Learning Objectives:

After studying this chapter, you should be able to:

1. Explain the importance and benefits of planning and know how to interpret a
company’s policies.

2. Create a properly written objective statement for a department supervisor,

making sure that it is specific, measurable, attainable, relevant, and time-
oriented.

3. Explain the planning process and the differences between long-range and
short-range plans and between standing and single-use plans.

4. Understand the basic concepts and benefits of Project Management and

tools that supervisors can use to facilitate planning.
Key Terms
The following key terms are present throughout chapter 2, and at the end of the chapter you
should have a basic comprehension of them.

Benchmarking: Studying highly effective organizations to identify their best

practices and levels of performance, and using that information to improve one’s
own results.

Contingency Plan: Special-purpose plans that anticipate crises and specify the
probable response to them.

Goals: Short-term and long-range targets (objectives) toward which an organization

strives.

Mission Statement: A statement that clarifies the nature and purpose of a

business.

Policies: Broad guidelines that must be followed in the pursuit of goals.

Project Management: The coordination of a managers work and work of others

such that organizational objectives can be achieved while meeting time, budget,
and quality standards or expectations.

Schedules: Detailed date-and-time indications of how facilities, equipment, and

employees are to be used to accomplish organizational goals.

Strategies: The major methods for achieving an organization’s vision and mission.

Superordinate Goal: An objective that requires cooperation from others to achieve

and appeals to both heart and mind.

SWOT Analysis: An organization’s examination of its internal and external

environments.
Values: What an organization believes in and used to guide its practices.

Vision: A statement of an organization’s ideal future.

Outline

I. Road Maps of an Organization

A. Who is primarily responsible for high-level organizational

planning? Are these tasks part of a supervisor’s workload?

1. Managers and executives are primarily responsible for setting an

organization’s direction.

2. Executives are responsible for the creation of an organization’s

vision, values, mission statement, and strategic plan.

i. Vision

a. A statement of an organization’s ideal future.

b. A vision statement looks at an organization’s ideal future

5 to 10 years out.

ii. Values

a. What an organization believes in and uses to guide its

practices.

iii. Mission Statement

a. A statement that clarifies the nature and purpose of a

business.

b. Mission statements are the one key way that

organization’s differentiate themselves from one another.
 iv. SWOT Analysis

a. An organization’s examination of its internal and external

environments.

b. A process where an organization’s internal strengths and

weaknesses are tabulated and then matched with the
external opportunities and threats.

v. Strategies

a. The major methods for achieving an organization’s vision

and mission.

3. Supervisors make the day-to-day assignments and adjustments

needed to make a master plan effective.

4. Supervisors who do not accept their share of managerial

responsibility in meeting an organizations vision, objectives and
mission ultimately waste:

i. Time

ii. Materials and supplies

iii. Equipment

iv. Space

v. Human resources

B. How far ahead should supervisors plan their work?

1. Supervisors spend their thinking time in the following ways:

 i. 38 percent on problems that come up the same day.

ii. 40 percent on problems that are one week ahead.

iii. 15 percent on problems that are one month ahead.

iv. 5 percent on problems that are three to six months ahead.

v. 2 percent on problems that are one year ahead.

2. A supervisor is responsible for short-range (tactical) plans and

higher executives for long-range (strategic) plans.

C. Plans, planning, policies, goals: What is the difference?

1. Plans

i. Plans are what come out of the planning process.

ii. Before plans can be developed, targets must first be set.

2. Goals

i. Targets are often called goals or objectives.

ii. Goals are short-term and long-range targets toward which

an organization strives.

iii. Once goals have been set, general guidelines are established
for reaching them.

3. Policies

i. Guidelines are often called policies.

 ii. Policies are broad guidelines that must be followed in the
pursuit of goals.

iii. After policies have been set, specific operational plans can be
formulated.

4. Operational Plans

i. Operational plans include:

a. Schedules

• Detailed date-and-time indications of how facilities,

equipment, and employees are to be used to
accomplish organizational goals.

b. Procedures

• The exact methods to be used and sequence to be

followed in carrying out a plan.

c. Standards

• Determine the level (quantity and quality) of

performance expected.

d. Rules and Regulations

• Establish limits (or controls) within which

employees are free to do the job their own way.

D. Are there any benefits from all this planning?

1. Systematic planning helps an organization:

 i. Anticipate environmental uncertainty and prepare to
respond to it.

ii. Focus on the most important things to accomplish.

iii. Create a performance-oriented culture that gets results.

iv. Allocate its human and material resources most wisely.

v. Respond to new opportunities as they arise.

vi. Coordinate activities across levels, departments, and people.

vii. Set the stage for the key process of control.

E. What is meant by company policy?

1. Company Policies

i. Company policies, or organization policies are broad

guidelines for action.

ii. Company policies are a reflection of a company’s broad goals

and a statement of its basic principles for doing business.

iii. Company policies are intended as a guide for supervisors

and managers for getting their jobs done.

