INDUSTRIAL MANAGEMENT

INDUSTRIAL ENGINEERING & MANAGEMENT
Prepared by Mr.A.S.S.A.V. PRASAD. M.TECH
Assistant Professor in Mechanical Engineering
addanki.prasad52@gmail.com
9581960843 INTRODUCTION
INTRODUCTION
CONCEPTS OF INDUSTRIAL MANAGEMENT (I.M):
MANAGEMENT: - Every organization whether business, social, religious or political is basically a
group of people formed to achieve some common objectives. A Business Organization too is a group of
people formed and working together to achieve common goals or objectives.
MEANING OF MANAGEMENT:- It carries different meanings depending on the context it is
used. It is variously described as a “DISCIPLINE” a “PROCESS” and a “GROUP OF PEOPLE”
vested with the authority to make decisions. Simply “MANAGEMENT” is what a manager does.
Management is the brain of an enterprise. Management is an essential part of any group activity,
Management plans, Organizes, Co-Ordinates, directs, motivates and controls the activities
MEANING OF MANAGEMENT: - Management is the art of getting things done through and
with the people formally organized groups.
CHARACTERISITCS OF MANAGEMENT:
Management is a
 Group Activity
 Factor of Production
 Social Process
 Dynamic Function
 An art as well as Science
 Multi-Disciplinary
 Purposeful or Goal Oriented
 Distinct Process
 System of Authority.
 In-Tangaible
 Universal in Character
 Situational in Nature.

IMPORTANCE OF MANAGEMENT:
 Achievement of group of objectives.
 Meets the challenge of changes.
 Effective utilization of Business.
 Resource Development.
 Management directs the Organization.
 Help to Stability.
 Effective Utilization of Resources.
 Accomplishment of group of goals.
 Effective functioning of Business.
 Sound Organization Structure.
 Integrate various Interests.
 Innovation
FUNCTIONS OF MANAGEMENT:
Management is considered as a process and identification of the basic functions is necessary.
These functions describe the job of Management. The basic functions of Management are
 Planning
 Controlling
 Organizing
 Co-Ordinating
 Staffing
 Decision Making
 Directing
 Representation.

PLANNING:
 It is a process of thinking and deciding in advance for the failure action.
 Planning is a determination of a course of action to achieve the desired results.
 It means deciding in advance what is to be done, how and where it is to be done, who
will do it and how results are to be evaluated.
 Planning aims at optimum Utilization of Human and material resources, eliminating the
wastage of time, money and materials, to achieve the objectives of the enterprise.
EXAMPLE: - If a refrigerator making concern does not plan in advance-How many
refrigerators and of what capacities are to be made before the summer starts and thus it does not
procure necessary material, tools, supplies and personnel in time, it cannot reach the production
targets and hence may not run profitably.
CONTROLLING:
 It is a process that measures the current performance and guides towards it towards some
pre-determined goal.
 It is necessary in order to ensure that everything is carried out as per plan.
 Controlling is continuous process which measures the progress of operations verifies
their conformity with the pre-determined plan and takes corrective action if required.
As Explained above controlling process..
(i) Sets Standards
(ii) Measures job performance &
(iii) Takes corrective action if required.
Planning is the beginning of Management Process & Controlling is the final stage.

ORGANIZING:
 Organizing is the process by which the structure and allocation of jobs is determined.
 It is the arrangement of Men, Materials, Machines and money for the execution of a
product.
 Organizing involves determining the activities to be done, grouping the activities,
assigning the grouped activities to the individuals, and creating a structure of authority
and responsible among the people to achieve the objective of enterprise.
CO-ORDINATING:
 It means achieving harmony and integration of individual effort towards the
accomplishment of company objectives.
 Co-Ordination involves making plans that co-ordinate activities of sub-ordinates regulate
their activities on the job and regulate their communication.
STAFFING:
 It is a process of recruiting, selecting and training the right people to fulfil the
requirements of an enterprise.
 It is a continuous process, because new jobs may be created in the enterprise and existing
employees may leave the concern.

