Stages Of Management Control Systems

Management control process involves informal communication and interaction between managers and employees, to complement the informal control. The Company also has formal control system which includes the stages of inter-related as follows:

1.  Programming
Programming is the process of choosing a specific program for the organization's activities program describes the activities to be conducted within the framework of the implementation strategy of the organization. In profit-oriented company, every product or product line (product line) is a program.

2. Budgeting (budgeting)
Actual operating budget is a plan of action that is expressed in units of money, in the budgeting

process, budget preparation is done by collecting sections and divisions that are the responsibility of the manager.
Budgeting process is basically a negotiation between responsibility center managers and their superiors to apply what managers do and how.

 

3.  Operation and measurement
During the period of actual operation, the recording made of the resources used, expressed as cost and revenue

earned. Note this is done such that each cost and revenue data classified according to the program and responsibility center classified data used as basis for future programming. For the final goal of actual data from the results reported in a way that allows comparison with the budget.

4. Reporting and analysis
Management control system serves as a communication tool. The information communicated consists of accounting data and non-accounting.

Reporting is also used as a means of controlling some derived from analysis of developing a plan and comparing actual results with planned results. Based on this formal report and is also based on information received through non-formal channels, managers decide what to do.