F. Is policy always in writing?

1. Not all organizations put their company’s policy in writing.

 2. Research suggests that policies should be placed in writing so that
it may be explained, discussed, and better understood.

3. Having company policies in writing is the best way to hold

employees accountable, and lets them know where an organization
stands in terms of issues such as theft and sexual harassment.

G. Should a supervisor deviate from organizational policy?

1. Policies are set to help guide a supervisor and employees’ action,

and therefore should not be deviated from.

2. Supervisors can influence a policy changes by making their

thoughts and observations know to their manager, the human
resource department, and top management (executives).

3. Supervisors are in the best positions to determine an employee’s

feelings (favorable or unfavorable) towards company policies.

II. Goal Setting

A. Why must goals come before plans?

1. Plans are the means to an end, goals are the ends that are being
sought.

2. Goals/objectives should be set carefully and systematically.

3. There are seven steps to following when setting goals:

i. Consider the goals of the entire organization and how your

department’s objectives will contribute to them.
 ii. Assess the strengths and weaknesses of your department.

iii. Look for areas of improvement.

a. Consider the benefits of benchmarking

• Studying highly effective organizations to identify

their best practices and levels of performance, and
using that information to improve one’s own
results.

iv. Consult with those who will have to help you carry out your
plans and those who can offer their support along the way.

v. Pick a relevant and reasonable set of goals.

vi. Arrange your department’s goals in a hierarchy of objectives.

vii. What our for limitations.

B. With what kinds of goals are supervisors usually concerned?

1. Supervisors are concerned with goals they set themselves, and

goals that are set for them as part of a company’s overall
objectives.

2. Supervisors are also concerned with goals in employee-related

areas such as attendance, turnover, and safety.

3. A supervisor’s goals will often be quantitative (expressed as

numbers, percentages, or dollars) rather than merely qualitative
(described with words such as improve, maintain, good, or better).

4. A supervisor’s goals should be measurable.

C. How can goals be made more compelling?

1. There are four ways to make goals more compelling:

i. Goals should focus on key results and not just on activities.

a. Goals should be something meaningful to try and

achieve, not just spend time on.

b. Goals should provide an opportunity for individual

satisfaction when they are attained.

ii. It is best to create a list of a few goals—but relevant and

important ones—that can be focused on.

iii. A goal should be characterized by the acronym SMART,

which means:

a. Specific

• Goals should be clearly stated in terms, or

numbers, that make their achievement concrete
and detailed.

b. Measurable

• It is best to focus clearly on measurable outcomes

with quantifiable ways to assess them.

c. Attainable

• Effective goals should cause employees to

challenge themselves, and use their talent,
creativity, and energies to attain them.
 • Never set impossible goals.

d. Relevant

• The best goals are directly connected to the

organization’s mission and strategy.

e. Time-oriented

• The target outcome must always be related to a

specific target date or time period.

iv. Goals can be compelling by identifying at least one

superordinate goal.

a. Superordinate Goals

• Goals or objectives that require cooperation from

others to achieve and appeals to both heart and
mind.

D. What are the benefits, pitfalls, and prerequisites of goal-

setting?

1. Benefits of goal setting

i. Setting goals and attaining them, stimulates employees to

take greater interest in their job assignments, heightens their
feelings of effectiveness, and diverts energies away from less
relevant activities.

ii. Goals often motivate employees to use their depth of

knowledge, increases their pace of work, and encourages
them to persist in their efforts.
 iii. Goal achievement often times leads to job promotion and
higher pay.

2. Pitfalls of goal setting

i. Framing a goal as a threat can lead to negative results.

ii. Discouraging risk-taking and creative efforts or placing a

premium on such behaviors.

iii. Inadvertently stimulating competitive conflict between

employees.

iv. Increasing the stress on employees to dangerous levels.

v. Implicitly telling employees to downplay or ignore job

domains for which goals have not been set.

vi. Not requiring a plan of action for how a goal is to be

achieved.

vii. Imposing too many goals, or else preparing them in areas

over which employees have little or no control.

3. How to make goal setting work

i. Ensure that people/employees have the adequate skills,

knowledge, and resources to accomplish the goals set.

ii. Instill strong employee commitment to the goal.

iii. Provide periodic feedback on an employee’s progress in

achieving the goal(s).

iv. Reduce or remove obstacles that would prevent an

employee’s success.
III. The Planning Process

A. Once goals have been set, how does the planning process
proceed?

1. The planning process follows six steps:

i. Develop a master plan that focuses on the main objective.

ii. Draw up supporting plans.

iii. Put numbers and dates on everything you can.

iv. Pin down assignments.

v. Explain the plan to all concerned.

vi. Review your plans regularly.

