0% found this document useful (0 votes)
9 views20 pagesindustrial management ( 10 and 16 mark)
Tft
Uploaded by
suganthansuganth7Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
0% found this document useful (0 votes)
9 views20 pagesindustrial management ( 10 and 16 mark)
Tft
Uploaded by
suganthansuganth7Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
/ 20
4.44.3, Henry Robinson Towne (1844-1924)
He was the president of the famous lock manufacturing company «
advised the combination of engineers and economists as industrial mango, “0,
of qualities together with at least some skill as an accountant is esse, a8, This,
management of industrial workers. pt, ‘
Pre-classical contributors were no doubt pioneers of management thoy, f
of their contributions on the industry as a whole was insufficient, a But 1,
groundwork for the major management theories which arised later. The pe they
science of management did not occur until the last decade of the 19” century, Binnin,
4.45. CLASSICAL APPROACHES TO THE STUDY OF MANAGEMENT
‘The classical management theory developed during the Industrial Reyoly
problems related to the factory system started to appear. Managers were ie Whe,
employees or deal with the increased labour dissatisfaction, so they began to toto iE
result, the classical management theory developed from efforts to find the “on, Solutio,
perform and manage tasks, A classical management theory is made up of three BY
Sci .
(ii) Administrative management theory
ic management theory and
4484. Scientific Management Theory
‘Scientific Management is defined as the use of the scientifie method to define
ora job to be done. The scientific management theory developed due oc.
fficiency. The emphasis was trying to find the best ay:
his ideas.
jon
taylor pioneered the tine
is motions, The
to determine Introduction to Management 12
6. Henri Mintzberg (1939 - Present):
Mintzberg is a modern-era theorist who critiqued Fayol's work as incomplete and
impractical. He expanded upon the P-O-L-C (Planning-Organising-Leading-Controlling)
framework by focusing on the roles that managers assume within the organization. The impact
of his work has been substantial and is discussed as a separate section of Classical Management
Theory.
41.18: PRINCIPLES OF TAYLOR'S (SCIENTIFIC) MANAGEMENT THEORY
~ Fredrick Winslow Taylor joined as a labour at Midvale Steel Company in U.S.A in 1878.
He became a chief engineer in the year 1884 in the same company and later on served with the
Bethlehem Steel Works. He published journal papers on “Price rate system” and “Shop
management”. He published a book on “Principles of scientific management” in 1911.
Taylor attempted a more scientific approach to management as well as the problems and
the approach was based upon four basic principles.
. Study each part of the task scientifically and develop the best method to perform it.
2. Carefully select workers and train them to perform a task using the scientifically
developed method.
. Cooperate fully with workers to ensure they use the proper method.
S
Divide work and responsibility. So, the management is responsible to plan work
methods using scientific principles and workers are responsible for executing the work
accordingly.
4.46.1. Elements of Scientific Management
Taylor conducted various experiments at the work place to find out how human beings
could be made more efficient by standardizing the work. The following are the elements or
features of Taylor’s scientific management. z
1. Planning the Task:
(i) Taylor suggests the separation of planning from actual doing.
(ii) Taylor says that the supervisor should do the planning.
‘The workers only concentrate on doing the work.
2, Scientific Task and Rate-Setting (work study):
Work study may be defined as the systematic, objective and critical examination of all
factors governing the efficiency of any specified activity in order to obtain the effective
improvement. It can be determined by method, motion, time and fatigue studies.
(a) Method study:
“The management should try to ensure that the plant is laid out in the best manner and it is
“equipped with the best tools and machinery, The possibilities of eliminating or combining
certain operations may be studied. 1.24 Industrial Management
Detailed instructions and constant guidance of the workers.
Establishment of harmonious relationship between workers.
Better utilization of various resources.
Satisfaction of the needs of customers by providing higher quality products at lower
Price.
eens
1.17. PRINCIPLES OF FAYOL’S (ADMINISTRATIVE) MANAGEMENT THEORY
Henri Fayol identified 14 Principles of Management based on his management
experiences. He believed that these principles are essential to increase the efficiency of the
management process. These principles provide modern-day managers with general guidelines
‘on how a supervisor should organise his/her department and manage his/her staff. Henry Fayol
is considered the father of Modern theory of general and Industrial Management. Although
later research has created controversy over many of the following principles, they are still
widely used management theories.
Fayol’s contributions are published in his famous book entitled “The general and
industrial administration”. Fayol’s famous book falls into two parts. The first part concerned.
