MANAGEMENT by Ashish Tiwari

PLANNING & ORGANIZING AT SUPERVISORY LEVEL

14 MARKS

Tiwari Sir
SUPERVISOR
 The supervisor is a part of the management team and he holds the designation of first line managers.
 His primary job is to manage the workers at operative level of management.

Tiwari Sir
MANUFACTURING ASSEMBLY LINE

Tiwari Sir
MANUFACTURING PROCESS

Tiwari Sir
SUPERVISOR
 Supervisor is a manager who represents lower level of management (i.e operational level) and he holds the
designation of first line managers.
 The supervisor is a person who instructs, directs and controls the workers in the performance of their duties.
 Supervisor is a manager who serves as a link between top management and workers.
 Supervisor primary job is to manage the workers at operative level of management.
 Authority of supervisor
1. Give instructions and/or orders to subordinates.
2. Be held responsible for the Team work .

Tiwari Sir
ROLE OF SUPERVISOR
 Supervisor is a front-line manager. He is responsible for getting the work done from workers.
 The job of a supervisor is mainly focused on supervision which involves activities like instructing, monitoring,
guiding, and observing the workers and to ensure weather they are performing their duties with respect to
work assigned. So, he plays very important role in the organizational functioning.
 Supervisor connect the workers to the management and vice.
 His role is to provide proper sitting place, ventilation, adequate lighting, drinking water facilities to worker.
Thus, supervisor is responsible for providing healthy and hygienic condition to the workers

Tiwari Sir
2.1.1 PLANNING DEFINITIONS
 Planning is the first primary management function.
 Planning is the forecasts of the future
 Planning can be defined as thinking in advance
what to do, how to do it, who is to do it and when it is to be done.
 Planning helps in bridging the gap between where we are and where we want to go. It links present with
future.

Tiwari Sir
2.1.2 IMPORTANCE OF PLANNING
 Planning is a primary function
 To minimize risk and uncertainty
 Planning focus on achieving objectives
 To facilitate control
 To increases organization effectiveness

Tiwari Sir
2.1.4 PLANNING AT SUPERVISORY LEVEL
 Supervisor is a front-line manager. He is responsible for getting the work done from workers.
 The job of a supervisor is mainly focused on supervision which involves activities like instructing, monitoring,
guiding, and observing the workers and to ensure weather they are performing their duties with respect to
work assigned. So, he plays very important role in the organizational functioning.
 Supervisor connect the workers to the management and vice.
 His role is to provide proper sitting place, ventilation, adequate lighting, drinking water facilities to worker.
Thus, supervisor is responsible for providing healthy and hygienic condition to the workers

Tiwari Sir
 2.1.4 PLANNING AT SUPERVISORY LEVEL
 Supervisor represents Lower level of management. He is responsible for getting the work done from workers

Tiwari Sir
 2.1.4 PLANNING AT SUPERVISORY LEVEL
Types of plans
 Operational plans : An operational plan is one that supervisor uses to accomplish his or her job
responsibilities. Supervisors, team leaders, and facilitators develop operational plans to support tactical
plans. For example, “Manufacturing 200 bearing product ”.Operational plans can be a single‐use plan or an
ongoing plan.
1. Single‐use plans apply to activities that do not repeat.
2. Continuing or ongoing plans are usually made once and retain their value over a period of years while
undergoing periodic revisions and updates. These are recurring plans.

 Tactical plans - Middle level manager's responsibility to take the strategic plan and identify specific tactical
actions.

 Strategic Plans The strategic plans are made at top level of management. In strategic plans ,we establish long
term objectives or vision or mission, define future decisions.

