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Notes - Mcs Essay

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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.

Behavioural emphasis

  * 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...

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