1. Management control objectives

1.1 Two definitions

• Management control can be defined as the set of procedures and methods used to ensure that a company's resources are used effectively and efficiently.

  • Management is effective if it achieves its objectives.

  • It is efficient if these objectives are achieved with economy of means.

    Examples

    An officer tasked with taking an enemy position is effective if the position is actually taken. But if it's at the cost of exorbitant losses, if 95% of his troops are decimated, it's not necessarily very efficient.

    In the same way, achieving a sales target at the cost of deep discounts...