MANAGEMENT

CONTROL
 theory section

[Link] Triangle of Management Control

[Link] Definition of Management Control
3. The Rationale for Existence
4. The Management Control Approach
[Link] Objectives of Management Control
6. The Organizational Positioning of Management Control
7. The Organization of the Management Control Function
8. Management Control and Analytical Accounting
9. The Pillars of the Management Control System
[Link] Profile of the Management Controller
 [Link] Triangle of Management Control

What is the difference between the goal and the objective?

GOAL

For a goal to become an

objective, it must be:

Quantified
Dated
Measurable commitment

OBJECTIVE

“Nothing can be judged unless it is measurable, and

nothing is measurable unless it becomes quantifiable”
 Manage:
To manage is to think in a triangular, triadic, and pyramidal way.

How?

Performance
Manager
A leader who sets a desire, gets a power and and analyzes
the gaps.

Budget
The numerical translation of an objective (program)
A budget is essentially a financial blueprint that transforms
strategic goals or plans into specific financial terms. It lays out
in detail how available resources (primarily financial) will be
used to achieve the desired objectives. By translating an
abstract objective into concrete figures, a budget provides both
clarity and accountability for everyone involved in executing
the plan.

Effectiveness
Doing the right thing
This refers to how well something achieves its intended result or
goal. It focuses on the outcome or the ability to produce a
desired effect.

Efficiency
Doing it in the best way
This refers to achieving the desired result with the least amount
of resources (time, effort, money, etc.). It focuses on how well
resources are used to achieve the objective.
 Relevance
Doing it in the most appropriate way
This refers to how appropriate or meaningful something is to
the context or situation at hand. It focuses on the connection
or significance of a particular element.

Effectiveness
Efficiency
Relevance
DO WELL THE GOOD
OBJECTIVE/ACHIEVEMENT
ACHIEVEMENT/RESOURCE THINGS
OBJECTIVE/RESOURCE
 2. The Definition of Management Control

Robert N. Anthony :
"Management control is the process by which managers
ensure that resources are used effectively and efficiently in
the accomplishment of organizational objectives."

Hubert Bouquin :

"Management control is the process that ensures the

alignment of actions with the organization’s objectives by
providing information, guidance, and feedback to managers
and other actors."

strategic management
strategic control

MANAGEMENT CONTROL

Daily management
Operational control

Short Medium Long

Term Term Term

Management control acts as a bridge between short-term

operations and long-term strategic goals.
 3. The Rationale for Existencel

Organization
size Delegation
of tasks
Need for
coordination

Need for MANAGEMENT CONTROL

Organization size:
As companies grow, they become more complex.

Delegation of tasks:
In larger organizations, managers cannot handle everything themselves, so they
delegate tasks to different departments, teams, or individuals.

Need for coordination:

Once tasks are delegated, there is a need to make sure everyone works towards the
same goals, follows the right processes, and stays aligned.

Need for management control:

To ensure this coordination works effectively, management control is required. It helps
monitor performance, ensure objectives are met, and resources are used efficiently.
 4. The Management Control Approach

The PDCA Cycle (Plan-Do-Check-Act) is a four-step continuous

improvement model used for problem-solving and process optimization.
It involves:

[Link] – Identify a problem, analyze it, and develop a strategy.

[Link] – Implement the plan on a small scale.
[Link] – Evaluate results and compare them with expectations.
[Link] – Standardize successful changes or adjust and repeat the cycle.

This iterative process helps organizations improve efficiency, quality,

and decision-making.

"The PDCA Cycle finds its purpose on a challenging path

(competition, competitiveness, performance...) because there is no
easy path—only the difficult one leads the way."
5. The Objectives of Management Control

Contribute to defining the company's strategy

Participate in budget preparation
Monitor the implementation of the strategy
Measure performance
Take corrective actions

6. The Organizational Positioning of Management Control

Reporting to General Management

General Management
Management Control

Commercial Industrial Financial

Department Departement Department

Reporting to the Administrative and Financial Department

General
Management

Management
Control

Commercial Industrial Financial

Department Departement Department
 reporting in a rake structure

General
Management

Commercial Industrial Financial

Department Departement Department

Management
Control

7. The Organization of the Management Control Function

Management
Control

Dashboard and Gap Analysis

Reporting

Forecasting Analytical
and Budgeting Accounting
 8. Management Control and Analytical Accounting

1992
Financial Crisis
Economic
Crisis
The 5 Economic
Agents

Households Firms Government Banks Rest of the World

Consumption Production Distribution Financing Exchange

Profit Budget Budget Trade

Unemployment Crisis Balance
Decline Crisis
Crisis
Profit = Selling Price - Cost Price

Increase in Decrease in
Selling Price Production Cost.

