You are on page 1of 34

1

OBJECTIVE

Sriraman.A.

MG 9362: Industrial Management Unit 2 Planning g


Nature and Purpose Objectives Strategies Policies and Planning Premises

The students will be able to understand and apply the following concepts:

FUNCTIONS OF MANAGEMENT

Organizing
Nature and Process Premises Departmentalization D Decentralization t li ti Line and staff Organizational culture O Organizational i ti lD Development. l t
2 4

College of Engineering - Guindy Anna University

OBJECTIVE [CONTD.]

Staffing

Productivity & Operations Management Industrial Safety.

MG - 9362: Industrial Management

selection and training Placement Performance appraisal Career Strategy

Leading g

PLANNING

Managing human factor Leadership Communication

Decision Making Controlling

Unit 2.1

Unit - 02 :: Pg.1

Process of P f Controlling C t lli Controlling techniques, Preventive control

PLANNING - DEFINITION

PLANNING PROCESS

Planning is deciding in advance

Sriraman.A.

what to do, how to do, when to do, who is to do.


What kind of organization structure to have Helps to know What kind of people we need & when

Pl Planning i b bridges id the th gap f from where h we are to t where h we want to go.
Plans
Objectives j & how to achieve them effectively to lead people

Affects leadership & Direction H How most t

Ensures nsures success su ess of plans By furnishing standards of control

CHARACTERISTICS OF PLANNING

NATURE & IMPORTANCE OF PLANNING


Nature
Contribution to purpose & objective Primacy of planning Pervasiveness of planning Efficiency of plans

MG - 9362: Industrial Management

I Importance t

Closely associated with the goals of the organization (explicit / implicit). Well defined goals lead to efficient planning. Concerned with forecasting of future situation in which an organization has to function. Accurate forecasting leads to correct future course decisions. Involves selection of best among several alternative for achieving organizational goal. Comprehensive Flexible for future dynamics.

To off-set uncertainty & change To focus attention on objectives To help in coordination To gain economy in operation To help in control To increase organizational effectiveness.

Unit - 02 :: Pg.2

TYPES OF PLANS

STEPS IN PLANNING

Standing Plan Single-Use Plan

Sriraman.A.

Objectives Policies Strategies Procedures Rules Methods Projects Budgets

Perception of opportunities Establishing objectives Establishing planning premises Determining alternative courses of action Evaluating g alternative course of action Selecting the best course of action Formulating supporting derivative plan Quantifying Q tif i plans l b by making ki b budget. d t

10

LIMITATIONS OF PLANNING

PLANNING PREMISES
Importance of Forecasting
Helps effective planning by providing scientific & reliable data & facts. Aims at reducing g uncertainty y factors. Make & review of forecast will lead to better decision making Efficient managerial control.

MG - 9362: Industrial Management

Effective premising

Lack of accurate information Problems of change Failure of people Internal inflexibilities External inflexibilities Rigidity in planning Time & cost factors

Selection of premises which bear material on programs. Development of alternative premises for contingency planning. Verification of consistency of premises. premises Communication of premises.

Forecasting methods

Unit - 02 :: Pg.3

Qualitative techniques Quantitative techniques

11

12

CORPORATE PLANNING CHARACTERISTICS

CORPORATE PLANNING OBJECTIVE


Allocate scarce resource like capital, materials & technological know-how among product/market alternatives. Prepare to adopt to environmental changes as opportunities or threat. Coordinate strategic activity to reflect the internal strength & weakness in order to achieve efficient operation operation. Prepare for adaptation & integration which are complementary to each other. Adaptation focus: where to go Integration focus: how to get there efficiently Learn L from f past t to t make k better b tt decisions d i i in i present t & future. f t Self improvement.

Sriraman.A.

Deals with formulation of objectives, plans, policies & strategies & making decisions on vital matters affecting the g survival of the organization. Deals with future impact of current decisions. Involves systematic identification of opportunities and threats arising out of change in environment & matching them with strengths & weakness of the organization. Provides an integrated framework within which the functional and departmental plans are formulated.

