Management Control Concept

The expression management control includes a set of mechanisms or management systems used by an organization to assure that the behaviors and decisions of its employees are consistent with the organization’s goals and strategies.

When correctly designed, management control systems influence the employees’ behaviors in the desired direction and, consequently, increase the probability of the organization to achieve its goals.

Merchant and Van der Stede identify as causes for the need of management control the lack of direction, motivational problems and personal limitations. The lack of direction arises from the fact that the employees don’t have knowledge of what the organization is expecting from them. The motivational problems result from situations in which, even though the employees have knowledge of what is wanted from them, don’t act in conformity with the organization’s goals, since the personal and organizational goals cannot match. At last, personal limitations result from situations in which the employees, having knowledge of what the organization expects from them, and even finding themselves motivated to perform the desired tasks, are however unable to achieve the goals, due to personal character limitations (for example, lack of experience, training or knowledge).

 

Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt.