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MANAGEMENT CONTROL SYSTEM FOR PUBLIC SECTOR ORGANISATION. TYPES OF MANAGEMENT CONTROL. ORGANISATION. MANAGEMENT CONTROL. FORMAL CONTROL. INFORMAL CONTROL. Strategy Formulation Strategic Planning Programming Budgeting Performance Measurement Evaluation. Informal meeting Discussion
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MANAGEMENT CONTROL SYSTEM FOR PUBLIC SECTOR ORGANISATION
TYPES OF MANAGEMENT CONTROL ORGANISATION MANAGEMENT CONTROL FORMAL CONTROL INFORMALCONTROL • Strategy Formulation • Strategic Planning • Programming • Budgeting • Performance Measurement • Evaluation • Informal meeting • Discussion • Memo • Observation • Entertainment • Organisation sport club
Management Control System Management Control Process MCS Management Control Structure
Strategy Formulation Feedback Strategic Planning Performance Evaluation Programing Reporting Performance Budgeting Implemen-tation Management Control Process
Strategy Formulation vision mission goal core values core beliefs
Develop Shared Vision & Shared Mission Top level management Shared vision, mission, goal, & values Midle level management Lower level management
Example: Vision Statement Vision of Support Centers of America: We envision an ever increasing global movement to restore and revitalize the quality of life in local communities. The Support Centers of America will be a recognized contributor and leader in that movement. Vision of City of Charlotte: The City of Charlotte will be a model of Excellence that puts the citizens first. Skilled, motivated employees will be known for providing quality and value in all areas of services. We will be a platform for vital economic activity that gives Charlotte a competitive edge in the marketplace. We will partner with citizens and business to make this community of choice for living, working and leasure activities.
Vision Statement Vision statement should be: • Simple to be memorized • Challenging • Motivate • Realistic • Answer: Why organization exist?
Mission Statement mission indicate the choosen way to creating the future Mission answer the question: • what the organisation is now? • why we exist?
Example: Mission Statement Mission of the City of Charlotte: The mission of the City of Charlotte is to ensure the delivering of quality public services that promote safety, health of and quality of life of its citizens. Mission of Support Centers of America: The mission of the Support Centers of America is to increase the effectiveness of the nonprofit sector by providing management consulting, training and research. Our guiding principles are: promote client independence, expand cultural proficiency, collaborate with others, ensure our own competence, act as one organization.
Core Values • Commitment to customers’ satisfaction, • innovation, • diversity, • creativity, • honesty, • Integrity, • Discipline, • etc.
2. Strategic Planning Strategic Planning Strategic Plans Strategic Objectives StrategicInisiatives Target
Strategic Planning as a Bridge Strategic planning Budgeting Strategy formulation Short-term planning Long-term planning moneter Non moneter
3. Program Program is a choosen activities to achieve strategic objective
Performance Reporting Performance Report Financial performance report Nonfinancial performance
Performance Evaluation Performance Evaluation Organisational performance Program Evaluation
MANAGEMENT CONTROL STRUCTURE • Responsibility Center • Reward & Punishment system • Information Network
Information Network multidirectional network More flexsible on-time, real-time formal and informal e-government Virtual office responsiveness multiple channel
LEVEL of STRATEGY Level of Strategy Corporate Strategy Business Unit Strategy Organisation-wide strategy Organisation-unit strategy