Topic - 2

Chapter 2
Subsystems and components of
Control Systems (MCS)

Prof. PUTTU GURU PRASAD

FACULTY MEMBER INC GUNTUR
pgp4149@gmail.com
It includes

 Style and culture

 Formal control process
 Infrastructure
 Rewards
 Coordination and integration mechanisms
 Informal control process
Style and Culture

 Control system should support the prevailing

style of top management
 Between highly autocratic and highly
participative style
Style and Culture (contd.)

 Corporate culture – shared values, common

perceptions, decision premises
 Strength depends upon:
– number of shared premises
– commitment of people for shared values
Style and Culture (contd.)

 Corporate culture as a control mechanism

 By developing
– Sense of group loyalty,
– Reducing dissonance and
– Friction
Style and Culture (contd.)

 Management Doctrination And Skill Training

– Indoctrination (socialise members to its values,
procedures and policies) and
– Training (development of skills by imparting
messages) programmes.
– To impart set of attitude and skills
 Control system ensures indoctrination and
training being used for right people at right
time.
 Formal Control Process

Formal planning process Formal reporting

Strategic Planning Operational Planning

 Formal Planning Process

Strategic Planning Operational Planning

 One budget each for operations and strategy

 One Report each for operation and strategy
 For coordination between planning and
coordination, support required by:
 Infrastructure
 Reward and
 Communications system
 Formal Reporting Process

 To assess progress of strategic and

operational planning
 May be monthly, quarterly and yearly
 For deciding on next activity
 Infrastructure

 Structure and pattern of autonomy

 Includes designation of responsibility and
methods of measuring accomplished tasks
 2 modes necessary: strategic mode and
operational mode.
 Create SBUs to develop responsibility
 Placing formal responsibility – a critical
decision
 Rewards

 Appropriate Incentive To Ensure Active

Participation.
 Incentives – Monetary Or Non Monetary e.g.
(acceptance, status, desired status)
 Rewards:

Individual (performance) or
Group - (organizations performance) –
short or long term
Coordination & Integration Mechanism

 Facilitatedby:
@ Committees (Strategic and Operating)
– consists of top managers and officers

@ Formal conferences (by key

managers) – enables open communication
Informal Control Process

 Formed During Interaction Between People

 Helps Develop New Goals And Objectives
 Consists Of Cross Organizational Groups
 Helpful in supporting key values of the
organisation
Thank you !