Management Control Systems

Eleventh Edition
By: Robert N Anthony Vijay Govindarajan

 Robert N. Anthony Anthony (2007) defined Management Control as The process by which managers influence other members of the organization to implement the organizations strategies. Management control systems are tools to aid management for steering an organization toward its strategic objectives. Management controls are only one of the tools which managers use in implementing desired strategies.

The Nature of Management Control Systems

Designing and implementing of management systems, used to plan and control the firms performance. They include;
Strategic planning Budgeting Resource allocation Performance measurement, evaluation, reward Responsibility center allocation Transfer pricing

Basic Concepts
Control
A detector or sensor An assessor An effector A communication network

Management Systems

Boundaries of Management Control

Activity
Strategy formulation Management Control Task Control

Nature of End Product

Goals, Strategies, policies

Implementation of strategies
Efficient and effective performance Of individual tasks