unit-2 (Industrial Management)

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Management helps and directs the various efforts towards a definite purpose. Harold Koontz, “Its an Art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals can co-operate towards attainment of group goals”. F.W. Taylor, “Mgmt. is an art of knowing what to do,   when to do and see that it is done in the best and cheapest way”. Management is a purposive activity . Management involves creating of internal environment. Good management need to be effective as well as efficient.

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Management is a goal oriented Management is universal in nature Management is an integrative force Management is a social process Management Manag ement is a multi-disciplinary  Management is a continuous process Management is intangible Management is an Science as well as Art.

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 Achieve group goals Optimum utilization of resourc resources es Minimization of cost Survival and growth Employment generation

Planning Communi cating

Oraganisi ng

Coordinatin g

Staffing

Controlli ng

Directing

Motivatin g

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Means thinking before doing. It is the preparation for action. Function to decide about what, where, when, who, why and how a particular activity be done. It defines:

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Goals, set the policies, procedures, programmes, develops strategies in order to achieve entp. objectives most eff efficiently iciently..

 Analyses all the difficulties that are likely to occur in running the business. Planning is a rational, economic, systematic way of making decisions today which will affect the future. Planning includes forecasting, formulation of objective, policies, programmes, schedules, procedures and budgets.

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  As per Koontz and O’Donnell “ planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning bridges the gap from where we are, to where  we want to go. It makes it possible for things to occur which  would not otherwise happens”.   Alfred & Beatty, “ Planning is the thinking process, the organised foresight, the vision, based on the facts and experience that is required for intelligent actions”. M.E. Harley, “ Planning is deciding in advance what is to be done. It involves the selection of objectives, policies, procedures and programmes from among alternatives.

 Visualising future course of action and putting it in logical way  It involves involves thinking and analysis Concerned with determination of objectives ob jectives and goals Development of alternative course of actions Selection of best course of action Objective to achieve better results Continuous and integrated integrated process

Planning helps in effective forecasting @ Planning provides certainty in the activities. @ Planning provides performance standards. @ It gives a specific direction to the organization @ Helps the organization to tune with the environment @ Provides economy in the management. @ Helpful in preparing the budgets. @ Need for planning arises from constant change. @ Planning is directed towards efficiency. @

Determination of objectiv objectives es Forecasting to assist planning Establishing planning premises and constraints ii. Internal premises iii. External premises i.

Deciding the planning period Collection, classification and processing of information Deciding alternative course course of action Evaluation of alternative Selection of best plan Subsidiary plan to aid master plan Controlling plans

Maximum utilization of resourc resources es unproductive ve work  Minimization of unproducti  Reduces uncertainty   Basis of managerial action  Basis for control   Avoids bottlenecks in production  Planning encourages innovation and creativity   Improves motivation competitive ive advantages  Gives competit 

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Limitations of forecast Costly affair Influence Inf luence of external factors Resistance Resista nce to change Rigidity and flexibility 

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Measures to overcome limitations:-

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Set realistic and achievable a chievable goals Communicate assumptions to all people who are concerned. Encourage and make people participate par ticipate in planning. plann ing. Coordination between long term and short term planning. Encourage creativity in planning. Resource position so they be available as and when required.

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Goals:- any achievement of an end point that may be stated in quantitative terms. Usually long runs and objectives are derived from goals and ordinarily short run. Objectives :    

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the ends towards which which the activities of an organisation are directed. To be achieve in a specific speci fic time t ime period. Basis objectives are determined by the top management. ma nagement. Each deptt. Had its own objectives with the framework of basic objectives. Objectives can be short term, long term, medium term, economic, noneconomic, external, internal, in ternal, major majo r, minor, etc.

Policies:  

Helps in work in line l ine with the objectives. Provide framework for executive action on recurrent managerial problems. Serve as a guide for action for achieving the objectives.

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Rules: 

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Procedure:  

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Designed to accomplish policies and accomplish objectives. Gives step by step approach to guide action necessary to reach pre-determined targets. Gives time table for actions.

Schedule: 

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Means for implementing a policy. Tells how a particular activity is to be carried out. Prescribe the chronological sequence of steps that must be followed for the completion of particular task. task .

Programmes:

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Simplest type of plan chosen from the alternatives . Specifies action to be taken or not to be taken in a given situation.

Process of establishing time tim e sequence of the work to be done. Specifies the time when each series of action should take ta ke place.

Budgets:- Projection defining anticipated costs of attaining an objective.  Appraisal of anticipated expense against anticipated income.

