2. It is defined as the process of determining the
effectiveness of a given strategy in achieving the
organizational objective and taking corrective action
wherever required.
It is the final step of strategy management process.
The key strategy activities are: appraising internal and
external factors that are the root of present
strategies, Measuring performance, and taking
remedial actions. Evaluation makes sure that the
organizational strategy as well as its implementation
meets the organizational objectives.
3. Test effectiveness of strategy
Formulation and implementation of strategy.
Is strategy meeting organizational objectives.
4. It gives feedback
Achieving goals and objectives.
It alerts on potential problems
It helps refine and improve strategy
It helps to change strategy
It helps to identify rewarding behavior
It helps to fix responsibility
It helps in future planning
Measuring performance
Variance and corrective actions
Information to stakeholders
5. Shareholders
Board of directors
Chief Executives
Profit –Centre heads
Financial controllers
Company secretaries
External and Internal Auditors
Audit and Executive Committees
Corporate Planning staff or department
Middle level managers
6. Fixing benchmark of performance
Measurement of Performance
Identifying Variances
Taking corrective and remedial actions.
8. Types:
1. Premises Control:
a. Environmental Factors b. Industry Factors
2. Strategic Surveillance (Environmental
Scanning)
3. SpecialAlert Control
4. ImplementationControl
9. Limits of control (Too much vsToo little control).
Difficulties in measurement
Motivational problems
Short term orientations
Goals displacement
Resistance to evaluation
10. It should involve only the minimum amount of
information.
It should be timely.
Long term and short term controls should be used.
It should emphasize the reward of meeting or
exceeding the standards rather than punishment
for failing to meet standards.
Encourage employees participation