Elements of Implementing Management Control System

Core elements of Implementing Management Control System

Core elements of Implementing Management Control System

For MCS, three core elements can determine the success and the effectiveness of this framework. They should be at the heart of your strategy from the start. The three are:

  1. The MCS is aligned with the organization’s strategies and goals-

    Before the implementation of the system, you need to understand and outline the current strategies in use, as well as define the objectives the organization wants to fulfill. These need to be the overall operational goals and not simply the aims you have for the MCS. It’s crucial to ensure the framework you choose to implement is in harmony with these existing processes and objectives. If the processes are not aligned, then your MCS will end up being ineffective or insufficient for your needs. It’s important to understand that the implementation of the system does not require the organization to change its core policies or redirect its objectives, but that the system can be made to fit within the current system. MCS is not there to transform the organization, but ensure it operates with maximum efficiency.

  2. Designed to fit the organizational structure-

    Furthermore, the MCS must consider the current organizational structure carefully. You want the management control system to fit the how the company operates and how it has structured these operations, especially in terms of its management. The key part of this is the understanding of the decision-making structures currently in place. It’s essential to create a management control system, which understands these decision-making structures and enhances them, instead of turning them around or hindering them. This can easily be done through the study of management structures and aligning the new model by dividing the responsibilities according to these structures. The control shouldn’t shift from the current models; it just will become more focused under the new system.

  3. Motivate people through different reward systems-

    The final key element of the implementation should be focused on the reward structures you will use as part of MCS. The idea of the system is about motivating the managers, as well as the subordinates, to work towards attaining the organizational goals in place. The effectiveness of the motivation can be improved by tying a variety of rewards to the achievement of these goals. The rewards themselves can change and include a variety of different types, depending on the task achieved or the performance the person displays. They can be purely monetary rewards, such as bonuses or increases in salary, or have a more material benefit, such as access to gyms or health clubs or updates on tools and other equipment. Furthermore, you should also have clear promotional structures in place to reward and motivate those people that show the highest productivity and creativity.

Later in the article, we’ll discuss some of the other factors that influence the implementation of MCS. But the above are the elements you need to focus on when applying the system within your organizations and the key factors, which can guarantee a successful implementation. If you focus on the above factors during the implementation process; you can start enjoying some of the benefits management control systems provide for or organizations.

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