DIRECTING:
It is a process by which actual performance of sub-ordinates is guided towards common goals of
the enterprise.
Directing includes
(i) Issuing of orders and instructions to the sub ordinates.
(ii) Guiding and teaching the sub ordinates the proper method of doing work and
(iii) Supervising the sub ordinates to ensure that these works conforms the plans.
Thus directing involves the following functions
(a) Leadership
(b) Communication
(c) Motivation
(d) Supervision
LEADERSHIP: It is the quality of the managers to inspire the sub ordinates, get maximum
cooperation from them and guide their activities to achieve the common objective.
COMMUNICATION: It is the process by which ideas; instructions and information are
transmitted, received and understood by others for the purpose of effecting desired results. It is a
two-way process; it may be verbal or written orders.
MOTIVATION: It means inspiring the sob-ordinates to work and co-operate for the
achievement of common objectives. This is done by providing financial and Non-financial
incentives to the sub ordinates.
SUPERVISION: This is an essential element of direction process supervision is necessary in
order to ensure
(i) That the work is going on as per the plan established and
(ii) That the workers are doing as they were directed to do.
DECISION MAKING:
 Decision making is very important function right from the stage of planning till the stage
of actual production and marketing.
 The decision makes every function a grand success or miserable failure.

SCIENTIFIC MANAGEMENT
The term scientific management contains two words namely “SCIENTIFIC” and
“MANAGEMENT". The term management means getting the things done through others and
scientific means systematic, analytical and objective approach.
F.W.Taylor (1856-1915) popularly known as father of scientific management, was the first man
to advocate a scientific management and a science of doing it. He felt that it was essential to
separate planning from its execution so that each individual would be able to work at highest
level of efficiency. His contribution is at lower management.
He realised that scientific principles should be applied to the problems of management in order
to increase the output and to eliminate the wastage. Taylor found that the output and to eliminate
the wastage. Taylor found that the output of worker was extremely low as they were not properly
selected and trained.
DEFINITION; Taylor defines the scientific management as the art of knowing exactly what you
want men to do and then seeing that they do it in the best and cheapest way.
The idea Taylor to the scientific management include
1) Planning of work in advance
2) Selecting the best man for identified jobs.
3) Timing of jobs in its minutest possible points.
4) Determining the standard time required for the accomplishment of given job.
5) Standardizing of tools and equipments and right training for the use of such tools and
equipments.
6) Eliminating unnecessary movement in and outside the workshop.
7) Dividing the work and
8) The scientific approach to all the problems in management.
Scientific management was an innovation such as tremendous
opposition .First opposition came from management itself, which was not prepared to discard old
rules of thumb in favour of scientific management and another opposition is that Taylor‟s
principle of scientific management gives all gains to labour only.

FAYOL‟S PRINCIPLES OF MANAGEMENT
Henry Fayol (1841-1925), a French engineer who has been considered as the father of
modern management theory has formulated 14 principles of management for the soundness and
good working of the management.
According to Henry Fayol, the principles of management should be
(i) Flexible and not absolute- must be usable regardless of changing conditions
(ii) Used with intelligence and with sense of proportion.
The 14 principles of management, as formulated by Henry Fayol are as follows
1) DIVISION OF WORK: It means dividing the work on the principle that different
worker (different places) are best fitted for different jobs depending upon their aptitude
and skill. Division of work leads to specialisation at all levels and gives higher
productivity.
2) AUTHORITY & RESPONSIBILITY: These two are inter-related and should go
together. Authority is the power of manager to delegate and control the sub-ordinates.
Responsibility is the duty of the manager to implement the policies of the management. A
manager can do justice with his responsibility only when he has the proper
authority.Responsbility without authority or Vice-Versa is meaningless.
3) DISCIPLINE: Discipline is obeying and working according to instructions and orders
of superiors. This absolutely necessary for efficient functioning of all enterprises.
4) UNITY OF COMMAND: It means employees should receive orders and instructions
from one boss only. In other words a worker should not be under the control of more than
one superior. Unity of command avoids confusion, mistakes and delays in getting work
done.
5) UNITY OF DIRECTION: It deals with the functioning of the organisation. Unity of
direction implies that there should be one plan and one head for each group of activities
having the same objective.
6) SUB-ORDINATION OF INDIVIDUVAL INTEREST TO GENERAL INTEREST:
This means that the interests (opinions) of an individual person should not be given more
priority than general interests of the enterprise. This is necessary to maintain unity and to avoid
friction among employees.

