ME413: Industrial Management - Yogesh Kulkarni

Unit 1 : Management Concepts

Lecture 1

Management

Introduction

What is Management?

Encompasses an array of different functions undertaken toaccomplish a task successfully. Process of designing and maintaining an environment in

which individuals, working to gather in groups, efficientlyaccomplish selected aims. Many approaches varying from a problem to problem

solving style to the change. Each approach has its own limitations and advantages. Management is all about getting things done.

Aspects of Management

Field of Study

Management principles, techniques, functions, etc Profession/Consultancy

Team or Class of people

Individual who performs managerial activities Group of persons

Process

Managerial activities Planning, organizing, staffing, directing, controlling

Nature of Management

Is it Managerial or non-Managerial?

Assembly-line workers performing operative tasks such astightening bolts? Football players block, and tackle? President of a company planning for a new order? Coach studying opponents strengths-weaknesses to decide

strategy?

A manager is a person who works through other people(subordinates), and brings together their efforts to accomplishgoals. S/he also uses non-human resources such as money andmaterial.

Q&A: What is your Management Idea?Definition?

Write down and speak up? One in each Column?

How management happens in a company, institute, game,rock-band? How division of work happens? Why to divide? Who should command? Levels or flat?

Lecture 2

Established definitions

F.W. Taylor

Art of knowing what you want to do and then seeing that it isdone the best and cheapest way

Henry Fayol

To Manage is to forecast, to plan, to organize, to command, toco-ordinate and to control

Peter Drucker

Management is work and as such it has its own skills, its owntools and its own techniques

Koontz H. - looks most appropriate to me

Management is the art of getting things done through and withpeople

Why are we studying Management?

The need and importance of Management Principles

To increase efficiency To crystallize the Nature of Management To train and Develop Managers To influence Human Behavior To improve research To attain Social Objective

Problems in studying management

Semantic problems in management literature. Contributions from different disciplines. Misunderstanding of principles.

Functions of Management

Planning (P) Organizing (O) Staffing (S) Directing (D) Controlling (C) Coordinating (C)

So, P-O-S-D-C-C. More elaboration later. Some consider only4.

One size fits all?

What changes?

Social scenario: The aspects of culture that influencenorms and values Economic scenario: The concept to availability,

production, and distribution of resources within a society Political scenario: The impact of political institutions

on individuals and organizations

ExamplesHow these 3 aspects (Social-Economic-Political, SEP) affect,say...

Management of Traffic

What are Social aspects: school district, hospitalsnearby, uneducated. What are Economic: More cars, than bicycles. or

no-tar roads. Political scenario: Democratic decisions for land for

roads, bridges.

Examples contdHow these 3 aspects (Social-Economic-Political, SEP) affect,say...

Management of

What are Social aspects: What are Economic: Political scenario:

Management: Art or Science?

Science Methodical, Empirically derived Cause and effect relationship Universal applicability

Art Human angle Creativity

As Science it provides processes and as Art it tells how to getthem done!!

Confusing-Overlapping ideas

Write down and speak up? One in each row? Who is a Manager? What are his/her characteristics?

Examples? Who is a Leader? What are his/her characteristics?

Examples? Who is an Administrator? What are his/her

characteristics? Examples?

Managerial Roles (What Managers Do) Interpersonal roles Figurehead role: Outward relationship Leader role: Downward relation Liaison role: Horizontal relation Informational Roles Monitor Role: Collects information about internal

operations and external events. Disseminator Role: Transforms information

internally Spokesman Role: Public relations Decisional Roles Entrepreneurial Role: Initiates changes, assumes

risks, transforms ideas into useful products. Disturbance Handler Role: Deals with problems. Resource Allocator Role: Distributing resources Negotiator Role: Bargains with suppliers, customers

etc

Management Levels

Top-level management (president, executive vicepresident) Middle managers (chief engineer, division head etc.) First-line managers (foreman, supervisor, section chief)

Managerial Skills

Managers need three types of skills:

Technical: Specific sub-ject related skills suchas engineering, account-ing, etc Interpersonal: Skills re-

lated to dealing with oth-ers and leading, motivat-ing, or controlling them Conceptual: Ability to

discern the critical fac-tors that will determine asorganizations success orfailure. Ability to see theforest in spite of the trees

Managerial Skills needed at different levels

Technical skills are the managers ability to understandand use techniques, methods, equipment, and procedures. Most important at the lower management level. Foremen,

for example, must know how to operate the machinerytheir subordinates use. As a manager moves up the management hierarchy,

technical skills become less important relative to theconceptual and people skills. Technical skills are the most difficult to transfer from one

industry to another. Conceptual and people skills are more transferable. The higher a manager is in the management hierarchy, the

more important it is to have knowledge in many areas.