 Contingency plans Contingency planning involves identifying alternative courses of action that can be
implemented if and when the original plan is not adequate due to changing circumstances.
.
Tiwari Sir
2.2 PLANNING ACTIVITIES, DETAILING AND FOLLOWING EACH STEPS

 2.2.1 Functions of planning by supervisor

 2.2.2 Steps in Planning and detailing activities

Tiwari Sir
2.2.1 FUNCTIONS OF PLANNING BY SUPERVISOR
Role and Responsibilities of supervisor while planning activities
 Planning and Organizing
 Provision of working condition
 Linking pin
 Controlling
 Reporting
 Enforcing Discipline
 Grievance handling
 Leadership and Guidance
 Motivation

Tiwari Sir
2.2.2 STEPS IN PLANNING AND DETAILING ACTIVITIES

1. Establishing goals/objectives
2. Establishing planning premises
3. Deciding the planning period
4. Identification of alternatives
5. Evaluation and selection of alternative
6. Developing derivative/supportive plans
7. Measuring and controlling the process

Tiwari Sir
2.1.3 HIERARCHY OF PLANS
 Mission and Purpose
 Objective
 Strategies
 Policies
 Procedures
 Methods
 Rules
 Programme
 Budgets

Tiwari Sir
2.3 PRESCRIBING STANDARD FORMS OF VARIOUS ACTIVITIES
 Supervisor plays vital role in carrying short term plans of organization. For that supervisor must deals with
available resources, manpower by keeping customer expectations in mind.
 The planning can be machine wise planning, manpower planning, material flow, appropriate method for
implementation or any measurement.
 So, to do all these activities supervisor requires a systematic documentation. Thus, prescribed form helps the
supervisor and his team to carry out tasks very efficiently. It also brings standardization in the work, enable
right decision making, effective utilization of available resources, establishing link between authority and
responsibility, clarity in the work etc.
 Few standard forms for various activities are as below:
1. Material Requisition Form
2. Raw material received report
3. Raw material inter-processing form
4. Job description
5. Machine Planning
6. Issue of Tools Tiwari Sir
2.3 PRESCRIBING STANDARD FORMS OF VARIOUS ACTIVITIES
1. Material Requisition Form

• This form is used to procure material from supplier to factory so that production will not be stopped.

• The requirement of raw material is communicated to supplier through factory.

• The material requisition form is shown as below

Tiwari Sir
2.3 PRESCRIBING STANDARD FORMS OF VARIOUS ACTIVITIES
2. Raw material received report
• This form is used to keep record of material received.
• It helps supervisor to keep information about weather all received material is as per the order given. If quality
of material is not good then such material can be returned back to the supplier.
• The form of material received report is as below

Tiwari Sir
2.3 PRESCRIBING STANDARD FORMS OF VARIOUS ACTIVITIES
3. Raw material inter-processing form
• This form can be used for efficient management of raw material.
• This form can be used to handover particular raw material from one person to another person or one process
to another process. Keeping record of material transferring can help supervisor to determine at which place
raw material need to be ordered. It will help to maintain sufficient level of inventory for continuous production.
• The form can be show as below

Tiwari Sir
2.3 PRESCRIBING STANDARD FORMS OF VARIOUS ACTIVITIES
4. Job Description
• This form will give the detail idea about the job to be performed by the work
• It is also called as work assignment sheet.
• With this form the worker will be able to know details about job, his duties and responsibilities while
performing job, do’s and don’s while performing job and any other specific information related with it.
• The format of job description is as below,

Tiwari Sir
2.3 PRESCRIBING STANDARD FORMS OF VARIOUS ACTIVITIES
5. Machine Planning
• This form can be used to guide person which job is to be performed on which machine at which time and for
how much time.
• It can include details like technical information of machine, capacity of machine, time for which we can use
machine, type of work which we can do on particular machine.
• The sample form for machine planning is shown as below

Tiwari Sir
2.3 PRESCRIBING STANDARD FORMS OF VARIOUS ACTIVITIES
5. Issue of Tools
• This form can be used for issuing of work tools.
• It will help supervisor to identify record of usage of tools. He would be able to locate tool if the same tool is
required for other work at different place.
• It also guides him to have maintenance of over utilized tool.
• Format of issue of tools is as shown below,

Tiwari Sir
2.4 BUDGETING FOR MATERIAL AND MANPOWER
 Budgeting is the managerial process of budget planning and preparation.
 Budgeting is the process of designing , implementing and operating budgets

 Budget is a financial plan for a defined period.

