Welcome to MT140 Control Wendy Davis

Unit 5 Leadership: Review Leaders Provide: Vision: A mental image of a possible and desirable future state of the organization. Leadership: -Supervisory Leadership: Behavior that provides day-to-day guidance, support, and corrective feedback. -Strategic Leadership: Gives purpose and meaning to organizations by anticipating and envisioning a viable future for the organization and working with others to initiate changes that create such a future.

Agenda Review of Unit 5: Leading Introduction: Unit 6 Objectives Four Steps of Control Systems / Q & A Internal vs. External Audits / Q & A The Role of Six Sigma / Q & A Unit Assignment Clarification Special Notes on Unit 6 Quiz Conclusion of Seminar

Unit 5 Leadership: Review (Continued) Power is Central to Leadership: 5 Types of Power -1) Legitimate Power: right and authority -2) Reward Power: controls rewards -3) Coercive Power: punishment control -4) Referent Power: motivational - 5) 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.

Unit 5 Leadership: Review (Continued) Charismatic vs. Transformational Leaders Charismatic Leaders: Leaders who are dominant, self- confident, convinced of the righteousness of his or her beliefs, and able to arouse a sense of excitement and adventure in followers. Transformational Leaders: Leaders who motivate people to transcend their personal interests for the good of the group. Transactional Leaders: Leaders who manage through their transactions, using their legitimate reward, and coercive powers to give commands and exchange rewards for services rendered.

Any questions ?

Unit 6 Objectives Distinguish between the four functions of management Explain the significance of control systems in business Summarize the design of a formal control system

Control Systems Process that directs activities toward the achievement of organizational goals Ensuring plans are being carried out

Why do companies need control systems?

Spinning out of control? Lax top management Absence of policies Lack of agree-upon standards “Shoot the messenger” management Lack of periodic reviews Bad information systems Lack of ethics in the culture

Different Types of Control Bureaucratic Control Market Control Clan Control

4-Step :The Control Process Management: Bateman/Snell

Step 1 of Control Systems 1.SETTING PERFORMANCE STANDARDS Goals Profitability Customer Satisfaction Level of expected performance

Step 2 of Control Systems 2. MEASURING PERFORMANCE Collect Data

Step 3 of Control Systems 3.COMPARE PERFORMANCE Standards Determine deviations

Step 4 of Control Systems 4. TAKE ACTION Correct problems Reinforce success

Bureaucratic Control – 3 Types Feedforward control Concurrent control Feedback control

Are there downsides to this type of system?

Rigid bureaucratic behavior Tactical behavior Resistance

How can we develop effective control systems?

Effective Control Systems Systems based on valid performance standards Communicate adequate information to employees Acceptable to employees Use multiple approaches

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

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.

Six Sigma (cont.) 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 accuracy)

Six Sigma (cont.) 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

Other types of controls used?

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.

Unit 6 Assignments Discussion Assignment: Situation described and you are asked based on your readings you determine whether a control system needs to be developed then you would support why or why not. Word count; at least 100 words Dropbox Assignment: You will apply the 4 step control process to a specific situation. The situation involves Jenny and is described in the instructions. Remember to be very specific. For example: if you say that you would establish a goal. You would have to give an example of a specific goal. Word content: at least 100 words.

Unit 6 Quiz -Two Hours (once entered the quiz must be completed). You can NOT re-enter the quiz. -20 Multiple Choice -Chapters 1,4,6,9, and13. Tip: By looking at each Unit’s reading, you can narrow the actual page range from which these questions come. For example, Unit 6 has assigned Chapter 13 reading in pp Therefore, I suggest that you use your book to your advantage. This includes a good review of the material. -Covers: The Four Functions of Management