Mcs Notes

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The summary of Management Control Systems – Kenneth A. Merchant [Prentice Hall] Summarized by Mooyoung Son Linkoping University SMIO 2009

The summary of Management Control Systems
– Kenneth A. Merchant [Prentice Hall]
Summarized by Mooyoung Son
Linkoping University SMIO 2009 Chap 1 : MANAGEMENT AND CONTROL

Causes of Management
-Lack of Direction
-Motivational Problems
-Personal Limitation


-Activity elimination : Eliminate what is not working properly
-Risk Sharing

Chapter 2 SECTION II

Result Control : Preventive type Control
Helps Mgr to address strategy, org, employees are performing
- Steps :
1. Define Performance dimension
2. Measure Performance
3. Setting Target
4. Provide Reward

Requirement for Effective Result control :
- Knowledge of desired result : Org should know what result are desired
- Ability to influence desired result : Employee have influence on result (Controllable)
-Ability to measure Controllable result effectively : Org can measure result effectively (Measurable)
 Result measure should be : Precise, Objective, Timely, Understandable

Chapter 3

Action Control : To ensure employees act in org’s best interest
a. Form of Action control
- Behavioral constraints – Negative Form (You can’t do this You can’t do that)
- Pre action Review – Scrutiny(详查정밀조사) of action plan (What will they do?)
- Action Accountability – (의무義務) Hold employees for action required (You should do this and that)
 Requires : Define actions acceptable or unacceptable
Communicate definitions to employees
Observe what happens (reaction)
Reward or Punish
- Redundancy (과잉過剩) : Set more Human resource than what they need (Backup)
b. Requirement for effective action control :
- Knowledge of desired action
- Ability…...

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