Page 17 - DMGT514_MANAGEMENT_CONTROL_SYSTEMS

Management Control Systems

Notes 2. Can you give a sketch of the formal management control process?
3. Discuss the nature and scope of the management control process making appropriate
reference in your answer to:

(a) Organizational structure
(b) The planning and control function of management
(c) The principle of management by exception
4. What is the role-played by accounting system and information handling systems in the
formal management control process?
5. One of the criticisms frequently leveled at industrial management is that although control
systems are introduced into units, these are rarely integrated with one another. Discuss
the statement in the context of goal congruence.
6. What do you analyse as the impact of the internet on the Management Control?

7. How do you describe formal aspects of management control systems to include a generic
set of five mutually supportive management subsystems?
8. Examine the role played by informal control process in the development of management
control system.
9. Do you approve of disagreements about the domain of management control systems exist
between different experts in the field? Why/why not?
10. Control systems play an important role in service as well as manufacturing organizations.
Do formal and informal systems play an important role in a hospital? What steps should
the hospital management take to ensure the effective implementation of management
control system?

Answers: Self Assessment

1. System 2. Management control system
3. Machines, People 4. Measured, Compared
5. a detector or sensor, an assessor, an effector, communication network
6. Efficient 7. Professionally trained person
8. Satisfactory 9. Top, lowest, between

10. Mechanical 11. Financial, non-financial
12. Interactive 13. strategy formulation, task control
14. plan 15. information

16. responsibility centers 17. Culture
18. (a) 19. (a)
20. (a) 21. (b)
22. (c) 23. (a)
24. (b) 25. (d)

26. (b) 27. (a)

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