Question

once an organization determines that some aspect of its operations needs to change, they must translate what they want to change to how they want to change it. At the point where the plan is implemented, inevitably problems arise. Rarely is a strategy or plan implemented perfectly, mainly because it’s impossible to foresee every problem and accurately assess how employees with react in a given situation.

Discuss two strategies, tools, or control systems which an organization could utilize to determine whether or not a plan is working as intended (e.g., customer surveys, profits/losses, etc.). Also include information about who is responsible for managing these control systems. Finally, incorporate factors specific to the saudi arabia which would positively or negatively impact these strategies.

Answer 1

Two control systems which an organization could utilize to determine whether a plan is working as intended or not are:

• Management Control System: Strategy and goals are important elements in MCS. In a management control system, the goals define the elements which need to be controlled under MCS. The MCS is developed in a way so that the organizational as well as the system goals are integrated and achieved. This leads to goal congruence. Strategy helps in developing the path to achieve the goal congruence in MCS. Hence, both strategy and goals help in developing an effective MCS.
  • The project team will be responsible for managing this control system as they will have a significant control on the day to day operations of the project.
• Budgetary control system: Classical budgetary control is a type of control mechanism through which the actual results get compared with the proposed budgets, thereby highlighting the variances and making the objectives of the control system clear. With the technological evolution and advancement, the popularity of classical budgetary control may seem faded, but there are many companies which still resort to this technique to understand and identify the budgetary variances in the system. The importance of budgetary control lies in the fact that the remedial actions of the control system get quite clear with the identification of the variances in the system. Also budgetary control keeps the future prospects of business in check and help in evaluating the effectiveness of overall business.
  • The project team as well as finance team will have control over this control system