Management Chapter 6 Encourage Students Take The Selfassessment Internalexternal Control And Other Activities The Skill

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Schermerhorn & Bacharach Exploring Management 6th edition Instructor’s Manual

CHAPTER 6

Controls and Control Systems

What gets measured happens

Chapter 6 Overview

Each Chapter contains several inset features designed to assist the student reader in applying the

concepts to relevant examples. Management Live introduces the infamous marshmallow test and

rewards linked to instant or delayed gratification. Choices provides students with an opportunity

to evaluate various sides of an issue in order to make an informed decision. Hot Topic explores

global sensors and social media. Facts to Consider introduces how everyday distractions can be

goal killers, and include research or trends that may be used for in-class discussion or online for

distance learning. Insight profiles the importance of resiliency. Quick Case presents a business

related scenario for class analysis and discussion and whether a flexible work policy case is

abused.

Each Chapter contains several inset features designed to assist the student reader in applying the

concepts to relevant examples. Management Live illustrates how experiences and activities relate

to work performance. Choices poses a question or dilemma.. Hot Topic explores samples of

debated topics in business and strategy. Facts to Consider introduces research or trends that may

Schermerhorn & Bacharach Exploring Management 6th edition Instructor’s Manual

Finally, system-wide organizational controls and project management are reviewed. They

include quality control, purchasing and inventory control, breakeven analysis (financial control),

financial ratios, and the balanced scorecard. Making quality an everyday performance objective

in any industry, whether it is manufacturing, production, or service-related, is crucial. Maybe you

Chapter 6 Takeaway Questions

• Takeaway 6.1 How and Why do Managers Use the Control Process?

• Takeaway 6.2 What Types of Controls are Used By Managers?

• Takeaway 6.3 What Are Some Useful Control Tools and Techniques?

Chapter 6 Lecture Outline

• Takeaway 6.1 How and Why do Managers Use the Control Process?

o Controlling is one of the four functions of management

• Takeaway 6.2 What Types of Controls are Used By Managers?

o Managers use feedforward, concurrent and feedback controls

• Takeaway 6.3 What Are Some Useful Control Tools and Techniques?

o Quality control is a foundation of modern management

o Gantt charts and CPM/PERT improve project management and control

Schermerhorn & Bacharach Exploring Management 6th edition Instructor’s Manual

Chapter 6 Supporting Materials

Figures

• Figure 6.1: Why is Controlling so Important in the Management Process?

• Figure 6.2: What Are the Four Steps in the Control Process?

• Figure 6.3: What Are the Differences Between Feedforward, Concurrent, and Feedback

Controls?

• Figure 6.4: How Does Managing by Objectives Help to Integrate Planning and

Controlling?

• Figure 6.5: How Do Managers Use Breakeven Analysis to Make Informed What-If

Decisions?

What’s Inside

• Management Live: Mastering Self Control a Step Forward in Life Success

• Choices: Should Parents Pay for Children’s Grades?

Applications

• TestPrep 6 Multiple-Choice Questions

• Skill Building Portfolio

o Self-Assessment 6: Internal/External Control

Chapter Outline

Takeaway 6.1 How and Why do Managers Use the Control Process?

• Controlling is one of the four functions of management

✓ Controlling is the process of measuring performance and taking action to ensure

desired results

✓ How does control fit in with the other management functions?

➢ Planning sets the directions

Schermerhorn & Bacharach Exploring Management 6th edition Instructor’s Manual

• Step 1 — Control begins with objectives and standards

✓ Figure 6.1 lists why controlling is so important in the management process

➢ Controlling measures performance

➢ How well are you doing?

DISCUSSION

Ask the students to provide examples of when they have exercised self-control. Seek to

determine the extent to which the students’ self-management was preceded and facilitated by

some form of objective setting.

✓ Figure 6.2 The Steps in the Control Process

➢ Set performance objectives and standards

• Step 2 — Control measures actual performance

✓ Accurate and timely measurement is essential to spot differences between what is

really taking place and what was originally planned.

DISCUSSION

To help students understand the role of control as measurement, ask them to identify how they

use control in their personal lives by setting objectives and measuring performance. Examples

may include using a scale to calculate weight loss, keeping track of their grades to keep a certain

grade point, keeping to a personal budget or looking for a car with a minimum gas mileage

rating.

• Step 3 — Control compares results with objectives and standards

✓ Need for action = Desired performance-Actual performance

• Step 4 — Control takes corrective action as needed

Management by exception – the practice of giving attention to situations that show the greatest

need for action

Schermerhorn & Bacharach Exploring Management 6th edition Instructor’s Manual

DISCUSSION TOPIC

Before you formally present the steps in the control process, you may want to solicit student

input by asking them to identify some examples of controls that are used in organizations. You

can simply record these controls on the chalkboard or overhead projector as they are offered.

