What Is Informal And Formal Control System?


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Nicole Manion answered
Do you mean in regard to management control systems, which can also be referred to as MCS? If this is the case, if you have a look at some of the strategies that are used in MCS, it is easier to ascertain which are formal and which are informal, though in some instances it can be a vague concept.

  • Management control systems

These use a variety of methods to collect and use information in order to be able to evaluate the performance of the departments within a business organization. All areas are covered, such as human resources, finance, development and marketing, to name just a few of the aspects in any organization.

  • Using MCS to achieve company objectives

MCS is a process that managers use to influence the members of the workforce in order to achieve the objectives of the company. Because there are so many different ways to implement this it is often difficult to quantify it.

This is because MCS is a process that has many different variables and not a prescribed method of behavior. For example, organizational structure, human resource management and individual management styles all have an impact on company outcome.

Everybody who has ever worked is in a position to judge whether they were managed well, or not, and it is fair to say that the managers that are considered to be the best are those that have one eye very firmly on the company ball while also having superlative people skills that get the best from the workforce.

It is a combination of tactics that achieve positive results and while some of the methods can clearly be seen to be definite strategies, and therefore, formal, others cannot be and as such can be described as informal.

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