unit 2 functions of management 4spp
TRANSCRIPT
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1
MG9362:IndustrialMa
nagement
Unit2
FUNCTIONSOFMANAGEMENT
AnnaUniver
sity
OBJECTIVE
Thestudentswillbeabletounderstandand
applythe
followingconcepts:
Plannin
NatureandPurpose
Objectives
Strateies
PoliciesandPlanningPremises
Organizing
Premises
Departmentalization
ecenrazao
n
Lineandstaff
Organizational
culture
Organizational
Development.
2
OBJECTIVE[CONTD.]
Staffing
selectionandtraining
Placem
ent
P
roductivity&Operations
M
anagement
IndustrialSafety.
Performanceappraisal
CareerStrategy
Leadin
Manag
inghumanfactor
Leadership
Decision
Making
Controlling
rocesso
onrong
Contro
llingtechniques,
Preven
tivecontrol
3
4
PLANNING
Unit2.1
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PLANNING
-DEFINITION
Planningisdecidinginadvance
whattodo,
howtod
o
whento
do,
whoistodo.
annng
rges
egapromwere
weareowerewe
wanttogo.
5
PLANNINGPROC
ESS
organization
structuretohave
organization
structuretohave
Helpstoknow
PaObectives&how
PaObectives&how
Whatkindofpeople
weneed&when
Whatkindofpeople
weneed&when
Affects
leadership&
toachievethem
toachievethem
Howmost
effectivelytolead
people
Howmost
effectivelytolead
people
Ensuressuccessoflan
Byfurnishing
standardsof
control
Byfurnishing
standardsof
control
6
CHARACTERISTICSOFPLANNING
Closelyassociatedwiththegoalsoftheorganization(explicit
/implicit).Welldefinedgoalsleadto
efficientplanning.
Concerne
dwithforecastinoffuture
situationinwhichan
organizationhastofunction.Accurateforecastingleadsto
correctfuturecoursedecisions.
achieving
organizationalgoal.
Comprehensive
Flexiblefo
rfuturedynamics.
7
NATURE&IMPO
RTANCEOFPLANNING
Nature
Contributiontopurpose&objective
Primacoflan
nin
Pervasivenessofplanning
Efficiencyofplans
mporance
Tooff-setuncer
tainty&change
Tofocusattentiononobjectives
Tohelpincoord
ination
Togaineconom
yinoperation
Toincreaseorganizationaleffectiveness.
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TYPESOFPLANS
StandingPlan
Single-Us
ePlan
Policies
Strategies
Procedu
res
Rules
Methods
Projects
Budgets
9
STEPSINPLANN
ING
Perceptionofop
portunities
Establishingobjectives
Determiningalte
rnativecoursesofaction
Evaluatingalternativecourseofactio
Selectingthebestcourseofaction
Formulatingsupportingderivativeplan
uanyngpan
symanguge.
10
LIMITATIONSOFPLANNING
Lackofaccurateinformation
Problems
ofchange
Internalin
flexibilities
External
inflexibilities
Rigidityin
planning
Time&co
stfactors
11
PLANNINGPREM
ISES
ImportanceofForecasting
Helpseffective
planningbyprovidingscientific&reliabledata&facts.
Aimsatreducinguncertaintyfactors.
Make&review
offorecastwillleadtobetterdecisionmaking
Efficientmanagerialcontrol.
Selectionofpremiseswhichbearmaterialonpr
ograms.
Developmento
falternativepremisesforconting
encyplanning.
.
Communicationofpremises.
Forecastingmethods
Qualitativetechnique
Quantitativetechniques
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CORPORATEPLANNINGCHARACT
ERISTICS
Dealswithformulationofobjectives,
plans,policies&
strategies
&makingdecisionsonvitalmattersaffectingthe
survivaloftheorganization.
Dealswithfutureimpactofcurrentd
ecisions.
Involvess
ystematicidentificationofopportunitiesandthreats
strengths
&weaknessoftheorganiz
ation.
Providesanintegratedframeworkwithinwhichthefunctional
anddepartmentalplansareformulated.
13
CORPORATEPLANNINGOBJECTIVE
Allocatescarceresourcelikecapital,materials&
technologicalkn
ow-howamongproduct/ma
rketalternatives.
Prearetoadottoenvironmentalchanes
aso
ortunities
orthreat.
Coordinatestrategicactivitytoreflecttheinternalstrength&
.
Prepareforadap
tation&integrationwhichare
complementarytoeachother.
Adaptationfocus:wheretogo
Integrationfocus:howtogetthereefficiently
earnrom
as
omaeeerecsonsn
resen
uure.
Selfimprovement.
14
CORPORATEPLANNINGIMPORTAN
CE
Encourag
esthehabitofforwardthin
kingonthepartof
manager
Helsattainoverallcoordinationamonthevariouslevelsof
managem
ent
Createsa
greaterawarenessofbusinessenvironment&
.
Enablestheorganizationtoanticipatetechnologicalchanges
&prepare
forthesame.
Leadtoim
provementinoverallperfo
rmanceofthe
organization.
15
PROCESSOFCO
RPORATEPLANNING
Scanningtheenvironment
Makingcorporat
eappraisals
Makingstrategie
s
Developingactio
nplans
Identificationof
jobstobeaccomplished
Determiningthe
sequenceofjobs&activities
Layingdownprocedures&methodofwork
Implementingstrategy
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DIFFERENCE:STRATEGIC&OPERATIONALPLANS
Timehorizon:
Strategicplantakeseveralyears/dec
adeintoconsideration.For
operatio
nalplans,ayearisoftenrelevanttimeperiod.
