Industrial management unit 1 notes

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Industrial Management Dr.Vidyashankar.S Professor Dept. of Mechanical Engg. Bangalore Institute of Technology

Bangalore-04

Part A Unit - I Introduction Chapter 1 The branch of engineering that deals with the creation and management of systems that integrate people and materials and energy in productive ways Definition Industrial Management

DEFINTION OF MANGAEMENT According to Henry Fayol “Management is to forecast and plan, to organise, to command, to co-ordinate and to control.” It attempts to describe management in terms of what a manager does and not what management is? According to Oliver Sheldon, “the term management is commonly used to cover the formation of policy, its execution, the designing of the organisation and its employment.” According to E.F.L. Breech – “Management can be defined as a social process entailing responsibility for the effective and efficient planning and regulation of the operations of an enterprise,’’ suc

Historical Perspective •

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Since the beginning of time, humans have been managing—managing other people, managing organizations, and managing themselves. Management is a process used to accomplish organizational goals.

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To some, management is thought of as an art; to others, as a science. Each of those perspectives is grounded in the early writings and teaching of a group of managerial pioneers

The Pre-modern Era Ancient massive construction projects

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Egyptian pyramids  Great Wall of China 

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Michelangelo, the manager.

INDUSTRIAL REVOLUTION • While it can be argued that management began well before the Industrial Revolution, it is often felt that what emerged as contemporary management thought was begin with the beginning of industrial development.

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The Industrial Revolution began in the mid-eighteenth century when factories were first built and laborers were employed to work in them.

The Industrial Revolution’s Influence On Management Practices 

Industrial revolution  Machine power began to substitute for human power  Lead to mass production of economical goods  Improved and less costly transportation systems became available  Created larger markets for goods.

 Larger organizations developed to serve larger markets  Created the need for formalized management practices. Adam Smith’s Contribution To The Field Of Management 

Wrote the Wealth of Nations (1776)  Advocated the economic advantages that organizations and society would reap from the division of labor:  Increased productivity by increasing each worker’s skill and dexterity. 

Time saved that is commonly lost in changing tasks.

 The creation of labor-saving inventions and machinery.

Adam Smith’s Classical Contributions 

Classical approach  The term used to describe the hypotheses of the scientific management theorists and the general administrative theorists. 

Scientific management theorists  Fredrick W. Taylor, Frank and Lillian Gilbreth, and Henry Gantt

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General administrative theorists  Henri Fayol and Max Weber

Scientific Management 

Frederick W. Taylor

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The Principles of Scientific Management (1911)  Advocated the use of the scientific method to define the “one best way” for a job to be done

 Believed that increased efficiency could be achieved by selecting the right people for the job and training them to do it precisely in the one best way.  To motivate workers, he favored incentive wage plans. 

Separated managerial work from operative work.

Scientific Management Contributors 

Frank and Lillian Gilbreth  Bricklaying efficiency improvements  Time and motion studies (therbligs)

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Henry Gantt Incentive compensation systems Gantt chart for scheduling work operations

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General Administrative Theory 

General administrative theorists  Writers who developed general theories of what managers do and what constitutes good management practice Henri Fayol (France)

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Fourteen Principles of Management: Fundamental or universal principles of management practice

Max Weber (Germany)  Bureaucracy: Ideal type of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships

BEHAVIORAL MANAGEMENT • The behavioral school of management grew out of the efforts of some to recognize the importance of the human endeavor in an organization. • These people felt that if managers wanted to get things done, it must be through people—the study of workers and their interpersonal relationships. Henry L. Gantt (1861–1919) • was one of the earliest of theses behavioral theorists. • Some people would classify him in more than one category, but his passionate concern for the worker as an individual and his pleas for a humanitarian approach to management exemplify the behavioral approach. • His early writing called for teaching and instructing workers, rather than driving them

Mary Parker Follett (1868–1933)

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Although trained in philosophy and political science, shifted her interests to vocational guidance, adult education, and social psychology.

• These led to her lifetime pursuit of developing a new managerial philosophy that would incorporate an understanding of the motivating desires of the individual and the group. Elton Mayo (1880–1949) • Best known for his Hawthorne experiments, introduced rest pauses in industrial plants and in so doing reduced employee turnover from 250 percent to 5 percent in some cases. • He was concerned about human performance and working conditions. • The work pauses, better known as breaks, reduced employee pessimism and improved morale and productivity.

Henri Fayol (1841–1925), •

The father of the management process school of thought was the Frenchman a mining engineer.

• He spent his entire working career with the same company, involved with coal mining and iron production. • From his experiences as the managing director of the company, Fayol developed his general principles of administration • He thought that the study, analysis, and teaching of management should all be approached from the perspective of its functions, which he defined as forecasting and planning, organizing, commanding, controlling, and coordinating.

James D. Mooney (1884–1957) •

whose writings and research lent credence to the management process school of thinking, is credited with the notion that all great managers use the same principles of management.

MANAGEMENT PROCESS

- Frederick Taylor,

-Henry Fayol, -Gilbert,

-Charles Babbage, - Henry Gantt

contribution

Frederick Winslow Taylor “Father of Modern Management” 

In 1895- proposed a Piece Rate System:

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Observe & Analyze – set the “standard” for job (use Time and Motion studies) 

Pay workers for meeting/exceeding standard

 Pay individual worker – not everyone, or group/department, or the “job” = pay according to individual value to business

Frederick Taylor – Cont. 

