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Unit 2: Strategic Management Framework

 Responsibility centres are also guided by a large number of rules and formal information. Notes
They carry out the operations assigned to them and their outcomes are measured and
reported. Actual results are compared with those in the budget.

2.7 Keywords

Management Control: Management control is the process by which managers influence other
members of the organization to implement the organization’s strategies.

Strategic Formulation: Strategic formulation is the process of deciding the goals of the
organization and the strategies for attaining these goals.
Strategic Planning: Strategic planning occurs at top management levels; task control at the
lowest levels in the organization and management control is in between.
Task Control: Task control is the process of assuring that specific tasks are carried out effectively
and efficiently.

2.8 Review Questions

1. How can you relate goals and strategies? Give examples from your routine life.
2. Is there any significant difference between strategic planning and management control?
3. What is the difference between task/operational control and management control?

4. “Strategies are developed by marketing its core competencies with industry opportunities”.
Discuss the statement.
5. Briefly explain the Formal Control Process and role played by Accounting Systems and
Information Handling System.
6. What are the tools for implementing strategy?

Answers: Self Assessment

1. Strategic planning 2. Management Control

3. Strategic formulation 4. Behavioural
5. Strategies 6. Goal congruence
7. Task control 8. Less Expensive
9. Strategic plan 10. Controller’s

2.9 Further Readings

Books Anthony, Robert N and Govindrajan, Vijay, "Management Control System", Tata
McGraw Hill.
Kaura, Mohinder N, "Management Control and Reporting System", Response Books.
Maciariello, Joseph A. and Kirby Calvin J., Management Control Systems, 2nd
Edition, Prentice Hall of India Private Limited.

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