Industrial Management 141213

8/22/2019 Industrial Management 141213

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Industrial Management-

Terminology1.Industrial EngineeringDesign of a Manufacturing system withoptimum resources like man, materials,

money

2.Industrial Management

3.Busines Management4.Management

Achieving desired objective by planning, co-ordinating, and control


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Management-definitionsHenry Fayor(1916) To manage is to forcast and plan, to

organise, to command, to co-ordinate and control.

Peter F Drucker(1955)Management is concerned with the

systematic organisation of economic resources and its task

EFL Brech (1977) Management is a social process..processconsists of planing, control, co-ordination, motivation.

WF Glueck(1977) Management is effective utilisation of

human and material sources to achieve the enterprise

objectivesKoontz and Odonnel(1984) Managemnt is an operational

process that can be dissected to five essential managerial

functions. They are planning, organise, staffing, directing

and leading, and controlling.


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Imlportance of ManagementManagement is viewed as a very significant tool for the

following reasons

1.It facilitates the achievement of goals through limited

resources

2.It ensures smooth sailing in case of difficulties

3.It ensures continuity in the organisation

.Continuity is very important in th organisation.

Where there are no proper guidelines for

decision-making continuity cannot be

guaranteed.


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Concept of organisationOrganisation refers to social grouop desined to achieve

certain goals. Organisation involves creatilonof sttruture of

relationships among people working for th dsired results.

Argyris(1960) Organisations are intricate human strategirs

designed to ahieve certain objectives.Brech(1965) Organisation is the framework of the

management process.

Simon(1976) Orgnisations are systems of behaviour created

for better results.So organiation form must be a jointfuntion of human characteristis and nature of the task

environme nt.

Pugh(1990) Organisations are systems of interdependent

human beings.


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Significance of organisation1. It facilitates administration

2. It facilitates growth and diversification

3. It ensures effective utilisation of manpower

4. It simulates creativity

5. It ensures optimum utilisation of resources


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Functions of ManagementKoonz

1.Planning

2.Organising

3.Staffing

4.Directing

5.Leading6.Controlling

Luther Gullick---POSDCORB

Planning, Organising, Staffing, Directing,Coordinating.Reporting, Budgeting.


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Functions of Management1.Planning is the process determining the best course of

action to ahieve the givn goals2.Organising is the process of grouping the related

actilvities and assigining them to a manager with

authority to supervise it.

3.Staffing is the process whih includes recruitment,

selection, training, placement, appraisal, promotion.

And areer planning

4.Directing is the process of issuing orders and instructions

to guidde and teach the subordinates the proper

methods of work and ensuring that they perform theirjobs as planned.

5.Leading is a decisive function of the manageent in which

the management in which employees are led and

direted so that the Objectives are achieved.


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Functions of ManagementMotivating is the process of stimulating the employees

toperform more effectively using their abilities and fullpotential.

Communicating is the process of creating, transmitting, and

interpreting messages, ideas, facts, opinions and

feelings.

Controlling is the process of measuring the urrent

performance of the employee and assess whether the

given objectives are achieved or not. It involves

a.measuring the actual performance of the

employeeb.Comparing it with target c.Follow up action-corrective or remedial action for improving th

performance if necessary

.


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Systems approachSystem-Definition

It is a collection of interrelated part alled sub-systems,which constitute one whole unit. Systems approach

facilitates the study each of these parts in detail to have

a close understanding of the whole system.Human

body is often cited as best example.

Functions of management are

1.Interlinked

2.Interdependent

3. Complex and intertwined that each function ofmanagement can be found in other functions.

.


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Systems approach

Planning

PLANNING

Organising STAFFING

DirectingControlling


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EntrepreneurshipEntrepreneurship is thought to apply to maaging small

businesses.

Some authors expand the concept to large organisations.

Entreneurship is innovation, that is goal-oriented change toutilize the enterprise.s potential. As entrepreneurs,

managers try to improve the situation.

Managers must promote opportunities for entrepreneurs to

utilize their potential for innovation.

Entrepreneurs take personal risks ininitiating change, and theyexpect to be rewarded for it. The taking of reasonable risk

will at atimes result in failure, but this must b tolerated,.

Entrepreneurs need some degree of freedom to pursue their

ideas.


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Social Responsibiliy of Management

Social responsibility refers to the process whih includes several

activitiies raning from providing safe produts and services to giving a

portion of the companys profits to welfare organisations with a

philanthropi perspective.

Social responsibility is also viewed as conducting its operations in free and fair

manner by discharging its commitment towards different segments of its

operational environment such as shareholders, consumers, employees, creditors,

Government, competitors, and the general public as explained below.

Responsibility towards shareholders: Fair ROV. Regular information about working

Consumers:The amangement has to provide quality products and servilces to

customers at reasonable prices. It should consider customer-suggestions thhrough

customer satisfaction survey.


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Social Responsibiliy of Management

Employees:Provide good working conditions and motivate workers.

