INDUSTRIAL MANAGEMENT

Industrial Management
• After the lesson you may learn:
A. Feature and Importance of management
B. Functions of a Manager
C. Managers skills, levels, quality and work areas
D. Management as an Art or science
E. Management as a profession
F. Explain the concept and importance of industrial
G. Management.
H. Scope and Application of Industrial Management
Industrial Management
• The term industrial management is composed of

Industry management

Industry:
• An industry is a group of manufacturers or businesses
that produce a particular kind of goods or services.

Management :
• Management is the art of getting things done through
people”.
 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.
 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.
 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.
 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.
 Levels of Industry
• Quandary (fifth) Industry: Quandary 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.
 Tell
Who Managers are and where they Work
 Who Managers
are and where they Work
Organization
※A deliberate arrangement of people brought together to
accomplish a specific purpose.
Common characteristics of organizations.
※Goals
※People
※Structure
 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.
 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.
Functions of Management
• There are five primary functions of management. These are:
Functions of Management
• 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.

• 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.
Functions of Management
• 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

• 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.
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.
Functions of Management
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.
 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
Manager

Top managers
> relatively small group of executives > manage the overall organization
> bear major responsibilities > represent the organization in external environment
> establish its goals, overall strategy, and operating policies

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
 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.
 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.
 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.
 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.
 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)
 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.
 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.
 Role of an Office Manager
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.
 Role of an Office Manager
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 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.
Management: An art or science
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.
Art signifies the application of knowledge and personal skills to
bring about desired results.
Art has the fallowing characters:
• Practical knowledge : every art requires practical knowledge
therefore learning of theory is not sufficient. Its very important to
know practical application. E.g. to become a good painter the
person not only should know about the different colour and
brushes but different designs, dimensions etc to use them
appropriately.
 Management: An art or science
Creativity : every artist has an element of creativity in line. That is
why he aims at producing something that has never existed bore
which requires combination of intelligence & imagination.
Goal-Oriented : every art is result oriented as it seeks to achieve
concrete result. As management is also directed towards pre-
determined goals.

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.
Management: An art or science
• Management is both an art and science. The above mentioned
points clearly reveal that management combines features of both
science and art. It is considered as science because it has an
organized body of knowledge which contains certain universal
truth. It is called an art because managing requires certain skills
which are personal possessions of managers. Science provides
the knowledge & art deals with the application of knowledge and
skills
Industrial Management
• Industrial management can be considered as the management of
men, material & machines in an industrial organization.
• Industrial management, is 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 also the people.
• Industrial management, therefore in the structured approach to
manage the operational activities of an organization.
Industrial Management
Objectives of Industrial Management
Customer Service

Efficient utilization of resources

Coordination

Product quality

Human relations