INDUSTRIAL

MANAGEMENT
FST 2210
S.P. Ngwaru
UNIT ONE
Organizations
• Organization
 A systematic arrangement of people brought together
to accomplish some specific purpose; applies to all
organizations—for-profit as well as not-for-profit
organizations.
 Where managers work (manage)
• Common characteristics
 Goals
 Structure
 People
Common Characteristics of Organizations
People Differences
• Operatives
 People who work directly on a job or task and have
no responsibility for overseeing the work of others
• Managers
 Individuals in an organization who direct the activities
of others
Organizational Levels
Three Levels of Managers
• First-line managers
 Supervisors responsible for directing the day-to-day
activities of operative employees
• Middle managers
 Individuals at levels of management between the first-
line manager and top management
• Top managers
 Individuals who are responsible for making decisions
about the direction of the organization and establishing
policies that affect all organizational members
Management Defined
• Management
 The process of getting things done, effectively and
efficiently, through and with other people
 Efficiency
 Means doing the thing correctly; refers to the
relationship between inputs and outputs; seeks to
minimize resource costs
 Effectiveness
 Means doing the right things; goal attainment
Efficiency and Effectiveness
Management
Process
Activities

Management process:
planning, organizing,
leading, and controlling
Management Process
• Planning
 Includes defining goals, establishing strategy, and
developing plans to coordinate activities
• Organizing
 Includes determining what tasks
to be done, who is to do them,
how the tasks are to be
grouped, who reports to
whom, and where
decisions are to be made
Management Process
• Leading
 Includes motivating employees, directing the activities
of others, selecting the most effective communication
channel, and resolving conflicts
• Controlling
 The process of monitoring performance,
comparing it with goals, and
correcting any significant
deviations
The Nature of Managerial Work

Managers are responsible for

o the processes of getting activities completed
efficiently and effectively, with and through other
people, and
o setting and achieving the firm’s goals through the
execution of four basic management functions:
planning, organizing, leading, and controlling.
•Both sets of processes utilize human, financial, and
material resources.
• There have been a number of studies on what
managers actually do, the most famous of those
were conducted by Professor Henry Mintzberg in
the early 1970s.
• After following managers around for several
weeks, Mintzberg concluded that, to meet the
many demands of performing their functions,
managers assume multiple roles.
• A role is an organized set of behaviours

• Mintzberg identified 10 roles common to the

work of all managers.

• The 10 roles are divided into 3 groups:

interpersonal, informational, and decisional.
• The informational roles link all managerial work together.
• The interpersonal roles ensure that information is
provided.
• The decisional roles make significant use of the
information.

• The performance of managerial roles and the

requirements of these roles can be played at different
times by the same manager and to different degrees,
depending on the level and function of management
Is The Manager’s Job Universal?
• Level in the organization
 Do managers manage differently based on where they are in the
organization?
• Profit versus not-for-profit
 Is managing in a commercial enterprise different than managing
in a non-commercial organization?
• Size of organization
 Does the size of an organization affect how managers function
in the organization?
• Management concepts and national borders
 Is management the same in all economic, cultural, social and
political systems?
Distribution of Time per Activity by
Organizational Level
Importance of
Managerial Roles
in Small and Large
Businesses
 What Are
Managerial Competencies?

 Competency – a combination of knowledge,

skills, behaviors, and attitudes that contribute to
personal effectiveness

 Managerial Competencies – sets of knowledge,

skill, behaviors, and attitudes that a person
needs to be effective in a wide range of positions
and various types of organizations
A Model of Managerial Competencies
Communication
Competency

