3 Planning and Goal Setting Supervision Today! 7th Edition Planning, organizing, staffing, controlling, and decision making Planning and Goal Setting 3 Supervision Today! 7th Edition Stephen Robbins David DeCenzo Robert Wolter

Chapter outcomes Define productivity. Describe how plans should link from the top to the bottom of the organization. Identify what is meant by the terms benchmarking, ISO 9000 series, and six sigma. Contrast policies and rules. Describe the Gantt chart. Explain the information needed to create a PERT chart. Describe the four ingredients common to goal-setting programs. Define entrepreneurship and explain how it affects supervision. Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

Planning defined Formal planning Informal planning Specific goals are formulated Committed to writing Made available to organizational members. Informal planning Planned in the head, but not written down Little or no sharing of these plans with others. Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

Labor + Capital + Materials Productivity Productivity = Output / Labor + Capital + Materials Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

EXHIBIT 3–1 Industries in which the United States is a major producer in the world market. Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

Types of plans Strategic planning Tactical planning Short-term plan Intermediate-term plan Long-term plan Standing plan Single-use plan Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

Continuous-improvement programs Benchmarking ISO 9000 Series Six Sigma Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

EXHIBIT 3–3 Six sigma—twelve process steps. Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

Standing plans A plan that can be used over and over again by managers faced with recurring activities Policies Procedure Rule Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

Single-use plan Plan designed for a specific activity or time period Programs Budgets Schedules Examples Exhibit 3–4 Department expense budget Exhibit 3–5 A sample Gantt chart Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

Department expense budget. EXHIBIT 3–4 Department expense budget. Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

EXHIBIT 3–5 A sample Gantt chart. Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

Developing a PERT chart STEP 1- Identify every significant activity that must be achieved for a project to be completed STEP 2- Determine the order in which these events must be completed STEP 3- Diagram the flow of activities from start to finish STEP4- Compute a time estimate for completion STEP 5- Determine a start and finish date for each activity and the entire project. Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

PERT chart for the furnace modernization project. EXHIBIT 3–7 PERT chart for the furnace modernization project. Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

EXHIBIT 3-8 What may happen in traditional objective setting. Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

Goal setting A system by which employees jointly determine specific performance goals with their supervisors. Key to effectiveness Goal specificity Participation Time limits Performance feedback Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

Entrepreneurship Process of initiating a business venture, organizing resources, and assuming risks. Entrepreneur Characteristics Independent and personally responsible Plan extensively Value independence Prefer calculated risks Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved

EXHIBIT 3–9 Comparison of entrepreneurs and traditional supervisors. Supervision Today!, 7/e Robbins, DeCenzo, Wolter © 2013 Pearson Education Uppers Saddle River, NJ 07458, All Rights Reserved