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Welcome to Seminar Five! MT-140 Class 5 Kym Chavez, MBA Kaplan University.

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1 Welcome to Seminar Five! MT-140 Class 5 Kym Chavez, MBA Kaplan University

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3 Agenda General Questions and Announcements Introduction What People Want from Leaders / Q & A Charismatic versus Transformational Leaders / Q & A Leadership Traits /Q & A Conclusion of Seminar

4 Unit 5 Objectives During this unit we will: 1. Designate conclusions to management issues 2. Discuss the difference between managing and leading 3. Identify aspects of employee motivation

5 Get in the game… In teams of 2-3 people, please think of leaders you’ve worked with in the past: - List the excellent qualities about them and why it was important to you List the not so-excellent qualities about them and why it frustrated you -Talk about as a group

6 Scenario: Steve Jobs went back to work at Apple after a long absence in June of 2009. What kind of leadership does he provide his company? What differences does he make in the success of the company? http://www.youtube.com/watch?v=Yz1-cPx0cIk See his presentation at Mac world conference in 60 seconds!

7 What do people want from their leaders? What are the top five qualities a leader needs to possess in your opinion?

8 What employees want Even "loyal" employees are only committed to managers and companies for about two years, according to a recent study from Walker Loyalty Reports. When you understand what people really want from a manager, you boost your chances of keeping them longer. Here's what our survey findings say:survey ► Honesty More than 90 percent (91.5%) want honesty and integrity from their manager. ► Fairness Nearly 90 percent (89.2%) want their manager to be fair and to hold everyone accountable to the same standards. ► Trust More than 85 percent (86.7%) want to trust--and be trusted by--their manager. ► Respect Nearly 85 percent (84.7%) want to respect--and be respected by--their manager.

9 Part 2 Dependability More than 80 percent (81.2%) want to be able to count on their manager. ► Collaboration More than 75 percent (77.4%) want to be a part of their manager's team and be asked to contribute ideas and solutions. ► Genuineness More than 75 percent (76.2%) want their manager to be a genuine person. ► Appreciation Nearly 75 percent (74.4%) want their manager to appreciate them for who they are and what they do. ► Responsiveness More than 70 percent want (73.9%) their manager to listen, understand, and respond.

10 Don’t Want ► Friendship Not even 3 percent (2.9%) want their manager to be a friend or companion. ► Conversation Not even 15 percent (14.2%) want to have interesting conversations with their manager. ► TLC Not even 25 percent (24.4%) want their manager to care for them. ► Emotional Support Barely 25 percent (25.4%) want emotional support from their manager. ► Cheerfulness Not even 30 percent (28.8%) want a cheerful or happy manager. ► Humor Less than 30 percent (29%) want their manager to be fun-loving or good-humored.

11 THE 8 TOP DON’T LIST FOR LEADERS Great leaders are few and far between. This has nothing to do with genetics. Rather, most people just don’t know how to be leaders. The good news is that it’s relatively easy to learn to be a leader. You can start with these 8 beginner’s errors that can sabotage your efforts as a leader. Leaders never say it can’t be done. Getting things done, in fact, is one of the most important things leaders must do. They especially never tell a constituent that his idea is impossible. Instead, they talk about how to make it happen. Whatever the obstacles, leaders know there is a way over, under, or around almost every obstacle. And they know that hope and faith are more powerful than cynicism. Leaders never focus on the past. Instead, they look to the future. Leaders have a vision, and they communicate this vision. They are passionate about their vision. They see the light at the edge of the darkness, and they point it out to everyone, so that everyone will be looking and walking in the same direction: forward. Leaders never resist change. Instead, they embrace change and turn it to everyone’s advantage. They know that every change represents an opportunity, if we can find that opportunity. And they know that change happens, and that you can’t stop it. So leaders never fight change. Instead, they ask, “How can we make the most of change? How can we work with these changes to demonstrate our own excellence?” Leaders never belittle or scold their constituents. Leaders need others to support them. And belittling or scolding someone is not a way to get his support. So leaders accentuate the positive. “Be hearty in your approbation and lavish in your praise,” as Dale Carnegie put it.

