The focus of this paper is to discuss behavioral considerations in the management control process. The paper will discuss both personal observations made as both a manager of an organization and as an employee, as well as certain academic aspects. The textbook describes the management control system as a circular four part process which begins as strategic planning, followed by budgeting, then measurement and reporting, and ending with evaluation [ (Anthony, Hawkins, & Merchant, 2007) ]. Strategic Planning
The strategic planning is done at the higher levels of management where it is decided what the focus of the organization will be [ (Anthony, Hawkins, & Merchant, 2007) ]. The individuals making these decisions should have the clearest picture of how all parts of the organization fit together and how to move the entire organization forward. Robert Anthony first suggested that middle managers are greatly influenced by the organizational goals that senior managers emphasize [ (Harrell, 1977) ]. Therefore, it is very important that senior management clearly articulates what the organizational goals and objectives are. Once these goals and objectives are known throughout the company, managers and employees at every level will have an end state in mind and be more focused on their achievement. I have personally found added buy-in throughout the organization when mid-level managers are asked to participate in the strategic planning process. Also, it is important that any goals set by upper management do not seem unattainable. Seemingly unattainable goals can actually have the negative effect of causing resistance and apathy.
An organization budget gives managers a template to compare actual results against planned results. A budget is normally in monetary terms and established for a specified time period such as a month, quarter, or year [ (Anthony, Hawkins, & Merchant, 2007) ]. Much like strategic planning, it is important that...
Please join StudyMode to read the full document