1. © 2010 Cengage/South-Western. All rights reserved. Chapter 7: SUPERVISORY PLANNING Leonard: Supervision 11e

2. © 2010 Cengage/South-Western. All rights reserved. 7–2 AFTER STUDYING THIS CHAPTER, YOU WILL BE ABLE TO: 1.Define planning and explain why all management functions depend on planning. 2.Explain the concept of strategic planning and its relationship to mission statements and visioning. 3.Describe the supervisor’s role in organizational planning. 4.Discuss the need for well-defined organizational goals and objectives, particularly as they relate to the supervisor. 5.Explain management by objectives (MBO).

3. © 2010 Cengage/South-Western. All rights reserved. 7–3 AFTER STUDYING THIS CHAPTER, YOU WILL BE ABLE TO: (cont’d) 6.Identify the major types of standing and single-use plans and explain how these plans help supervisory decision making. 7.Describe how the supervisor plans for efficient and effective resource use. 8.Explain the key concepts of quality planning. 9.Recognize the importance of planning for the unthinkable: crisis management.

4. © 2010 Cengage/South-Western. All rights reserved. 7–4 Management Functions Begin With Planning Planning:Planning:  Is deciding what is to be done in the future.  Includes analyzing a situation, forecasting events, establishing objectives, setting priorities, and deciding which actions are needed to achieve those objectives.  Precedes all other managerial functions because managers must project a framework and a course of action before trying to achieve desired results.  Planning is a managerial function every supervisor must perform every day.

5. © 2010 Cengage/South-Western. All rights reserved. 7–5 The Strategic-Planning Process Strategic PlanningStrategic Planning  Is the process of establishing goals and making decisions that enable an organization to achieve its long- and short-term objectives.  Is primarily a responsibility of top-level managers for developing and executing strategic or long-term plans.  Requires that middle managers and supervisors engage corresponding (supportive) planning activities of the organization.  Is beneficial to all businesses and organizations, large or small.

6. © 2010 Cengage/South-Western. All rights reserved. 7–6 The Strategic-Planning Process Mission Statements and VisioningMission Statements and Visioning  Mission statement  A statement of the organization’s basic philosophy, purpose, and reason for being.  Visioning  Management’s view of what the company should become; reflects the firm’s core values, priorities, and goals.

7. © 2010 Cengage/South-Western. All rights reserved. 7–7 All Managerial Levels Perform the Planning Function Planning is the responsibility of every manager.Planning is the responsibility of every manager. The magnitude of a manager’s plans depends on the level at which those plans are carried out.The magnitude of a manager’s plans depends on the level at which those plans are carried out.  Planning at the top level is more far-reaching than it is at the supervisory level. Planning looks both ways:Planning looks both ways:  Evaluating previous plans and actions.  Looking to the future.

8. © 2010 Cengage/South-Western. All rights reserved. 7–8 FIGURE 7.1 Planning requires answering these questions.

9. © 2010 Cengage/South-Western. All rights reserved. 7–9 Planning Periods Strategic Plan (Long-term Planning)Strategic Plan (Long-term Planning)  Plans, usually done by higher-level management, that involve a span of three, five, ten, or more years. Short-range PlanningShort-range Planning  Plans which span less than one year. Specialized PlanningSpecialized Planning  Very short-range plans (e.g., weekly production run or a single event)  Preventive maintenance planning

10. © 2010 Cengage/South-Western. All rights reserved. 7–10 Organizational Goals and Objectives GoalGoal  Any long-term target—that is, one that will take more than a year to achieve ObjectiveObjective  A short-term target—that is, one that will take less than a year to achieve.

11. © 2010 Cengage/South-Western. All rights reserved. 7–11 Organizational Goals and Objectives (cont’d) Goals and Objectives:Goals and Objectives:  Identify the overall purposes and results toward which all plans and activities are directed.  Reflect upper-level managers’ vision for the firm’s future commitments and accomplishments.  Become the general framework for operations and lead to more specific objectives for divisional and departmental managers and supervisors.

12. © 2010 Cengage/South-Western. All rights reserved. 7–12 Organizational Goals and Objectives Supervisors must remember two things when developing their departmental objectives: (1) department objectives must be aligned with the organization’s goals and objectives, and (2) there must be a means to measure and document the department’s contribution to the organization’s bottom line.

13. © 2010 Cengage/South-Western. All rights reserved. 7–13 Management by Objectives—A System for Participative Management Management by Objectives (MBO)Management by Objectives (MBO)  A process in which the supervisor and employee jointly set the employee’s objectives and the employee receives rewards upon achieving those objectives.  Elements of an effective MBO system 1.Specific, measurable, and verifiable objectives 2.The inputs, or resources, needed for goal accomplishment 3.The activities and processes that must be carried out to accomplish the goal 4.The results

14. © 2010 Cengage/South-Western. All rights reserved. 7–14 Management by Objectives—A System for Participative Management (cont’d) Why Use Management By Objectives?Why Use Management By Objectives?  MBO is results-oriented.  MBO motivates and encourages commitment to results among all employees.  MBO provides a sound means of appraising individuals’ performance by emphasizing objective criteria rather than vague personality characteristics.  MBO provides a more rational basis for sharing the rewards of an organization, particularly compensation and promotion based on merit.