B. How does planning relate to management by objectives?

1. Management by objectives (MBO) differs from traditional planning

in the following ways:

i. MBO invites employees to get involved in setting their own

objectives, which creates a stronger sense of ownership in
their goals.

ii. MBO gives employees considerable latitude in deciding how

they will attain their goals, by drawing upon their unique
experiences and expertise.
 iii. MBO encourages frequent communication between
supervisor and employee so that there will be “no surprises”.

iv. MBO allows for supervisors to conduct an easier evaluation

of an employees performance based on the goals they set,
and the results they achieve.

C. Should a supervisor’s plans be flexible or rigid?

1. A supervisor’s plans should be stated firmly and clearly so that

everyone concerned can understand them and recognize their
importance.

2. Plans should not be so rigid that changes can not be made in order
to accommodate unexpected circumstances.

3. A good plan should be flexible enough to anticipate and allow for

an alternative course of action.

D. In what way are plans or programs usually classified?

1. Plans are usually classified in the following ways:

i. Long-range Plans

a. Plans that are typically set by higher management and

are expected to be in operation for two to five years.

ii. Short-range Plans

a. Plans that supervisors are most concerned with and are

usually based on operations of one year or less.

iii. Standing Plans

 a. Plans that include just about any activity that goes on
without much change from year to year.

iv. Single-use Plans

a. Plans that are used only once before they must be

revised.

E. Do these four types of plans cover both regular situations

and crises, too?

1. Crises typically require the creation of contingency plans.

i. Contingency Plans

a. Special-purpose plans that anticipate crises and specify

the probable responses to them.

ii. Contingency plans are closely related to the problem-solving

process.

F. What is a good way to evaluate your plans and projects?

1. Using the six-point planning checklist is a good way to evaluate

plans and projects.

i. What is to be done?

ii. Why should this activity be done?

iii. When must this activity or project be completed?

iv. How is this activity to be performed?

 v. Who is to perform this work?

G. How do controls relate to plans?

1. Controls keep results in line with plans.

2. When planning a goal, a supervisor must also plan its control limit,
which provide the feedback needed to trigger corrective actions.

IV. What is Project Management?

A. Project Management

1. Project management is the coordination of a supervisor’s work and

work of others such that organizational objectives can be achieved
while meeting time, budget, and quality standards or expectations.

2. Project management is a systematic process through which almost

all the steps involved in starting and completing a project are
anticipated and outlines in advance.

3. Project management is the process that takes strategy and vision

and makes it a reality.

B. Why project management?

1. A large percentage of the global economy hinges on value created

through effective project management.
 2. 97 percent of companies believe that project management skills
are critical to an organization’s success, leading many companies to
establish some type of project management training.

3. In today’s highly competitive workplace it is essential for

supervisors to have some training or understanding of project
management to help ensure they can achieve the organization’s
goals and objectives.

C. Benefits of project management

1. A project management approach has numerous benefits for

organizations and individuals, which include:

i. Resources such as time, money, and personnel are

appropriately allocated to the organization’s numerous
priorities and objectives.

ii. Long-term objectives can be kept in mind while short-term

objectives are being implemented.

iii. Contingencies can be anticipated.

iv. Project output is made more consistent.

v. Interaction with team members is enhanced.

vi. Morale is enhanced.

vii. Job satisfaction is increased.

viii. Learning is enhanced.

ix. Creativity and synergy are enhanced.

D. Managing the project

1. In order to manage a project a supervisor must be a skilled

individual who possesses the motivation to handle the challenge
but has also honed his or her interpersonal skills.

2. Supervisors with higher emotional intelligence (EQ) have stronger

leadership tendencies and are more successful in influencing a
projects outcome.

3. Supervisors require the following skills in order to be successful

project managers:

i. Communication

a. Project managers must clearly communicate the scope

and nature of the project, tying the project objectives to
the overall organizational strategy.

ii. Persuasion

a. Project managers need to use influence and persuasion

to build and maintain commitment and momentum for
project completion.

iii. Feedback

a. Project managers need to determine the appropriate

timing, level, and source of feedback to guide the team
through the entire process.

b. Feedback is essential during and after the project to

ensure learning for individuals and the organization for
future activities.
 iv. Team Building

a. Project managers need to be effective team leaders.

v. Empowerment and Delegation

a. Project managers need to involve and empower

members of their team in order to gain support for
initiatives and encourage participation and responsibility.

E. Project management tools

1. Several tools are available to help supervisors track the progress of

projects which include:

i. Gantt Chart

a. A chart that describes the temporal relationships of

events or tasks that unfold over time, and can also show
projected and actual schedules.

b. With a Gantt chart a team can track planned activities,

control individual activities, and identify delays or
deviations from the original plan.

c. A Gantt chart is also helpful in debriefing the project and

in improving the team process for the next assignment.

ii. PERT Chart

a. Also known as a program evaluation and review

technique chart.
b. A PERT chart diagrams all the steps involved in
completing a project and estimates the length of time
needed in each phase of the project.

c. A PERT chart helps identify sequences of dependent

activities.

d. The PERT process can also determine the longest

anticipated single line of activity from start to finish,
which is known as the critical path method (CPM).