PROJECT REPORT

ON
MANAGEMENT CONTROL SYSTEM
Project submitted in partial fulfilment of the Requirement for the award of the degree
of
“MASTER OF BUSINESS ADMINISTRATION”
(FINANCE)
(OSMANIA UNIVERSITY)

BY
SAMEERA
ENROLLMENT:NO: 143-00-1826

Under The Guidance Of

DR.D. SAMEER
PROF . G . RAM REDDY CENTRE FOR
DISTANCE EDUCATION
OSMANIA UNIVERSITY

HYDERABAD -500007

2008-2011
 ACKNOWLEDGEMENT

At the outset, I would like to express my gratitude to permitting me to

take up this project at ACCESS INFOTECH .

I owe my special thanks to Mr. MAHMOOD, Branch Manager, for

providing me all the facilities and guiding me wherever necessary.

My sincere thanks to my guide and faculty member DR. D.

SAMEER faculty and internal guide, DEPARTMENT OF BUSINESS
MANAGEMENT, OSMANIA UNIVERSITY for his kind cooperation, as
a guide and mentor, helped me in completing my project work.

I am grateful to my parents and all my friends for their help and

co-operation.

PLACE :
DATE :

SAMEERA
 DECLARATION
I hereby declare that this PROJECT
REPORT submitted by me to the PGRRCDE,
O.U, HYDERABAD, is a bonafide work
undertaken by me and it is not submitted to any
other university or institution for the award of any
degree diploma / certificate or published any time
before.

Name and Address of the student Signature of the Student

 COMPANY
CERTIFICATE
This is to inform that MS. SAMEERA belongs to PROF .
G . RAM REDDY CENTRE FOR DISTANCE EDUCATION affiliated
to OSMANIA UNIVERSITY with H.T No: 143-00-1826 has completed
her project work on "MANAGEMENT CONTROL SYSTEM" at our
ACCESS INFOTECH COMPUTER TRAINING CENTRE Branch
BEGUM BAZAAR under guidance of Mr. MAHMOOD for the period
of 25-06-2011 to 25-07-2011, during this period her conduct is good and
satisfactory.

WE WISH HER ALL THE BEST IN HER FUTURE AND ENDEAVOR.

SIGNATURE OF THE DIRECTOR

 CERTIFICATE
This is to certify that the project report titled
“MANAGEMENT CONTROL SYSTEM”
submitted in Partial fulfilment for the award of
MBA Programme of PGRRCDE O.U.
HYDERABAD, was carried out by
DR.D.SAMEER under my guidance.

Name and Address of the Guide Signature of the Guide

 CONTENTS
TABLE OF CONTENT

A Project Report on MANAGEMENT CONTROL SYSTEM

SR. No. TOPIC PAGE NO.

INTRODUCTION OF RESEARCH TOPIC

• Introduction of Management Control System

CHAPTER • Meaning of Management Control System
1 - 18
І • Definition of Management Control System
• Objectives of the Study
• Limitations of the Study
• Scope of the Study
RESEARCH METHODOLOGY
CHAPTER
19 - 22
ІІ • Research Method
• Source of Data
THEORETICAL FRAMEWORK

• Features of Management Control System

• Purpose and Importance of Management
Control System
• Characteristics and activity of Management
Control System
CHAPTER
• Fundamentals and Concept of
ІІІ 23 - 41
Management Control System
• Designing and Elements of
Management Control System
• Boundaries of Management Control
System
• Process of Management Control
System
CHAPTER
ІV COMPANY PROFILE
42 - 44

CHAPTER
45 - 55
V RESEARCH DATA ANALYSIS &
INTERPRETATION

CHAPTER
VІ
FINDINGS OF THE STUDY 56 -57

CHAPTER
CONCLUSION 58 - 61
VІІ

CHAPTER
VІІІ (A) 62 - 63
SUGGESTIONS

VІІІ (B)
RECOMMENDATIONS & BIBLIOGRAPHY 64 - 67
 CHAPTER
І

INTRODUCTION
OF
RESEARCH
TOPIC
INTRODUCTION
OF
MANAGEMENT
CONTROL
SYSTEM
INTRODUCTION OF MANAGEMENT
CONTROL SYSTEM

 A MANAGEMENT CONTROL SYSTEM (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,
MANAGEMENT CONTROL SYSTEM influences the
behavior of organizational resources to implement
organizational strategies. MANAGEMENT CONTROL
SYSTEM might be formal or informal.

