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outdoor experiences. But someone has to make sure the orders are processed correctly, and that the
customer is pleased with the gear they purchased from RE. The founders and managers of RE are forced
to walk a fine line here between encouraging their employees to be active members of the extreme sport,
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Develop Your Career Potential
LEARNING FROM FAILURE
Purpose
To give students a model to help them take a systematic approach to learning from mistakes and failures.
Setting It Up
There are several ways to handle this assignment. One way is to assign it as a journal exercise, where
students write privately about their failures and what they learned from them. Another is to treat it as a
Questions
1. Identify and describe a point in your life when you failed. Don’t write about simple or silly mistakes.
The difference between a failure and a mistake is how badly you felt afterwards. Years afterwards, a
real failure still makes you cringe when you think about it. What was the situation? What were your
goals? And how did it turn out?
On the board, write “Situation,” “Goals,” and “How it turned out.” If you’re comfortable, begin the
2. Describe your initial reaction to the failure. Were you shocked, surprised, angry, or depressed?
Initially, who or what did you blame for the failure? Explain.
Since many students will describe their reactions to failure as they describe the failure itself in
question 1, focus on the issue of blame in question 2. Be sure to emphasize to students that you’re
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Figure 1: Attributions for Success and Failure
Stable
Ability
Task Difficulty
3. One purpose of control is to identify and correct performance deviations. With that in mind, describe
three mistakes that you made that contributed to your failure. Now that you’ve had time to think
about it, what would you have done differently to prevent these mistakes? Finally, summarize what
you learned from your mistakes that will increase your chances of success the next time around.
Again, you might want to begin discussion of this question by sharing the mistakes you made with the
class, and then ask students to share their mistakes. Then pair each mistake with a discussion of what
Reel to Real – Biz Flix
Because they are so short, the Biz Flix videos are best used to supplement your lesson plans. They are
designed to illustrate the content rather than convey all of the chapter concepts.
Video: Friday Night Lights
Segment Summary:
In the small town of Odessa, Texas, everyone lives for Friday nights when the high school football team,
the Permian Panthers, takes the field. The town is proud of their Panthers, led by quarterback Mike
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Discussion Questions from Text:
1. The control process begins when managers set goals and create standards. In this scene, what does
Coach Gaines state that he expects from the members of his team?
Coach Gaines states that he expects perfection from the members of his team. However, his definition
2. Based on the topics discussed in this chapter, what similarities could you draw between what a coach
and the manager of a company must do to ensure success for their team?
The basic control process begins with the establishment of clear standards of performance. It involves
3. Which method of control do you think most football coaches exert over their teams: bureaucratic,
objective, normative, or concertive? Why?
Student answers will vary and may depend on their own experiences. Bureaucratic control uses
hierarchical authority to influence behavior by rewarding or punishing for compliance or
Additional Discussion Questions:
1. In your opinion, which type of control should Coach Gaines apply during the second half of the
football game: feedback, concurrent, or feedforward?
Feedback control gathers information about performance deficiencies after they occur. For example,
Coach could review the final statistics of the game after it is over. Concurrent control gathers
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2. Explain how control may not be possible or worthwhile in this particular situation?
Reel to Real – Management Workplace
Management Workplace videos can support several in-class uses. In most cases you can build an entire
50-minute class around them. Alternatively, they can provide a springboard into a group lesson plan. The
Management Workplace video for Chapter 16 would be a nice companion to your introduction to the
course on the first day teaching this chapter.
Video: Barcelona Restaurant Group
Managing Quality and Performance
Summary:
According to Andy Pforzheimer, food is only 50 percent of the experience at his restaurants. The rest is
comprised of intangibles like ambience and conversation with the staff. To ensure consistent quality
Discussion Questions from Text:
1. How do managers at Barcelona control the company’s financial performance?
In the video, Barcelona uses multiple methods of controlling financial performance. First,
managers hold weekly meetings during which chefs and general managers review financials. The
exchanges get heated at times as everyone reviews P&L numbers, and owner Andy Pforzheimer
2. What is the “balanced scorecard” approach to measuring corporate performance, and in what
ways does Barcelona utilize this approach?
Traditionally, most businesses have measured and controlled their financial performance by
analyzing sales, revenue, and profit. The balanced scorecard approach expands the bases around
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3. Describe the feedback control model and describe an instance where Barcelona followed this
process to improve its performance.
