INDUSTRIAL MANAGEMENT UNIT:- 1

INTRODUCTION
Wherever a group activity is organised to achieve certain common objectives, management is need to direct, co-ordinate and integrate the individual activities of a group and secure team work to accomplish organizational objectives. It is only efficient management which helps in achieving the objectives of profit maximization or continuous growth and survival economically by effective utilization of the scarce resources. Management is a universal process in all organized economic activities. The management is an operative force in all complex organizations trying to achieve some stated objectives.

´ Management is a multi-purpose organ that manages business. we would not have management any more and we also would not have a business enterprise or an industrial society.FEW DEFINITIONS Mary Parker Follet. Taylor. Drucker in his book Practice of management. Peter F. . F. Kimball and Kimball.W. manages a manager and manages workers and workµ. ´ Management is knowing exactly what you want men to do and then seeing that they do it the best and cheapest waysµ. ´ management may be defined as the art of applying the economic principles that underline the control of men and materials in the enterprise under considerationµ. † As per him any one is omitted. ´ management is the art of getting things done through other peopleµ.

Managers uses the resources of org. ´ Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals. Management aims at achieving the organizations goals by ensuring effective use of resources. Henri Fayol the father of modern management thought. working together in groups. ´ Management is the process of planning.F. to achieve the goals.Koontz ans O·Donell.. ´ Management is to forecast and to plan. organizing. † † . to organise. James A. leading and controlling the efforts of organizational members and of using all other organization resources to achieve stated organization goalsµ. both physical as well as human. † † Management is a continuous process. can perform efficiently and effectively towards attainment of group goalsµ. to co-ordinate and to controlµ. Stoner. Several inter-related activities have to be performed by managers irrespective of their levels to achieve the desired goals. to command.

i. organizing.e. as social process:† † † † † The co-ordination of resources.e. and The fifth is its cyclical nature i. leading and controlling in order to accomplish stated objectives.COMPREHENSIVE DEFINITION Management is a social process involving co-ordination of human and material resources through the functions of planning. Third. . it must be purposeful managerial activity.e. There are 5 part to a definition as mgmt. an ongoing process which represents planning-action-control-re-planning cycle. the performance of managerial functions as means of achieving co-ordination. establishing the objective or purpose of management process. Fourth aspect is that management is a social process i. Second. staffing. it·s the art of getting things done through other people.

Efficiency:Effectiveness It refers to the completion of task on time. It is concerned with the end results Efficiency It refers to the completion of task with a minimum cost. † Basic elements:    Management is a process.e. . using less resources and getting maximum output.MODERN DEFINITION Management is the process of getting things done with the aim of achieving organizational objectives effectively and efficiently. It is concerned with the cost-benefit analysis i. Effectiveness Efficiency Organizational objectives Effectiveness Vs.

MANAGEMENT AS A PROCESS Management refers to a series of inter-related functions or elements to achieve stated objectives through the effective utilization of human and other resources. It involves:† † † † † Planning Organizing Staffing Directing or leading controlling Managerial Functions Objectives Planning Controlling Organising Directing Staffing Resource .

Management of the enterprise is represented by group of people which performs managerial functions for the accomplishment of its goals known as Managers. the term ¶Management· is used to imply the top management. . In practice.MANAGEMENT AS A GROUP Use of management term to denote a team or group of managers who runs the organization.

MANAGEMENT AS A PROFESSION Profession. . Ethical code of conduct for self-regulation. Essential requirements of a profession are:      Specialised field of knowledge Restricted entry based on education and training. Social recognition Professional fee. Representative of professional association. as an occupation backed by special body of knowledge and training and to which entry is regulated by representative body.

etc. suppliers. Service Responsibilities Managers aware of their social responsibilities towards various groups of the society like customers. Professional Associations of managers have been formed in different Association countries of the world and these prescribes standards of education and training for their members. govt. Specialised body of Supported by a well-defined body of knowledge that cant be knowledge taught and learned. . Courses like MBA and PGDM to create managers 3. 4. Entry based on Requires competent application of management principles. 5. 2. guided by service motive and enjoy higher status in the society. education and training techniques and skills. labor.MANAGEMENT CONSIDERED AS PROFESSION Professional Criteria Management 1. Need of formal training and education. Code of Ethics Associations like AIMA prescribes code of conduct for their members.

to prescribe professional standards and enforce them. No prescribed standard qualifications e. ICAI.g. . Doesn·t have an all India representative association like IMA. MBA and training programme to become a manager.NOT FULL PROFESSION It cant be fully regarded as a profession coz:† † † Entry to management profession is not restricted. etc. No ethical code of conduct for the managers as is the case with doctors and charted accountants.

