2. Introduction to Management
Welcome to MT140
Introduction to Management
Unit 6 Seminar – Control

3. 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

4. REVIEW FOR THE REVIEW…

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

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

7. 2) Which type of power is dominant when a leader is respected for his knowledge?
Expert Power   
Reward power     
Coercive power     
Legitimate power  

8. 2) Which type of power is dominant when a leader is respected for his knowledge?
Expert Power   
Reward power     
Coercive power     
Legitimate power  

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

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

11. 4) Managers conduct _____ audits of other companies and ____ audits of their own company
Competition, supplier     
External, internal
 Illegal, legal    
 Internal, external

12. 4) Managers conduct _____ audits of other companies and ____ audits of their own company
Competition, supplier     
External, internal  
 Illegal, legal    
 Internal, external

13. 5) Departments that are titled marketing, finance, operations, accounting and finance are departmentalized by:
Product     
Geography     
Function
Matrix     
All of the above

14. 5) Departments that are titled marketing, finance, operations, accounting and finance are departmentalized by:
Product     
Geography     
Function
Matrix     
All of the above

15. 6) Which type of control takes place while plans are being carried out?
 Feedback control     
Specialist control     
Preliminary control     
Concurrent control

16. 6) Which type of control takes place while plans are being carried out?
 Feedback control     
Specialist control     
Preliminary control     
Concurrent control

17. 7) Performance standards can be set with respect to any of the following EXCEPT
Personality  
Quality     
Quantity     
Cost

18. 7) Performance standards can be set with respect to any of the following EXCEPT
Personality  
Quality     
Quantity     
Cost

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

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

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

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

23. 10) The level of planning that focuses on routine tasks and a relatively limited time frame is:
 Missionary planning     
Operational planning
Tactical planning     
Departmental planning  

24. 10) The level of planning that focuses on routine tasks and a relatively limited time frame is:
 Missionary planning     
Operational planning
Tactical planning     
Departmental planning  

25. 11) Which type of power is dominant when a leader utilizes her ability to control punishments?
 Legitimate power     
Reward power     
Coercive power
 Referent power     
Expert power

26. 11) Which type of power is dominant when a leader utilizes her ability to control punishments?
 Legitimate power     
Reward power     
Coercive power
 Referent power     
Expert power

27. 12) Strategic goals evolve from an organization's:
Mission and Vision   
Customers     
Tactical plans     
None of the Above

28. 12) Strategic goals evolve from an organization's:
Mission and Vision   
Customers     
Tactical plans     
None of the Above

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

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

31. 14) Narrow spans of control build ____________ organizations.
 Flat     
Tall   
Wide     
Decentralized  

32. 14) Narrow spans of control build ____________ organizations.
 Flat     
Tall   
Wide     
Decentralized  

33. 15) Advances in information technology have created powerful:
 Feedback controls     
Auditing capabilities     
Market controls     
Concurrent controls  

34. 15) Advances in information technology have created powerful:
 Feedback controls     
Auditing capabilities     
Market controls     
Concurrent controls  

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

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

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

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

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

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

41. 19) Which step in the formal planning process is sometimes ignored?
Goal and plan evaluation     
Situational analysis     
Monitor and control  
Implementation

42. 19) Which step in the formal planning process is sometimes ignored?
Goal and plan evaluation     
Situational analysis     
Monitor and control  
Implementation

43. 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.

44. 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?

45. 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.

46. Any questions ?
Slide 93

47. 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?

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

49. 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?

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

51. 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?

52. 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?

53. The Control Process

54. Good Example:
<br>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. <br>
<br>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. <br>
<br>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’. <br>

55. 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.

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

57. 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.
This can include budgets, targets, policies, procedures, regulations.

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

59. 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.

60. 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 accuracy)

61. 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.

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

64. 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
HR Departments are routinely audited in many companies, especially when federal regulations and compliance are involved.
Hospitals have to do internal audits of their records for certification purposes.

65. Audit experience?
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?

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

67. THANK YOU!