Scope:
Strategicplansaffectawiderangeof
organizationalactivities,
scope.T
henumberofrelationshipsinvolvedisthekeydifference.
Degreeofdetails:
raegcgoasaresaenermsa
oosmpsc
generc.
Ontheo
therhand,operationalplans,asderivativesofstrategic
plansarestatedinrelativelyfinerdeta
ils.
17
STRATEGIESATDIFFERENTLEVELS
Corporatestrate
gy:
Strategicdecisionsrelatetoorganization-widepolicies.Major
policydecisions
involveacquisition,diversific
ationandstructural
re-designing.
Businesslevelstrategy:
objectives.Itservesdistinctproduct/market/customers
/geographicalarea.
SBUsuccessdependsoneffectivefunctionofmarketing,finance,
production,personnel,R&D.
18
STRATEGICPLANNING-FEATURES
Emphasiz
esthebasicmission&goaloforganization.
Determinesthebasicpolicy&programoforganization.
Providesaframeworkforoerationallanninonda-t-da
decisionmaking.
Timefram
eislargerthanothertypes
ofplanning.
Providescoherentpolicy&decisiononactivityovertime.
Dealswithuncertainenvironmentby
forecasting
o
ortunities&threats.
Comprehensive,unifiedplanfordeploymentofscarce
resources.
19
20
ORGANIZING
Unit2.2
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ORGANIZA
TIONTHEORY
Itisthestudyofstructure,functionin
gandperformanceof
organizationsandthebehaviourofin
dividualwithinthem.
Twoaroache
First:organizationasadynamicproce
ssamanagerialactivity
bringing
peopletogethertopursuea
commongoal-called
rocess
oforanizin.
Second:organizationasastructureo
frelationshipsamong
positionsattainacommongoal.
21
ORGANIZATIONTHEORY[CONTD.]
CommonFeatures
DivisionofLabo
rs
Coordination
Accomplishmen
tofgoals/objectives
Authority/responsibilitystructure.
rocesso
rganzaon
Determinationo
fobjectives
Enumerationof
activities
Classificationofactivities
Fittingindividua
lstofunction
.
22
ORGANIZA
TIONTHEORY[CONTD.]
ActivityAnalysis
DecisionAnalysis
InformalO
rganization
ImportanceofOrganizatio
23
HIERARCHYOFOBJECTIVESFORORGANIZATIONAL
LEVELS
24
RelationshipofObjectives&OrganizationalLevels
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PRINCIPLE
SOFORGANIZING
Unityofo
bjective
Efficiency
Authority&responsibilit
Balance
Divisiono
fwork
Functiona
ldefinitio
Continuity
FacilitationofLeadership
Scalarprinciple
(Chainof
Command)
Unityofc
ommand
Unitofd
irection
Responsibility
25
TYPESOFORGANIZATION
Military/Linesystem
Functionalsyste
m
Matrixsystem
Hybriddesignsy
stem
26
MILITARY/LINESYSTEM
General
Manager
Manager
Zone2
Manager
Zone1
anager
District
1
anager
District2
anager
Dis
trict1
anager
District2
27
MILITARY/LINESYSTEM[CONTD.]
Merits
Simplicity
Unifiedcontrol
Demerits
Overloading
Lackofsecialization
Strongdisciplin
e
Fixedresponsib
ility
Inadequacyof
commun
ication
romp
ecso
Flexibility
Suitability
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FUNCTION
ALSYSTEM
Manager
Manager2
Manager1
Manager3
Clerk1
Clerk2
Clerk3
Clerk4
Clerk5
Clerk6
Clerk7
Clerk8
29
FUNCTIONALSYSTEM[CONTD.]
Merits
Ensuresgreaterdivisionoflaborspecializationoffunctions.
Hihdereeofefficiencerformlimitedo
eration.
Separates-mental&manualfunctions.
Facilitatesmassproductionstandardization
&specialization.
emers
Unstableweakdisciplinarycontrol.
Complicatedfunctionintomanysub-function.
Hardtofixresponsibilityforunsatisfactoryresults.
Conflictamongforemanofequalranks.
30
LINE&STA
FFSYSTEM
31
LINE&STAFFSY
STEM[CONTD.]
Merits
Plannedspecia
lization
ualitdecision
Prospectforpersonnelgrowth
Trainingground
forpersonnel
emers
Lackofwelldefinedauthority
Line&staffcon
flicts
Suitability
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MATRIXSY
STEM
33
MATRIXSYSTEM
[CONTD.]
Merits
Involves&challengesmatrixteammembers.
Providesenlaretasksforeole.
Developsemplo
yeeskills.
Encouragespeopletoidentifywithendproducts.
osersex
y
rougou
eorganzaon.
Motivatesinterd
isciplinarycooperation.
Providesforintegrationoforganizationalinformation.
Fostersthedevelopmentofmanagerialskills.
Freestopmanagementforeffectiveplanning.
34
MATRIXSY
STEM[CONTD.]
Demerits
Demand
shighlevelofinterpersonalskills.
Leavesneativeimactonmoralewhenersonnelare
reshuffled.
Fostersconfusion&frustrationfromit
smultiplecommand
structure.
Leadsto
powerstrugglesbetweenfun
ctional&projectmanagers.
Causestolosesightofbroaderorganizationalgoals.
auses
upcaonoeorsyproecgroups.
Costlytoimplement&maintain.