 MANAGEMENT CONTROL SYSTEM Is the process of

evaluating, monitoring and controlling the various sub-units of
the organization so that there is effective and efficient allocation
and utilization of resources in achieving the predetermined
goals.

 MANAGEMENT CONTROL SYSTEM is concerned with

o Coordination,
o Resource allocation,
o Motivation and performance measurement.
 MEANING
OF
MANAGEMENT
CONTROL
SYSTEM
 MEANING OF MANAGEMENT
CONTROL SYSTEM
 A MANAGEMENT CONTROL SYSTEM is a
means of gathering and using information.
 MANAGEMENT CONTROL SYSTEM guides the
behavior of managers and employees.
 MANAGEMENT CONTROL SYSTEM is defined a
‘set of policies and procedures designed to keep
operations going according to plan”.
 MANAGEMENT CONTROL SYSTEM is Useful and
simple perspective.
 MANAGEMENT CONTROL SYSTEM exists either
formally but more often informally and empirically.

Financial data

Nonfinancial data

Formal control system

Informal control system

 MANAGEMENT CONTROL
SYSTEM
This ia a logical integration of
techniques for gathering and using

Motivating

Planning Evaluatin
and g
control

MANAGEMENT CONTROL
SYSTEM A: set
Goals

Set
goals,
D: B:
Feedback
Evaluate Plan

C:
Monitor
DEFINITION
OF
MANAGEMENT
CONTROL
SYSTEM
 DEFINITION OF MANAGEMENT
CONTROL SYSTEM
 According to ROBERT. N. ANTHONY (1965) defined
MANAGEMENT CONTROL SYSTEM is the process by
which managers influence other members of the
organization to implement the organizations strategies.
Management control systems are tools to aid management
for steering an organization toward its strategic objectives
and competitive advantage. Management controls are only
one of the tools which managers use in implementing
desired strategies. However strategies get implemented
through management controls, organizational structure,
human resources management and culture.
 According to SIMONS (1995), MANAGEMENT CONTROL
SYSTEM are the formal, information-based routines and
procedures managers use to maintain or alter patterns in
organizational activities.
 According to MACIARIELLO ET AL . (1994),
MANAGEMENT CONTROL SYSTEM is concerned with
coordination, resource allocation, motivation, and performance
measurement. The practice of management control and the
design of management control systems draws upon a number of
academic disciplines. Management control involves extensive
measurement and it is therefore related to and requires
contributions from accounting especially management
accounting. Second, it involves resource allocation decisions
and is therefore related to and requires contribution from
economics especially managerial economics. Third, it involves
communication, and motivation which means it is related to and
 must draw contributions from social psychology especially
organizational behavior.
 MANAGEMENT CONTROL SYSTEM discusses the
control systems that are required for effective managerial
performance. A well designed and implemented control system
helps managers take effective and timely decisions.

Such a system requires the involvement of all the functions of

management. In other words, a management control system is inter-
disciplinary in nature. MCS influences the behavior of
organizational resources to implement organizational strategies.
MCS might be formal or informal.

The purpose of a management control system is to help the

management of an organization coordinate and steer activities
towards the achievement of the firm's objective.
OBJECTIVES
OF
MANAGEMENT
CONTROL
SYSTEM
 OBJECTIVES OF MANAGEMENT
CONTROL SYSTEM
The main objective of MANAGEMENT CONTROL
SYSTEM is to enable you to appreciate the strategic
significance of control systems. The objectives include:

 To facilitate the development of a personalized approach to

the analysis of multifunctional organizational problems.

 To develop students' capacity to think strategically about

the implementation issues in an orgnisation and how MCS
is an important component of execution,

 To build students' skills in conducting strategic analyses in

a variety of business and organizational context and provide
them a stronger understanding of the competitive challenges
of a Changing global market environment;

 To give students hands-on experience in developing and

evaluating management control options and figuring out
how to implement them effectively.

 Our understanding of management controls as human

activity/social systems and the role of social constraint;

 Social theory especially relations between human agency and

social structure, and emergence within social reality; and

 At a methodological level, by developing a critical realist

approach to the study of management controls.

 Finding out why a certain thing is happening.

 Comparisions.
 Increase the efficiency.

 Decide corrective actions.

 Co-ordinations.

 The main of objective of management is to achieve the

strategic goal through effective and efficient utilisation of
resource.

