Management control systems Questions
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Management control systems
Ans: entire array of controls used by an organisation aiming to
influence employees behaviour in desirable ways in order for
objectives to be achieved
Types of controls
Ans: action control (behavioural)
social, personnel and cultural controls
results/output controls
Action controls
Ans: observing actions of individuals
appropriate where cause and effect relationships
e.g. assembly line work
focus should be on preventing behaviour, rather than det ecting
after occurrence
Examples of action controls
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Ans: Behavioural constraints - preventing e.g. physical -
passwords, or administrative - ceilings on amount of capital
expenditure
Pre-action reviews - examination and approval of action plans
before undertaking e.g. tutor approving dissertation plan
Action accountability - rewarding acceptable and punishing
unacceptable e.g. rules and code of conduct
Advantages of action controls
Ans: direct link between control mechanism and action
measurement problems do not apply
Disadvantages of action controls
Ans: may discourage creativity
not feasible where cause and effect relationships not clear
social controls
Ans: selection of people who have already been socialised into
adopting particular norms and patterns of behaviour
then the need for other forms of control can be reduced
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