Answered! Question 75 List and describe the three [3] stages of the evaluation and control process. [3 Marks]…

Question 75

List and describe the three [3] stages of the evaluation and control process. [3 Marks]

Expert Answer

The three steps involved in evaluation and control process are quite straightforward. First, in order to understand whether the performance is according to the plan not, in is essential to set the standards. The standard provides the guideline as to whether a performance metric is below or above it. These could include the strategic goals and objectives, or operational plans that have been set up in order to meet the goals and objectives. The firm must ensure that these objectives are having measurable outcomes.

The second stage is to evaluate the actual performance parameters against the set objectives. Evaluation refers not only to record the variation with respect to the standard but also to find the root cause responsible for that variance. Once the analysis becomes stronger, the root cause becomes certain which helps to perform the next stage of the process.

The third and final stage of the evaluation and control process is to take necessary corrective or preventive action on the basis of the gaps between the actual performance parameters and the set standards. As mentioned earlier, the more comprehensive the analysis, easier to pinpoint the ground where these actions would be implemented. After implementing the actions, it is necessary to monitor the result for a given period of time, if the gap is still unfulfilled, then we would say that the countermeasure was ineffective and plan for further alternatives.

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