MANAGEMENT

SCIENCE
 UNIT I

INTRODUCTION TO MANAGEMENT
INTRODUCTION

• Management is what managers do. It refers to people at the top level in the organization
concerned with Decision making.

Levels of Management:
1. Top level- (strategic )
2. Middle level-( Tactical)
3. Low level-(Operational)
NATURE & FEATURES OF MANAGEMENT

• Social Process
• Body of people involved in Decision Making
• Universal
• Situational in nature
• Complex
• Art & Science
• Profession
IMPORTANCE OF MANAGEMENT

• Facilitates the achievement of goals through limited resources

• Ensures smooth sailing in case of difficulties
• Ensures continuity in the organization
• Ensures economy & efficiency
• Focuses on group effort
• Key to economic growth
FUNCTIONS OF MANAGEMENT

• Planning
• Organizing
• Staffing
• Directing
• Controlling
PRINCIPLES OF MANAGEMENT

• Henry Fayol, a French industrialist identified 14 principles of management.

They are:
1. Division of Work
2. Authority
3. Discipline
4. Unity of Command
5. Unity of direction
6. Subordination of individual interest to group interest
7. Remuneration
8. Centralization of authority
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure
13. Initiative
14. Espirit De crops.
MASLOW’S THEORY OF HUMAN NEEDS
 FW Taylor Principles of Scientific Management

F.W. Taylor or Fredrick Winslow Taylor, also known as the ‘Father of scientific management’ proved with his practical
theories that a scientific method can be implemented to management. Taylor gave much concentration on the supervisory
level of management and performance of managers and workers at an operational level. Let’s discuss in detail the five
principles of management by F.W Taylor.

1. Science, not the Rule of Thumb-

This rule focuses on increasing the efficiency of an organization through scientific analysis of work and not with the ‘Rule of
Thumb’ method. Taylor believed that even a small activity like loading paper sheets into boxcars can be planned
scientifically. This will save time and also human energy. This decision should be based on scientific analysis and cause and
effect relationships rather than ‘Rule of Thumb’ where the decision is taken according to the manager’s personal judgement.

2. Harmony, Not Discord-

Taylor indicated and believed that the relationship between the workers and management should be cordial and completely
harmonious. Difference between the two will never be beneficial to either side. Management and workers should
acknowledge and understand each other’s importance. Taylor also suggested the mental revolution for both management and
workers to achieve total harmony.
3. Mental Revolution-
This technique involves a shift of attitude of management and workers towards each other. Both should understand the value
of each other and work with full participation and cooperation. The aim of both should be to improve and boost the profits of
the organization. Mental Revolution demands a complete change in the outlook of both the workers and management; both
should have a sense of togetherness.

4. Cooperation, not Individualism-

It is similar to ‘Harmony, not discord’ and believes in mutual collaboration between workers and the management. Managers
and workers should have mutual cooperation and confidence and a sense of goodwill. The main purpose is to substitute
internal competition with cooperation.

5. Development of Every Person to his Greatest Efficiency-

The effectiveness of a company also relies on the abilities and skills of its employees. Thus, implementing training, learning
best practices and technology, is the scientific approach to brush up the employee skill. To assure that the training is given to
the right employee, the right steps should be taken at the time of selection and recruiting candidates based on a scientific
selection.

These five (5) principles of scientific management process involved experiments, observation, analysis, and inference and
were applied to create a cause and effect relationship.
HERZBERG’S TWO FACTOR THEORY OF MOTIVATION
SYSTEMS APPROACH TO MANAGEMENT
LEADERSHIP STYLES

1. AUTHORITATIVE
2. DEMOCRATIC
3. FREE REIN
SOCIAL RESPONSIBILITIES OF MANAGERS

• Responsibilities towards share holders

• Responsibilities towards Consumers

• Responsibilities towards Employees

• Responsibilities towards creditors

• Responsibilities towards government

• Responsibilities towards competitors

• Responsibilities towards General public

 ORGANISATION STRUCTURE
An organizational structure defines how jobs and tasks are formally divided, grouped, and
coordinated. The type of organizational structure would depend upon the type of organization itself
and its philosophy of operations.