It is the responsibility of the management to recognie their unions

and respect thir right to assoiate with a union of their choice. The

managemnt should plan social security. Profit sharing. Growth and

development promotions, grievance settlement, employee welfare.Creditors: To repay the loans to financial institutions. The firm has

to liveup to the eithical and moral expectations of its creditors.

Governme nt: To pay the taxes and fair in its endeavours.

Competitors: The firm should always maintain the highest ethicl

tandards and maintain cordial relations with each competitor.

General public: Most of the companies maintain public raltations

departments exclusivel to maintain good relations with community


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LeadershipA leader is identified with the traits he posesess. A leader is characterised by his

vision, ability to inspire followers, communication skills, personality characteristicksSuch as chrisma, appearancemaneuvering skills, high energy levels, adaptability

Enthusiasm, silf-confidence, initiative and a strong capacity to covert the

unfavourable situation to a favourable one for the benefit of the orgnasition.

Leader Manager

Shapes orgnasitional/work culture Maintains organisational/workculture

Influences followers Directs subordinates

Focuses creativity and innovation Focuses on regulation and ensures

that the given system is adhered to

Prefers to take high risk Does not believe in risk taking.

Plays safe, may take moderate risksDoes not believe in positions, a position in A position is necessary

Organisation is not necessary for a leader

Driven bty values Driven by task and schedule

Does things effectively or does the right Does things efficiently

things


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LeadershipLeader Manager

Concerned with future Concerned with present

Focuses on people Focuses on systems and structure

Long-range perspective Short range pers[ective

Inspires trust Relies on control

Has followers has subordinates

Leadership Styles

1.Autocratic leadership

Leaders command followeres and expects compliance from them for all

instructions givn. Leaders are more dogmatic and positive. They lead by shis ability

to withhold or give rewards or punishments. Here no-suggestions from followersare entertained. And an almost top-down approach is seen.They are authoritarian

in their approach. The dilrect others. The do not allow any participation.

2.Democratic or participative leadership: Here leaders conult su bordinates and

involvre them in decision making. They believe in two way communication. They

listen to followers, try to facilitate decision making.


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Leadership2.Democratic leadership: Contd.

They are involved in the process of planning and execution of the task

Free-Rein Leadership: Free rein leader is called laissez-faire leader. Free-rein

leaders excercie little authorityfiy nd give maximum freedom to subordinates while

making decisions.The free-rein leader gives total freedom to the sobordinates to

set their own goals and also means of achieving.Here role of leader, here is to aid

of the operations of the follower.

Scientific Management PeriodHenry Fayol(1841-1925)

French Industrialist(Mining Engineer

Father of Modern Management

Fayol defined managerial functions as forecasting and planning, organising,commanding, co-ordinating, and controlling.

He identified six types of activities to be accomplished in every Industrial

Organisation

1.Technical(eg. Production)

2.Commercial(eg.buying and selling

3.Financial(Procuring capital)


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Henry Fayolsprinciple of

management4.Security(protecting property and people)5.Accounting(Maintaining account books)

6.Managerial(Eg. Planning and control)

Fayol identified 14 principles of management

1.Diviion of work

Here work is divided among themembers of the group based on the employyeesskillsand talents. It also provides an opprtunity to specialise in different problem areas.

2.Authority

It gives right or power to give orders. It must also be adequately supported by

responsibility

3.Discipline

Both the employer and employee should respect each other by observing the rules.4.Unity of comma nd

An employee should receive instructions from only one superior.

5.Unity of direction

Where the objectives are similar, action plans aslo should be similar.Similar activities

should be grouped together. Placed under one manager and there should be one atcion

plan


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management6.Subordination of individual interest to group interestGroup interests goals of organiation must previal any time over the individual interests

or personal goals

7.Remuneration

The wages and salaries must be fair and bring out the best possible commitmnt in the

employees to achieve the organisational goals.

8.Centralisation of authorityAuthority is said to be centralised when decision-making powers are retained in th top

level.

The degree of centralisation or decenttralisation is determined by the needs of the

company

9Scalar chain

It indicates how the auhority flows from top to bottom10.Order

It means keeping right man or a right thing in the right place

11.Equity

This implies that the dealingsd with employees should be so fair and so open that they

will reinforce thleir commitment to the organisation Be kind and fair to thm.


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management12.Stability of tenure of personnelThis indiacates avoioding frequent transfers of th employees much before they settle in

their jobs.

13Initiative

The staff should be encouragd to how initiativ, within the limits of authority and

discipline.

14.Espirit de corpsThis means team work implying that there is unity in strength.

Frederick Winslow Taylor(F.W.Taylor)(1841-1925)Shop floor woker-Shop superintendent

Father of scientific Mangement

Interested in the effieciency of working methods

Scientific Management

It is the process of applying scientific principles to management-related issues.

Elements of Scientific Management

1.Develop a scientific method for each operation replacing opinions or rule of thumb.

2.Define accurately in a scientific way th correct time and method for each job.