 Our understanding of MANAGEMENT CONTROL

SYSTEM as human activity / social systems and the role of
social constraint;

 Social theory especially relations between human agency

and social structure, and emergence within social reality.
LIMITATIONS
OF
MANAGEMENT
CONTROL
SYSTEM
 LIMITATIONS OF MANAGEMENT
CONTROL SYSTEM
No system of controls can be an absolute guarantee against the
risk of wrongdoing or honest error. Any system that attempted
to reach that goal, especially in a complex organization, would
impose costs far out of proportion to the risks and create
rigidities for the organization. Thus the proper goal of the control
system should be to provide “reasonable assurance’ that
improprieties will not occur or that if they occur, they will be
revealed and will be reported to the appropriate authorities. With
this in mind, managers should be aware of certain risks involved
in building and maintaining management control systems.

DESIGN FLAWS: It has been stressed that management control

systems must be designed for the specific organization,
operations, and environment in which they will function, after
careful consideration of the risks involved in that particular
situation.

POOR RESPONSE TO REPORTED ANOMALIES: Control

systems are designed to callattention to events that depart from
normal expectations. For the systems to remain effective, it is
essential that supervisors and managers respond properly to
such alerts.

COLLUSION: Any system of controls can be defeated if a

sufficient number of dishonest key individuals conspire to
subvert them and are able to falsify the relevant documents.
WRONGDOING BY TOP MANAGERS: Management
controls are designed to help control the
organization on behalf of its management, not to
control the top managers themselves.

 Study is based on the availability of secondary data.

 Since there was a time limitation for carrying out the study of
some other schemes in Mutual Funds.

 Suggestions are only suggestive in nature.

 The study is limited to OPEN-ENDED Schemes.
 SCOPE
OF
MANAGEMENT
CONTROL
SYSTEM
SCOPE OF MANAGEMENT CONTROL
SYSTEM
A MANAGEMENT CONTROL SYSTEM is an important process in
which accounting information is used to accomplish the organizations
objectives.Therefore the scope of MANAGEMENT CONTROL
SYSTEM is very wide which covers a very wide range of
management activities.
POLICIES CONTROL: Success if a business depends on
formulation of sound policies and their proper implemention.
CONTROL OVER ORGANIZATION: It involves designing and
organizing the various departments for the smooth running of the
business.It attempts to remove the causes of such friction and
rationalizes the organizational structure as and when the need arises.
CONTROL OVER PERSONNEL: Anything that the business
accomplishes is the result of the action of those people who work in
organization. It is the people,and not the figures, that get things done.
CONTROL OVER COSTS: The cost accountant is responsible to
control cost sets, cost standards, labour materials and overheads. He
makes comparisons of actual cost data with standard cost. Cost
control is a delicate task and is supplemented by budgetary control
system.
CONTROL OVER TECHNIQUES: It involves the use of best
methods and techniques so as to eliminate all wastages in time ,
energy and material. The task is accomplished by periodic analysis
and checking of activities of each department with a view to avoid an
eliminate all non-essential motions,functions and methods.
CONTROL OVER EXPENDITURE: Capital budget is prepared
for the whole concern. Every project is evaluated in terms if the
advantage it accrues to the firm. For this purpose capital budgeting,
project analysis, study of cost of capital etc are carried out.
OVERALL CONTROL: A master plan is prepared for overall
controls and all the departments of the concern are involved in this
procedure.
CHAPTER
ІІ

RESEARCH
METHODOLOGY
 RESEARCH METHODS
OBJECTIVES:
 To examine the effectiveness of training in overall development
of skills of workforce.

 To examine the impact of training on the employees.

 To measure the differential change in output due to training.

RESEARCH DESIGN
Research Design refers to "framework or plan for a study that
guides the collection and analysis of data". A typical research
design of a company basically tries to resolve the following
issues:
A) Determining Data Collection Design.
B) Determining Data Methods.
C) Determining Data Sources.
D) Determining Primary Data Collection Methods.
E) Developing Questionnaires.
F) Determining Sampling Plan.

SAMPLING PLAN
SAMPLE SIZE = 50 EMPLOYEES
DURATION = ONE MONTH
SOURCE
OF
DATA
 SOURCE OF DATA
A) Primary Data through Questionnaires.
B) Secondary Data through Internet,Magazine,and Website.

