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● There are differences between products and services including:
o Manufacturing industries provide tangible products; service industries provide
intangible products.
● One clear prerequisite for providing excellent service is effective training.
● Judging the quality of services is different because it comes down to meeting the
customer’s satisfaction, which may be a matter of perception.
Interactive Classroom Material:
EXAMPLE: Service Excellence
This Example examines two organizations considered leaders in customer experience and
satisfaction: Nordstrom and Trader Joe’s. Nordstrom is dedicated not only to in store customer
satisfaction, but also to online customer satisfaction, believing they must excel at both. Trader
Joe’s intensely focuses on customers’ needs and rapidly satisfying them.
Click for follow-up activity.
SELF-ASSESSMENT 16.3
Assessing Your Satisfaction with Your College or University Experience
This 15-question Self-Assessment measures student satisfaction with the college or university
experience. Questions on interactions with professors, feedback on work, and campus facilities
are presented.
Click for follow-up activity.
TQM Tools, Techniques, and Standards
● Several tools and techniques are available for improving quality.
● Tools described in this section include outsourcing, reduced cycle time, statistical process
control, Six Sigma, and quality standards ISO 9000 and ISO 14000.
● Outsourcing
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o Outsourcing short-term and project work to freelance or contract workers in the
so-called gig economy also saves companies many employee-related expenses.
● Reduced Cycle Time
o Reduced cycle time is the reduction in steps in a work process.
● Statistical Process Control
● Six Sigma and Lean Six Sigma
o Six Sigma is a rigorous statistical analysis process that reduces defects in
manufacturing and service-related processes.
o A company using Six Sigma attempts to improve quality and reduce waste to the
point where errors nearly vanish.
● ISO 9000 and ISO 14000
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o The ISO 9000 series consists of quality-control procedures that companies must
install—from purchasing to manufacturing to inventory to shipping—which can
be audited by independent quality-control experts, or “registrars.”
o The goal is to reduce flaws in manufacturing and improve productivity by
adopting eight “big picture” Quality Management Principles:
▪ Customer focus
▪ Leadership
o Companies must document their ISO 9000 procedures and train their employees
to use them.
o ISO 14000 series identifies standards for environmental performance and dictates
standards for documenting a company’s management of pollution, efficient use of
raw materials, and reduction of the firm’s impact on the environment.
Group Exercise #2: Exploring Total Quality Management—TQM
There is a group exercise available at the end of this manual that provides students with the
opportunity to discover how companies are using TQM principles.
Exercise Objective:
To discover how companies are using TQM principles.
Click for follow-up activity.
Connect® Exercise
CLICK AND DRAG: TQM Tools, Techniques, and Standards
Summary of Activity:
Takeaways from TQM Research
Kinicki/Williams, Management, 9e: Chapter 16 Control Systems and Quality Management: Techniques for
Enhancing Organizational Effectiveness
● Although companies do not always use the tools, techniques, and processes as suggested
by experts, the far majority of TQM adopters follow its general principles, which in turn
fosters improved operational performance.
● There are four key inhibitors to successfully implementing TQM:
● Managers need to overcome these roadblocks for TQM to deliver its intended benefits.
16.6 Managing Control Effectively
POWERPOINT SLIDES:
#34 The Keys to Successful Control System
#35 Barriers to Control Success
Section 16.6 discusses four keys to successful control and five barriers to successful control.
One way that you could begin your coverage of these topics is to have the students watch the
Topics and Tips for Discussion:
1. Describe the keys to successful control systems.
Successful control systems share several characteristics. First, they are strategic and
results oriented, meaning they are concentrated on significant activities that will make a
16–34
2. Describe barriers to control success that you have observed at your company (or a
previous one).
One barrier to successful control success that students may have observed is too much
control. If a company tries to strictly control all of its employees’ behaviors, they might
3. Describe a time that you felt micromanaged at work. What attitudes and behaviors did
you display as a result of being micromanaged?
