Welcome to AB140

Control

In Unit 5……

• We learned…..-How to Designate conclusions to management issues

-The difference between managing and leading

-Aspects of employee motivation

Unit 5 Review

• What are the differences between leading and managing?

• Can good managers be good leaders?

• Can you manage but not lead?

• Can you lead but not manage?

Questions?

Unit 6 Objectives

• Distinguish between the four functions of management

• Explain the significance of control systems in business

• Summarize the design of a formal control system

Control Systems

• Process that directs activities toward the achievement of organizational goals

• Ensuring plans are being carried out

Why do companies need control systems?

Spinning out of control?

• Lax top management• Absence of policies• Lack of agreed-upon standards• “Shoot the messenger” management• Lack of periodic reviews• Bad information systems• Lack of ethics in the culture

Different Types of Control

• Bureaucratic Control

• Market Control

• Clan Control

The Control Process

Management: Bateman/Snell

Step 1 of Control Systems

1. SETTING PERFORMANCE STANDARDS

• Goals• Profitability• Customer Satisfaction

• Level of expected performance

Step 2 of Control Systems

2. MEASURING PERFORMANCE

• Collect Data

Step 3 of Control Systems

3. COMPARE PERFORMANCE

• Standards • Determine deviations

Step 4 of Control Systems

4. TAKE ACTION

• Correct problems• Reinforce success

Bureaucratic Control – 3 Types

• Feedforward control

• Concurrent control

• Feedback control

Are there downsides to this type of system?

Are there downsides to this type of system?

• Rigid bureaucratic behavior

• Tactical behavior

• Resistance

How can we develop effective control systems?

Effective Control Systems

• Systems based on valid performance standards• Communicate adequate information to employees• Acceptable to employees• Use multiple approaches

Audits

• Internal Audit• External Audit

What’s Due This Week

Reading…

• This week's required reading is Chapter 13 in the Bateman and Snell text pp. 286–307

Review

• This week your review will be a 20 question quiz regarding POLC

• You can only take the quiz ONE time!!

• It must be completed/submitted within 2 hours!

• If you do not complete or submit the quiz within 2 hours you cannot make up the quiz!

Discussion Board• Jenny has some control issues within Sandwich Blitz and the

managers• This week we’ll discuss the systems Jenny needs to develop to

deal with the issues• Don’t forget the following:

-Post a minimum of three posts per discussion question. One initial response and two replies to classmates

-Post on a minimum of three different days - Initial post must be completed by Saturday-Initial Post must be 100 words -Be sure to check spelling and grammar-Ensure your responses add value and further the conversation

-You cannot post to the boards late

Assignment• This week you’ll help Jenny apply the 4 step control process to a control issue with

the managers of Sandwich Blitz• Don’t forget to………

- Click the PDF for detailed instructions on the assignment page

- The following requirements apply:-Minimum of 100 words -Proper grammar, spelling, punctuation, syntax, etc. -Don’t forget to properly reference any material used- I expect a professional paper

- Submit your Assignment in the proper Dropbox for grading, as an attachment

- Ensure you submit the assignment by Tuesday night at 11:59pm EST

Good Night!

• Don’t hesitate to contact me with questions

• See you next week-Same time

-Same Station!