Dalman and Lei can utilize the Bureaucratic Control Systems four steps; setting performance standards, measuring performance, comparing performance against the standards and determining deviations, and taking action to correct problems and reinforce successes to correct the deficiency in their employee handbook.
Setting performance standards.
Setting performance standards will be the backbone of Dalman and Lei’s control process. Dalman and Lei need to understand that if they do not take the time to create will defined standards then there newly born business will never be able to mature. Employees who do not have standards or “rules to live by” tend to lack the motivation to continually do the right thing and may cut corners on procedures and or bend policy. This can become toxic to an organization. On the contrary, according to Bateman & Snell (2013) “employees tend to be motivated by specific, measurable performance standards that are challenging and aim for improvement over past performance” (p.328). Employees who are given well defined standards will perform better than those who do not have well defined standards. Dalman and Lei owe a well-defined playbook to their team, especially their managers. I recommend Dalman and Lei take the time to research current issues that are not defined currently defined in their handbook with their managers and employees. Including employees in this process will help create buy in at all levels. Additionally I recommend they enlist the help of a human resource and legal expert who may have more experience in creating policy and what should be included in the handbook and what is legal. This entire process should be outlined in a plan of action and milestones.
Measuring performance.
Dalman and Lei can measure and collect data from various sources. Bateman & Snell (2013) state that “Performance data commonly are obtained from three sources: written reports, oral reports, and personal observations” (p.329). Store Managers should be required to submit an end of day report that includes profit, man-hours worked, inventory, waste, and a brief summary of the work day. This would also give managers an opportunity to express concerns or ask questions. This can be an emailed report that would be reviewed by Dalman and Lei each morning after. After submitting the written report it can be followed up by a voice report of the summary of the day’s events and will give managers an opportunity to socialize concerns and ask questions. I would recommend that once a week Dalman and Lei hold an all managers meeting to build networking between the stores, discuss lessons learned, and disseminate information. Lastly personal observations conducted by both store managers and Dalman and Lei can be a great way to measure performance. Having store managers shop each other’s stores and evaluate things like store cleanliness and customer service is a great way to gather performance data. Formal written employee evaluations should be conducted semiannually on a standardized employee evaluation sheet and briefed to each employee. Lastly a computerized time clock should be implemented where employees have to swipe in and out with a Common Access Card (CAC) to properly account for man-hours and prevent falsified reporting. Any additional hours would have to be approved ahead of time by Dalman. The required reports, meetings, standardized employee evaluation sheet, and the employee evaluation metric should be added to the employee handbook.
Comparing performance against the standards and determining deviations.
Dalman and Lei will then need to compare performance against the standards and determine deviations. This should happen as a result of their performance measuring. This information can be compiled into performance reports and disseminated in written reports or oral reports back to managers. The formal employee evaluations will also serve as a way to compare performance and determine deviations.
Taking action to correct problems and reinforce successes.
Dalman, Lei, and manages will need to take corrective action to correct deficiencies and use positive reinforcement to rewards successes. This will help control desired behaviors and deter undesirable behaviors from their employees. Not every rule or policy in the employee hand book has to be negative or punitive in nature. Positive reinforcements like incentives offered should also be clearly outlined in the handbook to motivate employees. Additionally, high caliber employees should be recognized through employee of the month or quarter programs and publically praised for their dedication and loyalty. This can serve as a metric in their evaluations and taken into consideration when promotion opportunities arise. The whole process that Dalman and Lei are conducting to correct their employee handbook is an example of this as well. Lastly in addition to everything listed above formal training should be conducted to ensure employees understand the new policy and procedures that have been implemented in the revised employee handbook.

Reference:
(1) Bateman, T., & Snell, S. (2013). Management (M Starts Here Series) (3rd ed.). New York: McGraw Hill.