Republic of the Philippines
COTABATO STATE UNIVERSITY
GRADUATE SCHOOL
Sinsuat Avenue, Cotabato city
Management
Control Systems and
Process
ROUHAIMAY S. ABA SA-EED B. BANGON
and
Reporters
Objectives:
• To explain the different
types of management
control
• Apply the knowledge
gained to the
appropriate sector of
work; and
• Recognize how crucial
management control is
to any firm
What is management
control system?
What is management
control system?
A management control system (MCS) is
an approach-businesses employ to
understand how successfully it achieves
goals related to productivity, profitability
or efficiency.
Checking current performance
against pre-determined standards
contained in the plans, with a
view to ensure adequate progress
and satisfactory performance.
Components of a
management control
system
1. Clear managerial
assignments
It's important to understand what
every department is working
Example: toward so each manager can be
accountable for meeting
A Coffee shop owner might create two objectives.
managerial categories, one for the kitchen and
one for the dining room. The executive chef is
the kitchen manager, and the service manager
is responsible for the dining room.
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2. Bureaucratic controls
Example:
Each receive a
handbook when Bureaucratic controls are the
they start work rules and guidelines of a business
operation that enhance efficiency
and maintain organization.
Much of the information might differ because of They define the chain of
the department in which they work. They may command and delegate
have different managers, work different hours responsibilities within each
and have different expectations. Because of division of an operation.
clear bureaucratic controls
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Well-designed bureaucratic
controls aim to answer questions
ahead of time so staff can resolve
issues quickly.
3. Financial control
Financial controls are the targets a
business establishes as necessary
for growth and profitability.
This could include something like
the costs of production or the
return from sales.
In management control systems,
managers closely monitor financials
to identify the adjustments they need
to remain aligned with the business's
goals.
4. Quality control
Quality controls help ensure a
business's product or service
meets certain standards.
These establish procedures to test
a product or service to check
whether they meet specific
guidelines or metrics.
In management control systems,
managers closely monitor financials
to identify the adjustments they need
to remain aligned with the business's
goals.
2. Organizational culture norms,
which define company culture for 5. Normative control
all employees and reflect the
company's mission statement or Normative controls are behavior-
sense of purpose. based patterns that unify a team in
its approach and attitude toward
goals.
They often are less formal than
other controls that use number-
based indicators of success.
Two Types of Normative Controls
1. Team norms are a set of rules or
operating principles that shape
team members’ interactions. Team
norms establish clear, agreed-
upon behavior, how the work will
get done, and what team members
can expect of each other
Management Control Process
- is the continues and ongoing dynamic
process of monitoring performance and
taking action to ensure desired result.
Steps Involved in the management
control process
Setting up of Standards
Measuring Performance
Compare performance against
standards
Analyzing Deviation
Taking corrective measures
Feedback is controlling
“Control is one of
the most important
function of
management”
“What gets
measure gets
managed”
- Peter Drucker
“Management
is doing
things right;
leadership is
doing the
right things”
- Peter Drucker
SHUKRAN !!!