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Definition and Nature of Management Control

Management control involves monitoring performance, comparing it to standards, and correcting deviations to ensure employees' actions align with organizational values. It establishes performance standards, measures and reports actual performance, and takes actions to correct deviations from standards. Properly controlling working capital through activities like financing, inventory management, and payment processes helps ensure operations run efficiently and profitably. The same control techniques are used across areas like financial resources, office management, and quality assurance.

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Selina Marra
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512 views

Definition and Nature of Management Control

Management control involves monitoring performance, comparing it to standards, and correcting deviations to ensure employees' actions align with organizational values. It establishes performance standards, measures and reports actual performance, and takes actions to correct deviations from standards. Properly controlling working capital through activities like financing, inventory management, and payment processes helps ensure operations run efficiently and profitably. The same control techniques are used across areas like financial resources, office management, and quality assurance.

Uploaded by

Selina Marra
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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DEFINITION AND

NATURE OF
MANAGEMENT
CONTROL
Controlling
A management fuction involves
ensuring the work performance of
the organization’s members aligned
w/ the organization’s values and
standards through
monitoring,comparing,and
correcting their and actions.
Importance of
Management Control
Management control makes sure that the firm’s operating each
flow is sufficient, efficient, and if possible , profitable whwn
invested.
Working capital, when properly controlled, must adequate
enough for daily operations such as financing, inventories, credit
payments to suppliers, reinvestment of cash surplus, and salaries
of employees, or in general, maintaining an acceptable capital
stracture.
The Control Process
The control process
Control tecniques use for controlling financial resources, office
management, quality assurance , and others are essentially the same.
ESTABLISHING STANDARD

Means setting criteria for performance. Managers must


identify priority activities that have to b controlled ,followed by
determining how these activities must be properly sequenced.
In doing so, managers will be able to set performance
standards that need to be achieve.
MEASURING AND REPORTING ACTUAL
PERFORMANCE COMPARING IT W/ SET STANDARD
Is essentially the monitoring of performance. To be able to do
this, managers must develop appropriate informations which
will help them identify, collect, organize, and disseminate
information. Managers are able to control facts and figures
called data, and information ,which have have been giving
meaning and considered to have value. Analyses of
data/information gathered measure actual performance and
comparing it w/ set standard serves as detecting deviations.
TAKING ACTIONS
Involves the corrections of devations from set standards.
This activity clearly show the control fuctinon of
management . Managers may rectify deviations by
modifying their plans or goals,by providing the training
of employee, by firing inefficient subordinates,or
practicing more effective leadership tecniques.

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