Industrial ManagementTerminology

1.Industrial Engineering Design of a Manufacturing system with optimum resources like man, materials, money
2.Industrial Management 3.Busines Management 4.Management Achieving desired objective by planning, coordinating, and control

Management-definitions
Henry 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..process consists of planing, control, co-ordination, motivation. WF Glueck(1977) Management is effective utilisation of human and material sources to achieve the enterprise objectives Koontz 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.

Imlportance of Management
Management 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.

Concept of organisation
Organisation 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 joint funtion of human characteristis and nature of the task environme nt. Pugh(1990) Organisations are systems of interdependent human beings.

Significance of organisation
1. 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

Functions of Management
Koonz 1.Planning 2.Organising 3.Staffing 4.Directing 5.Leading 6.Controlling Luther Gullick---POSDCORB Planning, Organising, Staffing, Directing,Coordinating. Reporting, Budgeting.

Functions of Management 1.Planning is the process determining the best course of

action to ahieve the givn goals 2.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 their jobs 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.

Functions of Management Motivating is the process of stimulating the employees

toperform more effectively using their abilities and full potential. 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 .

Systems approach System-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 of management can be found in other functions. .

Systems approach
Planning Organising STAFFING

PLANNING Controlling Directing

Entrepreneurship
Entrepreneurship is thought to apply to maaging small businesses. Some authors expand the concept to large organisations. Entreneurship is innovation, that is goal-oriented change to utilize 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 they expect 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.

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.

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

Leadership
A leader is identified with the traits he posesess. A leader is characterised by his vision, ability to inspire followers, communication skills, personality characteristicks Such 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 Shapes orgnasitional/work culture Influences followers Focuses creativity and innovation Prefers to take high risk Manager Maintains organisational/work culture Directs subordinates Focuses on regulation and ensures that the given system is adhered to Does not believe in risk taking. Plays safe, may take moderate risks A position is necessary Driven by task and schedule Does things efficiently

Does not believe in positions, a position in Organisation is not necessary for a leader Driven bty values Does things effectively or does the right things

Leadership
Leader Concerned with future Focuses on people Long-range perspective Inspires trust Has followers 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 followers are 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. Manager Concerned with present Focuses on systems and structure Short range pers[ective Relies on control has subordinates

Leadership 2.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 Period

Henry 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)

Henry Fayols principle of management

4.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 employyees skills and 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

Henry Fayols principle of management

6.Subordination of individual interest to group interest Group 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 authority Authority 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 bottom 10.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.

Henry Fayols principle of management

12.Stability of tenure of personnel This 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 corps This 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.

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 works

Taylor 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

Maslows Hierarchy of needs

. Maslow -a psychologist He 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. Self Actualisation Esteem Affliation safety Physiological

Maslows hierarchy of needs

Maslows Hierarchy of needs

.

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 cover seurity, protection, job security, Safety of property, avilibility of food or shelter on continuiing basis, and so on.

Affliation or acceptance needs: Man cannot live

in 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

Maslows Hierarchy of needs

.

Esteem needs
After 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 achieve
something, 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 selfactualisaion need.

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 that 1.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

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 much committed 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.

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 staff managers 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.

Matrix Organisation
.

President

Vice President Production

Vice President MKTG

Vice President Finance

Project A Manager

Project B Manager

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 principle 3.It focuses on end resuts 3.It may difficult to define authority and responsibility precisely

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 functions 1.Marketing 2.Engineering 3.Production 4.Finance etc.

Functional Organisation
.

President

Vice President Production

Vice President MKTG

Vice President Finance

Merits Departments 1.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.

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 functions 1.Marketing 2.Engineering 3.Production 4.Finance etc.