INDUSTRIAL MANAGEMENT AND ENGINEERING ECONOMY

Leadership Skills

Administrative Skills

Technical Skills

(MENG510)

COURSE CONTENT
2

1.

2.
3. 4. 5. 6. 7.

Basic Management Concepts Functions of Management Industrial Organization Plant Layout Project Management Economic and Financial Analysis Quality Control

Evaluation
3

Project work - 30% Continue Ass.-20 Final exam 50%

1. BASIC MANAGEMENT CONCEPTS

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1.1 INTRODUCTION When did management start?

when

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

Objective

Group activity

Management

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.

1. BASIC MANAGEMENT CONCEPTS

Some mottos management:

The

about

the

importance

of

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.

1. BASIC MANAGEMENT CONCEPTS

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.

1. BASIC MANAGEMENT CONCEPTS

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.

1. BASIC MANAGEMENT CONCEPTS

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. BASIC MANAGEMENT CONCEPTS

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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1. BASIC MANAGEMENT CONCEPTS

Men Materials Machines Money Markets Resources

Planning

Directing
Goals Outputs

Transformation Processes
Organizing

Controlling

Fig.1.1 Process of Management

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1. BASIC MANAGEMENT CONCEPTS

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. BASIC MANAGEMENT CONCEPTS

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. BASIC MANAGEMENT CONCEPTS

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 Process of planning the the object to be work as per the achieved objective laid by the administration Lays down policies and Executes polices and principles programs
Prepares framework under which one is asked to work and execute Provides: Direction Guidance and Leadership

Process of dividing work into different duties and tasks as planned It organizes the work

Supervises and controls Draws the line of the execution of authority and assigned work determines the line of action Coordinates activities It delegates the authority and fixes responsibility

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1. BASIC MANAGEMENT CONCEPTS

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. ii.

iii.

Top management policy makers (administrators) Middle managementLower level management

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1. BASIC MANAGEMENT CONCEPTS

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. BASIC MANAGEMENT CONCEPTS

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. BASIC MANAGEMENT CONCEPTS

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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1. BASIC MANAGEMENT CONCEPTS

Administration
Top Management

Management
Fig. 1.2 Levels of Management

Low Level Management

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1. BASIC MANAGEMENT CONCEPTS

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. BASIC MANAGEMENT CONCEPTS

1.6 Managerial skills
The
1. 2.

skills required of a successful manager can be classified as

Technical skills Conceptual skills
Decision making skills Organizational skills
3.

Human relation skills

Communication skills Motivating skills Leadership skills

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1. BASIC MANAGEMENT CONCEPTS

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. BASIC MANAGEMENT CONCEPTS

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. BASIC MANAGEMENT CONCEPTS

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. BASIC MANAGEMENT CONCEPTS

1.6 Managerial skills
Top management Middle management Low level management

Conceptual

Human
Technical
Fig. 1.3 Managerial Skills