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In the management parlance , control

traditionally refers to the activities of

establishing standards of performance,evaluating actual performance against these

standards, and implementing corrective

actions to accomplish organizational

objectives

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The central focus of MCS is Business Strategy

Implementation.MCS provides knowledge , insight, and

analytical skills related to how a

corporations senior executive design and

implement the on going managementsystems that are used to plan and control the

firms performance

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Elements of MCS include:

Strategic Planning,

Budgeting, Resource Allocation,

Performance Measurement,

Evaluation, And Rewards, Responsibility Centers, Transfer Pricing

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The MCS builds on concepts from

Business Strategy,

Organizational Behavior,

Human Resource and

Financial & Managerial Accounting.

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Consider the collapse of companies such as

World Com, Enron and Global Crossings. Partof their demise was the lapse in controls.

CEO and Top management compensation in

these companies was so heavily tied to stock

options that executives were motivated tomanipulate financials to buoy the short term

stock price

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Consider the world-class companies such as

3M corporation, Dell Computers, Wal-Mart,South west Airlines. Their long term success

is not just because they have developed good

strategies, but more importantly, they have

designed systems and processes that energizetheir employees to execute those strategies

effectively

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Press the accelerator, and your car goes

faster, rotate the steering wheel, and itchanges direction. Press the brake pedal, and

the car slows or stops. With these devices,

you control speed and direction, if any of

them is inoperative, the car does not dowhat you want it to . In other words, it is out

of control

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An organization must also be

controlled. That is devices must

be in place to ensure that itsstrategic intentions are

achieved. But controlling an

organization is muchcomplicated than controlling a

car

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Every control system has at least four

elements

1.Detector or Sensor a device that

measures what is actually happening inthe process being controlled.

2.An Assessor a device that determines

the significance of what is actually

happening by comparing it with some

standard or expectation of what should

happen

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3.An effectors a device that alters behavior if

the assessor indicates the need to do so.

4. A communications network a device that

transmit information between the detector

and the assessor and between the assessorand the effectors

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1. Thermostat2. Body Temperature

3. Driver of an automobile

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1. Thermometer which measures the currenttemperature of a room (detector)

2. An Assessor which compares the current

temperature with the accepted standard for

what the temperature should be.

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3.An effectors which prompts a furnace to

emit heat or activates an air conditionerwhich also shuts off these appliances whenthe temperature reaches the standard levels

4. A communication network, which transmit

information from thermometer to theassessor and from the assessor to the heatingor cooling element

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1. The sensory nerves scattered through thebody

2. The Hypothalamus center in the brain,which compares information received fromdetectors with the 98.6 f standard.

3. The muscles and organs (effectors) that

reduce the temperature when it exceedsthe standard and rise the temperaturewhen it falls below the standard

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4. The overall communications system of

nerves is self regulating. If the system isfunctioning properly, it automatically

corrects for deviations from the standards

with out requiring conscious effort.

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Assume you are driving on a high way where

the legal speed 65 kmph. Your control systemacts as the following.

1. your eyes measures actual speed by

observing the speedometer.

2. your brain compares the actual speed with

desired speed, and, upon detecting a

deviation from the standard.

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3. Directors your foot to ease up or press

down on the accelerator.4. As in body temperature regulation your

nerves form the communication system that

transmit information from eyes to brain and

brain to foot.

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An organization consist of a group of people

who work together to achieve certaincommon goals. The CEO decides on theoverall strategies that will enable theorganization to meet its goals.

Subject to the approval of the CEO, the

various business unit managers formulateadditional strategies that will enable theirrespective units to further these goals

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The management control process is theprocess by which managers at all levels

ensure that the people they supervise

implement their intended strategies.

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A system is a prescribed and usually

repetitious way of carrying out an activity ora set of activities. Systems are characterized

more or less rhythmic, coordinated, and

recurring series of steps intended to

accomplish a specified purpose.

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Management control is the process by which

managers influence other members of the

organization to implement the organizations

strategies. It includes

PlanningCoordinating

Communicating

EvaluatingDeciding

Influencing

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Wise men talk because they have

something to say; Fools also talk,

because they have to say something.

God grant me the serenity to accept

the things I cannot change, courage tochange the things I can, and wisdom to

know the difference.