Performance Evulation of Small Enterprise

A businessman always has to look ahead in terms of production, sales, expenses,profitability, customers, etc. In the process of looking forward and assessing his future he should be mindful of various activities happening in his firm. He should occasionally, stop and review his previous activities to see whether his business is running on the right track as he desired or not. Evaluation is a process of systematic investigation and is a part of a project or business enterprise from beginning. It is on essential aid to improve performance, achieving best role for money, improve decision making process and planning is important but review of measurement of performance and its control is also equally important. Both of these are in fact complementary and supplementary to each other. Controlling is effective only when there is proper planning, and planning is fruitful only when there is effective control. The inter-dependency of planning and control can be shown through the following diagram.

Diagram Showing Inter-Dependency of Planning and Control