1. Planning and Goal Setting
Chapter 3
Planning and Goal Setting

2. 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. 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. Labor + Capital + Materials
Productivity
Productivity =
Output /
Labor + Capital + Materials

5. EXHIBIT 3–1
Industries in which the United States is a major producer in the world market.

6. Types of plans Strategic planning Tactical planning Short-term plan
Intermediate-term plan
Long-term plan
Standing plan
Single-use plan

7. Continuous-improvement programs
Benchmarking
ISO 9000 Series
Six Sigma

8. EXHIBIT 3–3 Six sigma—twelve process steps.

9. Standing plans
A plan that can be used over and over again by managers faced with recurring activities
Policies
Procedure
Rule

10. 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. EXHIBIT 3–4
Department expense budget.

12. EXHIBIT 3–5
A sample Gantt chart.

13. Developing a PERT chart
Identify every significant activity that must be achieved for a project to be completed.
Determine the order in which these events must be completed.
Diagram the flow of activities from start to finish
Compute a time estimate.
Determine a start and finish date for each activity and the entire project.

14. EXHIBIT 3–7
PERT chart for the furnace modernization project.

15. EXHIBIT 3-8 What may happen in traditional objective setting.

16. Goal setting
A process where employees jointly determine specific performance goals with their supervisors.
Key to effectiveness
Goal specificity
Participation
Time limits
Performance feedback

17. EXHIBIT 3–9 Comparison of entrepreneurs and traditional supervisors.