Question based on UPES SM Solved Assignment and other course
Answer:
There are five major types of barriers in evaluation:
The limits of control, difficulties in measurement, resistance to evaluation, tendency to rely on short-term assessment, and relying on efficiency versus effectiveness.
Limits of Control: By its very nature, any control mechanism presents the dilemma of too much versus too little control. It is never an easy task for strategists to decide the limits of control. Too much control may impair the ability of managers, adversely affect initiative and creativity, and create unnecessary impediments to efficient performance. On the other hand, too less control may make the strategic evaluation process ineffective and redundant.
Difficulties in Measurement: The process of evaluation is fraught with the danger of difficulties in measurement. These mainly relate to the reliability and validity of the measurement techniques used for evaluation, lack of quantifiable objectives or performance standards, and the inability of the information system to provide timely and valid information. The control system may be distorted and may not evaluate uniformly or may measure attributes which are not intended to be evaluated.
Resistance to Evaluation: The evaluation process involves controlling the behavior of individuals and, like any other similar organizational mechanism, is likely to be resisted by managers.
Short- termism: Managers often tend to rely on short-term implications of activities and try to measure the immediate results. Often, the long-term impact of performance on strategy and the extended effects of strategy on performance is ignored. This is so as immediate assessment seems to be the easy way out and taking the long-term implications into account may be seen as too tedious.
Relying on Efficiency Versus Effectiveness: It is instructive to remember that efficiency is .doing the things rightly, while effectiveness is .doing the right things. There is often a genuine confusion among managers as to what constitutes effective performance. Measuring the wrong parameters may lead to a situation where the right type of performance does not get rewarded. In fact, sometimes performance that does not really contribute to the achievements of objectives may be rewarded if assessed on the basis of efficiency alone.
How can these barriers be avoided? In this context, it is apt to quote Andrews when he says: .the true function of measurement (or evaluation) is to increase perceptions of the problems limiting achievement.. This is indeed a profound statement. In Andrew’s opinion, it is the attitude towards evaluation that is more important than the process of evaluation itself. For instance, bureaucratic control often ends up being control just for the sake of control and not for the real purpose of finding out what is obstructing effective performance. The real worth of evaluation lies in its ability to throw up the problems that are constraining achievement and then doing something about them so that performance can be made effective.
The basic issue in all evaluation should be that control should be dictated by strategy. There needs to be a vertical fit between the strategy requirements, and the evaluation and control exercised over the performance. The guidelines below are suggested in order to make controls effective.
- Control should involve only the minimum amount of information as too much information tends to clutter up the control system and creates confusion.
- Control should monitor only managerial activities and results even if the evaluation is difficult to perform.
- Controls should be timely so that corrective action can be taken quickly.
- Long-term and short-term controls should be used so that a balanced approach to evaluation can be adopted.
- Controls should aim at pinpointing exceptions as nitpicking does not result in effective evaluation. The 80:20 principle, where 20 percent of the activities result in 80 percent of achievement, needs to be emphasized. Getting bogged down with the activities that do not really count for achievement makes the evaluation ineffective.
- Reward for meeting or exceeding standards should be emphasized so that managers are motivated to perform. Unnecessary emphasis on penalties tends to pressurize the managers to rely on efficiency rather than effectiveness.