ESTABLISHING GOALS

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ESTABLISHING GOALS

• CHAPTER 3

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Planning Productivity

• planning is an integral part of increased
  productivity
• Productivity output/(labor capital
  materials)

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Why is planning important?

• It should and does occur at all levels.

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DIFFERENT LEVELS OF PLANNING

• Strategic
• Tactical

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STRATEGIC

• covers the entire organization
• includes the overall goals
• recognizes competitive organizations
• generally a top-management responsibility (big
  picture)

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TACTICAL

• covers specific details
• task oriented
• more likely to be a supervisors job

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TIME FRAMES OF PLANNING

• (p 76 chart)
• Short-term
• Intermediate
• Long-term

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Short-term plan

• less than one year in length
• emphasis of supervisors

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Intermediate plan

• one to five year time frame
• middle-management

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Long-term plan

• excess of five years
• top-management

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TYPES OF PLANS

• Standing plans
• Single-use plans

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Standing plans

• Can be use repeatedly
• Policies
• broad guidelines for managerial action
• Procedures
• standardized way of responding to repetitive
  problem
• Rules
• explicit statement telling supervisors what to do

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Single-use plans

• detailed course of action
• used once or twice at best
• Programs - used when you need integrated plans to
  accomplish objectives
• Budgets - numerical plans (can be major drivers
  of business)
• Schedules - focuses on prioritizing by timelines

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MANAGEMENT BY OBJECTIVES (MBO)

• employees jointly determine specific performance
  objectives
• progress is periodically reviewed
• rewards are allocated based on feedback
• goals are used to motivate rather than control
• Works from the bottom up as well as top down

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The Four parts of MBO

• 1) Goal specifics
• 2) Participation
• 3) Time limits
• 4) Performance feedback

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1) Goal specifics

• specific statements of expected accomplishments
• no generic goals

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2) Participation

• no imposed goals
• goals are jointly determined
• Supervisor and employees also determine how to
  get there and how to evaluate

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3) Time limits

• concise time period tied to each objective

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4) Performance feedback

• continuous feedback
• formal feedback (appraisals)

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Positive aspects of MBO

• empowers employees
• gives clarity and direction
• feedback motivates employees
• removes politics and pressures from appraisals
  and work place