Management Control

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ControlControl

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From french contrôle.Spanish Royal Academy:

Testing, inspection, supervision, intervention.Regulation, manual or automatic, on a system.

Management control

Management Control

Strategy Behavior

Organization

Control ConceptControl Concept

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Effective and Efficient use of resourcesRobert Anthony (1965)

Regulation of activitiesconsistent with plansMerchant K. A. (1985)

Formalized routines, reports and procedures,to maintain or change the activities

Robert Simon (1991)

Formal and informal planscarry out the objectives

Shahis L. Ansari & Jan Bell (1991)

Process for implementingstrategies to influence membersRobert Anthony & Govindarajan (2001)

Reductiondegrees of freedom

Michel Lebas (1980)CONTROL

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Control´s Evolution

Taylor´s Control (1911)Taylor´s Control (1911)

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Taylor tried to control reduce working capacity of decision regarding the work and any other activity in the industrial workshop.Replace “rule of thumb” by cientific control.

Assigning a daily task worker High salary for workers

Harmonious relations between employers and

men aware of their mutual interests

Maintaining a fast pace ...

lazy (or low performance)

Production costs

Precise knowledge of the time required to perform each task or part of the

task

Systematic or deliberate Underachievement

“In the past, first place has been called upon to man, in the future, you must first occupy the system” (Taylor, 1911: 16).

(Pierre Cossette, 2002: 174)

…Is to check that everything happens according to the plan adopted, the orders given and accepted principles. It aims to point out the faults and errors so that it can repair and prevent their recurrence … (Fayol, 1918).

Finances

Comerce

TechniqueAccountin

gSecurity

AdministrationGoverment

Programs

Orders

Effects

Repair

Avoid

Financial Comerce Technique Accounting Security

Administration

Goverment

The authority monitors the whole.

Fayol’s ControlFayol’s Control

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Each service monitorstheir agents.

Control´s Evolution 1906-Control´s Evolution 1906-19721972

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Firstconcepts

Theoretical scheme

Control Areasand

functional

Text books

Studies research

ControlModels

Taylor(1906)

Emerson(1910)

Church(1914)

Diemer(1915)

Fayol(1918)

Lawson(1920)

Dutton(1924)

Robinson(1925)

Urwick(1928)

Davis(1928)

Cornell(1930)

Holden, Fish,Smith(1941)Dimock

(1945)

Dent(1935)

Newman(1945)

Rose(1934)

Newman(1945)

Trundle(1948)

Goetz(1949

) Terry(1972)

Donelly, et al.(1971)Koontz y O´Donell

(1972)

Sisk(1969)

Deming(1968)

Paik(1963)Sord y Welsh

(1964)

Deverell(1967)

Mockler(1967)

Anthony(1965)

Koontz y Bradspies(1972)Muth

(1972)

1906 - 1925 1925- 1960 1960 - 1972

(Giglioni y Bedeian, 1974)

Importance of Control

Predominates, accounting and

financial control.

Basis for the development of control theory

Hofstede(1968)

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Types of control

Control according to the forms of work organizationControl according to the forms of work organization. .

1) On responsibility centers1) On responsibility centers

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Rest in a hierarchical view of the firm, vertical structures and individual responsibilities.

Management

Costs $

Functions

Control according to the forms of work organizationControl according to the forms of work organization. .

2) By processes2) By processes

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It rests on a transverse view of the firm, horizontal structures and shared responsibilities

Management

Cadena de valor

Customers

Principal processSupport

proccess

System of control based on three System of control based on three pillarspillars

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CONTROL

(Lebas y Weigenstein, 1986)

Burea

ucr

acy

Market

Culture

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