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Controlling
It is a set of arrangements to provide officers and various officials periodically, the encrypted data , characterizing the running of the company. Their comparison with past or planned data may, where appropriate, encourage managers to quickly initiate appropriate corrective action. Located between strategic control and operational control, management control is designed to improve business performance through performance indicators and promote organizational change. Management control includes not only financial control (cost accounting), but also all the qualitative and quantitative factors (dashboards) for improving business performance.Management control is based on a sequence of actions merging logically:
■ setting objectives;■ strategic and financial planning for three or five years;
■ development of the annual budget;
■ monitoring the implementation of the budget;
■ analysis of variances between budgeted data and the actual data;
■ development and implementation of corrective actions.
The objectives to be achieved by maximizing the efficiency of resources used. This is a control system allowing both to achieve goals (finalized system) to measure actual performance (incentive system) and converge actions towards the goals (coercive system). Issues of consistency of management control system and the definition of an organization's performance criteria are dependent on culture, the aims pursued, its history, thus all structuring identity references.
