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The use of management control systems initiated from the times when globalization came into being all across the world as this was a beginning of the phase of industrial competition among the different industries in the market. The environment of management control systems was introduced in the companies as they started to face changes in size, structure, processes within the organization; complexities associated with administrative problems increased; internationalization of industrial demands began keeping in mind the geographical scope of the world.
It is very important for a company or an industry to have a management control system in order to respond accurately and accordingly to the global demands and is also essential for the successful achievement of the company’s objective.
By definition, a management control system has the function of gathering information and using the gathered information for evaluation of certain important organizational resources like human resources, physical resources, financial resources, etc. and also of the whole company against other companies in the globalized market.
Without an effective management control system, the company may not even be aware of the strategies that they have used for achieving its goals are feasible enough or not for enabling the company to attain the pre-decided set of goals and objectives.
The control system is the main body which responsible for carrying out the tasks of Management Control System. The control systems are responsible for keeping a check if the processes are going as planned or not and if there is any presence of errors or deviations in the process. in case of any discrepancies, the control system also suggests some remedies to resolve the deviations and the errors.