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The Importance of Management Control on the Organisation Essay Example

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The Importance of Management Control on the Organisation

The Importance of Management Control on the Organisation. This paper illustrates that the need to strike a balance between efficiency and effective as objectives to be attained in management control can be readily appreciated in having attained the lowest cost but not having maximized revenues simply because the products were not produced and desired level of revenues were not attained. As such, management control must not only control costs and activitivities but its should take take into consideration the effectiveness in the use of management information. The use of accounting information should be properly done so that decision that would attain the objectives since the activities happened to accepted and supported by people in the organization. Strategies need to be formulated by management before they are implemented.

If the management control is necessary part of implementing strategy, there is also reason that even in the formulation stage of the strategy, management control is deemed seriously considered. On the premise that what is formulated is to be implemented, controlling the activities at the early part is deemed an inherent part of the job of managers since they would eventually make an implementation of strategies. More significant effect of the evolved definition as part of strategy is the need for management control not only inward-looking but it must also outward looking. This means that management control is also responsive to the external environment or the need to be entrepreneurial if necessary for the attainment of objectives. It would surely then involved being involved with the changing conditions of the market for which organizations would have to find themselves needing to balance their need for management control and entrepreneurship. As to accounting information in relation to management control, the former must be viewed just one of the means to accomplish the purpose of management control. However, even the design and implementation of management accounting control may actually be including difficult issues to resolve. The Importance of Management Control on the Organisation.

References

Anthony RN & Govindarajan V. (2004). Management Control Systems. Eleventh Edition. Irwin: Homewood

Anthony RN. (1965). Planning and Control Systems: A Framework for

Analysis. Graduate School of Business Administration, Harvard University: Boston

Atkinson, Anthony, et al. 2005. Management Accounting. New Jersey: Person Custom Publishing

Brigham, E. and Houston, J. (2002) Fundamentals of Financial Management, London: Thomson South-Western

Edwards, Miles, and Winterfeldt. (2007). Advances in decision analysis: from foundations to applications. Cambridge University Press

Emmanuel, C., D. Otley & K. Merchant (1990). Accounting for management control. Cengage Learning EMEA.

Helfert, E. (2001). Financial Analysis: Tools and techniques: a guide for managers. McGraw-Hill Professional

Meigs, R, Meigs, W., & Meigs, M. (1995). Financial Accounting. New York: McGraw-Hill

Nilsson, F and B. Rapp (2005). Understanding competitive advantage: The importance of strategic congruence and integrated control. Springer

Pearson, G. (1999). Strategy in Action. Prentice Hall Financial Times.

Pfister, J. (2009). Managing Organizational Culture for Effective Internal Control:

From Practice to Theory. Springer

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preview essay on The Importance of Management Control on the Organisation
  • Pages: 6 (1500 words)
  • Document Type: Research Paper
  • Subject: Management
  • Level: Undergraduate
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