Management control Process

Comparative Management Control Processes in Three Companies Operating in Saudi Arabia : The Role of Information Technology and Planning

INTRODUCTION

Background

A firm 's competitive strategy is defined by its theme-based and weighted-value proposition , but the execution of the strategy cannot be mandated by management (Forgang , 2004 . Instead , strategy-specific decisions make operational a firm 's value proposition , and the practice of strategy-specific decision-making occurs through ongoing management control systems . For this reason , management control processes are exceedingly important , both in the industrial sector and in other areas of business as

well

Following Anthony and Govindarajan (1995 , management control can be defined as a process of motivating managers to perform actions and activities in line with the goals and strategies of the organization According to this definition , an organization is `under control ' when its members do what the management wants them to do . Management control comprises various tasks , among which are (Anthony and Govindarajan 1995

Planning the future activities of the organization

Coordinating the activities of the various members of the organization

Communicating information

Evaluating this information

Deciding on the actions to be taken and

Influencing people to adapt their behaviour according to the company goals

From the definition above , it follows that management control plays a central role in managing the company 's performance and the implementation of its strategies . Therefore , it is of vital importance that management behaviour , which is stimulated by the management control system , is consistent with the strategy to be implemented (the so-called `intended strategy

Problem Statement...