35
HYBRIDSYSTEM
BANK
PRESIDENT
FUNCTIONAL
PRODUCT
ExecVP
Bank
Operation
ExecVP
Loans&
Investment
DEPARTMENTATION
DEPARTMENTATION
VP
Account
VP
Personnel
VP
Personal
VP
Commercial
ExecVP
Branch
GEOGRA
PHIC
DEPARTM
ENTATION
Branch
Branch
Branch
36
2
1
3
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HYBRIDSY
STEM[CONTD.]
Merits
Organizationenjoystheuniquebenefitsofbothfunctional&
divisionalDepartmentationstructures.
Helpsproperalignmentofcorporate&
divisionalgoals.
Fostersflexibilitywithindivisions.
.
Demerits
Excessiveduplicationofactivitiesbetweenfunction&divisions.
Createc
onflictbetweenheadquarter&divisionalfunction.
37
DEPARTMENTATION
Departmentation
Functional
Deartmentation
Divisional
Deartmen
tation
Geographical
Product
Departmentation
Custome
r
Departmentation
Location
Departmentation
38
FUNCTION
ALDEPARTMENTATION
Ped
APed
Ps
APed
Ps
Mkn
Enn
Fn
Poo
__Marketing
Research
__Marketing
__Engineering
Administration
__Preliminary
__Financial
Planning
__Budgets
__P
roduction
P
lanning
__Industrial
__Advertising
&Promotion
__Sales
__Electrical
Engineering
__Mechanical
__Accounting
__Cost
Accounting
__P
roduction
E
ngineering
__P
urchasing
Administration
__Sales
Engineering
__Hydraulic
Engineering
__Statistics&
Data
Processing
__T
ooling
__G
eneral
P
lanning
39
__ __QualityControl
FUNCTIONALDE
PARTMENTALIZATION[C
ONTD.]
Advantages
Itisalogicalreflectionoffunctions
Maintainsower&
restieofmaorfunctions.
Followsprinciplesofoccupationalspecialization
Simplifiestraining
urnsesmean
so
gconroaop.
Providesspecia
lization
Allowstaskassignmentconsistentwithtechn
icaltraining
Allowseconomiesofscale
Allowsexcellentcoordinationwithinfunctions
Facilitatestopm
anagementindirection&con
trol
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FUNCTION
ALDEPARTMENTALIZAT
ION[CONTD.]
Disadvantage
De-emphasisofoverallcompanyobjectives
Overse
cializes&narrowviewointsofke
ersonnel
Reducescoordinationbetweenfunctions
Slowadaptationtochangesinenviron
ment
mseveopmenogeneramanagers
Poorcommunicationacrossfunctionaldepartments
Slowres
ponsetimestoexternalchanges
Concentrationofdecisionsattopcausingdelay
Difficultyinpinpointingresponsibility
Narrow
ersectivewithinfunction
Failstoencouragecreativity.
41
PRODUCTTYPE-DIVISIONALDEPARTME
NTATION
Ped
Mkn
Ps
Fn
Rdn
Inco
Eeroc
Inra
Rdn
InrumDvso
IncoLg Dvso
Eeroc
MeDvso
Inra
TsDvso
__Engineering
__Production
__Accounting
__Engineering
__Production
__Accounting
Sales
__Engineering
__Production
__Accounting
Sales
__Engineerin
g
__Production
__Accounting
42
__
__
__
__
PRODUCT
TYPE-DIVISIONALDEPARTMENTATION
[CONTD.]
Advantages
Placesa
ttention&effortonproductline
Facilitatesuseofsecialcaitalskillsfacilit.
Permitsgrowth&diversityofproduct
services
Improvescoordinationoffunctionalactivity
acesrespons
yorproa
vs
onaeve
Furnishmeasurabletraininggroundfo
rmanagers.
Provideshighproductvisibility
Suitedforrapidchange
Allowsp
arallelprocessingofmultiple
tasks
Permitsfulltimeconcentrationontasks
Fostertrainingofgeneralmanager.
43
PRODUCTTYPE-DIVISIONALDEPARTME
NTATION
[CONTD.]
Disadvantage
Requiresmorepersonswithgeneralmanagerabilities
Tendstomakemaintenanceofcentralservicedifficult
Presentsincrea
sedproblemoftopmanagementcontrol
Promotesneglectoflongtermpriorities
ausesconc
eween
vsonaasscorporaeprore
Failstoencouragecoordinationofactivities
Allowsin-depth
competenciestodecline.
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CUSTOMERTYPE-DIVISIONALDEPARTMENTATION
Ped
Cmty
Bn
Cpae
Bn
HnBn
Actua
B
n
g
g
g
g
45
CUSTOMERTYPE-DIVISIONALDEPARTM
ENTATION
[CONTD.]
Advantages
Encouragesconcentrationoncustomerneeds
Givescustomersthefeelinthattheareunderstandintheir
suppliers(bank)
Developsexpertnessincustomerarea
Adaptivetoenvironmentalchanges
Facilitatesparallelprocessingofmultipletask
Facilitatesastrongmarketingphilosophy
Providesaclearplacementofresponsibilities
.
46
CUSTOMERTYPE-DIVISIONALDEPARTMENTATION
[CONTD.]
Disadvantage
Maybed
ifficulttocoordinateoperationsbetweencompelling
custome
rdemands
Require
managers&staffexpertincu
stomerproblem
Customergroupmaynotalwaysbeclearlydefined
Wastesresourcesthroughduplication
ofeffort
Tendsto
lessentopmanagementcont
rol.