13

14

CORPORATE PLANNING IMPORTANCE

PROCESS OF CORPORATE PLANNING


Scanning the environment Making corporate appraisals Determining mission & objectives Making strategies Developing p g action p plans

MG - 9362: Industrial Management

Encourages the habit of forward thinking on the part of manager Helps attain overall coordination among the various levels of management Creates a greater awareness of business environment & critical review of the business operation operation. Enables the organization to anticipate technological changes & prepare for the same. Lead to improvement in overall performance of the organization.

Identification of jobs to be accomplished Determining the sequence of jobs & activities Drawing a scheduled operation Laying down procedures & method of work

Unit - 02 :: Pg.4

Implementing strategy

15

16

DIFFERENCE: STRATEGIC & OPERATIONAL PLANS

STRATEGIES AT DIFFERENT LEVELS


Corporate strategy:
Strategic decisions relate to organization-wide policies. Major policy p y decisions involve acquisition, q diversification and structural re-designing. SBU Strategic Business Unit helps achieve overall corporate objectives. It serves distinct product /market /customers /geographical area. SBU success depends on effective function of marketing, finance, production, personnel, R & D.

Time horizon:

Sriraman.A.

Strategic plan take several years / decade into consideration. For operational p plans, p a year y is often relevant time p period.

Scope: Business level strategy:

Strategic plans affect a wide range of organizational activities, whereas operational plans have a narrow and more limited scope. The number of relationships involved is the key difference.

Degree of details: Functional Level Strategy:

Strategic St t i goals l are stated t t di in t terms th that tl look k simplistic i li ti & generic. i On the other hand, operational plans, as derivatives of strategic plans are stated in relatively finer details.

17 20

18

STRATEGIC PLANNING - FEATURES

MG - 9362: Industrial Management

ORGANIZING

Emphasizes the basic mission & goal of organization. Determines the basic policy & program of organization. Provides a framework for operational planning on day-to-day day to day decision making. Time frame is larger than other types of planning. Provides d coherent h policy l & decision d on activity overtime. Deals with uncertain environment by forecasting pp & threats. opportunities Comprehensive, unified plan for deployment of scarce resources.

Unit 2.2

Unit - 02 :: Pg.5

19

ORGANIZATION THEORY

ORGANIZATION THEORY [CONTD.]


Common Features

Sriraman.A.

It is the study of structure, functioning and performance of organizations and the behaviour of individual within them. Two approaches
Division of Labors Coordination Accomplishment of goals/objectives Authority/responsibility structure.

First: organization as a dynamic process a managerial activity bringing people together to pursue a common goal - called process of organizing . Second: organization as a structure of relationships among positions attain a common goal.

P Process of f Organization O i ti
Determination of objectives Enumeration of activities Classification of activities Fitting individuals to function Assignment of authority for action action.

21

22

ORGANIZATION THEORY [CONTD.]

HIERARCHY OF OBJECTIVES FOR ORGANIZATIONAL LEVELS

MG - 9362: Industrial Management

Activity Analysis Decision Analysis Formal Organization Informal Organization Importance p of Organization g

Unit - 02 :: Pg.6

Relationship of Objectives & Organizational Levels


23 24

PRINCIPLES OF ORGANIZING

TYPES OF ORGANIZATION
Military / Line system Functional system Line & Staff system Matrix system Hybrid y design g system y

Sriraman.A.

Unity of objective Efficiency Span of management Division of work Functional definition Scalar principle (Chain of Command) Exception principle Unity of command Unity y of direction Responsibility

Authority & responsibility Balance Flexibility Continuity Facilitation of Leadership p

25

26

MILITARY / LINE SYSTEM

MILITARY / LINE SYSTEM [CONTD.]


