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01 - The Nature of Management Control Systems
01 - The Nature of Management Control Systems
The Nature of
Management Control Systems
BASIC CONCEPTS
Control
An assessor (penilai)
An effector (umpan balik)
A communications network (jaringan
komunikasi)
2. Assessor. Comparison
with standard.
3. Effector. Behavior
alteration, if needed
Entity
being
controlled
Controlling Examples
Thermostat
A thermometer
An assessor
An affector
A communication network
Body temperature
Controlling Examples
Automobile driver
Eyes (detector)
Brain (assessor)
Foot (affector)
Nerves (communication network)
Eyes
Brain
Foot
Management
CEO
Managers of business units
Managers of department
Managers of section
overall strategies
strategies
strategies
strategies
GOALS
5.
Systems
BOUNDARIES OF
MANAGEMENT CONTROL
Strategy formulation
Task control
Strategy
formulation
Management
control
Task
control
Implementation of strategies
Management Control
Planning
Coordinating
Communicating
Evaluating
Deciding
Influencing
Goal Congruence
Strategy
Human
Resource
Management
Organization
Structure
Culture
Performance
Continued
Interactive control
Todays
controls
Tomorrows
strategy
Strategy Formulation
Goals
the broad overall aims of an organization
Objectives
specific steps to accomplish the goals
within a given time frame.
Continued
Deciding on new
strategies.
Unsystematic.
Involves judgment.
The numbers used are
usually rough estimates.
Involves few people
(sponsor of the idea,
headquarters staff &
senior management).
Management Control
Implementing strategies
Systematic.
Involves a series of steps
that occur in a predictable
sequence.
Reliable estimates.
Involves managers &
their staffs at all level.
Task Control
Not scientific
Focus on specific
task
Relate to specific
task
Management
Control
Scientific
Organizational units
Concerned with
broadly defined
activities.
Management Control
Task Control
Acquire an unrelated
business
Expand a plant
Determine advertising
budget
Schedule production
Book TV commercials
Implement minority
recruitment program
Maintain personnel
records
Devise inventory
speculation policy
Reorder an item
Benefits of internet:
Instant access.
Multi-targeted communication.
Costless communication.
Ability to display images.
Shifting power & control to the individual.