A) PRIMARY DATA:
Primary data collection is necessary when a researcher cannot find
the data needed in secondary sources. Market researchers are
interested in primary data about demographic/socioeconomic
characteristics, attitudes/opinions/interests, awareness/knowledge,
intentions, motivation, and behavior. Three basic means of
obtaining primary data are observation, surveys, and experiments.
The choice will be influenced by the nature of the problem and by
the availability of time and money .
B) SECONDARY DATA:

Secondary data is the data that have been already collected by and

readily available from other sources. Such data are cheaper and

more quickly obtainable than the primary data and also may be

available when primary data can not be obtained at all.

CHAPTER
ІІІ

THEORETICAL
FRAMEWORK
 THEORETICAL FRAMEWORK
The first is to synthesize the current state-of-the-art with respect to
Management Control Systems, pulling together what we perceive to
be some of the existing concepts into a framework which we suggest
is useful in identifying gaps in our current understanding. The second
is to use the framework to suggest directions in which control systems
might be modified to increase their effectiveness.

The process of control and the application of control system concepts

to Management Control has been talked about and discussed at great
length in the literature over the previous twenty years. In its practical
form control in organizations today is synonymous with financial
control and in particular budgets and the budgeting process. This will
continue to be extremely important for all organizations. However, it
is apparent from the recent increase in pressure from outside the
organization that ones view of control systems will have to be
modified if organizations are to continue to run effectively. There is
already sample evidence of this shift in the control practices of many
organizations and we think we discern three major areas in which
these changes are taking place.

The need for control systems to be modified to reflect the increasing

complexity of the organization's structure because of the evolution
of more traditional organizational patterns, such as divisionalized
organizations, into say multidimensional structures.
 FEATURES
OF
MANAGEMENT
CONTROL
SYSTEM
 FEATURES OF MANAGEMENT
CONTROL SYSTEM
MANAGEMENT CONTROL SYSTEM is a process of assuming that
resource are obtained and used effectively and efficiently in the
accomplishment of the organization’s objective. It is a fundamental
necessity for the success of the business and hence from time to time
the current performance of the various operation is compared to a
predetermined standard or ideal performance and in case of variance
remedial measures are adopted to confirm operations to set plan or
policy.
Some of the features of MANAGEMENT CONTROL SYSTEM
are as follows:
TOTAL SYSTEM: MANAGEMENT CONTROL SYSTEM is an
overall process of the enterprise which aims to fit together the
separate plan for various segments as to assume that each harmonizes
with the others and that the aggregate effect of all of them on the
whole enterprise is satisfactory.
MONETARY STANDARD: MANAGEMENT CONTROL
SYSTEM is built around a financial structure and all the resources
and outputs are expressed in terms of money. The result of each
responsibility centre in respect to production and resources are
expressed in terms of a common denominator of money.
DEFINITE PATTERN: MANAGEMENT CONTROL SYSTEM
follows a definite pattern and time table. The whole operational
activity is regular and rhythmic. It is a continuous process even if the
plans are changed in the light of experience or technology.
COORDINATED SYSTEM: MANAGEMENT CONTROL
SYSTEM is a fully coordinated and integrated system.
EMPHASIS: MANAGEMENT CONTROL SYSTEM require
emphasis both on the search for planning as well as control. Both
should go hand in hand to achieve the best results.
FUNCTION OF EVERY MANAGER: Manager at entry level as to
focus towards future operational and accounting data, taking into
consideration on past performance, present trends and anticipated
economic and technological changes. The nature, scope and level of
control will be governed by the level of manager exercising it.
EXISTENCE OF GOALS AND PLANS: MANAGEMENT
CONTROL SYSTEM is not possible without predetermined goals
and plans. These two provide a link between such future anticipations
and actual performance.
FORWARD LOOKING: MANAGEMENT CONTROL SYSTEM
is on the basis of evaluation of past performance that the future plans
or guidelines can be laid down. MANAGEMENT CONTROL
SYSTEM involves managing the overall activity of the enterprise for
the future. It prevents deviations in operational goals.
CONTINUOUS PROCESS: It is a continuous process over the
Human and Material Resource. It demands vigilance at every step.
Deciding, Planning and regulating the activities of people associated
in the common task of attaining the objectives of the organization is
the Primary aim of MANAGEMENT CONTROL SYSTEM.
PEOPLE ORIENTED: It is the Managers, Engineers and Operators
which implement the ideas and objectives of the management. The
coordination of the main division of an organization helps in
smoother operations and less friction which results in the achievement
of the predetermined objectives.
 PURPOSE
AND
IMPORTANCE
OF
MANAGEMENT
CONTROL
SYSTEM

PURPOSE OF MANAGEMENT
CONTROL SYSTEM
 Clearly communicate the organization’s goals.

