Management Control

Management Control is all about two buzz words:

• Behavior
• Goals

No goals -> No strategy No strategy -> No goals No goals -> No control

Three issues relate to management control problems:

• Lack of direction
• Personal limitations
• Motivational problems

The cure:

• Activity elemination
• Automation
• Centralisation
• Risk sharing

There are a few measures to 'control' people:

• Action Controls
• Result Controls
  • Results controls can be very effective if:
    • There are no problems with personal limitations
    • Decisions can be decentralized
    • You can formulate SMART goals
    • It is possible to define a good alignment with rewards
• People Controls
  • Training, Selection,
• Cultural Controls

Depending on the type of problem, a different type of control.