1. Cynthia Cherry Welcome to MT 140 Unit 6 - Control

2. 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 2

3. Control Systems Control is one of the four primary functions of management. Process that directs activities toward the achievement of organizational goals Ensuring plans are being carried out 3

4. How do you know if your company is spinning out of control? 4

5. 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 5

6. The Control Process Management: Bateman/Snell 6

7. Bureaucratic Control – 3 Types Feedforward control Concurrent control Feedback control 7

8. How can we develop effective control systems? 8

9. Effective Control Systems Systems based on valid performance standards Communicate adequate information to employees Acceptable to employees Use multiple approaches 9

10. Review 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 10

11. Step 1 of Control Systems 1.Setting performance standards 1.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? 11

12. Step 2 of Control Systems 2. Measuring performance How are performance goals measured in your workplace? 12

13. 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? 13

14. 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? 14

15. Six Sigma What is the role of Six Sigma? –Let’s begin by defining it. What is Six Sigma? 15

16. 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. 16

17. Role of Six Sigma The lower the sigma number, the higher the level of variation or defects. 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) 17

18. 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. 18

19. Internal vs. external audits –What is an internal audit? –What is an external audit? 19

20. 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 20

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22. Assignments Discussion Assignment Dropbox Assignment Unit 6 Quiz Only 2 hours Only enter once 22

23. Lets review some material for your Unit 6 Quiz 23

24. Rules: I will put up the answer You need to type an “A” or “a” and I will call on you You need to type your response AFTER I call on you If the answer is incorrect, I will call on another student I will give everyone several chances to respond Have fun! 24

25. The answer is… The type of power where a leader is respected for his knowledge. 25

26. The answer is… The function of management that involves –Analyzing current situations –Determining objectives –Deciding actions to be taken 26

27. The answer is… This type of analysis is useful in determining the strengths, weaknesses, opportunities, and threats of a company. 27

28. The answer is… The step in the formal planning process that is sometimes ignored. 28

29. The answer is… This management function focuses on a manager’s efforts to communicate with employees, motivate the workforce, and stimulate high performance. 29

30. The answer is… This type of system has four steps –Setting performance standards –Measuring performance –Comparing performance against the standards and determining deviations –Taking action to correct problems and reinforce success 30

31. The answer is… This function of management involves analyzing a situation, determining goals to be pursued and deciding upon the actions that will be taken to achieve these goals. 31

32. The answer is… We talk about the structure of an organization as being tall or flat. Narrow spans of control create this type of organization. 32

33. The answer is… The executive that occupies the top of the organizational pyramid and has the authority officially vested in the Board of Directors. 33

34. The answer is… The type of power when a leader is followed due to his or her charisma. 34

35. The answer is… Advances in information technology have created this type of powerful control. 35

36. The answer is… This level of planning translates strategic goals and plans into specific goals for the organization. 36

37. The answer is… This function of management involves –Attracting people to the organization –Specifying job responsibilities –Marshaling and allocating resources 37

38. The answer is… This type of goal evolves from an organization’s mission and vision. 38

39. The answer is… The type of power where a leader has the right or authority to tell others what to do. 39

40. The answer is… Audits that managers conduct on other companies. 40

41. The answer is… The type of power when a leader utilizes her ability to control punishments. 41

42. The answer is… This level of planning focuses on routine tasks and a relatively limited time frame. 42

43. The answer is… The function of management that involves –Monitoring performance –Implementing change as needed

44. The answer is… This type of goal is going to be time-bound, measurable, specific, relevant, and attainable. 44

45. The answer is… This type of standard can be set with respect to various measures of success such as quality, quantity, and cost. 45

46. The answer is… This type of control takes place while plans are being carried out. 46

47. The answer is… This type of control focuses on the use of information about results to correct deviations from the acceptable standard after they arise. 47

48. The answer is… Audits that are conducted by managers about their own company. 48

49. The answer is… This type of control takes place before operations begin and includes policies, procedures, and rules designed to ensure that planned activities are carried out properly. 49

50. The answer is… Organizations with departments that are entitled marketing, finance, operations, and accounting are set up in this manner. 50

51. The answer is… This type of organization is a hybrid form of organization and has some benefits of a functional organization and some benefits of a divisional organization. 51

52. The answer is… This type of audit is conducted to assess your own company’s planning, organizing, leading, and controlling efforts. 52

53. The Answer is: Determining if your superior is strict about observing regulations, the amount of work that you do and the progress of your work. 53

54. Thank you for attending! Good luck on your quiz! 54