__ with the theory of administration in which Fayol divided the total industrial activities into six
categories which are given below:
1. Technical (Production, Manufacture).
2. Commercial (Buying, Selling, Exchange).
3. Financial (Search for and optimum use of capital).
4, Security (Protection of property and persons).
5. Accounting (Balance sheets, Cost statistics).
6. Management (Planning, Organising, Coordinating, Directing and Controlling)
‘The second part is concerned with the fourteen principles of management. They are as
follows:
AA. Division of work
2. Authority and responsibility
. Discipline
4, Unity of command
5. Unity of direction
6. Subordination of individual interest to general interest
7. Remuneration of personnel
8. Centralisation :
9. Scalar chain ene
10, Order A
11, Equity
» |
|
Introduction to Management 1.25
12, Stability of tenure of personnel
13. Initi
14. Esprit de corps.
ive and
1. Division of work:
Work should be divided in a proper way with reference to the available time. In general,
workers on the same job and managers on the same duty acquire the ability sureness and
accuracy which increases their output.
2, Authority and Responsibility:
Authority: It is the power given to a person to get work from his subordinates.
Responsibility: It is the kind and amount of work expected of from a man by his superior.
One of the essential elements of a good management is the delegation of authority to the low-
level management and fixing responsibility on its own.
3. Discipline:
Discipline is the obedience to organisational rules and employment agreement. It is
essential for the smooth running of organisation. According to Fayol, discipline requires good
superiors at all levels, clear and fair agreements and judiciously enforced penalties for
violations.
4. Unity of command:
An employee must receive orders and instructions from one supervisor only. Multiple
commands will cause conflicts and confusions. A sound management should avoid dual
commands.
5. Unity of direction:
Unity of direction signifies each group of activities having the same objective with one
head and one plan. Al! groups should coordinate and work together to achieve the common
goal,
6. Subordination of individual interest to general interest:
The interest of every employee is to earn money to mect his personal needs. The general
interest of the organisation is the development and progress of the organisation, The employees
should give primary importance to the general interests of the organization as a whole than his
individual interest. It will lead to effective management of the organisation,
7, Remuneration of personnel:
Remuneration should be fair for both the employees and employers. The wage payment
*Yslems should satisfy the employees.
4, Centralisation:
The organisation is centralized when the power is concentrated with one person. If the
Power is fully distributed to subordinates, the organisation is fully decentralized. For the (126 } Industrial Managem,
fective management of people, decer
quick decision on problems.
ization is necessary. Decentralization helps to
9. Scalar chain:
states that instructions and orders should be sent from ,
Management to bottom management.
10. Order:
In any organisation, people and materials should be in the right place at the right time
that materials can be easily taken out and people easily located and also saved time. There ;
following two types of order:
Materials orders “A place for everything and everything in its place”.
Social order: “A place for everyone and everyone in its place”,
11. Equit
Equity refers the treatment of employees equally. Equal treatment of the employees help
to achieve the organisational goals,
12, Stability of tenure of personne
A high employee turnover rate is not good for the efficient functio:
ning of an
isation.
org:
13. Initiative:
Itis concerned with the tl
with new ideas, they must be en
employees,
g and execution of a plan. When employees come forwa'!
couraged by superiors, It will create the morale of
14, Espritede-corps:
This refers to union is strenge
/h. Promoting team spirit will build han
the organization, It improves the
mony and unity w
employee morale,
1,18. PRINCIPLES OF WEBER’
A well-known German 5
the ideal of large orga
'S (BUREAUCRATIC) MANAGEMENT THEORY
‘ociologist Max Weber coined th
ations operati ig ona
Organisations were managed on a %
b fe term “bureaucracy” to apply "
nal basis. He discussed that many Europ:
organi f Personal” family basis and that employees were loyal
individual supervisors rather than the organisation, He believed that Sieh aaa should b
»personally managed and a formal organisational structure where specific rules followed 3"
ore important. In other words, he did not think thatthe q
ore imp . tl =
onality. But, he thought that the Rae suet
job and passed from indivi Introduction to Management
2. Charismatic
0
Garannsarelars| Nehru, N.S.C.Bose, Dr.A.P.J. Abdul K:
3. Rational (legal):
Subordinate obedience is based upon the po:
(c.g., police officers, executives, supervisors).
Weber developed the principles of bureaucracy which is a formal system of organisation
and administration designed to ensure both efficiency and effectiveness. A bureaucratic system
of administration is based on the following characteristics:
(i) A well-defined hierarchy:
in the organisation
All positions within a bureaucracy are structured in a way to permit higher positions to
supervise and it controls the lower positions. Positions should be hierarchically arranged so
that the employees should know whom to report and who reports to them. This clear chain of
command facilitates the control and order throughout the organisation.