47
GEOGRAPHICAL
TYPE-DIVISIONALDEP
ARTMENTATION
Ped
Mkn
Ps
Fn
Pcn
WenRo
Shn
Ro
Nhn
Ro
EenRo
__ __Engineering
__Production
__Accounting
__ __Engineering
__Production
__Accounting
__ __Engineering
__Production
__Accounting
__ __Engineering
__Production
__Accounting
48
__Sales
__Sales
__Sales
__Sale
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GEOGRAPHICALTYPE-DIVISIONA
LDEPARTMENTATION
[CONTD.]
Advantages
Placesresponsibilityatalowerlevel
Emhasisonlocalmarket&
roblems
Improvescoordinationinaregion
Takesadvantagesofeconomiesoflocaloperations
eera
ce--acecommuncaonw
ocacusomers
Fastresponsetothelocalenvironmen
t
Promote
sflexibility,focusonregionalgoals
Fostercoordinationacrossfunctional
departments
Aidsinthedevelopmentofgeneralma
nagement.
49
GEOGRAPHICAL
TYPE-DIVISIONALDEP
ARTMENTATION
[CONTD.]
Disadvantage
Requiresmorepersonswithgeneralmanagerabilities
Tendstomakemaintenanceofcentralservicedifficultandma
requireservicessuchaspersonnel/purchas
ingatlocallevel
Increasedproblemoftopmanagementcontrol
Encouragescompetitionforresources
Tendstolessen
topmanagementcontrol
50
CENTRALIZATION
Itisaconditionwhereinmuchofthe
decisionmaking
authorityisretainedatthetopofthe
managerialhierarchy.
Advantaes
Broadoverviewofbusinessiseasiertoachieve
Strategicdirectionsettingiseasier
vesa
soue
cearconro
Makesadministrationeasier
Commonstandardscanbefixed
Providescertainexpertfunctionscosteffectively
Conflictingdecisionsareeasiertoavo
id
.
51
DECENTRALIZAT
ION
Itisaconditionwhereinmuchofthedecisionmaking
authorityispush
eddownwardtothelowermanagementlevel.
Advantaes
Localmanagem
entcanreacttochanginglocalconditionssothat
businesscanac
tquickly
,
understandingoflocalconditions
Greaterlikelihoodofinnovation&creativity
makeshealthier
Localresponsib
ility&authorityeffectivema
nagerialskill
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DECENTRALIZATION[CONTD.]
Higherinvolvement&motivationgreaterproductivity&profit.
Reducedburdenofadministrativepap
erwork
Leaner&easierfunctionaldeartmen
tcontrol.
53
AUTHORITY,RES
PONSIBILITY&DELEGA
TION
Authorityisleg
al,orrightfulpowerthatgivesarightto
commandortoa
ct.
Sourcesofauthorit:
Formalauthoritytheory
Acceptancethe
ory
espons
ys
ano
gaonoeperorm
e
ysuornae
ofthesaiddutiessetbytheauthoritativesu
perior.
ResonsibilitCANNOTbedeleated.
Principleofdele
gation
Functionaldefin
ition;Scalar;Authority-level;Unityofcommand;
.
54
MISTAKES
INORGANIZATION
Failureto
planproperl
Failureto
clarifyrelationships
Failureto
balancedelegation
Confusion
oflinesofauthority/informatio
Authority
withoutresponsibility
Responsibilitywithoutauthority
areessappcaonosa
evce
Misuseof
functionalauthority
Misuseof
servicedepartment
Over-orga
nizing
55
ORGANISATIONA
LCULTURE
Theacceptedw
ayofthinking,feeling,and
actinginan
organization
Sharedbeliefsaboutwhatisimortantand
howthinsare
done
Aninterdependentsetofvaluesandwaysofbehavingthat
Socialforcesth
roughwhichpeoplelearnn
ormsandvalues.
Theyarerewardedwhentheyacceptthemandostracized
whentheydonot.
Whatgoesonaroundhere
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ORGANIZA
TIONALDEVELOPMENT
Itincludesresearchtoascertainthe
psychologicalhealthof
theorganization.
Accomlishedusin
eriodicemlo
eesurve.
Ittacklestheorganizationfor:
Absente
eism
Lowproduction
Interpersonalconflict
Resistan
cechange.
DomOC Sraee
PoemRto
Ogzao
Das
F
Inevo
Mem
57
&Euo
58
STAFFING
Unit2.3
PERSONNELMANAGEMENT
HumanResourceManagement(HRM
)
Integral
Distinctivepartofmanagementconcernedwith
eoleat
workrelationshiwithintheoranization.
Success,
growthanddynamicsofan
organizationdepends
ondevelopmentofHR.
HRunlim
itedpotentialgrowth&p
erformance.
Developm
entofHRdependsonp
roviding,sustainingand
continuou
sanalsisofthefollowin:
Safe&c
omfortableworkcondition.
Decent&competitivewages&incentives
Training
&development.
59
SYSTEMSAPPRO
ACHTOSTAFFING
Enterpriseplans
arethebasisofstaffin
Organizationpla
nsprovideakeytostaffing
needs
.
Managementinventoryisdeveloped.
Recruitment,selection,placement&productionisensured.
Managersareap
praised.
Provisionoftraining&developmentisensu
red.
eang
conrongunconsarecarreo
u.