 Budget is an estimation of income (revenue) and expenses over a specified future period of time.
.

Tiwari Sir
2.4 BUDGETING FOR MATERIAL AND MANPOWER
 Budget is an estimate or plan, expressed in quantitative terms. It is a financial plan for a defined period.
 Budget is an estimation of income (revenue) and expenses over a specified future period of time.
 The process of preparation of budgets is called budgeting.
 Budgeting is the managerial process of budget planning and preparation.
 Budgeting is the process of designing , implementing and operating budgets
.

Tiwari Sir
2.4 BUDGETING FOR MATERIAL AND MANPOWER
A sales budget is management's estimation of sales for a future financial period

Sale Budget

Tiwari Sir
2.4 BUDGETING FOR MATERIAL AND MANPOWER
A production budget is the amount of product that will have to be manufactured or produced,
It depends upon sale budget
Sale Budget

Production Budget

Tiwari Sir
2.4 BUDGETING FOR MATERIAL AND MANPOWER
Direct Materials Budget , direct labor budget and overhead budget is a part of the production budget only. All three
collectively form the company’s production budget.

Sale Budget

Production Budget

Material Budget Man Power Budget Overhead Budget

Tiwari Sir
2.4 BUDGETING FOR MATERIAL AND MANPOWER
A cash budget is an estimation of the cash flows of a business over a specific period of time

Sale Budget

Production Budget

Material Budget Man Power Budget Overhead Budget

Cash Budget

Tiwari Sir
2.4 BUDGETING FOR MATERIAL AND MANPOWER
Master budget includes all of the lower-level budgets

Sale Budget

Production Budget

Material Budget Man Power Budget Overhead Budget

Cash Budget

Tiwari Sir
BUDGETING FOR MATERIAL AND MANPOWER
Material Budget
 The material budget is used to plan how much raw material we need to have available to meet production
 Material budgeting refers to the procedure of preparing material or purchase budget in terms of quantity and money value
of materials to be procured in a specified time period.
 Material resource planning (MRP) and Just in Time (JIT) methods can also be used for preparing material budget.
 Material to be purchased can be determined using following formula,
.Materials Purchased = Materials Required + Ending Inventory – Beginning Inventory

MRP is Material Requirement Planning tries to keep correct raw materials, in the correct quantity, and at the correct time.
Tiwari Sir
MATERIAL BUDGET
Materials Purchased = Materials Required + Ending Inventory – Beginning Inventory

Tiwari Sir
MATERIAL BUDGET
Basic concept of Material Budgeting
Following are the basic concept of Material Budgeting
Direct Materials Budget: A budget that shows how much quantity of direct raw material is required according to the production
target level for a particular time period is known as Direct Materials Budget .Direct Materials Budget gives an idea of the
quantity of direct material required for meeting the production needs. It is a part of the company’s Material Requirement
Planning (MRP).
Material Consumption Budget: The material consumption budget is based on the volume of production. Material consumption
per
. unit of output aids in preparing material consumption budget for various kinds of materials to be used by the output.
Material Purchase Budget: This is required by both manufacturing and merchandising companies. For instance, manufacturing
companies measures the quantity of materials to be purchased through production volume and inventory requirement. This is
determined by considering the consumption for budgeted production volumes and opening and closing inventory requirement.

(MRP)Material Requirement Planning tries to keep correct raw materials, in the correct quantity, and at the correct
time. This saves costs and enhances efficiency. It also helps the company in avoiding any production disruption and
bottlenecks due to materials

Tiwari Sir
MATERIAL BUDGET
Factors affecting Materials Budget
Below are the some of the factors that affect material budgeting:
 Production Budget should be considered the foremost factor in preparing such budget.
 Material cost is also equally important. purchasing the material only when its prices are lowest is considered.
 There are certain materials that are prone to seasonal fluctuations. And therefore, it is recommended to procure them only
when they are readily available in the market.
. The store position and the stock of existing material are also key considerations. If your business does not have ample
space, you should not be buying the stock in advance.
 Management policy, rules and regulations on JIT (Just-In-Time) inventory, inventory level fixation and EOQ (Equal Order
Quantity) are also major influencers to materials budgeting

 The Just-In-Time (JIT) concept is a inventory management or manufacturing workflow methodology aimed at
reducing flow times and costs within production systems and the distribution of materials. The prime goal of JIT is
to have minimum or for zero inventories across the organization and its supply chain.
 Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs
such as holding costs, shortage costs, and order costs.
Tiwari Sir
MATERIAL BUDGET
 Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs
such as holding costs, shortage costs, and order costs.

