Industrial Management

Lecture – 5, 6 and 7

Unit- 2

Discuss

• Management

• Nature and characteristics

• Importance

• Managerial Functions(PODSCo)

Planning

It is a mental process requiring the use of intellectual foresight and sound judgment.

• Determination of objectives

• Forecasting

• Formulation of policies and programmes

• Preparation of schedules and procedures

Organizing

It determines the activities to be done, grouping the activities, creating the structure of authority.

• Determine nature of activities

Staffing

• HR planning

• Deciding source of recruitment

• Receiving applications

• Testing and interviewing

• Final Selection

• Orientation

• Training

Directing

• Leadership

• Communication

• Motivation

• Supervision

Controlling

• Setting up of standards

• Measuring performance

• Comparing performance with standards

• Taking corrective action

Coordination

• “Function of manager” by henry fayol

• “First principle of organization” by James Mooney

• “Vital phase of controlling” by Ralph C Davis

“Coordination is the orderly arrangement of group efforts to provide unity of action in pursuit of a common purpose”

Significance of Coordination

• Better Results

• E E

• Better utilization of resources

• KEEP ADDING THEM ON

Finally

PLANNING

ORGANISING

STAFFING

DIRECTING

CONTROLLING

CO-ORDINATION

LEVELS OF MANAGEMENT

Board of directors,

chief Executives

Departmental Heads Regional managers

Plant Managers

Supervisors, Section Officers

TOP LEVEL

MIDDLE

LOWER

Top Level

• Laying down Board Objectives

• Taking Decisions

• Reviewing work

• Measure the performances of middle level

• Coordination

Middle Level

• Planning for execution of the policies provided by top level

• Laying down guidelines

• Analyzing achievements of lower level

• Reports to top level

Lower Level

• To organize the activities

• To supervise the workers

• To provide training to workers

• To communicate problems of workers to above levels

Basic steps involved in

• PODSCo

Steps in Planning

Setting Objectives

Follow up and Review

Securing Cooperation

Formulation of Derivative Plans

Developing Premises

Identifying Alternatives

Choice of the best

Alternative

Requirements of a good plan

• Simple

• It must be Specific rather general

• Logical and practical

• Flexible

• Stable

• Complete and Integrated

Importance of organization

• Specialization

• Role Clarity

• Clear lines of Authority

• Avoidance of duplication of efforts

• Adaptation of newer Technology

Steps involved in Organizing

• Division of Activities

• Creation of Jobs

• Assignment of Jobs (Operations)

• Establishing the Authority and Responsibility

Authority and Responsibility

AUTHORITY

• Meaning- Right of a manager to command his subordinates

• Origin- Arises because of formal position

• Direction Flow- Flow Downward direction

RESPONSIBILITY

• Duty to perform the task

• Superior – subordinate relationship

• Upward direction

Types of organization

Formal

• Created to achieve Predetermined objectives

• Official hierarchy

• Stable

Informal

• No predetermined objectives

• Based on relations or voluntary

• Not Stable i.e does not last long

Principles of Management

• Henry Fayol, J.D Mooney, F.W. Taylor, Max Weber and many other management thinkers have derived certain generalizations from their work experience.

• These generalizations are the principles of management.

“Principle is a basic statement that provides understanding and guide thinking and action.”

Nature of Management Principles

• General statements

• Dynamic Guidelines

• Based on situation

• Universal

Henry Fayol’s Principles of Management

14 Principles.

I - Initiative

SEE – Stability, Equity and “Esprit de corps”

DADUU - Discipline, Authority and Responsibility, Division of work, Unity of command and Unity of direction.

CROSS – Centralization, Remuneration, Order, Subordination of Individual Interest to General Interest and Scalar chain

1. Initiative2. Stability3. Equity 4. “Esprit de corps”5. Discipline6. Authority and Responsibility7. Division of work8. Unity of command9. Unity of direction.10. Centralization11. Remuneration12. Order13. Subordination of Individual Interest to General Interest14. Scalar chain

Assignment - 1Q.1 Write short notes on• Six sigma• System Approach• Contingency Approach• Nature of Production FunctionQ.2 What is the difference between Management and Administration.Q.3 Explain main characteristics of labor. What factors affect the productivity of labor.Q.4 Describe the position of a minor as a partner.Q.5 What considerations should be kept in mind while choosing a form of business organization.