assignment 1 mcs

8/6/2019 Assignment 1 MCS

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MCS Assignment 1

Name (Of the faculty) : Prof. A. Kanetkar

Signature:

Date of Evaluation:

Remarks (By Faculty): _________________________________________

________________________________________

_________________________________________

_________________________________________

Name: Bikramjit Dey

Due Date / Day: 28/7/2011

Class:

Roll No: 2802308

Subject: MCS

Assignment No: 1

Topic: Mgmt Control Systems

Title of the Assignment: Mgmt Control Systems in an Organization

Signature: (Of the student)

Marks out of 15


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MANAGEMENT CONTROL SYSTEMS

Management control is a must in any organization. Management control system is

essentially a strategic tool for holding managers accountable and responsible fortheir performance. Existence of such a system also provides feedback for

managers to know how they perform, in which direction the organization is

heading, and what type of course correction may be required to stay on course.

Management Control Systems (MCS) theory is a useful integrative tool for

organizing, explaining, and understanding the jargon and concepts of

performance measurement. MCS theory can help make sense of the criteria by

providing a way of organizing and remembering the criteria and the related jargon

and concepts. A good place to start in understanding the relationship between

the criteria and MCS theory is with the stated objective of the criteria. Amanagement control systems (MCS) is a system which gathers and uses

information to evaluate the performance of different organizational resources like

human, physical, financial and also the organization as a whole considering the

organizational strategies. Finally, MCS influences the behavior of organizational

resources to implement organizational strategies. MCS might be formal or

informal. But it must fit the companys strategies.

Management control is one of three planning and controlling functions

that are present in almost every organisation. The other two are strategyformulation, the largely unsystematic process of identifying threats and

opportunities and deciding on new strategies in response and task control.

Control in short, is exercised by managers who supervise responsibility centers.


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Characteristics of Control System

Involvement of people.

Information about the actual state of the organization is compiled by people.It is compared by people.

With the desired state decided by people.

For significant difference, a course of action is recommended by people.

Action taken by people.

Management Control System Component

1. Performance management2. Budgets

3. Comparisons

4. Reporting

5. Adjustments

Elements of management control process:-

1. A detector or sensor: - it is a device that measures what is actuallyhappening in the process being controlled.

2. An assessor: - it is a device that determines the significance of what is

actually happening by comparing it with some standard or expectation of

what should happen.

3. An effector: - it is a device that alters behavior if the assessor indicates the

need to do so.

4. A communication network: - it is a device that transmits information

between the detector and the assessor and between the assessor and theeffector.


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ELEMENTS OF MANAGEMENT CONTROL PROCESS

FUNCTIONS OF MANAGEMENT CONTROL STSTEM

Planning activities of an organization

Coordinating activities of an organization

Communication information to different levels of the hierarchical structure

Evaluating information and deciding the actions to be taken

Influencing people to change their behavior.

OBJECTIVES OF MANAGENT CONTROL SYSTEMS

(a) Indicate work progress,

(b) Properly relate cost, schedule and technical accomplishment,

(c) To be valid, timely and auditable, and

(d) Supply DoD managers with information at practicable level of summarization

ADVANTAGES OF MANAGEMENT CONTROL STSTEM

DETECTOR

CONTROL

DEVICE

EQUITYBEING

CONTROLLED

ASSESSOR

EFFECTOR


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1) It helps in planning of the organisation.

2) It helps in coordinating the activities of several parts of the organisation.

3) It helps in communicating information.

4) It helps the evaluating the information correctly.5) It helps in the process of decision making and right action to be taken.

6) It also influences people to change their behavior.

IMPLEMENTATION MECHANISMS

MANAGEMENT

CONTROLS

ORGANIZATIO

N STRUCTUREHUMAN RESOURCE

MANAGEMENT

STRAT

EGY PERFORM

ANCE

CULTURE

assignment 1 mcs

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