management and control systems encompass a series of stages that start with strategic planning, move to operational planning, involve implementation and control, and conclude with performance evaluation. These stages ensure that the organization remains on track and adapts to changing circumstances, while the key difference lies in their timeframes and scopes.
Management has three levels: strategic, operational, and tactical.
1. Strategic level: Defines the level of the top management. They have the utmost power, authority, and money to inflict influence on everything they are responsible for. Their decisions and actions affect the entire firm.
2. Operational Level: This is the directors' and C-level managers' level. They have the power to operate with some sort of sovereignty, and some amount of budget to fulfill the tasks they are assigned to. Their impact is also big but that won't affect the entire firm. In some cases-however- an operational manager might have strategic effects on the entire entity. This point must never be forgotten when assigning an operational manager and defining his/her authority and capacity.
3. Tactical Level: This level is the daily operating level. Doing usual work, mundane jobs and etc. Likewise, a tactical manager might have an operational level effect and therefore his/her capacity should be well analyzed before the delegation of authority.
The planning should be done according to the aforementioned levels. Starting with the strategic plan, after completing the strategic plan, the operational level managers should make their operational level plans aligned with the SP. After controlling and approving the OPs by the strategic management, the tactical managers shall prepare their tactical plans in alignment with the OPs. And of course- the TPs shall be checked and approved by the Operational Level managers.
The plans' detail levels are mirror viewed- i.e. strategic plan draws the main envelope, shows the mission and the vision, sets goals, and has no details.
OPs have details of their own according to their expertise and profession, but have no mundane job details, having no TP level detail. OPs have decision points in them, which are the important decisions about the well-being of the operation. For example: DP7 has "Approval of the design by the customer." This is very important because without the approval the project cannot proceed. OPs are the plans where you put your DPs for the first time.
The TPs are the most detailed plans and have every detail about routine business activities. While preparing the TPs, one should add the DPs from the OPs in order to make sure every stake holder is at the same page, with the same agenda and with the same priorities.
A management control system (MCS) is a tool that helps an organization track the actual outcomes instead of their goals and objectives in quantitative terms. This allows the managers and top-level management to make crucial decisions regarding improving organizational processes and activities. The managerial control process is an approach which is pursued over time. There are two stages. The first stage is before the action takes place and it is known as the planning stage. The second stage is when the action is taking place or has taken place and it is known as monitoring and analysis of the results stage. The control function can be viewed as a five-step process: (1) Establish standards, (2) Measure performance, (3) Compare actual performance with standards and identify any deviations, (4) Determine the reason for deviations, and (5) Take corrective action, if needed. While cost management is viewed as a continuous process, it helps to split the function into four steps: resource planning, estimation, budgeting and control. They are mostly sequential, but it's possible that some resource changes happen midway through the project, forcing the budgets to be adjusted. These five types of management control systems are (i) cultural controls, (ii) planning controls, (iii) cybernetic controls, (iv) reward and compensation controls and (v) administrative controls. Strategic control focuses on the overall performance of the organization, while operational control focuses on the performance of specific departments or functions. Strategic control involves making decisions about resource allocation, while operational control involves managing the use of those resources. Strategic Control is based on feed forward and steering control, whereas Operational Control relies on feedback control. The power of exercising strategic control is in the hands of top-level executives. As against, operational control is exercised by functional-level executives as directed by top-level management. Strategic planning focuses on long-term goals, while strategic management is concerned with both long-term and short-term objectives. While trategic planning involves creating a plan, while strategic management involves executing the plan and continuously making adjustments.