(ii) Division of labor and specialization:
All responsibilities in an organisation are speci
necessary expertise to do a particular task.
(iii) System of written rules and regulations:
ed so that each employee has the
Organisation must create a well-defined system of rules, standard Operati ng procedures
and norms so that they can effectively control the behaviour within an organisation. Standard
operating procedures govern all organisational activities to provide certainty and faci
coordination.
(”) Impersonal relationships between managers and employees:
Managers should maintain an impersonal relationship with employees so that favoritism
and personal prejudice do not influence on decisions.
(») Selection and evaluation system:
Selection and evaluation of their performance should not be based on “who you know”
but they should be on the basis of their performance or work output.
(vi) Records:
A bureaucracy needs to maintain the complete files regarding all its activities.
149. HUMAN RELATIONS APPROACH TO THE STUDY OF MANAGEMENT OR
BEHAVIOURAL MANAGEMENT THEORY
Management principles developed during the classical period were simply not useful in
dealing with many management situations and they could not explain the behavior of individual
employees, In short, a classical theory ignored employee motivation and behavior, Asa result,
the behavioral theory was a natural outcome of this revolutionary management experiment.
finales Functions of Management- | (eae
ata particular time, Thus, planning ensures that resources are put into action in such a way that
these have been specified.
To guide decision-making:
Planning provides a basis for future oriented decisions. Without planning, business
decisions may become random. Planning creates a better relation among various decisions. It
serves as a framework for making rational decisions.
2.5: STEPS IN PLANNING OR PLANNING PROCESS
Planning is a process. Therefore, it contains number of steps within it. It is not necessary
that a particular planning process or steps are valid for all organisations and all types of plans.
Aplanning process which is suitable for large scale organisation may not be suitable for small
‘organisations. Since, various factors involved into planning process may differ from plan to
plan or from organisation to organisation. The planning processes or steps are mostly applicable
for major programmes. But with minor modifications, the process is applicable for all types of
plans.
The general planning process is given in Figure 2.1.
(i) Identification of opportunities:
Identification of awareness of the opportunity is the starting point of planning. First of all,
we should identify the possible future opportunities and analyse them clearly and completely.
Among them, we have to identify the following:
> Where do we stand?
> What are our strength and weakness?
> What problem we wish to solve and why? and
> What do we expect to gain?
Once, the opportunities are perceived from availability, the other steps of planning are
undertaken.
(ii) Establishment of objectives or goals:
The next step in planning is to establish objectives for the entire organisation and then for
tach subordinate unit. Objectives specify and indicate the results expected.
"> What is to be done?
> Where is the primary emphasis to be placed?
> What is to be accomplished by various types of plans?
Organisational objectives should be specified in all key result areas. Key result areas are
those which are important for the organisation in achieving its objectives. The key result areas
may be profitability, sales, research and development, manufacturing and so on.
___ Initially, overall objectives are set which shape the structure of other subsidiary objectives
in an organisation, Then they are divided into departmental, sectional and individual objectives.
Overall objectives give directions to the nature of all other plans of the major departments, Industrial Mana
Bere
Departmental objectives must confirm the overall objectives. Thus, there will bea hierarchy
of
ives in the organisation.
premises:
assumptions which we should make about the various ele,
work in which plans operate. ‘These premises
ude organisational polices, resources reer
anisation to withstand the environmen
de the total factors in task environment such as Politic
plans and actions, and government polices ete.
The plans are formulated on the basis of both internal and external premises. The nature of
rs at different levels of planning. At the top level, itis, mostly external
ternally focused at the bottom level.
object
(aii) Developing planning
are the
ides the basic frame’
internal premises inc!
\d the ability of the orgs
Planning premises
of environment. It provi
be internal or external. I
types, sales forecasts an
essure, External premises inclu
pre
social, technological, competitors,
planning premises differ
focused whereas it is int
Identification of opportunities
Establishment of objectives.
Developing planning premises
Identification of alternatives
Evaluation of alternatives Functions of Management- 1 Z
cannot be analysed. Some alternatives can be rejected at its preliminary stage itself by ”
considering preliminary criteria such as minimum investment required, matching with the
present business, market conditions, government control, skilled workers, technique available
ete, Only the alternatives which meet the preliminary criteria may be chosen for further detailed
analysis.
