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• Control and evaluation


  primary goal-oriented functions in an organization
• control and evaluation


  It is a process of comparing the actual performance with the set standards of the company to ensure that activities are performed according to the plans and if not then taking corrective action
• Control and evaluation


  It determines the effectiveness of a given strategy in achieving the organizational objectives and taking corrective actions whenever required.
• strategy control and evaluation


  are concerned with tracking the strategy as it is being implemented, detecting any problem areas or potential problem areas, and making any necessary adjustments.
• timely evaluation


  can alert management to problems or potential problems before a situation becomes critical.
• Too much emphasis on controlling

  expensive and counterproductive.
• control and evaluation system


  bridge the gap between strategy development and strategy execution.
• Management 


  implement controls before an activity commences
• Feedforward control


  focuses on the regulation of inputs (human, material, and financial resources that flow into the organization) to ensure that they meet the standards necessary for the transformation process.
• Feedforward controls


  are desirable because they allow management to prevent problems rather than having to cure them later.
• Feedforward control


  also is sometimes called preliminary control, pre-control, preventive control, or steering control.
• Concurrent control


  takes place while an activity is in progress
• Concurrent control


  It involves the regulation of ongoing activities that are part of the transformation process to ensure that they conform S to organizational standards
• Concurrent control


  is designed to ensure that employee work activities produce the correct results.
• Concurrent control


  sometimes is called screening or yes-no control
• Feedback Control


  This type of control focuses on the outputs of the organization after transformation is complete.
• Feedback control


  Sometimes called postaction or output control, fulfils a number of important functions.
• feedback control


  For one thing, it often is used when feedforward and concurrent controls are not feasible or are too costly
• Determine what to control


  What are the objectives the organization hopes to accomplish?
• Set control standards


  What are the targets and tolerances?
• Measure performance


  What are the actual standards?
• Compare the performance to the standards


  How well does the actual match the plan?
• Determine the reasons for the deviations


  Are the deviations due to internal shortcomings or due to external changes beyond the control of the organization?
• Take corrective action.


  Are corrections needed in internal activities to correct organizational shortcomings, or are changes needed in objectives due to external events?
• Strategic control


  is the concern of the firm's top executives
• Strategic control


  it focuses on factors related to external forces and internal performance that are essential to the success of a strategy
• Operational control


  is the concern of a company's operating managers
• Operational control


  it involves allocation and use of a firm’s financial, physical, and human resources.
• Operational control systems


  guide, monitor, and evaluate progress in meeting a strategy's objectives.
• Operational control systems 


  must incorporate standards of performance, measurement of performance, comparison/evaluation of performance, and the impetus of corrective action.
• Operational control systems 


  These components control use of the firm’s financiał, human, and physical resources for effective strategy execution.
• Operational control systems


  The key mechanisms for operational control are budgets and schedules.
• Budgeting


  The budgetary process was the forerunner of strategic planning.
• budget


  is simply a resource allocation plan that helps managers coordinate operations and facilitates managerial control of performance.
• sales budget


  If a firm is seen as a generator and user of funds, sales revenue is critical.
• sales budget


  Most firms employ some form of sales/revenue budget to monitor their sales projections (or expectations) because this reflects a key objective of the chosen strategy
• sales budget


  provides important information for the daily management of financial resources and key feedback as to whether the strategy is working
• capital budget


  is often synonymous with net present value, discounted cash flow, risk-adjusted discount rate, and numerous other techniques for evaluating capital investment decisions.
• capital budget


  These are important techniques but the concern here is the budgetary tool used to implement the capital investment decisions
• capital budget


  is the mechanism for allocating financial resources in implementing major capital investment decisions.