RSM422H1 Lecture Notes - Lecture 1: Philip Green, British Home Stores, Arcadia Group
12 Feb 2017
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Management control: process by which managers influence other members of the organization to implement the organizations" strategies. Crucial roles include: accounting, compensation incentives, leadership, language and communication in making the organization succeed (or, at times, fail!) Risk, culture, and information technology are pervasive influences on mc, and vice versa. Management control can be policies, tools, and procedures that are employed. Mcs is more that a simple process, it has many of the following components: Encouraging, enabling, forcing employees to act in the organization"s best interest. Proactive controls: designed to prevent problems before the organization suffers from adverse effects on performance. Planning processes, required expenditure approvals, segregation of duties, and restricted access. Mc - incl. devices or systems managers use to ensure that the behaviours and decisions of their employees are consistent with the organization"s objectives and strategies. For example: birch paper company has three divisions and for internal purposes, each division will have their own balance sheet.
