MCS Intro
Transcript of MCS Intro
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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.