Tuesday, February 10, 2009

Management Control System

Management control systems function in three ways. They measure performance, judges it against criteria and suggests improvements or changes. Control is possible only when these functions are taken proper care of. It begins with the measurement of performance of workers. The system devises a method to estimate how much work has been done and how well it has been done. Obviously, it will need criteria to match performance with. Otherwise, it cannot simply function. Of course, these criteria are made ready by an arm of the management other than the control system.
Now, the system measures and records performance over a given period. Once this process is complete, the process of evaluation begins. Recorded performance is matched with the expected standards; conclusions are drawn about the level and the quality of jobs done.
Next, several suggestions or recommendations are made to ensure corrective action. For instance, workers may undergo retraining. Supervision may need to be stepped up. New equipment may be necessary. Or the operational processes may need revision. Further, it may be necessary or desirable to take another look at the standards set for output or quality. Even management goals may require modification or transformation.