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Refers to systematic analysis of past and present circumstances.  As per Fayol, “ Forecasting is the essence of management. The success of a business greatly depends upon the efficient forecasting and preparing for future events.” Definitions:

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Defined as an estimation of future activities, i.e. the estimation of type, quantity and quality of future work. Theses estimates provided the basis to plan the future requirements for men, machines, materials, time, money, etc.  As per Allen L.A ., ., “ forecasting is a systematic attempt to probe the future inference from known facts. The purpose is to provide management with information on which it can base planning decisions. Forecasts are predictions or estimate of change, if any in characteristic economic phenomena which may affect one’s business plans.

Estimation of probable future trend. Estimation based on past and present circumstances. Scientific and systematic techniques are used for estimation.  Anticipates changes in order to bring accuracy and exactness to decisions. Mathematical and statistical inferenc inferencee provide a solid base Consider present circumstances in relation to the past.

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Importance in planning.  Accuracy in managerial decisions. Facilitates control Formulating Form ulating future policies Co-ordination is developed Helps in preparing budgets. Sales forecasts Contributes to business success.

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It involves:  

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Determining activities needed to be fulfill fulfi ll the objectives Grouping these activities activitie s into manageable units or deptt.  Assigning such groups of activities to managers.

It’s a framework of management or a mechanism for positive, integrated and co-operative actions by many people.

It provides an effective machine for achieving the plan or objectives. It creates authority, responsibility and relationship among the individuals. Steps in organizing:   

Determination of activities Division of activities Fitting individuals into jobs Developing relationships in terms of authorities and responsibilities.

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It is filling the positions needed in the organisation structure by appointing competent and qualified persons for the job. It involves recruitment, selection, placement, training, development of personnel, developing system for remuneration of personnel and evaluating their performance. Its important as people differ in their intelligence, knowledge, skills, experience, physical condition, age and attitudes. Need to select the right man for the right job and train and motivate them to increase organizational effectiveness and productivity.

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Important because managerial decisions are put into actions through effective direction. It involves motivating, guiding and supervising subordinates, not only about the orders. Directing ability of the manager in the organisation determines its effectiveness. Steps in Directing function:  

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Necessity Nec essity of supervision in order to ensure: 

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Issue of orders and instructions Guidance and training to subordinates Supervision of subordinate’s work.  Work is going as per the  Work t he plan established.  Workers are doing the work as directed to do.

Directions must be definite, clear cut, understandable, communicable and practicable.

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Its about inspiring people to intensify their desire and   willingness to perform their duties effectively and co-operate for the achievement of common objectives. Motivation is the mental preparation of an individual to do a specific job.   As per Michael J. Jucius, “ Motivation is the act of  stimulating some one or oneself to get a desired course of  action, to push the right button to get desired action”.   As per Dalton Emfarland, “The concept of motivation id mainly psychological. It relates to those forces operating   within the individual employee or subordinate which impulses him to act or not active in certain ways”. Effective communication and participation enhances the power of motivation.

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Fundamentals:

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Classification of Motiv Motivation:ation: 

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  A person wants to exist and survive and for this he needs basic necessities. Desire to achieve goal. Internal Motivation External Motivation

Functions of Motivation:  

It originates action It directs activities in the direction of goal. It helps to continue the activities till the goal is achieved.

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 As per Henry Fayol, “Control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and the principles pri nciples established”.   As per Koontz and O’Donell, “ Controlling implies measurement of accomplishment against standard and the correction of deviations to ensure attainment of objectives according to the plans”.   As per E.F.L. Breach, “ Control is checking current performance against pre-determined standards contained in the plans, with a view to ensuring adequate progress and satisfactory performance”.

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Controlling Process of keeping activities on track Determine whether goals are met Decide changes needed to get back on track May use an informal or formal system of evaluations Employee job assignments Routine problem solving Conflict resolution Effective communications Decision making is not a separate management function, but the outcome of the exercise of   good judgment in planning, directing, and controlling.

Feedback in the form of performance reportsthat compare actual results with the budgetare an essential part of the control function

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 Assure that resources are obtained and used effectively and efficiently in the accomplishment of the organization’s objective Has financial and non financial performance measurement Concerned with the implementation of strategies and Task control

Formulating long term and short term plans(planning)

Compare actual to planned performance (controlling)

DECISION MAKING

Measuring performance (Controlling)

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Implementing plans ( directing and motivating)

Plan Decision to change operations or revise plans

 Action taken to implement plan

Decision to reward or punish managers

Results

Evaluation

Planning Proces Processs

Compariso n of  of  planned and actual result

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  As per Alan C. Reiley and James D. Mooney, “ Coordination is the orderly arrangement of group effort, to provide unity of action in the pursuit of common purpose”.   As per E.F.L. breach, “Co-ordination is balancing and keeping the terms together, by ensuring a suitable allocation of working activities to the various members and seeing that these are performed with the due harmony among the members themselves”. In simple terms, “Co-ordination is the orderly  arrangement of group effort, to provide unity of action in the pursuit of common purpose”.

