Role of the organizational systems

in Evaluation

The process of strategic evaluation and control

does not operate in isolation , it works on the
basis of the different organization systems
( information ,control , appraisal , motivation ,
development and planning) that are used to
implement the strategies.

Role of the organizational systems in

Evaluation
Information system
Evaluation is done by comparing the actual performance
with the standards .
The measurement of performance is done on the basis of
reports generated through the information system
In fact the purpose of the information management system
is to enable managers to keep a track of performance
through control reports .

Role of the organizational systems

in Evaluation
Control system
Is used for setting standards ,
measuring performance , analyzing
variances , and taking corrective
actions .

Role of the organizational systems

in Evaluation
Appraisal system
When the performance of the managers is appraised , it
is the contribution to the organization objectives which
is sought to be measured .
It is difficult to measure differentiate strictly between the
performance of individuals and that of the
organizational units they belong to .
The evaluation process , through the appraisal
system ,measures the actual performance and
provides the basis for the control system to work.

Role of the organizational

systems in Evaluation
Motivation System
Its role is to induce strategically the desirable behavior
so that the managers are encouraged to work towards
the achievement of organizational objectives .
The motivation system plays significant role in
ensuring that the deviation in the actual performance
from standards do not occur , or if they do , then they
are corrected by the means of rewards or penalties .
Incentive system is directly related to the deviations

Role of the Organizational

Systems in Evaluation
Development System
Most important task of development is to match a person with
the job to be performed i.e matching the actual performance with
the standards .
This matching can be done provided it is known what a manager
is required to do , and what is deficient in the terms of
knowledge , skills and attitude.
A corrective action in the evaluation process is , in reality , the
taking of steps that would lead to the development of individual
who are enabled to perform as required.
The role of development system is evaluation is therefore to help
strategists to initiate and implement corrective action.

Role of the Organizational

Systems in Evaluation
Planning System
Evaluation process is the part of the strategic management hence
it has to be planned for .

Questions like :

Who will perform evaluation

How will the information generated used
How much resources will be required ?
To what extent will control be exercised so that it is cost
effective ?

The evaluation process provides feedback to the planning

system for the reformulation of strategies , plans and
objectives .
Thus planning system interacts closely with the evaluation
process on the continual basis .