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SYSTEMSAPPROACHTOSTAFFING
EXTERNALENVIRONM
ENT
Enterprise
Plans
Leading&
Controlling
Organization
Plans
Appraisal
Career
Strategy
Training
&
Development
INTERNAL
ENVIRONMENT
Number
&
Kindso
f
Managers
Require
d
Analysisof
External
Source
Requirement
Manager:
Inventory
resen
FutureNeeds
forManagers
Internal
eecon
Placement
Promotion
Separation
61
ESTABLISHINGO
RGANIZATIONSTRUCTURE
Developmentof
structuralguidelines.
Structureappropriatecompatibleexternalenvironment.
Structureconsistentsu
ortiveoa
Structureaccommodatediversity
Jobdesigningdetermineindividualwork
responsibility.
Groupjobslogicalarrangemen
Jobcontent(intrinsic)Motivationalfactor.
Jobcontexte
xtrinsicexoenous.
62
RECRUITM
ENT&SELECTION
JobDescriptio
Applicatio
nforms
Interviewing
Physicalexaminatio
Induction
/orientation
63
INDUSTRIALLAW
TheEmploymentExchangesAct,1959.
TheContractLabourAct,1970.
,
.
ThePaymentofWagesAct,1936.
TheMinimumWa
gesAct,1948.
ThePaymentofGratuityAct,1972.
TheEmployees
ProvidentFunds&Miscella
neousProvisions
,
.
TheEmployees.StateInsuranceAct,1948.
TheMaternitBenefitAct,1961.
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CONCEPT
OFHRD
HRDisaprocessbywhichemployeesofanorganization
arehelpedinacontinuous&planned
wayto:
Acuire
/sharencaabilitiesreuiredtoerformvarious
functionsassociatedwiththeirpresen
t/futurerole.
Develop
theirgeneralcapabilitiesasindividuals&discover/
exloittheirinnerotentialfortheirown/oranizational
developmentpurposes.
Develop
anorganizationalcultureinw
hichsupervisor-
subordinaterelationshis,teamwork,
&collaborationamonsub-
unitsare
strong&contributetoprofes
sionalwellbeing,
motivation,&prideofemployees.
65
CONCEPTSOFH
RD[CONTD.]
NeedforHRD.
GoalsofHRD.
.
HRDsubsystems
Performanceap
praisal
Potentialappraisal&development
Feedback&per
formancecoaching
Training
Organizationaldevelopment(OD)
mpoyeewea
re
HRinformation
Qualityofwork
life
66
DESIGNINGANINTEGRATEDHRDSYSTEM
Focus
Adaptation&changeinorganizationc
ulture
Contextualfactors
Building
linkageswithotherfunctions
Specialization&diffusionoffunctions.
rucure
o
ysem
EstablishingtheidentityofHRD
Ensuringrespectabilityforfunction
Balancin
gdifferentiation&integration
Establishinglinkagemechanisms
67
DESIGNINGANINTEGRATEDHRDSYSTE
M[CONTD.]
FunctioningofH
RDSystem
Buildingfeedba
ck&reinforcementmechanisms
Balancin
uantitative&
ualitativedecisions
Balancinginternal&externalexpertise
Planningforevo
lutionofHRD
eograpcap
asng
Verticalphasin
g
Functionalpha
sing
opscaon
pasng
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69
LEADING
Unit2.4
SUPERVISION&
LEADERSHIP
Supervision
Close
General
Leadership
Itisinterperson
alinfluenceexercisedinordertoguidepeople
.
Traits
Selfconfident;wellintegrated,&emotionally
stable
Responsible&c
ompetentinhandlingnewsituation
Identifygoals&
valuesofgrouptheylead
,
,
,
suggestions
Intelligentinrelationtoothergroupmembers.
70
LEADERSH
IP
LeadershipStyles
Autocratic
Particiative
Free-reignleader
Morale
Self-con
fidence
Improving
Morale
Deleatinower
Groupdecision
Jobrotation&relievingmonotony.
71
AUTOCRATICLEADERSHIP
Giveordersfore
verything(onewaycommu
nication)
Nofreedomofw
orkforsubordinates.
Iwbhoyoto..
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AUTOCRATICLEADERSHIP[CONTD.]
Merits
Itpermits
quickdecision-
makina
sonloneerson
Demerits
Ma
yleadtoerrorsand
misunderstandins
decides
Canbeus
edincrises
Developshatredamong
wo
rkers
availableisshortand
peoplearemotivated.
73
PARTICIPATIVEL
EADERSHIP
Thisstyleinvolvestheleaderincludingoneormore
employeesinthe
decisionmakingprocess
Theleadermain
tainsthefinaldecisionmakinauthorit.
Lswktohtosovths..
74
PARTICIPATIVELEADERSHIP[CONTD.]
Merits
Leaderge
tsmorerespect
amonem
loees.
Demerits
Knowledgeableandskillful
em
loeesareneeded
Leaderis
notexpectedto
knoweverything
Itimprove
scoordination
andcanm
akebetter
decisions.
75
FREEREIGNLEA
DERSHIP
Theleaderallow
stheemployeestomaketh
edecisions.
However,thelea
derisstillresponsibleforthedecisionsthat
aremade.
76
YtwtaceothpoemweIg..
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FREEREIG
NLEADERSHIP[CONTD.]
Merits
Veryhigh
motivationand
emloee
involvement.
Demerits
Em
ployeesShouldbeable
toanalzethesituationand
Maximum
freedomto
employee
s.
determinewhatneedstobe
doneandhowtodoit.
em
ployees.
77
78
DECISIONMAKING
Unit2.5
DECISION
MAKING
Definition
ManagerialDecisionMakinginvolvesanentireprocessof
establishingthegoals,designingtask
s,searchingforalternatives
&develo
pingplansinordertofindthe
bestsolutiontothe
decision
problem.
