1. anagement control system
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A management control systems (MCS)
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 considering the
organizational strategies. Finally, MCS
influences the behavior of organizational
resources to implement organizational
strategies. MCS might be formal or

2. informal. The term ‘management control’
was given of its current connotations by
Robert N. Anthony (Otley, 1994). [1]
Robert N. Anthony (2007) defined
Management Control is the process by
which managers influence other members
of the organization to implement the
organization’s strategies. Management
control systems are tools to aid
management for steering an organization
toward its strategic objectives and
competitive advantage. Management
controls are only one of the tools which
managers use in implementing desired
strategies. However strategies get
implemented through management

3. controls, organizational structure, human
resources management and
culture.[2] Anthony & Young (1999) showed
management control system as a black
box. The term black box is used to
describe an operation whose exact nature
cannot be observed. MCS involves the
behavior of managers and these behaviors
cannot be expressed by equations.
Anthony & Young (1999) showed that
management accounting has three major
subdivisions: full cost accounting,
differential accounting and management
control or responsibility accounting. [3]
According to Horngren et al. (2005),
management control system is an

4. integrated technique for collecting and
using information to motivate employee
behavior and to evaluate performance. [4].
According to Simons (1995), Management
Control Systems are the formal,
information-based routines and procedures
managers use to maintain or alter patterns
in organizational activities [5]
Chenhall (2003) mentioned that the terms
management accounting (MA),
management accounting systems (MAS),
management control systems (MCS), and
organizational controls (OC) are
sometimes used interchangeably. In this
case, MA refers to a collection of practices
such as budgeting or product costing. But

5. MAS refers to the systematic use of MA to
achieve some goal and MCS is a broader
term that encompasses MAS and also
includes other controls such as personal or
clan controls. Finally OC is sometimes
used to refer to controls built into activities
and processes such as statistical quality
control, just-in-time management.[6]
According to Maciariello et al. (1994),
management control is concerned with
coordination, resource allocation,
motivation, and performance
measurement. The practice of
management control and the design of
management control systems draws upon
a number of academic disciplines.

6. Management control involves extensive
measurement and it is therefore related to
and requires contributions from accounting
especially management accounting.
Second, it involves resource allocation
decisions and is therefore related to and
requires contribution from economics
especially managerial economics. Third, it
involves communication, and motivation
which means it is related to and must draw
contributions from social psychology
especially organizational behavior (see
Exhibit#1).[7]

7. Exhibit#1: Management control as an
interdisciplinary subject