Worms, Part DNote: The last requirement of this progress case study focuses on the Control Function

Worms, Part DNote: The last requirement of this progress case study focuses on the Control Function of management. Please apply what you have learned throughout this course to this case and especially the controls from chapter 6 of your textbook. The best way to demonstrate competence is to actually apply controls/systems, etc. to an actual case situation….here is your chance to do so. Good luck!Worms, Inc. (D)The encounter below takes place in the hallway of the Executive suite at Worms, Inc.’s headquarters immediately after your Learning Team’s presentation to Worms, Inc.’s management team.Doug: “Great job, everyone!”Team member: “Thanks, Mr. Worms; we’re happy you’re pleased. Your management team seemed fairly receptive although some don’t seem completely sold yet. New ideas take time to sink in.”Doug: “True enough. But it’s also possible for people to relapse into old, familiar ways — and we can’t afford that. Not anymore. I’ve been doing a lot of thinking and I have one final project for you.”Team member: “We’d be happy to help in any way we can. What are you thinking about?”Doug: “Let’s start with what started today. I want to hold my managers accountable for following through on the training they received today — and I’m willing to reward those who do because we’ll more than recoup the cost of any incentives in reduced turnover. I realize this sounds like a “soft” — rather subjective — performance standard but there must be ways to quantify that learning and growth — as opposed to filling a seat during a training presentation — have occurred.”Team member: “Almost anything can be quantified; we’ll see what we can come up with.”Doug: “I also need to know how Worms, Inc. is doing vis-à-vis its customers. Are they happy with our products? We’ve always tended to respond to whatever the competition does — which means we’re always one step behind. I suspect that’s why we’ve been losing market share. We must get out of the reactive mode.”Team member: “OK, customer satisfaction. Noted.”Doug: “I need to know if the pricing for our product line is high enough to yield a reasonable profit but not so high that we end up losing sales to our competition. Can you come up with a way to keep on top of this for me?Team member: “I think we can do something there. Since that’s kind of a compound question, do you mind if there is more than a single measure to monitor?”Doug: “No, but make it as few as possible. I want to be able to look at just a few key items and then dig into the detail should any kind of problem be indicated. Finally, inventory is a big deal for us, as you know…especially those genetically engineered worms. Live bait can be kept refrigerated for two to three weeks but if it runs longer than 30 days we know we’re going to have excessive loss due to spoilage. Whew! That sounds like a tall order to me. Am I all over the map?”Team member: “I don’t think so, Mr. Worms. A good control system has to monitor and provide timely feedback on the keys to success in your business. If the performance measures you’ve discussed: indication of improved managerial effectiveness, customer satisfaction, evidence that your pricing strategy is on target along with sales growth, and inventory management, truly reflect the drivers of business success for Worms, Inc., an effective organizational control system that tracks and reports on these metrics is the logical next step.”Doug: “Oh, and one more thing — not to make your life too difficult — I also need a process to support the Code of Ethics your team prepared for us. It can’t be just an edict from management; I want every employee to know I’m serious about this and I want every employee to feel like it is her or his personal responsibility to make Worms, Inc. a place people are proud to be associated with — because it is!” Team member: “We’ll see what we can come up with, Mr. Worms. Give us a couple weeks.”Your Learning Team assignment for “Worms, Inc. (D): Design a control system for Worms, Inc. that will:1. address the four (4) areas of concern Doug outlines above and2. support the Code of Ethics your Learning Team prepared for Worms C. Be sure to indicate how employees will be made aware of your code and how the code will actually be enforcedYour completed paper should be no more than five (5) pages of narrative explaining the rationale for the approach to organizational control you suggest for Worms, Inc. Make sure the control system your team recommends reflects all the “elements of effective control systems” in chapter 6 of our text.One member of your Learning Team should submit your team’s project by 11:55 pm (Central time) by the date listed in the course schedule. Good luck!

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