It·s a distinct process. . Co-ordination is the soul of management. As a team of managers and system of authority. It·s universal. Efficient management of economic resources. Management is dynamic.CHARACTERISTICS Management is a purposeful activity. Management is a profession. Management is decision making.

Oliver Sheldon. MGMT.. ´ Management is a wider term which includes administrationµ. and Admt. Administration determines the objectives and policies of the enterprise.DIFFERENCE AND RELATIONSHIP B/W ADMINISTRATION. For effective functionality of Mgmt. The use of terms of Management and Administration has been a controversial issue. Management carries out these policies to achieve objectives. AND ORG. there must be proper structuring of the enterprise and this is known as organization. ´ Management is a lower level function and is concerned with the execution of policies laid down by administrationµ. . Brech and others.

Management is a generic term and includes administration. Top Management Middle Management Lower Management . Modern View point:.Both the terms are used interchangeably. whereas management is a lower level function British Viewpoint ( Breach and Kimball & Kimball):.The different view-point:† † † American Viewpoint ( Oliver Sheldon and William Spriegel ):Administration is a higher level function.

Associated with non-business org. such as government deptt. Administration Concerned with the formulation of objectives. etc. Authority to take strategic and decisions. socio-cultural org. Leading of Human Efforts 5. Levels in the organization 7. Operational authority to execute admt. Decision Making 8. Vice Chancellor. Decides who shall implement the administrative decisions. At relevant lower levels of management. Widely used in the business organization in the pvt. Refers to higher level of management. 9. public entp. Stage of Performance 4. . etc. Designations in Organizations General Manager. Director. Relates to decision. MD.. Commissioner. Minister. 2. plans and policies of the organization. Type of Authority 6. Determines what is to be done and when it is to be done. Registrar. Secretary. direction of operative personnel. Usage Actively concerned with the direction of Not directly concerned with the human efforts at operative level.. Controller. Doing function Concerned with the implementation of policies laid down by administration. Branch manager. Thinking function Concerned with the determination of major objectives. military org. Plant superintendent. Nature of Functions 3.making. Sector. etc... Definition Management Means getting the work done through & with others by leading and motivating them Refers to execution of decision.Basis 1. policy decisions.

there is a wide variation in their authorities and responsibilities. responsibilities. Levels of management. rights and authorities. Primary task. Largely due the differences in the levels of management. refers to a line of separation between different positions drawn with the view to distinguish each other in respect of their duties.LEVELS OF MANAGEMENT In an org. 3 levels of management commonly found in an organization:† † † Top management Middle management Lowest or supervisory management . getting the things done by other people. all those who are responsible for the work of others are usually known as managers.

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Middle Management:† † † † Concerned with the execution of the detailed policies and plans determined by the top management. Define aim. Provide dirction. to guide. Managing Directors.Top Management:† † † † † † Policy making level in the organization. Main functions:. policies and strategies to be pursued to achieve these objectives. to supervise. Responsible for the overall management of the organization. Consist of Board of Directors. Functions as link between top management and lower management. inaugurate the broad programs and approve major projects in the program. establish primary objectives.to plan. etc. Answerable to top management. Formulate plans of organisation and procedure. Chief Executives. Personnel Manager. to co-ordinate and exercise control over the lower level of management. .

guide. Inspector. Includes Foreman. Supervisors. Takes orders from the middle level and explains them to the workers. to exercise control in order to get the work done from the operating staff. Functions as to plan. Superintendent. etc. supervise. † † † † . Accredited with the responsibility of getting the work done and is made accountable to middle management.Lower Level or Supervisory Management:† Managers at this level function under the control and direction of the middle management.