15. © 2010 Cengage/South-Western. All rights reserved. 7–15 Types of Plans Standing PlansStanding Plans  Policies, procedures, methods, and rules that can be applied to recurring situations. PolicyPolicy  A standing plan originated by top-level managers that serves as a general guide to making decisions. ProcedureProcedure  A standing plan that defines the sequence of activities to be performed to achieve objectives. MethodMethod  A standing plan that details exactly how an operation is to be performed. RuleRule  A directive that must be applied and enforced wherever applicable.

16. © 2010 Cengage/South-Western. All rights reserved. 7–16 Types of Plans Single-Use PlansSingle-Use Plans  Are intended to accomplish a specific objective or cover only a designated period and are no longer needed or are obsolete once the objective is accomplished or the period of applicability is over. BudgetsBudgets  Express specific anticipated results in numerical, usually financial, terms for a stated period.  Are associated with control.  Include supervisor’s grassroots budgeting of materials and supplies, wages, utility expenses, and other departmental expenditures.

17. © 2010 Cengage/South-Western. All rights reserved. 7–17 Types of Plans (cont’d)  Program  A major single-use plan for a large undertaking related to accomplishing the organization’s goals and objectives.  Projects  A single-use plan for accomplishing a specific, nonrecurring activity.

18. © 2010 Cengage/South-Western. All rights reserved. 7–18 Supervisory Planning for Resource Use Planning for the best use of resources: Efficient use of space Use of other major physical resources Use and security of materials, supplies, merchandise, and data Safe work environment Full use of human resources Employee work schedules Improvement in work procedures and methods Employee work schedules

19. © 2010 Cengage/South-Western. All rights reserved. 7–19 Planning for Resource Use Safe Work EnvironmentSafe Work Environment  Workplace violence: An act or threat of assault directed at another employee.  Observance of OSHA and Other Safety Regulations  Safety Committees

20. © 2010 Cengage/South-Western. All rights reserved. 7–20 Planning for Resource Use (cont’d) Full Use of Human Resources Requires:Full Use of Human Resources Requires:  Developing plans for recruiting, selecting, and training employees  Searching for better ways to group activities  Training employees in the proper and safe use of the materials associated with their jobs  Supervising employees with an understanding of the complexities of human needs and motivation  Communicating effectively with employees  Appraising employees’ performances  Recognizing achievement  Promoting deserving employees  Adequately compensating and rewarding employees  Taking just and fair disciplinary actions

21. © 2010 Cengage/South-Western. All rights reserved. 7–21 Planning for Resource Use (cont’d) Employee Work SchedulesEmployee Work Schedules  Overtime and absences  Overtime should be considered an exception or an emergency measure.  Planning for anticipated absences—vacation and holidays  Alternative work schedule plans:  Flextime  Part-time  Job sharing  Telecommuting  Work-at-home

22. © 2010 Cengage/South-Western. All rights reserved. 7–22 Planning for Resource Use (cont’d) Employee Work Schedules (cont’d)Employee Work Schedules (cont’d)  Part-time and temporary employment  Agency hires  Interim employees Improvement in Work Procedures and MethodsImprovement in Work Procedures and Methods  Questions to ask when procedures and methods need updating:  Is each operation needed?  What is the reason for each operation?  Can one operation be combined with another?  Are the steps performed in the best sequence?  Are there any avoidable delays?

23. © 2010 Cengage/South-Western. All rights reserved. 7–23 Planning for Resource Use (cont’d) Planning InventoryPlanning Inventory  To reduce the costs of maintaining large inventories, many firms use inventory-control techniques that better plan the inflow of materials needed for production.  Just-in-time (JIT) inventory control system –A system for scheduling materials to arrive precisely when they are needed in the production process.  Kanban –Another name for a just-in-time (JIT) inventory-control system.

24. © 2010 Cengage/South-Western. All rights reserved. 7–24 Planning for Resource Use (cont’d) Scheduling and Project PlanningScheduling and Project Planning  Gantt chart  A graphic scheduling technique that shows the activity to be scheduled on the vertical axis and necessary completion dates on the horizontal axis.  Program evaluation and review technique (PERT)  A flowchart for managing large programs and projects that shows the necessary activities with estimates of the time needed to complete each activity and the sequential relationship of activities.

25. © 2010 Cengage/South-Western. All rights reserved. 7–25 Crisis Management: Planning Required Crisis PlanningCrisis Planning  Is planning for the unthinkable and its consequences.  Is a proactive approach to crisis management.  Must be an integral part of every organization’s long- and short-term planning.  Involves supervisors in anticipating what must be done to adjust when circumstances and priorities change rapidly.  Allows supervisors to use their information-getting and information-giving skills to help employees prepare for and address crises.

26. © 2010 Cengage/South-Western. All rights reserved. 7–26 KEY TERMS BenchmarkingBenchmarking BudgetBudget Gantt chartGantt chart Just-in-time (JIT) inventory control systemJust-in-time (JIT) inventory control system KanbanKanban Knowledge managementKnowledge management Management by objectives (MBO)Management by objectives (MBO) MethodMethod MetricsMetrics Mission statementMission statement PolicyPolicy ProcedureProcedure ProgramProgram Program evaluation and review technique (PERT)Program evaluation and review technique (PERT) ProjectProject RuleRule Single-use plansSingle-use plans Standing plansStanding plans Strategic planStrategic plan Strategic planningStrategic planning Total quality management (TQM)Total quality management (TQM) VisioningVisioning Workplace violenceWorkplace violence