Chapter 1 - Management and control
* MCS has the same meaning as the terms execution and strategy implementation
* Objective setting: In any organization employees must have a basic understanding of what the organization is trying to accomplish.
* Strategy formulation: Strategies define how organizations should use their resources to meet these objectives. A well-conceived strategy guides employees in successfully pursuing the organization objectives.
Management control versus strategic control
* Control systems can be viewed upon as having two functions: Strategic control and management control. Strategic control involves managers addressing the question of “ is our strategy valid? Whereas management control focuses in execution and it involves addressing the general question: “ Are our employees likely to behave in line with the strategy.
* Strategic control primarily have a external focus dealing with the company’s swot. Management control have a internal focus. How can we influence employees behaviour in a desired way.
* Management control involves managers taking steps to help ensure that the employees do what is best for the organization
Causes of management control problems
* Lack of direction: Employees do not know what is expected from them: Management control function involves informing employees as to how they can direct their contribution
* Motivational problems: Employees sometimes act in their own self-interst on the expense of the company
* Personal limitations. Some employees know what is expected from them, they are also motivated but they have personal limitation for instances. Some can be person-specific others can be lack of training or knowledge.
Characteristics of good management control
* Good control means that management can be reasonably confident that no major unpleasant surprise will occur – good management also recognises that failure can...