Impossible analyze

analytical
Market Fluctuation accounting
Supply/Demand
Management
Control

9. The Pillars of the Management Control System

Management
Information
Objective
System
System
Organization
System
Management Control
 Objective System
It has to follow

Information System.

An information system is a structured system used to collect,

store, process, and disseminate information to support
decision-making, coordination, control, analysis, and
visualization within an organization.

collect Supporting documents

store General Journal

process General Ledger

disseminate Trial Balance

 Organization System

the rules are:

Span of control
A manager should have a limited number of direct subordinates.

Interconnection between power and responsibility

Managers must have the authority to make decisions while being
accountable for their outcomes.

Decentralization and Delegation of Power in Management

Decentralisation is the distribution of decision-making authority, while
délégation de pouvoir is assigning specific tasks with authority to
subordinates. Both enhance efficiency.

Unity of Command
This principle states that each employee should report to only one
direct superior to avoid confusion, conflicting instructions, and ensure
clear accountability and efficient decision-making.

The clear allocation of functions

It aims to ensure that roles and responsibilities are well-defined,
avoiding both ambiguity and overly complex boundaries.

Avoid unassigned functions

Ensuring that every task or responsibility within the organization is
clearly assigned to someone. Unassigned functions can lead to
confusion, inefficiency, and missed opportunities.

360° Responsibility Rule

Everyone should know who they report to, who reports to them, and
who they collaborate with.
 10. The Profile of the Management Controller
COURAGE ≠ Submission
A controller needs to have the courage to speak the truth, even when it’s
uncomfortable for management.
Uncomfortable Truth ≠ Comfortable Lie
It’s easy to sugarcoat reports to avoid conflict. But a good controller tells the real
story, even if it’s ugly.
Title Giver = Flatterer
someone who hands out titles without merit is just a flatterer, not a true evaluator.
Real controllers reward competence, not flattery.
Nepotism = Bootlicker
If people are promoted based on personal connections, not merit, the controller
becomes part of a system of flattery and bootlicking a behavior to avoid at all costs.
Competence ≠ Allegiance
You should be hired and promoted for your skills and expertise, not because of your
loyalty to a boss or a political group. Controllers must serve the truth, not a person.
Hypocrisy ≠ Truth
If you say one thing (ethics, transparency) but do the opposite, you lose all credibility.
A controller must embody truth and integrity.

Reputation ≠ Conscience
Having a good public image (reputation) is nice, but what matters more is your inner
conscience — knowing you did the right thing, even if no one sees it.
Appearance ≠ Being (Authenticity)
Don’t look ethical — be ethical. Substance matters more than the appearance of integrity.
Noise ≠ Silence
Being noisy or constantly making a fuss doesn’t make you a better controller. Sometimes
silence (deep reflection, careful analysis) is far more valuable.
Wanderer ≠ Leader
A good controller is a guide, someone who actively leads with insight — not someone who
just drifts through the numbers
Absence ≠ Presence
Physically being in meetings is not enough. Real presence means engaging, contributing,
asking the hard questions.
Easy ≠ Difficult
A good controller doesn’t chase easy wins. They embrace complex challenges — that’s where
they create value.
Obligation ≠ Passion (Love)
If you’re doing the job just because you have to, you’ll do the bare minimum. Passion means
caring about the company’s success, not just your paycheck.
GAP ≠ HOPE
Even if there’s a gap between the reality and the ideal, the controller must keep hope alive
that better governance and transparency are possible.
 Good ≠ Bad
it’s a reminder that being technically good isn’t enough if you’re ethically corrupt.
Controller ≠ Snitch
A controller isn’t a mouchard (a petty informer who betrays people for personal gain).
Instead, they are guardians of the system, who raise issues to protect the organization,
not to destroy people.
Trust ≠ Mistrust
Great controllers build trust with teams. If people fear you, they’ll hide problems —
and you’ll fail at your job.
Humility ≠ Humiliation
A controller should be humble in seeking the truth — but never humiliate others. They
correct systems, not attack people.
Humanity ≠ Superiority/Inferiority
Just because you hold power over data and reporting doesn’t mean you’re better than
operational teams. Respect for people is essential.
Big ≠ Small
This is about vision. A great controller sees the big picture, not just individual
transactions. They connect numbers to strategy, helping leadership make better
decisions.