1. Chapter 3 Planning and Goal Setting

2. 2 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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.

3. 3 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Planning defined Formal planning—specific goals are formulated, committed to writing, and made available to organizational members. Informal planning—Planned in the head, but not written down. There is little or no sharing of these plans with others.

4. 4 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Productivity Productivity = Output / Labor + Capital + Materials

5. 5 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. EXHIBIT 3–1 Industries in which the United States is a major producer in the world market.

6. 6 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper 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

7. 7 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Continuous-improvement programs Benchmarking ISO 9000 Series Six Sigma

8. 8 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. EXHIBIT 3–3 Six sigma—twelve process steps.

9. 9 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper 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

10. 10 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper 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 budget Exhibit 3–5 schedule

11. 11 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. EXHIBIT 3–4 Department expense budget.

12. 12 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. EXHIBIT 3–5 A sample Gantt chart.

13. 13 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Developing a PERT chart n Identify every significant activity that must be achieved for a project to be completed. n Determine the order in which these events must be completed. n Diagram the flow of activities from start to finish n Compute a time estimate. n Determine a start and finish date for each activity and the entire project.

14. 14 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. EXHIBIT 3–7 PERT chart for the furnace modernization project.

15. 15 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. EXHIBIT 3-8 What may happen in traditional objective setting.

16. 16 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Goal setting A process where employees jointly determine specific performance goals with their supervisors. Key to effectiveness Goal specificity Participation Time limits Performance feedback I Dreamed a Dream

17. 17 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. EXHIBIT 3–9 Comparison of entrepreneurs and traditional supervisors.