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INDUSTRIAL MANAGEMENT
FUNDAMENTALS
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After the lesson you may learn:

• Concept of Industry and Management
• Functions of a Manager
• Managers skills, levels, functions and work areas
• Management : Art or Science
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Industrial Management
Industrial management composed of two words.
>>Industry and
>> Management

Industry:
• An industry is a group of manufacturers or businesses
that produce a particular kind of goods or services.

• Any general business activity or commercial enterprise

that can be isolated from others.
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Levels of Industry:
The terms for each level originate from Latin words
referring to the numbers one to five.
Primary (first) Industry: Primary industries are those that
extract or produce raw materials from which useful items
can be made. Extraction of raw materials includes mining
activities, forestry, and fishing. Agriculture is also
considered a primary industry as it produces “raw
materials” that require further processing for human use.
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Levels of Industry:
• Secondary (second) Industry: Secondary industries are
those that change raw materials into usable products
through processing and manufacturing.
>>Bakeries that make flour into bread
>>factories that change metals and plastics into vehicles
They Add value to raw Material.
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Levels of Industry:
• Tertiary (third) Industry: Tertiary industries are those
that provide essential services and support to allow other
levels of industry to function.
>>service industries, this level includes transportation,
finance, utilities, education, retail, housing, medical, and
other services.
>>Since primary and secondary levels of industry cannot
function without these services, they are sometimes
referred to as “spin-off” industries.
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Levels of Industry:
• Quaternary (fourth) Industry: Quaternary industries are
those for the creation and transfer of information,
including research and training. Often called information
industries, this level has seen dramatic growth as a result
of advancements in technology and electronic display and
transmission of information.
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Levels of Industry:
• Quinary (fifth) Industry: Quinary industries are those
that control the industrial and government decision-
making processes.
>> includes industry executives and management and
bureaucrats and elected officials in government. Policies
and laws are made and implemented at this level.
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Management
• Management is the process where one or more persons
coordinate the activities of other persons to achieve
certain results.
• Management is the process of designing and maintaining
an environment in which individuals, working together in
groups, efficiently accomplish selected goals.
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Definition of Management
• Management refers to all those persons
who are concerned with management of
the organization. Such persons are given
responsibilities with authority to execute
policies of business.
•Management is the process where one
or more persons coordinate the activities
of other persons to achieve certain
results.
• Management is the art of getting things
done through and with people in formally
organized groups.
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Continue…….

• It defines aims and objectives of a business

• It set down plans, policies,procedures,programms,objectives of business

• It brings together various factors like: men, money, machine, methods,

market

• It makes the best possible use of all resources and factors of production

• It provides conditions in which persons who are associated with the

organization derive maximum benefit and satisfaction.

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Characteristics of Management
• Management Is Goal Oriented

• Management Integrates Human, Physical& Financial Recourses

• Management Is Continuous

• Management Is Time Oriented

• Management Is all Pervasive

• Management Is a Group Activity

• Management Is Linked With other Fields of Study

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Management Is Goal Oriented

• Management is highly goal
oriented activity.
• Success is measured in terms
of the achievements of
predetermined goals or
objectives.

• Example: If an organization
decides to provide better quality
products to their consumers, then
management directs the required
manpower and resources in the
proper direction to get the
expected results.
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Management Integrates Human, Physical

& Financial Resources
• In any organization the different resources used are humans,

machines, materials, financial assets ,buildings etc.

• Humans have to work with non human resources to perform

their jobs.

• Management Integrates human efforts to those non human

resources. It brings harmony among available resources.

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Management Is Continuous
• Management involves continuous
handling of problems and issues.

• It is an ongoing process.

• It includes the problem identification and

finding out the solution by taking
appropriate steps.

• Management is not only concerned with a

particular department like production or
human resources, it even involves
marketing, advertisement and so on
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Management Is Time Oriented

• Management has to always ensure that the

production schedules are met and the targets are
achieved.

• All targets are always set in accordance with the

time and the results are also measured in terms of
time.

• The management has to ensure that it manages

particular features properly and is always relates it
to the other features of management.
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Management Is all Pervasive

• Management is required in all types of organizations including
political, social, cultural or business as it assist and directs
various efforts towards a definite goal.

• Thus colleges, hospitals, business firms, clubs, government

organizations require management.
• Irrespective of the size or type of organization where more than
one person is involved needs management.
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Management Is a Group Activity

Management is concerned with the group
activity rather than an individual’s
performance.

The efforts are measured in terms of groups

to achieve predetermined goal or
objectives.

