Introduction to Management Welcome to AB 140 Introduction to Management Unit 6 Seminar Controlling Bill Okrepkie WOkrepkie@kaplan.edu bokrepkie@wi.rr.com AIM - WSOkrepkie (262) 345-5033 (h) (605) 390-0466 ©

Agenda General Questions and Announcements Review of last week’s seminar Introduction Four Steps of Control Systems / Q & A The Role of Six Sigma / Q & A Internal vs. External Audits / Q & A Recap Unit Assignment Clarification Conclusion of Seminar

Review of Last Week’s Seminar Questions on: Syllabus Emails AOL AIM Acct Office Hours Grading Criteria Discussion Questions/Participation Assignments Reviews Seminars Grade Book Drop Box Doc Sharing

Did I Answer all your questions from last week.

Unit 5 Objectives During this unit discussed: Designate conclusions to management issues Discuss the difference between managing and leading Identify aspects of employee motivation

Key Concepts One of the four primary functions of management. Combining strategy and interpersonal skills to formulate plans and implement strategies that create positive results. Similarities and differences between leading and managing. Managers can increase people’s effort and performance.

Characteristics of Admired Leaders Consistent over time Broad-minded Honest Supportive Forward looking Dependable Inspiring Cooperative Competent Courageous Intelligent Determined Fair-minded Caring Straight forward Imaginative Mature Ambitious Loyal Self-controlled Kouzes, J. and Posner, B. (2007). Leadership Challenge 4th Ed (p. 30). Jossey-Bass, San Francisco, CA.

Power: Five Sources Legitimate Power: right and authority Reward Power: controls rewards Coercive Power: punishment control Referent Power: motivational Expert Power: One in which the leader has certain expertise or knowledge that influences others to follow in order to gain this knowledge or expertise.

Leadership Styles Visionary Coaching Affiliative How it builds resonance – shared dreams Impact – most strongly positive When appropriate – a new vision or direction is needed Coaching How it builds resonance – person’s wants with team’s goals Impact – strongly positive When appropriate – builds long term capabilities Affiliative How it builds resonance – connects people Impact - positive When appropriate – heals rifts, helps during stressful times, connections Goleman, D., Boyatzis, R., and McKee, A. (2002). Primal Leadership. Realizing the Power of Emotional Intelligence (p. 55). Boston: Harvard Business School Press.

Leadership Styles, Cont. Democratic How it builds resonance – values people’s input Impact – positive When appropriate – build buy-in or consensus Pacesetting How it builds resonance – meets challenging goals Impact – often highly negative When appropriate – need high quality results from motivated team Commanding How it builds resonance – gives clear direction in an urgent situation When appropriate – crisis, turnaround, problem team member Goleman, D., Boyatzis, R., and McKee, A. (2002). Primal Leadership. Realizing the Power of Emotional Intelligence (p. 55). Boston: Harvard Business School Press.

Types of leaders Charismatic Leaders: Transactional Leaders: Transformational Leaders:

Any Questions on Unit 5

Discussion Question In your judgment, what is Sandwich Blitz more in need of in this situation: a manager or a leader? What is the difference between the two? How would you resolve this dilemma if you were Dalman or Lei? Your thoughts

Assignment Business is going relatively well at Sandwich Blitz, Inc. However, Dalman and Lei have noticed that an increasing number of employees and store managers are arriving late to work. They are wondering what they should do. Referring to the textbook section on Power and Leadership on page 203, which of the 5 sources of power should Jack and Jenny employ to address the problem of employee and manager tardiness at work?

Assignment Cont. Identify at least one source of power that Dalman and Lei should employ to address this situation. Describe the characteristics of a leader who possesses the power that you chose. Explain how use of this type of power could be applied by Dalman and Lei to the situation. Your thoughts

Let’s talk about Controlling

Introduction Control is one of the four primary functions of management. Control is any process that directs activities toward the achievement of organizational goals. Formal Control Systems (also referred to as Bureaucratic Control Systems) measure progress toward organizational goals, making corrections and adjustments as needed.

