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MCS Applying Org Architecture
MCS Applying Org Architecture
Applying Organization
Architecture
(The organization’s internal Structures)
“Good management control systems influence the behavior of managers and employees in a goal-congruent manner; that is, they ensure that
individual actions taken by managers and employees help to achieve the organization’s goals”
Centralize
Decentralize
Typical advantages include:
Ø Decentralization improves the quality of decision making at senior (higher) management levels. As decentralization
reduces senior management’s span of control, they may shift their attention from day-to-day operational issues to long-
term tactical and strategic issues.
Ø Decentralization improves the quality of decision making at junior (lower) management levels. Decentralization
empowers lower-level managers to make well-informed decisions quickly, which saves them the necessity of obtaining
authority for operational issues at higher management levels.
Ø Decentralization facilitates the increased economies of scale and specialization. Decentralized units can be dedicated to
the which may increase their local knowledge and innovation, and lead to optimal use of production resources.
Ø Decentralization supports management development. As decentralized organizations spread power and authority over a
large number of managers, these managers will engage in decision making early in their career. This gives these managers
an opportunity to develop the skills needed for senior positions, will enhance their motivation and creates a certain
amount of competition for higher positions. Decentralization also comes with freedom to try innovations, which also has
a positive effect on motivation and organizational commitment.
Some specific type of rules :
# Physical control
# Manuals
# Systems safeguards
# Task control systems
* Tight à ß Loose