1. introduction

1INDUSTRIAL MANAGEMENT AND ENGINEERING ECONOMY

(MENG510)

LeadershipSkills

AdministrativeSkills

Technical Skills

Skills needed of Engineers

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COURSE CONTENT

1. Basic Management Concepts2. Functions of Management3. Industrial Organization4. Plant Layout5. Project Management6. Economic and Financial Analysis7. Quality Control

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EvaluationProject work - 30%Continue Ass.-20Final exam – 50%

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1. BASIC MANAGEMENT CONCEPTS

1.1 INTRODUCTION When did management start?

when human being started group activities for the attainment of some common objectives.

Group activity Managemen

t

Direct, coordinate and integrate the individual activities

Objective

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1. BASIC MANAGEMENT CONCEPTS…

Why do we need management? To economically utilize the scarce resources

like men, materials, machines, money etc. For profit maximization or continuous growth

and survival. Management is a universal process in all

organized economic activities. No enterprise can enjoy a successful

existence and survival without a competent management.

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Some mottos about the importance of management: The slow rate of economic growth of under

developed countries is due the poor management.

There are no under developed countries, there are under managed countries.

The low rate of economic growth of under developed countries is not due to the dearth of capital, but it is due to the dearth of the management.

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1.2 DEFINITIONS OF MANAGEMENT The art of getting things done through other

people. The art of applying the economic principles

that underline the control of men and materials in the enterprise under consideration.

The force that integrates men and physical plant in to an effective operating unit.

A task of planning, coordinating, motivating and controlling the efforts of others towards specific objectives.

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1.2 DEFINITIONS OF MANAGEMENT… A multipurpose organ that manages a business,

manages a manager and manages workers and work.

Knowing exactly what you want men to do, and then seeing that they do it the best and cheapest ways.

The creation and maintenance of an internal environment in an enterprise where individuals, working together in groups, can perform efficiently and effectively towards the attainment of group goals.

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1.2 DEFINITIONS OF MANAGEMENT… Guiding human and physical resources in to

dynamic organization units which attain their objectives to the satisfaction of those served and with high degree of morale and sense of attainment on the part of those rendering service.

To forecast and to plan, to organize, to command, to coordinate and to control.

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1.2 DEFINITIONS OF MANAGEMENT… The process of planning, organizing, leading and

controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals. The definition suggests that:

Management is a continuous process. Several inter-related activities have to be performed by

managers irrespective of their levels to achieve the desired goals.

Managers use the resources of the organization, both physical as well as human, to achieving the goals.

Management aims at achieving the organizations goals by ensuring effective use of resources.

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MenMaterialsMachinesMoneyMarketsResources

Planning Directing

Organizing

Controlling

Transformation Processes GoalsOutputs

Fig.1.1 Process of Management

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1.3 CHARACTERISTICS OF MANAGEMENT Management is purposeful activity: deals with

the clear attainment of clearly defined objectives.

It is an efficient handling of economic resources.

Management is a distinct process: consisting of planning, organizing, staffing, directing and controlling.

Management is universal: is found in every walk of life.

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1.3 CHARACTERISTICS OF MANAGEMENT… Management is a system of authority: managers at

different levels posses varying degrees of authority that enables them to perform their functions effectively.

Coordination is the soul of management: necessary in group activities.

Management is dynamic: it works in ever changing social environment.

Management is decision making: managers decide about what to do, when to do, where to do etc.

Management is a profession: management is not only a science but also an art.

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1.4 ADMINISTRATION, MANAGEMENT AND ORGANIZATION There is a controversy in using the terms administration

and management – usually used as synonymous or interchangeable.

But practically there exists a clear distinction between the two.

Administration determines the objectives and policies of an enterprise.

Management caries out these policies to achieve the objectives of the enterprise.

For administration and management to function effectively, there must be proper structuring of the enterprise (organization).

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1. BASIC MANAGEMENT CONCEPTS…Administration Management Organization Process of determining the object to be achieved

Process of planning the work as per the objective laid by the administration

Process of dividing work into different duties and tasks as planned

Lays down policies and principles

Executes polices and programs

It organizes the work

Prepares framework under which one is asked to work and execute

Supervises and controls the execution of assigned work

Draws the line of authority and determines the line of action

Provides: Direction Guidance and Leadership

Coordinates activities

It delegates the authority and fixes responsibility

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1.5 LEVELS OF MANAGEMENT There is a wide variation in the authorities

and responsibilities of managers – due to level of management.

The three levels of management that are commonly found in organizations are:i. Top management – policy makers

(administrators)ii. Middle management-iii. Lower level management

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1.5 LEVELS OF MANAGEMENT…Top management:

Policy making level. Consists of small group of executives, board of

directors, chairman, managing director, personnel manager, chief executive etc.

Define the aim of the company, establish the primary objectives, policies and strategies to be pursued to achieve these objectives.

Formulate the plans of organization and procedure, inaugurate the board program, and approve specific major objects in the program.

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1.5 LEVELS OF MANAGEMENT…Middle order management:

Occupies a central place in the hierarchy. Concerned with execution of the detailed

policies and plans determined by top management (Administration) through the framework of the organization.

Is answerable to top management. Its main functions are to plan, to guide, to supervise, to coordinate, to exercise control over the lower level management.

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1.5 LEVELS OF MANAGEMENT…Lower level management: Function under the control and direction of middle

level management. Their functions are also to plan, to guide, to supervise,

to coordinate, to exercise control, but all these functions are performed to get work done from the operating staff.

Takes orders from middle management and explains to the workers at operating level.

Includes foreman, supervisor, superintendent, inspector etc.

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Administration

Management

Top Management

Low Level Management

Fig. 1.2 Levels of Management

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1.6 Managerial skills Is the ability of a manager to make a

smooth functioning team of people working under him/her.

Manager has to reconcile, coordinate and upraise the various view points and talents of people working under him/her towards the organization goals.

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1.6 Managerial skills… The skills required of a successful manager

can be classified as1. Technical skills2. Conceptual skills

Decision making skills Organizational skills

3. Human relation skills Communication skills Motivating skills Leadership skills

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1.6 Managerial skills…Technical skill:

Refers to the ability to use methods, processes, tools, equipment, techniques and knowledge of a specialized field.

Concerned with the ways of doing things. Technical skills are most important for low

level managers, because by nature their job involves supervision of the workers on the shop floor.

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1.6 Managerial skills…Conceptual skill: Is the ability to see the organization as a whole, to recognize

inter-relationships among different functions of the business and external forces and to guide effectively the organizational efforts.

Extend to visualizing the relation of the organization to industry, to the community and to the political, economic and social forces of the nation as a whole and even to forces which operate beyond the national boundaries.

It is a creative force within the organization which is concerned with design and problem solving.

A high degree of conceptual skill helps in analyzing the environment and in identifying the opportunities and threats.

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1.6 Managerial skills…Human relation skills:

Are primarily concerned with persons as contrasted with things.

Human skill refers to the ability to work effectively with others and build cooperative group relations to achieve organizational objectives.

It is the ability to work with, understand and motivate people.

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1.6 Managerial skills…

Hum

an

Conceptual

Technical

Top management

Middle management

Low level management

Fig. 1.3 Managerial Skills

1. introduction

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