Management control implies that interim analyses and evaluations take place while policies are implemented. Management control provides information management needs to make informed decisions. Management control focuses on analysis and progress evolution compared to the plan and on providing interim management and policy information. This makes it possible to make timely adjustments to ensure the desired results are actually achieved.
The definition of internal control (IC) in the explanatory note to the King, regarding the Royal Decree on the internal control system: “Internal control is an integral process that is effected by an entity's management en personnel and is designed to adrdress risks and to provide reasonable assurance that in persuit of the entity's mission, the following general objectives are being achieved:
· executing orderly, ethical, economical, efficient and effective operations;
· fulfilling accountability obligations;
· complying with applicable laws and regulations;
· safeguarding resources against loss, misuse and damage.”
Source of this definition: “Guidelines for Internal Control Standards for the Public Sector, INTOSAI”.
Private companies apply “good governance” principles to offer a better definition of the responsibilities of shareholders, directors and management. These principles also help to prevent conflicts of interest. The structures and processes involved in decisions and their justification, control and surveillance, conduct and leadership are based on the principles of transparency, integrity and justification.
In the public sector, good governance (government governance) is applied with the help of the following key ideas :
- the administration has to guarantee compliance with the rules, safety and equality before the law;
- the administration has to operate on the basis of economy, efficiency and effectiveness. Common additions are ethics and ecology (sustainability).
Good governance reflects the need for the public sector to be covered by the principles of reliability and predictability, transparency, efficiency and effectiveness, along with integrity. Decision-making, implementation, follow-up and surveillance have to be undertaken coherently, consistently and correctly.