Managers do not have to be inborn

Administration

What is Administration?

Comes from the Latin word minister meaning servantor slave. So, identification, maintaining, motivating, controlling,

and the unification of human and material resources toachieve a common goal. Nwankwo, 1987, careful and systematic arrangements

and use of resources for the achievement of the specificobjectives Gulick & Urwick, process of getting things done

through the effort of others in goal achievement.

Its Relationship

How Management and Administration aredifferent? Management and administration used interchangeably;

however, they are two different levels of the organization. The administration is the top level of the organization

with the decisive functions. They are responsible for determining the policies and

objectives of the organization or the firm. Management, on the other hand is the middle level

executive function. They implement the policies andobjectives as decided by the administration. Management is about directing, improving, innovating in

order to reach the organizations goal of profit-maximizing

Eight categories of differences Objectives Success criteria Resource use Decision making Structure Roles Attitudes

Summary of the differences

Category Management Administration

Objectives General execution Broad strategicaims

Success Criteria Success seeking Mistake avoidingResource Use Primary task Secondary taskDecision Making Many decisions Few decisionsStructure Max delegation Limited delegationRoles Protagonist ArbitratorAttitudes Emphasis on re-

sultsOn procedure

Skills Figures Reports

What is Leadership? Burns (1978), says that leadership is a process of doing

something for some one by mobilizing persons withcertain motives and values, various economic, political,and other resources in a context of competition andconflict, in order to realize goals independently ormutually held by both leaders and followers. Musaazi (1982), believes that leadership is the process

of influencing the activities and behaviour of anindividual or a group in efforts towards goal achievementin a given situation. Rost (1991), believes that leadership is an influence

relationship among leaders and followers who intend realchanges that reflect their mutual purpose. Whats common in these definitions?

Basis for Leadership? By Law (Legal Leadership), examples? By Tradition (Traditional Leadership), examples? By Charisma (Charismatic Leader), examples? No legal

power but command

Lecture 3

Evolution And Development Of ManagementThoughts

History of Management Thought

Pre-Scientific Era Ever Since Down Of civilization. Administration of mohenjodaro & harappa Cities Of

ancient aryan in 2000 B.C. Buddha order and the sangha Organizations of public life in ancient Greece. Organization of roman catholic church. Organization of military forces. Chanakya niti

Evolution of Management Theory Early management theory consisted of numerous attempts

at getting to know these newcomers to industrial life atthe end of the nineteenth century and beginning of thetwentieth century in Europe and united states. As you study these approaches keep one important fact in

mind. The managers and theorists who developed this

assumption about human relationships were doing so withlittle precedent. Large scale industrial enterprise was very new. Some of the assumption that they made might therefore

seem simple or unimportant to you, but they were crucialand to Ford and his contemporaries.

Classification of Approaches Classical:

Scientific

Administrative

Bureaucratic

Behavioral:

Group Influences

Maslows need theory

Theory X and Theory Y

Howthorne studies

Modern:

System

Contingency

Theory Z and Quality Management

Classical

Scientific: Focuses onthe individual workersproductivity Administrative: Fo-

cuses on the functions ofmanagement Bureaucratic: Focuses

on the overall organiza-tional system

Scientific Management

Scientific

Four Principles by F W Taylor Develop a scientific approach for each

element of ones work Scientifically select, train, teach and de-

velop each worker Cooperate with workers to ensure that

jobs match plans and principles Ensure appropriate division of labor Three Areas of Focus Task Performance Supervision Motivation Two Management Practices Piece-rate-incentive system Time and motion study

Scientific Management, by Others

Henry Gantt:

Most famous for developing the Gantt chart in the1910s.

Implemented a wage incentive programme

Frank Gilberth:

Specialized in time and motion studies to determinethe most efficient way to perform tasks.

Used motion pictures of bricklayers to identifiedwork elements (therbligs) such as lifting andgrasping

Lilian Gilberth:

A strong proponent of better working conditions asa means of improving efficiency and productivity.

Bureaucratic

Max Weber A German sociologist and historian A bureaucracy is a highly structured,

formalized and impersonal organiza-tion. Focuses on the overall organizational

system. Need to function on a rational basis Five Principles Division of labor Hierarchy of authority Rules and procedures Impersonality Employee selection and promotion Based upon Firm rules, Policies and procedures A fixed hierarchy, a clear division of la-

bor

Administrative Management

Administrative

Five management functions Planning Organizing Commanding Coordinating Controlling Theorists Henri Fayol (1841-1925): Born in

France, worked for a coal-mining busi-ness, developed 14 administrative prin-ciples. James D. Mooney (1884-1957): Mem-

ber of General Motors top team. Luther H. Gulick (1892-1993): Ap-

plied administrative management the-ory principles to government.

