Management Control Systems Management Systems Essay

Management Control Systems Introduction In the rapidly changing business environment, there is enormous pressure to conduct activities in a better, controlled and efficient manner. The accelerating change creates uncertainties and complexities thus creating challenges for management in their strategic plans. Management cannot continue to rely on Management Accounting Control Systems whose primary emphasis is on financial targets since such traditional analytical approaches can fail to adapt to the quick and unexpected economic landscape. The use of information systems for control has been widely adopted to deal with such challenges, but the current business world places a greater imperative on non-financial targets hence the MCS tools need to capture non-financial perspectives. This paper provides that managers must not rely on quantitative performance targets hence supports the argument for setting non-financial targets in organizational objectives Discussion The measurement of performance is a great challenge in the contemporary business world since the non-financial targets are hard to ascertain. It implies that an organization could end up with inefficient and ineffective MACS that lead to poor utilization of resources and ultimately increase the probability of organizational failure. The increasing strategic uncertainty creates a problem to quantify the non-financial factors that could be incorporated in internal controls (Hirst, 1983). 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