Steps 6 and 7. The measurement of actual results and compare with the plan. Responding to the divergence from the plan to the end of the year actual results should be compared with those expected according to the long-term plan. Long-term plans should be reviewed in the light of this comparison, and progress has been made in order to achieve the goals of the Organization should be evaluated. Management may also consider the feasibility of achieving the targets in the light of unforeseen situations arose during the year. If this plan is now no longer able to achieve the following strategic alternative that must be considered in order to achieve the goals of the Organization, as indicated by the feedback loop (arrow) connection step 7 step 2. This aspect of the control was done by senior management, usually on an annual basis. Controlling the daily activities are performed by the subordinate managers. On regular time period they must be provided with the report which includes the detailed comparison of actual results and the results of the budget. Performance reports provide feedback by comparing the expected and actual results. This report will highlight the activities not consistent with the plan, so the managers can spend time with his rare to focus on this item. Effective control requires corrective action to be taken to the actual results match the expected results, as indicated by the feedback loop that links the steps 5 and 7. Isolate the inefficiencies in the past and the reason they will allow the managers to take action that will avoid the inefficiencies of the same is repeated in the future. The system provides information for that compare performance with the budget numbers are called accounting responsibilities. We will return to this topic later in the unit.
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