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Unit 14: Strategic Evaluation and Control
Appraisal System Notes
This is the system that actually evaluates performance. When measuring the performance of
managers, it is contribution to the organisational objectives which is sought to be measured.
The evaluation process through appraisal system, measure the actual performance and provides
for the control system to work.
Motivation System
The primary role of the motivation system is to induce strategically desirable behavior so that
managers are encouraged to work towards the achievement of organisational objectives. This
system plays an important role in ensuring that deviations of actual performance with standards.
Performance checks, which are a feedback in the evaluation process, are done through the
motivation process.
Development System
The development system prepares the managers for performing strategic & operational tasks.
Among the several aims of development, the most important is to match a person with the job
to be performed. This in other words is matching actual performance with standards. This
matching can be done provided it is known what a manager is required to do and what is
deficient in terms of knowledge, skills & attitude. Such a deficiency is located through the
appraisal system. The role of development system in evaluation is to help the strategists to
initiate & implement corrective action.
Planning System
The evaluation process also provides feedback to planning systems for the reformulation of
strategies, plans & objectives. Thus planning system closely interacts with the evaluation process
on a continual basis.
Case Study Global Automotive Giants – Toyota, GM and Ford
n March 2004, the Japanese automotive company Toyota announced that it had sold
6.78 millions cars and trucks around the world in the year 2003. This total was 60,000
Ihigher than the American company Ford. It was the first time ever that Toyota had
beaten Ford. It made Toyota second only to the American company General Motors in
world automotive sales. (By the time this case goes to the press, Toyota might have
surpassed even GM). This case explores competition in the global automotive industry.
Toyota Strategy – Stand Alone
In around 2000, Toyota identified its purpose to take over global market leadership by
2010. It called this its ‘2010 Global Vision Strategy’. During the 1980s and 1990s, the company
targeted North America as its prime strategic focus. Along with Honda, Toyota launched
cars of superior quality and with lower manufacturing costs than its US competitors.
During the years 1991-2002, the main three US companies GM, Ford and DaimlerChrysler
lost over 21 percentage share points of the American car market to Japanese and European
Contd...
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