1. Welcome to AB140 Introduction to Management Unit 6 Seminar – Control This seminar is being recorded

2. Instructor’s Information Professor: Theresa Eads Email: teads@kaplan.edu AIM Address: teads07 Telephones 480-788-3774 Office Hours: Sunday and Thursday from 8-9 p.m. eastern time

3. Agenda Review of Unit 5: Leading 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 Special Notes on Unit 6 Quiz Conclusion of Seminar

4. Unit 5 Leadership: Review Leaders Provide: Vision: A mental image of a possible and desirable future state of the organization. Leadership: -Supervisory Leadership: Behavior that provides day-to-day guidance, support, and corrective feedback. -Strategic Leadership: Gives purpose and meaning to organizations by anticipating and envisioning a viable future for the organization and working with others to initiate changes that create such a future.

5. Unit 5 Leadership: Review (Continued) Power is Central to Leadership: 5 Types of Power -1) Legitimate Power: right and authority -2) Reward Power: controls rewards -3) Coercive Power: punishment control -4) Referent Power: motivational - 5) Expert Power: One in which the leader has certain expertise or knowledge that influences others to follow in order to gain this knowledge or expertise.

6. Unit 5 Leadership: Review (Continued) Charismatic vs. Transformational Leaders Charismatic Leaders: Leaders who are dominant, self-confident, convinced of the righteousness of his or her beliefs, and able to arouse a sense of excitement and adventure in followers. Transformational Leaders: Leaders who motivate people to transcend their personal interests for the good of the group. Transactional Leaders: Leaders who manage through their transactions, using their legitimate reward, and coercive powers to give commands and exchange rewards for services rendered.

7. Any questions ?

8. 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.

9. Introduction (Continued) Market Controls – Use economic forces (such as budgets, inter- company transactions) to regulate performance. Clan Control – Features employment empowerment and focuses on the ability of motivated employees to be trusted to exercise self- control in their day-to-day activities. This represents a more current way of viewing control.

10. Review of 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

11. 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?

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

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?

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?

15. The Control Process

16. Any questions ?

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

18. 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.

19. 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)

20. 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.

21. Any questions ?

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

23. 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

24. 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? Audit experience?

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

26. Conclusion The purpose of Six Sigma is to measure and eliminate defects in manufacturing and development. The purpose of internal and external audits is to monitor and ensure that planning, organizing, and leading are in keeping with the organization’s strategic goals and plans. Both of these are control activities and programs.

27. Homework Assignment: Unit 6. After reading the scenario and the textbook section on Bureaucratic Control Systems, respond to the following question: Question: How can Lei apply the four step control process outlined in the text to address the problem of misreporting hours? Write your assessment in paragraph form, using Microsoft Word. Your document should be at least one full double-spaced page (full page) in length, using size 12-point Times New Roman type font. This should be free of spelling and punctuation errors. Submission Instructions: Draft your Assignment paper at least one full double-spaced page in length, using size 12 Times New Roman font in MS Word format. Be sure your paper is well written in paragraph form, with correct spelling, grammar, and punctuation. Be sure to name your file according to the Kaplan file-naming convention. Submit your Assignment to the correct unit Dropbox for grading before the close of the unit as an attachment. NOTE: You do not just name the steps (they must be named) but apply each one to the scenario presented.

28. Class Discussion: Unit 6 Instructions for Unit 6 Class Discussion 1. The Class Discussion scenario is related to the Unit 6 Homework Assignment. Here is the scenario: “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.

29. Class Discussion Unit 6 2. 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? 3. Draft your Initial Discussion Post of at least 100 words addressing the above question. Be sure to post this no later than Saturday night at midnight Eastern. Be sure to post on at least 3 different days.

30. Special Notes: Unit 6 Exam! In this unit, you will have a special 20 question exam covering material from present and past units in your Bateman & Snell EText: The Exam is based on the assigned readings for the Units 3, 4, 5, and 6. This will be multiple choice and you will have 2 hours to complete this. You can only take it one time so do not enter until you are ready to take the Exam. The Exam must be taken in the week of the unit.

31. Special Note Unit 6 Exam This exam is more comprehensive than you have previously encountered in this class. It is based on the Unit 3 to 6 readings.This includes a good review of the material. Note: When you enter the exam area be sure to complete the exam and submit it or it will not let you re-enter!

32. Questions concerning Unit 6 Assignments?

33. Thank You for Joining Me This Evening!