Management control system influences the behavior of organizational resources to implement organizational strategies. Management control system might be introduction to management accounting horngren pdf or informal. Management control systems are tools to aid management for steering an organization toward its strategic objectives and competitive advantage.
Management controls are only one of the tools which managers use in implementing desired strategies. However strategies get implemented through management controls, organizational structure, human resources management and culture. The term black box is used to describe an operation whose exact nature cannot be observed. 1972 article “On the idea of a management control system. According to Maciariello et al. The practice of management control and the design of management control systems draws upon a number of academic disciplines.
Management control involves extensive measurement and it is therefore related to and requires contributions from accounting especially management accounting. Second, it involves resource allocation decisions and is therefore related to and requires contribution from economics especially managerial economics. Management Control as the process by which managers influence other members of the organization to implement the organization’s strategies. In this case, management accounting refers to a collection of practices such as budgeting or product costing. But management accounting systems refers to the systematic use of management accounting to achieve some goal and management accounting systems is a broader term that encompasses management accounting systems and also includes other controls such as personal or clan controls. Finally organizational controls is sometimes used to refer to controls built into activities and processes such as statistical quality control, just-in-time management. Traditionally, most measures used in management control systems are accounting-based and financial in nature.