Management Control Systems

Management Control Systems

Introduction

In a firm, management control is the operating system designed to guide the management towards achieving the objectives established in the operational planning, detected through the measurement of indicators, the gap between objectives and planned results and informing those deviations are the bodies responsible, so they can decide and implement the appropriate corrective actions. Synonymously in the literature is also the term directional control; some, however, the reserve management control held in support of the top management decisions. Therefore, the following paper will include the situational factors of the management control system, the management control system and the strategic planning, managerial rewards and incentives in Management Control System and the influences of a Management Control System. (Amat, Joan. 2000)

Discussions

Management Control System (MCS)

The management control system is a fundamental tool for companies to obtain products and services with significant efficiency, which will allow access to the competitive world of today. The system of management control is a process composed of different elements that involve the entire organization whose ultimate goal is to provide information to control the management of the company, must enable the how, when and where it has used all the resources company made ??available to the different managers to obtain concrete results in terms of its objectives. For this the company must have an organizational system based on departments or areas of responsibility well defined by the functions and tasks for each responsible. The management control system is an integrated process or sum of several components, is not an isolated system of the whole enterprise, and all staff will be involved in its operation. (Burns, Vaivio.2001). 

Management control system plays a key role in managing increasingly complex organizations. It is responsible for the efficient modeling of economic information management; management control is likely the pivot member of the assistance to the implementation of the strategy and monitoring its effectiveness. The term system designates a set of elements in dynamic interaction organized according to a target, in order to achieve the results of work of an organization. (De Haas., Kleingeld.1999)

Situational Factors of the Management Control System

Thus, likewise any model that works has some factors that are the key for the operations of the entire process. The following are the situational factors that are the main components of the management control system. These are three commonly used in the evaluation of system performance, which are closely related to the quality and productivity: efficiency, effectiveness and efficiency. (Atkinson, Banker.et.al.1997).

Efficiency:

It is used to account for resource use or performance of activities with two meanings: first, as a relation between the amount of resources used and the amount of resources than previously estimated or planned use, the second as degree to which resources are used by transforming them into products used. (Edwards.1972).

How effective is the relationship between results achieved and the results that we had proposed, and shows the degree of fulfillment of the objectives we have planned: production quantities, customers have, placing purchase orders, ...