Essay - Importance of Management Control Introduction: Doing Business Is Simply Mathematics...

Importance of Management Control

Introduction:

***** business is simply mathematics by other means - all a question ***** keeping equations in balance on both sides. Labor must be balanced with capital. Resources with allocation. Customers with services or goods. Workers ***** rewards.

The only way that such balances can be instituted and maintained is through a system of management control. At the heart of any well-run business operation ***** a sound theory of ***** ***** over*****ll operating strategy. This paper looks at the importance of management control to the running of any business and examines how the process of control has changed with the introduction of ***** internet.

The effectiveness ***** ***** ***** control system is subject ***** a num*****r of different factors. This means that even the best designed management ***** system will not be useful unless it is properly employed. Variations in the ***** of systems result from:

Management's attitudes, *****liefs, and practices;

Organizational structure and accountability;

***** ***** scope of the governing body and management committees; and Degree of external oversight.

Elements ***** ***** System: Detector, Assessor, Effector

***** management control system contains a number of different elements. While *****y may take various ***** specific forms within a specific business, they can also be described on a more abstract level.

***** first essential element is a detector. ***** ***** simply a series on internal *****s that allows a company to detect or sense irregularities and problems as soon as ***** crop up ***** before they have begun to affect clients or customers. The next ***** step of management control is an *****sessing element. This ***** ensures that the exact nature ***** the problem that has been detected can be ascertained. *****se two elements are ***** *****low:

Firms need to establish a mech*****nism ***** ensure that they have internal accounting controls and risk management controls. Supervis*****s need to establish a mechanism ***** ensure ***** the entities they regulate have internal accounting controls and risk ***** controls. The supervisory mechanism need not prescribe ***** and detailed *****, but rather provide general guidance to firms.

Management control systems must also have "effec*****rs," which are mechanisms that allow not only for *****s to be identified but also for them to be resolved or removed. This element of the management control system is descri*****d below:

***** and supervis*****s ***** to determine ***** controls are set and monitored at the senior ***** level at a firm; responsibility for monitoring controls is cle*****rly defined; ***** senior management promotes a culture ***** controls at all *****s ***** a firm.

And, finally, none of these three ***** ***** management control ***** be of any use whatsoever unless they ***** linked with each ***** and with other elements of the company through a vi*****ble communications network.

The software tool ***** helped to improve efficiency in project work by allowing different *****s to 'talk' to one a*****her. The passing of information between systems has meant there is less re-keying ***** *****.

Mr. McCombie added: "We can download information