Aspects Concerning New Trend in Management Control Systems Design and Implementation Strategy

Abstract:

This paper provides an overview on Management Control Systems (MCS), a historical review of the different trends in the control systems design and the common characteristics of main trends. MCS developed from closed and formal systems, based on cost and financial control, in complex, fully computerized, open and dynamic systems, which considers the psychosocial and cultural aspects and continuously adapt themselves to the organization’s needs. The performance level of the control system affects the success of the organization. The implementation process of MCSs, in newly acquired entities, follows about the same pattern as its development scheme, starting with the implementation of formal systems of costs and financial control followed by the development/adaptation of specific support systems for industrial areas and completed through the assimilation of the organizational culture. Although the control is one of the most important instruments, meant for achieving the objectives, it has to fulfill the efficiency principle: the costs involved with the control process cannot excess the benefits it will generate. The MCS would be adapted to the specific characteristics of the production unit, but it must retain its formal aspects to not diminish the comparability of the established key performance indicators. The performance level of the acquired entity and sociocultural aspects will determine the integration strategy, which can vary from instantly reform of whole organizational structure and practices till introducing only the performance monitoring system. The goal of the paper is to introduce the Computer Assisted MCS as a new trend in MCS design and to provide a summary of the implementation strategy as part of integration process of newly acquired entities.

• Periodical: Applied Mechanics and Materials (Volume 659)
• Pages: 595-600
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.659.595
• Online since: October 2014
• Authors: Jozsef Levente Csapo, Cornel Brisan*
• Keywords: Computer Assisted MCSs, Controlling, Integration, Management Control System (MCS), Remote Process and Management Control, Total Control

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