Merits

Demerits

MG - 9362: Industrial Management

General G l Manager

Manager Zone 1

Manager Zone 2

Simplicity Unified control Strong discipline Fixed responsibility P Prompt td decision i i Flexibility

Overloading Lack of specialization Inadequacy of communication Scope for favoritism Suitability

Unit - 02 :: Pg.7

Manager District 1

Manager District 2

Manager District 1

Manager District 2

27

28

FUNCTIONAL SYSTEM

FUNCTIONAL SYSTEM [CONTD.]


Merits
Ensures greater division of labor specialization of functions. High degree of efficiency perform limited operation. Separates - mental & manual functions. Facilitates mass production standardization & specialization.

Sriraman.A.

General Manager

Manager 3

D Demerits it

Manager 1

Manager 2

Unstable weak disciplinary control. Complicated function into many sub-function. Hard to fix responsibility for unsatisfactory results. Conflict among foreman of equal ranks.

Clerk 1

Clerk 2 Clerk 6 Clerk 7 Clerk 8

Clerk 3

Clerk 4

Clerk 5

29

30

LINE & STAFF SYSTEM

LINE & STAFF SYSTEM [CONTD.]


Merits
Planned specialization Quality decisions Prospect for personnel growth Training ground for personnel

MG - 9362: Industrial Management

D Demerits it

Lack of well defined authority Line & staff conflicts Suitability

Unit - 02 :: Pg.8

31

32

MATRIX SYSTEM

MATRIX SYSTEM [CONTD.]


Merits
Involves & challenges matrix team members. Provides enlarge tasks for people. Develops employee skills. Encourages people to identify with end products. F t Fosters fl flexibility ibilit th throughout h t th the organization. i ti Motivates interdisciplinary cooperation. Provides for integration of organizational information. Fosters the development of managerial skills. Frees top management for effective planning.

Sriraman.A.

33

34

MATRIX SYSTEM [CONTD.]

HYBRID SYSTEM

Demerits
BANK PRESIDENT FUNCTIONAL DEPARTMENTATION Exec VP Bank Operation PRODUCT DEPARTMENTATION Exec VP Loans & Investment

MG - 9362: Industrial Management

Demands high level of interpersonal skills. Leaves negative impact on morale when personnel are reshuffled. Fosters confusion & frustration from its multiple command structure. Leads to power struggles between functional & project managers. Causes to lose sight of broader organizational goals. C Causes d duplication li ti of f efforts ff t b by project j t groups. Costly to implement & maintain.

VP Accounts

VP Personnel

VP Personal Loans

VP Commercial Loans

GEOGRAPHIC DEPARTMENTATION

Exec VP Branch Operation

Unit - 02 :: Pg.9

Branch Manager 1

Branch Manager 2

Branch Manager 3

35

36

HYBRID SYSTEM [CONTD.]

DEPARTMENTATION

Merits
Departmentation

Sriraman.A.

Organization enjoys the unique benefits of both functional & divisional Departmentation p structures. Helps proper alignment of corporate & divisional goals. Fosters flexibility within divisions. Fosters efficiency within functional departments departments. Functional Departmentation p Divisional Departmentation p

Demerits

Excessive duplication of activities between function & divisions. Create conflict between headquarter & divisional function.

Product Departmentation

Customer Departmentation

Geographical g p Location Departmentation

37

38

FUNCTIONAL DEPARTMENTATION

FUNCTIONAL DEPARTMENTALIZATION [CONTD.]


Advantages

President Personnel Finance


MG - 9362: Industrial Management

Asst. . President

Marketing __Financial Planning __Budgets __General General Accounting __Cost Accounting __Statistics & Data Processing

Engineering

Production

__Marketing Research __Marketing Planning __Advertising & Promotion __Sales Administration __Sales

__Engineering Administration __Preliminary Design __Electrical Engineering __Mechanical Engineering __Hydraulic Engineering __Packaging Packaging __Quality Control
39

__Production Planning __Industrial Engineering __Production Engineering __Purchasing __Tooling __General Planning

It is a logical reflection of functions Maintains power & prestige of major functions. Follows principles of occupational specialization Simplifies training F Furnishes i h means of f ti tight ht control t l at t top. t Provides specialization Allows task assignment consistent with technical training Allows economies of scale Allows excellent coordination within functions Suited to a suitable environment Facilitates top management in direction & control

40

Unit - 02 :: Pg.10

FUNCTIONAL DEPARTMENTALIZATION [CONTD.]

