Industrial Management:

IPE 491

By
Prianka Binte Zaman
Assistant Professor
Department of IPE, BUET
Introduction
to
management
What Is Management?
– Management is the principle activity that makes a difference in how
well organizations serve people affected by them.
– The process of planning, organizing, leading and controlling the work
of organization members and of using all available organizational
resources to reach stated organizational goals.
– The process of getting things done effectively and efficiently, with
and through people.
[Organization: Two or more people who work together in a structured
way to achieve a specific goal or set of goals.
Goal: The purpose that an organization strives to achieve.
Resources: include people, skills, information and experience,
machinery, raw materials, computers and IT, patents, financial
capital, and loyal customers and employees.]
Managerial Performance
– How successfully an organization achieve its objectives, and
satisfies social responsibilities as well, depends to a large
extent on its managers.
– If managers do their jobs well, an organization will probably
achieve its goals.
Managerial Performance
Management makes human efforts more productive:
• It brings better–equipment, plants, offices, products,
services and human relation to our society.
• Improvements and Progress are its constant watchwords.
• Management brings order to endeavors - by combining
isolated events and disjointed information into meaningful
relationships.
by creating relationship, solve problems and accomplish
goals.
Organizational Performance
A measure of how efficiently and effectively managers use available
resources to satisfy customers and achieve organizational goals

• Effectiveness
– “Doing the right thing”.
– A measure of the appropriateness of the goals an organization
is pursuing and the degree to which they are achieved.

• Efficiency
– “Doing things right”.
– A measure of how well or how productively resources are used
to achieve a goal
Exhibit 1–3Effectiveness and Efficiency in
Management
Managers and Non-managerial
Employees?
• Non-managerial Employees
– People who work directly on a job or task and have no
responsibility for overseeing the work of others.
– Examples: associates, team members

• Managers
– Individuals in organizations who are responsible for
directing the efforts and activities of others aimed at
helping organizations achieve their goals.
Managers
Manager: Someone who – coordinates and oversees the work
of other people so that organizational goals can be
accomplished.

Managers is differentiated according to their levels in the

organization.
Management Levels
Management Levels
• Top Managers
– Examples; President, Chief Executive Officer, Vice-President
– Relatively ‘small group of Executives’ who manage the overall
organization and make decisions about the direction of the
organization.
– They officially represent the organization to the external
environment by meeting with government officials, executives
of other organizations, etc.
– Top Manager creates the organization’s
- goals,
- overall strategy, and
- operating policies.
Management Levels
• Middle Managers
– Examples; plant manager, operations manager, division head.
– who report to top managers and oversee and manage the activities
lower-level managers.
– Middle Management is probably the largest group of Managers in
most organizations.
– Middle managers are responsible for implementing the policies and
plans developed by top management and for oversee and manage the
activities of the first line managers.
– Plant managers, for example handle inventory management, quality
management, etc.
Management Levels
• First-line Managers
– Examples; Supervisor, Team Leader, Coordinator, and Office Manager
– Responsible for supervise and coordinate the activities of
non-managerial /operating employees to make sure that work is
performed correctly and on time.
– This position is held by employees who enter management from the
operating personnel.
– They oversee the day to day operations of their respective stores, hire
operating staffs and handle other routine administrative duties
required of them by the parent organization. In contrast to top and
middle managers typically spend a large proportion of their time
supervising subordinates.
Areas of Management
Regardless of their levels, managers may work in various areas within an
organization. In any given firm areas of management may include
marketing, finance, operations, human resources, administration and
other areas.
– Marketing mangers work in areas related to the organization’s
marketing function-getting consumers and clients to buy the
organization’s product or services. These areas include new-product
development, promotion and distribution.
– Financial mangers deal primarily with an organizations financial
resources. They are responsible for such activities as accounting, cash
management, and investments.
– Operation managers are concerned with creating and managing the
systems that create an organizations products and/or services. Typical
responsibilities of operation managers include production control,
inventory control, quality control, plant layout and site selection.
.
Areas of Management
– Human resources 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 system, and discharging low-performing and
problem employees.
– Administrative managers are not associated with any particular
management specialty. 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.
– Many organizations have specialized management positions in
addition to those already described, such as public relations managers,
research and development managers. In some cases, organizations
create temporary management positions to handle specialized
activities with a limited duration.
Four Management Functions
Planning
Management functions that involves
– establishing goals
– establishing a suitable course of action/ strategies for
achieving those goals
– developing plans to integrate and coordinate
activities

Planning produces a picture of desirable future

circumstances-given currently available resources and
past experiences, etc. Plans made up by top
management.

