Managemt Control Systems - Summary

In: Business and Management

Submitted By imallex
Words 928
Pages 4
Management controls are about influencing human behavior

Result control (USA)
Check results to make sure that employees make right results

Performance measurement: * Financial * Non-financial
* Extrinsic * Intrinsic

Elements of result controls * Empowerment & decentralization * Performance indicators & targets * Consequences of own actions and decisions * Rewards * Manu organizational levels: alignment

Conditions for effective results controls: * Determine & communicate what results are desired in the areas being controlled * Employees have significant influence on results * Results can be measured

Action control
Check all the actions to make sure that employees make right actions

Behavioral constraints (physical, administrative passwords)
Action accountability (procedures, policies, codes, professional judgement)
Preaction reviews (budgets, investments, huge contracts)
Redundancy (4 eyes principle, back up systems: high risks complex decisions)

* Be able to determine what actions are (un)desirable * Be able to ensure that the (un)desirable actions (do not) occur

Personnel control
Put the right people on the right place
The game is important
Check the working process

Selection & placement
Job design

Cultural control
Influence the culture of the company
To make good cultural perform

* Codes of conduct * Group rewards * Employee rotations * Physical & social arrangements * Tone at the top

What is the main benefit of the MCS
More likely that organizational objectiveS will be achieved

Conditions for TIGHT results controls:
•Measured result should be congruent (with overall organizational objectives)
•Use of adequate performance measures (precise, objective, timely, understandable)
•Incentives are directly and definitely linked to the accomplished results…...

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