(») Evaluation of alternatives:
The alternatives considered for the analysis according to preliminary criteria may be taken
for further evaluation. Each alternative course of action is evaluated on the basis of profitability,
capital investment, risk involved, gestation period etc. It presents a problem because each of
these altematives may have certain advantages and disadvantages. For instance, an alternative
may appear to be most profitable. But, it requires a large cash outlet with slow payback and
another one may be less profitable but it involves less risk factors.
In evaluating the alternatives, sometimes, intangible factors such as public relations,
goodwill of the company, employee morale, personal relations etc., are also be considered.
Moreover, there is no certainty about the outcome of the alternative because it is related with
future and future is uncertain. Thus, the evaluation work becomes more complex. Therefore,
more sophisticated techniques of planning and decision-making have been developed.
(vi) Selecting the best course of action:
After the evaluation of various alternatives, the most appropriate course of action is
selected. If more than one alternative is suitable, then many alternatives may be chosen for
execution. When the situation changes and the selected plan does not provide to be the best,
the other alternative may be tried.
(vii) Formulation of derivative plans:
The derivative plans are formulated on the basis of the major plan. There are several minor
plans required to support and execute the major plan. These plans are known as derivative
plans, The various derivative plans are planning for buying equipment, buying raw materials,
recruiting and training personal, developing new product etc.
(viii) Establishing sequence of activities:
After formulating the basic and derivative plans, the sequence of activities is determined
so that plans are put into action. While formulating derivative plans, a built-in mechanism
should be created for periodic review and updating various plans whenever necessary. The
starting and finishing times are fixed for each piece of work so as to indicate when and within
what time that the work is to be commenced and completed.
2.6, TYPES OF PLANNING”
2.6.1. Plans based on Frequency of Use
Plans can be classified on the basis of their frequency of use, Based on the extent of use,
plans can be of two types: ie :
1. Single-use plans, and 2, Standing plans.
iis
lie
wl
bce vo
pions of Management. I
pf
3.9
completelY satisfied but the managers have considerable thought in making individual
rangement
yp, Personal dignity
Managing implies in achieving enterprise objectives, At the s me time, achieving results
re important means of achieving and it should not violate the d ignity of people. Individual
dignity means that people must be treated without considering their position in the organisation.
All workers from top level executives to bottom level workers are working to attain the
organisational objectives. Each is Unique with different abilities and aspirations but all are
human beings and all deserves to be treated as such.
37, LEADERSHIP STYLES,
The behaviour exhibited by a leader during supervi
leadership style. It can be classified into three
such as autocratic, participative and free rein,
es Autocratic or Dictatorial Leadership
In this type of leadership, the leader takes all decisions without consulting his
subordinates. Full authority is held himself alone. He loves power and never delegates
authority. The subordinates have to follow his directions without any question. The leader uses
threats and punishments to get work from the subordinates as shown in Figure 3.1.
‘ion of followers is known as
types on the basis of how leader uses their power
Autocratic leader
Follower Follower Follower
Figure 3.1 Autocratic leadership
There are three types of autocratic leaders.
(2) Strict autocrat: The leader follows autocratic styles in a strict sense. He follows the
negative motivation for getting work from subordinates.
(0) Benevolent Autocrat: This leader also takes decisions himself but his motivation styles
is positive.
() Incompetent Autocrat: Sometimes, leader adapts autocratic leadership style just to hide
their inabilities i.c., incompetence. But it cannot be used for long time.
Autoctatic leadership style is appropriate where the
(subordinates lack their knowledge of company goals.
Gil) subordinates are inexperienced or lack in training.
(ii) Company endorser fear and punishment as accepted disciplinary techniques, @) 1
Advantag
i) It fac
It provides a strong motivation and to the leader who decades fein
) Less competent subor needed at lower levels.
{v) Itcan yield the po:
Limitations:
ne under conditions of stress,
(i) Employee morale will be low.
(ii) Absence of leader will affect the output heavily.
(iii) Dissatisfaction will develop among employees.
(iv) Employee turnover will be more.
(¥) Full potential of subordinates and their creative ideas are not
() One way communication without feedback leads to misunderstanding
communications breakdown.
3.72, Participative or Democratic Leadership
In this type of leadership, the subordinates are consulted and their feedback is taken
decision making process. Decisions are taken after group discussions. Therefore, thea
is decentralized. The participative leader attaches high importance to both work and peop
provides freedom of thinking and expression,
Democratic leader
Follower
Follower Follower
Figure 3.2 Democratic leadership
Participative Jeadership is best suited where the
> leadership truly desires to hear the ideas of his employees before making 4°
> organisation has communicated its goals and the objectives to the subordim®
the subordinates have accepted them
> workers are reasonably knowledge and experienced,
> time for task completion allows for the Participation,
> subordinates desire active and true involvement in matters that affect i”
el pajons of Management: I “
Ful
avontages
() The subordinates are motivated by pa
also increase job satisfaction,
pation in decision-making process. It will
Absence of leader does not affect the output,
(ii) Labour absenteeism and turn-over will be minimum.
