3 3 planning and goal setting. 3-1. define productivity. 3-2. describe how plans should link from...

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Planning and Goal Setting

3-1. Define productivity.3-2. Describe how plans should link from the top to the bottom of an organization.3-3. Identify what is meant by the terms benchmarking, ISO 9000 series, and Six Sigma.3-4. Contrast policies and rules.3-5. Describe the Gantt chart.

Chapter Outcomes and Learning Objectives

© 2016 Pearson Education, Inc. 3-2

3-6. Explain the information needed to create a PERT chart.3-7. Describe the four ingredients common to goal-setting programs.3-8. Define entrepreneurship and how it affects supervision.


Chapter Outcomes and Learning Objectives

• Productivity - Output per labor hour, best expressed by the formula Productivity = Output/(Labor + Capital + Materials)

• Productivity measures can be applied to the individual, the group, and the total organization


Formal Planning

Productivity


• U.S. companies are increasing productivity by becoming more quality and customer oriented

• Having increased productivity makes the U.S. economy stronger

• Productivity creates jobs, enhances production dominance, encourages job security for employees, and affords research and development efforts


The Importance of Productivity

• Strategic planning - Organizational planning that includes the establishment of overall goals, and positioning an organization’s products or services against the competition

• Tactical planning - Organizational planning that provides specific details on how overall goals are to be achieved


Breadth of Planning

• Short-term plan - A plan that covers a period of less than one year

• Intermediate-term plan - A plan that covers a period of one to five years

• Long-term plan - A plan that covers a period in excess of five years


Planning Time Frames

• Benchmarking - The search for the best practices among competitors or non-competitors that lead to their superior performance


Continuous-Improvement Programs

• ISO 9000 series - Standards designed by the International Organization for Standardization that reflect a process whereby independent auditors attest that a company’s factory, laboratory, or office has met quality management standards


Continuous-Improvement Programs continued…

• Six Sigma - A philosophy and measurement process that attempts to “design in” quality as a product is being made


Continuous-Improvement Programs continued…

• Standing plan - A plan that can be used over and over again by managers faced with recurring situations

• Policies - Broad guidelines for supervisory action


Key Planning Guides

• Procedure - A standardized way of responding to repetitive problems; a definition of the limits within which supervisors must stay as decisions are made

• Rule - An explicit statement that tells employees what they ought or ought not to do


Key Planning Guides continued…

• Single-use plan - A detailed course of action used once or only occasionally to deal with a problem that doesn’t occur repeatedly

• Program - A single-use set of plans for a specific major undertaking within an organization’s overall goals; programs may be designed and overseen by top management or supervisors


Single Use Plans

• Budget - A numerical plan that expresses anticipated results in dollar terms for a specific time period; used as a planning guide as well as a control device


Single Use Plans continued…

Exhibit 3-4, Department expense budget


• Scheduling - Detailed planning of activities to be done, the order in which they are to be done, who is to do each activity, and when the activities are to be completed



• Gantt chart - A bar chart with time on the horizontal axis and activities to be scheduled on the vertical axis; shows when tasks are supposed to be done and compares actual progress on each task



Exhibit 3-5, A sample Gantt chart


• PERT chart - A diagram that depicts the sequence of activities needed to complete a project, and the time or costs associated with each activity



• Events - Endpoints that represent completion of major activities

• Activities - The time or resources required to progress from one event to another

• Critical path - The longest or most time-consuming sequence of events and activities in a PERT chart


PERT Terminology

Exhibit 3-7, PERT chart for the furnace modernization project


• Goal setting - A system by which employees jointly determine specific performance goals with their supervisors

• Progress toward goals is periodically reviewed, and rewards are allocated on the basis of this progress


Goal Setting

Exhibit 3-8, What may happen in traditional goal setting


• Balanced scorecard - A strategic planning and management system used to translate and align business activities to the vision statement of a business after review of the company’s:– financial processes– customer processes– internal processes– innovation/growth processes


Balanced Scorecard

• Entrepreneurial - Willing to use initiative and take risks to make a profit

• Entrepreneurship - The process of initiating a business venture, organizing the necessary resources, and assuming the risks and rewards


The EntrepreneurialSupervisor

• Intrapreneurs - A supervisor within an organization who promotes innovative product development and marketing approaches, and behaves similarly to the risk-taking style of an entrepreneur


The EntrepreneurialSupervisor continued…

• Business plan - A document that identifies the business founder’s vision, and describes the strategy and operations of that business


The EntrepreneurialSupervisor continued…

3-1. Define productivity.3-2. Describe how plans should link from the top to the bottom of an organization.3-3. Identify what is meant by the terms benchmarking, ISO 9000 series, and Six Sigma.3-4. Contrast policies and rules.3-5. Describe the Gantt chart.

Chapter Summary


3-6. Explain the information needed to create a PERT chart.3-7. Describe the four ingredients common to goal-setting programs.3-8. Define entrepreneurship and how it affects supervision.


Chapter Summary continued…

3 3 planning and goal setting. 3-1. define productivity. 3-2. describe how plans should link from...

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