Evaluation and control are part of the business management process along with planning, organizing, and directing….
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Question “Evaluation and control are part of the business management process along with planning, organizing, and directing….”
Evaluation and control are part of the business management
process along with planning, organizing, and directing. Evaluation
and control are often used to break down the control function into
two separate components.
Discuss evaluation and control and its importance by
explaining how it used in today’s business world by using a Fortune
500 company as an example.
***Ford Motor Company***
Answer
It’s crucial to plan in time to assess how a program or strategy is going while you are executing it. This will allow you to make any necessary adjustments. Waiting until the program is over to assess its success can lead to wasted resources and missed opportunities to modify the program.
It’s crucial to plan in time to assess how a program or strategy is going while you are executing it. This will allow you to make any necessary adjustments. Waiting until the program is over to assess its success can lead to wasted resources and missed opportunities to modify the program.
You wouldn’t hire someone to do a job only to have him fail and then let him go. Then you can look back at what went wrong and make adjustments. You assess him periodically to guide his progress and adjust his responsibilities or course as necessary. This is known as “evaluation & control” and is an essential part of managing any job, program, or plan.
Understanding the Goal of Evaluation
Your strategy is based on the current moment. It doesn’t matter what happened in the past, except that you learn from it. You don’t know the future so you can’t plan. You may find that your strategy is being implemented over many years, especially if you are using outdated information. The market is constantly changing
It’s crucial to plan in time to assess how a program or strategy is going while you are executing it. This will allow you to make any necessary adjustments. Waiting until the program is over to assess its success can lead to wasted resources and missed opportunities to modify the program.
You wouldn’t hire someone to do a job only to have him fail and then let him go. Then you can look back at what went wrong and make adjustments. You assess him periodically to guide his progress and adjust his responsibilities or course as necessary. This is known as “evaluation & control” and it’s an essential part of managing any job, program, or plan.
Evaluation and control are steps in a strategic plan. They allow for the plan to be evaluated as it is being implemented, and can then be modified as necessary.
Understanding the purpose of evaluation
Your strategy is based on the current moment. It doesn’t matter what happened in the past, except that you learn from it. You don’t know the future so you can’t plan. You may find that your strategy is being implemented over many years, especially if you are using outdated information. The market is constantly changing.
Your target market may be influenced by a new product or entrant in the market. You may feel that your strategy is not working, but aren’t sure why. You may not be aware that the market has changed but you don’t want to be surprised if it has.
Evaluation is important because you often don’t know anything. The plan’s creators are not responsible for scheduling evaluation and control. The plan’s evaluation doesn’t “grade” those who worked on it; rather, it is a chance for plan designers to participate in strategic evaluation of it — to assess how it’s doing and to make any necessary adjustments. It is normal for things to change over time and adjustments to strategic plans are common.
Understanding the Meaning of Control
Uneasy can be caused by the mere mention of “control”. If someone is in control of something, then everyone else does not have control. And certainly no one wants control.
However, the term “control” is used in the context of “evaluation & control”. It means that those who review the strategy plan can control it by making any necessary changes while it is still operational. The strategic plan’s creators take control of it by evaluating it.
- Find out how effective the plan works
- Find out where your plan isn’t working.
- You should look for any gaps to fill in unexpected actions
- Make adjustments to the plan if necessary
- Changes can be made to the strategic plan to alter it
Four types of control:
Four types of control have been identified by management strategists:
- Premise control Your strategic plan was built on certain premises. These premises include industry factors and specific competitors. You will need to adjust the plan to reflect any changes in these factors.
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Implementation Control: Have activities and projects been completed on time? Are milestones met? What can you do to make sure the plan is implemented according to its intended purpose?
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Special alert control: You must evaluate the impact of a competitor’s product immediately, and not wait for your scheduled evaluation. Special-alert control is necessary for any reason, including a fire in your warehouse that delays delivery, an IT problem that slows down the order process or the discovery of a hacker to your system.
