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  • Setting objectives Deciding what must be done to achieve them.
  • All levels of management develop plans. Wal=Mart example Executive sign a contract with Spiderman II Middle managers carry out Executive orders and create and buy additional advertising. Supervisors might create displays, staff more employees, etc.
  • Wal-Mart Example Part II. Supervisors might tell their middle managers that customers are upset because shoes are relatively more expensive than at other stores. Middle managers let executives know. Executives renegotiate terms with shoe venders.
  • Always important for supervisors to know the big picture. FedEx Strategic Plan: Giving customers credit if packages are late. Supervisor: establish incentives for catching priority packages.
  • SMART Specific: link it to a rate, number, percentage, or frequency. NOT “we want to make more money.” Measurable: difficult: “We want to produce 20% more units in the next 2 months.” Achievable: Not too high or too low. Relevant: Is it important to the organization? Time-Based: Not sometime, but specific days, months, years.
  • What must be done?—Are all of the actions taken related to the objective? Why must it be done?—Can the use of resources be justified When should it be done?—Dates and times must be selected. Who should do it?—What skills and abilities are required? Where should it be done?—Where will the people and equipment be located? How should it be done?—What methods? Do new methods need to be developed?
  • The what-ifs. . . They cannot prepare for all situations. What could go wrong?
  • Policies: Respond to customer complaints on time. Hire from within. Not negotiate with our customers. Procedure: If machine A breaks down, step 1, 2, 3, . . If a position becomes open, post it internally, review applicants, post it externally. . . Rules: Specific: You must be a member of the Union. Safety glasses must be worn at all times.
  • Wal-Mart Example Initial budget—LAZER esample Safety, methods—you are the closest management to the actually work.
  • Wal-Mart example Resource allocation: efficient allocation of people, material, and equipment Routing: determining the best sequence of operations-----flowcharts and other graphic devices are often used to help detect and eliminate inefficiency in routes Scheduling: developing precise timetables for production activities Gantt charts: modeling tool used to visualize and simplify scheduling CPM and PERT: graphic network representation of the things to be done Activity-the work necessary to complete a particular event Event-denotes a point in time Dummies-dashed arrows that show dependent relationships Materials, Facilities, and Human Resources Home Construction Job Sup Resource allocation : What employees are better at what Routing : What order do things need to be done. Scheduling : Set schedule with suppliers and employees Gantt charts : Activities performed Vertically and time horizontally CPM and PERT : CPM: Critical path method PERT: program evaluation and review technique graphic network representation of the things to be done Activity-the work necessary to complete a particular event Event-denotes a point in time Dummies-dashed arrows that show dependent relationships
  • Set objectives for each employee Example: How would I like to be evaluated on my job? Periodic progress reviews. Jointly set by supervisor and employee Employee must be periodically evaluated Employees must be rewarded based on objective attainment.


  • 1. Chapter 6 Supervisory Planning
  • 2. The What and How of Supervisory Planning
    • Planning is the process of deciding what objectives to pursue during a future time period and what to do to achieve those objectives
  • 3. How the Organization Plans
    • Strategic plans are the responsibility of top management, but many levels of managers are involved in its development
    • Specific plans for the different parts of the organization are derived from the strategic plan
    • As the planning process moves to lower levels it changes
      • The plans become narrower in scope
      • They cover shorter time spans
      • They become more specific and detailed
  • 4. The Supervisor and Strategic Planning
    • Benefits to supervisors being involved in strategic management process:
      • Allows them to see the ‘big picture’
      • They develop more conceptual skills and better decision-making skills
      • It prepares them to move up in the organization
  • 5. The Supervisor’s Role in Planning
    • Supervisory plans are derived from the general plans of higher levels of management
    • Supervisory plans are more detailed; answering who, what, why, where, and how
    • Supervisors often provide input for upper level management planning
  • 6. The What and How of Supervisory Planning
    • Setting objectives -- At the supervisory-level, objectives typically deal with quantity, quality, cost, personnel, and safety. Objectives that have the best chance for success have certain characteristics:
    • (SMART)
        • Specific, measurable, achievable, relevant, and time-based
  • 7. The What and How of Supervisory Planning
    • Action planning
    • The action plan tells how objectives are to be achieved and should answer the following questions:
      • What must be done?
      • Why must it be done?
      • When should it be done?
      • Who should do it?
      • Where should it be done?
      • How should it be done?
  • 8. Contingency Plans
    • Contingency plans keep the supervisor prepared and knowing what to do if something goes wrong
    • They should be discussed with subordinates and other supervisors who would be affected by them
  • 9. Policies, Procedures, and Rules
    • Policies
      • Are broad general guidelines to action
      • Set boundaries for action
      • Ensure consistency in the organization
    • Procedures
      • Are a series of related steps performed in sequential order to achieve a purpose
      • Are sometimes known as standard operating procedures (SOPs)
      • Provide uniformity and lessen the need for decisions
    • Rules
      • Require that specific and definite actions be taken or not taken with respect to given situations
      • Permit no flexibility or deviation
      • Usually involve a single action
  • 10. Common Supervisory Planning Activities
      • Providing information for high-level planning
      • Developing a budget:: A budget is a statement of expected results or requirements expressed in financial or numerical terms
      • Improvement programs: These may include cost-reduction programs aimed at improving safety, quality, methods, and housekeeping
      • Human resource needs: These include staffing and planning for absences
  • 11. Common Supervisory Planning Activities
    • Production planning: Determining the necessary materials, facilities, and human resources
      • Resource allocation
      • Routing
      • Scheduling
      • Gantt charts
      • CPM and PERT
  • 12. Management By Objectives
    • Based on the premise that establishing personal goals elicits employee commitment, which in turn leads to performance
    • Each employee has a part in determining work objectives and the means for achieving them
    • Employees are rewarded on the basis of objective attainment
    • MBO is most effective when used at all levels of the organization