Management Control System - E-book - ePub

The use of Management Control Systems initiated from thetimes when globalization came into being all across the worldas this was a beginning of the phase of industrial competitionamong the different industries in the market. The environmentof management control systems was introduced in thecompanies as they started to face changes in size, structure, processes within the organization; complexities associated withadministrative problems increased; internationalization ofindustrial demands began keeping in mind the geographicalscope of the world.
It is very important for a company or an industry to have amanagement control system in order to respond accurately andaccordingly to the global demands and is also essential for thesuccessful achievement of the company's objective. By definition, a management control system has the function ofgathering information and using the gathered information forevaluation of certain important organizational resources likehuman resources, physical resources, financial resources etc andalso of the whole company against other companies in theglobalized market.
Without an effective management control system, the companymay not even be aware of the strategies that they have usedfor achieving its goals are feasible enough or not for enablingthe company to attain the pre-decided set of goals andobjectives. The control system is the main body which responsible forcarrying out the tasks of Management Control System. Thecontrol systems are responsible for keeping a check if theprocesses are going as planned or not and if there is anypresence of errors or deviations in the process.
in case of anydiscrepancies, the control system also suggests some remediesto resolve the deviations and the errors.