 Ensure that every manager and employee understands the

specific actions required of him/her to achieve organizational
goals .

 Communicate the results of actions across the organization.

 Ensure that the management control system adjusts to changes

in the Environment.

IMPORTANCE OF MANAGEMENT
CONTROL SYSTEM
 Designing an optimal MANAGEMENT CONTROL SYSTEM
is important for an effectivess and long term sustainability of an
organization.
 Low degree of control can result in chaos and confusion.
 Tight control system may erode creativity and entrepreneurship.
 A good fit in MANAGEMENT CONTROL SYSTEM arises
when controls are used in right balance to promote efficacy and
learning.
 It fits with internal environment in the best manner.
 It should also fit with external environment .It should allow
the organization in preparing the organization for the
future face the changes in the environment.
CHARACTERISTIC
AND
ACTIVITY
OF
MANAGEMENT
CONTROL
SYSTEM
 CHARACTERISTICS OF
MANAGEMENT CONTROL SYSTEM
 Focuses on programs and responsibility centers.
 Relies on two types of information viz. planned data and actual data.
 Aims at assuring that all aspects are in balance and are operating
in close co-ordination.
 Built around financial structures.
 Follows a definite pattern and time schedule.
 Co-coordinated and integrated to other subsystems.

MANAGEMENT CONTROL SYSTEM

ACTIVITY
 Planning what the organisation should do.
 Coordinating the activity of several parts of the organisation.
 Communicating information.
 Evaluating information.
 Deciding what, if any , action should be taken.
 Influencing people to change their behavior.
FUNDAMENTALS
AND
CONCEPT
OF
MANAGEMENT
CONTROL
SYSTEM
FUNDAMENTALS OF MANAGEMENT
CONTROL SYSTEM
First, planning and control are the two
most closely interrelated management
functions.
Second, the human side of the control
process needs to be stressed as much as, if
not more than, the tasks or 'numbers
crunching' side.
 Finally, evaluating, coaching, and rewarding
are more effective in the long term than
measuring, comparing, and pressuring or
penalizing.

CONCEPT OF MANAGEMENT
CONTROL SYSTEM
 Ensure that Resources are mobilised and deployed efficiently and
effectively.
 Methods and procedures adopted by management to provide reasonable
assurance that available resources and assets are properly deployed and
safe guarded against waste, mismanagement and frauds.
 Management control covers the administrative, accounting and
financial management areas.
 DESIGNING
AND
ELEMENTS
OF
MANAGEMENT
CONTROL
SYSTEM
 DESIGNING OF MANAGEMENT
CONTROL SYSTEM

Step 1: Setting Performance Standards.

Step 2: Measure actual results.

Step 3: Evaluate results, give feedback and coach.

Step 4: Take corrective action.

ELEMENTS OF MANAGEMENT
CONTROL SYSTEM
STRATEGIC PLANNING

BUDGETING

RESOURCE ALLOCATION

PERFORMANCE
MEASUREMENT

EVALUATION AND REWARD

RESPONSIBILITY CENTRE
ALLOCATION
TRANSFER PRICING
 BOUNDARIES
OF
MANAGEMENT
CONTROL
SYSTEM

BOUNDARIES OF MANAGEMENT
CONTROL SYSTEM
STRATEGY
GOALS, STRATEGIES AND
FORMULAT
ION
POLICIES

MANAGEM
IMPLEMENTATION OF
ENT
CONTROL
STRATEGIES

TASK EFFICIENT AND

CONTROL EFFECTIVE/PERFORMANCE OF
INDIVIDUAL TASK
 PROCESS
OF
MANAGEMENT
CONTROL
SYSTEM

PROCESS OF MANAGEMENT
CONTROL SYSTEM
 IDENTIFY GOALS, ROLES AND
RESPONSIBILITY

ESTABLISH STANDARDS

PROCESS OF MEASURE PERFORMANCE

MANAGEMENT
CONTROL
COMPARE TO STANDARDS
SYSTEM

TAKE CORRECTIVE ACTIVE

NEED
 FOR
MANAGEMENT
CONTROL
SYSTEM

NEED FOR MANAGEMENT CONTROL

SYSTEM
 To clearly communicate the organization’s goal;

 To ensure that managers and employees understand the

specific actions required of them to achieve organizational
goals;

 To communicate results of actions across the organization;

and
 To ensure that the MANAGEMENT CONTROL SYSTEM
adjusts to changes in the environment.

