Trisha M.

Nevera
ACMA181

1.Identify and discuss the causes of management control problems. (10 pts)
The cause of management control problems are lack of direction, motivational
problems, and personal limitations. For lack of direction, employees do not have a clear
direction since they do not know what the company wants from them. Meaning, they do not
know what they need to do since they do not have any idea on the expectation of the company.
For motivational problems, individual and the objectives of the company do not naturally
coincide. If there is lack of motivation, employees will not work consistently hard and might not
try to do what is expected from them in the best way that they can. Example of motivational
problems includes employee fraud and theft. And lastly, for personal limitations, this may be
caused by the company not providing training or giving knowledge about the task to their
employees. Also, this may be caused by the lack of intelligence and experience of the employees
about the task given. Through this, employees are not capable of doing what is expected from
them by the company.

2.Enumerate and explain control alternatives. (10 pts.)

Control alternatives are as follows:
 Action Controls
This ensure that the employees act or perform in a way that is beneficial to
the company. Also, it ensures that employees do not act in a way that will
harm the company. In here, managers must know what actions are
desirable for the company and must be able to make it occur. For
employees, they are held accountable for every action that they take. In
order to avoid making wrong actions, employees must have the knowledge
on work rules and codes of conduct and what actions are acceptable or not
acceptable

 Result Controls
This involves giving rewards for those employees who have provided
good results and also it involves giving punishment to those who have
provided poor results. In here, it influences actions since it causes
employees to think about the consequences of their actions. Though, they
are empowered to take whatever actions they like as long as it will
produce good results for the company. However, this is only useful only to
the extent that it provides information about the action that was taken.
Results measure must be precise, objective, timely, and understandable.
  People Controls
This ensure that employees control their own behaviors and other
employee’s behavior as well. In here, selection, training, and job design
are necessary since these pertains to finding the right people to do the job
and gives them a good and safe working environment while helping them
understand the job better and also by giving them all the necessary
equipment and support.

3. Discuss the four (4) steps in the implementation of result controls (10pts)
 Defining the performance dimensions
In here, if the performance is not aligned with the objectives of the
company, this will lead to employees to do mistakes or wrong actions. In
defining the performance dimension, it is important that it is congruent
with the objectives so that wrong actions will be avoided.

 Measuring performance on these dimensions

In here, measuring the performance is an important way of keeping track
on the progress of the company. This will give the information needed that
will help the company implement actions to yield good results that will
help the company to grow.
 Setting performance targets
This will enhance motivation to its employees, and they will be able to
assess their own performance. Setting performance targets will help
employees to have a clear vision on what they need to do or achieved.

 Providing rewards or punishments

In here, the company must provide rewards such as salary bonuses,
promotions, recognition and as well as job security to its employees. For
punishments, this might include suspension and deduction in salaries.

4. What are the conditions determining the effectiveness of results controls? Discuss. (10 pts)
 Managers must know what results are desirable in the areas of the company
that is being controlled.
In here the managers must identify the results which are desirable in some
areas. In order to do that, they must always align their goals and objectives
so that they can make actions that will produce results desirable for the
company.
 Individuals whose behavior are being controlled must have significant
influence on the results.
In here, employees whose behavior are controlled must be able to affect or
have an impact on the results in a certain period of time given. The effect
must be material for the company.

 Managers must be able to measure the results effectively.

It is the responsibility of the manager to measure the results, since it can
only be useful only to the extent that it provides information about the
actions that were taken. If the managers think that the results will be
uncontrollable, then it means that the result is meaningless. The manager
should also know that not all good actions will produce good results.