7) REMUNERATION: The salaries and wages paid to the employees for their services
should be fair and bring maximum satisfaction to both employees and employer.
8) CENTRALAISATION OF AUTHORITY: It means that the authority is in the hands
of a single person or few persons (top management) i.e., authority is not dispersed among
different sections. The degree of centralisation is decided by keeping in view the nature
size and complexity of business.
9) SCALAR CHAIN: This is an unbroken line of authority and command from the highest
to the lowest ranks to facilitate communication. Sometimes this chain may be short
circuited for avoidance of delay.
10) ORDER- This principle is concerned with materials and persons. it means that,
materials and human beings should be arranged such that right material and right person
is in the right place which ensures effective utilisation of available resources.
11) EQUITY OF TREATMENT: This means that all sub-ordinates should be treated
equally with kindness and justice by the manager. This will make employees more loyal
and devoted towards the management.
12) STABILITY: Stable and secure work is an asset to the enterprise because unnecessary
labour turnover is costly. An average employee who stays with the industry is much
better than outstanding employees who merely come and go. Instability is the result of
bad management.
13) INITATIVE: Initiative is freedom to think out new plan. Encouragement should be
given to the workers who come forward voluntarily to propose new method idea or
change.
14) ESPRIT DE CORPS: This is a French word which means “UNION IS STRENGTH".
The principle implies that there should be Co-Operation and team work among the
members of the organisation. This creates harmony and understanding among workers.

THEORY „X‟ & THEORY „Y‟
Douglas Mc Gregor in 1960 stressed the importance of
understanding the relationships between motivation and behaviour. He
believed that managers motivate employees of two basic approaches
which he termed as THEORY‟X‟ & THEORY „Y‟.
THEORY‟X‟: This is the traditional theory of human behaviour are
started as negative in this approach. Based on these assumptions
organizations and managers who believe in THEORY „X‟ kind of
human nature attempt to structure, control and closely supervise their
employees.
The general traits of Theory „X‟
1. Laziness
2. Dependent
3. Relies on superiors
4. Less motivated
5. Avoids taking Risks.
6. Power is Supreme
7. Lack of initiation
8. Never performs an activity on his own

Assumptions of Theory „X‟
1) The Personnel are inherently dislike work.
2) They require constant guidance and support.
3) They avoid responsibility.
4) They tend to work slowly.
5) The average man to be Indolent.
6) They lack ambition
7) Their inherent nature is to resist change.
8) Little scope for development and research
9) People motivated at money end.
10) Lack of self control.

THEORY‟Y‟: This theory emphasizes the need for cooperative effort
from management and employees. This theory highlights the
requirement of today i.e.to get maximum output with minimum output.
The general traits of Theory „Y‟
1. Active
2. Goal Oriented
3. Takes initiative
4. Independent
5. Highly Motivated.
6. Good Human relations
7. Emphatetic
8. Takes risks
9. Optimistic
10. Inventor/creator/Discover

Assumptions of Theory „Y‟
1) The work is natural as play or rest.
2) They feel work as source of satisfaction.
3) They take up responsibilities.
4) They face all types of challenges.
5) Equal chance to develop the skills.
6) People are not dislike work.
7) They exercise self control.
8) Exhibit a high degree of imagination.
9) Highly committed to the organization.
10) People have a great capacity of creativity.

INDUSTRIAL MANAGEMENT

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