COMM-2016EL Study Guide - Final Guide: Management Control System, Inventory Turnover, Profit Center

• School: Laurentian
• Department: Commerce and Administration
• Course: COMM-2016EL
• Professor: Kayla Levesque

Document Summary

The management control system determines: how information is gathered, who gets that information, what they are expected to do with it! Management control is defined as the process by which managers influence members of the organization to implement the organizations strategies efficiently and effectively. The control system is what moves an organization forward! The following points should be considered when designing the management control system: the fundamental design must fit the organization"s structure; and, the fundamental design should make goal achievement possible; ie . It should motivate managers and employees to work towards the organization"s goals (goal congruence) with committed effort! Responsibility center- most large organizations separate each department into organization units. Each unit is headed by a manager who is responsible for the work done by the unit; each unit is therefore called a responsibility center. Managers are responsible in the sense that they are held accountable for activities of their organization unit.