Management Planning And Control Essay

1410 words - 6 pages

The rapid economical development and civilization progress, as well as technological innovation and globalization have encouraged the need for mgt control arising to give companies the opportunity of greater growth and expansion than what have been possible earlier. Since Weber's golden age, the strong belief in bureaucracies has been torn down. Burns & Stalker (1961) suggested that bureaucracies limited effectiveness and flexibility of post-industrial and fast-pace businesses. This reform in organizational structures has also exerted significant influence on the evolution of management control system (henceforth MCS). The development of the modern capitalism economy provides a rich ...view middle of the document...

For implementing MCS it is necessary to be aware of what is desired from the MCS and what is likely to happen while utilizing the MCS. As described by Merchant and Van der Stede(2012) the need for MCS can be categorized into three class: 1. lack of direction 2. motivational problems 3. personal limitations Lack of direction might lead to the situation where the individuals do not know what are expected for them. Motivational problems might caused by the conflict between individuals' and organization's interests. Personal limitations might prevent individuals from achieving targets. The primary focus of the MCS must be put on the areas where the control problems might occur, then two fundamental decisions (i.e. the choice of controls and the degree of tightness or looseness) must be made as a result. Four mgt control alternatives ( i.e. result controls, action controls, personnel and cultural controls) are stated by Merchant and Van der Stede(2012), and the efficiencies of which can be adjusted and controlled by the tightness or looseness. As specified, a tight result control system must include result dimensions congruent with the organization’s true objectives, specific performance targets, feedback in short time intervals and effective communication of the desired result ( Mechant & Van der Stede, 2012). As I will argue

below, I think that all these factors are met at the stores of TML. Firstly, TML uses cost control to lower costs and increase profits so as to raise the level of enterprise and enhance its core competitiveness. Furthermore, inventory management models are adopted to reduce total supply chain costs and improve supply chain operational efficiency and increase profits. Besides, non-financial measures such as customer satisfaction index are put to use to enable them to overcome various deficiencies of financial measures to increase customers' satisfactory level. As argued by Otley (1999), the current literature of MCS studies has focused excessively on simply examining financial performance implications. He believes that it is not adequate to give “a sufficiently rich picture of the internal activities of organisations to provide reliable guidance to the designers of management control systems”. Secondly, as a specific method of performance management, target management has been proved to be an ideal way guiding employee’s performance in TML. The shopkeeper of per store has even set themselves an ambitious performance target , e.g., operating profit, now less than 3% of revenues, is to be 10% of revenues by 2015. Thirdly, TML increases the frequency of the feedback loops through 24-hour-avaliable online feedback from both employees and customers in the problem areas for the reason that short feedback loops is able to enhance control. An independent department deals with these feedbacks and updates relevant plans. Lastly, the results are communicated effectively through regular meetings per week. Because TML recognizes that...

Other assignments on Management Planning And Control

Mangement Accounting Essay

1595 words - 7 pages strategy (Kaplan and Norton, 2001, pp. 378). Functions of Management Accounting Management accounting is one of important part of accounting. To use accounting for decision making encourages its development. Management accounting’s main function is to collect accounting information which is useful for different managerial functions like planning, organization, coordination and control. Following are the other important functions of

Project Management In Public Sector Essay

3603 words - 15 pages the approved budget. It consists of resource planning, cost estimating, cost budgeting and cost control. There are three processes involved with PMBOK cost management. The first process is cost estimating. There are various methods for estimating project costs. Analogous estimating utilizes similar projects or activities and makes the estimates for the current project based upon the past results. Parametric modeling involves formula that has been

Ssss

274 words - 2 pages Supply Chain Management is the discipline related to the management of the planning, manufacturing and operations necessary to bring a product to the market place, from the sourcing of materials through to the delivery of the completed product. The deciding factor in the success or failure of any given product is in the efficiency with which it can be brought to the market place. If the revenue derived from the sale of a product does not

Sap Warehouse Management

1573 words - 7 pages warehouse function more effective and efficiently. SAP Warehouse Management System is one of those kinds of solution which fulfil all the requirement of today’s business need. The system is flexible and provides automated support to process warehouse activities. It includes planning, monitoring and controlling. As a result there has been remarkable improvement in the warehouse management process with speed and accuracy. Warehouse Management

