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One of the managerial functions requiring information is control, the MIS is part of the management control system (MCS). A control system has the following four primary components:
1. A detector or sensor, which is a measuring device that identifies what is actually happening in the process being controlled.
2. An assessor, which is a device for determining the significance of what is happening. Usually, significance is assessed by comparing the information on what is actually happening with some standard or expectation of what should be happening.
3. An effector, which is a device that alters behavior if the assessor indicates the need for doing so. This device is often called “feedback.”
4. A communications network, which transmits information between the detector and the assessor and between the assessor and the effector.
It is through these system elements that information about actual organizational occurrences is gathered, comparisons are made against plans, changes are effected when necessary, and communications take place among appropriate parties. For example, source documents (detectors) gather information about sales that is compared to the budgets (assessor). If sales revenues are below budget, management may issue (communications network) a variance report (effector) to encourage the sales staff to increase volume.
However, even given the same information, different managers may interpret it differently and respond accordingly. In this respect, a management control system is not merely mechanical, it requires judgment. Thus, a management control system may be referred to as a black box: an operation whose exact nature can not be observed.
Regardless of the specific actions taken, a management control system should serve to guide organizations in designing and implementing strategies such that organizational goals and objectives are achieved.
Regardless of the specific actions taken, a management control system should serve to guide organizations in designing and implementing strategies such that organizational goals and objectives are achieved.