12 CON’T Leaders never tell people what to do. People will do whatever they want, anyhow. So leaders do not tell. Instead, they ask what to do. They feel others’ pains and passions, knowing that these are more powerful than all the orders ever given. They encourage others. They give others the credit. Leaders make others feel proud to live up to their reputations. But even if they don’t live up, leaders still let them save face. Leaders never talk when they could be listening. Leaders always listen twice and talk once. Leaders know that they need the support of others to make a difference. Therefore, they think about others first and how they can better others’ lives. They are genuinely interested in what other people think, and they go out of their way to understand others. And they make powerful connections that last their whole lives. Leaders never fight. A heated argument may be a great way to vent, but all it accomplishes is to make everyone feel keyed-up. Leaders do challenge people— You can’t look to the future without challenging the status quo. And leaders definitely argue passionately for what they believe in. But they don’t participate in arguments. Leaders know that, in Dale Carnegie’s words, “the only way to get the best of an argument is to avoid it.” Instead, leaders begin as friends. They find common agreement early. They know it’s much easier to sell if the prospect is already saying, “Yes.” They know it’s much easier to build positive momentum from agreement than from disagreement. So they show respect for others’ opinions. They always try to see things from the other person’s perspective. And leaders do not tell other people they’re wrong, but leaders do admit readily when they themselves are wrong.

13 What People Want From Their Leaders 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.

14 What People Want From Their Leaders (Continued) Power: Five Sources: 1) Legitimate Power: right and authority 2) Reward Power: controls rewards 3) Coercive Power: punishment control 4) Referent Power: motivational-

15 What People Want From Their Leaders (Continued) Power: Five Sources: -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.

16 EXAMPLES?

17 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.

18 Leadership Traits Drive: Refers to a high level of effort, high need for achievement, energy, tenacity, and persistence. Motivation: Refers to the desire to lead. Related to extroversion and a high need for power. This influences the leader to attempt to influence others and retains the leader’s interest in leadership. Integrity: Refers to the correspondence of actions with words. It denotes honesty and credibility. These traits inspire confidence in others. Self-Confidence: Refers to the ability to overcome setbacks and defeats, to make decisions under uncertainty and to instill confidence in others. Knowledge of Business: Refers to the ability to accurately interpret vast quantities of information relative to the business at hand.

19 QUESTIONS?

20 Slide 7

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22 READING This week's required reading consists of parts of two chapters. The first is from Chapter 9 in the Bateman and Snell text pp. 198-219. The second is from Chapter 10 in the Bateman and Snell text pp. 221-228. In Chapter 9, Leadership, we will explore beyond its definition, the aspects of effective leadership. Chapter 10, Motivating People, covers the ins and outs of this topic.

23 DISCUSSION Jack and Jenny have decided to meet a venture capital group in New York to discuss the possibility of internal expansion of Sandwich Blitz, Inc., and to find out if acceptable financing can be arranged. Jack has always been the one who could voice the Sandwich Blitz vision. He has usually been the visible “voice” for the company while Jenny has usually worked behind the scenes to handle financial matters. They are both worried in this situation. Jack is afraid that he lacks the financial background to satisfy these financiers. Jenny is afraid that she might not have the marketing skills needed to convince this group of the unique capabilities of Sandwich Blitz. Refer to your unit readings, particularly the section on page 202 about leading and managing. 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 Jack or Jenny?

24 ASSIGNMENT Business is going relatively well at Sandwich Blitz, Inc. However, Jack and Jenny 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? Identify at least one source of power that Jack and Jenny 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 Jack and Jenny to the situation.

25 Any Questions ? Slide 67

26 Review

27 For 100 points: Question: Motivation refers to forces that:

28 For 200 points: Question: The motivation theory stating that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end is:

29 For 300 points: Question: Applying a valued consequence to increase a behavior is:

30 For 400 points: Question: Positive consequences that motivate behavior are known as:

31 For 500 points: Question: Administering an aversive consequence is referred to as:

32 # 32 QUESTIONS????? Have a great week!

33 # 33 Great work so far.. Please contact me if you need me… Will send you the link to review if you would like to re- live the moment! See you on the Discussion Board.

34 # 34 Parting Thoughts "I replaced the headlights in my car with strobe lights, so it looks like I'm the only one moving." "I had to stop driving my car for a while...the tires got dizzy." "I went to a general store. They wouldn't let me buy anything specifically." "Some people are afraid of heights. Not me, I'm afraid of widths." "I went to the museum where they had all the heads and arms from the statues that are in all the other museums." Have a great week!

