introduction of industrial management

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INDUSTRIAL MANAGEMENT FUNDAMENTALS

M. K. Islam / ME 359

Reference Books:1. Management by Knootz.2. Management by Griffin.3. Management theory and Practices by JS Chandan.

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After the lesson you may learn:

• Concept of Industry and Management• Functions of a Manager• Managers skills, levels, quality and work areas• Management : Art or Science


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Industrial ManagementIndustrial management composed of two words. >>Industry and>> Management

Industry:• An industry is a group of manufacturers or businesses

that produce a particular kind of goods or services.

• Any general business activity or commercial enterprise that can be isolated from others.


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Levels of Industry:The terms for each level originate from Latin words referring to the numbers one to five.Primary (first) Industry: Primary industries are those that extract or produce raw materials from which useful items can be made. Extraction of raw materials includes mining activities, forestry, and fishing. Agriculture is also considered a primary industry as it produces “raw materials” that require further processing for human use.


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Levels of Industry:• Secondary (second) Industry: Secondary industries are

those that change raw materials into usable products through processing and manufacturing.

>>Bakeries that make flour into bread >>factories that change metals and plastics into vehiclesThey Add value to raw Material.


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Levels of Industry:• Tertiary (third) Industry: Tertiary industries are those

that provide essential services and support to allow other levels of industry to function.

>>service industries, this level includes transportation, finance, utilities, education, retail, housing, medical, and other services. >>Since primary and secondary levels of industry cannot function without these services, they are sometimes referred to as “spin-off” industries.


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Levels of Industry:• Quaternary (fourth) Industry: Quaternary industries are

those for the creation and transfer of information, including research and training. Often called information industries, this level has seen dramatic growth as a result of advancements in technology and electronic display and transmission of information.


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Levels of Industry:• Quinary (fifth) Industry: Quinary industries are those

that control the industrial and government decision-making processes.

>> includes industry executives and management and bureaucrats and elected officials in government. Policies and laws are made and implemented at this level.


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Management• Management is the process where one or more persons

coordinate the activities of other persons to achieve certain results.

• Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.

In order to perform managerial functions the management needs accurate and factual information which is provided by office.Office: Office refers to the work center where all the managerial functions including clerical works are performed. It is the nerve center of the entire organization.


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Management

• Office helps in performing managerial functions of planning, organizing, coordinating, directing and controlling.

• Office is a memory center. It is a store room of all business/service information in the same way as human brain stores all information and uses it when required.

• Office is a channel of communication within the organization and to the outside world.

An office manager is an employee charged with the general administrative responsibilities of any given office of a corporation.


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Office ManagementOffice management is the administrative handling, controlling, and maintaining a balanced process of work inside the office of an organization whether big or small company/business, which is necessary to achieve the administrative goal.Components of office management: • Purposes or goals: Goals are desired state or end state where

the organization wants to reach. Every office should define SMART goals i.e. Specific, measurable, agreed upon, realistic and timely and all the resources will be used in order to achieve these defined goals.

• Personnel/ staff: People are the main component of any organization because works are done through and by the people. Staffs are one of the important resources of organization which are used to achieve the organizational goal. Therefore proper recruitment, selection, training and control of the people become very necessary.


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Office Management• Means and resources: Means are the tools like materials,

machines, furniture, methods with the help of which activities are done. Tools and resources become very necessary to perform any organizational activities.

• Information: This is the age of information and it has become very important resource for the organization nowadays. Therefore every office has to involve in collection, recording, analyzing, and communication of these information for the smooth flow of activities.

• Managerial functions or process: It involves the function of planning, organizing, directing, controlling etc.

• Environment: The activities of every organization depend upon the environment where it is operating which can be internal as well as external. Internal environment involves staffs, rules and regulations, culture, policies etc. inside the organization and external involves political, economic, technological situations etc.


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Functions of ManagementThere are five primary functions of management. These are: Planning, Organizing, Staffing, Directing, Controlling. The controlling function comprises of co-coordinating, reporting and budgeting, and hence Luther Guelick coined a word ‘POSDCORB’, which generally represents the initials of these seven functions.Planning: It involves defining an organization’s goals, establishing an overall strategy for achieving these goals, and developing comprehensive hierarchy of plans to integrate and coordinate activities. Decision-making is a part of planning which involves selecting a course of action from a set of alternatives. Therefore planning is the act of deciding in advance what to do in the future.


05/02/2023 M. K. Islam / ME 359

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Functions of management• Organizing: It includes determining what tasks are to be

done, who is to do them, how the tasks are to be grouped, who reports to whom, and at what level decisions are made. Specifically, organizing involves determining how activities and resources are to be grouped.

• Directing: The basic function office management is motivating, commanding, leading and activating people. The willing and effective cooperation of employees for the attainment of organizational goals is possible through proper direction. This direction is important managerial function in that it helps in building sound industrial and human relations besides securing employee contribution.


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Functions of management• Controlling: To ensure the things are going, as they

should, management must monitor the organization’s performance. Actual performance must be compared with the prescribed goals. The process of monitoring, comparing, and correcting is what we mean by controlling function.

• Staffing: Staffing is the function of hiring and retaining a suitable work force for the enterprise both managerial as well as non-managerial levels. It involves the processing of recruiting, training, developing, compensating and evaluating employees and maintaining the workforce with proper incentives and motivations.


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Functions of management• Coordinating: In an organization there are varieties of activities

having different natures. If these activities performs independently than the common goal could not be achieved. Therefore to unite these different activities to achieve the common goal coordination becomes very essential. Coordination helps to integrate the activities together to achieve the common goal through effective communication and support.

