ME413: Industrial Management - Yogesh Kulkarni

Unit 1 : Management Concepts

Lecture 1
Management

Introduction
What is Management?
Encompasses an array of different functions undertaken to
accomplish a task successfully.
Process of designing and maintaining an environment in
which individuals, working to gather in groups, efficiently
accomplish 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

Lecture 2
Established definitions
F.W. Taylor
Art of knowing what you want to do and then seeing that it is
done the best and cheapest way
Henry Fayol
To Manage is to forecast, to plan, to organize, to command, to
co-ordinate and to control
Peter Drucker
Management is work and as such it has its own skills, its own
tools and its own techniques
Koontz H. - looks most appropriate to me
Management is the art of getting things done through and with
people

Why are we studying Management?

The need and importance of Management Principles

To
To
To
To
To
To

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

Problems in studying management

Nature of Management
Is it Managerial or non-Managerial?
Assembly-line workers performing operative tasks such as
tightening 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 accomplish
goals. S/he also uses non-human resources such as money and
material.

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?

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 only
4.

One size fits all?

What changes?
Social scenario: The aspects of culture that influence
norms 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

Examples
How these 3 aspects (Social-Economic-Political, SEP) affect,
say...
Management of Traffic
What are Social aspects: school district, hospitals
nearby, uneducated.
What are Economic: More cars, than bicycles. or
no-tar roads.
Political scenario: Democratic decisions for land for
roads, bridges.

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

Managerial Skills
Managers need three types of skills:

Examples contd
How 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

Technical: Specific subject related skills such

as engineering, accounting, etc
Interpersonal: Skills related to dealing with others and leading, motivating, or controlling them
Conceptual: Ability to
discern the critical factors that will determine as
organizations success or
failure. Ability to see the
forest in spite of the trees

Art
Human angle
Creativity

As Science it provides processes and as Art it tells how to get

them 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

Managerial Skills needed at different levels

Technical skills are the managers ability to understand
and use techniques, methods, equipment, and procedures.
Most important at the lower management level. Foremen,
for example, must know how to operate the machinery
their subordinates use.
As a manager moves up the management hierarchy,
technical skills become less important relative to the
conceptual 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 servant
or slave.
So, identification, maintaining, motivating, controlling,
and the unification of human and material resources to
achieve a common goal.
Nwankwo, 1987, careful and systematic arrangements
and use of resources for the achievement of the specific
objectives
Gulick & Urwick, process of getting things done
through the effort of others in goal achievement.

Its Relationship

Lecture 3

How Management and Administration are

different?

Evolution And Development Of Management

Thoughts

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 and
objectives as decided by the administration.
Management is about directing, improving, innovating in
order to reach the organizations goal of profit-maximizing

Objectives
Success criteria
Resource use
Decision making
Structure
Roles
Attitudes

Summary of the differences

Category

Management

Administration

Objectives

General execution

Success Criteria
Resource Use
Decision Making
Structure
Roles
Attitudes

Success seeking
Primary task
Many decisions
Max delegation
Protagonist
Emphasis on results
Figures

Broad
strategic
aims
Mistake avoiding
Secondary task
Few decisions
Limited delegation
Arbitrator
On procedure

Skills

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

Eight categories of differences

History of Management Thought

Reports

Early management theory consisted of numerous attempts

at getting to know these newcomers to industrial life at
the end of the nineteenth century and beginning of the
twentieth 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 with
little 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 crucial
and to Ford and his contemporaries.

Classification of Approaches
Classical:

Scientific
Administrative
Bureaucratic
Behavioral:

Group Influences

What is Leadership?
Burns (1978), says that leadership is a process of doing
something for some one by mobilizing persons with
certain motives and values, various economic, political,
and other resources in a context of competition and
conflict, in order to realize goals independently or
mutually held by both leaders and followers.
Musaazi (1982), believes that leadership is the process
of influencing the activities and behaviour of an
individual or a group in efforts towards goal achievement
in a given situation.
Rost (1991), believes that leadership is an influence
relationship among leaders and followers who intend real
changes 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

Maslows need theory

Theory X and Theory Y
Howthorne studies
Modern:

System
Contingency
Theory Z and Quality Management

Classical
Scientific: Focuses on
the individual workers
productivity
Administrative:
Focuses on the functions of
management
Bureaucratic: Focuses
on the overall organizational system

Scientific Management

Administrative Management

Scientific

Administrative

Four Principles by F W Taylor

Develop a scientific approach for each
element of ones work
Scientifically select, train, teach and develop 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 the

1910s.
Implemented a wage incentive programme
Frank Gilberth:

Specialized in time and motion studies to determine

the most efficient way to perform tasks.
Used motion pictures of bricklayers to identified
work elements (therbligs) such as lifting and
grasping
Lilian Gilberth:

A strong proponent of better working conditions as

a means of improving efficiency and productivity.

