Industrial management

Q No.-1 Division of work or labor is the specialization of cooperative labour in specific, circumscribed tasks and like roles. Historically an increasingly complex division of labor is closely associated with the growth of total output and trade, the rise of capitalism, and of the complexity of industrialization processes. Division of labour was also a method used by the Sumerians to categorise different jobs, and divide them to skilled members of a society. By division of labor or work we mean an arrangement where by people perform different functions at the same time. Though the term, 'Division of labor' is applied in the field of economics, yet infact division of labor in modern society is not limited simply to labor but applies to all the factors of production and exists beyond the purely economic field. There may be three forms of division of labor.

(i) Social division of labor This means division into occupation. Thus, there are farmers, weavers, teachers, priests, laborers etc. (ii) Technical division of labor This means the division of labor within a particular enterprise. Thus within a factory there are weavers, spinners, designers, accountants, managers and engineers. (iii) Territorial division of labor This is also known as localization of industries. Certain places or regions come to specialize in the making of certain articles; Hosiery at Ludhiana, Cotton textiles at Ahmadabad and Bombay, Jute industry at Calcutta, Leather industry at Agra and Kanpur etc.

Advantages of Division of Labor

(i) The right man in the right place Under division of labor, the chance is that each man will get the job for which he is best fitted. There will be no round pegs in square holes. The work will be better done. (ii) The worker becomes an expert Practice makes a man perfect; under division of labor, the worker repeats his task. By constant repetition, he is bound to become expert in his task. He will be able to turn our better goods. There is an increase in the skill and craftsmanship. (iii) Heavy work taken over by machinery Division of labor makes it possible for heavy work to be passed on to machinery. Only light work is done by workers so that there is less strain on them. (iv) Less training required As the worker has to do only a part of the job, he needs to learn only that much. Long and costly training is rendered unnecessary. (v) Invention When a man is doing the same work over and over again some new ideas are bound to occur. This leads to many inventions. These inventions make for economic progress. (vi) Cheaper things. On account of mass production make possible by division and the use of machinery, cheaper things are turned out. Even poor persons can buy them. Standard of living improves. (vii) Economic in the use of tools. It is not necessary to provide each worker with a complete set of tools. He needs only a few tools for the job he has to do. These tools are kept continuously employed. This is very economical. (viii) Saving in time The worker has no longer to move from one process to another. He is employed on the same process. He therefore goes on working without loss of time.

Disadvantages of Division of Labor

The demerits of division of labors are the following: (i) Monotony Doing the same work over and again without any change produced mental fatigue. Work becomes joyless and monotonous. There is no pleasure in the job. (ii) Kills the creative instinct Since many men contribute to the making of an article, none can say that he has made it. His creative instinct is not satisfied. The work gives him no pride and no pleasure, since no worker can claim the product as his own creation.

(iii) Loss of skill The worker deteriorates in the technical skill. Instead the making of whole article, he is required just .to repeat a few simple movements. The skill gradually dies out. (iv) Check mobility The worker is doing only a part of the job. He knows only that much and no more. It may not be easy for him to find exactly the job elsewhere, if he desires a change. (In this way, the workers losses his mobility) (v) Risk of unemployment If the worker is dismissed from one factory, he may have to search far and wide before he secures a job in which he has specialized. He may be making only the legs of a chair. It is doubtful if he can get the complete chair. His chance of getting a job elsewhere would be brighter. (vi) Check development of personality If a man has been making an eighteenth part of a pin, he becomes an eighteenth part of a man. A narrow sphere of work checks proper physical and mental development of the worker, (vii) Loss of sense or responsibility None can be held responsible for bad production because none makes the complete article. When the thing is bad, everybody tries to shift the responsibility to somebody else. (viii) Evils of factory system Division of labor gives rise to factory system, which is full of evils. It spoils the beauty of the place all round, leads to exploitation of women and children and removes the personal factor in the production and management. (ix) Problem of distribution Under division of labor, many persons contribute to the production of an article. They must receive a due share of the product and it is not easy to determine this share. Thus, the problem of distribution is made difficult. (x) Dependence The dependence of one country upon another which is necessary consequence of division of labor, proves dangerous in times of war.
Q No.-2 A) Dummy Activity:- Fictitious activity with zero activity time used to represent precedence or used whenever two or

more activities have the same starting and ending nodes is known as dummy activity. A dummy activity is used in AOA (Activity on Arrow) diagrams to represent dependencies not otherwise possible to show. They are zero time activities added just to connect dependent tasks. Computer programs use AOA since it is easier to represent and manage. In general, the AON is now the predominant method. A dummy activity is a simulated activity of sorts, one that is of a zero duration and is created for the sole purpose of demonstrating a specific relationship and path of action on the arrow diagramming method. Dummy activities are a useful tool to implement when the specific logical relationship between two particular activities on the arrow diagramming method cannot specifically be linked or conceptualized through simple use of arrows going from one activity to another. In this case, the creation of a dummy activity, which serves essentially as a form of a placeholder, can provide exceedingly valuable. Dummy activities should in no cases be allocated any duration of time in the planning and/or scheduling or project activities and components. When they are illustrated in a graphical format, dummy activities should be represented by the user of a dashed line with an arrow head on one end, and may in some cases be represented by a unique color.
B). Critical path :-