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Numerous persons at work Subdivisions and complexity of work Delegation of authority and responsibility  Chances of difference between executives and specialists. Human nature and their problems. Growth Gro wth in size of organization

T YPES OF CO-ORDINATION CO-ORDINATION 

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Internal Co-ordination External Co-ordination  Vertical Co-ordination Horizontal Co-ordination

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It is a process by which instructions, ideas, thoughts or information are transmitted, received and understand, by  the persons working in the organization.   As per Keith Davis, “ It is the process of passing information and understanding from one person to another. It is essentially a bridge of meaning between people. By  using this bridge meaning, a person can safely cross the river of misunderstanding that separate separate all the people”.  As per Wibur Schramn, “ the essence of communication is getting the receiver and the sender tuned together for a particular message.” Components of communication :- Sender, Message, receiver and feedback.

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It must be clear in purpose and intention Participation Transmission In simple language  Attach importance to action rather than work Cordial Employer-employee relations

IMPORTANCE OF COMMUNICATION IN MANAGEMENT Smooth and un-restricted un-restricted running of the enterprises enterprises Quick decisions and implementation Proper planning and co-ordination Maximum productivity with minimum cost Morale building and democratic management     

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  A course of action consciously chosen from available alternatives for the purpose of a desired result. It is to decide the future course of action for the organization over short or long terms. The decisions is the point at which plans, policies and objectives are translated into concrete actions.

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Given by F.W .W.Taylor .Taylor (March 20, 1856- March 21. 1915), also known management. nt. as father of scientific manageme He implies application of scientific principles for studying and identifying management problems. problems.  As per Taylor “ Scientific management is an art of knowing exactly   what you want your men to do and seeing that they do it in the best and cheapest way”. If work is analysed scientifically it will be possible to find one best  way of do it.  As per Peter F. Drucker “ The cost of scientific management is the organized study of work, the analysis of work into simplest element and systematic management of   worker’s performance for each element”. Tools for scientific management :  

Time study  Motion study  Functional Foremanship

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Development of science for each element of work Scientific selection and training of workers Division of labor (separation of planning function from doing function) Standardization of methods, procedures, tools and equipment Use of time and motion study  Differential wage system Co-operation between labor and management Principle of management by exception.

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Henry Fayol in his book titled “ General and Industrial Management” in the year 1916. Following fourteen principles were given :            

Division of Work  Authority and responsibility  Discipline Unity of command Unity of direction Emphasis on subordination of personal perso nal interest to common interest.  Adequate remuneration to personnel Centralization Scalar chain or line of authority  Order Equity  Stability of workers Initiative

MANAGEMENT TOOLS METHOD STUDY(MOTION STUDY)

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Pioneers who had contributed to emergence and development of    work study : Frank B. Gilberth, F.W. Taylor, Bedaux, Henry L. Gantt, Harrington Emerson, Em erson, Halsey, Halsey, Rowan, etc. 3 main aspects:  

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More effective use of plant and equipment More effective use of human effort eff ort Evaluation of human work

  Work study analysis of work into smaller parts followed by  arrangement of these parts to give the same effectiveness at a lesser cost. work. Examines both method and duration of the work.  Work study is primarily concerned with discovering the best ways of doing jobs and with establishing standards based upon such methods.  Work study, analytical investigation of the methods, conditions and effectiveness of industrial work, and determining the ways by which human efforts may most economically be applied.

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Raising productivity by re-organization of work Determine standards of performance for effective planning and control.

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Systematic approach, no factor overlooked.

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Better work place, neat and clear working environment.

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Saving and efficient use of human and material resources

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Eliminates unnecessary human efforts

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Improved safety 

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Reduction in fatigue and health hazard.

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Determine level of skill in workers for implementing the incentive based wage system Minimize unit cost by proper selection and use of machine, process, etc.

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“ It is the systematic recording and critical examination of existing and proposed ways of doing works as means of developing and applying easier and more effective methods and reducing cost”.

Objectives :           

Improvement of process and procedures Improvement of work place layout and of the design of plant and equipment. Economy in human efforts and reduction of unnecessary fatigue. Improvement in use of materials, machines and manpower. Development of better physical working environment Find best way of doing a job Standardise the best method Train the individual as per stanardised method Reduction of waste and scrap, improving quality  Effective material handling Greater job satisfaction, higher standards of safety and health Improvement in flow of production and processes.

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Techniques of method study aims at doing 3 things:  

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Reveal and analyse true facts concerning the situation Examine those facts critically  To develop the best possible answer from the examination of facts.