Review of the 4 steps of control systems Taking action to correct problems and reinforce successes Setting Performance Standards Measuring Performance Comparing performance against the standards and determining deviations

Step 1 of Control Systems: Setting performance standards Standard - expected performance for a given goal, a target that establishes a desired performance level; motivates performance, and serves as a benchmark against which actual performance is assessed Can you think of an example of a goal and its standard in your workplace?

Step 2 of Control Systems: Measuring performance How are performance goals measured in your workplace?

Step 3 of Control Systems: Comparing performance against the standards and determining deviations What methods do you or your managers use to perform this step?

Step 4 of Control Systems: Taking action to correct problems and reinforce successes Can you name some methods that managers use to correct problems or reinforce successes in your workplace?

The Control Process

Six Sigma What is the role of Six Sigma? Let’s begin by defining it. What is Six Sigma?

Six Sigma Six Sigma is a quality management concept that has the goal of eliminating defects from a company’s product or service. It involves adjusting various aspects of and around the product or service until it is consistently what the customers want and need. The term “sigma” refers to how far a product or service is from being “perfect”, free of defects (relative to customers’ wants and needs). This state of “perfection” or being as free of defects as possible is believed to be achieved at Six Sigma.

Role of Six Sigma The higher the sigma number, the lower the level of variation or defects. At six-sigma-level, a process is producing fewer than 3.4 defects per million (approximately 99.99966 accuracy)

Role of Six Sigma, (continued) For those organizations that use this tool, the management works hard to engage the organization in an effort to eliminate the causes of all defects in the product or service. One approach that managers may use to address defects is to place employees in work teams that focus on finding improvements and solutions that will prevent a certain defect from arising in the first place.

Internal and external audits External Audit - an evaluation conducted by one organization, such as a CPA firm, on another Internal Audit - a periodic assessment of a company’s own planning, organizing, leading, and controlling processes Have you ever participated in an audit at your workplace? What type of audit was it? What were some of the pros and cons of the audit experience that you noticed?

Assignment Questions and Answers There are four graded assignments in Unit 6: Review Quiz – 60 points Discussion Assignment Dropbox Assignment Seminar Quiz

Discussion Question At Sandwich Blitz, Lei noticed what appeared to be a discrepancy in the time sheet of one of the customer associates. When she asked the unit manager about this, she learned that the crew supervisor had allowed the associate to “swap out” work hours against the next time period. After checking the employee handbook which had been in effect since she and Jack were actively managing the units, she discovered that this practice was not covered. She also realized that many of the duties that employees were expected to do and be evaluated on were also not clearly addressed in the employee handbook.

Discussion Question Cont. Control is any process that directs the activities of individuals toward the achievement of organizational goals. Refer to the unit readings, and in your best judgment based on the readings, do you think that a control system needs to be developed to address these issues? Why or why not?

Assignment Lei noticed what appeared to be a discrepancy in the time sheet on one of the customer associates. When she asked the location manager about this, she learned that the crew supervisor had allowed the associate to “swap out” work hours against the next time period. Lei did not like this practice and immediately viewed this as a control issue. After checking the employee handbook which had been in effect since she and Dalman were actively managing the single location, she discovered that this practice was not covered. She also realized that many of the duties that employees were expected to do and were in fact, evaluated on were also not clearly addressed.

Assignment Cont. After reading the scenario above and the textbook section on Bureaucratic Control Systems on pages 287–289, respond to the following question: How can Lei apply the four step control process outlined in the text to address this problem?

You all did great today. I can hardly wait until next week You all did great today! I can hardly wait until next week . Any other questions from this seminar

It looks like the hour is up It looks like the hour is up. I hope this session was valuable to you and I look forward to seeing you next week. Have a great week and weekend.