1 Establishing Goals Planning n Defining an organizations objectives and goals. n Establish the overall strategy for achieving those goals. n Developing a comprehensive hierarchy of plans to integrate and coordinate activities.

2 Productivity Output per labor hour, best expressed by the formula: Productivity = Outputs/Labor + Capital + Materials Productivity can be applied to the individual, the group, and the total organization.

3 Breadth of Planning Strategic Planning n Covers the entire planning. n Includes the establishment of overall goals. n Positions the organizations products and services against the competition.

4 Breadth of Planning Tactical Planning Organizational planning that provides specific details on how overall goals are to be achieved.

5 Planning Time Frames Short-term Plans One year or less Intermediate-term Plans One to five years Long-term Plans Five years or more

6 Hierarchy of Objectives Effective planning requires integration and coordination of objectives in a way that links them together so that the higher level objective is supported by one or more lower level objectives.

7 Types of Plans Standing-use Plans Plans that can be used over and over again by managers faced with recurring activities. Policies - Procedures - Rules

8 Types of Plans Single-use Plans Detailed courses of action used once or only occasionally to deal with problems that don’t occur repeatedly. Programs - Budgets Schedules

9 Types of Scheduling PERT Chart A diagram that depicts the sequence of activities needed to complete a project and the time or costs associated with each activity. Gantt Chart A bar chart with time on the horizontal axis and activities to be scheduled on the vertical axis. The chart shows when tasks are supposed to be done and compares actual progress on each task.

10 Management by Objective A system by which employees jointly determine specific performance objectives with their supervisors, progress toward objectives is periodically reviewed, and rewards are allocated on the basis of this progress.

11 Management by Objective Key Components n Goal specificity n Participation n Time limits n Performance feedback