Sandwich Blitz Inc. : Control Systems Kaplan University Abstract This paper will first explain exactly what a control system is and the purpose it serves. Next, this paper will turn its focus towards an incident of misreporting hours that happened in Dalman and Lei’s growing business, Sandwich Blitz Inc, and how the situation should be handled. The four step control process will be implemented and used accordingly to solve this problem within the company. Sandwich Blitz Inc. : Control Systems Control is one of the four major functions of management and it is a necessity in order to maintain a company.
According to Bateman and Snell, a control system consists of four major steps; setting performance standards, measuring performance, comparing performance against the standards and determining deviations, and taking action to correct problems and reinforce success (Bateman and Snell, 2011). Bureaucratic control refers to the use of rules, regulations and authority to guide performance (Bateman and Snell, 2011), which will be exactly how Lei will effectively and efficiently be able to deal with her current problem. The current situation at Sandwich Blitz Inc. s a discrepancy in the time sheets, which led Lei to discover that a team supervisor had allowed an employee to report hours not yet worked, thus getting paid extra. Lei, who knows this is ethically inappropriate, looked into the employee handbook and discovered that not only is this situation not covered, but standards and expectations are also not addressed clearly. In order to alleviate this problem, Lei must implement the four step control process. The first step in the process is to set performance standards. In order to do this, Lei must effectively adjust the employee handbook.
She must update the handbook to include policies that will serve as the measuring standard for all future occurrences. She does not have to list every single specific infraction that may occur, but she can use broad policies that cover a lot of areas, such as integrity and theft. I believe a good idea would be to hold a meeting for the distribution of the handbooks and briefly cover each topic. Lei should answer any questions that may be posed and have each employee, supervisor and manager sign a statement that they understand and agree to the terms in the handbook.
The next step is to measure performance. After updating and distributing the employee handbook, Lei can then measure performance by evaluating current employees. The employee handbook will have covered what is expected from each individual and can serve as the guideline and standards for evaluating employees. Lei can offer incentives for employees who exceed expectations while offering disciplinary action for employees who do not meet current expectations, which leads right into the third step of the control process; comparing performance against the standards and determining deviations.
After evaluating and comparing the employees’ performance against the standards in the updated handbook, Lei can then determine other situations that may become problematic. For the current situation, there were no standards written in the old handbook about marking hours that were not yet worked, it was simply “frowned upon” by Lei. Therefore, it is impossible to consider how much of a deviation the employee had incurred, because there was set standard. Lei must insure there are set standards to be measured up to in her updated handbook, for this reason.
The fourth and final step of this control process is taking action to correct problems and reinforce success. By this point, Lei should have already corrected the biggest problem; her outdated manual. When determining the action to be taken against the employee, supervisor and manager involved in the situation of marking hours not yet worked and receiving pay, I believe Lei should be somewhat lenient, considering there was no written policy against it. Lei should give them all a warning and perhaps deduct the wages that were taken in advance from a future paycheck as corrective action.
Lei needs to make sure that all employees have a full and thorough understanding of what is expected from them from this point forward. Monitoring and controlling is the step in the management process that is most often overlooked, but clearly it is a crucial step in making sure that your company not only succeeds, but excels. It is necessary to have set standards and policies so the employees know exactly what is expected of them. By implementing this four step control system, I believe Sandwich Blitz Inc. will run more effectively and efficiently. References Bateman, Thomas. Snell, Scott. (2011). Management . : McGraw-Hill.