15 Key Features of Effective Management Control System

The management control system is a necessary function to make all other managerial functions effective ensures that the corporate goals are achieved effectively and efficiently.

features of effective management control system
features of effective management control system

Features of Effective Management Control System

Following are the features of effective management control system:

1. Multi-Dimensional In Operation

The control system is multi-dimensional in the sense that it should conform to the nature and needs of the activity or position sought to be controlled.

An organization undertakes to perform a number of activities such as production, sales, finance, manpower development, marketing, etc. and for controlling all these activities, the best control system is to be developed.

2. Participation of all Concerned

The control system to be more effective it must have the participation of all the managers and his subordinates.

Controls should, not be imposed on the subordinates.

Related: 7 Common Barriers to Powerful & Effective Communication (Explained).

3. Focus On Strategic Control Point

The management control systems must focus on strategic control points and support the organization’s established overall priorities.

The immediate corrective action would be needed where deviation and would lead to a greater loss.

4. Timely

The management control system should be designed to Private data on the state of a given production or of a specific time.

For example, a monthly sales report, weekly or on the daily report or quality inspection on a production line, all indicate a time period.

Control systems must provide relevant information on specific time periods.

Related: 15 Essential Elements of Control Process in Management (Explained).

5. Understandable and Realistic

A good control system should be well defined and understood by all those directly involved.

The manager should have the know-how it works and the subordinates should know what it seeks from them.

A complicated system of control based on a mathematical analysis will be no use if they are not clear and understandable to the manager and subordinates.

6. Immediate Information of deviation

Control systems should be able to report deviations quickly so as to minimize the ill effects of these deviations.

7. Control should Focus on the Results

The ultimate aim of the controlling process is to achieve organizational objectives.

Gathering information, setting standards, identifying problems, measuring deviations and reports are simply means to this end.

8. Flexible

A good control system must be flexible enough to be adapted to new situations without much difficulty.

features of effective management control system
features of effective management control system


Because a good management control system must keep pace with the continuously changing pattern of a dynamic business world.

Related: 8 Key Factors Affecting the Span of Control (Explained with Examples).

9. Economical

The cost of the controls system must be less than the benefits to be derived from the use of controls.

10. Simple and Clear

A good control system should be simple and clear which absorbs less effort and are more economical also.

11. Acceptable to Organisations Members

Control systems designed should be acceptable to the organization’s members.

Rigid controls might cause resentment resulting in lower morale and inefficient performance.

A management control system to be more effective, it should be acceptable to members of the organization.

Related: 6 Main Steps in Control Process of Business Management (Explained).

12. Well Communicated

A good control system must have the characteristics of the good flow of communication from top to bottom and feedback from bottom to Upward.

13. Designed to Mix Individuals with Specialisation

A good control system should be designed to integrate individuals with specialization in diversified fields of accounting organizational analysis, strategic planning, management information system, and other related areas. This would ensure balance.

14. Must be Designed to the Right Person to Monitor

Controls must be designed in such a way that the right person monitors the activities of his own field.

The sales managers, for example, should be the right person to control the sales territories.

15. Should Work on Exception Principle

A good control system should work on the exception principle So that all-important and major deviations are brought into the attention of the top management.

This will help top management to concentrate on other activities.

Thus, now you know the features of effective management control system.

Read More

Scroll to Top