Tiwari Sir
MANPOWER BUDGET
 According to Gorden MacBeath, manpower planning involves two stages. First stage is concerned with the detailed “planning of manpower
requirements for all types and levels of employees throughout the period of the plan,” and the second stage is concerned with “planning of
manpower supplies to provide the organization with the right types of people from all sources to meet the planned requirements.”
 Manpower Planning & Budgeting serves as the foundation for managing an organization’s Human Resources.
 Manpower budgeting is enables organizations to plan strategically to meet current and future manpower needs and prevents
unnecessary surprises in maintaining steady state manpower.
 The formation of manpower budget is dependent on production budget.
 Effects of ignoring manpower budget are
.
1. Labour Shortage
2. Hire Workers at Higher Salary
3. Layoff Workers at Awkward times
4. Insecurity, Low morale among workers

Tiwari Sir
MANPOWER BUDGET
How to prepare Manpower Budget?
a. Record projected units to be produced (from Production Budget).
b. Multiply by the Labor Cost per Unit to calculate the Total Labor Cost
We can appoint number of workers based on number of units produced in particular month. Suppose if one
worker produces average 100 units of job per month and the demand for one month is 1000 then we will need
10 workers to complete that work. So, accordance with forecast we can appoint workers at right time at right
.place. It will also help supervisor to make job descriptions in regard to completing that particular work.

Production Target – 1000 units per month

1 worker - 100 units per month
Ans – 10 workers will need to compete that 1000 units job.
Monthly salary per worker – 8000Rs.
Ans – Total manpower cost : Rs. 80000

Tiwari Sir
MANPOWER BUDGET

Tiwari Sir
MOrganizing

Unit 2
Planning & organizing
at supervisory level
ORGANIZING AT SUPERVISORY LEVEL
 Organizing is the function of management which is followed after planning. Once person have
plans, they should organize the necessary resources for accomplish of desired goals.
 In organizing the synchronization of all available resources takes place. These resources can
be physical resources, human resources, financial resources, information resources,
organizational resources.
 Assigning the work and granting the authority to attain goals are two important elements in
organizing at supervisor level.
 Organizing is a grouping of activities together.
 Organizing is the process of identifying, bringing the required resources together such as
men, material, machine, method and money grouping and arranging them properly for
achieving the objectives.
ORGANIZING AT SUPERVISORY LEVEL
Organizing at supervisory level can be in the form of
 Developing job descriptions,
 Designating tasks,
 Defining responsibilities of the workers with the specific skill sets needed to
complete the tasks,
 Fixing locations of equipment,
 Collecting data for developing of budgets,
 Arrangement of workstations and storage areas,
 Resolving conflict among subordinates
IMPORTANCE OF ORGANIZING

1. It establishes pattern of relationship by giving duties and responsibilities to the individual

and groups.
2. It helps to achieve organizational goal by facilitating good administration. It helps for
optimum use of resources like man, machinery & material
3. It provides adequate communication.
4. It helps in effective use of available manpower.
5. It helps to initiates growth and diversification.
6. It helps in good human treatment of employees.
7. It stimulates creativity among workers.
8. It helps to minimize wastage, confusion, corruption and inefficiencies.
PROCESS OF ORGANIZING PHYSICAL RESOURCES

1. Determination of Objectives
2. Deciding various activities
3. Grouping of activities
4. Assignment of responsibilities
5. Delegation of authority
6. Providing physical facilities
and proper environment
PRINCIPLES OF ORGANIZING
Following principles can be used for effective organization of resources,
1. Principle of division of work
2. Principle of specialization
3. Principle of delegation/authority/responsibility
4. Principle of span of control
5. Principle of unity of command
6. Principle of unity of direction
7. Principle of balance
8. Principle of co-ordination
9. Principle of exception
EFFECTIVE DELEGATION

