusting course if performance falls outside acceptable boundaries” (Davidson & Griffin, 06), allowing adaptation to change. They include procedures for “monitoring, directing, evaluating and compensating employees”, and influencing behaviors with the objective of having the best impact on both firms and employees’ (Anderson & Oliver, 87)....   [tags: Business Management employee]

Free Essays
1305 words (3.7 pages)

Management Control Systems Essays

- There are many different types of control that can be established in an organization depending on its goals and objectives. There are many different approaches to the management controlling function. Some of these control systems are bureaucratic control, market control and clan control. All of these control systems focuses on a different part of the business depend ending the necessities of the organization in that moment. All of the control systems have their advantages and disadvantages.      The controlling function is defined as any process that directs the activities of individuals toward the achievement of organizational goals*....   [tags: Business Controlling Function]

Better Essays
1073 words (3.1 pages)

Development of Control and Confidentiality for Database Management Systems

- ... Some key features of this model included the notion of distributed authorization administration, dynamic grant and revoke command of authorizations, and the use of views for supporting content-based authorizations. Also, the initial format of familiar commands for grant and revoke of authorizations that are today part of the SQL standard. Next research proposals have extended this basic model with a variety of features, such as negative authorization, role-based and task based authorization temporal authorization, and context-aware authorization....   [tags: access, steganography, authorization]

Better Essays
883 words (2.5 pages)

Does Lincoln Electric Inc. Follow a Hierarchical or Decentralized Approach to Management

- Does Lincoln follow a hierarchical or decentralized approach to management. Lincoln Electric, Inc. follows a decentralized approach to management. At foremost a decentralized approach to management according to Daft, “culture, values, traditions, shared beliefs, and trust are used to foster organizational goals” (Daft, 2012, pg.553). This approach emphases a unifying goal which is shared and is worked upon in a unifying effort for success by every member of the organization. Decentralization control management prides itself in workers autonomy and high performance work systems in respect to performance standard....   [tags: Business, control systems]

Better Essays
1160 words (3.3 pages)

Process Control Systems ( Pcs ) Essay

- SCADA, or often referred as Process Control Systems (PCS) is interpreted as an overall collection of control systems that measures, reports, and changes processes SCADA is the acronym of Supervisory Control and Data Acquisition, which is a communication technology scheme for collecting data from distant facilities and also controlling them on control systems. In the beginning SCADA system was locally introduced, and it has been applied to larger and wide-area systems as the information technology evolves....   [tags: SCADA, Process control, Security]

Better Essays
1781 words (5.1 pages)

Systems Engineering Through the System Life Cycle Essay

- 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]

Better Essays
3182 words (9.1 pages)

Use Of Erp Internal Control Systems Essay

- 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]

Better Essays
1423 words (4.1 pages)