Element
Decision
Maker
Decision
Problem
Objectiv
eofdecisionmaker
Availablealternative
Expectedoutcomefromalternative
Finalselectionofalternative
79
CHARACTERISTIC&NATURE
Characteristics:
Selectsbestpossiblealternative
Rationalroces
sofa
linintellect.
Goaloriented
Relatedtoenvironment
ecsonsenprouc.
Nature
Maintaingroupeffectiveness
Choosesfromb
estalternative
Requiresforeca
sting
Ifnotasexpectedthenthedecisionitselfisw
rong.
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DECISION
MAKINGPROCESS
Definingt
heproblem
Classifyin
gobjectives
Modelbuilding
Evaluatingresults
Takingfin
aldecision
Feedback
/followingupthedecision.
81
TECHNIQUES
ScientificManag
ementTechniques
HumanRelation
Techniques
FinancialTechniques
MathematicalModelTechniqu
DecisionTheory
Technique
DecisionSupportSystemTechnique
82
CLASSIFIC
ATION
Organizational&Persona
Routine&
Strategic
-
Policy&O
perative
Individual&Group
Major&M
inor
Long-term
departmental&Non-econ
omic.
83
SELECTIONOFA
LTERNATIVES
Base
Mangermaysometimesanalyzethepros&co
nsofanalternative
solelybasedon
theirworkexperience.
Decisionmadeonthebasisofexperimentatio
n(reallike
situation)-very
effective.
Researchiswid
elusedformakindecisionmaorcomlex
issues.
EvaluatingCriteria
Flexibilityofpla
ns
Certaintyofgoals&premises
Humanimpact
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85
CONTROLLIN
G
Unit2.6
CONTROLPROC
ESS
Measuringperformanc
Comparingperformancewithstandard,and
ascertainingthe
differenceifan
.
Correctingunfav
orabledeviationbymeans
ofremedial
action.
86
TYPESOFCONTROL
PreliminaryContro
Occursbeforeexecutionofplannedactivities&includes
developmentofpolicies,procedures,rulesthataredesignedto
ensurep
lannedactivitieswillbecarriedoutproperly.
ConcurrentControl
.
directing,monitoring,&finetuning.
Feedback
Control
ccursaerexecuonopanneac
ves.senormaon
aboutpr
eviousresultstocorrectposs
iblefuturedeviationfrom
acceptablestandards.
87
CONTROLATOR
GANIZATIONALLEVEL
TopLevelManag
ement
PreliminaryCon
trol
FeedBackControl
LowLevelManagement
ConcurrentCon
trol
AnticipatoryControl
Quantity
Timeuse
os
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INFORMAT
IONFORPERFORMANCEMEASUREMENT
Informationforperformancemeasuremen
Criticaldecisionmaking
Disadvantage
Doesnotprovideaccuratequantitativevalues,information
.
Itistime
consuming,micromanageme
nt.
Directcontactislimited.
OralRepo
rts
WrittenReports
89
MANAGEMENTA
UDITS
ExternalAuditoutsidetheboundariesoffirm.
Merger/Acquis
itionoffirms
Su
lier
Competitorsindustrialespionage
InternalAuditInsidetheboundariesoffirm.
Improveplannin
gprocess&internalcontrols
ystem.
Reviewspast,present&futureperformance.
MeritsofAudit
Checkonnewp
olicies&practicesforbothsu
itability&
compliances.
.
Ensurebetteruseoforganizationalunits.
90
MANAGEM
ENTAUDITS
Improve
communication.
Measure
effectivenessofmanagerialcontrol.
Determinereliabilitofdatadeveloed.
IdentifyingAuditAreas
Unnecessarywork&duplicationofwork;
oornvenoryconro;
imprope
rnumberofemployees;
unecono
micaluseofequipments&wa
stefuluseofresources;
Costlier
procedures.
91
AREASFOROVE
RALLCONTROLLING
Marketstanding
ofenterprise
Innovation
Profitabilit
Materialsacquisition&use
Employeeperfo
rmance
Productivity
Physicalresources
Publicresponsibilit
Reports
Profit&LossStatement
SpecialReport
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PREVENTIVECONTROL
Principl
Qualifiedmanagersmakeminimumerror.
Manaementconcetrincilestech
niuesareuseful
diagnosticsstandardinmeasuringma
nagerialperformance.
Applicationofmanagementfundamen
talscanbeevaluated.
Greater
accuracy
Accelerateeffectivecorrectiveaction,avoiddirectmanagerial
control.
Improve
thepsychologicalmindsetof
subordinates.
93
94
PRO
DUCTIVITY&OPERATIO
NS
Unit2.7
OPERATIO
NSMANAGEMENT&PRODUCTIVITY
Operation
sManagement:
Improve
productivityimprovesfinancialhealth.
Helmeetcustomerscometitiveriorities.
Productiv
ity:
Measure
ofhowwelltheresourcesareutilizedtogetthe
maxmumoupu.
Optimum
utilizationoffinputresource
ssoastoachievemaximum
satisfactionwithminimumeffort&exp
enditure.
Productio
n&Productivity
Productionvaluetheoutputinterms
ofnumber.
Productivitefficiencofthesstem
usedforroduction.
95
FACTORSAFFEC
TINGPRODUCTIVITY
ExternalFactors
Capitalavailability
Naturalresource
Taxation
Laws&restrictionimposedbyGovernment
ompe
onn
emare
Technical&othertrainingfacilities
Political,social,&economicconditions
Availabilityofw
ater,power,&otherinputs.