Activity A B C D E F G

The critical path is the path that takes the longest path to complete the project. For example:Description Required Predecessor Duration Product design (None) 5 months Market research (None) 1 Production analysis A 2 Product model A 3 Sales brochure A 2 Cost analysis C 3 Product testing D 4

H I J Now we can draw the

Sales training Pricing Project report net work diagram

B, E H F, G, I

2 1 1

The critical path is the path that takes the longest. In this example, the critical path is the one in row 10, which takes 13 months. The project will therefore take 13 months, if everything is done on schedule with no delays. The time a project takes is equal to the time of its critical path. The 1's in row 10 tell us that the critical path is 1 -A-> 2 -D-> 4 -G-> 7 -J-> 8. As managers, we must be sure that activities A, D, G, and J are done on time. If any of those activities is late, the project will be late. Other paths are not critical because they can waste some time without slowing the project. For example, activity C, in row 9's path, can take up to two extra months and not hold up the project.

Q No. 5

In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the motivator-hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of Satisfaction is No satisfaction and the opposite of Dissatisfaction is No Dissatisfaction.

FIGURE: Herzbergs view of satisfaction and dissatisfaction

Herzberg classified these job factors into two categoriesa. Hygiene factors- Hygiene factors are those job factors which are essential for existence of motivation at workplace. These do not lead to positive satisfaction for long-term. But if these factors are absent / if these factors are non-existant at workplace, then they lead to dissatisfaction. In other words,

hygiene factors are those factors which when adequate / reasonable in a job, pacify the employees and do not make them dissatisfied. These factors are extrinsic to work. Hygiene factors are also called as dissatisfiers or maintenance factors as they are required to avoid dissatisfaction. These factors describe the job environment / scenario. The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors include: Pay- The pay or salary structure should be appropriate and reasonable. It must be equal and competitive to those in the same industry in the same domain. Company Policies and administrative policies- The company policies should not be too rigid. They should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc. Fringe benefits- The employees should be offered health care plans (mediclaim), benefits for the family members, employee help programmes, etc. Physical Working conditions- The working conditions should be safe, clean and hygienic. The work equipments should be updated and well-maintained. Status- The employees status within the organization should be familiar and retained. Interpersonal relations-The relationship of the employees with his peers, superiors and subordinates should be appropriate and acceptable. There should be no conflict or humiliation element present. Job Security- The organization must provide job security to the employees. b. Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors yield positive satisfaction. These factors are inherent to work. These factors motivate the employees for a superior performance. These factors are called satisfiers. These are factors involved in performing the job. Employees find these factors intrinsically rewarding. The motivators symbolized the psychological needs that were perceived as an additional benefit. Motivational factors include: Recognition- The employees should be praised and recognized for their accomplishments by the managers. Sense of achievement- The employees must have a sense of achievement. This depends on the job. There must be a fruit of some sort in the job. Growth and promotional opportunities- There must be growth and advancement opportunities in an organization to motivate the employees to perform well. Responsibility- The employees must hold themselves responsible for the work. The managers should give them ownership of the work. They should minimize control but retain accountability.

Meaningfulness of the work- The work itself should be meaningful, interesting and challenging for the employee to perform and to get motivated.

Limitations of Two-Factor Theory The two factor theory is not free from limitations: 1. The two-factor theory overlooks situational variables. 2. Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity. 3. The theorys reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the findings by analyzing same response in different manner. 4. No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job. 5. The two factor theory is not free from bias as it is based on the natural reaction of employees when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame dissatisfaction on the external factors such as salary structure, company policies and peer relationship. Also, the employees will give credit to themselves for the satisfaction factor at work. 6. The theory ignores blue-collar workers. Despite these limitations, Herzbergs Two-Factor theory is acceptable broadly. Implications of Two-Factor Theory The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better. This theory emphasize upon job-enrichment so as to motivate the employees. The job must utilize the

employees skills and competencies to the maximum. Focusing on the motivational factors can improve work-quality.