training and placement of staff. Materials Manager and R & D Manager (a) Establishment of org. tools. Managing Directors. (a) Act as link between manager and workers (b) Direct supervision of workers (c) Arrangement of material. (c) Assigning duties to subordinates (d) Design operating policies and routines. General Manager and Seceretary FUNCTIONS (a) (b) (c) (d) Determine the objectives Establishing Policies Monitoring Performance. (d) Development of manpower by imparting training. Chief Executives.LEVELS Top Management REPRESENTED BY Board of Directors. Finance Manager. Upper Middle Mgmt. Judging the results. Departmental Heads Lower Management (a) Foreman (b) Supervisors Working (a) Workers (b) Service staff (c) Security Staff . Production Manager . (a) Carry out the work assigned to them Middle Management (a). (b) Selection. (e) Control over the subordinates (a) To plan details of operation (b) To co-operate with top management (c) Active co-ordination between various departments. facilities etc. Superintendents (b). Personnel Manager. for production.

Should establish cause and effect relationship. † Management:   . Should ensure predictable results. Use scientific techniques to collect and analyse data about human cause and effect Principles have universal applications in different type of org. A discipline should have following to be organized as science:     Should have a method of scientific enquiry. Principles should be verifiable. hypothesis. Has a systematized body of knowledge pertaining to its field. Contains concepts. Should have universal applications. theories and principles to explain cause and effect relationship between two or more factors. in different countries.MANAGEMENT AS SCIENCE AND ART Management as a Science:† † † Science is a systematized body of knowledge pertaining to a particular field of enquiry.

It is difficult to establish cause and effect relationship as in chemistry or biology.Management is not Perfect Science:† † † † Many of the principles of management are not supported by research. Its is mostly called as a Social Science. Applications of management principles depends upon situations and factors. . Deals with people at work and very difficult to predict their behavior accurately.

† Management as an Art:     . Art of management can be learnt and mastered through continuous practice. Science is to seek knowledge. Manager has to apply his personal skills to deal with variety of problems of the unit. Management is situational. It signifies practical knowledge It helps in achieving concrete results.Management as an Art:† † † Art signifies the application of knowledge and personal skills to bring about the desired results. Art is practiced. etc. Its creative in nature. principles. art is to apply knowledge. Management creative in nature as managers create new situations for further improvement. Features of Art:    It denotes personal skills. Management does involve the use of knowledge of management concepts. Science is learnt.

A manager must acquire the knowledge of science of art and learn to apply this knowledge.Management as both Science and Art:† † † † † Science as it has organized body of knowledge which contains certain universal truths. Science provides knowledge. art about application of knowledge. ´Management is the oldest of the art and the youngest of sciences.µ . Art as managing requires application of certain skills which are the personal possession of the manager.

APPROACHES TO MANAGEMENT Scientific Management Approach ( F. Games theory. Bernard) Human Relation Approach (Elton Mayo) Behavioral Science Approach ( Gantt and Munsterberg. Gantt. Douglas McGregor. Henry Fayol. System Approach ( Chester I. Henry L. Bernard) Contingency or Situational Approach as there is no one best way to handle any management problem. study of experience of managers. Lawler. . CPM.W. Break-even Analysis. Taylor.) Management Process Approach (W. etc. Frank and Lillian Gilbert. etc. Scott.G. Fredrick Herzberg. Operational Approach ( Koontz and O·Donnell ) Empirical Approach i. Abraham Maslow.e. Sayles. Victor Vroom. PERT. etc. Chester I.) Quantitative Approach like linear Programming.

INDUSTRIAL MANAGEMENT .

Industrial management focuses on design and management of system to achieve the objective of productivity improvement.Refers to the efforts of group of individuals towards achieving some common objectives and goals of an organization.e. ´Industrial Engineeringµ + ´ Managementµ. Industrial Management involves guidance. . equipment and energy through improved design. analysis and implementation in order to achieve common objectives of the organization. co-ordination and control or efforts of a group of individuals towards optimum utilization of materials. Combine 1 important domain i.

