1

Establishing GoalsPlanning

Defining an organizations objectives and goals.

Establish the overall strategy for achieving those goals.

Developing a comprehensive hierarchy of plans to integrate and coordinate activities.

2

ProductivityOutput per labor hour, best expressed by the formula:

Productivity = Outputs/Labor + Capital + Materials

Productivity can be applied to the individual, the group, and the total organization.

3

Breadth of Planning

Strategic Planning Covers the entire planning.

Includes the establishment of overall goals.

Positions the organizations products and services against the competition.

4

Breadth of Planning

Tactical Planning

Organizational planning that provides specific details on how overall goals are to be achieved.

5

Planning Time FramesShort-term Plans

One year or less

Intermediate-term PlansOne to five years

Long-term PlansFive years or more

6

Hierarchy of Objectives

Effective planning requires integration and coordination of objectives in a way that links them together so that the higher level objective is supported by one or more lower level objectives.

7

Types of Plans

Standing-use Plans

Plans that can be used over and over again by managers

faced with recurring activities.

Policies - Procedures - Rules

8

Types of Plans

Single-use PlansDetailed courses of action used

once or only occasionally to deal with problems that don’t

occur repeatedly.

Programs - Budgets Schedules

9

Types of Scheduling

PERT ChartA diagram that depicts the sequence of activities needed to complete a project and the time or costs associated with each activity.

Gantt ChartA bar chart with time on the horizontal axis and activities to be scheduled on the vertical axis. The chart shows when tasks are supposed to be done and compares actual progress on each task.

10

Management by Objective

A system by which employees jointly determine specific performance objectives with their supervisors, progress toward objectives is periodically reviewed, and rewards are allocated on the basis of this progress.

11

Management by ObjectiveKey Components

Goal specificity Participation Time limits Performance feedback