Management Control Systems

Eleventh Edition By: Robert N Anthony Vijay Govindarajan

 Robert N. Anthony Anthony ( !!"# de$ined Management Control as %&he 'ro(ess by )hi(h managers in$l*en(e other members o$ the organi+ation to im'lement the organi+ation,s strategies. Management (ontrol systems are tools to aid management $or steering an organi+ation to)ard its strategi( obje(tives. Management (ontrols are only one o$ the tools )hi(h managers *se in im'lementing desired strategies.-

&he Nat*re o$ Management Control Systems

.esigning and im'lementing o$ management systems/ *sed to 'lan and (ontrol the $irm,s 'er$orman(e. &hey in(l*de0
Strategi( 'lanning B*dgeting Reso*r(e allo(ation 1er$orman(e meas*rement/ eval*ation/ re)ard Res'onsibility (enter allo(ation &rans$er 'ri(ing

Basi( Con(e'ts
Control
A dete(tor or sensor An assessor An e$$e(tor A (omm*ni(ation net)or2

Management Systems

Bo*ndaries o$ Management Control

Activity
Strategy formulation Management Control Task Control

Nature of End Product

Goals, Strategies, policies Implementation of strategies Efficient and effective performance f individual tasks