Evaluation And Control

Evaluation And Control StrategyBy :Tantri Widya S125030207111100Oktavika Alrina M125030207121004Evaluation and control the strategy According to Norman E. Gronlund; evaluation is a systematic and continuous process to efficiently determine activity.According to George R.Tery (2006:395) control is to determine what is accomplished, evaluating it an apply corrective measures, if need, to insure result in keeping with the planEvaluate and controls contdEvaluate and controls are performance with the expected results and provide feedback so important to the management of the evaluation results can be taken necessary corrective action in accordance.

Evaluation and control strategy process.

Rumelts criteria for evaluation strategies which can be used to pick strategies and can be used for control.Consistency - Is the strategy of conflict with each other, and whether the conflict of their strategies according to the purpose, is the transfer of their goals?. A strategy is supposed to make the objectives and policies are consistent.Consonance - Referring to the need for the preparation of a series of strategies to assess trends and individual trends and whether the appropriate strategy sets a trend that usually involves the interaction between trends in evaluating the strategy.Rumelts criteria contd3. Feasibility of strategy - Are resources available, capital, materials, financial and Are human resource skills, abilities, competencies available.4. Advantage of strategy- result of the advantages has superior competence in resources, skills and how to position plays an important role in the strategy of the companyMeasuring Performance Performance is the end result of activity. Select measures to assess performance based on the organizational unit to be appraised and the objectives to be achieved.Traditional Financial MeasuresStakeholder MeasuresShareholder ValueBalance scorecard Approach

Deviation Factor Analysis in the implementation of the strategy.

Deviation factor is a factor that can cause irregularities in the implementation of the strategy. Trying to evaluate quantitatively the effectiveness of the company's strategyThe Evaluation is based on Quantitative and Qualitative Criteria.Problems in Measuring Performance

Short-term orientationGoal displacementBehavior substitutionSub optimization

Types of Control1. OUT PUTOutput controls specify what is to be accomplished by focusing on the end result of the behaviors through the use of objectives and performance targets.2. BEHAVIORBehavior controls specify how something is to be done through policies, rules, standard operating procedures, and orders from a superior. 3. INPUTInput controls emphasize resources-skills, abilities, values, motives.

Types of Control contd4. ACTIVITY-BASED COSTING- Activity-based costing (ABC) is a recently developed accounting method for allocating indirect and fixed costs to individual products or product lines based on value added activities going into the product.5. ENTERPRISE RISK MANAGEMENT (ERM) a corporate wide, integrated process for managing the uncertainties that could negatively or positively influence the achievement of the corporations objectives.

FOLLOW-UP STRATEGY FOR IMPROVEMENTA. Taking Corrective ActionActivity last evaluation strategy, which is to taking corrective action is making changes to reposition the company to a more competitive for the future.

FOLLOW-UP STRATEGY FOR IMPROVEMENT contdB. Guidelines for Proper Control Control should involve only the Minimum amount of information necessaryControls should monitor only meaningful activities and resultsControls should be timely Long and short-term controls should be usedControls should aim at pinpointing exceptionsEmphasize the reward of Meeting/exceeding standards

FOLLOW-UP STRATEGY FOR IMPROVEMENT contdc. Strategic Incentive Management

Weighted-factor methodLong-term evaluation methodStrategic funds method