Fayols Administrative Principles Division of Work:Employees specializes, output can

increase Authority: Managers must have the authority to give

orders (with responsibility). Discipline: Discipline must be upheld in organizations Unity of Command: Employees should have only one

direct supervisor. Unity of Direction: Teams with the same objective,one

manager, using one plan. Subordination of Individual Interests to the

General Interest: The interests of one employee shouldnot be allowed to become more important than those ofthe group. Remuneration: Employee satisfaction depends on fair

remuneration for everyone, financial and non-financialcompensation.

Fayols Administrative Principles..contd Centralization: How close employees are to the

decision-making process. Need appropriate balance. Scalar Chain: Aware of where they stand in the

organizations hierarchy Order: Workplace facilities must be clean, tidy and safe. Equity Managers should be fair to staff at all times, both

maintaining discipline as necessary and acting withkindness where appropriate. Stability of Tenure of Personnel: Managers should

strive to minimize employee turnover. Initiative: Employees should be given the necessary level

of freedom to create and carry out plans. Esprit de Corps: Organizations should strive to

promote team spirit and unity.

Lecture 4Behavioural The behavioural school of management emphasized what

the classical theorists ignored. Acknowledged the importance of human behavior in

shaping management style.

Theorists Mary Parker Follett Douglas McGregor Chester Barnard Elton Mayo

Contingency Management

Theory There is no One Best Way to manage all the situations. Also known as Situational Theory. Developed by managers, consultants, and researchers who

tried to apply the concepts depending on various Internaland External factors

Contribution Of Various Management Gurus

Maslows Hierarchy

Follett on Effective Work Groups

Four Principles of Coordination Coordination requires that people be in direct contact

with one another. Coordination is essential during the initial stages of any

endeavor. Coordination must address all factors and phases of any

endeavor. Coordination is a continuous, ongoing process.

McGregors proposed styles

Theory X Most people dislike work and they avoid it when they can. Coerced and threatened with punishment before they

work. Avoid responsibility and have little ambition.

Theory Y Work is a natural activity like play or rest. Capable of self direction and self control. Committed to organizational objectives

Elton Mayos views Aimed to understand how psychological and social

processes interact with the work situation to influenceperformance Work represents the transition from scientific

management to the early human relations movement. Emphasized on workers themselves and needs to belong to

a group

Howthornes experiments (1924 1932)

Howthorne Effect

Workers perform and react differently when researchersobserve them. Productivity increased because attention was paid to the

workers in the experiment. Phenomenon whereby individual or group performance is

influenced by human behavior factors

Joan Woodwords Research

Discovered that a particular management style is affectedby the organizations technology. Identified and describedthree different types of technology: Small-batch technology Mass-production technology Continuous-process technology

Lecture 5

Principles Of Management

What are Principles?

Management principles are the statements of truth which act asguidelines for taking managerial decisions.

Goal oriented Universal General Guidelines Formed by practice and experimentation Flexible Cause and Effect relationship Dynamic nature of Principles Social Process Multidisciplinary Management: Science as well as an Art

Goal Orientation of Management

Organization is typically formal and there are specificgoals/objectives like:

Organizational objectives: Reasonable profits, Survivaland solvency of the business, i.e., continuity, Growth etc Personal objectives: Fair remuneration, Reasonable

working conditions, Growth Social objectives: Quality of goods and services at fair

price to consumers, Honest and prompt payment of taxesto the Government, Conservation of environment andnatural resources.

Goal Orientation of Management

Management has no justification to exist without goals. Management goals are called group goals or

organisational goals. The basic goal of management is to ensure efficiency and

economy in the utilization of human, physical andfinancial resources. The success of management is measured by the extent to

which the established goals one achieved. Thus, management is purposeful.

Universality of Management

Principles of management are universal in the sense that thesecan be applied in different situations,for different sizes of groupsetc e.g. .

Business: consultants advising portably Government : Some regulations are across countries Military: Tactics could be similar, Sun Tzu, Chanakya Hospitals: process similarity

Although universal in some aspects but not for all:

Cultural nuances, Government regulations Economic situation, Technological Advancements

Dynamic Nature of Principles

Principles of management are not rigid or static. Rather they change with environment. These are diagnostic and flexible guidelines and are not

absolute truth. Continuous research is modifying many golden principles

by developing new principles. Nothing is permanent in management.

