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MT140 Unit 6 Discussion - Research Paper Example

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Such a situation leaves the company vulnerable to unscrupulous employees a feature that validates the need for an effective control system. Management control…
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MT140 Unit 6 Discussion
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MT140 Unit 6 Discussion The case presents a situation where the management does not have all the information on the operations at the company. Such a situation leaves the company vulnerable to unscrupulous employees a feature that validates the need for an effective control system. Management control system is that enhances the controlling function of management. The system gathers information and uses them in determining and evaluating the utilization of the various resources at the organization such as human, financial and physical resources among others.
Setting up and implementing a control system begins with the creation of appropriate objectives and goals, both long term and short term goals utilize varied resources. This implies that the goals must include the adequate resources required. A goal just as the name suggests has a time constrain a feature that regulates the utilization of the resources in accomplishing each. With SMART goals and objectives, the system requires the creation of appropriate bureaucratic offices to enhance the supervision of the subordinate in order to ensure that they dedicate their time among other resources to attaining the goals (Anthony & Govindarajan 2007).
Managers must have basic understanding of the organization. This requires the managers to have every information about the company and its resources at any given time. The case at Sandwich Blitz Inc. is negatively unique since the management does not monitor the operations of the company thus the utilization of the resources. Such loopholes create space for embezzlement of funds among other resources. Some employees earn for hours they have not worked for, such is a portrayal of the laxity in the management a feature that validates the need for the creation of a functional management control system.
Reference
Anthony, R. & Govindarajan, V. (2007). Management Control Systems, Chicago, Mc-Graw-Hill IRWIN. Read More
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