Steps in the Planning Process

✔ Deciding which goals the organization will pursue
✔ Deciding what courses of action to adopt to attain
those goals
✔ Deciding how to allocate organizational resources
Organizing
Management functions that involves
– determine what tasks are to be done
– who is to do them
– how the tasks are to be grouped
– who reports to whom
– where the decisions are to be made

Organizing is the process of engaging two or more people

in working together in a structured way to achieve a
specific goal or a set goals
Different goals require different organizational structure.
Managers must match an organization’s structure to its
goals and resources-a process called organizational design.
Organizing produces a structure in an organization through
which future plans will be pursued
Leading
Management functions that involves
– motivating subordinates
– influencing individuals or teams as they work
– selecting the most effective communication channels
– or, dealing in any way with employee behavior issue

Leading is the process of directing and influencing the

task-related activities of group members or an entire
organization
Managers lead in an attempt to pursue others to join them
in pursuit of the future that emerges from the planning
and organizing steps.
Leadership involves using power, personality, and
influence, persuasion, and communication skills
Outcome of leadership is highly motivated and committed
workforce
Controlling
Management functions that involves
– establishing the standard of performance
– monitoring actual performance
– comparing actual performance to the established
standard
– taking corrective actions if deviations are detected

Controlling is the process of ensuring that actual

activities conform to planned activities
Managers have to evaluate how well an organization has
achieved its goals and to take any corrective actions
needed to maintain or improve performance.
Through the controlling function, the manager keeps the
organization on track.
The outcome of the control process is the ability to
measure performance accurately and regulate
organizational efficiency and effectiveness
What Roles Do Managers Play?
In the 1960s, Henry Mintzberg did an empirical study of chief
executives and discovered that managers were engaged in a
number of varied, un-patterned, and short-duration activities. He
defined management by categorizing what managers do based on
the managerial roles they perform at work. Henry Mintzberg
observed that a manager’s job can be described by ten roles
performed by managers in three general categories,
• Interpersonal Roles
– Figurehead, Leader, and Liaison
• Informational Roles
– Monitor, Disseminator and Spokesperson
• Decisional roles
– Entrepreneur, Disturbance Handler, Resource Allocator and
Negotiator
What Roles Do Managers Play?
Interpersonal Roles
Roles that managers assume to provide information, direction and
supervision to both employees and the organization as a whole.
– Figurehead—symbolizing the organization’s mission and what it is
seeking to achieve. Obliged to perform a number of routine duties
of a legal or social nature. Greeting visitors, signing legal
documents.
– Leader—responsible for motivation and activation of subordinates.
Provides leadership and direction.
– Liaison—linking and coordinating the activities of people and
groups both inside and outside the organization.
Informational Roles
Roles associated with the tasks needed to obtain and transmit information
in the process of managing the organization.
– Monitor—Seeks out and analyze information related to your
organization and industry collected from both the internal and
external environment.
– Disseminator—Communicates potentially useful information
internally and transmits information to influence the attitudes and
behavior of employees.
– Spokesperson—Represents and speaks for the organization and
transmits information about the organization and its goals, policies
and actions to the people outside it.
Decisional Roles
Roles associated with methods managers use in planning
strategy and utilizing resources.
– Entrepreneur—Creates and controls change within the
organization - solving problems, generating new ideas,
implementing them and supervise.
– Disturbance handler—Responsible for corrective action
when the organization faces unexpected events or
crises.
– Resource allocator—Allocates funds, assigning staff and
other organizational resources among functions and
divisions, setting the budgets of lower managers.
– Negotiator—Involved in direct important negotiations
within the team, department, or organization
Fundamental management skills
Robert L. Katz , a teacher and
business executive, has
popularize a concept
developed early in the
century by Henry Fayol.
Fayol found that managers
need three essential skills;
technical,
Human/ interpersonal
conceptual.
Fundamental management skills
Technical skills: Technical skills include knowledge of and proficiency
in certain specialized such as engineering, computers, finance or
manufacturing. Although many middle managers have involved in
