Let's Prepare For My College Presentation | Edge Wreck

Main Ideas / Concepts Conveyed

• Purpose of the presentation

  • The speaker presents an MBA 3rd-semester topic: Strategic Management.
  • Specific theme: “Role of Organizational Systems in Evaluation.”
  • They explain why their class presentation is happening later than expected and how they rehearsed the talk multiple times.

• What organizational systems are

  • Organizational systems are the structures, processes, rules, and information flows used to run and manage an organization.
  • The speaker emphasizes that actions are not random—they occur through processes/rules, and information flows must be recorded and tracked.

• Why evaluation needs organizational systems

  • Organizational systems support strategic evaluation by:
    • Collecting information
    • Measuring results
    • Comparing results to determine where the organization is heading
    • Checking whether planned objectives are being met (including positive vs. negative performance trends)

• Key components (“systems”) used in strategic evaluation

  • The evaluation system isn’t just one tool; it’s formed by multiple systems working together:
    • Management Information System (MIS): gathers information, including market/competitor information.
    • Budgeting system: manages monetary matters (income and expenditure).
    • Performance appraisal system: measures employee output, performance, and productivity.
    • Reporting system: sends observed results back to top management/planning.
    • Internal controls system: ensures systems run efficiently; detects waste/overuse/underuse and prevents long-term loss.
    • Additional systems mentioned: feedback/reporting and benchmarking.

• Core problem: bias in evaluation (why systems are needed)

  • If evaluation is based on personal judgment (e.g., liking/disliking someone), it creates bias and inconsistent decisions.
  • Strategic evaluation introduces uniformity and fairness by using standards and structured measurement rather than personal opinion.

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Methodology / Process Explained (Step-by-Step)

1. Set objectives/standards

   • Define targets (e.g., “By end of 2026 produce 100 units”).
   • Establish standards for how much performance is expected and by when.

2. Collect information/data

   • Gather performance data while work is being carried out (information flows are part of the organizational system).

3. Measure actual results

   • Determine what was actually produced/delivered (quantify outputs and performance).

4. Compare results with standards

   • Identify deviations:
     • Positive deviation: output exceeds the target
     • Negative deviation: output falls short of the target

5. Take action based on deviation

   • If positive deviation occurs (target exceeded):
     • Provide incentives/bonus
     • Increase job satisfaction and motivation
     • Reduce employee turnover
     • Learn why good results happened and reinforce effective practices
   • If negative deviation occurs (target not met):
     • Apply corrective measures (varies by organization)
     • Example actions mentioned:
       • Training and development
       • Improving work environment/work habits
       • Making concessions (e.g., hiring better employees)
     • Managers decide and ensure accountability for outcomes

6. Provide feedback and feed it back into planning

   • Send observations back to the “first step” to improve future standards/strategies.
   • If outcomes improved, update the plan to scale what worked.
   • If outcomes worsened, adjust strategies to prevent repetition.

7. Use multiple evaluation systems together

   • Performance evaluation is supported by combining:
     • information systems (MIS, reporting)
     • financial controls (budgeting/internal controls)
     • people metrics (performance appraisal)
     • market comparison (benchmarking)
     • feedback loops

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How Organizational Systems Improve Strategic Control (Functions / Benefits)

• Early warning

  • Systems detect problems early (e.g., sales drop from 100% to 92% signals emerging issues before major decline).

• Coordination

  • When performance declines, relevant departments are brought together (production, raw materials, HR) to diagnose causes and form strategies.

• Accountability

  • Responsibility is assigned by department/person:
    • If production misses targets, production answers first.
    • If production is fine, responsibility may shift to raw material allocation or HR/productivity factors.

• Consistency

  • Uses standard measurement/reporting methods so results are comparable across employees and over time.

• Adaptability

  • Strategies and evaluation systems must evolve as the environment changes (the speaker references examples like AI shifting what strategies work).

• Features of an effective evaluation system

  • Relevant: measures what matters to the objective (not unrelated metrics).
  • Accurate: output measures reflect reality.
  • Timely: data arrives fast enough to act.
  • Flexible: can be updated without excessive cost when conditions change.
  • Economical: benefits exceed the cost of running the system.
  • Simple: understandable enough for managers to use without requiring everyone to be a data expert.

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Risks / What Can Go Wrong If Organizational Systems Are Weak

• Delayed information leads to incorrect decisions.
• Poor or unclear standards cause misleading comparisons (unclean performance).
• Weak hierarchy/control (lack of unity of command) can cause:
  • conflict
  • slow decision-making
  • confusion about responsibilities
• Performance metrics may be manipulated if incentives/controls aren’t robust.
• If organizations don’t learn from deviations:
  • they waste resources spent on evaluation systems
  • negative outcomes may repeat

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Example Used to Illustrate Evaluation and Corrective Action (Retail / Customer Retention)

• Objective example: Increase customer retention by 10%
• Tools/sources mentioned:
  • CRM
  • sales reports
  • customer feedback
  • after-sales service improvements
  • loyalty programs/offers
  • product design aligned with customer needs
• Measurement and deviation:
  • Compare actual retention vs. the goal
  • If goal = 10% and actual = 4%, deviation = negative (−6%)
• Corrective actions:
  • improve service
  • call customers, offer loyalty incentives (e.g., “Buy One Get Free” type promotions)
• Key lesson:
  • evaluate outcomes, compare them to targets, and improve based on the gap

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Central “Crux” / Lesson Emphasized

• Organizational systems quantify and standardize performance.
• They measure outputs, compare them to targets, identify deviations, and then:
  • reward success (positive deviation)
  • correct failures (negative deviation)
  • feed results back into planning so the organization improves and sustains long-term performance

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Speakers / Sources Featured

• Speaker: Pratik (the presenter; no other specific named sources outside of general concepts like MIS/CRM mentioned)
• No external sources: No books, studies, or organizations are cited by name in the subtitles.