Planning in Organizations

Why supervisors and managers plan:Knowing what the organization is trying to accomplish helps

them set priorities and make decisions aimed at accomplishing their goals.

Planning forces managers to spend time focusing on the future and establishes a fair way for evaluating performance.

Planning helps managers use resources efficiently.The functions that managers perform all depend on good

planning.Supervisors rarely have much input into the way an

organization does its planning; they participate in whatever process already exists.

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Objectives

Planning centers on the setting of goals and objectives.Objectives specify the desired

accomplishments of the organization as a whole or as a part of it.

Goals are objectives with a broad focus.

An organization’s goals identify what its people should be striving toward.

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Characteristics of Effective Objectives

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Policies, Procedures, and Rules

PoliciesBroad guidelines for how to act

ProceduresSteps that must be complete to achieve a

specific purposeRules

Specific statements of what to do or not do in a given situation

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Action Plans

The supervisor creates an action plan 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?

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Contingency Planning

Review all objectivesLook for areas where

something might go wrongDetermine how to respond

if those problems do arise

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Contingency planning

Planning what to do if the original plans don’t work out. Does not have to be formal or written down.

Management by Objectives

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.

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Management by Objective (MBO) involves three steps:

The Supervisor as a Planner

In most organizations, supervisors are responsible for the creation of plans that specify:GoalsTasksResourcesResponsibilities

Providing information and estimatesHigher management relies on supervisors to provide

estimates of the personnel and other resources they will need to accomplish their work.

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Allocating Resources

Allocating human resourcesDetermining how many and what kind of employees

the department will needAllocating equipment resources

Determining how much equipment is needed to get the job done

Allocating money resourcesDeveloping a budget

SchedulingGantt chartsPERT networks

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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.

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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 cooperateAfter 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.

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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.

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The Process of Controlling

Establish performance standardsEffective performance standards should be written,

measurable, clear, specific, and challenging but achievable.

Monitor performance and compare with standardsThe supervisor should focus on how actual

performance compares with the standards he or she has set.VarianceException principle

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The Process of Controlling (continued)

Reinforce successes and fix problemsIf 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.

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Types of Control

Feedback controlControl that focuses on past performance

Concurrent controlRefers to work that is being done

PrecontrolRefers to efforts aimed at preventing

behavior that may lead to undesirable results

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Tools for Control

BudgetsA plan for spending money

Performance reportsSummarize performance and compare it

with performance standardsPersonal observation

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Characteristics of Effective Controls

TimelinessTimely controls enable the supervisor to correct

problems in time to improve resultsCost-effectiveness

The cost of using the controls should be less than the benefit derived from using them

AcceptabilityThe controls should be acceptable to supervisors and

employeesFlexibility

Supervisors should be able to ignore a variance if doing so is in the best interest of the organization

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