PRODUCT TYPE - DIVISIONAL DEPARTMENTATION

Disadvantages
President

Sriraman.A.

Marketing

Personnel

Finance

Recording g Instrument Division __Engineering __Production __Accounting __Sales Sales __Engineering E i i __Production __Accounting __Sales Sales

Indicator Light Division

Industrial Tools Division __Engineering __Production __Accounting __Sales Sales

Electronic Meter Division __Engineering E i i __Production __Accounting __Sales Sales

De-emphasis of overall company objectives Overspecializes & narrow viewpoints of key personnel Reduces coordination between functions Slow adaptation to changes in environment Li it development Limits d l t of f general l managers Poor communication across functional departments Slow response times to external changes Concentration of decisions at top causing delay Difficulty in pinpointing responsibility Narrow perspective within function Fails to encourage creativity.

41

42

PRODUCT TYPE - DIVISIONAL DEPARTMENTATION [CONTD.]

PRODUCT TYPE - DIVISIONAL DEPARTMENTATION [CONTD.]


Disadvantages

Advantages

MG - 9362: Industrial Management

Requires more persons with general manager abilities Tends to make maintenance of central service difficult Presents increased problem of top management control Promotes neglect of long term priorities C Causes conflict fli t between b t divisional di i i lt tasks k & corporate t priorities i iti Fails to encourage coordination of activities Allows in-depth competencies to decline.

Unit - 02 :: Pg.11

Places attention & effort on product line Facilitates use of special capital, skills, facility. Permits growth & diversity of product services Improves coordination of functional activity Pl Places responsibility ibilit for f profit fit at t divisional di i i ll level l Furnish measurable training ground for managers. Provides high product visibility Suited for rapid change Allows parallel processing of multiple tasks Clearly defines responsibility Permits full time concentration on tasks Foster training of general manager.

43

44

CUSTOMER TYPE - DIVISIONAL DEPARTMENTATION

CUSTOMER TYPE - DIVISIONAL DEPARTMENTATION [CONTD.]


Advantages

Sriraman.A.

President

Community g Banking

Corporate g Banking

Agricultural g Banking

Housing g Banking

Encourages concentration on customer needs Gives customers the feeling that they are understanding their suppliers (bank) Develops expertness in customer area Promotes strong public image Adaptive to environmental changes Facilitates parallel processing of multiple task Facilitates a strong marketing philosophy Provides a clear placement of responsibilities.

45

46

CUSTOMER TYPE - DIVISIONAL DEPARTMENTATION [CONTD.]

GEOGRAPHICAL TYPE - DIVISIONAL DEPARTMENTATION

Disadvantages
President

MG - 9362: Industrial Management

Marketing

Personnel

Purchasing

Finance

Maybe difficult to coordinate operations between compelling customer demands Require managers & staff expert in customer problem Customer group may not always be clearly defined Does not promote coordination Wastes resources through duplication of effort Tends to lessen top management control.

Western Region __Personnel Personnel __Engineering __Production __Accounting __Sales


47

Southern Region __Personnel Personnel __Engineering __Production __Accounting __Sales

Northern Region __Personnel Personnel __Engineering __Production __Accounting __Sales

Eastern Region __Personnel Personnel __Engineering __Production __Accounting __Sales

48

Unit - 02 :: Pg.12

GEOGRAPHICAL TYPE - DIVISIONAL DEPARTMENTATION [CONTD.]

GEOGRAPHICAL TYPE - DIVISIONAL DEPARTMENTATION [CONTD.]


Disadvantage

Advantages

Sriraman.A.

