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Conclusion

In this chapter we examined how organisations use various controls to achieve their goals. Managers need to have the skills to maintain proper control over the human and physical resources in their organisations. Evaluation and control plays a central role in the management process to assess how well things are going at every phase of the process and to take whatever action is necessary to improve performance. We evaluate to know how good our strategic plans are and how well they are implemented. The information we get from evaluation enables us to exercise better control over the management process.

We evaluate and control for good reasons: to ensure that the organisation is headed in the right direction, to provide guidance on how good performance can be achieved, and to inspire confidence in the organisation's ability to produce desired results.

How the evaluation and control process works is quite straightforward: establish performance objectives, compare actual performance against these objectives, and take whatever action is necessary to improve performance. By establishing objectives the organisation is forced to constantly re-examine its targets (usually the strategic goals) and ensure they have measurable, realistic outcomes. Think about these steps in relation to your own area of responsibility. Have you designed a control system that will enable you to establish objectives that define certain levels of performance? Can you evaluate actual performance and take appropriate action to ensure that standards are maintained and objectives achieved?

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