Mcs Notes

The summary of Management Control Systems – Kenneth A. Merchant [Prentice Hall] Summarized by Mooyoung Son Linkoping University SMIO 2009 http://cyworld.com/zekison

The summary of Management Control Systems

– Kenneth A. Merchant [Prentice Hall]

Summarized by Mooyoung Son

Linkoping University SMIO 2009

http://cyworld.com/zekison

Chap 1 : MANAGEMENT AND CONTROL

1)

Causes of Management

-Lack of Direction

-Motivational Problems

-Personal Limitation

2)

Avoidance

-Activity elimination : Eliminate what is not working properly

-Automation

-Centralization

-Risk Sharing

Chapter 2 SECTION II

3)

Result Control : Preventive type Control

Helps Mgr to address strategy, org, employees are performing

- Steps :

1. Define Performance dimension

2. Measure Performance

3. Setting Target

4. Provide Reward

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Requirement for Effective Result control :

- Knowledge of desired result : Org should know what result are desired

- Ability to influence desired result : Employee have influence on result (Controllable)

-Ability to measure Controllable result effectively : Org can measure result effectively (Measurable)

 Result measure should be : Precise, Objective, Timely, Understandable

Chapter 3

4)

Action Control : To ensure employees act in org’s best interest

a. Form of Action control

- Behavioral constraints – Negative Form (You can’t do this You can’t do that)

- Pre action Review – Scrutiny(详查정밀조사) of action plan (What will they do?)

- Action Accountability – (의무義務) Hold employees for action required (You should do this and that)

 Requires : Define actions acceptable or unacceptable

Communicate definitions to employees

Observe what happens (reaction)

Reward or Punish

- Redundancy (과잉過剩) : Set more Human resource than what they need (Backup)

b. Requirement for effective action control :

- Knowledge of desired action

- Ability to ensure that desired actions are taken

5) Personnel Control: Build employees’ natural tendency...