Page 24 - DMGT514_MANAGEMENT_CONTROL_SYSTEMS

Unit 2: Strategic Management Framework

2.4 Task Control/Operational Control Notes

Task control is the process of assuring that specific tasks are carried out effectively and efficiently.
Task control is transaction oriented i.e., it involves the control of individual tasks. Rules to be
followed in carrying out these tasks are prescribed as part of the management control process.
Numerically controlled machine tools, process control computers and robots are task control
devices. Human beings are used in these tasks only if they are less expensive than computers or
other control devices.

Many task control activities are scientific, that is, relationship between cause and effect is known
within acceptable limits, systems exist for various types of tasks and each is structured to meet
the requirements of a specific type of task e.g. procurement system, scheduling systems, order
entry systems, logistic systems, quality control systems, cash management systems and many
others.
Certain activities that once were performed by managers are now automated and hence, become
task control activities. The shift from management control to task control because of automation,
frees some of the managers’ time for truly management activities.

2.4.1 Distinction between Task Control and Management Control

1. Many task control systems are scientific, whereas, management control can never be
reduced to science.

2. In task control, either human beings are not involved at all or the interaction is between
a manager and a non-manager. Whereas, in management control, managers interact with
other managers.
3. Task control requires a different task control system for each type of task, whereas, the
management control system is basically similar throughout the organization.

4. In task control, focus is on specific task performed e.g. manufacturing Job No. 59268 or
ordering 100 nos. of part 3009. In management control, the focus is on organization units.
5. Management control relates to the broad type of activities and managers decide what is to
be done within the general constraints of the strategies. Task control relates to specified
tasks and for most of these tasks, little or no judgment is required as to what is to be done.

Self Assessment

Fill in the blanks:

7. ……………………….is transaction oriented i.e., it involves the control of individual tasks.
8. Human beings are used in these tasks only if they are ………………than computers or
other control devices.

2.5 Formal Control Process and Role Played by Accounting
Systems and Information Handling System

Figure 2.3 is a broad framework of the formal management control process. A strategic plan
implements the organization’s goals and strategies. All available information is used in making
this plan. The strategic plan is converted to an annual budget that focuses on the planned
revenues and expenses for individual responsibility centres. Responsibility centres are also
guided by a large number of rules and formal information. They carry out the operations

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