Feedback control is a mechanism for gathering information about performance deficiencies after
Workplace Video Quiz
Video Segment 1
Video segment title
Managing Quality and Performance
Start time (in sec)
0:00
Stop time (in sec)
1:18
Quiz Question 1
Managing quality and performance at Barcelona Restaurant falls under the
following management category:
Option a
Planning
Option b
Organizing
Option c
Leading
Option d
Controlling
Correct option
d: Controlling
Feedback for option a
Feedback for option b
Incorrect. Control is a regulatory process of establishing standards to
achieve organizational goals, comparing actual performance to the
standards, and taking corrective action when necessary to restore
Feedback for option c
Incorrect. Control is a regulatory process of establishing standards to
achieve organizational goals, comparing actual performance to the
standards, and taking corrective action when necessary to restore
performance to those standards.
Feedback for option d
Correct. Control is a regulatory process of establishing standards to
achieve organizational goals, comparing actual performance to the
standards, and taking corrective action when necessary to restore
performance to those standards.
assessment is part of:
Option a
Setting standards
Option b
Comparison to standards
Option c
Taking corrective action
Option d
Budgeting
Correct option
b: Comparison to standards
Quiz Question 3
Which of the following would not be relevant for measuring and
improving performance at an upscale restaurant like Barcelona?
Option a
Budgetary control
Option b
The control process
Option c
Total Quality Management (TQM)
Option d
Automation
Correct option
d: Automation
Video Segment 2
Video segment title
Managing Quality and Performance
Start time (in sec)
1:22
Stop time (in sec)
2:46
Quiz Question 1
According to Barcelona Owner Andy Pforzheimer, the difference between
successful restaurants and failed restaurants is:
Option a
Location
Option b
Staffing
Option c
Quality control
Option d
Cuisine
Correct option
c: Quality control
Feedback for option c
Correct. As Pforzheimer describes, the quality of a restaurant is what leads
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to success.
Feedback for option d
Incorrect. As Pforzheimer describes, the quality of a restaurant is what
leads to success.
Quiz Question 2
Which of the following tells Barcelona owner Andy Pforzheimer if his
restaurants are operating at a profit or loss?
Option a
Marketing research
Option b
Performance appraisals
Option c
Six Sigma
income, expenses, and net profits over a period of time.
Quiz Question 3
During the weekly managers meeting, Chief Operating Officer Scott
Lawton discusses the prior week’s sagging sales, poor customer feedback
from secret shoppers, and staffing shortages. Such a review is an example
of:
Option a
Feedforward control
Option b
Concurrent control
Option c
Feedback control
Correct option
c: Feedback (post-performance) control
Feedback for option b
Incorrect. Feedback control is a mechanism for gathering information
Feedback for option c
Correct. Feedback control is a mechanism for gathering information about
Feedback for option d
Incorrect. Feedback control is a mechanism for gathering information
about performance deficiencies after they occur.
Video Segment 3
Video segment title
Managing Quality and Performance
Start time (in sec)
2:47
Stop time (in sec)
5:00
Option a
External financial audit
Option d
Income statements
Correct option
d: Income statements
Feedback for option b
Feedback for option c
Feedback for option d
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Option b
The balanced scorecard
Option c
Six Sigma
Option d
None of these
Correct option
b: The balanced scorecard
Feedback for option a
Incorrect. The balanced scorecard measures a company’s performance on
four perspectives – the customer perspective, the internal perspective, the
Quiz Question 2
During the weekly meeting, managers analyze Barcelona’s financial
performance by:
Option a
Reviewing secret shopper comment cards
Option b
Examining average food costs and menu prices
Option c
Watching video surveillance cameras
Option d
None of these
Correct option
b: Examining average food costs and menu prices
Feedback for option a
Feedback for option c
Quiz Question 3
At the end of the meeting, Barcelona owner Andy Pforzheimer offers
managers worksheets to help them remedy the problem of mismanaged
food costs and menu prices at the restaurant. This is an example of:
Option a
Adopting international standards
Option b
Using a balance sheet
Option c
Measuring actual performance
Option d
Taking corrective action
Correct option
d: Taking corrective action
Feedback for option a
Feedback for option c
Incorrect. Taking corrective action involves identifying performance
Feedback for option b
Feedback for option d
four perspectives – the customer perspective, the internal perspective, the
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Video Segment 4
Video segment title
Managing Quality and Performance
time (in sec)
5:00
Stop time (in sec)
7:01
Quiz Question 1
Offering financial bonuses to restaurant managers to incentivize their
compliance with set performance goals is typical of the following control
approach:
Option a
Bureaucratic control
Option b
Decentralized control
Option c
Self management
Option d
Open book management
Correct option
a: Bureaucratic control
Feedback for option a
Correct. Bureaucratic control is top-down control in which managers try to
influence employee behavior by rewarding or punishing employees.