(iv) The quality of decision is improved.
(v) The leader multiplies his abi
Limitations:
()_Itis time-consuming and may result in delays in decision-making.
If subordinates are lazy and avoid work, then control ing them is difficult.
ies through the contribution of his followers.
d at lower level of management and production
(iv) Some leaders may be uncomfortable with this approach because they feel that there
is a reduction of power and control over labour.
(v) Itmay yield positive results when subordinates prefer minimum interaction with the
leader. -
(vi) The leader requires a considerable communicating and persuasive skill.
373. Laissez-faire or Free-rein Leadership
In this type, a complete freedom is given to the subordinates so that they plan, motivate,
‘ontrol and otherwise, be responsible for their own actions. Leader does not take a part in
‘ksision making process. The authority is completely decentralized.
Free-rein leader
or
Follower [ Fettower
Figure 3.3 Laissez-faire or Free rein leadership
This type of leadership is highly effective when the
> leader is interested in delegating decision-making ful
subordinates are highly intelligent and they are fully aware of their roles and
Tesponsibilities and have the knowledge and skills to accomplish these tasks
Without supervisor. (iv) Organizational development: Seana
Strategies and interventions are focused at improving organizational effectiveness, Ul
and processes to support strategic objectives.
ect current and future
(») Talent management:
Practices are for attracting, retaining and developing top talent to m
business needs.
2.34.3. Design of HRD
@ Needs assessment:
Conducting a thorough analysis of organizational and individual needs to identify gaps
and opportunities for development.
(ii) Program design:
Developing tailored HRD
with organizational goals and priorities.
programs and initiatives to address identified needs and align
(iii) Implementation:
Rolling out HRD programs effectively includes communication, training delivery and
logistical arrangements.
(iv) Evaluation:
Assessing the effectiveness and impact of HRD initiatives through metrics, feedback and
performance indicators to continuously improve and refine the programs.
(v) Integration: -
Aligning HRD activities is with other HR functions such as recruitment, performance
management and succession planning to ensure consistency and coherence in talent
management strategies. Fi
_/238. TRAINING AND DEVELOPMENT fe i
Training plays an important role in human resource development. Training involves
development of skills that are usually necessary to perform a specific job. According to Eedvin
B, Flippo, “Training is the act of increasing the knowl id skills of an employe
a particular job”, r
Development means all round improvement on #
in proficiency, advancement and progress in all ‘othe
AiR
performance, personality
personality traits which: Industrial Mal
‘subordinates.
morale of
ity as well as the team-spirit.
individual
ack of disc
i) Lowest productivity:
No control and co-ordination. He
me members may Put their own interes
a tensed situation will be prevailed.
nd team interests.
sts above the group a!
fence,
(iv) Son
ollective attitude, motivation and sense of satisfaction
n, It is critical because the morale of leaders can
productivity and success of an organization. It means,
ile a weak Jeader can quickly sap
ployee morale
JORALE
Je refers to the ¢
vanizatio!
38. LEADERSHIP M
Leadership moral
among a group of leaders within an org:
significantly impact the overall culture,
strong leader can significantly boost em
it
When le
committed to their
whole. In contrast,
and even tumover among
performance.
4. Factors Influencing Leadership Morale
re engaged, motivated and
.d the organization as a
decreased productivity
on the ‘organization's
leaders are naturally mo!
tively influence their teams an‘
lead to disengagement,
have detrimental effects
adership morale is high,
roles which can pos
Jow leadership morale can
leaders which can
3
() Vision and goals:
When leaders believe in the organization's vision and goals,
motivated and inspired to work towards achieving them.
(i) Communication:
Open and transparent communicé
leaders feel informed and valued which-can boost morale
Recognition and appreciation:
Recognizing and appreciati Cf i
amet ing the efforts of leaders can
(iv) Opportunities for growth:
Providing leaders with of iti
ypportunities for
them engaged and motivated in their roles.
() Work-life balance: é
Supporting leaders in ane
sustain their morale over the long t
they are more likely to feel
ation from top-level management raises trust and helps ary when a person is shifted from one job to another job.
ssary to make employee mobile and versatile.
a sense of security and self-confidence to employees.