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FACTORSAFFECTINGPRODUCTIVITY[CONTD.]
InternalFactors
Product
design
Inutma
terials
Technologicaldevelopment&innovations
Plantlay
out
aera
an
ngecnquesu
ze
Workstu
dy
Methodstudy
Inspection&qualitycontrol
Productionplanning&control
Manaementtechniuesused.
97
PRODUCTIVITYTERMS
ProductivityRatio
98
PRODUCTIVITYMEASUREMENT
Itcanbeimprovedby:
Changesinproductdesign
Propertraining&motivationofworkers
Betterm
aterialplanning&control
Availabilityofalternativelowcostmat
erial.
99
PRODUCTIVITYMEASUREMENT[CONTD.]
Itcanbeimprovedby:
Providingtrainingtoworkerstoutilizebestmethodofproduction.
Selectingsuchproductdesign&processofm
anufacturethat
ensuresmosteconomicuseoflabour.
Constantmotivationofworkersthrouhfinancial&non-financial
incentives.
Byboostingmoraleofemployees.
..
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PRODUCTIVITYMEASUREMENT[CONTD.]
Itcanbeimprovedby:
Makingrationalbuy/makedecisions.
Betterutilizationofcapitalresourceslikeland,building,&
machine
s.
Adotin
modernmanufacturintechniues,likeflexible
manufac
turingsystem,improvedtechniquesofmaintenance&
properp
lantlayoutetc.
101
PRODUCTIVITYMEASUREMENT[CONTD.]
Itcanbeimprovedby:
Preventivemain
tenance.
Utilizationofpropermachineparameterslike
speed,feed,&
dethofcostetc.
Useofrequisite
skilled&properlytrainedlabour.
Methodstudy.
102
PRODUCTIVITYMEASUREMENT[CONTD.]
103
REASONSFORLOWPRODUCTIVITY
DefectsinDesignofProduct:
Baddesignofp
roductpreventsuseofmoste
conomicproduction
technique.
LackofProductstandardizationpreventsutilizationofefficient
productionproc
ess.
Incorrectualit
standardscauseunnecessarwork.
Duetofaultydesignexcessmaterialremovalrequirementis
involved.
Wrongmachine
used.
Processnotoperatedcorrectlyorinbadcondition.
Improper/badlayoutcausingexcessivemovement.
Operatorsbadworkingmethod.
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REASONS
FORLOWPRODUCTIVITY[CONTD.]
MismanagementofTimeonAccount
ofManagement:
Excessiveproductvarietyandlackof
standardizationaddsidle
timedue
toshortruns.
Badplanningofwork&ordersaddsid
letime,labour,&machine.
Lackofrawmaterialduetopoorinven
torycontrolresultsinidle
men&m
achine.
Frequen
tplantbreakdowncauseinter
ruptionsinproduction.
Plantinbadconditionaddstounproductivetimeduetoscrap&
.
Badwor
kingconditioninplantforcela
bourersformorerest.
105
REASONSFORLOWPRODUCTIVITY[CONTD.]
Lackofmotivation&lowmoraleresultsindecreaseof
productivity.
Badplanningin
distributionofcapitalleadstoexpenditureon
dispensablepersonnel&equipment.
MismanagementonAccountofWorkers:
Latecominidleness&deliberateslowworkinaddsto
unproductivetime.
Carelessworkm
anshipcauseslotofscrap,re
work,&poor
.
Accidentdueto
carelessworkers.
106
FACTORSAFFECTINGPRODUCTIVITY
Manpowe
r
Equipmen
t&Machines
Time
FloorArea/Space
Power/Energy
Finance
ovemen
o
en
acnes
107
TECHNIQUESTO
IMPROVEPRODUCTIVITY
Taskbasedtechnique
Productbasedtechnique
Materialbasedtechnique
Employeebased
techniqu
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CONTRIBU
TORSTOPRODUCTIVITYIMPROVEMENT
HumanRelation
Adoption
ofLatestTechnology
CostControl
ProductS
implification&Standardiza
tion
ProperPlanning,Loading,&Scheduling
Supervision
109
OPERATIONSMA
NAGEMENT
StepsinOperationsManagemen
Selecting
Desinin
Operating
Controlling
pang
110
PRODUCTIONPLANNING&CONTR
OL
Phasesin
ProductionPlanning
Routing
Dispatching
Inspection
Expediting/Followup
111
112
INDUSTRIALSAFETY
Unit2.8
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DEFINITION
Whatisin
dustrialsafety?
Measure
sortechniquesimplemented
toreducetheriskofinjury,
lossand
dangertopersons,propertyortheenvironmentinany
facilityo
rplaceinvolvingthemanufacturing,producingand
processingofgoodsormerchandise.
113
HAZARDSINAN
INDUSTRY
Hazardsisasitu
ationthatpossesalevelof
threattolife,
health,property
orenvironment
Possiblehazardsinanindustrialenvironme
ntareasfollows:
ChemicalHazards
ElectricalHazards
ecancaaz
ars
FireHazards
114
CHEMICAL
HAZARDS
Chemicalsarehazardousbecauseoftheirfollowing
attributes
:
Toxic
Corrosiv
e
Irritant
Mutagen
ic
115
EFFECTOFCHEMICALSONEXPOSURE
Industrialworkersmaybeexposedtochem
icalsinliquid,dust
orvapourformthroughdirectcontact,inhalationor
ingestion.
