Monitoring and evaluating

• Monitoring is the process of measuring actual against planned performance. They ask the questions: what are the goals? how will they be achieved? 

   
• Taking corrective action: 

  • Modifying is the process of changing existing plans, using updated information to shape future plans. 
  • Sometimes, plans need to be modified as unrealistic expectations are set at the beginning of the planning process, sometimes changes in the external environment means that standards are unattainable. 
  • Corrective action/modifications may involve: changes to materials (raw), products, management practices, delivery of products, human resources, suppliers, operations process, marketing or financial management.  
• Profit:

  • Profit is a crucial indicator of business performance 
  • Profit is watched intensely by managers, owners, investors and creditors
  • It must be monitored and evaluated by the business
  • Profit should be as high as  possible as it is one of the main financial goals of a business which is to gain profit maximisation. 
  • It indicates whether a business is failing or succeeding 
  • Used for dividend payments