Distinction between Strategy Formulation and management Control

Characteristics a) Focus of plan b) Complexities Strategy Formulation On one aspect at a time Many variables hence complex Tailor-made for the issue, more external and predictive, less accurate. Unstructured and irregular, each problem being different Relatively simple Management Control On entire organisation Less complex

c) Nature of information

Integrated, more internal and historical, more accurate.

d) Structure

Rhythmic, definite pattern, set procedure Relatively difficult

e) Communication of information f) Purpose of estimates g) Persons involved h) No. of persons involved i) Mental activity j) Planning and control

Show expected results Staff and top management Small Creative, analytical Planning dominant but some control Tends to be long Policies and precedents Extremely difficult

Lead to desired result Line and top management Large Administrative, persuasive Emphasis on both planning and control Tends to be short Action within policies laid Less difficult

k) Time horizon l) End result m) Appraisal of job done

Distinction between Management Control and Task Control

Characteristics a) Focus of plan b) Nature of information Task Control Single task or transaction Tailor-made to operation, specific, often non- financial, real time Supervisors Follow directives or none as in case of machines or set objectives Day to day Engineered- Existence of objective standard against which actuals can be compared makes control easier. Management control On entire organisation Integrated, more internal and historical, more accurate

c) Persons involved d) Mental activity

Line and top management Administrative, persuasive

e) Time horizon f) Type of cost

Tends to be short Discretionary- Control is more difficult due to subjective consideration.