Abstract
The investigation of management control system from the perspective of management control elements can meet the general needs of describing the MCS. Management control is the process by which managers influence other members of the organization to implement organization’s strategies. Researching management control system from the perspective of control procedures can interpret the fundamental purpose of MCS better. As to management control procedures, researching them from different categories, levels or perspectives, the result may be different. If management control is regarded as a closed system, that is, the control environment is certain, the procedures of management control system are called formal control process. At present, three-step control procedures, four-step control procedures and five-step control procedures exist and are all belonging to formal process. If management control is regarded as an open system, namely, given uncertain and continuously changeable control environment, the procedures of management control system are called informal control process. Formal control process and informal control process are different. From the systematic and a long-term point of view, informal control process is inevitable, but formal control process is more scientific and operable from a specific and short-term point of view. In addition, the premise of our research about management control system is that the control environment is certain (a systematical research on control environment has been made in Chap. 9 ). Therefore, the focus of this chapter is on the formal control process.
Published Version
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