Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Case Notes
Chapter 14: Managing Control Systems, Finances, and People
General Electric
1. How does coaching serve as a control system at General Electric?
The new performance management system and the coaching process that is embedded in
2. How is coaching built into the performance management process at General
Electric?
Coaching is part of the touchpoint sessions that use the PD@GE mobile app that
3. How does the performance management process at General Electric address
providing positive feedback and corrective action for workers with performance
issues?
The emphasis of the new performance management and coaching process at General
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
4. How does the performance management system at General Electric apply the
coaching process model?
The four steps in the coaching process model are:
5. Do you agree with General Electric’s decision to eliminate its traditional
performance evaluation system? Why or why not?
6. What do you think of the PD@GE mobile app that General Electric uses as part
of its performance management process? Is it effective? Why or why not
Figures Do Not Lie but Liars Figure: The “Searing” Truth
1. Control systems consist of preliminary controls, concurrent controls, rework
controls, and damage controls. This case deals with what type(s) of control
systems?
The case discusses the financial decline of Sears Holdings and some of its stakeholders’
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
2. Which functional controls system(s) are directly addressed in this case?
The case describes in detail the financial performance of the firm (revenue declines, net
3. Which functional control systems are indirectly addressed in this case?
As noted on Exhibit 14-2, there is a feedback loop between all of the functional areas
4. Which step in the control system process does Sears Holdings appear to be
implementing?
There are four steps in the process: setting objectives and standards, measuring
5. The controls discussed in this case fall into which one of the three control
frequencies?
Financial controls tend to occur periodically (daily, weekly, monthly, quarterly and
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
6. Most of the financial information described in this case can be found using which
financial control tools?
There are several financial control tools: operating budgets (projected/expected revenues
7. Given what you have read in this case, what is your likelihood of investing in
Sears stock and/or bonds?
Students may answer this question in various ways. Some students may opt to invest in
8. What factors in the external environment of Sears seems to have negatively
affected their performance?
Declining store sales and mounting losses have plagued Sears Holdings for the past
9. What does the statement “a simple matter of the company not selling enough of
the right merchandise at the right price in the right way at the right time” imply
from a planning perspective?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
10. Sears has planned to close 150 stores. What challenges does this pose to their
Human Resource Department?
Closing 150 stores will have a major impact on the human resources of the firm. Either
11. Given Sear’s continuing decline, what do you think would be the impact on
employee motivation and job performance?
Motivation is the willingness to achieve organizational objectives or to perform above job
12. CEO Eddie Lampert’s development of a strategic plan to counter Sears’ decline
would be an example of what class of leadership theories?
There are four classes of leadership theory include trait theory (distinctive
characteristics), behavioral theory (styles of leadership), situational theory (situation-
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019