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

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

REVIEW FOR THE REVIEW…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  

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  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  

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  

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

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

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.

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?

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.

Any questions ? Slide 93

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?

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

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?

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

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?

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?

The Control Process

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>

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.

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?

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.

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

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.

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)

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.

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?

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.

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?

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

THANK YOU!