Management Control Systems Essay examples

1070 Words 5 Pages
There are many different types of control that can be established in an organization depending on its goals and objectives. There are many different approaches to the management controlling function. Some of these control systems are bureaucratic control, market control and clan control. All of these control systems focuses on a different part of the business depend ending the necessities of the organization in that moment. All of the control systems have their advantages and disadvantages.

The controlling function is defined as any process that directs the activities of
individuals toward the achievement of organizational goals*. The controlling function is the one that set the game rules. This function set the organizational
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This kind of control system offers empowerment to the employee; it also provides the employee with a sense of ownership of his work and environment. All of these ends up in the creation of an entrepreneur culture that is defined by the values shared of the members of the organization.

As all managerial function approaches these three systems have their advantages and disadvantages. These three systems differ in the approach of control. Some of these systems use their internal environment as the based and others use their external environment.

Some of the advantages of the bureaucratic control system are Provides a way to manage a large diversified organization. Better decisions can be made at the local level. Provides incentives to department managers and individuals to optimize their individual performances. Provides managers with the freedom to make local decisions and this will help the top management with more time to make policy decisions and engage in strategic planning. It provides the individual with explicit rules and regulations. The bureaucracy provides a low cost search acquisition and training of employees. Select employees with little screening and design a system to instruct, monitor and evaluate them. It has Greater Labor pool to select from, increased evaluation measures,

The bureaucratic controlling system has its disadvantages also. Some of the disadvantages of the bureaucratic control system lack…