CMC
EC
Chlorates,hypochlorites,
hydrogenperoxide
and
permanganates
Dermatitis.
Phenols,cresols,a
nd
chlorinatedaceticacid
Burnsaswell
assystemicpoisoning.
Benzene
Leukemia
Zincsalts
Skinandeyedamage
Causticsoda
BlindnessandRespiratorydamage
116
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SAFETYMEASURESTOBEADOPTED
Personalprotectivecloth.
Leakproo
fconnections.
.
Flammable&explosivechemicalsproperdistancecriteria
shouldbe
followed.
Pressureregulatorsandreliefvalves
.
Allmaterialsshouldberesistanceto
chemicals.
.
117
SAFETYWARNIN
GSYMBOLSFORFIREH
AZARD
118
ELECTRICALHAZARDS
CeL(nmame
PoeEeoHmB
1 5
Slighttinglingsensation.
Slihtshockfeltnotainfulbut
6-30
disturb
ing.
Painfulshock,muscularcontrolis
lost.
-
1000-4300
xrem
epan,respraoryarres,
severe
muscularcontractionand
deathispossible.
Muscularcontractionandnerve
10,000
damage.Deathismostlikely.
Cardiacarrest,severeburnsand
probab
ledeath
119
CAUSESFORELECTRICALACCIDENTS
Themostfrequentcausesofelectricalinjury/deathare:
Contactwithpo
werlines.
Pathtoroundmissinordiscontinuous.
Equipmentnotusedinmannerprescribed.
Improperuseofextensionandflexiblecords.
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SAFETYMEASURESTOBEADOPTED
Properinsulation.
Appropria
tegrounding.
.
Providing
circuitprotectionservices.
Recheckingthelinesandequipmentseveryday.
Extracareshouldbebestowedonoverheadelectricalwires. 1
21
MECHANICALHAZARDS
Reasons
Insecurelyfixed
machines.
Wornandtorn
arts.
DangerousParts.
Negligence.
mpropermanenanceoequpmen.
122
APPROPRIATESAFETYMEASURES
Allmachinerymustbefencedormec
hanicalinterlocking
shouldbe
provided.
Machineshouldbefittedwithemerencshutdownsstem.
Turnkeysystemforcleaningandfor
repairing.
Controlsystemoverrideshouldbem
onitored.
Operatormusthaveasafedistancefromthemachine.
123
FIREACCIDENTS
Electricalsystem
sthatareoverloaded,resultinginhotwiring
orimproperconnections,orfailedcomponents.
Combustiblesto
raeareaswithinsufficientrotection.
Combustiblesne
arequipmentthatgeneratesheat,flame,or
sparks.
Flammableliquids.
Heatingappliances-furnaces,boilers.
Electricalwiring
inpoorcondition.
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SAFETYMEASURESTOBEADOPTED
Properem
ergencyexits.
Installatio
noffiresensingequipments.
.
Safestorageofcombustiblematerialsagainstheatand
electricity.
Containm
entoffirewithintheheatingequipmentand
providing
necessarytemperaturesensorsandcontrollers.
.
Traininge
mployeesonthesafetymeasuresthatshouldbe
followedduringfirehazards.
125
126
COREFUN
CTIONSOFSAFETYMAN
AGEMENT
DefinetheScopeofWorkWhatisthejob?
AnalyzetheHazardWhatsafetyha
zardsarepresentor
ossible?
DevelopandImplementHazardControlsHowcanthisjob
beperformedsafely?
PerformWorkwithinControlsDonttakechances,cut
cornersorrushtofinishajob.
ProvideforFeedbackandContinuou
sImrovementMakea
noteifthejobcould.
127
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ROLESOF
ASAFETYPERSONNEL
SafetyOfficer
isresponsibleformonitoringandasse
ssinghazardousand
unsafes
ituationsanddevelopingmeasurestoassurepersonnel
safety.
willcorrectunsafeactsorconditionsthroughtheregularlineof
authority.
mayexerciseemergencyauthoritytopreventorstopunsafeacts
whenim
mediateactionisrequired.
maintain
sawarenessofactiveanddeveloinsituations.
ensures
theSiteSafetyandHealthPla
nispreparedand
impleme
nted.
.129
MERITSOFINDU
STRIALSAFETY
Asaferworkplac
eisensured.
Improvedproductivity.
.
Avoidinglawsuits.
Preventingthecostincurredduetopropert
ydamage.
Abetterunderst
andingoftherisksinvolved
inthework
scenario.
130
SAFETYLE
GISLATIONS&AWARDS
Laws:
TheFac
toriesAct,1948
MinesAct1952
DockWo
rkers(Safety,Health&Welfare)Act,1986.
InsecticideAct,1968.
.
SafetyAw
ards:
NationalSafetyAwardsforfactoriesanddocks
NationalSafetyAwardsformines
Vishwak
armaRashtriyaPuraskar
131
CONCLUSION
Toconclude,the
conceptofindustrialsafet
yhascreatedan
awarenessamongtheemployers,regarding
theirrolein
furnishingasecureworkenvironmentforth
eemployeesand
itiswidelyviewe
dasaninvestmentthatwouldpreventthe
companyfrombeingliableforthelossesandsufferingfrom
roertdevastations.
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ENC
ES
dKo
ontzandHeinzWeihrich,Essentialsof
gem
ent,McGrawHillPublishin
gCompany,Singapore
atio
nalEdition,1980.
vind
arajanandS.Natarajan,PrinciplesofManagement,
iceHallofIndiaPvt.Ltd.,NewDelhi,2007.
133
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