Delegation is a process in which the authority and powers are divided and shared amongst the
subordinates.
A supervisor alone cannot perform all the tasks assigned to him. To complete the targets, the
supervisor should delegate authority.
Delegation of authority is the base of superior-subordinate relationship. For achieving delegation, a
supervisor has to work in a system and has to perform following steps: -
1. Assignment of Duties
2. Granting of authority
3. Creating Responsibility and Accountability
ELEMENTS OF DELEGATION

Authority can be defined as the power and right of a person,

 to use and allocate the resources efficiently,
 to take decisions
 to give orders while achieving the organizational objectives.

Responsibility It is the duty of the person to complete the task assigned to him. A person who is
given the responsibility should ensure that he completes the tasks assigned to him

Accountability
It means giving explanations for any variance in the actual performance from the expectations set.
Accountability means being answerable for the end result.
For example, if ’X’ is given a task with sufficient authority, and ‘X’ delegates this task to ,’Y’ and asks
him to ensure that task is done well, responsibility rest with ’Y’ but accountability still rest with ‘X’.
SPAN OF CONTROL / SUPERVISION DURING SUPERVISING
Span of control is a span of supervision which depicts the number of employees that can be handled
& controlled effectively by a single manager. There are two types of span of control.
1. Wide span of control (Flat Organization) According to this span, one person can effectively and
efficiently handle a large number of subordinates at one time. A single supervisor oversees a large
number of subordinates such as twenty or more.

2. Narrow span of control (Tall Organization) According to this span, one person can effectively and
efficiently handle a small number of subordinates at one time. A single supervisor oversees a few
number of subordinates such as six subordinates. This means that the supervisor has more contact
with his/her subordinates therefore tight supervision
SPAN OF CONTROL / SUPERVISION DURING SUPERVISING

Factors influencing Span of Control

 Managerial abilities- Wide span is helpful where managers are capable, qualified and experienced.
 Competence of subordinates- Where the subordinates are capable and competent and their
understanding levels are proper
 Nature of work- If the work is of repetitive nature, wide span of supervision is more helpful. On the
other hand, if work requires mental skill or craftsmanship, tight control and supervision is required
in which narrow span is more helpful.
 Delegation of authority- When the work is delegated to lower levels in an efficient and proper way,
confusions are less and congeniality of the environment can be maintained. In such cases, wide
span of control is suitable and the supervisors can manage and control large number of sub-
ordinates at one time.
 Degree of decentralization- Decentralization is done in order to achieve specialization in which
authority is shared by managers at different levels
MATCHING HUMAN NEED WITH JOB NEEDS
According to Abraham Maslow, individuals are motivated by unsatisfied needs. As each of these
needs is significantly satisfied, it drives and forces the next need to emerge. Maslow broken down the
mans need hierarchy into five specific areas i.e.
1. Physiological Needs - basic needs food, shelter
2. Safety Needs - Basic security, stability, protection
3. Social needs – appreciation, respect
4. Social esteem Needs - status, reputation, fame
5. Self-actualization Needs –,
GROUP DYNAMIC
 Establishing relationship among persons working in group or Group Dynamics.
 Two or more person forms a group. The group with common objective or predefined purpose
forms a team which has force of relationship among them.
 Group dynamics is a process in which people interact with each other in smaller groups to
perform the assigned work.
 Every group creates the group leader or leaders. The suggestions are always welcomed in a
group so that the work can be performed more efficiently.
 Forming such groups at workplace provides good human relationship at workplace as persons in
a group share their ideas, problems, suggestions and solutions
 Types of Groups Every organization has two types of groups on the basis of its structuring.
1. Formal Groups - is generally formed for carrying out a specific work to achieve predetermined goal of the
organization.
2. Informal Groups - Informal groups are formed within a formal organizational structure. Informal groups are
created due to socio-psychological forces exists at the workplace.
TYPES OF GROUP