Chapter 1 nature & scope of indust mngt ed1.pdf

8/17/2019 Chapter 1 nature & scope of indust mngt ed1.pdf

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Industrial Management andEngineering Economics

Chapter 1.Nature and Scope of Industrial

Management


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What comes in your mind whenone talks about Management?


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Chapter 1: Nature and Scope ofIndustrial Management

Why managers are essential to the efficient operation of all types

of organizationsThe basic functions all managers performThe different roles played by managersThe three levels of management that contribute to the

management hierarchyThe skills and abilities needed by managers at different levelsHow managers differ in management style and decision makingbehavior

What comes in your mind when one talks about Management?...


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De nitionManagers use resources to attain organizational goals

Management is the use of people and otherresources to accomplish objectives

Objective Ma!imize the potential of their people andcoordinate their efforts to attain some predetermined goal "


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De nition….

Organization#n organization is a stable$ formal social structure that

takes resources from the environment and processes

them to produce outputs "


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De nition….

Organizational %oals&rofit'oriented organization

(eturn on investment

Hospitals&atient )are

*ducational +nstitutions

Teaching , providing -uality education(esearch)ommunity .ervices


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De nition….

(esourcesHuman

.kills

/nowledge0on'Human)apital1and

&lant and *-uipmentTechnology


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Management as a Unifying orce

Management

2inancial(esources

&lant3

*-uipment

*mployees

1andManagement is the process ofbringing human and nonhumanresources together and coordinatingthem to accomplish organizationalgoals.


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Importance of Management

Management

&uts together the factors of production to

produce goods and services

Make business decisions

Takes risks for which the reward is profit

#cts as an innovator by introducing new

products$ new technology and new ways of

organizing business


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Manager!s Interactions "ith#ther $roups of %eople

)reditors 3.uppliers .uperiors )ustomers

&eers)oworkersManager

%overnment#gencies.ubordinates)ommunity


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unctions of Management

The2unctions ofManagement

& l a n

n i n g

) o n t r o l l i n g

1 e a d i n g

O r g a ni z i ng

. t a f f i n

g


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unctions of Management…

&lanning is the process of setting objectives for the future and developing courses ofaction to accomplish them"

Organizing is the process of arranging people and physical resources to carry out plans andaccomplish organizational objectives"

.taffing is the process of matching jobs andpeople "


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unctions of Management…

1eading is the act of motivating or causing people to perform certain tasks intended to achieve specific objectives . It is the act ofmaking things happen .

)ontrolling is the process by which managers

determine whether organizational objectivesare achieved and whether actual operationsare consistent with plans .


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Management &olesInterpersonal Roles

2igurehead #ll social$ inspiration$ legal and ceremonialobligations" +n this light$ the manager is seen as asymbol of status and authority"

1eader 4uties are at the heart of the manager'subordinaterelationship and include structuring and motivating subordinates$ overseeing their progress $ promoting andencouraging their development$ and balancing

effectiveness "1iaison 4escribes the role of managers in representing

their organization in different occasions"


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Management &oles…Informational Roles

Monitor 4uties include assessing internal operations $ adepartment5s success and the problems andopportunities which may arise" #ll the information gainedin this capacity must be stored and maintained"

4isseminator Highlights factual or value based e!ternalviews into the organization and to subordinates" Thisre-uires both filtering and delegation skills"

.pokesman .erves in a public relations capacity byinforming and lobbying others to keep key stakeholdersupdated about the operations of the organization"


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Management &oles…Decision Roles

*ntrepreneur (oles encourage managers to createimprovement projects and work to delegate $ empowerand supervise teams in the development process"

4isturbance handler # generalist role that takes charge when an organization is une!pectedly upset ortransformed and re-uires calming and support"

(esource #llocator 4escribes the responsibility ofallocating and overseeing financial$ material andpersonnel resources"

0egotiator +s a specific task which is integral for thespokesman$ figurehead and resource allocator roles"


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Management 'ierarchy

Three distinct levels of management

Top Management

Middle Management

.upervisory Management


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Management 'ierarchy…

Top ManagementMade up of individuals who have the possibility of makingthe decisions and formulating policies that affect all aspectof the firm5s operations "