Feedback for option b
Incorrect. Bureaucratic control is top-down control in which managers try
to influence employee behavior by rewarding or punishing employees.
Feedback for option c
Incorrect. Bureaucratic control is top-down control in which managers try
to influence employee behavior by rewarding or punishing employees.
Feedback for option d
Incorrect. Bureaucratic control is top-down control in which managers try
to influence employee behavior by rewarding or punishing employees.
Option a
General managers are given financial bonuses
Option b
Chefs are not given financial bonuses
Option c
Chefs and general managers from different Barcelona Restaurant locations
compare costs and practices and compete against each other
Option d
The owner of Barcelona says he has high standards of excellence
Correct option
c: Chefs and general managers from different Barcelona Restaurant
locations compare costs and practices and compete against each other
Feedback for option a
Incorrect. Benchmarking is the process of determining how well other
companies perform business functions or tasks.
Feedback for option b
Incorrect. Benchmarking is the process of determining how well other
companies perform business functions or tasks.
Feedback for option c
Correct. Benchmarking is the process of determining how well other
companies perform business functions or tasks.
Feedback for option d
Incorrect. Benchmarking is the process of determining how well other
companies perform business functions or tasks.
Quiz Question 3
Option a
Customer defections
Option b
Financial rations
Option c
Backward control
Option d
Corrective action
deviations, analyzing those deviations, and then developing and
implementing a program to correct them.
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Correct option
a: customer defections
Feedback for option a
Correct. Customer defections occur when customers stop patronizing a
business.
Review Questions
1. Describe the basic control process.
The steps to the basic control process are:
• Establishing clear standards, or the basis of comparison for measuring the extent to which
• Taking corrective action if actual performance does not meet desired performance.
2. How can a manager determine if more control is necessary, or even possible?
Control is achieved when behavior and work procedures conform to standards and goals are
3. What are a manager’s options if more control isn’t possible?
If control is not possible, managers can implement what is called quasi-control. To achieve quasi-
control, managers must either restructure or reduce their company’s dependence on the critical
4. Identify and describe the various methods that managers can use to maintain control.
The text outlines five basic control methods. They are bureaucratic, objective, normative, concertive,
Feedback for option b
Incorrect. Customer defections occur when customers stop patronizing a
business.
Feedback for option d
Incorrect. Customer defections occur when customers stop patronizing a
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5. Explain how concertive control evolves in an organization.
Groups evolve through two phases as they develop concertive control. In phase one, group members
learn to work with each other, supervise each other’s work, and develop the values and beliefs that
6. Describe the elements of the balanced scorecard.
The balanced scorecard offers four different perspectives on company performance. How do
7. Explain why economic value added (EVA) includes more than just profits.
Traditionally, financial control has been achieved through cash flow analysis, balance sheets, income
8. What can companies do to control the customer perspective?
The customer perspective seeks an answer to the question, “How do our customers see us?”
Typically, companies try to find the answer to that question through customer-satisfaction surveys.
surveys, customer defections and retention do have a great effect on profits.
9. What is quality, and how does it differ from value?
The internal perspective asks the question “At what must we excel?”? No matter what area a
10. Describe the strategies managers can use for waste prevention and reduction.
Waste prevention and reduction are at the top of the waste-minimization pyramid. Companies use
three strategies to prevent and reduce waste. First, they practice good housekeeping. That is,
Additional Activities and Assignments
Out-of-Class Project: “Control Case Study.” Divide the class into small groups. Each group should
In–Class Activity: “Controlling Objectives.” Divide the class into small groups (3-4 students). Give
each group a list of objectives developed by real-world companies. (Objectives may be found on Web
sites or annual reports, for example). Have each group provide ideas of how they would measure the
achievement of these objectives.
browbeating that it may have conducted against taxpayers. How does this Web site try to be “friendly to
the public?” How does the IRS use “control” for the country?
What products does the company sell? Provide a summary of each service or product and explain how a
supermarket would potentially use these.
model of a control system. What kinds of control processes were evident in this company?
Control Case Study. Use the Internet to search for a company that has a good control system. What are
the features of its control system? Is it based on accounting, product quality, production, or another
element of the business? How does it maintain its control system?