Included the process of effectively planning. Relate to planning. coordinating and controlling the resources required for production to produce specified product by specified methods. .Industrial Management thus:† † † Is the performance of the management activities with regards to selecting. by optimal utilization of resources. operating. controlling and updating production system. coordinating and controlling the production. designing.

Division of labor by skill. Porter W. Dantzig. Economic lot sizes for inventory control Human relations. W. Cummings. dividing planning and doing job Motion of study of jobs Scheduling techniques for employees. Williams & others A Charnes. cost accounting.F. the Howthrone studies Statistical sampling applied to quality control. on-linear and stochastic process Organizational Behavior. Deming and J.E. machines jobs in manf.W. Eckert G. Juran . assignment of jobs by skills. Harris Elton Mayo H. robotics.G. L. Taylor Frank B. Gilberth Henry L. Gantt F.W. inspection sampling plans Digital Computer Linear programming Mathematical programming.B.P. Roming John Mauchlly and J. continued study of people at work Quality and productivity applications from Japan.W. Cooper & others L.HISTORY AND DEVELOPMENT OF INDUSTRIAL MANAGEMENT Date 1776 1799 1832 1900 1900 1901 1915 1927 1931 1946 1947 1950 1960 1980 Contribution Specialization of labor in manufacturing Interchangeable parts. CAD-CAM Contributor Adam Smith Eli Whitney and others Charles Babbage F. basics of time study Scientific management time study and work study developed. Dodge & H.

M. Product designing Devising efficient methods of production Exploring reliable suppliers Fund management Plant designing Recruitment and training System co-ordination Leadership and motivation System control .APPLICATION OF I.

M. Management Functions Productivity Measurement Production Planning Scope of I.M.SCOPE OF I. Inventory Control & Management Quality Control Supply Chain Management .

It·s the certainty of being able to do better today then yesterday.µ Another widely acceptable definition. ´ Productivity is defined as a ratio of output to input of a productive system. It is the constant adaptation of economic and social life to changing conditions. of the constant improvement of that which exist. It is a mentality of progress. ´ Productivity is an attitude of mind. and continuously. it is the continual effort to apply new techniques and methods.µ . It is the faith in human progress. As per European Productivity Council.PRODUCTIVITY Implies that the changing productive efficiency with which the potential resources of a industry or country are effectively utilized in the production of goods and services during a given period of time.

2 variables used for measurement:† † Quantity of production ( output) Quantity of resources ( Input) By increasing production using same amount of resources. By reducing the amount of resources. while keeping the same production. By keeping the rate of increase of output more as compared to the rate of increase in input. Productivity can be increased:† † † .Productivity = Output/ Input It measures how well the resources are brought together in organization & utilized for accomplishing a set of objectives.

Productivity is a relative measure. . PRODUCTIVITY Production refers to the quantity or value of output of a particular goods or services produced in a given period of time by using a specified amount of inputs.PRODUCTION Vs. Production is a absolute term. Productivity typically expressed as a ratio. refers to the efficiency with which the inputs been utilized to obtain a given output.

Efficiency. Effectiveness and Productivity of the Production System .

 Productivity of Labor = Output/ Number of workers or Number of man-hours  Man Hours = No. of workers employed x No. and amount of capital employed. measured in money value.MEASURING PRODUCTIVITY Productivity = output/input i. O/I Factors Productivity:† Productivity of Labor:.  Productivity of capital= Output/ Capital Employed Productivity of Materials= Output/ Materials Productivity of Machine= Output/ Machine-hours worked Productivity of Land= Output/ Area of land used † Productivity of other factors:   .e.Ratio between output and labor input in the form of number of workers or man-hour work. † Productivity of Capital:.Ratio between output. of hours worked.

in air.µ Productivity of Land:† † † † † † † Natural Endowment Human Factors-knowledge. ´ the whole of the materials and forces which nature gives freely for man·s aid in land and water.Techniques of agriculture.Mechanization and automation. light and heat. Alternative uses Availability of irrigation Availability of capital .FACTORS OF PRODUCTION Primary factors of Production:† † † † Land Labor Capital Entrepreneur Land:. training and experience Type of organization of farm .As per Marshall. Regional location of farm .

As per Marshall. ´ By labor is meant the economic work of man .Labor:.