TYPES:

1. Line Organisation

2. Line & Staff Organisation

3. Functional organization

4. Committee organization

5. Matrix organization
• Key Elements for Proper Organizational Structure
• Work Specialization: To what degree are articles subdivided into separate jobs?
• Departmentalization: On what basis jobs will be grouped?
• Chain of Command: To whom will individuals and groups report?
• The span of Control: Up to how many individuals can a manager efficiently direct?
• Centralization vs Decentralization: Who will be the sole maker of decisions?
• Formalization: To what degree will there be rules and regulations to direct employees and
managers?
 LINE ORGANIZATION

Line organization is the simplest form of

organization and is most common among small
companies. The authority is embedded in the
hierarchical structure and it flows in a direct line
from the top of the managerial hierarchy down to
different levels of managers and subordinates and
further down to the operative levels of workers. It
clearly identifies authority, responsibility, and
accountability at each level.
 LINE & STAFF ORGANISATION

In this type of organization, the functional

specialists are added to the line, thus giving the line
the advantages of specialists. This type of
organization is most common in our
business economy and especially among large
enterprises. Staff is basically advisory in nature and
usually does not possess and command authority
over line managers.
 FUNCTIONAL STRUCTURE

A functional manager can make decisions and

issue orders to the persons in divisions other than
his own, with a right to enforce his advice.
The functional organization features separate
hierarchies for each function creating a larger scale
version of functional departments. Functional
departmentalization is the basis for grouping
together jobs that relate to a single organizational
function or specialized skill such as marketing,
finance, production, and so on. The chain of
command in each function leads to a functional
head who in turn reports to the top manager.
 COMMITTEE ORGANIZATION

The divisional or departmental organization involves the grouping

of people or activities with similar characteristics into a single
department or unit. Also known as self-contained structures, these
departments operate as if these were small organizations under a
large organizational umbrella, meeting divisional goals as
prescribed by organizational policies and plans.

The decisions are generally decentralized so that the departments

guide their own activities. This facilitates communication,
coordination and control, thus contributing to organizational
success. Also, because the units are independent and semi-
autonomous, it provides satisfaction to the managers that in turn
improves efficiency and effectiveness.
 MATRIX STRUCTURE

A matrix structure is, in a sense, a

combination and interaction of project
and functional structures and is
suggested to overcome the problems
associated with the project and
functional structures individually. The
key features of a matrix structure are
that the functional and project lines of
authority are superimposed with each
other and are shared by both
functional and project managers.
 MODERN TRENDS IN ORGANIZATIONAL STRUCTURE DESIGNS

• 1.Virtual

• 2. Cellular

• 3. Team

• 4. Boundaryless

• 5. Inverted Pyramid
 UNIT II

OPERATIONS MANAGEMENT
&
MATERIALS MANAGEMENT
 OPERATIONS MANAGEMENT
PLANT LAYOUT: Disposition of the various facilities( equipment, materials, manpower, etc.,) & services of
the plant with in the area of the site selected.
Plant Layout begins with the design of the factory building and goes up to the location and movement of a work
table.
Types:
1. Product Layout
2. Process Layout
3. Fixed Layout
4. Combination Layout.
 the machines and equipment's are arranged in one line depending upon the sequence of operations required for the product.
The raw materials and semi-finished materials move from one workstation to another sequentially without any backtracking or
deviation.

Under this, machines are grouped in one sequence. Therefore materials are fed into the first machine and finished goods
travel automatically from machine to machine, the output of one machine becoming input of the next, e.g. in a paper mill,
bamboos are fed into the machine at one end and paper comes out at the other end.

2. Process Layout:
In this type of layout machines of a similar type are arranged together at one place.

`For example, machines performing drilling operations are arranged in the drilling department, machines performing casting
operations be grouped in the casting department. Therefore the machines are installed in the plants, according to various
processes in the factory layout.
This type of layout is preferred where the size of the job is bulky and heavy. Example of such type of layout is locomotives,
ships, boilers, generators, wagon building, aircraft manufacturing, etc.
a combination of the product and process layout or other combination are found, in practice, e.g. for industries involving the
fabrication of parts and assembly, fabrication tends to employ the process layout, while the assembly areas often employ the
product layout.
 METHODS OF PRODUCTION

• JOB
• BATCH
• MASS
WORK STUDY

• 1. Method Study: concerned with the systematic recordings, analysis &

critical examination of existing and proposed ways of doing work, as
means of developing and applying easier and more effective methods of
reducing costs.
• 2. Work Measurement: Application of the technique designed to establish
the time taken for a qualified worker to carry out a specific job at a
desired level of performance.
METHOD STUDY
• AIM: To develop better working methods
• Procedure: 1. Select
2. Record
3. Examine
4. Develop
5. Define
6. Install
7. Maintain
• Result: Increased efficiency, cost effectiveness, and productivity through workplace
layout, equipment design, reduce worker fatigue and improved product design
WORK MEASUREMENT

