The main management control techniques
Posted: Sun Mar 16, 2025 9:28 am
The dynamic and continuous process of monitoring performance and adjusting actions to ensure desired business outcomes is called management control . This mechanism allows companies to assess progress toward their objectives in real time, identify potential deviations, and implement timely corrections.
Management control: definition and objectives
Management control can be defined as the set of systems, processes, practices, and tools that enable managers to effectively manage the company, achieving established objectives within established timeframes . These include accounting methods and tools, as well as those for measuring performance and business KPIs.
Therefore, the main objective of management control is to create and develop organizational coherence, consistency in decision-making, and convergence of objectives across different business units within an organization in an economically viable manner. In practice, this is achieved through four actions:
Identify the causes of deviations (i.e., differences between the company's actual results and chinese overseas british database established plans, which can be both positive and negative, ed. ) and the deficit sectors in order to be able to intervene quickly.
Measure the performance of individual areas of the company by evaluating the integration of external collaborators, when necessary, in order to increase production capacity.
Optimize the management of the company's productive and economic resources .
Provide support to company management in defining strategic objectives.
Management control and financial management of the company.
Management control and financial management of a company are two closely related activities. Why? Financial control refers to issues that can influence a company's activity in terms of the evaluation, allocation, and use of economic resources, while management control is a comprehensive activity, an exercise that also includes financial control.
Management control: definition and objectives
Management control can be defined as the set of systems, processes, practices, and tools that enable managers to effectively manage the company, achieving established objectives within established timeframes . These include accounting methods and tools, as well as those for measuring performance and business KPIs.
Therefore, the main objective of management control is to create and develop organizational coherence, consistency in decision-making, and convergence of objectives across different business units within an organization in an economically viable manner. In practice, this is achieved through four actions:
Identify the causes of deviations (i.e., differences between the company's actual results and chinese overseas british database established plans, which can be both positive and negative, ed. ) and the deficit sectors in order to be able to intervene quickly.
Measure the performance of individual areas of the company by evaluating the integration of external collaborators, when necessary, in order to increase production capacity.
Optimize the management of the company's productive and economic resources .
Provide support to company management in defining strategic objectives.
Management control and financial management of the company.
Management control and financial management of a company are two closely related activities. Why? Financial control refers to issues that can influence a company's activity in terms of the evaluation, allocation, and use of economic resources, while management control is a comprehensive activity, an exercise that also includes financial control.