Principles of Supervision

1. Principles of Supervision Establishing Goals Chapter 3

2. Learning Goals Define productivity.� Describe how plans should link from the top to the bottom of an organization Identify what is meant by the terms benchmarking , ISO 9000, and six sigma Contrast policies and rules Describe the Gantt chart� Explain the information needed to create a PERT chart Describe the four ingredients common to goal-setting programs Define entrepreneurship and explain how it affects supervision

3. What Is Productivity? Productivity = outputs/labor + capital + materials Can be applied at three levels Individual Group Organization

4. Why Is Productivity Important? It is what makes a country�s economy stronger Creates jobs Encourages job security Affords increased R&D which means new products which means further productivity gains

5. Planning The type of planning a manager does tends to vary with their level in the organization. Let�s look at two major types: Strategic planning Tactical planning

6. Strategic Planning Covers the entire organization, includes the establishment of overall goals Position�s the organization�s products or services against the competition Focus is on the big picture Generally done by top management

7. Tactical Planning Specific plans on how overall goals are to be achieved Focus is on the picture within the big picture Is generally done by supervisors

8. Planning Time Frames Long-term plans Longer than three years Done by top-level managers Intermediate plans Cover from 1-3 years Realm of the middle managers Short-term plans Less than one year in length Supervisory-level planning horizon

9. Planning & Organizational Levels

10. How are Plans and Managerial Levels Linked? Long-term strategic planning Sets the direction for all other planning Overall strategy defined by top management Intermediate-term tactical planning Developed by mid-level managers to carryout top-level plans Short-term tactical planning Developed by supervisors to facilitate mid-level managers� plans

11. TQM and Planning Can be used to enhance planning efforts Requires recognizing customer wants and needs Requires strategic innovation Can apply to organizations worldwide, public and private, in their planning efforts

12. Planning Effective planning is integrated If planning is properly linked from top management through supervisory management, achievement of tactical goals/plans should result in the achievement of strategic goals/plans

13. Key Planning Guides Standing plans � allow managers to save time by handling similar situations in a predetermined and consistent manner. Include: Policies Procedures Rules

14. Policies Broad guidelines for managerial actions Typically established by top management Define the limits within managers must stay Although policies are rarely made by supervisors, supervisors must use good judgement in interpreting and applying them

15. Procedures A standardized way of responding to a recurring problem Standardized procedures to handle standardized problems, as with policies must be consistent Define the limits in which managers must stay, they provide consistency Procedures are more specific than policies

16. Rules Explicit statements which tell a manager what he or she can or cannot do Very specific Frequently used to confront recurring problems Simple to follow and ensure consistency Permit supervisor to make discipline decisions rapidly and with a high degree of fairness

17. Key Planning Guides Single-use Plans � detailed courses of action used for a specific activity or time period. Developed by all managers. Include: Programs Budgets Schedules

18. Program Single-use set of plans for a specific undertaking Regardless of managerial level, programs are developed for undertakings that are nonrecurring and require a set of integrated plans

19. Budget Numerical plans Typically anticipate results in dollar terms for a specific time period. (1 year) Actually assign resources to work towards goals Used as a control tool where consumption can be measured against progress Supervisors should be involved in the preparation of budgets

20. Schedule Determines what activities have to be done Details the order they are to be done Details who is to do each activity Details when each activity is to be completed Examples are the Gantt Chart and the Pert Chart

21. Gantt Chart A bar chart that shows planned and actual activities Planning comes from deciding what activities need to be accomplished and the amount of time allotted for each Chart becomes a control device when the manager looks for deviations from the plan Work well when activities are few in number and are independent of each other

22. Sample Gantt Chart

23. Pert Chart A diagram that depicts the sequence of activities needed to complete a project and the time and cost associated with each Used for scheduling complex projects Makes it easy to compare what effect alternative actions will have on scheduling and costs Allows supervisors to monitor a project�s progress, identify possible bottlenecks, and shift resources as necessary to keep on schedule

24. Developing a Pert Chart Events � end points that represent the completion of major activities Activities - Time or resources required to progress from event to another Critical Path � The longest sequence of events and activities in a PERT chart

25. Developing a Pert Chart Identify every significant activity Determine the order of events Diagram the flow of activities Compute a time estimate for each activity Determine a schedule for the start and finish dates of each activity

26. Management By Objectives A system in which subordinates jointly determine specific performance objectives with their supervisors MBO works from the bottom up as well as from top down Progress is periodically reviewed and rewards are allocated based on progress Objectives are linked from one managerial level to the next

27. Keys to Effective MBO Use of specific goals Participation of subordinates and managers Use of specific time frames Use of on-going (informal) and periodic (formal) feedback

28. Entrepreneurship Definition Characteristics

29. Principles of Supervision Organizing an Effective Department Chapter 4

30. Learning Goals Define organizing Describe why work specialization should increase economic efficiency Explain how the span of control affects an organization�s structure Contrast line and staff authority Explain why organizations are increasingly becoming decentralized Describe how flatter structures can be beneficial to the organization Explain the concept of a learning organization and how it influences organizational designs and supervisors Discuss the value of job descriptions Identify the four-step process of delegation

31. The Four Functions of Management

32. What Is Organizing? Formal (defined by management) Arranging and grouping jobs Allocating work resources Assigning work so activities can be accomplished Developing rules and procedures

33. What Is Organizing? Informal Alliances among individuals and groups which are outside the formal structure

34. Basic Organizing Concepts Work specialization Span of control Unity of command Authority

35. Work Specialization A job is broken down into a number of steps, each step completed by a separate individual Classical view Increases economic efficiencies Prevents high skilled workers from performing low skilled tasks

