1. Management Control Systems -An Introduction

2. Elements of Control Systems  Measure what is actually happening -Detector  Comparing it with what should be happening- Assessor  Alters behaviour if assessor so desires- Effector  Transmit information between the detector and the assessor and between the assessor and the effector- Communication network

3. Why do organisations need control  It is expensive to keep controls  It is cumbersome to make investment in systems and processes  Possibilities of failure of controls

4. MCS vs other simpler control Systems  Standard is not preset- It is a subjective decision of the management  Management control is not automatic-It involves lot of discretionary decisions of the manager  Coordination among individuals and people management  The connection from perceiving the need for action to determining the action required for the desired result may not be clear  Most of Management Control is self control- judgement is the key.

5. System  Systems would depend upon:  skill sets of people involved  Interpersonal relationships  Work environment  Extent of formalisation of procedures and controls

6. Emphasis of MCS  Emphasis on bottom line  Non Financial- Product quality, market share, customer satisfaction, employee morale etc.