Five management functions

Planning
Organizing
Commanding
Coordinating
Controlling
Theorists
Henri Fayol (1841-1925):
Born in
France, worked for a coal-mining business, developed 14 administrative principles.
James D. Mooney (1884-1957): Member of General Motors top team.
Luther H. Gulick (1892-1993): Applied administrative management theory 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 should
not be allowed to become more important than those of
the group.
Remuneration: Employee satisfaction depends on fair
remuneration for everyone, financial and non-financial
compensation.

Fayols Administrative Principles..contd

Bureaucratic
Max Weber
A German sociologist and historian
A bureaucracy is a highly structured,
formalized and impersonal organization.
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 labor

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 with
kindness 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 4
Behavioural
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 Internal
and External factors

Contribution Of Various Management Gurus

Maslows Hierarchy

Howthornes experiments (1924 1932)

Howthorne Effect
Workers perform and react differently when researchers
observe 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 affected
by the organizations technology. Identified and described
three different types of technology:
Small-batch technology
Mass-production technology
Continuous-process technology

Lecture 5
Principles Of Management

What are Principles?

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 influence
performance
Work represents the transition from scientific
management to the early human relations movement.
Emphasized on workers themselves and needs to belong to
a group

Management principles are the statements of truth which act as

guidelines 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 specific
goals/objectives like:
Organizational objectives: Reasonable profits, Survival
and 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 taxes
to the Government, Conservation of environment and
natural 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 and
financial resources.
The success of management is measured by the extent to
which the established goals one achieved.
Thus, management is purposeful.

Universality of Management

Managerial Styles

Principles of management are universal in the sense that these

can be applied in different situations,for different sizes of groups
etc 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

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

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.

Management Personalities

Administrators
Time
Servers
Climbers
Generals
Supporters
Nice Guys
Bosses

Social Process
Human factor is the most important element in management.
Management is done by people, through people and for
people.
It is social process because it is concerned with
interpersonal relations.
According to Appley, Management is the development of
people not the direction of things. A good manager is a
leader not a boss. It is the pervasiveness of human
element which gives management its special character as a
social process

Administrators

Multidisciplinary
Management has to deal with human behavior under
dynamic 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 continues
to operate so long as there is organized action for the
achievement of group goals.
Intangible: Management is an unseen or invisible force. It
cannot be seen but its presence can be felt everywhere in
the form of results. However, the managers who perform
the functions of management are very much tangible and
visible.
Art as well as Science: It contains a systematic body of
theoretical knowledge and it also involves the practical
application of such knowledge. Management is also a
discipline involving specialized training and an ethical
code arising out of its social obligations.

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 demarcation 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 lost
their 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 experiences
They consider themselves father
of organization
They can build good team

Climbers
Driven by extremely personal
ambitions
Sacrifice every thing, themselves, 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 subordinates
Social and mix at all levels
Status is important
Strong willed individuals
Highly optimistic

Supporters
They maintain balance views about world
organization, 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 it
suits 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 a
profit 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 Planning
Plans can be long-range, intermediate-range, or short-range
Long Term
Long-range planning for Gulf Oil, Xerox Corporation, and
United 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-day

survival of the firm
Intermediate-range planning may range from a month to
a year
Short term planning would deal with daily chores.

Organizing
After planning, next step is organizing. The process of
organizing 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

Directing
It 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 called
leading, 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 use
formal 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.

Controlling
It 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 knowledge
management.
Study of Successful & failure cases help practicing
managers.

Theoretical research combined with practical

experiences.
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 the
interests 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 the
organization.
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
Copyleft

Send suggestions to yogeshkulkarni@yahoo.com

Flexible & practical

Limitations
Not universal.

References
Where 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