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Haery-BMFP 4512
1
INDUSTRIAL MANAGEMENTINDUSTRIAL MANAGEMENTAnd COSTAnd COST
Ir.Ir.HaeryHaerySihombingSihombing/IP/IP
PensyarahPelawatFakultiKejuruteraanPembuatanUniversitiTeknologiMalaysia Melaka
MANAGEMENTMANAGEMENT
Technique, practice or science of managing orTechnique, practice or science of managing orcontrolling; the skillful use of resources and time; thecontrolling; the skillful use of resources and time; thespecific treatment of a disease or disorder.specific treatment of a disease or disorder.
Function that organizes the execution of todayFunction that organizes the execution of today’ ’ ssbusiness.business.
The process of getting activities completed efficientlyThe process of getting activities completed efficientlyand effectively with and through other people.and effectively with and through other people.
Traditionally, the term "management" refers to the set of Traditionally, the term "management" refers to the set of activities, and often the group of people, involved in fouractivities, and often the group of people, involved in fourgeneral functions, including planning, organizing, leadinggeneral functions, including planning, organizing, leadingand coordinating activities. (Note that the four functionsand coordinating activities. (Note that the four functionsrecur throughout the organization and are highlyrecur throughout the organization and are highlyintegrated.)integrated.)
 
Some writers, teachers and practitioners assert thatSome writers, teachers and practitioners assert thatthe previous view is rather outmoded and thatthe previous view is rather outmoded and thatmanagement needs to focus more onmanagement needs to focus more on
leadership skills 
,,e.g., establishing vision and goals, communicating thee.g., establishing vision and goals, communicating thevision and goals, and guiding others to accomplishvision and goals, and guiding others to accomplishthem. They also assert that leadership must be morethem. They also assert that leadership must be morefacilitative, participative and empowering in howfacilitative, participative and empowering in howvisions and goals are established and carried out.visions and goals are established and carried out.Some people assert that this really isn't a change inSome people assert that this really isn't a change inthe management functions, rather it's rethe management functions, rather it's re--emphasizingemphasizingcertain aspects of management.certain aspects of management.
MANAGEMENTMANAGEMENT
Management functions:Management functions:
PlanningPlanning
OrganizingOrganizing
StaffingStaffing
DirectingDirecting
CoordinatingCoordinating
ReportingReporting
BudgetingBudgeting
MANAGEMENTMANAGEMENT
The people whoadminister acompany, createpolicies, and providethe support necessaryto implement theowners' businessobjectives
..
 
Haery-BMFP 4512
Management roles:Management roles:
Interpersonal rolesInterpersonal roles
Figurehead, Leader, LiaisonFigurehead, Leader, Liaison
Informational roles:Informational roles:
Monitor, Disseminator,Monitor, Disseminator,SpokespersonSpokesperson
Decisional rolesDecisional roles
Entrepreneur, DisturbanceEntrepreneur, Disturbancehandler, Resourcehandler, Resourceallocatorallocator, Negotiator, Negotiator
MANAGEMENTMANAGEMENT
What Is Management?What Is Management?
ManagementManagement
the process of coordinating work activities sothe process of coordinating work activities sothat they are completed efficiently andthat they are completed efficiently andeffectively with and through other peopleeffectively with and through other people
elements of definitionelements of definition
Process Process 
--represents ongoing functions orrepresents ongoing functions orprimary activities engaged in by managersprimary activities engaged in by managers
Coordinating Coordinating 
--distinguishes a managerialdistinguishes a managerialposition from a nonposition from a non--managerial onemanagerial one
What is Management?What is Management?
(cont.)(cont.)
Management (cont.)Management (cont.)
Efficiency Efficiency 
--getting the most output from thegetting the most output from theleast amount of inputsleast amount of inputs
 “ “doing things rightdoing things right” ” 
concerned with meansconcerned with means
Effectiveness Effectiveness 
--completing activities so thatcompleting activities so thatorganizational goals are attainedorganizational goals are attained
 “ “doing the right thingsdoing the right things” ” 
concerned with endsconcerned with ends
Efficiency and Effectiveness inEfficiency and Effectiveness inManagementManagement
Management Strives For:
Low resource waste
(
high efficiency
)
High goal attainment
(
high effectiveness
)
ResourceUsageEfficiencyEfficiency
(
Means
)
Goal AttainmentEffectiveness
(
Ends
)
Low WasteLow WasteHigh AttainmentHigh Attainment
 
Haery-BMFP 4512
Who Are Managers?Who Are Managers?
ManagerManager
someone who works with and through othersomeone who works with and through otherpeople by coordinating their work activities inpeople by coordinating their work activities inorder to accomplish organizational goalsorder to accomplish organizational goals
changing nature of organizations and work changing nature of organizations and work has blurred the clear lines of distinctionhas blurred the clear lines of distinctionbetween managers and nonbetween managers and non--managerialmanagerialemployeesemployees
What is Industrial Management?What is Industrial Management?
Industrial Management is concerned with theIndustrial Management is concerned with the
design, improvement, anddesign, improvement, andimplementaimplementa--tiontionof integrated systems of people,of integrated systems of people,material, information, equipment, andmaterial, information, equipment, andenergy.energy.
It draws upon specialized knowledgeIt draws upon specialized knowledgeand skills in the mathematical, physical, andand skills in the mathematical, physical, andsocial sciences together with the principles andsocial sciences together with the principles andmethods of engineering analysis and design tomethods of engineering analysis and design tospecify, predict, and evaluate the results to bespecify, predict, and evaluate the results to beobtained from such systems.obtained from such systems.
The Organization As An Open SystemThe Organization As An Open System
System
Transformation
Employee’s workactivitiesManagementactivitiesTechnology andoperations methods
OutputsInputsInputs
Raw materialsHuman resourcesCapitalTechnologyInformationProducts and servicesFinancial resultsInformationHuman results
EnvironmentEnvironment
Feedback Feedback 
 
What Is An Organization?What Is An Organization?
OrganizationOrganization
a deliberate arrangement of people to accomplisha deliberate arrangement of people to accomplishsome specific purposesome specific purpose
elements of definitionelements of definition
each organization has a distinct purposeeach organization has a distinct purpose
each organization is composed of peopleeach organization is composed of people
all organizations develop some deliberate structureall organizations develop some deliberate structure
todaytoday’ ’ s organizations have adopted:s organizations have adopted:
flexible work arrangementsflexible work arrangements
open communicationsopen communications
greater responsiveness to changesgreater responsiveness to changes
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