Management:

Management can be defined as an act of getting things done though and with people for achieving
desired goals and objectives using available resources efficiently and effectively.

Industry:

Industry can be defined as a place where the means of production like plant and equipment, labour and
management are utilized to convert raw materials into products which have greater value in use than the original
raw materials. Industry can be defined as a group of productive enterprises or organizations that produce
or supply goods, services, or sources of income.
Industrial Management is the branch of management that is concerned with the creation
and management of systems that incorporate people, materials and energy in productive ways. The
branch of engineering that deals with the creation and management of systems that integrate people and
materials and energy in productive ways (achieving goals and objectives) .
Industrial management is the organizational process that includes strategic planning, setting;
objectives, managing resources, deploying the human and financial assets needed to achieve objectives,
and measuring results. ... Management functions are not limited to managers and supervisors. The most
widely accepted are functions of management given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.
Need:

 To ensure maximum output with minimum cost of production. •

To ensure that activities of different individuals are coordinated to attain the common purpose in the factory. •

Goods are produced and delivered on the promised dates. •

Goods are manufactured in strict specification of customer’s orders. •

Proper accounting, reporting and controlling the operations in the factory. •

To prevent wastage and losses. •

Quality products. • Utilization of full capacity of the factory. • Innovation

Importance of Industrial Management

 Meet challenges of change

 Accomplish group goals
 Reduces Costs
 Establishes Sound Organization
 Optimum Utilization of Resources
 Establishes Equilibrium
 Essentials for Prosperity of Society
 Effective utilization of group goals
 The smooth functioning of business
 Identifying and developing resources
 Integrate efforts of  various groups
Meet challenges of change
Change is the only constant and management helps to meet up these challenges effectively.

Accomplish group goals

Management arranges factors of production, assembles, and organizes the resources and all the resources are
integrated to achieve goals. All the group efforts are directed to the predetermined goals. The objective of
the organization once defined correctly, there would be no wastage of time efforts and money. The
disorganized resources of machines, men, and effort are converted into useful resources with the help of
Management. All these resources are directed, coordinated, and controlled in a way that the organization
works towards achieving the goals.

Reduces Costs

Proper planning gives maximum results with minimum output. Management uses the available financial,
human, and physical resources in such a way that the best results are obtained. This helps in cost reduction.

Establishes Sound Organization

No overlapping of efforts because of smooth and coordinated functions. Sound Organization structure is one
of the objectives of management. It Establishes Authority and responsibility i.e. the tasks and roles are
preassigned. Who is accountable to whom, Who can give instructions to whom, Who are superiors & Who
are subordinates. Management recruits the right people with the right skill set, training, and qualification.
All the jobs and tasks should be cleared to everyone.

Establishes Equilibrium 

Establishing an equilibrium enables the organization to survive in a changing environment. It keeps updated
with the changing environment. With the external change in the environment, the coordination of the
organization should also be changed. To ensure that the organization adapts to the change in the market and
needs of the society. Essential for the growth and survival of the organization.

Essentials for Prosperity of Society

Good Management makes tough tasks easier. Avoiding wastage, spoilage, and breakage of scarce

resources. Efficient management efforts lead to better economic production, which eventually leads to the
welfare of people and society. It improves the standard of living. It increases the profit of the organization
which leads to better wages of the employee and eventually contributing to the society by maximizing the
output with minimum input cost creating employment opportunities increasing income in hands.
Organization comes with new products and researches beneficial for society.

Increasing the Efficiency of factors of Production

with the proper utilization of all the available resources, the efficiency can be increased exponentially.
Avoiding/reducing wastage, spoilage, and breakage of all kinds contribute a lot in saving time, money and
efforts. Money, time, and efforts are essential for the growth and development of an industry.
Maximum Prosperity for Employer & Employees

Management ensures the coordination and smooth function of the enterprise. This in return provides
maximum benefits to the employees. Good working condition, Stable, and suitable wage system. Incentives
to the employee and higher profits for the employer on the other hand.

 Human betterment & Social Justice

Management acts as an important tool for the betterment and upliftment of society. Increased number of
employment and productivity contributes to society. It ensures a better standard of living of the society and
provides justices with its uniform policies.

The main Objectives of Industrial Management are:

 Achieving Maximum results with minimum efforts

 Increasing the Efficiency of factors of Production
 Maximum Prosperity for Employer & Employees
 Human betterment & Social Justice
 Obtain harmony in group action
 Achieve co-operation of human beings, rather than chaotic situations
 Work for maximum output
 Proper utilization of resources
 Planning for future
 Mobilizing best talent

Functions of Management:

Each function blends into the other & each affects the performance of others.
Planning
It is the basic function of management. It deals with chalking out a future course of action & deciding in advance
the most appropriate course of actions for achievement of pre-determined goals. “Planning is deciding in
advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A
plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is
determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways
& means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of
human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding
confusion, uncertainties, risks, wastages etc.

