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Management Controls And Management Control Systems

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According to Malmi, T., & Brown, D in 2008, “management controls include all the devices and systems managers use to ensure that the behaviours and decisions of their employees are consistent with the organisation’s objectives and strategies”. An MSC which stands for management control system is a system which collects and uses information to evaluate the performance of several organizational resources like human, physical, financial as well as the organization as a whole considering the organizational strategies. MCS is a system that will eventually affect the performance of the organization to implement organizational strategies. There is no assuredness that management control systems will always be efficient; both in terms of design and in terms of implementation. These systems can only raise the possibility of achievement of organizational objectives of effectiveness, efficiency, precision of financial reporting, and compliance. In this way, top management may face several challenges when designing and implementing effective management control systems in organisations.
Simons (1995) stated that control systems are divided into four categories, namely Diagnostic and Boundary control systems, Belief systems and Interactive systems. These four different management control systems are recognized by companies as efficient categories of controlling system; companies must practise them in a way that maximizes operational effectiveness without restricting employee creativity.

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