Understanding Management Control Systems
Translated by
ScribdTranslationsUnderstanding Management Control Systems
Translated by
ScribdTranslationsC
naP
.tgni
Management control
Alain Burlaud
Claude J. Simon
Introduction
There are no riches but
of men" Jean Bodin, The
Republic
Part one: definition of management control
1) The positive definition of management control
A system for regulating human behavior
A check is completed
A set of techniques.
A language that exerts power over those who use it.
Part one: definition of management control
2) Historical perspective of management control
a) Organizational and technical criteria
Evolution of the structure of Evolution of methods of
the organization production
Evolution of the relationship between authority of
the organization and the actors:
Delegation
Abandonment of planning and implementation of a strategy
Part 1: Definition of management control
2) Historical perspective on management control
b) Linguistic criterion
Period 1920-1960 1960s 1980s 1990s - ...
Key concepts of Standard Marketing Concurrence Performance
management control
Managementof the Measurement of costs Measurement of quality Measure of the
Specific tools production partials, of the profitability and deployment
contribution, of the tension of services
marge administrative
Part 1: Definition of management control
3) Other forms of control
Characteristics Advantages Relationship with control of
management
The control by the Direct piloting The uncertainty objective is Management control lightens the
hierarchy replaced by certainty preliminary controls
subjective
The control by the Mechanical piloting He/objective the judgment This type of control does not apply
regulations and the It allows for the capitalization of on the action itself but on the
procedures know-how implementation procedure
The audit Control by regulation and It can be declined and varied from Management control can do
evaluation activity in relation to the total audit of a service the object of an audit
to goals process
The control by the The organization is divided into Powering up the staff He cannot translate long-term a
market autonomous entities that can Maximum flexibility strategy integrating several years
sell freely inside the of deficit in view of an advantage
group or on the market further
The control by the Set of common values Creation of a common language
culture to the personnel of the organization to accompany the change
enterprise
The control Control by values Permit of pallet the
clanique external to the organization that misrecognition of processes and the
she imposed herself difficulty in measuring results
Part 1: definition of management control
4) The implicit assumptions of the model
a) Hypotheses related to the decision-making model
The strategy and objectives are clarified.
The company is a system in which management control proceeds through adjustments.
successive according to a looped approach (forecasting, comparison of results to
forecasts, corrective measures).
The company is a sum of contracts made between its different entities in a
client-supplier relationship.
The model assumes that the success factors can be expressed in the long, medium and
court terms.
Part 1: definition of management control
4) The implicit assumptions of the model
b) Hypotheses related to the structure of the organization
Centers of
Centers of expenses Centres of Centers of Centers
costs discretionary recipes profit investment
Mastery of Mastery of Mastering costs, revenue
costs number
business
Mastery of investments
The classic tools of control
management
tools currently being implemented,
explicit, in most organizations
The information tools of the hierarchy
The tools for operational control
Behavior control tools
The relationship between structure and tools
The information tools of the
hierarchy
The case of a stable environment
Company: "black box"
- The method of coefficients
- The GP method
The disadvantages of this method
Demand and market
Production
Production Demand and market
The gears of the black box
Charges by nature
Indirect charges Direct charges
Set of centers
Complete costs
The control tools of
operational
Standards, Taylorism, and Fordism
The plans, the budgets, the reporting and
the analysis of gaps
Strategic plan
Operational plan
Budget
Reporting
The tools for controlling behaviors
The division into centers of responsibility
The cost centers
Support centers
The profit centers
The profit centers
Profit centers
The creation of an internal market
The expanded competition by
outsourcing
The relationship between the structure and the
tools
Very well-stocked toolbox
The unified company
The stabilized company
The planned company
The fractured company
The technical limitations of the model
The underlying model of management control
Purchases stocks production stocks sales
4esection: The developments
recent developments in management control
1) The 3 disruptive elements of traditional management control
Contributions of sociology
organizations
Reflection on structures and
the strategy of Reflection on management tools
organizations
Control of
classic management
4esection: Recent developments
of management control
Organizational intelligence at the heart of the new
management control
Management control
(objectifs)
Intelligence
organizational
Capacity of Capacity Ability to do Ability to do
creation of learning and against the greats evolve the modes
accumulation of changes of exercise
the experience the authority
4andPart: The Developments
recent management control
3) Terms of exceeding
a) The management control of projects
Definition: any activity aimed at the production of one or more goods or services mobilizing
over a long period a set of resources, the management of which can be considered as without
strong interference with that of the rest of the company.
b) The control of activities
Hypothesis: the best way to control activities is to manage the cause of costs and not the
costs themselves.
2 processes: - the reduction of steps in the hierarchy
the formation of versatile teams
4epart: The developments
recent management control
3) Conditions for exceeding
c) Management control and management
socioeconomic
Quality
Costs Deadlines
Gold triangle QCD
4epart: The developments
recent management control
3) Conditions for exceeding
d) Networked business management
Pivot firm
Suppliers Subcontractors
Distributors
Flow of information
Conclusion
From a simple and direct model...to an intermediary model
of authority and control, of exercising an influence or
we go through...
of a metacontrol.
Decision Decision
Tool
Action
Action