You are on page 1of 4

Industrial Management

Chapter # 2

Industrial Engineering
Industrial engineering is a concerned with the design, improvement and installation of
integrated (industrial) system of man , material, and equipment drawing upon speculated
knowledge and skill in the mathematical, physical and social sciences either with the
principle co-ordinate methods of engineering analysis and design to specify, predict and
evaluate the result to be obtained from such system.(Industrial engineering and
management sciences by S.C Sharma pp1)

It is complex of continuous co-ordinate activity which, any undertaking is conducted.
These activities relate to the optimum use of human effort and satisfaction to the
• Management is important because every human organization requires effective
management to be successful Colleges, Hospital, Cricket team, basket ball team,
armies, even families all required good management.
• The fabric of our lives is held together by organization our society of
organization. We are surrounded by them and dependent upon them.
• Managers and organization go together land in land. The need for anger arises as
the organization exists. The skills which managers do their jobs effect the quality
of our organization experiences. Thus the effectiveness of our organization should
also lead to the consult for the effective management. Managers can be thought of
crucial resource of organization.
• The success of organization lies in the decision made by a manager. The wise
decision well in time decision taken by a manager is key to success for
Industrial Management :
It is the effective and efficient utilization of human labor , money, machinery and raw
materials in the industrial to achieve maximum production(out put)..
• What ever may be nature of the organization ,it can not run successfully unless
there is some one to manage its affairs ? Management is crucial to direct the
activities of the organization to that human and material resources may be
efficiently used to achieve the desired objective. It is management which plans,
organization, co-ordinates and controls the affairs of the organization.
• Management bring the human and material resources machines, material and
money together and motivates the people in the achievement of the objectives of
the organization.
• An organization can not survive without management. It is the management
which make the people realizes the objective of the organization and direct then
efforts towards their achievement.
Industrial organization:
What is an organization:-
An organization is a large group of persons untied to achieve any task. It may be defined
as feeling of human, physical and spiritual resources it order to achieve any pre-
determined task. It can be defined as process of establishing the pattern of relationship by
assigning duties and responsibilities to each dependent, section, group and individual of
an enterprise______ clearly demarcating, the objective of the concern.
An organization is a structured process in which persons interact______ for
* Five facts are that common to all organization.
 An organization always include persons.
 These persons are involved with one another in same way-that is, they are
 These interaction can always be ordered or described by some of which are the
reasons for their action. Each person expects that participation in the organization
will help to achieve personal objectives.
 These interactions can also help to achieve compatible joint objectives, perhaps
different from, but related, personal objectives.
Elements of organization;
There are two kinds of elements common to all organization.
 Core element
 Working element
Core element: (persons)
Persons are the essential core elements in organizations. The success or failure of any
organization is basically determined by the quality of interactions among the core
elements its members. As soon as organization comes in to being, the core element its
working elements. The working elements determine the quality of interactions.
Working element: (resources)
Members interacting make an organization but the working elements make it effective or
* the working elements of an organization consists of its human resources, its members
abilities and their personal influence, its non human resources-free and economic good,
third, its conceptual resources of a particular group of its members of an organization
employ their abilities and influence______ in the effective utilization of resources depend
upon how well the managers of the organization under stand and perform their jobs.
* the function of management is to establish the organization and use it to attain the
general objectives of an enterprise according to the major polices laid down by the
administration. The function of the administration is to determine the general objective
and major polices of the enterprise and to establish in suitable organization structure to
achieve the same management which is also an essential decision making activity deals
with the art and science of directing and controlling human activities. So that established
objectives of an enterprise may be attained in accordance with the accepted policies, that
is to say, administration defines the goal, management strive to achieve it through the
help of organization.

Types of organizations
There are three type if organizations
1. Formal Organization
2. Non formal Organization
3. Informal Organization
The Formal Organization
The formal organization is a system of well defined job each bearing definite measure of
authority , responsibility and accountability to enable the people of enterprise _______ to
work more effectively together in accomplishing their objective and organizational goals.
In the formal organization the work that each individual does is part of a larger pattern,
co-ordination proceeds according to prescribed pattern in the formal organization. It sets
up boundaries and path way which must be followed to achieve the objectives. The
formal organization of industry has three clear-cut characteristics.
1) It is deliberately impersonal
2) It is based on ideal relationship
3) It is based on; Hypothesis of the nature of man.
The first two imply that each member of the organization is supposed to react towards the
other’s not in personal terms of like or dislike, in terms of the functions they have to
perform in the whole, the place they occupy in the hierarchy ______. The third
characteristic____ is based on rubble hypothesis loads to claim that organization not only
avoids complications has the place further advantage of being flexible.
1. A formal organization is deliberately planned, it is more predictable_______.
2. Formal organization facilitates lying-down _______of objectives and policies.
3. It has unlimited scope for expansion.
4. There are clear cut bunds of jurisdiction ________.
5. The standard of performance can be established precisely and with exactness.

There are certain weak point in the theory of formal organization. Of course co-
ordination is always likely to be a source of difficulty in modern factory. The problem of
co-ordination is due to communication. Next workers have no social contact with each
other. Under these circumstance a various circle of grieve-ness may develop. Problem
due to conflict between staff and line organization is another difficult with the formal
Types of Formal Organization
1. Line organization
2. Line and staff organization
3. Functional organization
Line organization:
In this type of organization, the position having authority and responsibility as
accountability for achieving objectives are arranged in linear relationship. Line
organization means position arranged in a line. Line position are arranged in a chain in
the follow, which requires understanding of the nature of line authority.

A typical line organization chart is shown below.

Board of Directors

General Managers

Plant Manager-1 Plant Managers-2

Plant Suptd
Plant Suptd Marketing Suptd Maintenance

Foreman Office Suptd Accountant

Operation Staff
(Workers) Clerical Staff
Clerical Staff

Operation Staff

Prepaid By: Muhammad Kashif Jamil

B.Tech. (pass) 08MR-07