Documente Academic
Documente Profesional
Documente Cultură
and Control
Goals
An organizations
goals and objectives determine the
standard of control.
Top management determines the goals and issues
directives or orders to operating managers who set the
objectives and execute them.
However, managers differ in their ability to carry out
responsibilities assigned to them.
The ability of the manager depends on a number of
factors such as inborn quality, trait or character of the
person as well as his education, training, experience and
suitability to the assigned jobs.
performance
Again, since control is achieved through the action of
managers who are human beings, Management
Control System in an organization differs from
mechanical or biological systems as exist in
thermostat or human body temperature, in the
following two ways:
1. Problem of Perception
2. Problem of Motivation
Perception
Operating managers receive information from the top
Motivation
Action depends on how a manager reacts to the
matter.
Apart from perception, a managers reaction depends
stimuli.
Motivation to engage in a given behavior is
determined by
1. The persons belief or expectancy about the likely
outcome from that behavior, and
2. The importance the person attaches to those
outcomes, which shall satisfy his needs.
goals.
Their decision to contribute to the productive work of
needs.
Some of the needs are materialistic, e.g. money, perks,
by negative incentives
Goal Congruence
When an organizations goal coincides with the personal
An
Organizational Climate
The Management style of
and
other
documents,
while
others
prefer
Goal Congruence
In a goal congruent process, the actions people are
led to take in accordance with their perceived selfinterest are also in the best interest of the
organization
Achieving organizational goals through achieving
personal goals in schedule time
own self-interest?
2. Are these actions in the best interest of the
organization?
1. Informal factors
2. Formal factors
Informal Factors
(A) External Factors:
1. Society
2. Work ethics
3. Locality
Formal Factors
It can classify two ways:
1. MCS itself
2. Rules
Rules
Rules can be described as all types of formal
3. System safeguards
4. Task Control Systems
Different Organization
Structures
The structure of any organization depends on the
nature of business, its size and complexity, interfunctional relations and the extent of control needed.
Basically, there are three types of structures used in
big organizations, viz.
a) Functional
b) Divisional and
c) Matrix.
Disadvantages of Functional
Structure
Lack of Teamwork
Advantages of Divisional
Structure
Divisions work well because they allow a team to
Disadvantages of Divisional
Structure
A divisional structure also has weaknesses. A company
comprised of competing divisions may allow office
politics instead of sound strategic thinking to affect its
view on such matters as allocation of company
resources. Thus, one division will sometimes act to
undermine another. Also, divisions can bring
compartmentalization
that
can
lead
to
incompatibilities.
products when
the number of products grows to be relatively large.
Products require close coordination among many
specialized disciplines and
Controller
The person who is responsible for designing &
operating the MCS as a controller
CFO
Functions of Controller
1. Designing & operating information & control
2.
3.
4.
5.
6.
system
Preparing reports
Analyzing & evaluating the programme
Budgeting
Internal audit & accounting control for validity of
information
Training & development