Requires more persons with general manager abilities Tends to make maintenance of central service difficult and may require services such as personnel / purchasing at local level Increased problem of top management control Fails to produce specialization Encourages competition for resources Tends to lessen top management control

Places responsibility at a lower level Emphasis on local market & problems Improves coordination in a region Takes advantages of economies of local operations B tt f Better face-to-face t f communication i ti with ith l local l customers t Fast response to the local environment Promotes flexibility, focus on regional goals Foster coordination across functional departments Aids in the development of general management.

49

50

CENTRALIZATION

DECENTRALIZATION
It is a condition wherein much of the decision making authority is pushed downward to the lower management level. Advantages

MG - 9362: Industrial Management

It is a condition wherein much of the decision making authority is retained at the top of the managerial hierarchy. Advantages

Unit - 02 :: Pg.13

Broad overview of business is easier to achieve Strategic direction setting is easier Gi Gives absolute b l t & clear l control t l Makes administration easier Common standards can be fixed Provides certain expert functions cost effectively Conflicting decisions are easier to avoid Economies of scale can be achieved achieved.

Local management can react to changing local conditions so that business can act quickly Decision making is quicker, quicker clearer & based on more precise understanding of local conditions Greater likelihood of innovation & creativity makes healthier business Local responsibility & authority effective managerial skill

51

52

DECENTRALIZATION [CONTD.]

AUTHORITY, RESPONSIBILITY & DELEGATION

Sriraman.A.

Higher involvement & motivation greater productivity & profit. Reduced burden of administrative paper work Leaner & easier functional department p control.

Authority is legal, or rightful power that gives a right to command or to act. Sources of authority:
Formal authority theory Acceptance theory

Responsibility R ibilit is i an obligation bli ti t to b be performed f db by subordinate b di t of the said duties set by the authoritative superior. Responsibility p y CAN NOT be delegated. g Principle of delegation

Functional definition; Scalar; Authority-level; Unity of command; Parity. Parity

53

54

MISTAKES IN ORGANIZATION

ORGANISATIONAL CULTURE
The accepted way of thinking, feeling, and acting in an organization Shared Shared beliefs about what is important and how things are done An interdependent set of values and ways of behaving that are common in an organization Social forces through which people learn norms and values. They are rewarded when they accept them and ostracized when they do not. What goes on around here

MG - 9362: Industrial Management

Failure to plan properly Failure to clarify relationships Failure to delegate authority Failure to balance delegation Confusion of lines of authority y / information Authority without responsibility Responsibility without authority Careless C l application li ti of f staff t ff device d i Misuse of functional authority Multiple subordination Misuse of service department Over-organizing

Unit - 02 :: Pg.14

55

56

58

ORGANIZATIONAL DEVELOPMENT

Sriraman.A.

It includes research to ascertain the psychological health of the organization. Accomplished using periodic employee survey. It tackles the organization for:

STAFFING

Absenteeism Low production Interpersonal conflict Resistance change. g


Development Of Change Strategies

Unit 2.3

Problem Recognition Interventions Measurement & Evaluation


57

Organizational Diagnosis

Feedback

PERSONNEL MANAGEMENT

SYSTEMS APPROACH TO STAFFING


Enterprise plans are the basis of staffing Organization plans provide a key to staffing needs Requirement of managers are determined determined. Management inventory is developed. Recruitment, selection, p placement & production p is ensured. Managers are appraised. Provision of training & development is ensured. Leading L di & controlling t lli f functions ti are carried i d out. t

MG - 9362: Industrial Management

Human Resource Management (HRM) Integral Distinctive part of management concerned with people at work relationship with in the organization. Success, growth and dynamics of an organization depends on development of HR. HR H unlimited l d potential l growth h & performance. f Development of HR depends on providing, sustaining and y of the following: g continuous analysis

Unit - 02 :: Pg.15

Safe & comfortable work condition. Decent & competitive wages & incentives Respect & dignity of labour Training & development.

