Welcome to MT140

1. Welcome to MT140 Unit 6 Seminar – Control Introduction to Management Professor Shani Lenard, MS, MA This seminar is being recorded

2. 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

3. Review of Unit 5 What was some of the key differences between leadership and management?

4. Unit 5 Leadership: ReviewLeaders 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. Great work last week!

9. 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.

10. 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.

11. 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

12. Step 1of 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?

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

14. 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?

15. 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?

16. The Control Process

17. Any questions ?

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

19. 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.

20. 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)

21. 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.

22. Any questions ?

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

24. 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

25. 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?

26. Recap correct variance measure • 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 stdrds

27. 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.

28. Homework Assignment: Unit 6 1. Read pages 287-289 in the Bateman & Snell text 2. Listen to the audio clip on page 2 of your Assignment Reading. 3. Here is the scenario: “Lei 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. Lei 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 Dalman 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.” 4. After reading the scenario above and the textbook section on Bureaucratic Control Systems on pages 287–289, respond to the following question: How can Lei apply the four step control process outlined in the text to address this problem? 5. Draft your response in a paper of at least 100 words or more addressing the above question.

29. 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, Lei 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 Dalman 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. 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 lease 3 different days.

30. Special Notes: Unit 6 Quiz! In this unit, you will have a special 20 question quiz covering material from present and past units in your Bateman & Snell Text: Chapters 1, 4, 6, 9, and 13. Tip: By looking at each Unit’s reading, you can narrow the actual page range from which these questions come. For example, Unit 6 has assigned Chapter 13 reading in pp. 286-307. This will be multiple choice and you will have 2 hours to complete this. This quiz is more comprehensive than you have previously encountered in this class. Therefore, I suggest that you use your book to your advantage. This includes a good review of the material. Note: When you enter the quiz area be sure to complete the quiz and submit it or it will not let you re-enter! The only way you can re-enter in such situations is to contact me and I will have to clear out all of your answers and reset the quiz before you are allowed to re-enter. Please Note: This quiz is designed not to show you the questions you missed! Therefore, if you desire to know what questions you missed, contact me after Unit 6 closes and I will provide you with these.

31. Questions concerning Unit 6 Assignments?

32. Thank You for Joining Me This Evening! Good Night All!