Page 239 - DMGT514_MANAGEMENT_CONTROL_SYSTEMS

Management Control Systems

Notes 4. Personnel
5. Finance
Typical Marketing Objectives
1. To improve market penetration with existing products.

2. To affect price changes to secure a more balanced price structure, including a review of
discount policy.
3. To increase the effectiveness of sales staff in terms not only of sales level but also of sales
costs and profitability of products sold.
4. To improve distribution methods including support facilities such as dealer services.
Typical Production Objectives

1. To ensure that the products produced are to the required quality standards.
2. To control raw materials, purchased parts and sub-assemblies, consumable stores and
work-in-progress, at acceptable levels consistent with supply requirements.

3. To secure improvements in machine efficiency including set up times, work or tool change-
over-periods and breakdown experience.
4. To facilitate the rearrangement, replacement or expansion of plant and machinery to
secure the most effective use of the production resources.
Typical Research and Development Objectives
1. To provide research facilities adequate for the programmes of pure and applied research
considered desirable for the business and to finance such activities in a systematic manner.
2. To carry out research to provide new products, methods and procedures for the company.
3. To convert the results of research into commercially viable products and procedures.

Typical Personnel Objectives
1. To engage in manpower planning to anticipate staff requirements at all levels and provide
the organization to satisfy the needs identified.

2. To relate job by job analysis and description to identify the characteristics required by a
good employee.
3. To reduce labour turnover to a reasonable level for the type of business undertaken.

Typical Finance Objectives
1. To provide the finance to carry out its planned operations.
2. To secure the best mix of sources of finance and allocation to the activities of the business
to optimise the use of finance in the company.
3. To provide a return to shareholders indicative of the stability and strength of the enterprise
related to funds to be retained in the business to finance the future growth of the business.

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