MANAGEMENT

CONTROL SYSTEM

Dosen & Literature

DR Rubiandini SE, Msi, Ak, CPA

Wiyas Yulias Hasbu ,SE,MBA, Ak

1.Anthony, Robert, Govindarajan .Management

Control System,

McGraw Hill
2..Maciaciello

Management Control System, Prentice Hall

3. Kenneth A Merchant & Wim A. Van der Stede 3 rd edition
Management Control System : Performance Measurement,
Evaluation, and Incentives
4. Robert Simon, Prentice Hall, International Edition
Performance Measurement & Control Systems for
Implementing Strategy : Text and Cases,

The Nature of Management

Control System

Management Control is a must in any

organization
Management Control is critical function in
organization
Elements of Management Control
System, included :
1. Strategic planning
2. Budgeting

Elements of Management
Control System ( Continued)
3.
4.
5.
6.
7.
8.

Resource allocation
Performance measurement
Evaluation
Reward
Responsibility center allocation
Transfer pricing

Basic Concepts

Control ( Pengendalian )
Pengendalian

adalah
pemikiran
untuk
mengarahkan suatu variabel atau sekumpulan
variabel untuk mencapai tujuan tertentu.

Pengendalian Strategi adalah semua metode

dan analisis yang digunakan untuk memantau,

mengevaluasi dan memodifikasi strategi.
Pengendalian Organisasi adalah mengarahkan

sekumpulan variabel ( mesin,orang, peralatan)

menuju sasaran yang telah ditetapkan.

Basic Concepts

Pengendalian
manajemen adalah semua metode,
prosedur dan sarana termasuk sistem pengendalian
manajemen yang digunakan manajemen untuk
memastikan dipatuhinya kebijakan-kebijakan dan
strategi-strategi organisasi.

Sistem Pengendalian Manajemen adalah suatu proses

dan struktur yang tertata secara sistematik yang
digunakan
manajemen
dalam
pengendalian
manajemen.
_____________
Sumber
: Anthony,Dearden,Bedford, Management
Control System, 6th Edition (Alih Bahasa Agus Maulana )

Basic Concepts
Elements of control system :
1. Detector or Sensor
2. Assessor
3. Effector
4. Communication network

Elements of
Control
Process

Control
device

Assessor
Comparison with
standard

Detector
Information about
what is happening

Effector
Behavior alteration, if
needed

Entity
Being controlled

Basic Concepts

Management
An organization consist of a group of people
who work together to achieve certain common
goals .
Organizations are led by a hierarchy of
managers with CEO at the top.

The management control process is the

process by which managers at all level
ensure that the people they supervise
implement their intended strategies.

Basic Concepts

Significant differences between

management control process and the
simpler processes.
Standard is not preset.
Management control is not automatic,
Management control requires coordination
among individuals,
The connection from perceiving the need for
action to determining the action required to
obtain the desired result may not be clear,
Much management control is self- control

Basic Consepts

System

A system is a prescribed and usually repetitious

way of carrying out an activity or a set of activities.
Many management actions are unsystematic.
Management actions depend on among others
factors, on the skills and personalities of the people
involved, their relationship with one another and
environment.
Informal process are strongly affected by the way
the organizations formal control are designed and
operated.

Boundaries of Management
Control

Management control fits between

strategy formulation and task control.
Management control lies in between :
Systematic ( task control ) and least
systematic (strategy formulation )
Short -run ( task control) and long-run
( strategy formulation ) activities,
Uses current accurate data ( task control )
and approximations of the future ( strategy
formulation )
Planning process ( strategy formulation ) and
control process (task control )

General Relationships among

Planning and Control Functions
Activity
Strategy
Formulation

Nature of End Product

Goals, strategies and policies

Management
Control

Implementation of strategies

Task Control

Efficient and effective

performance of individual tasks

MANAGEMENT CONTROL

Management control is the process by which

managers influence other members of the
organization to implement the organizations
strategies.
Management Control activities involves :

Planning what the organization should do,

Coordinating the activities of several part of the
organization,
Communicating information,
Evaluating information,
Deciding what, if any, action should be taken,
Influencing people to change their behavior.

MANAGEMENT CONTROL

Goal congruence

The goal of an organizations individual members

should be consistent with the goals of the organization
itself.

Tool for implementing strategy

Management control focuses on strategy execution.
Management controls are only one of the tools
managers use in implementing desired strategies but
strategies also implemented through the
organizations structure , management of human
resources and culture.

