Management Control System & Elements of a simple control system.

What is management Control system?

A management control system is a system which gathers and uses information to evaluate the performance of different organizational resources like human, physical, financial and also the organization as a whole in the light of organizational strategies involved.

Management control system are the formal and informal structures put in place by a business that compares the goals and strategy of the organization against the actual outcomes.

What are the elements of a control system?

Every control system has at least four elements :

a) Detector/sensor: A device that measures what is actually happening in the process being controlled.

b) Assessor: A device that determines the significance of what is actually happening by comparing it with some standard or expectation of what should happen.

c) Effector: A device that alters behavior if the assessor indicates the need to do so.

d) Communication network: A device that transmit information between the detector and assessor and between the assessor and the effector.

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