Situation: Evaluatory situation

Hi, welcome to the twenty fifth day of The Leads Intellectual challenge: a 30-day challenge with Fatai Kareem. If you like to know more about competitive situation, read the twenty fourth day challenge here.

Today, he will be discussing another type of situation known as evaluatory situation. Why does company perform background screening? Why do9 company audit their financial statements? Why is research conducted?

Well, understanding evaluatory situation will enable you to answer questions like the ones above. What is evaluatory situation?

Evaluatory situation is a situation in which a condition is being evaluated or subjected to critical and objective review so as to determine its reliability or compliance. This is a situation with questions of truthfulness, quality, compliance, or reliability. It occurs due to the need to determine objectively whether a condition is true and fair, meet or comply with certain criteria, or not.

This is a situation that may involve auditing,  inspection, review, criticism, investigation, research, experiment, exploration, etc. It may also involve comparing a condition with established standard or criteria, so as to determine whether the condition should be accepted or rejected. Then, such condition is considered to be verified or qualified when it is accepted. Hence, it earns the trust of those who rely on the system through which its reliability, compliance or objectivity is verified. 

This situation occurs to ensure that only a condition that is error- free, accurate, true or complete is used for decision making, hence minimises the risk of wrong decision-making due to error or wrong information. 

This situation follows confirmatory principle of truth, a principle proposed by Fatai Kareem, that states that an unverified information or belief is just an assumption which may not be true. In order to eliminate the risk of this assumption, then evaluatory situation occurs and establishes the compliance or reliability of the condition upon which decision can be made.

In order to put an effective evaluatory situation in place, these steps maybe helpful:

• Define the need for the situation. This will enable you to what you want to achieve at the end.

• Collect data about the condition to be evaluated. This will enable you to understand the state of the condition, how it occurs and the kind of effect it has.

• Analyse the collected data. This will enable you to understand how the condition should be and how it is. Then, you can gain an insight into what needs to be done.

• Prepare a fact-based report. This will enable you to present your findings with respect to the analysed data, and establish the truth about the condition.

• Make recommendation for improvement. This will enable you to achieve the purpose of having the situation in place.

• Integrate monitoring and control measures into the condition. This will ensure that the condition does not go below the acceptable level.

Case study

1. At ABCDEF plc, fraud is perpetrated and the financial statements are window-dressed. How can this be discovered? What benefit will the company gain from evaluatory situation?

2. A and B are arguing about gravity. A claims that bigger objects fall faster than smaller objects. While B claims that both fall at the same rate. Who is right between them? How can they prove their claims?

Disclaimer: All names used are for illustration purpose.

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