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36 Welcome to MT140 Introduction to Management Unit 6 Seminar – Control

37 Agenda General Questions and Announcements 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

38 REVIEW FOR THE REVIEW…

39 1)Planning involves all of the following EXCEPT: a)Analyzing current situations b)Determining objectives c)Determining rewards for goal achievement d)Deciding actions to be taken

40 1)Planning involves all of the following EXCEPT: Analyzing current situations Determining objectives Determining rewards for goal achievement Deciding actions to be taken

41 2) Which type of power is dominant when a leader is respected for his knowledge? a)Expert Power b)Reward power c)Coercive power d) Legitimate power

42 2) Which type of power is dominant when a leader is respected for his knowledge? a)Expert Power b)Reward power c)Coercive power d) Legitimate power

43 3)Assessing your own company's planning, organizing, leading and controlling efforts is the essential function of: a) Internal audits b) Strategic managers c)Feed forward control d)Feedback control

44 3)Assessing your own company's planning, organizing, leading and controlling efforts is the essential function of: a) Internal audits b) Strategic managers c)Feed forward control d)Feedback control

45 4) Managers conduct _____ audits of other companies and ____ audits of their own company a) Competition, supplier b) External, internal c) Illegal, legal d) Internal, external

46 4) Managers conduct _____ audits of other companies and ____ audits of their own company a) Competition, supplier b) External, internal c) Illegal, legal d) Internal, external

47 5) Departments that are titled marketing, finance, operations, accounting and finance are departmentalized by: a)Product b)Geography c)Function d)Matrix e) All of the above

48 5) Departments that are titled marketing, finance, operations, accounting and finance are departmentalized by: a)Product b)Geography c)Function d)Matrix e) All of the above

49 6) Which type of control takes place while plans are being carried out? a) Feedback control b)Specialist control c) Preliminary control d) Concurrent control

50 6) Which type of control takes place while plans are being carried out? a) Feedback control b)Specialist control c) Preliminary control d) Concurrent control

51 7) Performance standards can be set with respect to any of the following EXCEPT a)Personality b)Quality c)Quantity d)Cost

52 7) Performance standards can be set with respect to any of the following EXCEPT a)Personality b)Quality c)Quantity d)Cost

53 8) Which of the following is(are) a question or questions asked when assessing task performance and group maintenance leadership? a)Is your superior strict about observing regulations? b) Is you superior strict about the amount of work you do? c)Does you superior ask you for reports about the progress of your work? d)All of the above

54 8) Which of the following is(are) a question or questions asked when assessing task performance and group maintenance leadership? a)Is your superior strict about observing regulations? b) Is you superior strict about the amount of work you do? c)Does you superior ask you for reports about the progress of your work? d)All of the above

55 9) _______ power is dominant when a leader is followed due to his/her charisma. a) Legitimate b) Reward c)Referent d)Coercive e)All of the above

56 9) _______ power is dominant when a leader is followed due to his/her charisma. a) Legitimate b) Reward c)Referent d)Coercive e)All of the above

57 10) The level of planning that focuses on routine tasks and a relatively limited time frame is: a) Missionary planning b)Operational planning c)Tactical planning d)Departmental planning

58 10) The level of planning that focuses on routine tasks and a relatively limited time frame is: a) Missionary planning b)Operational planning c)Tactical planning d)Departmental planning

59 11) Which type of power is dominant when a leader utilizes her ability to control punishments? a) Legitimate power b)Reward power c)Coercive power d) Referent power e)Expert power

60 11) Which type of power is dominant when a leader utilizes her ability to control punishments? a) Legitimate power b)Reward power c)Coercive power d) Referent power e)Expert power

61 12) Strategic goals evolve from an organization's: a)Mission and Vision b)Customers c)Tactical plans d)None of the Above

62 12) Strategic goals evolve from an organization's: a)Mission and Vision b)Customers c)Tactical plans d)None of the Above

63 13) Ideally, decision making should be done by: a) Those people most familiar with the issue to be decided b)The top management of the organization c)The customers of the organization d) The board of directors

64 13) Ideally, decision making should be done by: a) Those people most familiar with the issue to be decided b)The top management of the organization c)The customers of the organization d) The board of directors

65 14) Narrow spans of control build ____________ organizations. a) Flat b)Tall c) Wide d)Decentralized

66 14) Narrow spans of control build ____________ organizations. a) Flat b)Tall c) Wide d)Decentralized

67 15) Advances in information technology have created powerful: a) Feedback controls b) Auditing capabilities c) Market controls d)Concurrent controls

68 15) Advances in information technology have created powerful: a) Feedback controls b) Auditing capabilities c) Market controls d)Concurrent controls

69 16) The authority vested in the board of directors is assigned to ________. a)COO b)CEO c)Senior Vice President for legal compliance d)All of the Vice Presidents

70 16) The authority vested in the board of directors is assigned to ________. a)COO b)CEO c)Senior Vice President for legal compliance d)All of the Vice Presidents

