Management Control Systems

Hannah Wittman

29 October 2014

Management Control Systems Essay

Management control systems can look different between companies depending on what an organization’s goals and strategies are. Control systems can also depend on what the internal structure of the company is and what type of environment employees are working in. In most cases, a control system is put in place to set a uniform stand within an organization. The hope is that a management control system will result in an increase in productivity, moral, sales, decrease in cost, or whatever the goal of the company may be.

In this article, published by the Chicago Tribune, Reynolds and Reynolds, set up a management control system in order to improve operations at their plant.

Because the plant has a small number of people working at it (only 45) and they are non-union, manager Randall Selleck was able to set up a control system entirely based on current employees forming a team. Reynolds and Renolds’ problems unfolded after management realized that the employees in the plant were working without a common goal. The company has two units, a distribution unit and a repair unit. These two units were not communicating, so when problems arose, each unit was putting blame on the other. This is when Selleck decided to make the decision to create his control system and increase communication and decision making between distribution, repair, and internal engineering.

Selleck believed that a bottom-up approach would be best because the workers know best how to produce their computer systems. At first, the system lacked luster and enthusiasm, but eventually, employees were taking ownership of their problems and funneling new ideas to management in order to streamline operations and cut costs. Employees came up with small, reasonable ideas that have turned into financial gain and efficiency for the company. For example, the company has a goal of not increasing their work force, so the employee task force...