Thursday, February 27, 2020
The Importance of Management Control on the Organisation Research Paper
The Importance of Management Control on the Organisation - Research Paper Example This paper illustrates that management control was defined as Ã¢â¬Å"the process by which managers assure that resources are obtained and used effectively and efficiently in the accomplishment of the organizations' objective". The twin objectives of efficiency and effectiveness are obvious and as to which should be given importance between is silent on the definition and this is one of the issues that this paper will tackle. It may be seen in the definition that the accomplishment of both effectiveness and efficiency are necessary if management control is to be considered as such. Accomplish both objectives are easier said done. Effectiveness may refer to getting things done but in so doing the same may result in inefficiency as the latter concept has something to do with cost-effectiveness or doing something at the least cost. The need therefore to strike the balance between the two objectives becomes necessary. Just like any other concept which evolves over time, management control Ã¢â¬â¢s definition was later found modified in the light of the bigger role that it plays in organization management by connecting the control systems within implementing strategy. Thus, after about three decades after the definition made earlier, management control was defined as Ã¢â¬Å"the process by which managers influence other members of the organization to implement the organization's strategies." One cannot discuss therefore the concept of management control without regard for the correct organizationÃ¢â¬â¢s strategies. Strategies, of course, may have its basis from external and internal environments of the organization. By dealing with strategies it would, therefore, expand the traditional or limited definition of management control. Management control necessarily connotes measurable objectives to attain and therefore accounting information which is quantitative in character and therefore measurable should be easily accepted as part of the concept of control.