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Management Control Systems

Notes
Example: The extent to which a subordinate has managerial autonomy in decisions
depends upon how much influence on the subordinate’s behaviour is exerted by the superior
effector.
Moreover, the perceptions of a superior in assessing a given problem faced by a subordinate
may influence the perceptions of subordinates.
To summarise, the goal-oriented control process follows the cybernetic paradigm and it includes
the essential elements of planning (goals), decision-making (behavioural choice) and control
(comparator-feedback). It operates within the control structure (a hierarchy of controls paradigm)
and has its purpose of the continuous attainment of organizational goals and objectives.
Responsibility centres are linked to one another by their control processes in a hierarchical
structure of control according to reporting relationships.
Figure 10.2: Control Hierarchy: The Structure of Control

10.4.1 Adaptive Control Systems: Two Sets of Mutually Supportive
Systems

A control system is a set of formal and informal systems that are designed to assist management
in steering the organization towards the achievements of its purpose by forging unity out of the
diverse efforts of sub-units and of individuals. These two sets of systems are distinctive but
highly interrelated and, sometimes, indistinguishable, sub-division of control systems.

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