1. Strategy developed through a formal/rational process, strategy dictates the design of the firm's management systems

2.  Strategies come from experimentation, which are influenced by the firm's management systems

Strategic planning

Budgeting

Execution

Evaluation

Detector

Assessor

Effector

Communications network

Standards not always preset

Management control is not automatic

Required coordination among individuals

Required actions may not be clear

Management control involves judgment

Strategy formulation

Task control

Management control

Deciding the goals of the organization and strategies to achieve these goals

Nonsystematic

Long term - approximation

Focus on planning

Process of ensuring that specified tasks are carried out effectively and efficiently

Scientific - systematic

Short run - current data

Stresses control

Managers influence other members of the organization to implement the organization's strategies

Moderately systematic

Mix of reliable data

Focus on planning and control

Stress goal congruency

Goal - broader, overall aim of the organization

Objective - more specific (usually a time objective)

Organizational structure

Human resource management

Culture

Management control systems

Segment of organization which a manager is accountable for

Revenue

Cost & expense

Profit

Investment

Managerial accounting

Strategic planning

Human resource management

Organizational behavior