CHAPTER 3 Planning, Organizing, and Goal Setting Copyright © 2012 by John Wiley & Sons, Inc. All...

CHAPTER

3Planning, Organizing, and Goal Setting

Copyright © 2012 by John Wiley & Sons, Inc. All Rights Reserved

Overview• The Nature of Planning• Types of Plans & Planning• Planning for Change• Planning Your Own Time• Organizing for Success

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Figure 3.1The management process

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The Nature of Planning

• Planning means looking ahead to chart the best courses of future action.

• Planning provides the framework for other functions and activities.

• Planning sets the goal and formulates the strategy to meet the company mission.

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Levels of Planning• Strategic planning is long-range planning by top-

management to set organizational goals, strategies, tactics and policies to meet or exceed the goals.

• Middle managers implement the organization’s long-term goals on a smaller level and within shorter time frames.

• As plans move down through channels to first-line supervisors at the operating level, management translates them into specific supervisory duties and responsibilities.

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The Planning ProcessSteps in making a good plan resemble those in making a good decision:

1. Define the goal, purpose or problem & set strategies of how to meet goals.

2. Collect & evaluate data relevant to forecasting the future.

3. Develop alternative courses of action.4. Decide on the best course of action.5. Carry out the plan.6. Control & evaluate results.

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Forecasting• Find out what happened in the past to estimate

what will happen today.• If no conditions change, you can predict what can

reasonably be expected to happen in the future.• Controls staffing, purchasing, & production

decisions.

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The Risk Factor• The future is always more-or-less uncertain. • You reduce the degree of uncertainty, the risk, when

you collect the relevant data & apply it to your forecast.

• If you have less than 1% of the relevant data, conditions are completely uncertain & the degree of risk is 99%.

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The Risk Factor

In some foodservices the degree of certainty about tomorrow is high (nursing home, cruises).

•Airline catering is preplanned according to number of seats reserved & is updated as boarding passes are issued.

•Hotel occupancy is also fairly predictable, since most people make reservations ahead.

•In planning repetitive work, most of the data are known or predictable, the risk factor is low.

•You can reduce the risk by having an alternative plan in reserve (contingency plan) in case the original plan doesn’t work out.

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Qualities of a Good Plan• Provides a workable solution to the original problem &

meets the objectives.• Is comprehensive; raises all relevant questions &

answers them. • Minimizes the degree of risk necessary to meet the

objectives.• Is specific as to time, place, supplies, tools, & people.• Is flexible and can be adapted.

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Standing Plans• An Established routine, formula, blueprint, or set of

procedures used in a recurring situations (i.e. daily reports, procedures manual, recipe).

• Any standing plan will simplify a supervisor’s task of planning & organizing.

• Management by exception is training employees so the supervisor needs only oversee that workers are meeting the standards and then deal with unexpected events that the standing plan doesn’t cover.

• Large companies usually have them, but smaller operations may not.

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Standing Plans

• The law requires every hospitality operation to have standing plans and policies for dealing with matters affecting health and safety, such as sanitation, fires, and accidents.

• Usually, they consist of 2 parts: preventive routines & standard emergency procedures.

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Standing Plans

• Standing plans have certain potential drawbacks:

• Rigidity - If plans are slavishly followed without adapting and updating them, they may result in a stagnant operation lacking in vitality.

• Changes often evolve in practice but written plans are not kept up to date.

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Single-Use Plans• One-time plan developed for a single occasion or purpose.• Often, the purpose of a single-use plan is a major change of some

sort.• The risks must be carefully assessed & the effects of each

alternative weighed carefully.• Sometimes a supervisor is required to make a departmental

budget, another kind of single-use plan.• A budget is an operational plan for the income & expenditure

of money by the department for a given period. • Preparing the budget requires forecasting costs of labor, food

products, supplies, & so on.

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Day-by-Day PlanningPlanning the day’s work has top priority for the first-line supervisor.

•Purchasing may be planned daily, weekly, or monthly, depending on the department, type of enterprise, or location of suppliers. •Scheduling may be planned by the week & updated daily as necessary.

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Day-by-Day Planning

Some advice:•Plan before the day begins. Make it a regular routine.

•Established routines simplify planning but do not take its place entirely.

•Wherever possible, reduce risks by increasing predictability (more facts) & flexibility (more options).

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Schedules

There are 2 techniques used to help accomplish the goals:

•The Gantt chart is a bar graph diagram showing the activity & the timing of each activity.

The chart shows both the actual progress & the goal over a period of time.

•Program Evaluation & Review Technique (PERT), is a diagram of a sequence of activities to complete a project.

Shows the time for each activity & plans for activities that can be done ahead of time or simultaneously.

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Figure 3.5

A simple Gantt chart for planning a new menu.

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Figure 3.6

a PERT chart for a wedding function.

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Management by Goals (MPG)

• MPG = Planning goal setting.

• Employees jointly set goals for their departments and then plan strategies as to how to meet or exceed them.

• Progress toward the goals is monitored & rewards are given for outstanding performance.

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Management by Goals (MPG)

5 key ingredients in an MBG program:1. Goal specificity

2. Participation

3. Time limits

4. Who will do what

5. Performance feedback

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Planning for Change• Planning a change that affects the work must be done

carefully.• Although it is a single-use plan, it requires time &

thought because of the risks & consequences change involves.

• There are 2 sides to such planning:• To plan the change itself.• To plan how to deal with the effects of the change on the

workers.

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How Workers Respond to Change• Most associates resist change.• Change upsets the environment, routines, habits, &

relationships, it creates anxiety & insecurity in those affected.

• People also resist change if it means a loss for them: • less status, less desirable hours, separation from a friendly

co-worker, fewer tips, and more work.

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How to Deal with Resistance• The 1st essential for dealing with resistance to change

is a climate of open communication & trust.• Workers must feel free to express their feelings.• Don’t oversell the change.• Your people should feel that you want to make the

change as easy for them as possible.• Involve your workers in planning & carrying out the

change.• People will respond positively to being included in planning

changes that concern them.

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Planning Your Own TimeYour job requires that you spend the time in your day in several different ways:

•Planning, organizing, and communicating the day’s work.

•Responding to the immediate needs, demands and inquiries of others.

•Managing your people: hiring, training, coaching, etc.

•Dealing with crises, solving problems.

•Making reports, keeping records, enforcing rules

•Doing some of the work yourself if you are a supervisor.

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Planning Your Own TimeMajor wastes of time for supervisors include:

•Too much socializing

•Accepting drop-in visitors

•Allowing interruptions and distractions

•Not saying no often enough

•Poor organization of papers

•Procrastination and indecision

•Reading junk mail or checking e-mail

•Spending too much time online

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Organizing for Success• Long-range plans that will help you solve time problems will

also result in your unit running more efficiently & effectively.• Setting everything up to run efficiently is organizing. • Keeping it running efficiently & effectively is managing.

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Organizing for SuccessA well-organized & efficient unit is one in which:

• Lines of authority & responsibility are clearly drawn & observed.

• Jobs, procedures, & standards are clearly defined & followed.

• People know what to do & how to do it & they do it.• Standards of quality, quantity, & performance are

clearly set & met.

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Organizing for SuccessSet out to organize things better:

• Find out what you need to know about your own job.• Find out where poor organization is causing problems.

• Chain of command• Job content & procedures• Training• Evaluation & controls• Standing plans

• Plan what you will do to improve the organization & efficiency of your operation.

CHAPTER 3 Planning, Organizing, and Goal Setting Copyright © 2012 by John Wiley & Sons, Inc. All...

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