• Reporting: Reports are the written statements of the office activities which are submitted to the supervisor by their subordinates. The managers are responsible for keeping track of these activities and preparing the report.

• Budgeting: Budgets are the estimates of expected expenses and income which are expressed in the monetary terms. When the manager of the office involves in planning the expenses and income of the organization, he is said to be involved in budgeting.


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ManagerA person responsible for controlling or administering an organization or group of staff.Managers at different levels: Large organizations typically have a number of levels of management; the most common view considers three basic levels: top, middle and first line managers.

• Top managers• Middle mangers• First line managers


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Manager

Top managers> relatively small group of executives > manage the overall organization> establish its goals, overall strategy, and operating policies> represent the organization in external environment> bear major responsibilities

Middle managers> largest group of manager> primarily responsible for implementing the policies and plans > supervise and coordinate the activities of lower level managers.

First Line managers> coordinate and supervise the activities of operating employees> spend a large proportion of their time supervising subordinates


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ManagerM. K. Islam / ME 359

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ManagerManagers at different areas of organizations: Managers work in various areas within the organization which may include marketing, financial, operation, human resource, administrative and many more.• Marketing managers: Marketing manager works in areas

related to the marketing function- getting consumers and clients to sale the organization’s product or services. These areas include new product development, promotion, and distribution.


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Manager• Financial managers: Financial managers deal primarily

with an organization’s financial resources. They are responsible for the activities such as accounting, cash management, and investments.


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Manager• Operations managers: Operations managers are

concerned with creating and managing the systems that create an organization’s products and services. Typical responsibility of operation managers includes production control, inventory control, quality control, plant layout, and site selection.


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Manager• Human resource manager: Human resource managers

are responsible for hiring and developing employees. They are typically involved in human resource planning, recruiting and selecting employees, training and development, designing compensation and benefit systems, formulating performance appraisal systems, and discharging low performing and problem employees.

• Administrative managers: Administrative or general managers are not associated with any particular management sphere. Administrative managers tend to be generalists; they have some basic familiarity with all functional areas of management rather than specialized training in any one area.


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Managerial SkillsManagers need a number of skills if they are to succeed. The most fundamental management skills are technical, Human, Conceptual, Design and time management skill.• Technical skill: Technical skills are the skills necessary to accomplish or

understand the specific kind of work being done in an organization. Project engineers, physicians, and accountants all have the technical skills. They get this skill from education and experience. Technical skills are especially important for first line managers. (Mechanics work with tools, so their supervisor should have the ability to teach them how to use the tools)


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Managerial Skills• Human Skill: For obvious reasons the manger needs the

interpersonal skills- the ability to communicate with, understand, and motivate individuals and groups. A manager must be able to work with subordinates, peers, and those at top level also. They should also be able to work with suppliers, creditors, customers, investors and other outsiders.


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Managerial Skills• Conceptual skills: Conceptual skills depend on the

manger’s ability to think in the abstract. Managers need the mental capacity to understand the overall workings of organization and its environment, to grasp how all the parts of the organizations fit together, and to view the organization in holistic manner.

• Design Skill: Managers must have the valuable skill of being able to design a workable situation to the problem in the light of the realities they face. Design skill is the ability to solve problems in ways that will benefit the enterprise.


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Managerial SkillsM. K. Islam / ME 359

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Role of an Office ManagerM. K. Islam / ME 359

• Acts as an agent: He is responsible to implement the plans and policies made by the top level and support their decision.

• Acts as Information handler: managers have to handle the information so they are responsible to collect the information, analyze them and provide them to necessary department as and when necessary.

• Acts as Decision maker: Decision making is the act of choosing the best alternative among the options and this task is also performed by the managers.

• Acts as an entrepreneur: these are the people who have to initiate new ideas and motivate other members to work for that idea.

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Role of an Office ManagerM. K. Islam / ME 359

• Acts as a conflict handler; whenever any kind of conflict or disagreement arise office managers should solve those conflict for smooth functioning.

• Acts as an advisor: As staff managers he can act as an advisor for other departmental head.

• Acts as a personnel head: He is responsible to recruit, select, train, and control the personnel.

• Acts as a public relation executive: He should maintain good relation with the public.

• Acts as controller: he is the person who should look at the works if they are being performed as desired or not if not than controlling should be done.

• Acts as communicator and coordinator: He is the person who handles all the information and communicates to the necessary department. He is also responsible to coordinate the activities.

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Management: An art or scienceM. K. Islam / ME 359

The management is the oldest art and the youngest science

Management as an art: It has been propounded that managers are born not made. It is an inherent trait and it cannot be learned by formal training or knowledge. It is similar to being a painter or poet. There are a no of cases in which some people have become successful without having been specifically educated for the profession. They have depended upon intuition and experience rather than formal education.

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Management as a science: Management may not exact science, but the application of scientific methods to management problems has proved to be effective. Mathematical techniques have been successfully applied in problems involving inventories, service facilities, assignment of jobs to machines for optimal results, optimal allocation of scarce and limited resources to different projects etc.The argument of management being an art was rejected by scientific management pioneers of Fredrick W. Taylor, Henry Gantt, Henry Feyol , Frank and Lilian Gilbreth who believed that the management process could be translated into a set of methodologies and techniques which can be learned and communicated.

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In the opinion of a Russian management expert, D Gvishiani ‘the managerial activity will always remain a creative field, a field of art even though it is becoming more and more scientific’.

Hope you will be a good manager in future

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Thank You


introduction of industrial management

Leadership & Management