59

60

SYSTEMS APPROACH TO STAFFING


Leading & Controlling

ESTABLISHING ORGANIZATION STRUCTURE


Development of structural guidelines.
Structure appropriate compatible external environment. Structure consistent supportive goal Structure accommodate diversity

Sriraman.A.

EXTERNAL ENVIRONMENT

Enterprise Plans

Appraisal Career Strategy Training & Development

Organization Plans

Job designing determine individual work responsibility. Group jobs logical arrangement

Number N b & Kinds of Managers Required Requirement Selection Placement Promotion Separation

INTERNAL ENVIRONMENT

Job content (intrinsic) Motivational factor. Job context ( (extrinsic) ) exogenous. g

Analysis of P Present t& Future Needs for Managers

External Source

Manager: y Inventory

Internal Source

61

62

RECRUITMENT & SELECTION

INDUSTRIAL LAW
The Employment Exchanges Act, 1959. The Contract Labour Act, 1970. The Apprentices Act Act, 1961 1961. The Payment of Wages Act, 1936. The Minimum Wages g Act, 1948. The Payment of Gratuity Act, 1972. The Employees Provident Funds & Miscellaneous Provisions Act 1952 Act, 1952. The Employees. State Insurance Act, 1948. The Maternity y Benefit Act, , 1961.

MG - 9362: Industrial Management

Job Description Application forms Employment tests Interviewing Physical y examination Induction / orientation

Unit - 02 :: Pg.16

63

64

CONCEPT OF HRD

CONCEPTS OF HRD [CONTD.]

HRD is a process by which employees of an organization are helped in a continuous & planned way to:

Sriraman.A.

Need for HRD. Goals of HRD. Underlying beliefs for HRD. HRD HRD subsystems

Acquire q / sharpen p capabilities p required q to perform p various functions associated with their present / future role. Develop their general capabilities as individuals & discover / exploit p their inner potential p for their own / organizational g development purposes. Develop an organizational culture in which supervisorsubordinate relationships, p , team work, , & collaboration among g subunits are strong & contribute to professional well being, motivation, & pride of employees. Performance appraisal Potential appraisal & development Feedback & performance coaching Career planning Training Organizational development (OD) E l Employee welfare lf HR information Quality of work life

65

66

DESIGNING AN INTEGRATED HRD SYSTEM

DESIGNING AN INTEGRATED HRD SYSTEM [CONTD.]


Functioning of HRD System

Focus

MG - 9362: Industrial Management

Adaptation & change in organization culture Contextual factors Building linkages with other functions Specialization & diffusion of functions.

Building feedback & reinforcement mechanisms Balancing quantitative & qualitative decisions Balancing internal & external expertise Planning for evolution of HRD

St Structure t of f HRD System S t

Geographical phasing Vertical phasing Functional phasing S hi ti ti phasing Sophistication h i

Unit - 02 :: Pg.17

Establishing the identity of HRD Ensuring respectability for function Balancing differentiation & integration Establishing linkage mechanisms Developing monitoring mechanism

67

68

69

SUPERVISION & LEADERSHIP

Supervision
Close General It is interpersonal influence exercised in order to guide people toward goal achievement achievement.

Sriraman.A.

Leadership

LEADING

Traits
Self confident; well integrated, & emotionally stable Responsible & competent in handling new situation Identify goals & values of group they lead Warm sensitive Warm, sensitive, & sympathetic toward people people, & give practical suggestions Intelligent in relation to other group members.

Unit 2.4

70

LEADERSHIP

AUTOCRATIC LEADERSHIP

Leadership Styles

Give orders for everything (one way communication) No freedom of work for subordinates.

MG - 9362: Industrial Management

Autocratic Participative Free-reign leader

Morale

Self-confidence

Improving Morale

Delegating g gp power Group decision Job rotation & relieving monotony. I want both of you to. . .

Unit - 02 :: Pg.18

71

72

AUTOCRATIC LEADERSHIP [CONTD.]

PARTICIPATIVE LEADERSHIP
This style involves the leader including one or more employees in the decision making process The leader maintains the final decision making authority.