CHAPTER
ІV
COMPANY
PROFILE

INTRODUCTION OF COMPANY
o ACCESS INFOTECH is an Information Technology
company which provides technology solutions to a
wide spectrum of customers across India, spanning a
range of verticals – Banking & Insurance,
Manufacturing, Contracting, Retail & Distribution and
Government.

o ACCESS INFOTECH is a proactive organization,

specializing in customized software development, web
 development & website design with interactive flash &
multimedia animation. This is a new generation
business consulting firm that partners with clients to
achieve break through performance. We provide a wide
range of consulting services, from defining strategy to
implementing solutions.

o ACCESS INFOTECH offers a comprehensive range

of software and IT solutions, including packaged
applications for the , Manufacturing, Contracting, and
Retail & Distribution industries. In addition, it offers a
broad range of software services such as Custom
Software Development, IT Consulting, Enterprise
Application Integration (EAI), Managed IT Service,
among others.

 We are a software development company providing services

to many industries including Central and state government
offices, Educational Institutions.

 ACCESS INFOTECH is committed to maintain 100% students

satisfaction by certain values

 Precious Timekeeping & Highest level of Accuracy

 Potential Leadership with an Energetic Team
 Sufficient Infrastructure for anytime Expansion
 Continuous Growth & 100% Success
CHAPTER
V
 RESEARCH
DATA
ANALYSIS
&
INTERPRETATION
DATA ANALYSIS AND
INTERPRETATION
Data interpretation can be defined as applying statistical procedures to
analyze specific facts from a study or body of research. Data
interpretation questions are a part of many standardized tests.

The data thus collected through questionnaires are interpreted and

analyzed. The data collected through questionnaires are tabulated and
analyzed by using the following statistical tools like percentage
method, charts method (i.e. pie & bar)
  Percentage method
 Charts method (i.e. pie & bar)

TRAINING PROGRAMME ATTENDED IN LAST ONE

YEAR IN ORGANISATION

RESPONSE NO.OF.RESPONDENTS PERCENTAGE

Less Than 10 24 48
10-20 16 32
20-40 6 12
 More Than 40 4 8

SAMPLE SIZE – 50 EMPLOYEES

The above chart indicates that 48% of employee’s have attended less
than 10 training programmes whereas 32 % of employee’s have
attended .10-20 training programmes, it means in every MONTH
there was 1 training programme attended in the organization in last
ONE YEAR.

ORGANISATION
CONSIDERS TRAINING AS A PART
OF ORGANIZATIONAL STRATEGY

RESPONSE NO.OF.RESPONDENTS PERCENTAGE

Strongly Agree 23 46
Agree 14 28
 Partly Agree 10 20
Can’t Say 3 6

The above graph indicates that 74% of employee’s are agreed that
training is a part of organizational strategy.

TO WHOM TRAINING IS GIVEN

MORE IN ORGANIZATION

RESPONSE NO.OF.RESPONDENTS PERCENTAGE

Senior Staff 5 10
Junior Staff 10 20
New Staff 10 20
Based On 25 50
Requirement
The above graph indicates that 50% of employees felt that training is
given mostly on the basis of requirement whereas, 20% of employees
felt that it is given to junior and new staffs.

THE MOST IMPORTANT BARRIER TO

TRAINING AND DEVELOPMENT
PROGRAMME IN ORGANISATION

RESPONSE NO.OF.RESPONDENTS PERCENTAGE

Time 10 20
Money 8 16
Lack Of Interest By 12 24
The Trainees
Non-Availability Of 20 40
Skilled Trainer
The above graph indicates that 40 % of employees felt that, most
important barrier to Training and Development in the organization is
Non-availability of skilled trainers whereas, time and lack of interest
by the trainees are also a barrier to Training and Development
programme.

MODE OF TRAINING METHODS IS

NORMALLY USED IN ORGANISATION

RESPONSE NO.OF.RESPONDENTS PERCENTAGE

Job Rotation 7 14
External Training 13 26
Conference/Discussion 10 20
Programmed 18 36
Instructions
Others 2 4
The above graph indicates that 36% of employee’s felt that
programmed instruction is mostly used in the organization
whereas,external training and conference/discussions are also used in
the organization. It means that these 3 programmes are mostly used
by the organization.

