Evaluation And

Control Strategy

By :
Tantri Widya S 125030207111100
Oktavika Alrina M 125030207121004

Evaluation 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 plan

Evaluate and controls contd

Evaluate 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.

1. 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.
2. 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 contd

3. 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 company

Measuring 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.
a. Traditional Financial Measures
b. Stakeholder Measures
c. Shareholder Value
d. Balance 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
strategy
The Evaluation is based on
Quantitative and Qualitative
Criteria.

Problems in Measuring Performance

Short-term orientation
Goal displacement
Behavior substitution
Sub optimization

Types of Control
1. OUT PUT
Output 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. BEHAVIOR
Behavior controls specify how something is to be
done through policies, rules, standard operating
procedures, and orders from a superior.
3. INPUT
Input controls emphasize resources-skills,
abilities, values, motives.

Types of Control contd

4. 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

IMPROVEMENT
A. Taking Corrective Action
Activity 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 contd
B. Guidelines for Proper Control

1. Control should involve only the Minimum

amount of information necessary
2. Controls should monitor only meaningful
activities and results
3. Controls should be timely
4. Long and short-term controls should be used
5. Controls should aim at pinpointing exceptions
6. Emphasize the reward of Meeting/exceeding
standards

FOLLOW-UP STRATEGY FOR

IMPROVEMENT contd
c. Strategic Incentive Management
Weighted-factor method
Long-term evaluation method
Strategic funds method