• AIM: To develop time standard

• Procedure: 1. Describe
2. Break
3. Measure
4. Determine
5. Provide
6. Determine
• Result: Increased efficiency & Higher productivity through scientific basis to develop
incentive system and maintain reasonable levels of employment.
 STATISTICAL QUALITY CONTROL
• SQC is a simple statistical method for determining the extent to which quality goals are being met
without necessarily checking every item produced and for indicating whether or not the variations
which occur are exceeding normal expectations.
• SQC enables us to decide whether to accept or reject particular product.
Techniques of SQC

Process control Acceptance Sampling

PROCESS CONTROL

• Variables:
X chart
R chart
• Attributes:
C Chart
P Chart
ACCEPTANCE SAMPLING

• Single sampling plan

• Double sampling plan
• Multiple sampling plan
DEMING’S CONTRIBUTION TO QUALITY

• Create constancy of purpose

• Adopt the new philosophy
• Do not depend anymore on mass production
• Meaningful measures of quality along with the price
• Find problems to focus on appropriate solutions
• Institute latest methods of training
• Let the foreman speak on quality
• Drive out fear

• Integrate the organization into one

• Provide support at every level

• No numerical quotas in work standards

• Remove barriers

• Focus on Retraining

• Facilitating organization structure.

 MATERIALS MANAGEMENT
OBJECTIVES:
• Primary Objectives:-

1. Low Prices

2. Lower Inventories

3. Reduction in Real Cost

4. Regular Supply

5. Procurement of Quality Materials

6. Efficient handling of Materials

7. Enhancement of firm’s goodwill.

• Secondary Objectives:-

1. Make or Buy Decisions

2. Standardization

3. Assistance to Production department

4. Co-operation with other departments

INVENTORY

• Inventory includes all of the raw materials, work-in-process goods and completely
finished goods listed as part of assets of a business, either ready or to be ready for sale.
• Need for maintaining Inventory:
1. Smooth and efficient running of an enterprise.
2. Improves cash flow by timely delivery of customer orders.
3. Provides adequate services to customers.
4. Bulk purchases will enable to get discounts.
5. Act like a buffer stock when raw materials are received late and rejections are too many.
 PURCHASE PROCEDURE

NEED

REQUISTION
PAYMENT

INVOICE SOURCES OF
CHECKING SUPPLY

ISSUE OF TENDERS
STORES & INVITE
QUOTATIONS

SELECTION OF
INSPECTION
SUPPLIERS

DELIVERY ORDERING
 STORE RECORDS

• Material requisition note

• Purchase order
• Invoice
• Goods received note
• Goods returned note
• Stores ledger account
• Bin card
 ABC ANALYSIS

ABC analysis is a method in which inventory is divided into three categories, i.e. A, B, and C in descending value. The items in
the A category have the highest value, B category items are of lower value than A, and C category items have the lowest
value.

Inventory control and management are critical for a business. They help to keep their costs under control. The ABC analysis
helps the business to control inventory by letting the management focus on the highest value goods (the A-items) and not
on the many low-value goods (the C-items).
Advantages:

It provides a structured view of the entire inventory in terms of quantity and value.
It allows management to implement different control measures for each item category.
It helps in continuous inventory monitoring, which in turn ensures maintenance of optimum stock level.

Disadvantages:

It requires a significant amount of effort to categorize items in this way.

It is only based on the financial value of items, while it completely ignores other factors that may be important for the
company.
 ABC ANALYSIS

CATEGORY VALUE(%) VOLUME(%) DEGREE OF

CONTROL

A 70 10 Strict

B 20 20 Moderate

C 10 70 Low
ECONOMIC ORDER QUANTITY (EOQ)
SUPPLY CHAIN MANAGEMENT

• Supply chain management is the management of the flow of goods and services and includes all
processes that transform raw materials into final products. It involves the active streamlining of a
business's supply-side activities to maximize customer value and gain a competitive advantage in
the marketplace.