TYPE OF TRAINING IS BEING

IMPARTED FOR NEW
RECRUITMENTS IN ORGANISATION

RESPONSE NO.OF.RESPONDENTS PERCENTAGE

Technical Training 15 30
Management 9 18
Training
Presentation Skills 10 20
Induction Training 12 24
Others 4 18
The above graph indicates that 30% of employees felt that technical
training is the most important training which is being imparted for
new recruitments in the organization ,it means that the organization is
insisting more on technical training.

TIME DURATION GIVEN FOR THE

TRAINING PERIOD IN
ORGANISATION

RESPONSE NO.OF.RESPONDENTS PERCENTAGE

Sufficient 28 56
To Be Extended 4 8
To Be Shortened 12 24
Manageable 6 12
The above pie chart shows that 56% of employees felt that time
duration for a training programme is sufficient whereas 24%
of employee’s felt that ,it should be shortened.

ORGANISATION TRAINING
PROGRAMME HELP CAREER
ADVANCEMENT

RESPONSE NO.OF.RESPONDENTS PERCENTAGE

Strongly Agree 23 46
Agree 19 38
Neutral 6 12
Disagree 2 4
The above graph shows that 84% of employee’s are agreed that
training programmes helps in their career advancement.It means
training programmes are helpful in career advancement also.

TIME TAKEN TO IMPLEMENT THE

TRAINED PROCESS IN
ORGANISATION

RESPONSE NO.OF.RESPONDENTS PERCENTAGE

Less Than 1 Month 20 40
1-2 Month 15 30
2-4 Months 12 24
More Than 4 3 6
Months
The above graph indicates that 40% of employees felt that the
organization takes less than 1 month to implement the trained process.

CHAPTER
VІ
 FINDINGS
OF
THE STUDY

FINDINGS OF THE

The findings of the study reveals that ACCESS INFOTECH

LIMITED has a wide range of Training & Development programmes
which helps the employees to develop their skills and give the
standard performance. ACCESS INFOTECH LIMITED also gives
rewards and promotions on a regular basis so that the employee’s can
achieve their personal goals as well as organizational goals.

 92% of Employees are satisfied with ACCESS INFOTECH

LIMITED.

 81% of Employees are experienced with ACCESS

INFOTECH LIMITED.

 56% of Employees are spending 1-2 Hours with Internet.

 58% of Employees got information About ACCESS
INFOTECH LIMITED through
Newspaper,Internet,Magazines ,Pamplets.

