MANAGEMENT AND CONTROL

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 Management is the process whereby the resources of
man, machine and material are integrated to accomplish
these goals.
 the role of management is to plan, organize, integrate, and interrelate
organizational activities and resources in order to achieve the
organizations objectives.

This role is facilitated through appropriate management control systems

and processes.
 CONTROL

BEHAVIOUR

RESPONSIBILITY CENTER
TRANSFER PRICING
PERFORMANCE MEASUREMENT
KOMPENSASI SPECIAL TOPIC:
SERVICE ORGANIZATION
MNC ORGANIZATION
ART OF WAR
 An important characteristic of systems is control.
Control focusses on the prevention and correction of deviations in a
system's behaviour from those of standard that have been specified at a
given time.
Control systems operate in the same manner as systems, the
basic framework being the same.

In organizations the controls involve people, it is compared by

people with the desired state decided by people and a course of
action decided by people and action taken by people
 In a sense, the management control system is a
single system but more accurately it is interlocking
sub systems.
 BEHAVIOR
IN

ORGANIZATIONS
GOAL CONGRUENCE

MANNER
ORGANIZATIONAL GOAL

PERSONAL GOAL
Management Control
vs.
Strategic Control
In the broadest sense, control systems can be viewed as having
two basic functions:
strategic control and management control
STRATEGIC CONTROL
SWOT
compete with the other
firms in its industry

Focus
a focus primarily external to
the organization
.

External issues
How to achieve Goals

Examine
the industry and their
organization’s place in it

Strategic control
Is our strategy valid?
Is our strategy still valid, and
if not, how should it be
changed?

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 Management control

How they can

Are our employees influence employees’
likely to behave behaviors in desired
appropriately? ways

Do our employees understand Have

what we expect of them? primarily
an internal
focus
Will they work consistently hard and try Are they capable
to do what is expected of them; that is, of doing a good
will they implement the organization’s job?
strategy as intended? 20
 CONTROL

PROBLEMS
LACK OF DIRECTION
MOTIVATIONAL PROBLEMS
Personal limitation
GOOD MANAGEMENT CONTROL

Good control means that management can be

reasonably confident that no major unpleasant
surprises will occur.

out of control is used to describe a situation

where there is a high probability of poor
performance, despite having a reasonable
strategy in place

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Perfect
control
does not
exist
CONTROL PROBLEM AVOIDANCE
A v o i d a n c e m e a n s e l i m i n a t i n g t h e p o s s i b i l i t y t h a t t h e c o n t r o l p r o b l e m s
w i l l c a u s e t h e o r g a n i z a t i o n h a r m

01

03
Activity elimination
Third Party
-Subcontract
Centralization
-Lisensi
202 Decision – Top Management

Automation
Computer
Machine

28
END OF PRESENTATION