Sriraman.A.

Merits It permits quick decisionmaking, as only one person decides Can be used in crises situation when time available is short and people are motivated.

Demerits May lead to errors and misunderstandings Develops hatred among workers

Let's work together to solve this. . .

73

74

PARTICIPATIVE LEADERSHIP [CONTD.]

FREE REIGN LEADERSHIP


The leader allows the employees to make the decisions. However, the leader is still responsible for the decisions that are made.

MG - 9362: Industrial Management

Merits Leader gets more respect among employees. Leader is not expected to know everything It I improves coordination d and can make better decisions.

Demerits Knowledgeable and skillful employees are needed

Unit - 02 :: Pg.19

You two take care of the problem while I go. . .


75

76

78

FREE REIGN LEADERSHIP [CONTD.]

Sriraman.A.

Merits Very high motivation and employee involvement. Maximum freedom to employees.

Demerits Employees Should be able to analyze the situation and determine what needs to be done and how to do it. Ego problems among employees.

DECISION MAKING

Unit 2.5

77

DECISION MAKING

CHARACTERISTIC & NATURE


Characteristics:

Definition

MG - 9362: Industrial Management

Managerial Decision Making involves an entire process of establishing g the goals, g designing g g tasks, searching g for alternatives & developing plans in order to find the best solution to the decision problem.

Elements

Selects best possible alternative Rational process of applying intellect. Goal oriented Related to environment D i i i Decision is end d product. d t

Nature

Unit - 02 :: Pg.20

Decision Maker Decision Problem Environment Objective of decision maker Available alternative Expected outcome from alternative Final selection of alternative

Maintain group effectiveness Chooses from best alternative Requires forecasting Effect must be felt in future If not as expected then the decision itself is wrong.

79

80

DECISION MAKING PROCESS

TECHNIQUES
Scientific Management Techniques Human Relation Techniques Empirical Techniques Financial Techniques Mathematical Model Technique q Decision Theory Technique Decision Support System Technique

Sriraman.A.

Defining the problem Classifying objectives Identifying evaluation criteria Model building Evaluating g results Taking final decision Feedback / following up the decision.

81

82

CLASSIFICATION

SELECTION OF ALTERNATIVES
Bases
Manger may sometimes analyze the pros & cons of an alternative solely y based on their work experience. p Decision made on the basis of experimentation (real like situation) - very effective. Research is widely used for making decision major, complex issues.

MG - 9362: Industrial Management

Organizational & Personal Routine & Strategic Programmed & Non Non-Programmed Programmed Policy & Operative Individual & Group p Major & Minor Long-term departmental & Non-economic.

Evaluating Criteria
Size & length of commitment Flexibility of plans Certainty of goals & premises Human impact

Unit - 02 :: Pg.21

83

84

85

CONTROL PROCESS

Sriraman.A.

CONTROLLING

Measuring performance Comparing performance with standard, and ascertaining the difference, if any. Correcting unfavorable deviation by means of remedial action.

Unit 2.6

86

TYPES OF CONTROL

CONTROL AT ORGANIZATIONAL LEVEL


Top Level Management
Preliminary Control Feed Back Control

Preliminary Control

MG - 9362: Industrial Management

Occurs before execution of planned activities & includes development p of policies, p procedures, p rules that are designed g to ensure planned activities will be carried out properly.

Middle Level Management Low Level Management

Concurrent Control

Occurs during execution of planned activities. activities The action action are directing, monitoring, & fine tuning.

Concurrent Control

Feedback Control

Anticipatory Control

Occurs after O ft execution ti of f planned l d activities. ti iti Use U information i f ti about previous results to correct possible future deviation from acceptable standards.

Quality Quantity Time use C t Cost

Unit - 02 :: Pg.22

87

88

INFORMATION FOR PERFORMANCE MEASUREMENT

MANAGEMENT AUDITS
External Audit outside the boundaries of firm.
Merger / Acquisition of firms Supplier Competitors industrial espionage

Information for performance measurement

Critical decision making

Sriraman.A.

