An

Introduction
to
Management Control
Systems
Prof. GURU PRASAD
FACULTY MEMBER
INC GUNTUR
pgp4149@gmail.com
 Define.....
Management Control is a process by
which managers influence other
members of an organization to
implement organizations strategies.
or
Control System is a set of formal
and informal systems to assist the
management in progress of the
goals of an organization.
 Main Concern....
 Coordination
 Resource Allocation
 Motivation
 Performance Measurement
 Main purpose....
 To assist management in the
coordination of the activities of the
organization
 Steering of those activities towards
the achievement of firm’s overall
purpose, goals and objectives.
 Main functions....
 Planning
 Coordinating
 Communicating through hierarchical
structure
 Evaluating info.
 Influencing change reqd.
 Domain.....
 Strategic planning
 Management Control
 Task Control
 Control of strategy
 Control of operations
 Types.....
 Formal
 Informal
 Formal Control System
 Itincludes the policies and
procedures followed by an
organization. It includes plans,
budgets, etc. It has following
subsystems-
Management style and culture of an
organization.
Infrastructure.
Rewards
Coordination and Integration.
Control Process.
 Informal Control System
It is concerned mainly with behavior
of employees.
It includes
 Recognition and rewards.
 Informal coordinating mechanism
 Style and structure.
Subsystems and Components
 Style
and Culture
 Formal and Informal Control Processes
 Planning Process
 Reporting Process
 Infrastructure
 Structure
 Patterns of Autonomy
 Rewards-Monetary, Non-monetary.
 Coordination and integration mechanisms
 Committees-Strategic and Operational
 Conferences.