Management Control Systems Design

Management Control Systems Design 1
MANAGEMENT CONTROL SYSTEMS DESIGN.
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Management Control Systems Design 2
PART TWO: Management Control Systems.
Management control systems are primarily organizational development tools. For
instance, they are designed with a primary motive of enhancing the management and control of
an organization. Notably, the systems also undertake the measurement of how well
organizational activities are performed concerning the achievement of corporate objectives.
Furthermore, the management and control are aimed at the realization of organizational goals
and operational efficiency. Besides, keeping the diversity of global organizational entities, their
structures and the area of specification they explore, there can be various types of management
control systems. The management systems moreover, can have varied impacts and outcomes on
an organization depending on the type and the suitability in an organization (Lueg and Radlach
2016).
Notably, the design and feasibility of a management control system in most cases is
greatly dependent on various factors. Most importantly, the ability to address specific
management issues concerning personnel, actions, operations and notably the ability to align
with the organization objectives in terms of staff, activities and operational control and
development. Besides, the systems are influential in managerial decisions by the executive
company officials. The importance of the methods is also derived from the existing impacts of
organizational management failure. Therefore, the MCS systems are designed and implemented
to control the probability of mismanagement effects like financial losses and damaged
reputation.
Before introducing our Management control design, an insight into the various types of
controls is essential. Notably, there are multiple types of management control systems, and these
systems also come along with different cost intensity during organizational implementation.
Notably, the action controls of a management system are meant to oversee the alignment of

Management Control Systems Design 3
employee actions to the corporate strategic objective. Besides, some of the advantages of the
action controls are that it is the most direct form of control, efficient in enabling coordination and
also increase the ability to predict actions. Their demerits, on the other hand, include; limited
feasibility, tendency to focus on easily manageable activities and it causes negative attitudes.
Furthermore, besides discouraging creativity, the control is costly, especially where
preaction reviews are involved — cultural restrictions on the other hand work towards ensuring
employee diversity appreciation and cohesion. Besides, the control shapes the organizational
behavioral reputation. Also, personnel controls are meant to ensure the utmost self-efficiency and
productivity out of the employees of the organization (Dumay and Dai 2017). Lastly, result
control systems are intended to provide clarity between the actual and projected results and
design ways and strategies to enhance the organizational outcomes. Besides being motivational,
it involves defining the scope of performance, measuring the performance, setting the
performance targets and providing rewards both intrinsic and extrinsic. On the positive side, the
results-based controls provide effective control even with imperfect knowledge on desirable
actions, it motivates the employees even under autonomy, enhances the employee commitment
and does not attract many costs (Lawrence 2018). On the negative side, there are significant
measuring with precision errors and not all employees are susceptible to being empowered to
productivity as it may seem best to them.
Organizational needs and issues identified
For instance, our organizational needs in the contextual analysis of Jumbo interactive
limited which does the resale of lottery games under the umbrella of Tatts Group -revolved
around enhancing an entertaining experience with customers in order to enable the customer
retention aspect. Furthermore, the analysis of customer trends at jumbo limited reveals an