Definite and ordered sequence of analysis is as follows:   

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Define the problem Obtain all the facts relevant to the problem Examine the fact critically and impartially  Consider the courses open and decide which to follow  Act on the decision Follow up the development.

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Factors to be considered:  

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Economic Consideration:Consideration:- waste of time to start or continue a long investigation, cost of study and cost related to the investigation. Obvious early choices:    

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Economic Consideration Technical Consideration Human reactions

“Bottleneck” which are holding up other production operations Movement of material over long distance of shops Operation involving a great deal of manpower and equipment Inconsistencies in quality  Highly fatigued work

Technical Consideration:Consideration:- adequacy of technical knowledge to sort out bottleneck. Human Reaction:- mental and emotional reactions to investigation and changes of method should be anticipated.

METHOD STUDY Select the job to be studied Record facts relating to existing method Diagram

Charts

Models

Examine all relevant facts Examine critically but impartially

Purpose

Place

Sequence

Person

Means

Develop alternative method to the existing method

Steps in Method study  Select the most economical method and define it Install the new method planarrange-implement Maintain the new method, verify its implementation at regular intervals To achieve improved factory and work place layout improved

Improved productivity

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Success of procedure procedu re depen depends ds upon the accuracy accurac y with which the facts are recorded. Purpose:

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To enable the process to be clearly understood. To present the existing facts for analysis. To submit the proposal to the mgmt. in a form which can be easily understood. un derstood. To guide supervisors and operators regarding detailed operating instructions.

Types of chars:

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 A Charts :- Indicating process sequence ( Flow process chart, two handed process chart) B Charts:- Using time table ( Multiple activity chart, Simo chart, PMTS charts) C charts:- Indicating movements and models ( flow diagrams, string diagrams, cycle graphs, chrono-cycle graph, travel chart, etc.)

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Gives the overall picture of the progress It’s the graphic representation of materials introduced into a process and the sequence of all operations.

 Vertical  V ertical line:- General f low of the process Horizontal Horiz ontal line:- Material being introduced introduced

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Objectives:

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Helps to decide whether a further and more detailed record is required. Used in deciding the layout of the plant and location of one deptt. with respect to others. Helps the analyst for better examining and understanding of the process Shows clearly the relationship between various parts and materials which enter the final assembly assembly..

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Graphical representation of all operations, inspections, transportations, delays and storage occurring during a process. Types of f low process process chart:  

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Man Type:Type:- it records what the worker does. Material type:- it records what happens to the material Equipment type:- records how the equipment is used.

Objectives: 

 Visualise complete sequence of events occurring. To study the event in a systematic way for the complete analysis:   

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To improve layout To improve material handing To reduce delays To eliminate, combine or re-arrange the events in a systematic way way..

To compare between two or more alternative methods To select operation for detailed study.

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 Also known as Right and Left Hand Process chart. It is a study to analyse the motions used by the workers in performing performi ng an activity. activity. It is chart in which the activities of a worker’s hand are recorded, in their relationship relationshi p to one another. another.

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Commonly used for repetitive and short operations.

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Same symbols are used but with changed meaning.

Procedure:Before start of recording, study the operation cycle few times. Observe one hand at a time and record. Record few symbols at a time. Start observ observing ing and recording recording at positio position n which can be easily  distinguished. Card must be taken while observing and recording. 

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it’s a chart in which the activities of more than one item ( worker, machine or equipment) are recorded on a common time scale to show their inter-relationship.

Shows very clearly the period of idleness on the part of any items during the process. Makes rearrangement possible so the infective time is reduced.

Uses only 2 symbols :Objectives:

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Working

Idle

To detect the period of idleness on the part of men and machines. To determine the number of machines which an operator should be able to look after af ter.. In organising teams of workers workers on mass production work. To determine number of workers necessary to perform a job involving team work.

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The worker and machine process chart (Man-machine chart) is used study,, analyze, and improve i mprove one workstation workstation at a time. to study The chart shows the exact time relationship between the working cycle of the person and operating cycle of the machine. These facts can lead to utilization of both  both   worker and machine time, and a better balance of the work cycle. Many  machine tools are either completely automatic or semi automatic. The utilization of this idle time can increase operator earnings and improve production efficiency. 2 type of diagrams:

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Flow diagrams Sting diagrams

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Used to supplement the flow f low process chart.

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Plan of work drawn with suitable scale.

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Shows relative position of productive machinery, storage area, gang  ways, etc.

Path followed by the men and machine is marked on to flow diagram. Steps:-Steps: 

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Draw to scale the plan of the work area. Mark the relative position of machines tools, store, racks, inspection booths, etc. Draw actual movement of the material and worker on the diagram and indicate the direction of movement from different observations. Each movement is serially numbered and indicated by an arrow for its direction. Different colors to identify the different types of movements.