Page 30 - DMGT514_MANAGEMENT_CONTROL_SYSTEMS

Neha Tikoo, Lovely Professional University
Unit 3: Behavioural Considerations

Unit 3: Behavioural Considerations Notes

CONTENTS
Objectives
Introduction

3.1 Goal Congruence
3.2 Managerial Styles
3.3 Informal Organizations

3.4 Formal Control System
3.5 Structure in an Organization
3.5.1 Entrepreneurial Structure
3.5.2 Functional Structure
3.5.3 Business Unit Organization Structure

3.5.4 Matrix Structure
3.6 Functions of the Controller
3.7 Decentralization as a Management Philosophy

3.7.1 Decentralised Units – Advantages and Potential
3.7.2 Decentralised Units – Difficulties and Problems
3.8 Management Control Process
3.8.1 Characteristics of a Good Management Control System
3.9 Types of Management Control Systems

3.9.1 Subsystems and Components of Management Control Systems
3.10 Summary
3.11 Keywords

3.12 Review Questions
3.13 Further Readings

Objectives

After studying this unit, you will be able to:
 Discuss the goal congruence

 Explain the informal organisation
 Explain the formal control systems and informal control systems
 Formulate the objectives of various functions

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