Management control
Management control is the system of financial and non-financial measures that steers managers' decisions toward an organisation's strategy.
Also known asmanagement control systems
See it move
The infographic is a five-step flow cycle illustrating how management control works in practice. Managers begin by setting targets — budgets, KPIs, and benchmarks — after which responsibility centres manage operations; results are then measured in an actual-versus-budget report; any gap is examined through variance analysis; and corrective actions or revised targets feed back into the next planning round. The circular flow emphasises that management control is a continuous loop rather than a one-off event.
Check yourself
Which statement best describes the purpose of a management control system?