Effective Management Control: Theory and Practice

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Springer Science & Business Media, Feb 29, 1996 - Business & Economics - 174 pages
2 Reviews
Effective Management Control deals with a critical but relatively neglected and misunderstood aspect of organizational effectiveness: the process of controlling the behavior of people in organizations. The issue of organizational control and the design of an optimal control system is essential for the long term effectiveness of an organization: too little control can lead to confusion and chaos; conversely, too great a degree of control can result in the erosion of innovation and entrepreneurship.
This monograph presents a conceptual framework for approaching these issues, and examines the role accounting can play in a successful control system. The author works towards an understanding of the nature, role, elements and functioning of organizational control and control systems in organizations. The book posits and discusses the features of a core control system and its component parts, including: planning, measurement and feedback, evaluation and reward sub-systems. It also discusses the ways in which a core control system operates within a larger organizational structure and culture. The theory is illustrated through its application to a particular case study.
 

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Contents

THE NATURE AND ROLE OF ORGANIZATIONAL CONTROL
1
THE NATURE OF CONTROL
2
Lack of Total Goal Congruence
3
THE NEED FOR ORGANIZATIONAL CONTROL
5
Focus on Goals
6
Implementation of Planning
7
Nature of a Control System
8
Leadership as a Method of Control
9
MEASUREMENT ASPECTS OF EVALUATION METHODS
76
EVALUATION METHODS
78
Comparison Methods
80
Descriptive Methods
84
PROBLEMS OF EVALUATION METHODS
87
Problems of Reliability
89
Administrative Problems of Evaluation Systems
91
Difficulties of Evaluation Systems in Control
92

Formal Control System as a Method of Control
10
CONCLUSION
11
ENDNOTES
12
REFERENCES
13
ORGANIZATIONAL CONTROL SYSTEMS A FRAMEWORK
15
The Core Control System
17
The Measurement Subsystem
19
The Evaluation and Reward Subsystem
20
Organizational Structure as a Component of Control
22
Organizational Culture as a Component of Control
24
Evaluating the System
25
Firms Culture Structure and Budgeting Prior to Study
26
The Control Problem
27
The Core Control System and Budgetary Control
28
Discussion of the System
29
CONCLUSION
31
ENDNOTES
33
REFERENCES
35
THE ROLE OF PLANNING IN CONTROL
37
COMPONENTS OF THE PLANNING SYSTEM
38
Key Result Areas
41
Objectives and Goals
42
STEPS IN THE PLANNING PROCESS
43
Concept of Business
45
Corporate Mission
47
Goals
49
THE FUNCTION OF PLANNING IN CONTROL
50
ENDNOTES
51
REFERENCES
52
THE ROLE OF MEASUREMENT AND FEEDBACK IN CONTROL
53
Behavioral influence as the Raison detre of Organizational Measurement
54
THE PSYCHOTECHNICAL SYSTEMS FRAMEWORK
55
Domains of Measurement
56
Elements of Measurement
57
MEASUREMENTS PROCESS FUNCTIONS
58
Criterion Function in HumanResource Management
60
The Catalyst Function
61
The Set Function
62
Motivational Function in HumanResource Management
63
Measurements Medium As Its Message
65
MEASUREMENTS OUTPUT FUNCTIONS
66
CONCLUSION
67
ENDNOTES
68
REFERENCES
70
THE ROLE OF EVALUATION IN ORGANIZATIONAL CONTROL
71
Definition of Evaluation System
72
METHODS OF EVALUATION
73
Judgmental Evaluations
74
Organizational Measurements
75
SUMMARY
93
INSTRUCTIONS FOR ALTERNATION RANKING REPORTS
95
ENDNOTES
96
REFERENCES
97
THE ROLE OF REWARD SYSTEMS IN CONTROL
99
Types of Rewards
100
ROLE OF REWARDS AS A COMPONENT OF CONTROL SYSTEMS
101
Compensation as a Reward System
102
Summary
104
STRATEGIC USE COMPENSATION AS REWARD
105
Compensation Strategy
106
Promotion as a Reward
107
Design of PromotionReward Systems
109
Strategic Use of Promotions
110
Complementary Functions of Reward Systems
111
SUMMARY
112
ENDNOTES
114
REFERENCES
115
THE ROLE OF ORGANIZATIONAL STRUCTURE AND CULTURE IN CONTROL
117
Factors Influencing Structures of Roles
118
Strategic Use of Organizational Structure in Control
121
The Elements of Culture
122
STRATEGIC USE OF CULTURE IN CONTROL
123
ENDNOTES
125
REFERENCES
126
THE ROLE OF ACCOUNTING SYSTEMS IN ORGANIZATIONAL CONTROL
127
BUDGETARY CONTROL SYSTEM
128
RESPONSIBILITY ACCOUNTING
132
STANDARD COSTVARIANCE CONTROL SYSTEMS
133
Types of Variances
134
CONCLUSION
136
ENDNOTES
137
REFERENCES
138
THE DESIGN AND EVALUATION OF EFFECTIVE CONTROL SYSTEMS
139
Behavioral Comprehensiveness
140
Behavioral Reliability
141
Measurement
143
Control in Absence of Formal Control Systems
144
Control in the Absence of Behavioral Comprehensiveness
147
Problems When Culture and Core Control Systems Are Not Synchronized
148
THE OVERALL CONTROL SYSTEM
150
Development of Control Systems
151
Improvements in the Control System
152
CONCLUSION
154
ENDNOTES
155
REFERENCES
156
BIBLIOGRAPHY
157
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