Management control systems refer to the ways a company collects information to manage and control the activities regarding accomplishment of organizational goals and objectives in an effective manner. It is a fact that without proper management, no goal can be achieved in a timely manner as various difficulties can arise in this process which need a proper resolution. A management control system helps management and employees perform their assigned activities in a proper manner using the information stored in it. Management control systems deal with every department and every system of a company, which may include employee benefit programs, accounting methods, performance appraisal, and performance improvement systems. As Lawson (2012, p. 1) states, “management control systems are methods of collecting information that are used to guide and direct the behavior of staff members and management in order to achieve a companys goals”. In a management control system, there are guidelines and techniques regarding everything related to business operating matters of a company. Managers and employees can use those guidelines and techniques to improve their performances and achieve organizational goals in an effective manner.
In today’s world of business, a management control system serves the role of the brain for a company. It stores procedures, activities, tasks, goals and objectives, and guidelines regarding every particular department and business process which managers and employees can use to perform their respective activities.