This report has been created for the purposes of discussion of the current management control systems in place in the public sector team to analyse strengths and recommend changes to improve any lack of controls identified.
Performance Management Controls:
Within organisations, performance measurement is dominated by management control systems that are focused on control rather than improvement.. Having a better understanding of the operational activities of the business and building this understanding into control systems design; connecting control systems with business strategy, which has to some extent been addressed by the proponents of strategic management accounting (see below); and focusing on the external environment within which the business operates, through a value-chain based approach will improve control systems and performance of the organisation greatly. .
Anthony (1965) once said, on one hand, that management control is the process through which managers use their power to influence other members of the organisation to implement strategies, to realize goals and objectives and, on the other hand, it integrates facts on long, medium and short terms, having well determined implications in human factors, objectives and assignments.
There are other various risk management and operational management controls in place within the bank but these are not control systems put in place by the team although team members due have to adhere to these control procedures and policies. These have not been reviewed for the purposes of this report.
2. OVERVIEW OF MANAGEMENT CONTROL SYSTEM
In order to improve any current MCS system we must first understand the reason why MIBank or any organisation puts control systems in place in order that improvements to better control do not hinder the desired outcomes
Robert Anthony, (1965) defines Management Control as “the