3.Develop a suitable organiation to make workers responsible.

4.Select and train the workers.


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F.W.TAYLORs elements of Scientific

management. 5.Convince the management that scientific approach is

better than arbitory methods of controlling workers, and

thus. They need to cooperate with workers for better results.

Taylors experiment in Bethelhem Steel worksTaylor reduced the weight of the shovel and incresed the

material handled from 25 tons to 30tons per day.Increase in wages by60% offered for increased output.

Reduction in cost by 50%

Reduction of workforce 400 to 140


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Maslows Hierarchy of needs

. Maslow -a psychologistHe identified human needs in the form of hierarchy,ascending

From the lowest to highest.He concluded that when one set of needs was

satisfied, this kind of need cannot be a motivator any more.

Physiological

safety

Affliation

Esteem

Self Actualisation

Maslows hierarchy of needs


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. Physiological needs:Include need for food,sleep,shelter and others.These are

basic needs and if these are not satisfied, one does not

thklink of needs at the higher level.

Safety needs:

Safety needs are also called securiy needs. These coverseurity, protection, job security, Safety of property, avilibility

of food or shelter on continuiing basis, and so on.

Affliation or acceptance needs: Man cannot livein isolation. He wants live in society as a member of society.

He wants to love nd loved by othrs . He feels great when

others recognise his efforts and accept hm as a member of

their group.Affliation or acceptance needs incoude desire to

seek or how affection and recognition need for

companionship


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. Esteem needsAfter satisfaction of acceptence need one wants to be

respeted nd garlanded. To satilsfy the esteem need, people

want to feel more prestigious, politiall yvery strong and

powerful, or enjoy better status.

Self

actualisation needs: These needs indicate the stong desire to achievesomething, particularly iln vilew of the potential one

has.When a person feels that he has achieved what he is

capable of achieving we can say he has achieved his self-

actualisaion need.


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Douglas McGregor-X,Ytheories

. Douglas Mcgregor presented two sets assumptions

manager make about the nature of their

employees.These sets are named as Theory X and

Theory Y.

Under theory X it ils assumed that1.Employees are inherently lazy

2.They require constant guidance and support

3.Sometimes they require coercion and control

4.Given an opportunity, they would like to avoid

responsibility

5.They do not show any abition but always seek security

To explain theory McGregor elaborated Taylors

observations about workers


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Douglas McGregor-X,Ytheories

. Theory Y focuses totally different set of assumptions

1.Some employees consider work as natural as play or

rest

2.These employees are capable of directing and

constrolling performance on their own.They are muchcommitted to the objectives of the organisation.

3.Higher rewards make these employees more

committed to organisation

4.Given an opportunity , they not only accept

responsibility but also look for opportunities to

outperform others.

5.Most of them are highly imaginative, creative and

display ingenuity in handling organisational issues.


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Matrix Organisation

. 1.Matrix organisation is also called Project organisation.

2.It is a combination of all relationships in the

organisation-Vertical, Horizontal, and diagonal

3.It provides high degree of operational freedom,

flexibility and adaptability for both the line and the staffmanagers in perfoming their roles.

4.The main objective of the matrix organisation is to

secure a higher degree of coordination than what is

possible from the conventional organisational structures

such as the line and staff.


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Matrix Organisation.

President

Vice PresidentProduction

VicePresident

MKTG

VicePresident

Finance

W

W

W

W W W

Project AManager

Project B

Manager


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Matrix Organisation

. Meerits Demerits

It offers operational freedom 1.It calls for greater degree

And flexibility of coordination.

2.It seeks to optimise the 2.It violates unity of

Utilisation of resources Command principle3.It focuses on end resuts 3.It may difficult to define

authority and

responsibility precisely


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Functional Organisation

. Departmentation

The process of classifying the organiation on the bassis of

departments or similar activities in it is called departmentation.

1.Thi s facilitates of planning and control at department leel,

2.It is possible to fix the responsibility on the departmntal head for

its targets.3.It offers scope to introduce division of labour and ensure

specialisation.

Functional departmentation

This is functional organisation structure.

Basic functions1.Marketing

2.Engineering

3.Production

4.Finance etc.


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Functional Organisation.

President

Vice PresidentProduction VicePresident

MKTG

VicePresident

Finance

Merits Departments1.Here, each function or process is 1.It delays decisions and

Focussed. Implementation

2.Specialisation enhances the quality 2.It calls for more coordination

Of decisions 3.It is expensive in terms of

3.It offers better control time and resources.


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Functional Organisation

. Departmentation

The process of classifying the organiation on the bassis of

departments or similar activities in it is called departmentation.

1.Thi s facilitates of planning and control at department leel,

2.It is possible to fix the responsibility on the departmntal head for

its targets.3.It offers scope to introduce division of labour and ensure

specialisation.

Functional departmentation

This is functional organisation structure.

Basic functions1.Marketing

2.Engineering

3.Production

4.Finance etc.

Documents

Industrial Management 141213