What are theproblems in strategic evaluation and control?
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Strategy evaluation is the final stage in the ongoing process of strategic management. The process entails determining the areas of the strategic plan to measure after strategy implementation, and setting benchmarks for measurement. The strategist or manager in charge then compares the anticipated results of the strategic plan and the actual results and makes recommendations. Through strategic evaluation, an organization determines whether it is in compliance with its business goals and objectives.
Corrective Action
It is not uncommon for organizations to change their strategic plans during evaluation. This is corrective action. Yet sometimes the organization must undertake corrective action which completely overhauls the entire strategic plan. This means that people evaluating the strategy have to lower the standards or benchmarks of the strategy. Lowering the standards has the implication of reformulating the strategic plan, its goals and objectives. This requires more resources and time.
Lack of Cooperation
Strategy evaluation, like strategy implementation, requires the cooperation and participation of management and personnel. Unfortunately strategy evaluation, being the final stage of strategy management, is often overlooked. One of the reasons that management and staff may not take strategy evaluation seriously is because they perceive it as time consuming. Strategists thus face the challenge of emphasizing the importance of evaluation to determine if the organization has met its strategic goals.
Measurement
One of the tasks in strategy evaluation is measuring the results of strategy implementation. Maintaining objectivity in assessing and measuring the results of strategic plans is a major challenge. Although strategists use evaluation tools such as financial statements, questionnaires and interviews, some concepts such as manager opinions or contributions are difficult to measure. If the right tools for measuring are available, then the process of strategic evaluation becomes simpler. Lack of appropriate measuring tools slows down strategic evaluation.
Reporting
Strategy evaluations have some similarity with audit reports, which can deliver bad news sometimes. Strategists face the challenge of presenting an honest report of the progress of the strategic plan. As in methods of measuring results, objectivity is also a challenge during the reporting of these results. Inevitably not all personnel or stakeholders will agree with the findings of the strategy report. Strategists therefore face the task of presenting a fair report and one which does not trigger organizational conflict.
Corrective Action
It is not uncommon for organizations to change their strategic plans during evaluation. This is corrective action. Yet sometimes the organization must undertake corrective action which completely overhauls the entire strategic plan. This means that people evaluating the strategy have to lower the standards or benchmarks of the strategy. Lowering the standards has the implication of reformulating the strategic plan, its goals and objectives. This requires more resources and time.
Lack of Cooperation
Strategy evaluation, like strategy implementation, requires the cooperation and participation of management and personnel. Unfortunately strategy evaluation, being the final stage of strategy management, is often overlooked. One of the reasons that management and staff may not take strategy evaluation seriously is because they perceive it as time consuming. Strategists thus face the challenge of emphasizing the importance of evaluation to determine if the organization has met its strategic goals.
Measurement
One of the tasks in strategy evaluation is measuring the results of strategy implementation. Maintaining objectivity in assessing and measuring the results of strategic plans is a major challenge. Although strategists use evaluation tools such as financial statements, questionnaires and interviews, some concepts such as manager opinions or contributions are difficult to measure. If the right tools for measuring are available, then the process of strategic evaluation becomes simpler. Lack of appropriate measuring tools slows down strategic evaluation.
Reporting
Strategy evaluations have some similarity with audit reports, which can deliver bad news sometimes. Strategists face the challenge of presenting an honest report of the progress of the strategic plan. As in methods of measuring results, objectivity is also a challenge during the reporting of these results. Inevitably not all personnel or stakeholders will agree with the findings of the strategy report. Strategists therefore face the task of presenting a fair report and one which does not trigger organizational conflict.
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Explanation:
The problems in strategic evaluation and control :
1) Limit of control: Too much of control manager are not able to work freely that will leads to less production. And if control is too less then process will not be as effective.
2) Resistance: This process leads to control of human behaviour that keeps manger against it.
3) Motivational barriers: Strategic evaluation and control leads to demotivation of the people working in an organisation.
4) Superiority and inferiority Complexes : It leads to the sense of superiority in one who is controlling and inferiority in one who is controlled and evaluated.
5) Operational problems
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