- Strategic-surveillance control: This means paying attention to everything going on around you in your industry and the general economy. You should regularly scan industry publications and attend or read about conventions and conferences. Also, you should network with other people and keep up to date on social media so that you are aware of any changes or happenings that might affect your strategic plan.
You can adjust your strategy plan intelligently through the evaluation and control process.
FORD
Ford Motor Company’s operations management was reformed in 2008 with huge organizational changes. The One Ford Plan, which was developed by then CEO Alan Mulally, made Ford’s operations more efficient in meeting the 10 strategic decision areas. Ford, one of the largest firms in the global automobile industry, has developed operations management strategies that can deal with different business situations based on market contexts. Ford must ensure consistency and flexibility throughout its global operations management team’s 10 strategic decisions.
Ford employs the 10 strategic decisions in operations management to ensure consistency and high productivity. Ford is flexible enough to respond to business changes in different parts of the globe.
Ford Motor Company’s Operations Management, 10 Decision areas
1. Design of Goods and Services. Ford’s strategic decision area in operations management is to achieve global consistent. This consistency is essential for the One Ford mission. This helps Ford to maximize customer satisfaction and financial efficiency.
2. Quality
Management. This strategic area of operations management has one main focus: meeting quality expectations. Ford Motor Company ensures this through its standard quality assurance procedures. Random batch testing is also conducted by the firm to verify product quality. Ford also uses data from market research to determine customers’ quality expectations.
3. Process and Capacity
Design. This strategic area of operations management supports production objectives. Ford was the first to use the assembly line method, which maximises production capacity. Ford is constantly improving its capacity through the development of new facilities to support its supply chain and production network.
4. Location
Strategy. Ford Motor Company’s strategic decision area in operations management is to maximize the strategic benefits of its facilities locations. Ford’s factories in Germany are part of the company’s strategy. Dealership locations, on the other hand are determined by market size.
5. Layout Design and
Strategy. This strategic decision area of operations management aims to optimize workflows and maximize resources. Ford achieves this goal through automation of production processes such as robotics within production facilities.
6. Job Design and Human
Resources. Ford has set out to maximize human resource effectiveness and efficiency in the strategic area of operations management. Ford offers a variety of programs that support employee satisfaction and HR capacity. Ford ensures that its strategies are continuously improved and enhanced by staff development.
7. Supply Chain
Management. This strategic area of operations management focuses primarily on streamlining and cost-effectiveness within the supply chain. Ford’s supply chain includes both company-owned production facilities and third parties. Ford’s vertical integration strategy is backward-oriented. This has led to company-owned facilities like the Ford River Rouge Complex in Michigan. Ford can control some of the raw materials that are used in manufacturing its vehicles through this strategy.
8. Inventory
Management. Ford’s inventory management supports just in time manufacturing methods that require continuous monitoring to adjust inventory and minimize costs. Ford’s actual inventory management performance in this strategic area of operations management also points to market-based inventories decisions. Ford’s inventory management practices vary in each market because of the different challenges.
9. Scheduling. This strategic decision area of operations management considers both the short-term as well as intermediate schedules for processes and resources. Ford addresses these concerns by using semi-automatic scheduling in its offices as well as automated scheduling in its production plants.
10. Maintenance. This strategic decision area of operations management aims to ensure that business processes are adequate to meet demand. Ford achieves this goal by combining strategies in HR, IT and manufacturing, as well maintenance teams for assets and facilities.
Ford Motor Company Productivity
Ford Motor Company’s operations management targets productivity goals in the 10 strategic decision areas. A wide range of productivity measures are used because the company has multiple operations and products. These are some of Ford’s productivity measures:
- Service jobs per day (after-sales productivity)
- The number of vehicles that are produced per day (manufacturing productivity).
- Number of applications processed each day (Ford Motor Credit Company productivity).
Conclusion
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