1. Introduction to Management
Welcome to AB140
Introduction to Management
Unit 6 Seminar – Control

2. Agenda General Questions and Announcements Introduction
Four Steps of Control Systems
The Role of Six Sigma
Internal vs. External Audits
Unit 6 Coursework
Conclusion of Seminar

3. Unit 6 Quiz 20 Questions Topics: POLC Allowed to enter Quiz one time
Have 2 hours to complete
Sample question slides at the end of this PowerPoint

4. 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.

5. Seminar Item 1: Control Systems
correct
variance
measure
stdrds
Bureaucratic Control Systems: Formal control systems designed to measure progress toward set performance goals and, if necessary, to apply corrective measures to ensure that performance achieves managers’ objectives.

6. 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

7. 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?

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

9. 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?

10. 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?

11. Bureaucratic Control Process
Feedforward control – takes place before operations begin; i.e. policies, procedures, rules
Concurrent control – takes place while plans are being carried out; i.e. directing, monitoring, fine-tuning
Feedback control – use of information about results to correct deviations from acceptable standards, i.e. six sigma

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

13. 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.

14. 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)

15. 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.

16. Seminar Item 3: Audits What is an internal audit?
Discuss internal vs. external audits
What is an internal audit?
What is an external audit?

17. 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.

18. 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?

19. Downside of Bureaucratic Control
What do you think are some negative consequences of bureaucratic control in the workplace?

20. Downside of Bureaucratic Control
Rigid Bureaucratic Behavior – people act in ways that will look good on control system’s measures
Tactical Behavior - employees engage in tactics aimed at “beating the system”
Resistance
More accountability
Changes social structure creating competition
Invasion of privacy
Can change expertise and power structure

21. Effective Control Systems
How can managers make control systems more effective?

22. Effective Control Systems
Establish valid performance standards
Provide adequate information
Ensure acceptability to employees
Maintain open communication
Use multiple approaches

23. Sample Unit 6 Quiz Question 1
1) Wide spans of control build __________ organizations. A. Tall B. Flat C. Narrow D. Centralized

24. Sample Unit 6 Quiz Question 2
2) Which type of power is dominant when a leader has the authority to tell others what to do?
A. Expert Power
B. Reward Power
C. Coercive Power
D. Legitimate Power

25. Sample Unit 6 Quiz Question 3
3) Planning involves which of the following?
A. Attracting people to the organization
B. Determining objectives
C. Determining rewards for goal achievement
D. Motivating people to achieve their job’s goals

26. Sample Unit 6 Quiz Question 4
4) What type of control focuses on the use of performance data to correct deviations from acceptable standards?
A. Feedback control
B. Preliminary control
C. Specialist control
D. Feedforward control

27. Sample Unit 6 Quiz Question 5
5) Leading focuses on a manager’s efforts to:
A. Communicate with employees
B. Motivate the workforce
C. Staff the organization
D. Both A and B

28. Responses Sample Quiz Questions
Responses: 1. B, 2. D, 3. B, 4. A. 5. C

29. Unit 6 Coursework
Reading: Chapter 13 in the Bateman and Snell text; Web readings
Discussion: Focus is “control systems”. Do Dalman and Lei need one to solve an issue? Why or why not?
Assignment: Focus on “4 steps of control systems”. Help Lei solve issue using Bureaucratic Control
Quiz: 20 multiple choice questions concerning planning, organizing, leading and controlling

30. Thank You for Attending