Social Process

Human factor is the most important element in management.

Management is done by people, through people and forpeople. It is social process because it is concerned with

interpersonal relations. According to Appley, Management is the development ofpeople not the direction of things. A good manager is aleader not a boss. It is the pervasiveness of humanelement which gives management its special character as asocial process

Multidisciplinary

Management has to deal with human behavior underdynamic conditions. Therefore, it depends upon wide knowledge derived from

several disciplines like engineering, sociology, psychology,economics etc The vast body of knowledge in management draws

heavily upon other fields of study.

Others

Continuous process: The cycle of management continuesto operate so long as there is organized action for theachievement of group goals. Intangible: Management is an unseen or invisible force. It

cannot be seen but its presence can be felt everywhere inthe form of results. However, the managers who performthe functions of management are very much tangible andvisible. Art as well as Science: It contains a systematic body of

theoretical knowledge and it also involves the practicalapplication of such knowledge. Management is also adiscipline involving specialized training and an ethicalcode arising out of its social obligations.

Managerial Styles

Directive Democrat: Makes decisions participatory;closely supervises subordinates Directive Autocrat: Makes decisions unilaterally; closely

supervises subordinates Permissive Democrat: Makes decisions participatory;

gives subordinates latitude in carrying out their work Permissive Autocrat: Makes decisions unilaterally; gives

subordinates latitude in carrying out their work

In what situations would each style be appropriate?Inappropriate? Military, R & D, Home, Edu institute

Management Personalities

Administrators Time

Servers Climbers Generals Supporters Nice Guys Bosses

Administrators

Work company rule and regulations Live by book Very good employees Strong loyalty Work with company for very long

time Work strictly according to the de-

marcation of departments Expect every thing in black and

white Very logical and very practical Have good planning skills Always respected by their seniors

and juniors

Time Savers

Old managers who have losttheir interest Take necessary steps to avoid

stress Low motivated Conflict at all levels are avoided Decisions are avoided Personals status is important Have very good management ex-

periences They consider themselves father

of organization They can build good team

Climbers

Driven by extremely personalambitions Sacrifice every thing, them-

selves, family etc. Want to achieve good position

by fair or unfair means Become de-motivated if fail They learn from their staff and

push them back

Generals

Usually younger persons Like to rule and manipulate

power Work hard and guide their sub-

ordinates Social and mix at all levels Status is important Strong willed individuals Highly optimistic

Supporters

They maintain balance views about worldorganization, subordinates, themselves Good facilitators Knowable in applying techniques Work through their people Delegate power and responsibilities to

their subordinates. Highly motivated Good compromisers and flexible Determined and patient to achieve targets

Nice Guys

Weak willed persons Interested to develop links with

seniors and subordinates Do not criticize to others Poor performers Very few decisions are made Yield to pressure from any

source

Bosses

Power hungry Very rude and impatient Operate in administrative modes

, plying things by books where itsuits them Drive their subordinate but not

themselves Extremely inflexible, mistaken

as strong minded people Strong talkers Terrorize their subordinates and

peers Creating conflict for their powers

Lecture 6

Functions of Management

Functions of Management Planning (P) Organizing (O) Leading (C) Controlling (C)

So, P-O-L-C

Planning Planning means preparing a firm to cope with the future. It involves setting the firms objectives over different time

periods and deciding on the methods of achieving them. Setting Objectives Because a firm is an economic and social organization, its

objectives are both economic and social.

Economic objectives are An economic objective of most firms is to produce and

sell goods or services that satisfy customer wants at aprofit to the firm. To maximize profits to achieve a 15 percent rate of return

on investment . To increase market share by 10 percent

Social objectives are Large corporations especially recognize that cooperation

in attaining social objectives is in their long-run interest.. To provide employment opportunities for the

disadvantaged unemployed, to support the arts . To produce socially relevant products , Bottom of

Pyramid

Period of PlanningPlans can be long-range, intermediate-range, or short-range

Long Term

Long-range planning for Gulf Oil, Xerox Corporation, andUnited Airlines may cover a period of 10 or more years Long-range planning for a small apparel store may cover a

period of six months to one year. Two types: Strategic planning is concerned with a firms

long-range future and its overall strategy of growth.Looking at competition...

Operational planning is planning for the day-to-daysurvival of the firm Intermediate-range planning may range from a month to

a year Short term planning would deal with daily chores.

