1. 14–1Copyright © 2006 Thomson Business and Economics. All rights reserved. Agenda/Announcements Agenda –Case Study – Rodriguez Clothing –Chapter 14 –Previous Chapter Clean Up (Chapters 7,8 &11) –Student Evaluations Announcements –Attendance Information –Reflection Journals Due in Class or via E-Submit –Team Papers due Thursday in class or via E-Submit –Peer Evaluations for Team Projects Form on Class Website and will e-mail Please return by Monday 3/13 –Reference Pages for Multiple Choice Exam –Thursday – Material Review and Conflict Resolution Review

2. PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2006 Thomson Business and Economics. All rights reserved. Chapter 14 Control Systems: Financial and Human

3. 14–3Copyright © 2006 Thomson Business and Economics. All rights reserved. The Systems Process with Types of Controls Exhibit 14–1 Recall – “Fix the Process” Case Study (Packaging Company Case) Controls/Metrics/Feedback Provide Information for Problem Solving

4. 14–4Copyright © 2006 Thomson Business and Economics. All rights reserved. “Fix the Process, Not The Problem” ( Sirkin and Stalk) Everyone is a Problem Solver –Identifying Problems and Fixing/Improving Entire Organization “Learned-to-Learn” Multiple Stages Described: 1. Fix as Fail (Fixes Before Impacts Customer) End Process Inspection - REWORK 2. Prevention (ID Problems – Feed Information to fix process) In Process (Can Be a “Bandaid”) CONCURRENT 3.Find the Root Cause(s) 4.Anticipation Time is available to Look Forward (PRELIMINARY)

5. 14–5Copyright © 2006 Thomson Business and Economics. All rights reserved.

6. 14–6Copyright © 2006 Thomson Business and Economics. All rights reserved. Systems Processes for Functional Areas/Departments Exhibit 14–2

7. 14–7Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 14–3 The Functional Process between Functional Areas/Departments

8. 14–8Copyright © 2006 Thomson Business and Economics. All rights reserved. The Control Systems Process Exhibit 14–4 Quantity Quality Time Cost Behavior Critical success factors Performance or variance report Metrics/Controls: 1)“You Get What You Measure” (Measure it and It Shall Happen…to the Detriment of Other Objectives if Not Careful) 2)Must Have A Balanced Scorecard 1)Financials (Revenues or Costs) Volume X Per Unit $ 2)Quality 3)Service 4)Employee Morale

9. 14–9Copyright © 2006 Thomson Business and Economics. All rights reserved. Steps in the Master Budgeting Process Exhibit 14–7

10. 14–10Copyright © 2006 Thomson Business and Economics. All rights reserved. Human Controls Coaching –The process of giving motivational feedback to maintain and improve performance. Management by Walking Around (MBWA) –Listening rather than talking –Teaching rather than telling –Facilitating rather than ordering

11. 14–11Copyright © 2006 Thomson Business and Economics. All rights reserved. Coaching Model 1.Describe current performance. 2.Describe desired performance. 3.Get a commitment to the change. 4.Follow up. Exhibit 14–9 Recall – Human Resource Management – Developing Employees

12. 14–12Copyright © 2006 Thomson Business and Economics. All rights reserved. Types of Employee Problems Performance Issues – Not Always Blame Employee! –Processes or Systems Don’t Work Well –Employee does not have the Training or Job Aids –Employee does not have Tools or Equipment to do the Job Employees who do not have the ability to meet the job performance standards. –5 Why’s???? Employee Attitudes –Employees who do not have the motivation to meet job performance standards. –Employees who intentionally violate standing plans. –Employees with problems. Blame the Process Not the People!! 5 Why’s Are a Place to Start!

13. 14–13Copyright © 2006 Thomson Business and Economics. All rights reserved. Problem Employees Exhibit 14–10 The late employee The absent employee The dishonest employee The violent or destructive employee The alcoholic or drug user The nonconformist The employee with a family problem The insubordinate employee The employee who steals The sexual or racial harasser The safety violator The sick employee The employee who’s often socializing or doing personal work

14. 14–14Copyright © 2006 Thomson Business and Economics. All rights reserved. A.Clearly communicate the standards and standing plans to all employees. B.The punishment fits the crime. C.Follow the standing plans yourself. D.Take consistent, impartial action when the rules are broken. E.Discipline immediately, but stay calm and get all the necessary facts before you discipline. F.Discipline in private. G.Document discipline. H.When the discipline is over, resume normal relations with the employee.

15. 14–15Copyright © 2006 Thomson Business and Economics. All rights reserved. The Discipline Model 1.Refer to past feedback. 2.Ask why the undesired behavior was used. 3.Give the discipline. 4. Get a commitment to change and develop a plan. 5.Summarize and state the follow- up.