1. Reaching Goals: Plans and Controls
Chapter 6
Reaching Goals: Plans and Controls
Today’s smart supervisor relies on collaboration to get the job done. The more difficult or impossible the job or the time constraints, the more important it is to get your people involved in creating a plan to get it done.
—Edward J. Felten,
Former president (former), First Supply Group
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives
Describe types of planning that take place in organizations.
Identify characteristics of effective objectives.
Define management by objectives (MBO) and discuss its use.
Discuss the supervisor’s role in the planning process.
Explain the purpose of using controls.
Identify the steps in the control process.
Describe types of control and tools for controlling.
List characteristics of effective controls.
See text page: 138

3. Planning in Organizations
management function of setting goals and determining how to meet them.
For supervisors
figuring out what tasks the department needs to complete to achieve its goals
how and when to perform those tasks

4. Why Supervisors and Managers Plan
Knowing what the organization is trying to accomplish helps them set priorities and make decisions aimed at accomplishing their goals.
Planning forces managers to spend time focusing on the future and establishes a fair way for evaluating performance.
Planning helps managers use resources efficiently.
The functions that managers perform all depend on good planning.
See Learning Objective 1: Describe types of planning that take place in organizations.
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5. Objectives Objectives Goals
specify the desired accomplishments of the organization as a whole or as a part of it.
Goals
objectives with a broad focus.
identify what people should be striving toward.
See Learning Objective 2: Identify characteristics of effective objectives.
See text page: 141

6. Strategic Objectives Strategic planning
creation of long-term goals for the organization.
typically include the type and quality of goods or services the organization is to provide
the level of profits it is to earn

7. Operational Objectives
Operational planning
The development of objectives that specify how divisions, departments, and work groups will support organizational goals

8. Characteristics of Strategic and Operational Planning

9. Characteristics of Effective Objectives

10. Policies, Procedures, and Rules
Broad guidelines for how to act
Procedures
Steps that must be completed to achieve a specific purpose
Rules
Specific statements of what to do or not do in a given situation
See Learning Objective 2: Identify characteristics of effective objectives.
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11. Action Plans
The supervisor creates an action plan by answering the following questions:
What actions need to be taken?
Who will take the necessary steps?
When must each step be completed?
Where will the work take place?
How will the work be done?
See Learning Objective 2: Identify characteristics of effective objectives.
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12. Contingency Planning Contingency planning
Planning what to do if the original plans don’t work out.
Does not have to be formal or written down.
See Learning Objective 2: Identify characteristics of effective objectives.
See text page: 146

13. Contingency Planning Review all objectives
Look for areas where something might go wrong
Determine how to respond if those problems do arise
See Learning Objective 2: Identify characteristics of effective objectives.
See text page: 146

14. Management by Objectives
Management by objectives (MBO)
formal system for planning known as a process in which managers and employees at all levels set objectives for what they are to accomplish.
performance then is measured against those objectives

15. Management by Objectives
All individuals in the organization work with their managers to set objectives, specifying what they are to do in the next operating period.
Each individual’s manager periodically reviews the individual’s performance to whether he or she is meeting the objectives.
The organization rewards the individuals based on how close they come to fulfilling the objectives.
See Learning Objective 3: Define management by objectives (MBO) and discuss its use.
See text page: 147

16. The Supervisor as a Planner
In most organizations, supervisors are responsible for the creation of plans that specify:
Goals
Tasks
Resources
Responsibilities
See Learning Objective 4: Discuss the supervisor’s role in the planning process.
See text page: 148

17. The Supervisor as a Planner
Providing information and estimates
Higher management relies on supervisors to provide estimates of the personnel and other resources they will need to accomplish their work.

18. Allocating Resources Allocating human resources
Determining how many and what kind of employees the department will need
Allocating equipment resources
Determining how much equipment is needed to get the job done
Allocating money resources
Developing a budget
Scheduling
Gantt charts
PERT networks
See Learning Objective 4: Discuss the supervisor’s role in the planning process.
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19. Involving Employees
Employees who are involved in the process tend to feel more committed to the objectives, and they may be able to introduce ideas that the supervisor has not considered.
To get employees involved:
Set objectives and have employees write down what they think they can accomplish in the coming year.
Hold a meeting of the entire work group at which employees and supervisors develop objectives as a group.
See Learning Objective 4: Discuss the supervisor’s role in the planning process.
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20. Planning with a Team and Updating Objectives
Many times teams, not individual managers, are charged with planning.
Supervisors should clearly communicate the scope of the plan and encourage team members to cooperate
After objectives have been set, the supervisor should monitor performance and compare it with the objectives and update objectives as necessary.
Organizations with a regular procedure for planning will specify when supervisors must review and update their objectives.
See Learning Objective 4: Discuss the supervisor’s role in the planning process.
See text page: 153

21. The Supervisor as a Controller
Supervisors need to know what is going on in the area they supervise.
Do employees understand what they are supposed to do, and can they do it?
Is all equipment operating properly?
Is work getting out correctly and on time?
Detection of problems is at the heart of the control function.
See Learning Objective 5: Explain the purpose of using controls.
See text page: 154

22. The Control Process
6-22

23. The Process of Controlling
Establish performance standards
Effective performance standards should be written, measurable, clear, specific, and challenging but achievable.
Monitor performance and compare with standards
The supervisor should focus on how actual performance compares with the standards he or she has set.
Variance
Exception principle
See Learning Objective 6: Identify the steps in the control process.
variance refers to the size of the difference between actual
performance and the standard to be met. When setting standards, the supervisor
should decide how much variance is meaningful for control purposes
exception principle
The control principle
stating that a supervisor
should take action
only when variance is
meaningful

24. The Process of Controlling
Reinforce successes and fix problems
If performance is satisfactory or better, the supervisor needs to encourage this.
If performance is unacceptable, the supervisor needs to make changes that either improve performance or adjust the standard.
See Learning Objective 6: Identify the steps in the control process.
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25. The Process of Controlling
Reinforcement
encouraging the behavior by associating it with a reward
6-25

26. The Process of Controlling
Positive reinforcement
involves the presentation of something pleasant after a desired behavior has occurred
Negative reinforcement
involves the removal of something unpleasant after a desired behavior has occurred

27. The Process of Controlling
Problem
some factor in the organization that is a barrier to improvement.
Symptom
an indication of an underlying problem.

28. Tools for Fixing Performance Problems
6-28

29. Types of Control Feedback control Concurrent control Precontrol
Control that focuses on past performance
Concurrent control
Refers to work that is being done
Precontrol
Refers to efforts aimed at preventing behavior that may lead to undesirable results
See Learning Objective 7: Describe types of control and tools for controlling.
See text page: 160

30. Tools for Control Budgets Performance reports Personal observation
A plan for spending money
Performance reports
Summarize performance and compare it with performance standards
Personal observation
See Learning Objective 7: Describe types of control and tools for controlling.
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31. Characteristics of Effective Controls
Timeliness
Timely controls enable the supervisor to correct problems in time to improve results
Cost-effectiveness
The cost of using the controls should be less than the benefit derived from using them
See Learning Objective 8: List characteristics of effective controls.
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32. Characteristics of Effective Controls
Acceptability
The controls should be acceptable to supervisors and employees
Flexibility
Supervisors should be able to ignore a variance if doing so is in the best interest of the organization