Chapter 6. Reaching Goals: Plans and Controls

Transcription

1 Chapter Chapter 6 Reaching Goals: Plans and Controls

2 6-2 What is Planning? Planning- setting goals and determining how to meet them.

3 Why Plan? Knowing what the organization is trying to accomplish helps them set priorities and make decisions aimed at accomplishing their goals. Forces managers to spend time focusing on the future and helps establish a fair way for evaluating performance. Helps managers use resources efficiently. All other functions (organizing, leading, staffing and controlling) depend on good planning.

4 6-4 Objectives Planning centers on setting goals and objectives. Objectives specify the desired accomplishments of the organization as a whole or as a part of it. Goals-objectives with a broad focus. An organization s goals identify what its people should be striving toward. Top managers set company wide, long-term (strategic) objectives, looking out several years. Supervisors set operational objectives for their department only-deciding what action needs to be taken in the current week or month.

5 6-5 Characteristics of Effective Objectives

6 What makes for a good Objective? Must be in writing Must be measurable (or at least observable) Must be clear Must be specific-who will do what? When? Must be challenging but achievable

7 6-7 Policies, Procedures, and Rules Special Note: Your objectives must be written and carried out in a way that is consistent with your company s policies, procedures, and rules. Policies 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

8 6-8 Action Plans An action plan shows you how to achieve an objective (like a map) An action plan is made 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?

9 A Contingency Plan What if the Action Plan doesn t work? A Contingency Plan tells what to do if your plan isn t working. Be prepared BEFORE problems start! How? Review all objectives and look for areas where something might go wrong Determine how to respond if those problems do arise Contingency plan usually does not have to be formal or written down McGraw-Hill/Irwin 6-9

10 Management by Objectives (MBO) 1. All individuals in the organization work with their managers to set objectives, specifying what they are to do in the next operating period. 2. Each individual s manager periodically reviews the individual s performance to whether he or she is meeting the objectives. 3. The organization rewards the individuals based on how close they come to fulfilling the objectives. McGraw-Hill/Irwin (MBO) involves three steps: 6-10

11 6-11 The Supervisor as a Planner In most organizations, supervisors are responsible for the creation of plans that specify: Goals Tasks Resources Responsibilities 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.

12 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 and justifying the purchase of more Allocating money resources Developing a budget (a plan for spending money) Scheduling-setting a precise timetable for the work to be done Gantt charts-see pg 152 McGraw-Hill/Irwin PERT networks-see pg

13 6-13 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.

14 6-14 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.

15 6-15 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.

16 6-16 The Process of Controlling Establish performance standards -measurements of what is expected. Effective performance standards should be written, measurable, clear, specific, and challenging but achievable. Explain to employees why these standards were set.

17 Monitoring Performance The supervisor should focus on how actual performance compares with the standards he or she has set. Variance-the difference between actual performance and the standard. Exception principle-supervisor takes action only when the variance is important enough to be addressed.

18 6-18 What to do with the Info? 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.

19 Types of Control Feedback control Control that focuses on past work Concurrent control Controlling work while the work is being done Precontrol Happens before work starts and refers to efforts aimed at preventing behavior that may lead to undesirable results

20 6-20 Budgets Tools for Control A plan for spending money Performance reports Compares performances with standards Useful reports clarify rather than conceal problems Personal observation

21 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 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 McGraw-Hill/Irwin 6-21