Management Control Systems

Topics: Board of directors, Management, Executive director Pages: 6 (1549 words) Published: December 9, 2008

This report, which aims to analyze the management control systems of an organization, is classified into three main sections. The first one provides general information about the chosen organization. The second section entails the internal organizational structure, while the last section is going to be concerned with comprehensive analysis of its management systems.

A. JREDS Structure

Before analyzing the society's management systems, it is vital to highlight its general structure.

General Assembly

Referring to the previously illustrated figure, it should be noted that the General Assembly is formed of all the members of the society who have paid their financial obligations. It should be also noted that any member who didn’t fulfill his financial obligations is not entitled to vote or run for board. The General assembly meets on yearly basis, during the month that follows the issuing of the financial report. And it will be called for meeting whenever there is a need. The general assembly elects the board of directors every four years, and it supervises its activities and assesses its performance. Such a process embraces both positive and negative dimensions; the former is represented in holding the board responsible for its actions and decisions, while the latter is focused on the fact that the general assembly may not be fully aware and acknowledged with the society's needs in order to choose relevant board members.

Briefly highlighting the main tasks of the General Assembly, those of the board of directors are now described.

Board of directors

As previously mentioned, the board of directors is elected by the General assembly every four years. Moreover, it has nine members with the following positions: 1. President
2. Vice president
3. Permanent secretary
4. Treasurer
5. Members

The roles of the board of directors include:
1. Issuing the regulations that govern the society's work and supervise its activities. 2. Submit the annual report to the General Assembly.
3. Submit the financial reports to the general assembly.
4. Implement the general assembly's directions.
5. The approval of any contracts to be signed.
6. Accept or reject any new member to the society.
7. Follow up the society's activities.
8. The approval of the hiring of new employees and accept their resignations. 9. Organize the general assembly's meetings.
10. Approve the budgets and financial reports.
11. Approve any financial expenses or cash outflows, with the signature of the president and treasurer required for any amount below 5000 JD and the signatures of the president, treasurer and the permanent secretary for any amount above 5000 JD.

The board of directors meets on regular basis every two months, and all decisions are based on voting. In my opinion, having this voting system represents a transparent, ethical and effective way to make vital decisions. However, in order to improve the governance system of the society I suggest having employees represented in the board of directors. This is because the employees can be widely aware of the society's demands and needs; hence, provide proper advice in order to have comprehensive and effective decisions. Having analyzed the main tasks of the board of directors, the organizational levels can be briefed as the following:

Organizational levels

As seen in the organizational chart, it is noted that:
• The programs coordinators report to the projects manager. • The projects manager, the program manager and the senior accountant report to the executive director. • The executive director reports to the board of directors. The previously illustrated reporting process can be identified as a formal, well-coordinated and sequential communication system, which assigns responsibility in a proper manner reducing conflicts and ensures a smooth flow of the society's activities.

Having analyzed the...
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