To accomplish the objectives of an

organization every individual from the
organization needs to work in the team
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Management Is Linked With Other Fields of

Study
1. Anthropology

2. Economics

3. Philosophy

4. Political Science

5. Psychology

6. Sociology
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Functions of Management

 Planning
 Organizing
 Directing or Leading
 Controlling

 https://www.youtube.com/watch?v=9Ir70kcHf-w
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Planning

- Planning means what has to be done to achieve a particular

goal. In other words we can say that it is a set of exact steps to
be taken to accomplish an organization’s goal.

Example: If company decides to boost the sale. The necessary

steps could be inventory management, advertisement or increase
in sales staff etc. Once the proper plan gets ready manager has
to execute it step by step.
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• Goals
• Objectives
• Strategy
• Policy
• Procedure
• Rules
• Program
• Method
• Budget
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Continue…

• Planning is highly goal oriented

• Planning is a continuous processes
• Planning is pervasive

“ Planning is the preparation of tomorrow and it is an activity

that allows managers to determine what they want and how they
will achieve it ”
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Organizing
• It is distributing or allocating
the activities of business among
different personnel
• The manager has to divide the
work in activities and assign
tasks to various groups of people
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Organizing

• Includes determining what tasks are to be done,

who is to do them, how the tasks are to be
grouped, who reports to whom, and at what level
decisions are made.

• Organizing involves determining how activities

and resources are to be grouped.
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Purpose Of Organizing
• Match The Employees To The Task

• Communicate Properly

• Transfer Authority
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Directing
• Directing includes the work
guiding and supervising
subordinates.

• Each and every manager is

responsible for his / her
department and he/ she should
provide necessary guidelines
to his/ her subordinates.
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Importance Of Directing
• It Initiates Actions

• It Integrates Efforts

• Efficient Utilization Of Resources

• Coping With The Changes

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Controlling
• Controlling means to check the
functioning of all the tasks.

• It is following up what is being planned.

• Controlling consist of basic steps

visualization and setting standards of
performance.

• Comparing actual work with these

standards (planned work) and taking
corrective steps whenever deviations are
there.
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Steps In Controlling Functions

1. Set Standards To Measure Performance
2. Measure Real Performance
e.g. Sales growth is target of organization. The organization
should have a means of gathering and reporting sales data
3. Contrast Performance With The Standards
4. Take Corrective Actions
e.g. In a productivity or quality department workers and
managers often empowered to evaluate their own work
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Functions of Management
There are five primary functions of management. These
are: Planning, Organizing, Staffing, Directing, Controlling.

Planning: It involves defining an organization’s goals,

establishing an overall strategy for achieving these goals,
and developing comprehensive hierarchy of plans to
integrate and coordinate activities. Decision-making is a
part of planning which involves selecting a course of action
from a set of alternatives. Therefore planning is the act of
deciding in advance what to do in the future.
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Functions of management
• Organizing: It includes determining what tasks are to be
done, who is to do them, how the tasks are to be grouped,
who reports to whom, and at what level decisions are
made. Specifically, organizing involves determining how
activities and resources are to be grouped.
• Directing: The basic function office management is
motivating, commanding, leading and activating people.
The willing and effective cooperation of employees for the
attainment of organizational goals is possible through
proper direction. This direction is important managerial
function in that it helps in building sound industrial and
human relations besides securing employee contribution.
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Functions of management
• Controlling: To ensure the things are going, as they
should, management must monitor the organization’s
performance. Actual performance must be compared with
the prescribed goals. The process of monitoring,
comparing, and correcting is what we mean by controlling
function.
• Staffing: Staffing is the function of hiring and retaining a
suitable work force for the enterprise both managerial as
well as non-managerial levels. It involves the processing
of recruiting, training, developing, compensating and
evaluating employees and maintaining the workforce with
proper incentives and motivations.
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Functions of management
• Coordinating: In an organization there are varieties of
activities having different natures. If these activities performs
independently than the common goal could not be achieved.
Therefore to unite these different activities to achieve the
common goal coordination becomes very essential.
Coordination helps to integrate the activities together to
achieve the common goal through effective communication and
support.
• Reporting: Reports are the written statements of the office
activities which are submitted to the supervisor by their
subordinates. The managers are responsible for keeping track
of these activities and preparing the report.
• Budgeting: Budgets are the estimates of expected expenses
and income which are expressed in the monetary terms. When
the manager of the office involves in planning the expenses
and income of the organization, he is said to be involved in
budgeting.
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Manager
A person responsible for controlling or administering an
organization or group of staff.
Managers at different levels: Large organizations
typically have a number of levels of management; the most
common view considers three basic levels: top, middle and
first line managers.

