 Determine the reasons for the deviation.

The deviations of actual performance against standards

are analyzed.
 Take necessary corrections. It corrects activities that are not aligned in the objectives of the
organization.

MODES OF CORRECTIVE ACTION

Mangers can choose from different modes of corrective action based on control
standards.

 Normal mode. It is a normal, routine approach, wherein the organization has no

crisis to confront with.
 Crash mode. It expedites the response process to face the problem at hand.
 Preplanned crisis mode. There is a planned response so it usually increases the
capacity for handling strategic surprises.

Usually managers identify the areas that need corrective action. There is a need to
revise the standards when they are not attuned to the strategies being implemented.
Sometimes, the objectives have to be revised. There are certain forces in the environment which
may affect the strategic objectives; therefore, circumstances may prompt managers to change
them rather than the standards.

In some cases, the strategies are revised. As a form of corrective action, strategies are
changed which are more appropriate to the given objectives. There may be times also that the
structure or system is changed. One underlying reason is an error in the organizational structure
and reporting relationships. But the most common corrective action is seen in the activities or
programs during the implementation of the strategies.

CHARACTERISTICS OF A GOOD EVALUATION

A good strategic evaluation possesses several qualities. Strategic control neither be too
costly nor too cheap. It does not work well when there is too much information or there is too
little information either. In line with this, the evaluation should be in consonance with the firm’s
objectives. For example, when a product is launched, it is important to have a weekly
monitoring of its status in the market. However, it is not good to keep on monitoring the
research and development every other day as this will become dysfunctional. Frequent
measurement may ruin a strategic control, if the company only requires at least a monthly
control.

Strategic control should project a true picture of what is really happening in the
company subject to environmental conditions. For example, quotas are not being met even
though employees are working hard. The situation outside reveals an inflation rate to the
highest level and the company’s product offerings are severely affected.

Controls should be action-oriented. They should also work hand in hand with the goal of
achieving company objectives and dominate decisions. To be action-oriented, it should
therefore be familiar with the external environment as well. There are cases when a company
only work on the internal forces, unmindful of external ones.