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Dr.TomHunt,United States,Teacher
Published Date:22-07-2017
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INDUSTRIAL MANAGEMENT BY: MAYANK PANDEY ASSISTANT PROFESSOR NIET BUSINESS SHOOLUNIT-1 • University Syllabus: –Introduction: • Concept, Development, application and scope of Industrial Management. –Productivity: • 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 management techniques. • 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 people. • Industrial management, therefore, in the structured approach to manage the operational activities of an organization.Process of Development of Industrial Management S. No. Orientation Pioneered by Definition concerned with 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 function Donald J. Clough & Leadership is the 4. Leadership Orientation Ralph C. essence of Management Dalton, & 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) Administrative Theory 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) output A. Maslow Relates human motivation to hierarchy of needs 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 organizational efficiency – 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 output. 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 Approach • Scientific Management principles revolve around operational level problems do not focus on managerial issues essential for managing organization. • 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 property. – Accounting : Activities concern with costs, profits, liabilities, balance sheet. – 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 Thought • Management principles are not universally applicable intoday’s complex business situation. • 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 organization. • 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 job situations. •Maslow’s focus was on importance of human needs driving force for motivation. • 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 situational factors. • 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 INDUSTRIAL MANAGEMENT • 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 Plant Location Capacity Planning 1. Pre–Production Selection of Machinery and Equipments Planning Plant Layout Material Handling Planning Routing 2. Production Scheduling Planning and Control Dispatching Controlling 3. Inventory Management & Store Keeping 4. Total Quality Management Finance To improve the process and Marketing Service in 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 Advise and Review of data and information Consultancy Productivity measurement and improvement System Identification of faults in the production system Job analysis of the system Analysis Motivation practice of employee Work and motion study Training and Training of workers in motion study Motivation Application of new technology Negotiation Application of operation research in management Decision Development and use of decision tools Making Use of MIS and Computers.