ELE4014

SUPERVISORY SKILLS
Supervisory Concept
What Is Control?
 Controlling – comparing the actual performance
with planned performance and taking corrective
action, if needed, to ensure to achieve the objectives

 THREE phases of control:

(1) Foreseeing the things that could go wrong and taking
preventive measures
(2) Monitoring or measuring performance
(3) Remedying performance problems that do occur
Important of Controls

“Things never go as planned.”

 Anything involving humans or put together by

humans is imperfect  supervisors must use
control to monitor progress and to make intelligent
adjustments as required
 Murphy’s Law

 Left to themselves, things always go from bad to worse.

 There’s never time to do it right, but always time to do it over.
 If anything can go wrong, it will.
 Of the things that can go wrong, the one that will is that which is
capable of the most possible damage.
 If you think nothing can go wrong, you have obviously overlook
something.
 Of those things that “cannot” go wrong, the most unlikely one is that
which will.
 Inside every large problem are many small problems struggling to get
out.
 Any object will fall so that it lands in the one spot where it is capable
of doing the most damage.
The Process of Control

(1) Establish (3) Compare

(2) Measure performance with
performance
performance standards and
standard
analyze deviations

(4) Take corrective

action.
If necessary
Step 1: Establish Performance Standards

 As a supervisor, you exercise control by comparing

performance to some standard or goal.

 Standard – a unit of measurement that can serve as

a reference point for evaluating result
Types of Standards
 Tangible standards – quite clear, concrete, specific,
and generally measurable
 Numerical standards – numbers
 Monetary standards – dollars and cents
 Physical standards – quality, durability, size, weight
 Time standards – speed

 Intangible standards – relate to human characteristics

that are difficult to measure
 Examples: attitude, high morale, ethics, and co-operation
Step 2: Measure Performance
(1) How often to measure performance
 Measurement takes time unless an automated system
is in place
(2) How to measure performance
(1) Personal observation
(2) Written or oral reports of subordinates
(3) Automatic methods
(4) Inspections, tests, or samples
Step 3: Compare Performance with Standards and
Analyze Deviations

 Failure to meet standards may result from a variety

of causes

 A supervisor needs to understand the reasons for

unexpected performance.
 Many supervisors hurriedly jump to conclusions about
the causes of problems; as a result, the corrective
action they take is ineffective
Step 4: Take Corrective Action If Necessary

 Examples of corrective actions a supervisor may take

include:
1. Making a decision to retain a new operator whose
performance has not progressed as expected
2. Shifting several employees from their normal jobs to help
meet a deadline on another job
3. Counselling an employee whose performance has recently
been below standard
4. Reprimanding an employee for failure to adhere to safety
rules
5. Shutting down a piece of equipment for maintenance after
defective output is traced to it
Principles of Supervisor Control
1. Preventive Controls
 Actions taken before or during the course of a job to
prevent things from going wrong
2. Management by Exception
 Focuses attention on the most critical control needs
and allows employees to handle most routine
deviations from the standards
Tips for Establishing Preventive Controls

1. Identify your department’s major goals

2. Identify those factors most crucial to accomplishing
your department’s major goals
 Such as properly running machinery and equipment,
availability of raw materials.
3. Determine the most likely problems
 Such as machine breakdowns or absence of key person
4. Develop a plan for preventing the problems
 May consider the input from employees
 Management by Exception
Set the
standard

Measure
performance

Does deviation
No exist? Yes

Take no action

Is deviation
No Yes
exceptional
Take no action
Analyze and Take
evaluate corrective
deviation action
Budgeting
 Budget – a list of all planned expenses and
revenues

 Purposes of budgeting are:

1. Provide a forecast of revenues and expenditures
2. Enable the actual financial operation of business to
be measured against the forecast
Standard Costing
 Direct labor
 Setting reasonable standards for labor costs demands the services
of work
 The costs should be remain stable

 Direct materials
 The quantity of material required for an operation

 Overheads
 Fixed costs – not fluctuate with the rate of production
 Variable costs – expenses change in proportion to the production
The Break-even Chart
End of Lecture
 Reference:
 “Supervisory Management, The Art of
Empowering and Developing People”, Donald C.
Mosley, South-Western Publishing Co