A person who is being micromanaged at work has a manager who is unable to delegate
Section 16.6 Key Concepts:
Keys to Successful Control Systems
● Strategic and Results-Oriented
● Timely, Accurate, and Objective
● Realistic, Positive, Understandable, and Encourage Self-Control
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McGraw-Hill Education.
o Control systems should incorporate realistic expectations.
o Control systems should emphasize development and improvement.
o Control systems should fit the people involved, be kept as simple as possible, and
present data in understandable terms.
o Control systems should encourage good communication and mutual participation.
● Flexible
o Control systems must leave room for individual judgment.
o This allows them to be modified when necessary to meet new requirements.
Barriers to Control Success
● Too Much Control
● Too Little Employee Participation
● Overemphasis on Means Instead of Ends
● Overemphasis on Paperwork
● Overemphasis on One Instead of Multiple Approaches.
Kinicki/Williams, Management, 9e: Chapter 16 Control Systems and Quality Management: Techniques for
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Connect® Exercise
CLICK AND DRAG: Barriers to Control
Summary of Activity:
In this Click and Drag exercise, students will match the different barriers to control with their
appropriate examples.
16.7 Managing for Productivity
POWERPOINT SLIDES:
#36 Managing for Productivity
#37 Managing for Productivity and Results
#38 The Role of Information Technology
#39 Processes to Increase Productivity
Section 16.7 discusses how managers need to manage for productivity and results. Productivity
is the formula of outputs divided by inputs for a specified period of time. Processes that can be
used to increase productivity include benchmarking and following best practices.
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McGraw-Hill Education.
Benchmarking is when a company identifies best practices or standards used by other
relevant firms and then compares its performance to other companies. By seeing how it
performs compared its competitors and best-in-class companies, a firm will identify areas
where will be able to improve its productivity. When benchmarking, firms should identify
the performance metrics it wants to use as benchmarks and determine the companies that
should serve as its basis for comparison. Gathering benchmarking data will allow the
firm to identify areas for improvement and what best practices it should be following.
3. How can you improve your own personal productivity?
Section 16.7 Key Concepts:
Managing for Productivity
● Managers in the 21st century will operate in a complex environment and will need to deal
with seven challenges: managing for competitive advantage, diversity, globalization,
information technology, ethical standards, sustainability, and their own happiness and life
goals.
● Managers should draw on the practical and theoretical knowledge described in this book
to make decisions about the four management functions.
● A manager’s purpose is to get the people reporting to them to achieve productivity and
realize results.
Productivity
● Productivity is defined by the formula of outputs divided by inputs for a specified period
of time.
● Outputs are all the goods and services produced.
● Inputs are labor, capital, materials, and energy.
● Productivity = Outputs OR Goods + Services
Inputs Labor + Capital + Materials + Energy
● A manager can increase overall productivity by making substitutions or increasing the
efficiency of any one element: labor, capital, materials, or energy.
The Importance of Increasing Productivity
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● Productivity determines whether the company makes a profit.
● Increased productivity increases our nation’s standard of living.
● Productivity has even been zero or negative in some countries.
● Several explanations for the lack of growth in productivity have been proposed:
● Many companies have implemented enterprise resource planning (ERP), software
systems, and information systems for integrating virtually all aspects of a business.
● Benchmarking is a way to measure something against a standard, the benchmark.
● Best practices are a set of guidelines, ethics or ideas that represent the most efficient or
prudent course of action.
Managing Individual Productivity
● Individual employees, managers, and organizations all share responsibility for increasing
individual productivity.
● Individuals contribute by proactively bringing their skills, energy, talents, and motivation
to work on a daily basis, and by engaging in self-development and organizational
citizenship.
