Management Control System - 1357 Words

Introduction Management control system (MCS), as a vital part of an organization, which purpose allows organizations to ensure that their activities achieve the objects they desire. The process of designing and improving MCSs requires addressing three basic questions. What is desired? What is likely to occur? And What is the effect of contextual factors ?Then managers must address each of these questions. What controls should be used? In recent years, contingency-based research has maintained its popularity with studies including these variables but redefining them in contemporary terms. This paper provides a critical review of findings from contingency-based studies over the past 20 years, deriving a series of propositions relating MCS†¦show more content†¦But the degree to which personnel and cultural controls are effective can vary significantly across individuals, groups, and societies. They also have limitation in addressing motivational problems. Personnel / cultural controls are sufficient only if the employees in the particular roles being considered understand what is required, are capable of performing well, and are motivated to perform well without additional rewards or punishments. The environmental uncertainty, It has been long established in the literature that the external environment exerts a strong influence on the design of MCS (Duncan, 1972; Fisher, 1996;Gordon Narayanan, 1984; Sharma, 2002). At a fundamental level the MCS is designed to address decision-makers informational needs, which are known to be influenced by the nature of the external environment. MCS are an instrument used by organizations to reduce uncertainty and insulate against changes in the environment (Abernethy Stoelwinder, 1991; Flamholtz, 1983; Thompson, 1967).. As organizations face increasingly uncertain environments they will tend to increase their use of new MCS techniques, since these techniques have been developed in recent years and are therefore more likely be able to address contemporaneous organisational needs. Activity based costing, balanced scorecard, economic value added, and benchmarking are examples of MCS techniques that haveShow MoreRelatedManagement Control System s : Management Systems Essay1478 Words   |  6 PagesManagement Control Systems Introduction In the rapidly changing business environment, there is enormous pressure to conduct activities in a better, controlled and efficient manner. The accelerating change creates uncertainties and complexities thus creating challenges for management in their strategic plans. Management cannot continue to rely on Management Accounting Control Systems whose primary emphasis is on financial targets since such traditional analytical approaches can fail to adapt to theRead MoreManagement Control System At Eversheds1203 Words   |  5 PagesManagement Control System at Eversheds ABOUT EVERSHEDS: Eversheds is an global law firm with a clear vision of the future. Eversheds is one of the largest legal/law firms in the world with more than thousand legal advisors around the globe. Eversheds has more than 50 offices globally. Eversheds is a firm that is adapting to new demands and business pressures. A firm that understands what clients need today and, equally important, what they will need tomorrow. We, at Eversheds, have recognizedRead MoreManagement Control System Budgeting1874 Words   |  8 PagesManagement Control System Budgeting A control system is necessary in any organization in which the activities of different divisions, departments, sections, and so on need to be coordinated and controlled. Most control systems are past-action-oriented and consequently are inefficient or fail. For example, there is little an employee can do today to correct the results of actions completed two weeks ago. Steering controls, on the other hand, are future-oriented and allow adjustments to be madeRead More Management Control Systems Essay examples1070 Words   |  5 Pages There are many different types of control that can be established in an organization depending on its goals and objectives. There are many different approaches to the management controlling function. Some of these control systems are bureaucratic control, market control and clan control. All of these control systems focuses on a different part of the business depend ending the necessities of the organization in that moment. All of the control systems have their advantages and disadvantages. Read MoreWhat Makes A Management Control System?1214 Words   |  5 PagesSo, you now can understand the functions of MCS and the purpose of the system, but what about the characteristics? What makes something a management control system? As the above showed, MCSs generally describe the design, installation and operation of different planning and control frameworks within management. But there are two distinct control systems within the concept. While these are different from each other, they are also interrelated and sometimes hard to separate from each other. First,Read MoreManagement Control Systems, Chapter 1-42243 Words   |  9 PagesSummaries Management Control ------------------------------------------------- Session 1: Chapters 1,2,3 amp; 4 Chapter 1 Management and control Management control – all devices or systems managers use to ensure that behaviors and decisions of their employees are consistent with the organizations objectives and strategies (MCS) * Back end of management process * Involves managers taking steps to help ensure that employees do what is best for the org. Primary function of MC: toRead Moreaccounting for flexibility and efficiency: A Field Study of Management Control Systems in a Restaurant Chain2715 Words   |  11 PagesAccounting for Flexibility and Efficiency: A Field Study of Management Control Systems in a Restaurant Chain - By Thomas Ahrens (London School of Economics), and Christopher Chapman (University of Oxford), from The Contemporary Accounting Research Vol. 21 No. 2 (Summer 2004) pp. 271–301. State the major points made in the article: Introduction to Adler and Bory’s (1996) conceptual framework of the enabling approach to management control systems. - Ahrens and Chapman go on to introduce their articleRead MoreA Case Management System For Cultivated Vital Planning And Performance Controls2617 Words   |  11 Pagesproductivities, lower costs, and increase insight into the interface of the document management system with a more technological improved case management system for cultivated vital planning and performance controls. Organizational Background The organization that will be the topic of discussion in my final project paper is the Dallas County Clerk Criminal Section and its current mainframe/document management systems. The county clerk serves as the clerk of both the county court and the commissionersRead MoreManagement Controls And Management Control Systems1464 Words   |  6 Pages2008, â€Å"management controls include all the devices and systems managers use to ensure that the behaviours and decisions of their employees are consistent with the organisation’s objectives and strategies†. An MSC which stands for management control system is a system which collects and uses information to evaluate the performance of several organizational resources like human, physical, financial as well as the organization as a whole considering the organizational strategies. MCS is a system thatRead MoreManagement Control System1989 Words   |  8 PagesManagement controls, in the broadest sense, include the plan of or ganization, methods and procedures adopted by management to ensure that its goals are met. Management controls include processes for planning, organizing, directing, and controlling program operations. A subset of management controls are the internal controls used to assure that there is prevention or timely detection of unauthorized acquisition, use, or disposition of the entitys assets. Simons (1994) defined MCS as the formal