Q No.-7
TRAINING METHODS :All training methods can be grouped into two categories :a] Training methods for operatives and b] Training methods for managers a] Training Methods for Operatives :Under these methods the new employee is assigned to a specific job at a machine or workshop or laboratory. He is instructed by an experienced employee or by a special supervisor who explains to him the method of handling tools, operating the machines etc. Vestibule Training :- This method involves the creation of a separate training centre within the plant itself for the purpose of providing training to the new employees. An experienced instructor is put in-charge of this training. Machines and tools are also managed in the training centre, so as to create working conditions similar to those in the workshop. Apprenticeship Training :-This method of training is meant to give the trainee sufficient knowledge and skill in those trades and crafts in which a long period of training is required for gaining complete proficiency. Internship Training :- This method of training is generally provided to the skilled and technical personnel. The object of this type of training is to bring about a balance between theoretical and practical knowledge, under this method, students from a technical institution possessing only theoretical knowledge are sent to some business enterprise to gain practical work experience. b] Training Methods for Managers :Executive talent is the most important asset which a company can posses. Although, it does not appear on the company's balance sheet, but it produces more important effects on the company's progress, its profit and the price of its stock than any other asset in its possession. The following are the various training methods for managers. 1] Observation Assignment :Under this method, the newly recruited executive called "understudy" is made an assistant to the current job holder. He learns by experience, observation and imitation. If decisions are discussed with him, he is informed on the policies and theories involved. 2] Position Rotation :Under this method, the trainee executive is rotated among different managerial jobs. This not only broaden and enriches his experience as a manager but also enables him to understand inter departmental relations and the need for co-ordination and co-operation among various departments. 3] Serving on Committees :Another important method of training on an executive is to make him serve on a committee. While serving on a committee, the executive comes to learn not only the various organizational problems, views of senior and experienced members, but also learns how a manger should adjust himself to the overall needs of the enterprise. 4] Assignment of special Projects :Sometimes, as a method of training some special project is assigned to a trainee executive. for example, he may be ask to develop a system of cost allocation in the production of certain goods for which an order has been received by the company. 5] Conference and Seminars :Often an executive is deputed to attend a conference, seminar or workshop to receive a quick orientation in various areas of Management with which he might be unfamiliar. 6] Case Study :A case is a written account seeking to describe an actual situation. A good case is the vehicle by which a chunk of realty is brought into the class room to be discussed over by the class and the instructor. Discussion on a case requires a capable instructor, who can evoke and guide intelligent discussion analysis, so that meaningful learning experiences occur.

7] Incident Method :This method was developed at M.I.T. by Paul and Pigors, as an outgrowth of dissatisfaction felt with the case method. In the usual case method the entire problem is presented to the students, whereas in the incident method only a brief incident is presented to provoke discussion in the class. The group then puts questions to the instructor to draw out of him the salient facts and additional information, needed to arrive at a reasonable solution or resolution of the case. 8] Role Playing :In this method, the instructor assigns parts taken from case materials to group members. The situation is usually one involving conflict between people. The role players attempt to act the parts as they would behave in a real life situation, working without a script or memorized lines and improvising as they play the parts. The development of empathy and sensitivity is one of the primary objectives of role playing. 9] Laboratory Training (or Sensitivity Training) (T group Training): This type of training is designed to increase the managers understanding of himself and of his own impact on others. The training takes the form of a group discussion, and through a leader trained in the technique is present, the group may decide on the subject of discussion or suggest changes in procedure

Q No. 9 Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. In other words, TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations. Considering the practices of TQM as discussed in six empirical studies, Cua, McKone, and Schroeder (2001) identified the nine common TQM practices as cross-functional product design, process management, supplier quality management, customer involvement, information and feedback, committed leadership, strategic planning, cross-functional training, and employee involvement.

TQM and Six Sigma

The TQM concept was developed by a number of American management consultants, including W. Edwards Deming, Joeseph Juran, and A.V. Feigenbaum. Originally, these consultants won few converts in the United States. However, managers in Japan embraced their ideas enthusiastically and even named their premier annual prize for manufacturing excellence after Deming. The Six Sigma management strategy originated in 1986 from Motorolas drive towards reducing defects by minimizing variation in processes. The main difference between TQM and Six Sigma (a newer concept) is the approach. At its core, Total Quality Management (TQM) is a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work. The methods for implementing this approach come from people such as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran. Benefits of TQM For Management -Provides an invaluable problem-solving tool for managers and supervisors to use - Dispels negative attitudes - Management becomes more aware of problems that affect the individuals work environment - Employees gain a sense of participation - Increases efficiency and productivity - Reduces turnover rate, tardiness, costs, errors,and scrap & rework - Improves communications within and among all departments - Develops management skills that were never taught, or are long forgotten due to lack of application - Develops overall company awareness and company unity - Rearranges priorities which once seemed locked in place

- Builds loyalty to the company - Reveals training requirements in all departments - Lessens the number of defects received from suppliers when they are encouraged to train in quality management For Employee -Provides opportunity for personal growth and development (as a result of team training activities) and the opportunity to develop and present recommendations - Increases innovation (through a greater variety of approaches and perspectives) for solving problems, removing fear of failure - Employees use their knowledge and skills to generate data-driven recommendations that will lead to well-informed decisionmaking - Encourages decision-making at the most appropriate level - Increases motivation and acceptance of new ideas - Increases job satisfaction (as a result of the opportunity to participate in and have influence over work) - Recognizes employees for their knowledge, skills, and contribution toward improvement - Develops mutual respect among employees, management and customers - Promotes teamwork