• Top managers
• Middle managers
• First line managers
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Manager

Top managers
> relatively small group of executives
> manage the overall organization
> establish its goals, overall strategy, and operating policies
> represent the organization in external environment
> bear major responsibilities
Middle managers
> largest group of manager
> primarily responsible for implementing the policies and plans
> supervise and coordinate the activities of lower level managers.

First Line managers

> coordinate and supervise the activities of operating employees
> spend a large proportion of their time supervising subordinates
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Manager
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Role of Top Level Managers

• Sets the goals, objectives, policies etc

• Approving annual budgets

• Setting the salaries

• Responsible for shareholders for the performance of business

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Middle Level Management : The Role

• Top level managers set goals & plans and according to that
middle level managers make plan
• Middle level managers execute plans
• They give training to the lower level managers
• Middle level managers interpret and explain policies from top
level to lower level
• Take a care about departmental activity
• They take feedbacks from low level managers and present them
to top level managers which help in decision making process
• They motivate and inspires the lower level managers
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Lower Level Management : The Role

• Guide and instruct workers for day to day activities
• They are responsible for quality and quantity of
production
• Take a feedback from employees and present the
employees problems, suggestions in front of middle
level managers
• They motivates and inspire the workers
• They provides practical skills and training to workers
• Making a list and arrangement of machine, tools, raw
materials
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Manager
Managers at different areas of organizations: Managers
work in various areas within the organization which may
include marketing, financial, operation, human resource,
administrative and many more.
• Marketing managers: Marketing manager works in areas
related to the marketing function- getting consumers and
clients to buy the organization’s product or services.
These areas include new product development,
promotion, and distribution.
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Manager
• Financial managers: Financial managers deal primarily
with an organization’s financial resources. They are
responsible for the activities such as accounting, cash
management, and investments.
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Manager
• Operations managers: Operations managers are
concerned with creating and managing the systems that
create an organization’s products and services. Typical
responsibility of operation managers includes production
control, inventory control, quality control, plant layout, and
site selection.
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Manager
• Human resource manager: Human resource managers
are responsible for hiring and developing employees.
They are typically involved in human resource planning,
recruiting and selecting employees, training and
development, designing compensation and benefit
systems, formulating performance appraisal systems, and
discharging low performing and problem employees.
• Administrative managers: Administrative or general
managers are not associated with any particular
management sphere. Administrative managers tend to be
generalists; they have some basic familiarity with all
functional areas of management rather than specialized
training in any one area.
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Managerial Skills
Managers need a number of skills if they are to succeed. The
most fundamental management skills are technical, Human,
Conceptual, Design and time management skill.
• Technical skill: Technical skills are the skills necessary to
accomplish or understand the specific kind of work being done in
an organization. Project engineers, physicians, and accountants
all have the technical skills. They get this skill from education
and experience. Technical skills are especially important for first
line managers. (Mechanics work with tools, so their supervisor
should have the ability to teach them how to use the tools)
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Managerial Skills
• Human Skill: For obvious reasons the manger needs the
interpersonal skills- the ability to communicate with,
understand, and motivate individuals and groups. A
manager must be able to work with subordinates, peers,
and those at top level also. They should also be able to
work with suppliers, creditors, customers, investors and
other outsiders.
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Managerial Skills
• Conceptual skills: Conceptual skills depend on the
manger’s ability to think in the abstract. Managers need
the mental capacity to understand the overall workings of
organization and its environment, to grasp how all the
parts of the organizations fit together, and to view the
organization in holistic manner.
• Design Skill: Managers must have the valuable skill of
being able to design a workable situation to the problem
in the light of the realities they face. Design skill is the
ability to solve problems in ways that will benefit the
enterprise.
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Managerial Skills
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Management: An art or science

The management is the oldest art and the youngest
science

Management as an art: It has been propounded that

managers are born not made. It is an inherent trait and it
cannot be learned by formal training or knowledge. It is
similar to being a painter or poet. There are a number of
cases in which some people have become successful
without having been specifically educated for the
profession. They have depended upon intuition and
experience rather than formal education.
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Management: An art or science

Management as a science: Management may not be an
exact science, but the application of scientific methods to
management problems has proved to be effective.
Mathematical techniques have been successfully applied in
problems involving inventories, service facilities,
assignment of jobs to machines for optimal results, optimal
allocation of scarce and limited resources to different
projects etc.
The argument of management being an art was rejected by
scientific management pioneers like Fredrick W. Taylor,
Henry Gantt, Henry Feyol , Frank and Lilian Gilbreth
who believed that the management process could be
translated into a set of methodologies and techniques
which can be learned and communicated.
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Management: An art or science

In the opinion of a Russian management expert, D
Gvishiani ‘the managerial activity will always remain a
creative field, a field of art even though it is becoming
more and more scientific’.

Hope you will all be good managers

in the future!
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Thank You