What is the concept of management control?
Just so, what is the concept of management control system?
A management control system (MCS) is a system which gathers and uses information to evaluate the performance of different organizational resources like human, physical, financial and also the organization as a whole in light of the organizational strategies pursued.
One may also ask, what is management control in accounting? A management control system maintains a detailed level of oversight over the use of resources within a business. The information used in a management control system is based on a budget or other plan that is compared to actual results, with variances being reported to responsibility centers throughout the organization.
Likewise, what is the purpose of management control?
Objectives of management control system It is also described as a technique that assists in the decision-making process of a business entity. It supports and motivates individuals so that they can overcome their limitations and work together towards common organizational goals.
What are the types of management control systems?
The following are common types of management control.
- Structures. Organizational structures such as authority, roles, accountability, responsibility and separation of concerns.
- Performance Management.
- Task Assignment.
- Setting Expectations.