71 17) _______________ involves analyzing a situation, determining goals to be pursued and deciding upon the actions that will be taken to achieve these goals. a) Staffing b)Planning c)Organizing d) Leading

72 17) _______________ involves analyzing a situation, determining goals to be pursued and deciding upon the actions that will be taken to achieve these goals. a) Staffing b)Planning c)Organizing d) Leading

73 18) As one of the key management functions, leading focuses on a manager's efforts to: a) Communicate with employees b) Motivate the workforce c)Stimulate high performance d)All of the above

74 18) As one of the key management functions, leading focuses on a manager's efforts to: a) Communicate with employees b) Motivate the workforce c)Stimulate high performance d)All of the above

75 19) Which step in the formal planning process is sometimes ignored? a)Goal and plan evaluation b)Situational analysis c)Monitor and control d)Implementation

76 19) Which step in the formal planning process is sometimes ignored? a)Goal and plan evaluation b)Situational analysis c)Monitor and control d)Implementation

77 READING 1) READING: This week's required reading is Chapter 13 in the Bateman and Snell text pp. 286–307. Control is any process that directs individuals towards the achievement of organizational goals. This can be through three types of control: Bureaucratic control, market control, and clan control. We will explore all three types in this chapter.

78 DISCUSSION: At Sandwich Blitz, Jenny 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. 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?

79 Good Example: Yes, I feel that Sandwich Blitz will benefit greatly by implementing a bureaucratic control system. Store Managers and employees are arriving late to work, and now alterations are being done to time sheets. These are warning signs for Jack and Jenny. A control system is needed to implement the rules from the employee handbook and monitor performance. Jack and Jenny will find that employees will understand what is expected from them. Before any expansion, Jack and Jenny must implement an effective control system to ensure that their current store locations are producing good customer service. If a control system is not put in place, Jack and Jenny can be faced with decrease employee performance which will affect employee moral and customer service. Also, since Jenny has noticed inconsistencies in the employee handbook, maybe they must revise the employee handbook to reflect their goals for their employees.

80 Any questions ? Slide 93

81 ASSIGNMENT: Jenny 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. Jenny 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 Jack 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. After reading the scenario above and the textbook section on Bureaucratic Control Systems on pages 287–289, respond to the following question: 1. How can Jenny apply the four step control process outlined in the text to address this problem?

82 Review of the 4 steps of control systems: 1.Setting Performance Standards 2.Measuring Performance 3.Comparing performance against the standards and determining deviations 4.Taking action to correct problems and reinforce successes

83 Step 1 of Control Systems: 1. 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?

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

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

86 Step 4 of Control Systems: 4. 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?

87 The Control Process

88 Good Example: When Jenny recognized that she had a control issue within the company, she needed to start off with the first step of ‘Setting Performance Standards’ for the issues at hand. In my opinion she should start with finding out why the manager allowed the employee to ‘swap out’ time for their next work week. This is highly illegal and can cause major issues for the company in whole. This would be first and foremost to update in the handbook, the policy on scheduled work time and how to submit for a change in schedule. Within the second step of ‘Measuring Performance’, Jenny actually found the discrepancy on the time sheets for the employee. In evaluating the employee’s time performance and then talking with the manager about the situation, Jenny was able to determine that there was a problem that needed to be fixed. Jenny found that there was no guideline for change of scheduled time in the handbook that was developed when Jack and Jenny managed the location. She also found that employee duties were also not defined in the handbook. Both of these issues are part of the third step of ‘Comparing Performance with the Standard’.

89 QUIZ: 5) During this Unit please take the Quiz, in which you will select facts pertaining to the four functions of management (planning, organizing, leading, and controlling). There are 5 items for each of the four functions for a total of 20 questions. You will be able to view your score in your gradebook after the Unit has ended. (THIS IS DIFFERENT THAN NORMAL).You will only be able to take this review once.

90 Assignment Questions and Answers There are four graded assignments in Unit 6: 1.Review Quiz 2.Discussion Assignment 3.Dropbox Assignment 4.Seminar Quiz Are there questions concerning how you are expected to complete and submit these assignments?

91 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.

92 Seminar Item 2 What is the role of Six Sigma? -Let’s begin by defining it. What is Six Sigma?

93 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.

94 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)

95 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.

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97 Seminar Item 3 Discuss internal vs. external audits -What is an internal audit? -What is an external audit?

98 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

99 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? Audit experience?

100 Recap In this seminar, we’ve discussed: -The four steps/stages in Control Systems -The role of Six Sigma -Internal and External Audits in the workplac e stdrds measure variance correct

101 THANK YOU!


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