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Management Control Systems Neha Tikoo, Lovely Professional University

Notes Unit 2: Strategic Management Framework

CONTENTS
Objectives
Introduction

2.1 Strategic Planning
2.2 Strategic Formulation
2.2.1 Distinction between Strategic Formulation and Management Control

2.3 Management Control
2.3.1 Management Control Activities
2.3.2 Goal Congruence
2.3.3 Tools for Implementing Strategy
2.4 Task Control/Operational Control

2.4.1 Distinction between Task Control and Management Control
2.5 Formal Control Process and Role Played by Accounting Systems and Information
Handling System

2.6 Summary
2.7 Keywords
2.8 Review Questions

2.9 Further Readings
Objectives

After studying this unit, you will be able to:
 Discuss the strategic formulation
 Identify the distinction between strategy formulation and management control
 Identify the distinction between task control and management control
 Construct the management control environment
 Explain the concept of strategy

 Describe the management and control structures
Introduction

Management Control Systems are tools to implement strategies. Strategies differ between
organizations and controls should be tailored to the requirements of specific strategies. Different
strategies require different task priorities, different key success factors and different skills,
perspectives and behaviours.

Management Control is one of the several types of planning and control activities in an
organization. The other two control and planning activities are: (a) strategic planning and
(b) task or operational control.

14 LOVELY PROFESSIONAL UNIVERSITY