• A supply chain is the connected network of individuals, organizations, resources, activities, and
technologies involved in the manufacture and sale of a product or service. A supply chain starts with
the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the
finished product or service to the end consumer.
• In SCM, the supply chain manager coordinates the logistics of all aspects
of the supply chain which consists of five parts:
1. The plan or strategy
2. The source (of raw materials or services)
3. Manufacturing (focused on productivity and efficiency)
4. Delivery and logistics
5. The return system (for defective or unwanted products)
 UNIT III
HUMAN RESOURCE MANAGEMENT

• HRM is the process of managing the human resources of an organization in tune with the
vision of the top management
• Functions of HRM
1. Manpower Planning
2. Recruitment
3. Selection
4. Induction
5. Training & Development
6. Placement
7. Wage & salary administration
8. Performance Appraisal
9. Grievance Handing
10. Welfare Aspects
11. Job Evaluation
12. Merit Rating.
 MANPOWER PLANNING

• It is also called as Human Resource Planning. The manpower position keeps on changing

in the organizations because of several factors such as transfers, promotions, demotions,

retirements and death of the employees. Hence it is the direct responsibility of the

personnel manager to ensure that the right number of the right people are made available

at the right departments.

 RECRUITMENT

• Recruitment is a positive process of searching for prospective employees and

stimulating them to apply for the jobs in the organization. When more persons

apply for jobs then there will be a scope for recruiting better persons.

• Sources: internet, agencies, advertisements, employment exchanges, campus,

technical & trade journals and so on.

 SELECTION

• Selection is the process of selecting a qualified person who can successfully do a

job and deliver valuable contributions to the organization. A selection system

should depend on job analysis. This ensures that the selection criteria are job

related and will provide meaningful organizational value.

 INDUCTION

Induction is the process for welcoming newly recruited employees and supporting
them to adjust to their new roles and working environments.
Introducing a new employee to the company culture and processes with the aim of
bringing them up to speed as quickly as possible as well as making them feel socially
comfortable and aware of their professional responsibilities
TRAINING & DEVELOPMENT

• Training is the process for providing required skills to the employee for doing the job

effectively, skillfully and qualitatively. Training of employees is not continuous, but it is

periodical and given in specified time.

• Development is any attempt to improve current or future employee performance by

increasing an employee's ability to perform through learning, usually by changing the

employee's attitude or increasing his or her skills and knowledge

TRAINING METHODS

• On-the-job: learning by physically doing the work

• Off-the-job: developing an understanding of general principles, providing
background knowledge or generating awareness.
On-the-job:
1. Job instruction training
2. Experimental training
3. Demonstration
4. Apprentice training
• Off-the-job:
1. Lecture
2. Conferences
3. Seminars
4. Team Discussions
5. Case studies
6. Role-play
PLACEMENT

• After training the employee is placed in her/his position under the charge of a manager.
• The new recruit is allowed to exercise full authority and is held responsible for the result.
Concepts:
1. Promotion
2. Demotion
3. Transfer
4. Separation
5. Absenteeism
 WAGE & SALARY ADMINISTRATION

• It is the process of fixing wage/salary to different jobs in the organization through

job evaluation negotiations with the unions and so on.
• Fair compensation package
• Wage differentials
• Balanced compensation package
• Wage negotiations and agreements
• Compensation policy
PERFORMANCE APPRAISAL

• It is the process of measuring and evaluating the performance or accomplishments,

including individual behavior of an employee on the job front for a given period.
Steps:
1. Create & setup performance standards
2. Mutually set identifiable and measurable goals
3. Measure present level of performance
4. Compare & appraise present level of performance with standards
5. Discuss the appraisal with the employee
6. Identify and initiate the corrective actions.
GRIEVANCE HANDLING

• It is a complaint, genuine or otherwise about any issues relating to the job such as about
supervisor, wages, working condition & so-on.
• Procedure to Handling a grievance:
1. Receiving the complaint in written format
2. Defining the nature of dissatisfaction
3. Getting the facts
4. Analyzing & deciding
5. Reply answer to the complaint
6. Follow up
WELFARE ASPECTS

• Personnel manager is responsible for implementing the legal provisions under the
factories act which deals with the safety, welfare & health of the industrial workers.
• There are legal enactments to govern payment of bonus, minimum wages, compensation,
administration of various benefits such as sickness benefit & so on.
JOB EVALUATION
• It is a technique of assessing systematically the relative worth of each job.
JOB EVALUATION

NON- ANALYTICAL ANALYTICAL

1. RANKING 1. FACTOR COMPARISION
2. JOB CLASSIFICATION 2. POINT RATING
MERIT RATING

• Methods:
1. Ranking
2. Descriptive or essay method
3. Forced Distribution
4. Critical Incidents
5. Comparision