Please enable JavaScript.
Coggle requires JavaScript to display documents.
SMA: Q2 - Coggle Diagram
SMA: Q2
Elements to be Considered in Designing MCS
Planning
Clearly defined comp's strategic goals
- aligned goals with realistic performance target
Set objectives: balance financial performance & employee satisfaction
Coordinating
Foster collaboration between departments
- streamline operations and improve overall efficiency
Implement regular cross-functional meetings
- enhance teamwork & working towards same strategic goals
Communication
Transparent & consistent information sharing
Establish open channels for feedback and updates
Evaluation
Regular assessments on financial performance & employee well-being
Monitor KPIs related to financial & employee satisfaction
Decision-making
Data driven & inclusive decision
- consider input from various levels of the organization
Create a culture where employees feel their opinions are valued
Components of MCS
Financial Performance Measure
Track comp's profit & financial health
- inc revenue growth, cost control
Eg: set quarterly revenue growth targets
- can motivate the sales team to increase sales
Non-Financial Performance Measure
Aspects beyond financial metrics
- inc employee & customer satisfaction
Eg: Conduct regular employee surveys
- can reduce turnover
Types of MCS @ Control Mechanisms
Formal Control System
Emphasize rules, procedures, and guidelines
- strict adherence
Bad system leads to demotivated employees
- eg: Stopping overtime payments
Output (Result) Control System
Focus on the output produced by employees
- eg: focus on productivity and sales target
Bad system: Neglect other crucial performance aspect
Bureaucracy Control System
Use rules, policy, hierarchy of authority to control employee behavior
Bad system: Reduce flexibility to address individual employee
- eg: enforcement of no overtime and reduced benefits