36. Work Specialization Contemporary view Is not an unending source of increased productivity Work can become too specialized Overspecialization can cause stress, fatigue, creating poor quality, low productivity, higher absenteeism and higher turnover Therefore motivation, productivity and quality can be increased by increasing variety in employee activities

37. Span of Control The number of employees a manager supervises No universal set number Depends on the ability of the supervisor and the type of tasks, abilities and experience of workers Trend is towards larger spans of control

38. Span of Control There are contrasting spans of control

39. Span of Control Wide span of control Fewer levels of management Reduces costs Increased use of telecomuting Requires modifications of work assignments, increased training Requires improvements in skill levels Requires redesigning jobs

40. Chain of Command More commonly known as unity of command - an employee should have only one supervisor to whom he/she is directly responsible This principle should not be violated

41. Authority Rights inherent in a supervisory position to give orders and to expect orders to be obeyed Flows from a persons position Requires obedience because of managerial position

42. Line Authority Entitles the supervisor to direct the work of his/her subordinates Gives the supervisor the right to make decisions

43. Staff Authority A limited authority that supports line authority by advising, servicing, and assisting Can give advice but it does not have to be obeyed

44. Functional Authority Represents rights over individuals outside one�s own direct area Can violate the unity of command principle � but this problem can be resolved by clearly delineating what activities come under the line supervisor and what activities under the person with functional authority Creates efficiencies by permitting specialization of skills

45. Authority Relationships

46. Authority Vs. Responsibility Authority comes from the supervisor�s formal position Responsibility refers to the obligations of the supervisor to use his or her authority to achieve stated goals, stay within budgets, follow company policies and motivate employees

47. Authority vs. Responsibility Authority without responsibility creates opportunities for abuse Authority is needed to successfully carry out delegated responsibilities Responsibility without authority creates frustration and the feeling of powerlessness Responsibility is created when top management appoints supervisory personnel to carry out specific goals Therefore, authority and responsibility must be equal

48. Where Are Decisions Made? Centralization Problems flow up � decisions down Old model � time consuming Decentralization Decision making is pushed down Very common today Supervisor have the power!

49. How Are Employees Grouped Functional departmentalization Product departmentalization Geographic departmentalization Customer departmentalization Process departmentalization Matrix design

50. Functional Departmentalization

51. Functional Departmentalization Most directly takes advantage of work specialization Places together jobs that are performed by people with the same kinds of training and expertise Facilitates coordination and communication

53. Product Departmentalization Each major product area in the organization is under the authority of one supervisor who is responsible for everything having to do with that product line Creates relatively independent units

54. Geographic Departmentalization

55. Geographic Departmentalization

56. Geographic Departmentalization Done on the basis of geography or territory Particularly popular with sales and marketing units Places the decision-making authority close to the work

57. Customer Departmentalization

58. Customer Departmentalization Fastest growing form of departmentalization Focus is on customer service � common interest, concerns, and needs

59. Process Departmentalization

61. Process Departmentalization Based on departmental production processes Offers a basis for the homogenous categorizing of activities

62. Matrix Design Combines the advantages of functional specialization with the focus and accountability that product departmentalization provides, while avoiding the weaknesses of both Creates a dual chain of command, employee reports to two bosses, their functional department supervisor and their product or project supervisor Breaks the principle of unity of command

63. Matrix Design

64. Why Is There a Movement to Simpler Employee Groupings? Large organizations Vs Small organizations

65. Large Organizations Highly complex and formalized organizational structure Centralized decision making Rigid, multileveled Bureaucratic and inefficient Unable to adjust to a rapidly changing environment

66. Small Organizations Simple structure Manager and owner are usually one and the same Communication much more efficient Flexible and able to respond to changing environmental conditions Accountability clear

67. Simple Structure A nonelaborate structure low in complexity, with little formalization, and with authority centralized in a single person; a �flat� organization with only two or three levels

68. Simple Structure Weaknesses Become inadequate as organization grows Decision making slows/stop as the owner/manager gets bogged down with making all decisions If owner-manager dies or gets injured, the entire business may come to a standstill

69. Are There Simple-Like Structures for Larger Organizations? Horizontal Structure Flat organization used in small businesses as well as giant companies in which job-related activities cut across all parts of the organization Focus is on the entire work being done by teams rather than individualized tasks

70. Horizontal Structure Requirements Employees will have to master multiple skills and be rewarded accordingly Rewards based on how the team, not the individual performs Employee evaluations on multiple bases: I.e., the 360 evaluation

71. Organizing Your Employees Begin by making a list of all the specific tasks which your department must do Combine tasks into individual jobs Be sure work loads are balanced based on physical, mental and time demands

72. Fitting Grouping to the Situation Simple or Complex Structure Choice will depend on work environment Will be situational depending on organization�s priorities and objectives If efficiency matters most, group employees by the job performed Focus on being efficient and continue refining your current skills, emphasize work specialization Play to strength of employee grouping in order to provide greater output at most effective cost

73. Job Description Describes what the employee is supposed to be doing Lists job duties, working conditions, and operating responsibilities, -what the job holder does Acts as a standard against which employee performance is measured

74. Empowering Others Through Delegation Empowerment Increasing employees� involvement in their work through greater participation in decisions that control their work and by expanding responsibility for work outcomes The ultimate in delegation

75. What is Delegation? Allocation of duties � the tasks and activities that a manager desires to have someone do Delegation of authority � empowering the employee to whom you have extended the authority the right to act on your behalf Assignment of responsibility � the corresponding obligation to carry out the assigned duties that goes along with the delegation of authority Creation of accountability � to hold the employee answerable for properly carrying out his or her duties

76. Delegation The supervisor holds the ultimate responsibility for the employee The supervisor must specify: Exactly what is to be done and when and by whom The range of the employees discretion The expected level of performance