1 / 6

Understanding Management Control Systems: Objectives, Elements, and Requirements

Management control systems refer to mechanisms that help organizations achieve their goals by defining objectives, measuring results, analyzing variances, and taking corrective actions. They support decision-making, motivate employees, enhance communication, and ensure accountability both internally and externally. The key requirements of effective MCS include long-term orientation, completeness, measurability, timeliness, identification of responsibilities, and precision. Elements of MCS involve selecting performance dimensions, defining structures, and specifying control processes. Learn more about the essential components and functions of management control systems.

abel-herman
Download Presentation

Understanding Management Control Systems: Objectives, Elements, and Requirements

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Management control systems

  2. What does management control system mean?The reference framework

  3. The phases of the MCS • Defining objectives and actions • Measuring results • Analysing variances • Introducing corrective actions

  4. The objectives of a MCS • Supporting decision making • Motivating people • Supporting communication and coordination • Stimulating learning • Improving communication with external stakeholders • Internal accountability • External accountability

  5. The requirements of the MCS • long term orientation • completeness • measurability • timeliness • identification of specific responsibilities • precision

  6. The elements of the MCS Defining the company’s MCS means: • selecting the dimensions of performance to be measured and the Techniques to be used; • identifying the Structure of the MCS, i.e. the company’s units, systems, and sub-systems of which the results are measured • defining the Process of control, through specifying the resources (people) responsible for each phase of the MCS

More Related