Biography: Wealthy Philadelphia Quaker family

Worked in hydraulics factory as laborer/foreman/chief engineer 

At 25 earned college degree in engineering

 At 35- consultant: introduced functional foreman, production planning, differential pay= cut costs/increased production) 

1905 – wrote Shop Management

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1909-14: Lecturer at Harvard

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Management consultant – US Navy and Army

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1911- Wrote Scientific Management

Taylor’s Four Principles of Management  Develop a science for each element of an individual’s work, which replaces the old rule-of-thumb method.

 Scientifically select and then train, teach, and develop the worker. (Previously, workers chose their own work and trained themselves as best they could.)  Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 

Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers. (Previously, almost all the work and the greater part of the responsibility were thrown upon the workers.)

Henri Fayol’s

Henri Fayol’s Principles of Management 

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Division of Labor: allows for job specialization. Authority and Responsibility: both formal and informal authority result from special expertise.

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Unity of Command: workers have only one boss.

Line of Authority: clear chain of command, top to bottom of the firm.

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Centralization: degree to which authority rests at the top of the organization.

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Unity of Direction: single plan of action to guide the organization.

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Equity - The provision of justice and the fair and impartial treatment of all employees.

Fayol - Continue 

Order: place workers where most useful and have career opportunities.

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Initiative: encourage employees to act on their own.

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Discipline: workers need to obey

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Remuneration of Personnel: pay what is fair.

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Stability of Tenure of Personnel: Long-term employment is important

 Subordination of Individual Interest to the Common Interest: interest of organization priority 

Esprit de corps: Have enthusiasm

Frank Gilbreth 

Born in 1871 in Fairfeild, Maine.

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Ambition to be a Construction Engineer.

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First job as a bricklayer.

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Introduced improvements in brick laying.

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Promoted to Foreman then superintendent.

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Became involved in the contracting business.

Frank Gilbreth 

Started contracting business in 1895.

 1911, started a firm of Consulting Industrial Engineers. 

Gained international fame as a consultant.

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Had 12 children with Lillian Gilbreth.

Frank Gilbreth  Developed “time and motion” study as an approach to scientific management.  Motion study: finding the best method to perform a task. 

Time study: establish work standards for a job.

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Used Cine camera in analysis.

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Constructed 3 dimensional models of motion

Frank Gilbreth 

Devised several systems of analyzing work.

 Flow Process Chart breaking work into basic elements of operations, inspections, transportations, storages and delays.

Frank Gilbreth  Developed “therbligs” e.g Grasp-begins when hand or body member touches an object, consists

of gaining control of an object, ends when control is gained.  Therbligs held the stage for many years in work analysis.

Frank Gilbreth 

The Principle of Motion Economy

 Lead to minimum effort and fatigue and maximum achievement. 

Identified Two factors affecting job execution: 1) Worker 2) Enviroment

Frank Gilbreth Contribution: 

Workers were trained and placed in suitable areas of work.

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Performance of the workers were monitored.

 Workers were restated if the were of low performance.  Believed in the value of questions and the need to ask questions.

Frank Gilbreth

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Scientific management was a philosophy of life achieved by cooperation of engineers, educators, physiologists, psychologists, psychiatrists, economists, sociologists, staticians and managers.

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Died in 1924.

Biography

Lillian Moller Gilbreth

Early Days and Education 

Date of Birth:

24th of May 1878

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Place of Birth:

Oakland, California

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First Degree:BS degree in Literature (1900), University of California (Berkeley)

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MS Degree: Literature (1902)

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Doctorate:

Literature (got married)

Family Life and Career 

Ph.D.:

Psychology (4 children)

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Second degree: Engineering (husband's encouragement)

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Partnership with her husband Frank

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Difference in their natures and its effect on business: 

Frank:

technical aspects of time management

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Lillian:

human aspects of working efficiency

Partnership with Lillian’s Husband •

Partnership lasted 20 years

• Shared work and ideas • A sum up of their idea found in 2 books

• “Applied Motion Study ” • “Fatigue Study”

Radical Changes in Lillian’s Life • Husband’s early death (1924) • Struggle with business career in convincing the companies of her ideas of efficiency • New techniques to perform household tasks (efficient kitchens)

Lillian’s Work 

Applying efficiency techniques for

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handicapped to facilitate their lives

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Directing doctors in treating patients

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Wrote on homemaking and parenting  “Living with Children”  “Homemaker and her Job”  “Foreman and Power Management in the Home”

Lillian’s Late Achievements

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Education at the age of 50  

MS in Engineering Doctorate in Engineering

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Served in the New Jersey State Board of Regents

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Delegate to the World Power Congress

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Professor at Purdue

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Advisor for American Presidents

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Retired at the age of 90

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Passing away at the age of 92

Lillian Gilbreth

Charles Babbage 1791-1871 “Father of the modern computer”

Early childhood 

Born in Totnes, Devonshire, England in 1791

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Was a very sickly child

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Started school at age 10

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He was a very curious child

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Science and +math were favorite subject