Four steps of a formal control system Research Paper

Four steps of a formal control system - Research Paper Example Measurement of performance entails activities such as the counting of the number of products or units created, distributed or the amount of cash inflows, outflows and income earned. To measure performance, the requisite data must be collected. The sources of this data could be observation of production activities, written reports from supervisors or managers, and oral reports from employees. Thus, organizations should have skilled staffs to collect and analyze the relevant data. Luckily, the current technological advances and computerization have made it easier for organizations to collect and analyze data and give reports in formats that are easily understood. In addition to making analysis easier, technology has decreased the cost of data handling processes for organizations. Once performance is measured, the findings should be handed over to the right persons to take the recommended courses of action. This handover must be done in time for the timely rectification of discrepancies or variations. The measured performance should then be compared with the standards set at the first step. This exercise is referred to as performance evaluation, to establish the extent to which the standards are met or the objectives are achieved. The impacts of variations or deviations in performance from standards vary across industries and across departments in an organization. For sensitive manufacturing processes, a slight deviation could be detrimental to product quality, thus, to customer satisfaction and loyalty.