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Management Control Systems

Notes 22. By what process do managers influence other members of an organization to implement
organization’s strategies?
(a) Motivation (b) Training

(c) Management Control (d) Leading
23. Which of the following achieves unity through diversity by the use of communications
and co-ordination in pursuit of short-term objectives and long-term goals?

(a) Sub-units (b) Goals
(c) Procedures (d) None of these
24. The day-to-day activities of an organization are controlled by:
(a) Management Control System (b) Operational Control System

(c) Both (a) and (b) (d) None of the above.
25. What is the information obtained by managers through observation, face-to-face
conversation, telephonic conversation, and meetings called?

(a) Formal information (b) Partial information
(c) Complete information (d) Informal information.
26. Any control system has four important elements. Which element helps in comparing the
actual results with the standard or expected results?
(a) A detector (b) An assessor
(c) An effector (d) Communication network.
27. Which controls also known as steering controls are used to monitor and control tasks on
a continuous basis?
(a) Cybernetic controls (b) Go/no-go controls
(c) Pest controls (d) Pre controls



Case Study MCS at Little Friends Electronic Corporation

ittle Friends Electronic Corporation, USA, was a defense contractor, which had
dealt with Canada’s defense department on several occasions. John Martins,
Lpresident of the corporation, went to Canada for a meeting with top authorities of
the defense department. At the meeting, the secretary of the defense department made a
speech emphasizing the need for tighter control by defense contractors, especially at a
time of inflation. The secretary said that the defense department had decided to pay more
attention to the management practices of its defense contractors, and would consider
favourably only those companies which had effective control systems. On his return to the
US, Martins briefed his Vice President (administration) on the secretary’s speech. He
asked the Vice President to install an effective control system in the company. The Vice
president turned to corporate controller asking him to make arrangements to install an
effective control system. The controller met his staff assistant and ordered him to search
for space literature that would guide them in installing an effective control system. He
asked his assistant to submit a report on his work within a week.
Contd...

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