Financial and non financial emphasis.

Aid in developing new strategies.

MANAGEMENT CONTROL
Implementation Mechanisms
Manageme
ntcontrols

Strategy

Human
Resources
manageme
nt

Organizatio
n structure

Culture

Performan
ce

STRATEGY FORMULATION

Strategy formulation is the process of

deciding on the goals of the organization
and the strategies for attaining these
goals.
Strategies state in a general way the
direction in which senior management
wants the organization to move.
The need for formulating strategies
usually arise in response to a perceived
threat or opportunity.

Management Control versus

Simpler Control Process
SIMPLER CONTROL
PROCESS

MANAGEMENT CONTROL

Standard is as a result of
planning process
Not automatic
Require coordination
among individuals
The action required to
obtain the desired result
may not be clear
Self control

Standard is preset

Automatic
Performed by a single
individual
The action required is clear

Controlled by external
regulating device

Management Control vs
Strategy Formulation
MANAGEMENT CONTROL

Process implementing
strategies
System design
-Systematic

STRATEGY FORMULATION

Deciding on new strategies

System design
Unsystematic
Analysis much judgment,
rough estimates, involves
managers and staff at all
levels

Analysis predictable,
reliable estimates,
involves few people

TASK CONTROL

Task Control is the process of ensuring

that specified tasks are carried out
effectively and efficiently,
Task control is transaction oriented , it
involves individual performance,
Task control activities are scientific and
operation research techniques i.e EOQ,
Most of the information in an organization
is task information , i.e cash disbursed.

Task Control vs Management

Control
TASK CONTROL

MANAGEMENT CONTROL

Never be reduce to a
science

Managers interact with

other managers
Focus on organizational
unit

Scientific
Manager interact with
non manager
Focus on specific task
Concern
task

with

specified

Concern with the broadly

activities of managers

Pengendalian Manajemen vs
Pengendalian Akuntansi
PENGENDALIAN AKUNTANSI

PENGENDALIAN MANAJEMEN

Menekankan pada
tindakan tindakan untuk
mencegah kesalahan
(tidak disengaja) dan
penyimpangan
penyimpangan ( yang
disengaja)

Diarahkan kepada hal

yang positif untuk
mendorong, membantu
dan memotivasi manajer
dan karyawan untuk
melaksanakan dan
mematuhi strategi
organisasi.

Pengendalian Tugas vs
Pengendalian Akuntansi
PENGENDALIAN TUGAS

Menggunakan
informasi sebagai
umpan balik
dibandingkan
dengan standar
kinerja.
Menggunakan data
keuangan dan non
keuangan

PENGENDALIAN AKUNTANSI

Menggunakan
informasi untuk
mengamankan asset ,
akurasi dan reabilitas
laporan keuangan
Menggunakan data
keuangan.

SISTEM PENGENDALIAN
MANAJEMEN

Suatu Sistem terdiri dari struktur atau desain tata

hubungan diantara beberapa komponen dan proses
atau sekelompok kegiatan yang dilakukan sistem itu.
Struktur pengendalian manajemen dipusatkan pada
Responsibility Center yaitu suatu unit organisasi yang
dikepalai oleh manajer yang bertanggung jawab.
Proses
Pengendalian
Manajemen
melibatkan
komunikasi dan interaksi informal
dikalangan
manajer dan karyawan.
Disamping pengendalian informal juga terdapat
pengendalian manajemen formal seperti tahap
pembuatan program dan anggaran, pelaporan serta
analisis.

CAUSES OF MANAGEMENT
CONTROL PROBLEMS
Lack of direction
Motivational problems
Personal limitations

CHARACTERISTICS OF GOOD
MANAGEMENT CONTROL

Organization must maintain good

management control,
Good control means that management
can be reasonably confident that no
major unpleasant surprise will occur.
Out of control vs good control
Perfect control vs optimal control

CONTROL PROBLEM AVOIDANCE

Acitivity elimination to third party

Automation
Centralization of decision making
Risk sharing with outside entitries

Tahap Tahap Sistem

Pengendalian Manajemen
Strategi(
1)
Pilih
program(
2)

data

Laporan
&
analisis(5
)

dat
a

Operasi
&
ukuran(4
)
dat
a

Budget(3
)

data

THANK YOU
SEE YOU LATER