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BY: MAYANK PANDEY
NIET BUSINESS SHOOLUNIT-1
• University Syllabus:
• Concept, Development, application and
scope of Industrial Management.
• Definition, measurement, productivity
index, types of production system,
Industrial Ownership.Concept of Industrial Management
• Application of Management theories & concepts
are now all pervasive and all encompassing.
• With Best engineering skills and knowledge,
professional cannot just sustain since any
operational issues require application of
• Any engineer by profession is also a manager, as
engineers also qualify in the classical test of
managerial roles, interpersonal roles, and
informational roles and decisional role.Industrial Management
• Industrial management, as a branch of
engineering facilitates creation of
management systems and integrates the same
with people and their activities to
productively utilize the resources.
• The subject emphasizes studying the
performance of machines and so also the
• Industrial management, therefore, in the
structured approach to manage the
operational activities of an organization.Process of Development of Industrial
S. No. Orientation Pioneered by Definition concerned
F.W. Taylor &
1. Productivity orientation Increased Productivity
J. F. Mee
Human Relations L. A. Applay &
2. Emphasis on people
Orientation H. Knortz
Decision making as
Decision making Ross Moore &
3 primary management
Orientation Stanley Vance
Donald J. Clough & Leadership is the
4. Leadership Orientation
Ralph C. essence of Management
5. Process Orientation Management as process
McFarlandDevelopment of Management
1. Classical School of Thought
F.W. Taylor Development of Scientific Management (1856- 1915)
F. B. Gilberth Time & Motion Studies (1868- 1924)
Henry L. Gantt The Gantt Chart (1861- 1919)
H. Fayol General Theory of Management
Max Weber Rules
2. Neo- Classical Thought
Mark Parker Follet Group Influences (1868-1933)
Elton Mayo Effect of human motivation on productivity & (1880- 1949)
A. Maslow Relates human motivation to hierarchy of
Douglas Mc Gregor Puts emphasis on human characteristics (1906- 1964)
Theory X & theory Y and the corresponding
style of leadership
Chris Argyris Human & Organizational Development
3. Modern Approaches
Quantitative School of thought
System Theory Approach
The Contingency TheoryScientific Management Approach
• Taylor emphasized following points to achieve
– Develop scientific way of performing jobs.
– Train and develop workers to perform the job.
– Establish harmonious relation between
management and workers.
• Taylor suggested two important practices:
– Piece rate incentive system.
– Time and motion study.Piece rate system rewards the workers who produce the maximum
Time study helps in determination of time required, recording analyzing
and synthesizing the time elements of each operation.
Motion study on the other hand involves study of movements in doing
jobs in parts and eliminates wasteful movements and retains only
necessary movements. It makes a job simpler, easier and better.
Time and Motion Study concepts were developed by F.W.Taylor in
association with Frank and Lillian Gilberth.
Gilberth conducted research on motion studies. They had classified 17
basic hand motions like search, select, position, hold etc. They called this
therbligs . Their approach helps to analyse the exact elements of a
workers’ hand movement.
Henry Gantt worked with Taylor. His contributions are introduction of task
and bonus plan, and Gantt chart. As per his incentive plan worker gets
daily wage even if he does not complete his job, but gets bonus if the jobs
is completed in less than normal time.
Gantt chart is used for production control indicating progress of
production in terms of time.Drawback of Scientific Management
• Scientific Management principles revolve
around operational level problems do not
focus on managerial issues essential for
• This theory also ignores the human desire for
job satisfaction.Administrative Theory
• Administrative Theory another part of classical school of
thought focuses on principles to coordinate the internal
activities of the organization. Henry Fayol classified business
operations into 6 activities.
– Technical : Activities relating to production and manufacturing.
– Commercial : Activities relating to buying selling and exchange.
– Financial : Activities ensuring optimal use of capital.
– Security : Activities to ensure protection to employees and
– Accounting : Activities concern with costs, profits, liabilities, balance
– Managerial: It is functional approach to management. i.e. planning,
organizing, directing, coordinating
and controlling.Bureaucratic Theory
• Max Waber had advocated the necessity of a
formal organizational structure with set rules
and regulations.Weber’s concept is intended
to remove ambiguity, inefficiencies, and
patronage.Limitations of Classical School of
• Management principles are not universally
applicable intoday’s complex business
• Classical school of thought ignored
organizational behaviour (leadership,
motivation informal relation) only
concentrated on productivity.Neo Classical School of Thought
• This school of thought lays emphasis on human elements in an
• Max Parker Follett recognized the significance of human elements,
attributed greater significance to the functioning of groups in workplace.
• Elton Mayo father of Human Relations Approach, conducted the study to
evaluate the attitudes and psychological reactions of workers in on the
•Maslow’s focus was on importance of human needs driving force for
• McGregor has made assumption about people categorizing them as under
– Theory X People are by nature lazy, have little ambition, dislike
work, avoid responsibility.
– Theory Y People are more positive , innovative, creative and do not
dislike work. ChrisArgyris’s contributions are maturity–immaturity
theory, integration of individual and organizational goals.Modern Approaches
• These approaches are classified as
I. Quantitative School of thought.
II. System Theory Approach.
III. The Contingency Theory.Quantitative School of Thought
• Different branches of quantitative approaches are
Management Science, Operations Management, MIS.
• Management science approach or operations research
approach is used in production, scheduling human
resource planning, inventory management etc.
• Operations management is primarily concerned with
production management and related management.
• MIS approach focuses on design and implementation
of information system for management uses. It
converts raw data into information inputs to be used
by management for decision making.System Theory Approach
• It considers organization as a whole because
of interdependent nature of activities
requiring organization to interact with
external environment factors.Contingency Theory Approach
• This Approach discards the concept of
universality in management principles and
determines managerial decisions considering
• Contingency theory and System theory together
are classified as integrative school of
management thought because these two
theories integrate the classical, behavioral and
quantitative theories and uses only the best of
each approach in a given situation.APPLICATION & SCOPE OF
• Initially the scope & application of industrial
management was restricted to manufacturing
industry. Later on it spread to non- manufacturing
activities such as construction & transportation,
farm and air- line operations and maintenance,
public utilities govt. & military operations.
• In an industry besides the production, other
departments utilizing industrial management
concepts are Marketing, Finance, Purchasing,
Industrial relations etc.Major applications of Industrial Management
Selection of Machinery and Equipments
3. Inventory Management & Store Keeping
4. Total Quality Management
To improve the
Human ResourceScope of Industrial Management
Help in all decision making and problem solving
Expertise Help Help in design of production system
Help in design, selection and implementation of new technology
Interpretation of data and information
Review of data and information
Productivity measurement and improvement
System Identification of faults in the production system
Job analysis of the system
Motivation practice of employee
Work and motion study
Training of workers in motion study
Application of new technology
Application of operation research in management
Development and use of decision tools
Use of MIS and Computers.