Management Control System In Manufacturing Companies A Case Of Bgi Ethiopia

In general, business environment is becoming more complex and competitive in nature.rnCompanies in different industries are upcoming with a number of differentiated products andrncharacterized by high quality with the level best required level of innovative skills. These allrndevotions and efforts are aimed of existing successfully in the industry they belong. Walsh etrnal, (2005) argue that, appropriate design and use of MCS elements have a direct relationshiprnwith the success of the organization in competitive market environment. This paper is aimedrnat assessing BGI Ethiopia on three selected elements of management control systemrnspecifically, result control group, evaluating the practice through identifying and relying onrntheoretical propositions derived from the literature and finally, to recommend on how tornimprove these elements in their organization.rnIn this research, an exploratory case study approach along a qualitative research method forrncollecting and analyzing the data are used. The case chosen in this study is BGI Ethiopiarnwhich is one of the brewery companies in the country. The empirical findings were analyzedrnthrough identifying themes from the data, by relying on theoretical propositions derived fromrnthe literature. The results show the following facts: Strategy Planning: the strategic planningrnpractice being used by BGI Ethiopia is in line with the theoretical propositions derived fromrnthe literature and control by using goals is highly emphasized.rnPerformance Measurement and Evaluation: The new performance measurement literaturernindicates, performance measurement system should in corporate any financial and non-rnfinancial measure that provides incremental information on managerial efforts. However,rnBGI Ethiopia’s approach to performance measurement is supplementing extensive traditionalrnfinancial measure less mix of non – financial measures. The reward and incentive are notrnused very significantly. The system in use extensively consists of monetary rewards; bothrnshort term and long term incentives and do not use non-monetary incentives in greater extentrnto motivate its employees and the system seems incapable of achieving result control, sincernthey influence employees’ actions by taking rewards to desired results

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