16.8 Career Corner: Managing Your Career Readiness
POWERPOINT SLIDES:
#40 Model of Career Readiness
Kinicki/Williams, Management, 9e: Chapter 16 Control Systems and Quality Management: Techniques for
Enhancing Organizational Effectiveness
#41 Managing Your Career Readiness
Section 16.8 describes tips for managing your career. Career management is the proactive
management of your career and the seeking of opportunities for professional development. Just
as with the control process, the process for managing career readiness begins with identifying
what you want to accomplish. What are the KSAOs of career readiness that you want to
develop? You can experiment with small steps aimed at developing your KSAOs and then
Topics and Tips for Discussion:
1. Why is career management an important skill for managers?
2. What are the KSAOs of career readiness that you want to develop?
3. How could you best deal with a layoff that was an unexpected event in your career
management journey?
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Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
don’t view it as a sign that you are a failure. You may want to take a few days to process
your emotions before jumping right into the job search process. Take the time to rethink
your career plan before immediately taking the first available job option. When you are
looking for new positions, don’t trash talk your former employer when interviewing or
networking. Be honest about the fact that you were laid off but focus on what you learned
and how you grew as a result of your time there.
Section 16.8 Key Concepts:
Career Management
• Represents the proactive management of your career and the seeking of opportunities for
professional development.
Process for Managing Career Readiness
1. Identify the KSAOs you want to develop.
3. Experiment with implementing a few small steps aimed at developing your KSAOs.
4. Evaluate the results of your experimental small steps.
All of these steps require a willingness on your part to manage your career readiness
Tips for Managing Your Career
2. Stay Informed and Network
4. Roll with Change and Disruption
5. Small Things Matter during Interviews
Connect® Exercise
CLICK AND DRAG: Tips for Managing Your Career
Summary of Activity:
In this Click and Drag exercise, students will match different tips for managing their careers with
their appropriate examples.
Career Corner Group Exercise: Embracing Proactive Learning
Learning Objective:
To increase students’ proactive behavior.
CAREER
READINESS
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Click to view activity.
Epilogue: The Keys to Your Managerial Success
What are nine keys to personal managerial success?
Keys to Your Managerial Success
● Adopt a proactive approach to life-long learning.
● Find your passion and follow it.
● Encourage self-discovery and be realistic.
● Every situation is different, so be flexible.
● Focus on career readiness.
● Learn how to develop leadership skills.
● Treat people as if they matter, because they do.
● Draw employees and peers into your management process.
o The old top-down, command-and-control model of organization is moving toward
a flattened, networked kind of structure.
o Lines of authority aren’t always clear or don’t exist, so one’s persuasive powers
become key.
● Be flexible, keep your cool, and take yourself lightly.
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McGraw-Hill Education.
● Go with the flow and stay positive.
o During the ebbs and flows of the journey of life, don’t focus too heavily on
negative events and thoughts.
o Negative thoughts rob you of positive energy and your ability to perform at your
best.
o A positive approach toward life is more likely to help you flourish.
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MANAGEMENT IN ACTION: IS TESLA OUT OF CONTROL?
IS TESLA OUT OF CONTROL
Problem-Solving Perspective
1. What is the underlying problem in this case from the perspective of CEO Elon Musk?
2. What are the causes of the problem?
3. What is your evaluation of Musk’s approach for solving the problem?
Application of Chapter Content
1. Is Musk implementing feedforward, concurrent, or feedback control to solve production
issues? Explain.
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McGraw-Hill Education.
Musk is now implementing concurrent control, watching the assembly line as it produces
cars to identify where the performance issues are occurring and trying to fix them as
quickly as possible. He, however, is doing this after issues have already occurred, which
means that his current approach is built on a foundation of feedback control. While Musk
is currently stuck correcting the current issues, the goal is to get to a point of
feedforward, where Musk can preempt future issues.
2. Which areas of organizational control are part of Tesla’s plan to remedy issues with the
Model 3? Provide examples.