OrganizingAfter planning, next step is organizing. The process oforganizing consists of following steps

Determining and defining activities to achieve goal. Grouping of activities into convenient and logical group. Assigning duties to people at various levels Delegating authority to people at different level Defining and fixing responsibility for performance

DirectingIt consists of :

Issuing orders and instructions Supervision of Work Motivation i.e. creating willingness to work Communication with employees Leadership or influencing the behavior of employees.

Directing Assume that we have developed plans, created an

organization structure, and staffed it. It now must be stimulated to action through the

management function of directing. Directing means encouraging subordinates to work toward

achieving company objectives. It sometimes is calledleading, guiding, motivating, or actuating. A managers opinion of subordinates affects how they will

be directed. Managers who think subordinates are lazy, irresponsible,

and immature rely on rewards and punishments and useformal authority to get things done. Managers who think subordinates are responsible and are

striving to achieve goals will likely let them work. The amount and type of directing that are needed depend

largely on the managers view of his or her subordinates.

ControllingIt consists of:

Establishing standards for measurement of performance Measuring performance and comparing with standard Finding reasons for variation among different employees

performance Taking corrective action for attainment of goal

Review Of Different School Thoughts

Empirical Approach Study of managerial experiences and cases(mgt) Contributors: Earnest Dale, Mooney & Reiley, Urwick. Features Study of Managerial Experiences Managerial experience passed from participationer

to students for continuity in knowledgemanagement. Study of Successful & failure cases help practicing

managers.

Theoretical research combined with practicalexperiences. Uses Learning through experience of others Limitations No Contribution for the development of

management as a discipline Situations of past not the same as present.

Human Behavior Approach

Organisation as people Interpersonal Behavior Approach - Individual

Psychology Group Behavior Approach - Organization Behavior Contributors: Maslow, Herzberg, Mc Gregor, etc. Features Draws heavily from psychology & sociology. Emphasis on greater productivity through

motivation & good human relations Motivation, leadership, participative management &

group dynamics are core of this approach. Uses Demonstrates how management can be effective by

applying knowledge of organization behavior. Limitations Talks about organisation & organisation behaviour

in vague terms.

Social System Approach

Understanding the behaviour of groups & individuals Contributors: Pareto, Chester Barnard Features Social System, a system of cultural relationship Cultural relationships of social groups working

within the organization. Uses Organizational decisions should not be based on

desires of one group alone but should reflect theinterests of all the parties. Limitations Broader than management & its practice

Decision Theory Approach

Manager : Decision maker, Organization : Decision making unit Contributors: Simon, Cyert, Forrester, etc. Features Management is decision making Increasing efficiency - the quality of decision MIS, process & techniques of decision making are

the subject matter of study working within theorganization. Uses Tools for making suitable decisions in organizations Limitations Does not take the total view of management Decision making - one aspect of management

Mathematical Approach

Management- logical entity Actions- Mathematical symbols, Relationships and

measurable data. Contributors: Newman, Russell Ackoff, Charles Hitch, etc Features Problem Solving mechanism with the help of

mathematical tools and techniques. Variables in management : quantified. Tools - Operations research ,simulation etc. Uses Provided Exactness in management discipline. Limitations Not a separate school Technique in decision making.

Operational Approach

Management is a process. Concentrates on the role and functions of managers Contributors: Fayol, Lyndall Urwick , Taylor. Features Functions of managers remain same Framework of management Principles of management Uses

Flexible & practical Limitations Not universal.

ReferencesWhere did I get some of this info from? NPTEL - Management Science I ( IIT-Madras) Dampson Dandy George, Trends in Education & School

Management in Ghana, Univ of Education, Winneba Patil Sarkissian, Jan 2002, The Differences Between

Administration and Management Gultekin, Engineering Management Shamaile Nabi,Principles of Management and Scientific

Management Sam C. M. Hui, Engineering and technology

management Tanu Chadha, Management Richard Daft, Management Robert Lussier, Management Fundamentals Griffin Moorhead, Group Dynamics Boundless Lecture Slides Plunkett, Cengage Learning http://en.wikiversity.org/wiki/Principles of marketing Introduction to Marketing, Norlina Ali Examples of Research in Marketing (2015). Marketing

Research Tutorial

Copyleft Send suggestions to yogeshkulkarni@yahoo.com

Lecture 1Management

Lecture 2AdministrationIts Relationship

Lecture 3Evolution And Development Of Management ThoughtsScientific ManagementAdministrative Management

Lecture 4Contribution Of Various Management Gurus

Lecture 5Principles Of Management

Lecture 6Functions of ManagementReview Of Different School Thoughts

References