technical aspects of the organization’s operations, technical skills
are especially important for first line managers, who spend much
of their time training subordinates and supervising their
work-related problems. If they are to be effective managers, they
must know how to perform the tasks assigned to those they
supervise.
These skills not only involve operating machines and software,
production tools, and pieces of equipment but also the skills
needed to boost sales, design different types of products and
services, and market the services and the products.
The need for technical skills is less when a manager moves higher in
hierarchy but still technical proficiency helps in taking decisions.
Fundamental management skills
Human or Interpersonal Skills: Managers spend considerable time
interacting with people both inside and outside the organization.
interpersonal skills—the ability to communicate with, understand,
and motivate both individuals and groups. These skills enable the
managers to make use of human potential in the company.
Because of the multitude of roles that managers must fulfill, a
manager must also be able to work with suppliers, customers,
investors, and others outside the organization. Managers with
human skills can get best out of the people working with them.
This skill is although important for managers at every level, is the
primary skill needed by middle managers, their ability to tap
technical skill of their subordinated is more important than their
own technical proficiency.
Fundamental management skills
Conceptual Skills: Conceptual skills are the ability to integrate and co
ordinate various activities. These involve the skills, managers
present in terms of the creativity, knowledge and ability for
abstract thinking and formulating ideas. Managers should be able
to visualize the enterprise as a whole, to envision all the functions
involved in a given situation or circumstance, to understand how
its parts depend on one another, anticipate how a change in any of
its parts will affect the whole and to visualize how the organization
fits into its broader environment
For example, the managing director of a telecom company visualizes
the importance of better service for its clients which ultimately
helps attract a vast number of clients and an unexpected increase
in its subscriber base and profits.
Importance of this skill increases as one rises through the ranks of a
management system.
Fundamental management skills
Fayol and Katz suggest that although all three skills are essential for a
manager, the relative importance of these skills varied according to
the manager’s level within the organization.
Other management skills
Besides the skills discussed above, there are other skills that a
manager should possess:
Diagnostic Skills: Successful managers also possess diagnostic
skills—skills that enable them to visualize the most appropriate
response to a situation. A physician diagnoses a patient’s illness by
analyzing symptoms and determining their probable cause.
Similarly, a manager can diagnose and analyze a problem in the
organization by studying its symptoms and then developing a
solution.
For example, a particular division may be suffering from high
turnover. With the help of diagnostic skill, the manager may find
out that the division’s supervisor has poor human skill in dealing
with employees. This problem might then be solved by transferring
or training the supervisor.
Fundamental management skills
Decision-Making Skills: Effective managers also have good
decision-making skills. Decision-making skills refer to the
manager’s ability to correctly recognize and define problems
and opportunities and to then select an appropriate course
of action to solve problems and capitalize on opportunities.
No manager makes the right decision all the time. However,
effective managers make good decisions most of the time.
And, when they do make a bad decision, they usually
recognize their mistake quickly and then make good
decisions to recover with as little cost or damage to their
organization as possible.
Fundamental management skills
Time Management Skills: Finally, effective managers usually have
good time management skills. Time management skills refer to the
manager’s ability to prioritize work, to work efficiently, and to
delegate work appropriately. As already noted, managers face
many different pressures and challenges. It is too easy for a
manager to get bogged down doing work that can easily be
postponed or delegated to others.10 When this happens,
unfortunately, more pressing and higher-priority work may get
neglected.
A good manager has all these skills, but it is not necessarily true that
all of them are equally important or required for the assigned job
or post of a manager.
Why study management?

1. The more efficient and effective use of scarce resources

that organizations make of those resources, the greater
the relative well-being and prosperity of people in that
society
2. Helps people deal with their bosses and coworkers
3. Opens a path to a well-paying job and a satisfying
career
Universal Need for Management