Super Market Managing Report

935 words - 4 pages Management Principal Importance of Management Functions in a business Effective management and leadership involve creative problem solving, motivating employees and making sure the organization accomplishes objectives and goals. There are four functions of management and leadership: planning, organizing, leading and controlling. These functions separate the management process from other business functions such as marketing, accounting and

Resourceful

1007 words - 5 pages objects can be accomplished by creating a vision, company values, and a strategic plan which will explain their importance to the success of the business is sure to fail. Planning is the first function of the management process, as without effective planning one cannot effectively organize, control or lead the organization. Planning is used as a tool to help identify potential opportunities and threats as well as to reduce long term risks. Planning

Creating A Methodology

434 words - 2 pages According to the PMBOK guide, “An organization’s culture and style affect how it conducts projects. Cultures and styles are group phenomena known as cultural norms, which develop over time. The norms include established approaches to initiating and planning projects, the means considered acceptable for getting the work done, and recognized authorities who make or influence decisions.” Kerzner states, “Achieving project management excellence, or

Mgt 498 Exam

298 words - 2 pages 1) In a survey of 50 corporations, which of the following was rated as a benefit of strategic management? A. Clearer sense of vision for the firm 2) Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is B. basic financial planning 3) Strategic management is that set of managerial decisions and actions that determine the long-run performance of a corporation

Hotel Manahement

490 words - 2 pages and implementation of a project using a single system that is highly incorporated and integrated. Earned value helps in proper management, control and planning during project implementation. In addition, earned value is also preferred to other project management techniques because of its ability to provide accurate forecasts of cost estimates. According to Fleming and Koppelman (2010), earned value was introduced in project management more than

Human Resources

448 words - 2 pages , organizational, and individual factors. These three challenges are important for human resources managers to deal with effectively before they become major problems. Environmental challenges are external forces beyond management control that pose threats on the organization performance. These forces may include natural disasters, skill shortages, or workforce diversity. Organizational challenges are internal concerns that can be managed with knowledgeable

Management Planning

353 words - 2 pages can begin. The planning process sets forth a strategy for a given amount of time to achieve the businesses goal. As this process begins, the four functions of management come into play. • In order to execute the strategy at hand to achieve the goals. • Managers must formulate their plan for their workers, organize their employees based on talents to achieve the goal. • Set the plan in motion through leading the employees, motivating them

Similar Documents

Management Planning And Ethics Essay

1240 words - 5 pages impacted Arthur Andersen’s management planning. Arthur Andersen, LLP In 1913, Arthur Andersen and Clarence De Lany, accounting professors at Northwestern University, formed Andersen, DeLany & Co. A few years later, DeLany left the company; therefore the company’s name changed to Arthur Andersen. During Andersen’s control, the company’s mission statement focused on building a solid corporate culture among all Andersen employees. In 1947

Erp Software Essay

1316 words - 6 pages Planning * Manufacturing Control * Sourcing and Procurement * Project Management * Quality Management * Service Management * Engineering Data Management * Dynamic Enterprise Modeling ERP Enterprise is proven across a wide range of engineering-based industries, including automotive, industrial equipment and machinery, high tech  and electronics and aerospace and defense. It has more than 25 years of manufacturing know

Failure Of Bhopal Essay

624 words - 3 pages Case Study Failures of Bhopal Identification of Problem and Decision Objective: Situation Problem: Bhopal’s inadequate management style in controlling the following aspect: • Lack of planning strategies • Poor communication system • Inadequate plant maintenance • Poor quality of workforce • Profit oriented neglecting wellness of workers • Budget conscious and take

Dlis Risk Managment Analysis Outline

532 words - 3 pages determine the effectiveness of our program. 2. COBIT: I. Control Objectives for Information and Related Technology, contains good practices for IT management provided by ISACA. Provides a extensive framework for ensuring your IT is being used to support your organization in the best possible manner. Key Responsible individuals: A. IT manager –planning, budgeting, performance of information systems security. B. Senior Management