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Nature Concept & Scope of MCS

This document defines and discusses the nature, concepts and scope of management control systems. It provides definitions of control from various sources and outlines the key principles of management control systems. These include delegation, motivation and measurement of achievement. The objectives and processes of management control systems are also described. Examples of essential elements and the broad scope of management control systems are given. In summary, the document serves as a reference on the fundamental concepts and applications of management control systems in organizations.

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198 views16 pages

Nature Concept & Scope of MCS

This document defines and discusses the nature, concepts and scope of management control systems. It provides definitions of control from various sources and outlines the key principles of management control systems. These include delegation, motivation and measurement of achievement. The objectives and processes of management control systems are also described. Examples of essential elements and the broad scope of management control systems are given. In summary, the document serves as a reference on the fundamental concepts and applications of management control systems in organizations.

Uploaded by

pathakchintan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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NATURE,CONCEPT AND SCOPE OF MANAGEMENT CONTROL SYSTEM

NAME: SAHINA SETHI ROLL NO: 24

REFRENCES

STUDY/REFRENCE MATERIAL FOR PGDBM : MANAGEMENT PRINCIPLES AND TECHNIQUES [PG: 409-424] ESSENTIALS OF MANAGEMENT

HAROLD KOONTZ AND HEINZ WEIHRICH

[PG: 345-357] www.vhcn.com/rpi/mcs.htm WWW.CPAJOURNAL.COM WWW.CONSOCIATES.COM WWW.ERPWEB.COM WWW.REPOSITORY.UPENN.EDU

CONTENTS

MEANING OF CONTROL AIM DEFINITIONS MANAGEMENT CONTROL SYSTEM KEY PRINCIPLES NATURE OBJECTIVES PROCESS BLOCK DIAGRAM OF CONTOL PROCESS CORPORATE EXAMPLE ESSENTIALS SCOPE

WHAT IS MEANING OF CONTROL ???

CONTROL IS TO GUIDE POWER AUTHORITY TO DIRECT VERY IMPORTANT FUNCTION AND ELEMENT OF MANAGEMENT

AIM OF CONTROL

DEFINITIONS OF CONTROL

BRECH : CONTROL IS THE PROCESS OF CHECKING THE


ACTUAL PERFORMANCE AGAINST THE AGREED STANDARDS OR PLANS WITH A VIEW TO ENSURING ADEQUATE PROGRESS OR SATISFACTORY PERFORMANCE AND ALSO RECORDING SUCH EXPERIENCE AS IT GAINED AS CONTRIBUTION TO POSSIBLE FUTURE NEEDS

ERNEST DALE : THE MODERN CONCEPT OF


CONTROL ENVISAGES A SYSTEM THAT NOT ONLY PROVIDES A HISTORIC RECORD OF WHAT HAS HAPPENED TO THE BUSINESS AS A WHOLE BUT ALSO PINPOINTS THE REASONS WHY IT HAS HAPPENED AND PROVIDES DATA THAT ENABLES THE CHIEF EXECUTIVE OR THE DEPARTMENTAL HEAD TO TAKE CORRECTIVE STEPS IF HE FINDS HE IS ON THE WRONG TRACK

MANAGEMENT CONTROL SYSTEM


BASIC POSTULATES :

SHORT INTERVAL MEASUREMENT FIRST LINE MANAGEMENT

KEY PRINCIPLES

DELEGATION MOTIVATION MEASUREMENT OF ACHIEVEMENT

NATURE OF MANAGEMENT CONTROL SYSTEM


1.

2. 3. 4. 5.

6.
7.

IMPORTANT MANAGEMENT FUNCTION CONTINUOUS PROCESS MECHANISM DYNAMIC PROCESS FORWARD LOOKING ACTION ORIENTED CO-ORDINATE INTEGRATED SYSTEM

OBJECTIVES OF MANAGEMENT CONTROL SYSTEM


1.

2. 3. 4. 5.

FINDING OUT WHY A CERTAIN THING IS HAPPENING COMPARISIONS INCREASE THE EFFICIENCY DECIDE CORRECTIVE ACTIONS CO-ORDINATION

PROCESS OF MANAGEMENT CONTROL SYSTEM


1.

2.
3. 4.

FIXING STANDARDS MEASUREMENT OF PERFORMANCE COMPARISON CORRECTION OF DEVIATION

THE CONTROL PROCESS


DESIRED PERFORMANCE MEASUREMENT ACTUAL OF PERFORMANCE ACTUAL PERFORMANCE

COMPARISON

IMPLEMENTATION OF CORRECTIVE ACTIONS

PROGRAM OF CORRECTIVE ACTIONS

ANALYSIS OF CAUSES OF DEVIATION

IDENTIFICATION OF DEVIATIONS

CORPORATE EXAMPLE

The Vantage venture is a new addition to the Vantage Healthcare Family of Companies

ESSENTIALS OF MANAGEMENT CONTROL SYSTEM


1.

2.
3. 4. 5. 6. 7. 8. 9.

SUITABILITY SIMPLICITY OBJECTIVITY ECONOMICAL FLEXIBILITY QUICK REPORTING SUGGESTIVE SELF CONTROL FEEDBACK

SCOPE OF MANAGEMENT CONTROL SYSTEM


1. 2.

3.
4. 5.

6.
7. 8.

9.
10. 11.

CONTROL OVER POLICIES CONTROL OVER ORGANISATION CONTROL OVER PERSONNEL CONTROL OVER WAGES AND SALARIES CONTROL OVER COSTS CONTROL OVER METHODS CONTROL OVER CAPITAL EXPENDITURE CONTROL OVER PRODUCTION CONTROL OVER RESEARCH & DEVELOPMENT CONTROL OVER EXTERNAL RELATIONS OVERALL CONTROL

THANK YOU !! ANY QUERIES PLEASE ???

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