3. Create a balanced scorecard to give Musk a view of Tesla. Utilize all four perspectives.
From the financial perspective, Tesla looks incompetent to shareholders. Musk has
repeatedly made production promises that he has not kept, and the company is burning
through cash. Tesla’s goal needs to be getting production where it needs to be in order to
meet current orders and future demand.
Kinicki/Williams, Management, 9e: Chapter 16 Control Systems and Quality Management: Techniques for
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McGraw-Hill Education.
in turn, gas-free. The value of being a competitive, electric car company means that they
have the potential to shift the paradigm of the motor vehicle industry.
4. What type of an audit is Musk utilizing? Explain.
5. Is Musk exhibiting the two core principles of total quality management? Why or why
not?
6. Which barriers to control success are exhibited by Tesla? Provide examples.
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LEGAL/ETHICAL CHALLENGE
IS GPS TRACKING OF EMPLOYEE ACTIONS AN EFFECTIVE FORM OF MANAGEMENT
CONTROL?
More companies are using GPS apps to track the whereabouts of their employees. Companies
claim such devices increase productivity and help locate employees in times of a crisis, such as
the 2016 terrorist attack in Paris.
Solving the Challenge
What would you do if you were the CEO of Intermex and in charge of deciding what do about
the Arias case and the use of tracking employees?
1. I appreciate the value of people flourishing at work, but this is a sales context, and the
company needs to be responsive to customer issues 24/7. Thus, I would fight the lawsuit
and keep using the tracking device. Tracking employees during off hours is not an
invasion of privacy.
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2. People won’t flourish if the company doesn’t change its ways. I would settle the lawsuit
but continue to monitor employees only during work hours. It’s an invasion of privacy to
track people when they are not at work.
3. Settle the lawsuit and continue to track employees 24/7. I would also make all current and
new employees sign a waiver indicating that it is a job requirement to use the tracking
device 24/7. People can leave if they don’t want to abide by the policy.
4. Invent other options.
Kinicki/Williams, Management, 9e: Chapter 16 Control Systems and Quality Management: Techniques for
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TEXTBOOK EXAMPLES
EXAMPLE: Steps in the Control Process: What’s Expected of UPS Drivers?
This Example describes Integrad, a high-tech training center designed and used by UPS to train
its drivers. The Example then profiles how, once drivers have trained at Integrad, UPS
implements the control process via establishing standards, measuring performance, comparing
performance to standards, and taking corrective action.
YOUR CALL
The UPS controls were devised by industrial engineers based on experience. Do you think the
same kinds of controls could be established for, say, filling out tax forms for H&R Block?
The same kinds of controls, with slight variation, can be established for filling out tax forms for
H&R Block. There should be certain standards when asking questions of clients and checking
“audit–triggers” in tax returns. Moreover, asking about certain deductions can be standardized.
Managers can then look at reports and see if these audit triggers and deductions were
implemented on the tax returns, and if not, why? If these performance standards do not match
actual performance, a manager can observe the H&R employee when he/she is working with
clients and provide advice after the client meeting.
ADDITIONAL ACTIVITIES
To extend the learning from this Example, you may have your students watch these two videos.
Each is only about 1 ½ minutes long. The first, “ÚPS Will Start Utilizing Virtual Reality to
Teach driver Safety,” demonstrates the latest virtual reality training at Integrad. It emphasizes the
high-tech nature of driver training. The second video, “UPS Drivers Tackle Holiday Week,”
shows the mush lower tech part of the job—loading, delivering, and picking up packages. After
students have watched the videos, consider breaking them into groups to tackle the following
questions, then leading a class discussion comparing their group responses.
The Example discusses some of the controls used after training at Integrad. After watching the
video on high-tech training, what kinds of control do you think UPS uses during training at
Integrad?
These two parts of the UPS job demonstrate very different uses of technology. Should UPS
consider more high-tech elements in the loading, pick-up and delivery of packages? If so, what
types of tech can you envision them using? What kind of controls would need to be implemented
with the tech you describe?
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