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Nucor – unusual in its ability to deal with the entire evaluation and control process
Figure 11-2
• Provides strategic managers with a series of questions to use in evaluating an implemented strategy.
• Strategy review: initiated when a gap appears between a company’s financial objectives and the expected results
of current activities.
• Answering proposed set of questions: manager should have a good idea of where the problem originated and
what must be done to correct the situation
Performance
• End result of activity
• Select measures to assess performance based on the organizational unit to be appraised and the objectives to be
achieved
• Objectives that were established earlier in the strategy formulation part of the strategic management process
(dealing w/ profitability, market share, and cost reduction, among others) should certainly be used to measure
corporate performance once the strategies have been implemented
Types of Control
• Controls – established to focus on actual performance results (output), activities that generate the performance
(behavior), or on resources that are used in performance (input).
• Behavior Control – specify how something is to be done through policies, rules, standard
operating procedures, and orders from a superior.
• Following company procedures, making sales calls to potential customers, and getting to work on time: most
appropriate when performance results are hard to measure, but the cause-effect connection between activities
and resukts is clear.
• Output Control – specify what is to be accomplished by focusing on the end result of the
behaviors through the use of objectives and performance targets or milestones
• Sales quotas, specific cost-reduction or profit-objectives, and surveys of customer satisfaction: most appropriate
when specific output measures have been agreed on but the cause-effect connection between activities and
results is not clear.
• Input Control – emphasize resources, such as knowledge, skills, abilities, values, and
motives of employees
• Number of year of education and experience: most appropriate when output is difficult to measure and there is
no clear cause-effect relationship between behavior and performance (college teaching)