Encourage students to take the self-assessment on Internal/External Control and other activities

in the Skill Building Portfolio.

6.1 Questions for Discussion with Suggested Answers

1. What performance standards should guide a hospital emergency room or fire department?

2. Can one control performance equally well with input standards and output standards?

3. What are the possible downsides to management by exception?

6.1 Career Situation: What Would You Do?

A work colleague comes to you and confides that she feels “adrift in her career” and “just can’t

get enthused about what she’s doing anymore.” Your take is that this might be a case of self-

management and personal control. How will you explain to her that using the steps in the

management control process might help her in better understanding and correcting her situation?

Student responses will vary. However, the steps in the control process,) setting performance

Schermerhorn & Bacharach Exploring Management 6th edition Instructor’s Manual

Takeaway 6.3 What Are Some Useful Control Tools and Techniques?

• Quality control is a foundation of modern management – the work of W. Edwards

Deming is the foundation of the quality movement so important to modern management.

✓ Total quality management – process of emphasizing quality as an objective and

DISCUSSION

Students may apply the concepts of total quality management, continuous improvement and

control charts to academic performance in a management class. How are academic performance

indicators and student effort similar to quality control in industry?

• Gantt charts and CPM/PERT improve project management and control.

✓ Projects are one-time activities with many component tasks that must be completed

in proper order and according to budget.

• Inventory controls help save costs – and make sure that inventory is adequate for current

demand but not so large that there is expensive surplus inventory.

• Breakeven analysis shows where revenues will equal costs

Schermerhorn & Bacharach Exploring Management 6th edition Instructor’s Manual

• Financial ratios measure key areas of financial performance

✓ Financial ratios – calculations that track financial success of the organization.

➢ Liquidity – ability to meet short term financial obligations (pay bills)

• Balanced scorecard – help top managers exercise strategic control

✓ Financial Performance

6.3 Questions for Discussion with Suggested Answers

1. Can a firm such as Wal-Mart ever go too far in controlling its inventory costs?

2. Is the concept of total quality management out of date?

3. Does the “balanced scorecard” as described in this chapter measure the right things?

6.3 Career Situation: What Would You Do?

You’ve had three years of solid work experience after earning your undergraduate degree. A lot

of your friends are talking about going to graduate school and they’re pushing you to take time

out to earn an MBA degree. There are potential costs and benefits if you go for the MBA. How

can breakeven analysis help you make the decision to: (1) go or not go, (2) go full time or part

time, and (3) even where to go?

Schermerhorn & Bacharach Exploring Management 6th edition Instructor’s Manual

Teaching Notes

In this section, ideas, exercises, and assignments are provided to assist you in integrating the

concepts in Exploring Management for your students, especially the special features of the text.

Management Live: Mastering Self Control is a Step Forward in Life Success

The lesson begins with the marshmallow test. Picture this. Several young, 4-6 year old children

are at a table with two marshmallows in front of them. A researcher tells them they can eat one

How would you do on the marshmallow test? To what extent is self-control a personal

strength… or a weakness? What can you do to make it a real personal asset going forward in a

life?

Choices: Should Parents pay for Children’s grades?

This feature explores the topic of paying for grades. Is paying for grades the correct things to do?

Does it improve parental control over children’s study habits? Those who support paying for

grades say it improves performance and “gets the kids’ attention.” Is performance for pay okay at

such a young age? Opponents are concerned that the motivation comes from financial gain rather

than love of learning. Ask students what their thoughts are when it comes to making money for

good grades. Discuss the subject of extrinsic and intrinsic rewards. Is parenting similar to

managing people in the workplace?

Student answers will vary.

Ethics Check: Boss Wants Staff to Lose a Few Pounds

The CEO, a fitness addict, has decided that it’s her responsibility to help everyone on staff to

adopt a healthier lifestyle. She just sent an email to all with the following statements: “I have just

Schermerhorn & Bacharach Exploring Management 6th edition Instructor’s Manual

Ask Students: Should companies who want to do business in China or else-where go along with

Insight: Resiliency Offers Strength from Within

Managerial control is all about increasing the probability that things will go right for

organizations even as they deal with an increasing number of operational complexities. It’s the

same for us—every day—in our work and personal lives. We need to spot and understand

Quick Case: Flexible Work Hour Policy Starting to be Abused

Your employer started a flexible working hour’s program which allows workers to vary starting

and ending times on a daily basis depending upon their personal circumstances and preferences.

Staff members have started to abuse the policy. Discuss how you should go about resolving the

problem.