Planning and
Teamwork
Administration
Competency
Managerial Competency
Effectiveness
Global Strategic
Awareness Action
Competency Competency
Self-Management
Competency
General Skills for Managers
• Conceptual skills
 A manager’s mental ability to coordinate all of the
organization’s interests and activities
• Interpersonal skills
 A manager’s ability to work with, understand, mentor, and
motivate others, both individually and in groups
• Technical skills
 A manager’s ability to use the tools, procedures, and
techniques of a specialized field
• Political skills
 A manager’s ability to build a power base and establish the
right connections
Specific Skills for Managers
• Behaviors related to a manager’s effectiveness:
 Controlling the organization’s environment and its
resources.
 Organizing and coordinating.
 Handling information.
 Providing for growth and development.
 Motivating employees and handling conflicts.
 Strategic problem solving.
Management Charter Initiative Competencies
for Middle Managers
1. Initiate and implement change
and improvement in services,
products, and systems
2. Monitor maintain, and improve
service and product delivery
3. Monitor and control the use of
resources
4. Secure effective resource
allocation for activities and
projects
5. Recruit and select personnel
6. Develop teams, individuals,
and self to enhance
performance
7. Plan, allocate, and evaluate
work carried out by teams,
individuals and self
8. Create, maintain, and enhance
effective working relationships
9. Seek, evaluate, and organize
information for action
10. Exchange information to solve
problems and make decisions
How Much Importance Does The
Marketplace Put On Managers?
• Good (effective) managerial skills are a scarce
commodity.
 Managerial compensation packages are one measure
of the value that organizations place on them.
 Management compensation reflects the market forces
of supply and demand.
 Management superstars, like superstar athletes in
professional sports, are wooed with signing bonuses,
interest-free loans, performance incentive packages,
and guaranteed contracts.
Why Study Management?
• We all have a vested interest in improving the
way organizations are managed.
 Better organizations are, in part, the result of good
management.
• You will eventually either manage or be
managed
 Gaining an understanding of the management
process provides the foundation for developing
management skills and insight into the behavior of
individuals and the organizations.
The Pre-modern Era
• Ancient massive construction projects
 Egyptian pyramids
 Great Wall of China
• Michelangelo the manager
Adam Smith’s Contribution To The Field
Of Management
• Wrote the Wealth of Nations (1776)
 Advocated for the economic advantages that
organizations and society would reap from the
division of labor:
 Increased productivity by increasing each worker’s skill
and dexterity.
 Time saved that is commonly lost in changing tasks.
 The creation of labor-saving inventions and machinery.
The Industrial Revolution’s Influence On
Management Practices
• Industrial revolution
 Machine power began to substitute for human power
 Lead to mass production of economical goods
 Improved and less costly transportation systems
became available
 Created larger markets for goods.
 Larger organizations developed to serve larger
markets
 Created the need for formalized management practices.
MANAGEMENT CONCEPTS

•key management theories or perspectives that

underpin the development of the Human
Resources Management concept.

Management theory
•A collection of ideas which set forth general rules
on how to manage a business or organization.
• It addresses how managers and supervisors relate
to their organizations

1.in the knowledge of its goals,

2.the implementation of effective means to get the
goals accomplished and
3.how to motivate employees to perform to the
highest standard.

There are 6 basic theories that have contributed to

the management evolution.
 Contingency approach

• The contingency theories deal with structural analysis of

variables.

• Hersey and Blanchard SITUATIONAL LEADERSHIP

THEORY says, “the effectiveness of a leader in any given
situation depends on the level of maturity of the
subordinates”

• maturity - follower’s readiness to perform tasks.

• People in the work situation may have the following
characteristics:

R1 = unable & unwilling

R2 = unable but willing

R3 = able & unwilling

R4 = able & willing

• Maturity is not age or emotional stability but the
desire for achievements, willingness to accept
responsibilities, task-related ability, security and
self-confidence.

• To adopt the correct Leadership Style, one must

first understand the relationship between task-
relevant maturity and the appropriate leadership
styles.
• Each of four leadership styles is a combination
of task and relationship behaviour.
Task Behaviour
•This is the extent to which the leader provides direction,
tells them what to do, when to do it, where to do it, and
how to it.
•It means setting objectives and defining roles.
Relationship Behaviour
•This is the extent to which a leader engages in 2-way
communication with people, providing support,
encouragement, and psychological strokes and facilitating
behaviours.
•It means actively listening to people and supporting their
efforts.
Maturity Levels
M1
•People who are unable and unwilling to take
responsibility.
•Not competent or confident.
•Thus a clear directive that provides direction and
supervision is effective.
•High task / low relationship.
•This is called TELLING and is termed "S1" or “R1”.
M2
•People who are unable but willing.
•Confident but lack skills.
•Directive and supportive behaviour is called for.
•Two-way communication and explanation.
•The leader tries to get the follower to "buy in" to the
desired behaviour.
•This involves high task and high relationship and is
termed SELLING "S2" or “R2”.
M3
•People are able but unwilling.
•lack of confidence or insecurity.
•Two-way communication and active listening are
called for.
•Support that follows efforts to use his ability.
•Thus a supportive, non-directive style.
•This is called PARTICIPATING and involves a high
relationship/low task approach "S3" or “R3”.
M4
•People at this level are both able and willing or
confident to take responsibility.
•They are permitted to run the show.
•Little direction or support is needed.
•Low task / low relationship "S4" or “R4”.
•This is DELEGATING.
R1= unable & unwilling (action- tell&coach)

R2 = unable but willing (action- give support/ sell)

R3 = able and unwilling (action- participate)

R4 = able & willing (action- delegate)