Class Lecture on Industrial management fundamentals

1. INDUSTRIAL MANAGEMENT
FUNDAMENTALS
3/16/2015 M. K. Islam / ME 359
Reference Books:
1. Management by Knootz.
2. Management by Griffin.
3. Management theory and Practices by JS Chandan.

2. 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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3. Industrial Management
Industrial 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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4. 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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5. 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 vehicles
They Add value to raw Material.
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6. 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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7. 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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8. 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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9. 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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10. 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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11. Office Management
Office 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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12. 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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13. Functions of Management
There 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.
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15. 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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16. 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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17. 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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18. Manager
A 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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19. 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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20. Manager
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21. Manager
Managers 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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22. 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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23. 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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24. 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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25. Managerial Skills
Managers 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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26. 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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27. 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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28. Managerial Skills
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29. Role of an Office Manager
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• 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.

30. Role of an Office Manager
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• 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.

31. Management: An art or science
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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.

32. Management: An art or science
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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.

33. Management: An art or science
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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

34. Thank You
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