Scope of Mgt.

Control System
Strategy Formulation/Strategic Planning –
Setting Vision, Mission, Goals,
Strategies & Policies

Management Control–
Implementation of Strategies

Task Control–
Efficient and Effective performance
of Individual Task

Oct 17, 2008 hmahesh45@yahoo.com, VIM Pune 1

 Scope of Mgt. Control System
Characteristic Strategy Formulation V/s Management Control

1. Focus Decide New Strategy Implement the Strategy

Unsystematic/Unstru Systematic, Sequential

2. Approach
ctured Steps

3. Evaluation
Judgment structured rules
Basis

Time bound Reliable

4. Quantification Rough estimates
estimates

5. People Idea Sponsor & few

Managers and their staff
Involved top peoples

Oct 17, 2008 hmahesh45@yahoo.com, VIM Pune 2

 Scope of Mgt. Control System
Characteristic Strategic Planning V/s Management Control
One aspect at a
1. Focus of Plan On whole organization
time
2. Complexity Many variables Less variables
3. Environment
More uncertain Highly certain
Certainty
Unstructured,
Systematic, prescribed
4. Approach unsystematic,
methods
creative
Tailor made for
5. Nature of Integrated, internal,
problem, external
Information. historical, more accurate
and subjective
6. Communication
Simple Difficult
of Information.
Oct 17, 2008 hmahesh45@yahoo.com, VIM Pune 3
Continued SP V/s MC

Scope of Mgt. Control System

7. Purpose of Show expected
Lead to desired result
estimate results
8. People Staff & Top Middle Management &
involved. management Line Management
9. Source Creative and Administrative and
discipline. persuasive Analytical
10. Planning and Emphasizes both
Planning is dominant
Control planning and control
Long term 3 – 10
11. Time horizon 1 - 3 years
years
Objectives, Policies Actions within policies
12. End results
and Procedures and procedures
13. Performance Extremely difficult to
Less difficult to measure
appraisal measure

Oct 17, 2008 hmahesh45@yahoo.com, VIM Pune 4

 Scope of Mgt. Control System
Characteristic Management Control V/s Task/Operational Control

1. Objective Effective and efficient Efficient execution of task.

utilization of
resources.

2. Focus of Total Operation e.g. Single task e.g. Quality

Activity Production Test for Job X001
Department

3. Basis of Judgment/Subjective Rule oriented/Strictly

Decision Objective

Oct 17, 2008 hmahesh45@yahoo.com, VIM Pune 5

Continued MC V/s OC

Scope of Mgt. Control System

4. Information Integrated Tailor made to specific
Task
5. Influenced by Managerial Behavior Scientific rules/Rational

6. Who Involved Management Supervisors

7.Source Social/psychological Economics

Discipline

8. Time Weeks, months, Day to day

years
9. Cost type Discretionary/Engine Engineered
ered

Oct 17, 2008 hmahesh45@yahoo.com, VIM Pune 6

 Scope of Mgt. Control System

Management Control is the middle

management’s prerogative. Examples -

1. Expansion through merger and acquisition.

2. Chalk out and Carry out a merger implementation program
3. Execute the documents

1. Enter a new market.

2. Establish a sales plan for new area.
3. Organize a sales peoples’ orientation program for new area.

Oct 17, 2008 hmahesh45@yahoo.com, VIM Pune 7

 Thank You.

Oct 17, 2008 hmahesh45@yahoo.com, VIM Pune 8