Organizing
It is the process of bringing together physical, financial and human resources and developing productive
relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a
business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”.
To organize a business involves determining & providing human and non-human resources to the organizational
structure. Organizing as a process involves:

 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.

Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater
importance in the recent years due to advancement of technology, increase in size of business, complexity of
human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes
and round pegs in round holes. According to Kootz & O’Donnell, “Managerial function of staffing involves
manning the organization structure through proper and effective selection, appraisal & development of
personnel to fill the roles designed un the structure”. Staffing involves:

 Manpower Planning (estimating man power in terms of searching, choose the person and giving the
right place).
 Recruitment, Selection & Placement.
 Training & Development.
 Remuneration.
  Performance Appraisal.
 Promotions & Transfer.

Directing
It is that part of managerial function which actuates the organizational methods to work efficiently for
achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the
action of people because planning, organizing and staffing are the mere preparations for doing the work.
Direction is that inert-personnel aspect of management which deals directly with influencing, guiding,
supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following
elements:


 Supervision
 Motivation
 Leadership
 Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing
work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative,
monetary, non-monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager guides and influences the work of subordinates in
desired direction.

Communications- is the process of passing information, experience, opinion etc from one person to another. It
is a bridge of understanding.

Controlling
It implies measurement of accomplishment against the standards and correction of deviation if any to ensure
achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in
conformities with the standards. An efficient system of control helps to predict deviations before they actually
occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is
being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to
Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in
order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”.
Therefore controlling has following steps:

 Establishment of standard performance.

 Measurement of actual performance.
 Comparison of actual performance with the standards and finding out deviation if any.
 Corrective action.

The three levels of Management are -

 1. Top-level Management

Top-level Management consists of the senior-most executives and decision-makers in an

organization. Every member of the top Management is responsible for the direction and growth of
the company. Sound top-level management in a company basically defines the success and
future of a company.

 Chief Executive Officer

 Chief Marketing Officer
 Chief Sales Officer
 Chief Technology Officer
 President
 Managing Director
 Vice-president
 Chief Operating Officer
 And a few other designations

The right set of people in the top-management can make or break an organization. We would also
like to enlighten you about the functions that these executives perform within an Organization –

 Top-level Management is responsible for strategizing and making plans for the business. They form the
company’s vision and mission, which helps every employee and the customers understand the fundamentals of
every business.
 They design the functions and responsibilities of middle-level Management. They will assign tasks and
goals for the employees to follow.
 Top-level Management drafts the policy of the company
 They manage the finance and all obligations of the company. In total, they are solely responsible for the
survival and growth of the Organization as a whole.

2. Middle-level Management

Middle-level Management consists of the heads of various departments in an organization. These

executives are responsible for communication between top-level Management and the lower level
of Management. They handle most of the executions and micro-management within an
organization.

Some of the standard designation titles of mid-level management executives are –

 Marketing Manager
 Purchase Head
 Sales Manager
 Operations Manager
 Branch Manager
 Finance Manager
 And similar other designations

There is a basic set of functions and responsibilities which are handled by middle-level executives.
Primary of these are –

 Communicate the policies and the mission set by top-level Management. They are responsible for
handling all the communications and maintaining a healthy business environment in the office.
 Micro-manage the tasks performed by every member of the lower-level Management. They are
responsible for all the coordination between teams.
 They are responsible for the performance of lower-level executives. Motivating and encouraging
employees to work efficiently is a crucial responsibility.
 Middle-level Management handles all the recruitments and allocations within a team. They hire the
employees and manage company resources for optimum use.

 3. Operational/Lower level Management

Operational level management is responsible for managing the coordination between the
operative workforce and middle-level Management. They micromanage specific tasks to operative
 workers and manage teams. Operational level management has very few decision making powers
and generally execute orders of the middle-level management.

Some of the standard designations of operational level management executives are –

 Supervisor
 Foreman
 Clerk
 Junior Managers
 Inspectors
 Sub-department executives

Just like all other levels of Management, their role is critical in the success of an organization. The
difference lies in the fact that they do not make critical decisions, and their efficiency and
performance depend on middle-level Management. Some of the essential roles played by
operational level management are –

 The most critical responsibility of operational level management is to communicate the challenges and
grievances of operative workers.
 They are responsible for training the workers and micro-managing their progress.
 They are responsible for maintaining healthy working conditions for workers and improving the efficiency
of tasks. Operational level workers make sure that all guidelines of operations are followed in the company.
 These executives manage company resources and also work towards the optimum utilization of these
resources.
 They help the middle-level Management in assessing employee performance and all other roles of the
human resources department in the company.