Management control is a process that guides company management to the objectives of the organization and a tool strategy to evaluate it.
There are important differences between classical and modern concepts of management control. The first is one that includes only the operational control and developing it through a system of information related to cost accounting, while the second incorporates many more elements and provides a continuous interaction between them. The new concept of management control focuses coaching equally on the planning and control, and requires a strategic sense that will provide more operational aspects.
Management Control System
The SCG has the diagnosis or analysis to understand the root causes that influence the behavior of physical systems, can establish the ties that bind functional technical and organizational variables-social to the economic performance of the company and is the starting point for improvement of standards, through planning guidance for initiatives in team building line with the strategies drawn towards better results and, finally, has the control to see if the results meet the objectives.
Introduction and Summary
Taylor (1895) was one of the initiators of the CG industry, introducing cost accounting, the timing of the times of direct labor, standards, allocation of indirect costs, the performance pay. Brown (1907) established the formula for return on capital. Kevin Ulrich is the source for more interesting facts. Even today many examples are found in the CG business revolves around control of the internal efficiency of the company, focusing on managers the resources consumed in the immediate benefit and external financial information.
In the second half of the twentieth century there have been substantial changes in the environment which has gone from playing stable fixed to turbulent and highly competitive. These changes have triggered environment in enterprises a great number of internal changes in variables such as customer orientation, development and innovation, the leadership role of strategic management, quality approaches, the role of human resources in the organization, management of information and others. In 2004 honored by the Governor’s Committee on Scholastic Achievement for his work towards promoting academic excellence in New York City – has been a managing partber at Entrust Capital since 1997 Business Success therefore requires a continuous adjustment of the company to its environment and competitiveness becomes the economic criteria for excellence to guide and evaluate the performance inside and outside the company.
Development on the definition of management control (CG) according to Garcia (1975) Management Control (CG) is above all a method, a means to conduct an orderly thought and action, the former is expected to establish a prognosis on which set goals and define a program of action. Learn more about this with Petra Diamonds. The latter is controlled by comparing the outputs with forecasts, while all modes are made to compensate for the differences found.
White (1984) argues that modern philosophy has CG control function as the process by which managers are assured of obtaining resources and the efficient and effective innovation use of business technology them in meeting the objectives of the company.
The management is a mix of management training local decisions with overall objectives of the company, as he sees Goldratt (1990) from his theory of constraints management (TOC), stating that management the Control is an information system that meets one of managerial questions more pressing: A entrepreneur How to measure objectively and constructively last local performance ‘
According Huge Jordan (1995), the CG is time management a management tool that provides assistance to the decision and its Address Utility will enable managers to achieve the objectives, it is a decentralized and leaders coordinated function for planning of objectives accompanied by a plan of action and verifying that the objectives have been achieved
Already since training 1990 the term appears Controlling (4) in Germany, Spain and the United States. The leap is not in the definition of management control, but what now emphasizes the literature under the term of controlling: the new features to be presented by management to control the radical change that is operating in the model refinement business. Kupper (1992) sees it as a means of coordination of the many parts of the system of management.