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Unit 2: Strategic Management Framework

2.3.1 Management Control Activities Notes

It involves a variety of activities including:
 Planning what the organization should do

 Co-ordinating the activities of several parts of the organization
 Communicating information
 Evaluating information
 Deciding what, if any, action should be taken
 Influencing people to change their behaviour

Notes Management Control does not necessarily mean that actions should correspond to
a plan such as budget.
The stated plans were based on situations prevailing both inside and outside the organization at
the time of formulation of the plan.

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Caution If the circumstances have changed, planned action may no longer be appropriate.

Management control involves anticipating future conditions in order to ensure that the
organization’s objectives are attained. If the management discovers a better approach – one
more likely than the predetermined plan to achieve the organization’s goals – the management
control system should not obstruct its implementation. In certain cases the manager may be
required to obtain approval for such deviation.
2.3.2 Goal Congruence

Although systematic, the management control process is by no means mechanical; it involves
interactions among individuals, which cannot be described as mechanical. Managers have personal
as well as organizational goals. The central control process is to induce managers to act in
pursuit of their personal goals in ways that will help attain the organization’s goals as well.
Goal congruence means that as far as feasible, the goals of an organization’s individual members
should be consistent with the goals of the organization itself. The management control system
should be designed and operated with the principles of goal congruence in mind.

2.3.3 Tools for Implementing Strategy

Management Control Systems help managers move an organization towards its strategic
objectives. Thus, Management Control focuses primarily on strategy implementation.
Management controls are only one of the tools managers use in implementing desired strategies.
Strategies can be implemented through the organization structure, its management of human
relations and its particular culture. These are shown in Figure 2.2.

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