Industrial Management & Operations Research notes

Basavraj KulaliAssistant Professor

DKTE’s Textile & Engineering InstituteICHALKARANJI, Dist : Kolhapur

www.basavaraj.in

As per Shivaji University Syllabus

Syllabus

Chapter – 1: Functions of management • Planning• Organizing• Staffing• Directing• Controlling

Syllabus

Chapter – 2 : Marketing• Marketing & Selling concept• Advertising• Material management• Inventory Control

Syllabus

Chapter – 3 : Costing• Elements of Cost, Cost estimation• Entrepreneurship• Starting of SSI Units• Forms of Business organizations• Social responsibilities and Business ethics in

India

Introduction to management

Definition of management

S. George : Management is getting things done through others

George Terry : Management is a distinct process consisting of planning, organizing, actuating and controlling performance to determine and accomplish the objectives by the use of people and resources.

Henry Sisk : Management is the co-ordination of all resources through the process of planning, organising, directing and controlling in order to attain stated goals.

What is Process of management

Management is a process. This process uses the resources and using these resources it tries to attain Goals.

Resources are : Men, material, machine, money, method and Information

Goals are : Producing products, Offering services, Profit maximization and Social responsibility.

Nature & Characteristics of Management

• Management is an organised activity• Management is purposeful activity• It involves efforts of groups• It works as a catalyst• It’s a decision making process• It co-ordinates activities and various resources• It is an integrated process• Management is both science and art• Management is multidisciplinary• Management is a Continuous process

Functions of management

• Planning• Organising• Staffing• Directing• Controlling

Planning :

• Planning is a most basic and primary function of management

• Planning is a function determines in advance what should be done, how it is to be done, by whom it is to be done etc

• It is a determination of objectives & goals• Formulation of policies, rules and budgets• Laying down procedures and standards of

performance

Organising :

• Organising involves identification and classification of required activities and grouping the activities to attain objectives

• Work is assigned to the people according to their knowledge.

• Organising involves classifying who will do what task and who is responsible for what results.

Staffing :

• Determination of manpower requirement in terms of number and skill required

• Recruitment and interviewing candidates• Selection of suitable candidates• Placement, induction and orientation• Training and development of employees• Transfer, promotion and demotion of employees• Compensation and performance appraisal

Directing :

• Issuing orders and instructions to the subordinates.

• Supervising subordinates at work• Motivating them for effective work• Effective communication

Controlling :

• Establishing standards of performance• Measuring current performance and

comparing it against the established standards• Finding out reasons of difference between

standard performance and current performance

• Taking corrective measures if there is any difference to ensure attainment of objectives

Scope of management :

• Scope of management is very vast• Every field needs management• Management is interdisciplinary• Management principles are universal in nature

Importance or Significance of management :

• Effective utilization of resources • Development of resources• To incorporate innovations• Integrating various groups• Stability in the society

Levels of Management

Management

Top LevelManagement

Middle level management

Lower LevelOr

Supervisory level

Top Level Management

• It Consists of Board of Directors, Chairman, CEO, MD or GM, President, VP etc

• It is the highest authority• It decides the objectives of Organisation• It is responsible for policy formation• It control the organisational operations

Middle level management

• It includes departmental, divisional or sectional heads

• It implements policies chalked out by top management

• Act as mediator or connector between top management and lower lower level management

• It is responsible for creating work spirit among workers

• It trains employees and co-ordinates other departments

Lower level management

• It consists of senior supervisors, line supervisors etc• The executives at this level are in direct contact with

workers• Their main responsibility is to see that the work is

carried out properly• Workers look towards supervisors for orders,

policies, instructions, guidance, encouragement etc• They are responsible for maintaining descipline

among workers

Difference between Management and Administration

• Some authors say management and administration are say

• Some say Administration is above management

• And some say Administration is part of management

Difference between Management and Administration

Administration Management

1. It is a thinking process2. It is mainly top level function3. Administrative decisions are mainly

influenced by public opinion and external environment

4. Planning and control are main functions

5. Conceptual skills are required6. It is mainly used in government and

public sector7. Ex : Ministers, commissioner,

registrar, governor etc

1. It is a doing process2. It is mainly middle and lower level

function3. Management functions are mainly

influenced by objectives and policies of organizations

4. Directing and organising are main functions

5. Technical and human skills are required

6. It is mainly used in business organisations

7. Ex : MD, GM, Sales manager

Management & Social responsibility

• Every organisation uses social resources. So it has certain responsibilities towards society.

Social responsibility towards its workers :

• Organization should protect interest of workers

• Organization must pay fair wages and other financial benefits

• Organization should provide growth opportunities

• Organizational climate should be such that workers will feel like working in home

Social responsibility towards Consumers :

Consumers are those because of whom organization make profits. So it should have social responsibilities towards consumers

• Consumer should be charged with fair and reasonable prices

• Product should not be harmful to health• Management should not misguide consumer with false

advertisement• Organisation should not create scarcity of product for

profit• It should provide proper service

Social responsibility towards Society

• Organisation should provide healthy environment by controlling pollution

• It should not take decision which will harm to society as a whole

• It should maintain fair business policies and practices.