Professional Documents
Culture Documents
BODs CEOs SBU/profit center Heads. Financial controllers, Internal, External Auditors. Corporate Planning Staff. Middle level Managers.
Barriers in Evaluation There are five major types of barriers in Evaluation. They are:
Limits of controls. Difficulties in Measurement. Resistance to Evaluation. Short-termism. Relying on Efficiency Vs Effectiveness.
STRATEGIC CONTROL
It is a continuous evaluation system used in business processes. There may be some gap between the time a strategy is formulated and when it is implemented. The process of implementation is a time-consuming process. Strategic controls take into account the changing assumptions that determine a strategy, continuously evaluating the strategy as it is being implemented and take the necessary steps to adjust the strategy to the new requirements. Types of Strategic control
Premises control Implementatio n control
Strategic control
Strategic surveillance
TYPES OF STRATEGIC
Premise control
CONTROL
It is necessary to identify the key assumptions and keep track of any change in them so as to assess their impact on strategy and its implementation . Eg:- Environmental factors, Organizational factors. Implementation control The implementation of a strategy results in a series of plans, programmes and projects. Implementation control is aimed at evaluating whether the plans, programmes and projects are actually guiding the Organization towards its pre-determined objectives or not. Implementation control leads to strategic rethinking. Strategic surveillance It is aimed at a more generalized and overaching control. It is designed to monitor a broad range of events inside and outside the company that are likely to threaten the course of a firms strategy. Special Alert control:- This is based on a trigger mechanism for rapid response and immediate reassessment of strategy in the sudden & unexpected events. Eg:- Crisis and critical situations.
OPERATIONAL CONTROL
Operational control is concerned with action or performance of an organization. Operational control aims at allocation and use of Organizational resources through evaluation of the performance of organizational units such as divisions, SBOS etc to assess their contribution to the achievement of organizational objectives Process of evaluation :The process of evaluation is applied for exercising operational control. It involves for steps.
ANALYSING VARIANCE
TAKING CORRECTIVE ACTIONS
The strategies, plans and objectives result in a set of performance standards which form the basis for evaluation through measurement of performance.
DIAGRAM
R E F O R M U L A T E
C H E C K S T A N D A R D S
C H E C K P E R F O M A N C E
ANALYSING VARIANCE
FEEDBACK
1.What standards should be set? 2.How should these standards be set? 3.In what terms should these standards be expressed? Actual Performance Management of Performance Analyzing Variance
Role of Control System The control system is the heart of any evaluation process for Setting Standards, measuring performance, analyzing variances and taking corrective action. The central role of the control system in important. The role of the development system in evalution, is helpful for strategists to initiate and implement corrective action. Employee Performance Management Systems used through applications of I.T., play a helpful role in the development of a system for exercising control in organizations. Role of Reward System Organizations design and operate their reward systems on the basis of the Appraisal of performance of individuals. When the performance of managers is appraised, their contribution to Original Objectives increases. Hence Reward Systems contribute Organization success and effectiveness