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¶ … Management Control Systems Vary According to Organizational Size
All organizations go through different life cycle stages: even the largest multinational was once a relatively small entity, usually-based domestically, with a relatively narrow range of customers. This variation in terms of organizational size and scope of mission generates the need for different types of management control systems. "Service control systems might need to change throughout the life cycle to fit in with changes in the competitive environment, business mission and generic strategy. Failure to account for the stages of the life cycle in budgetary policies has been found to result in inefficiencies of resource allocation" (Auzai 201056). For example, a small entity might find that relatively inexpensive marketing efforts are necessary in relation to its other, more immediately pressing financial needs. Word-of-mouth advertising and general, low-cost methods of promotion such as free social media content might be sufficient -- in fact, too aggressive a marketing campaign might prove unwise if demand quickly exceeds the ability of the entity to serve the public (such as a restaurant that grows 'hot' too soon and has trouble meeting the needs of a rapidly-expanding clientele). But as it grows, marketing allocations might change:...
Training of employees for a small entity is less critical if the initial employees are members of the founding team and have a clear idea of the organizational mission already. But as the entity becomes larger and more bureaucratic, understanding of the central mission cannot be assumed. The mission itself might change from simply serving specific customer needs to slightly altering the scope of its focus, based upon the different countries the company is based within. For example, Starbucks might promote itself as a midmarket European coffee 'experience' in America, stressing the ambiance of its stores but in other countries its ground coffee and instant coffee might make up a greater proportion of its revenue and thus demand a different system of metrics to track its relative successes and failures.
Greater boldness is often necessary for newer firms, to demonstrate the novelty of its product or service. In contrast, "mature firms, which are stable…
Bibliography
Auzai, S. (2010). Organisational life cycle stages and management control systems in service organisations. International Journal of Business and Management, 5 (11): 56-65. Available at: http://www.ccsenet.org/journal/index.php/ijbm/article/view/8052/6081 [1 Feb 2015]
A broader empirical analysis of the levers of control framework reveals that the differences in the efficacy and appropriateness of this approach depend on whether or not the system of control and measurement is engaged with primarily as a diagnostic device, or more as an interactive system (Widener 2005). As noted above, interaction is a key element of the framework -- arguably the most important element, as the others are
Like, in the case of public sector training project which aim at providing new skills for the unemployed, (Richard Heeks, 1998). Such project turns inputs of staff labor, equipment and money to a level of outputs skilled individuals who have undergone training through process of training delivery. B) a monitoring mechanism: The mechanism tends to collect information concerning the outputs from the process. In this case, the information to
Body Clowning It is not only nudity that is stereotyped with women in ads in Australia but also the women are shown displaying their bodies as the clown would do. The clothes of women models have shrunk from the skirts to bikinis. The total nude pictures are also common. The men on the other hand are shown in decent dressing displaying an elegant style. The women are asked to take
Organization Analysis Analysing Organisation: Using relevant theoretical perspectives frameworks, critically analyse organisation choice. Analyzing organization is the process of assessing the organizations systems, functionality and capacity so as to increase the organizations performance, efficiency and overall output. This is done by using various theories and models whose aim is to understand the structure of the organization, technology and behavioral relationships Bate, Khan, & Pye, 2000. This should be a periodic and detailed activity
Dobson Farm Products System Analysis Report Dobson Farm Products began operations in 1983 as a small producer of poultry products including meat and eggs. They began as a family business with an office in a room of their farmhouse. In 1990 the operation had grown to a point where they had to hire a secretary, accountant, sales manager, and seven production workers. The company has grown exponentially and now they find
Ackoff's Management Misinformation Systems How corporate leaders may make improper assumptions related to accounting information systems and the related information In most cases, there lacks materials, which, directly pinpoints the Ackoff's Management, challenges faced by the organization. Many companies and their leaders experience challenges that are related to a weak human resource department. In the recent past, the many companies have experienced various mechanical failures that cause these organizations to recall appropriate