CHAPTER
VІІ

CONCLUSION
 CONCLUSIONS
In this article we have introduced the concept of management control
based on the need for all organisations to avail of the processes and
mechanisms that enable them to create the most favourable conditions
for these organisations to attain their objectives, while at the same
time ensuring an effective and efficient use of their resources.
The management control system seeks to orient in the decision-
making process and influence the behaviour of the organisation
members so that their performance increases its chances of achieving
its objectives. Throughout the exposition developed in this article it
has been seen that the theories on management control in
organisations have gradually evolved as new internal and external
variables have been considered that could affect an organisation’s
performance. It may be considered that this development has been the
result of society’s transformation, of market changes and
internationalisation, and increased competition in many sectors.
Initially, we have looked at mechanistic and formal control systems,
which include the classic theories and contingency theory.
The classic theories are based on the scientific and rational view of
the companies, of management systems and on the scientific
organisation of the work, premises under which it is assumed that
employees are passive subjects whose performance may be totally
controlled by formal mechanisms.
Contingency theory is based on the premise that no control system is
applicable to all organisations and all circumstances, but rather that it
depends on each organisation’s specific circumstances, whether in
relation to its environment, technology used, type of organisational
structure, competition, management style, etc. Furthermore, it has
been proven that mechanistic systems are characterised by clearly
established objectives and measurable outputs, so that the latter are
compared with the established objectives for the taking of appropriate
corrective actions.
The chief limitation of mechanistic and formal control systems is that,
while they are applicable to organisations performing mechanistic and
repetitive activities, they are difficult to adapt to changes in the
environment and do not take the psychosocial aspects of individuals
into account. In order to surpass the limitations of mechanistic
systems, approaches have to be developed in which the passive,
rational behaviour of individuals is substituted by a greater
consideration for the organisational and motivational factors that
influence behaviour, accepting that the crucial aspects for the design
and implementation of the control systems are not limited solely to
those of a formal nature. Control systems based on psychosocial
mechanisms include trends based on human relations, human
information processing and open systems theory. The trend that has
researched into human relations has more deeply examined the
analysis of the effects of individuals’ behaviour on the design of the
control system, considering that people are moved not only by
financial motivations but also by the satisfaction of other needs. The
trend centred on human information processing introduces the
variable of decision-making by the management in the design of the
control system. And too, the open systems 50 theory relates the
control system with the environment and analyses the need for the
ongoing adaptation of the control system to environmental changes.
Finally, a line of research has been developed which has emphasised
the organisation’s cultural and anthropological aspects as part of its
control system, either as an internal variable that conditions the
behaviour of individuals, their relationships and their motivation, or
else as a metaphor, in other words an ideology that must be
transmitted and communicated to individuals. All of these research
trends view culture as a key factor in ensuring the efficiency of
control systems, since this variable contributes to the identification of
the individuals with the organisation’s objectives, thus facilitating
their achievement.
Likewise, we have succeeded in proving that accounting information
has at all times been oriented towards facilitating decision-making by
its users and that it provides a language capable of including all areas
of the organisation; it constitutes an important boost to the
development of management control systems, even though today it is
accepted that, in addition to the formal aspects of the accounting
information system, it is vital to consider the effect of psychosocial
and cultural aspects.
In other words, the current trend is to combine the use of formal
systems, having quantitative and qualitative indicators, with informal
systems, because it is considered that through the sole use of
mechanistic systems it is impossible to control the relevant variables
for an organisation to achieve its objectives.
CHAPTER
VІІІ (A)

SUGGESTIONS
 SUGGESTIONS
 Complaints should be received from the employees and
appropriate actions should be taken.

 Pricing aspects: you can explain your features by comparing to

other like:
A)Computers.
B) A/C Rooms.
C) Internet Accessing Speed.
D)Special Packages.
E) All at one Place means urgent Printing,Scanning etc.

 Steps should be taken to reduce the fee charges.

 Steps should be taken to provide some discounts.

 Privacy needed to the employees.

 Some more guides are required to engage the employee

problems.
CHAPTER
VІІІ (B)

RECOMMENDATION
AND
BIBLIOGRAPHY
 RECOMMENDATIONS
The first recommendation for any training program development is
that it be focused on very specific themes or skills and knowledge
gaps as identified by an organization. This training should also be
deliverable in a very short period of time not to exceed three days.
Organizations are expressing very strong opinions that any structured
training for staff must be timely.

We recommend ongoing evaluation and needs assessment for faculty

development.

A lifelong learning approach should be adopted to training and

development in An ACCESS INFOTECH LIMITED. It is
recommended that a continuum of training be developed along which
ACCESS INFOTECH LIMITED will progress throughout their
career. This training aims to equip members of An ACCESS
INFOTECH LIMITED with the skills, knowledge and behaviour
required to improve the service delivery provided by the organisation
to the public. It is proposed that training should advance personal
development, thereby improving personal and organisational
performance. Regardless of rank or career path, training and
development should be a continuous progression throughout a career
in An ACCESS INFOTECH LIMITED.
BIBLIOGRAPHY
 BIBLIOGRAPHY
REFERENCES:
The Following are the References made during the
development of this project work.

TEXT BOOKS:

“MANAGEMENT CONTROL SYSTEM” by KENNETH A.

MERCHANT and WIM A. VAN DER STEDE (2ND Edition
Printice Hall,2007).

“MANAGEMENT CONTROL SYSTEM” by ROBERT

ANTHONY and GOVINDRAJAN (Tata –McGraw- Hill/11th /12
Edition).

“MANAGEMENT CONTROL SYSTEM” by N.GHOSH and

(Paperback Edition).

“MANAGEMENT CONTROL SYSTEM” by R.S. AURORA and

S.R.KALE.

“MANAGEMENT CONTROL SYSTEM” by GAUTHAM

PHERWANI.

WEBSITES:

 www.google.com
 www.yahoo.com
 www.wikipedia.com

THANKING
YOU
 Success is getting what you
want. Happiness is
wanting what you get.
Dale Carnegie .
 Knowledge speaks, but
wisdom listens. Jimi
Hendrix.