&resident6ice &resident)hief *!ecutive Officers*!ecutive 6ice &resident

# manager5s assigned job duties and the authority needed to fulfill those duties are what determinemanagement level


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Middle Management

+ncludes all managers above the supervisory level

but below the level where overall company policyis determined "Middle managers manage supervisors"

(egional .ales Manager#cademic 4eans 78niversities94irector of 0ursing 7Hospitals9


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.upervisory Management

.upervisors manage workers who perform the

most basic job duties re-uired in the business".ales Manager#cademic 4epartment )hairperson 78niversities90ursing .upervisors 7Hospitals9


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Management and productivityManagement is concerned with productivity i.e. the

efectiveness and e ciency.Productivity can be measured as the Output toInput ratios within a time period with dueconsideration or quality.

Productivity = O P I P !within time period and considered"

Productivity can be improved by a. #y increasing O P with same I P.

b. #y decreasing I P but maintaining same O P. c. #y Increasing O P and decreasing I P to change the ratio avorably.

$he I P can be labour% material capital etc. In the past productivity improvement program weremostly aimed at wor&ers level but now it is or the managementalso.


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Management S(ills

)ommon myths about management1eaders are born $not madeManagement is nothing more than common senseManagement is a : hit or miss ; proposition$ plan<

=usiness often succeed in spite of managers$ not becauseof managers

Management .uccess depends on both a fundamental

understanding of the principles of management andon the application of technical$ human andconceptual skills" What do we mean by these skills?


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Management S(ills…

Technical .kills

#re the specialized knowledge and abilities

that can be applied to specific tasks "Most important at lower level of management"

.upervisory managers should train theirsubordinates in the proper use of work'relatedtools $machines and e-uipments "


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Human relations skills

#re the abilities needed to resolve conflict $

motivate$ lead$ and communicate effectively with other workers"

*-ually important at all levels of management"


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)onceptual .kills

#re the abilities needed to view the

organization from a broad perspective and tosee the interrelations among its components"

#re most important in strategic 7long'range9planning > therefore they are more important attop level e!ecutives "


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Topmanagement

Middlemanagement

.upervisorymanagement

T e c h

n i c a l .

k i l l s

H u m

a n ( e l a t i o n s .

k i l l s

) o n c e p

t u a l . k i l l s


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Management Styles Description Advantages Disadvantages

AutocraticSenior managersta(e all theimportantdecisions "ithno in)ol)ementfrom "or(ers

*uic( decisionma(ingE+ecti)e "henemploying many lo"s(illed "or(ers

No t"o,"aycommunication socan -e de,moti)atingCreates them andus/ attitude-et"een managersand "or(ers

Paternalistic

Managers ma(edecisions in -estinterests of"or(ers afterconsultation

More t"o,"aycommunication somoti)ating0or(ers feel theirsocial needs are -eingmet

,Slo"s do"ndecision ma(ing,Still uite adictatorial or autocratic style ofmanagement

Democratic

,0or(ersallo"ed to ma(eo"n decisions.,Some-usinesses runon the -asis of

,3uthority isdelegated to "or(ers"hich is moti)ating,Useful "hen comple4decisions are re uiredthat need specialist

Mista(es or errorscan -e made if"or(ers are nots(illed ore4perienced enough


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PR D!C"I N ANDPR D!C"I#I"$

&roduction refers to -uantity of productionproductivity means the efficient use of resources consumedfor achieving that production"(esources are of several types

material$men$machine hours$energy consumed$space utilized etc"

1esser is the consumption of such resources per unit of

production$ higher is the productivity"


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1et us take the e!ample of two motor cyclemanufacturers who produce similarmotorbikes same design$ same H& etc" +fone manufacturer uses @"A tonnes of steelper motorcycle and the other uses @"B tonnesof steel$ the latter5s material productivity is

higher"&roductivity should not be confused with costof manufacture$ although a plant with higher

productivity will use less resources and itsproduct is likely to be cheaper"


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%roducti)ity=roadly defined as the ratio of O8T&8T. to

+0&8T.Total$ partial$ or multifactor measures


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%roducti)ity E4ample

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Chapter 1 nature & scope of indust mngt ed1.pdf