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Management Control Systems Pooja, Lovely Professional University

Notes Unit 10: Interactive Control

CONTENTS
Objectives
Introduction

10.1 Interactive Control System
10.1.1 Conditions
10.2 The Cybernetic Paradigm and the Control Process

10.3 Designing Management Controls
10.4 The Control Process Hierarchy
10.4.1 Adaptive Control Systems: Two Sets of Mutually Supportive Systems
10.4.2 Formal Control System
10.4.3 Informal Control Process

10.5 Macro Cybernetic Framework
10.6 Summary
10.7 Keywords

10.8 Review Questions
10.9 Further Readings

Objectives

After studying this unit, you will be able to:
 Discuss interactive control system

 Explain contributing theories of management control systems

Introduction

Today an entrepreneur must have in hand a system of control which together manages all your
needs for a stable, fast and profitable.

Based on the current context of demands and computerization, interactive control system is an
application based on the needs of an entrepreneur to better control data input, output and stock.
Managing the tension between creative innovation and predictable goal achievement is the
essence of management control. Control of an undertaking consists of seeing that everything is
being carried out in accordance with the plan which has been adopted, the orders which have
been given, and the principles which have been laid down. Its object is to point out mistakes in
order that they may be rectified and prevented from recurring. Management control is a systematic
effort by business management to compare performance to predetermined standards, plans, or
objectives in order to determine whether performance is in line with these standards and
presumably in order to take any remedial action required to see that human and other corporate
resources are being used in the most effective and efficient way possible in achieving corporate
objectives.

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