Personal Observation Internal Audit Inside the boundaries of firm.


Improve planning process & internal control system. Reviews past, present & future performance.

Disadvantage Does not provide accurate quantitative values, information acquired is in broad & general terms terms. It is time consuming, micro management. Direct contact is limited.

Merits of Audit
Check on new policies & practices for both suitability & compliances. Identify areas that needs shoring up up. Ensure better use of organizational units.

Oral Reports Written Reports

89

90

MANAGEMENT AUDITS

AREAS FOR OVERALL CONTROLLING

MG - 9362: Industrial Management

Improve communication. Measure effectiveness of managerial control. Determine reliability y of data developed. p

Identifying Audit Areas

Unnecessary work & duplication of work; P Poor inventory i t control; t l improper number of employees; uneconomical use of equipments &wasteful use of resources; Costlier procedures.

Market standing of enterprise Innovation Profitability y Materials acquisition & use Employee performance Capital / financial resources Productivity Physical resources Public responsibility

Reports

Unit - 02 :: Pg.23

Comparative Balance Sheet Profit & Loss Statement Special Report

91

92

94

PREVENTIVE CONTROL

Principle

Sriraman.A.

Qualified managers make minimum error. Management concept, principles, techniques are useful diagnostics standard in measuring managerial performance. Application of management fundamentals can be evaluated.

Advantage

PRODUCTIVITY & OPERATIONS MANAGEMENT


Unit 2.7

Greater accuracy Accelerate effective corrective action , avoid direct managerial control. Improve the psychological mind set of subordinates.

93

OPERATIONS MANAGEMENT & PRODUCTIVITY

FACTORS AFFECTING PRODUCTIVITY


External Factors

Operations Management:

MG - 9362: Industrial Management

Improve productivity improves financial health. Help meet customer customers s competitive priorities.

Productivity:

Measure of how well the resources are utilized to get the maximum output output. Optimum utilization off input resources so as to achieve maximum satisfaction with minimum effort & expenditure.

Production & Productivity:

Capital availability Natural resources Taxation Laws & restriction imposed by Government C Competition titi i in th the market k t Technical & other training facilities Political, social, & economic conditions Availability of water, power, & other inputs.

Unit - 02 :: Pg.24

Production value the output in terms of number. Productivity y efficiency y of the system y used for production. p

95

96

FACTORS AFFECTING PRODUCTIVITY [CONTD.]

PRODUCTIVITY TERMS
Productivity Ratio:

Internal Factors

Sriraman.A.

Product design Input materials Technological development & innovations Plant layout M t i lh Material handling dli t techniques h i utilized tili d Work study Method study Inspection & quality control Production planning & control Management techniques used.

97

98

MG - 9362: Industrial Management

PRODUCTIVITY MEASUREMENT

PRODUCTIVITY MEASUREMENT [CONTD.]

It can be improved by:

It can be improved by:


Unit - 02 :: Pg.25

Changes in product design Proper training & motivation of workers Better material planning & control Waste reduction & scrap control Availability of alternative low cost material.

Providing training to workers to utilize best method of production. Selecting such product design & process of manufacture that ensures most economic use of labour. Constant motivation of workers through g financial & non-financial incentives. By boosting morale of employees. Improving working condition of plant..

99

100

PRODUCTIVITY MEASUREMENT [CONTD.]

PRODUCTIVITY MEASUREMENT [CONTD.]

Sriraman.A.

It can be improved by: It can be improved p by: y

Making rational buy/make decisions. Better utilization of capital resources like land, building, & machines. Adopting p g modern manufacturing g techniques, q , like flexible manufacturing system, improved techniques of maintenance & proper plant layout etc.

Preventive maintenance. Utilization of proper machine parameters like speed, feed, & depth of cost etc. Use of requisite skilled & properly trained labour. Method study.

101

102

PRODUCTIVITY MEASUREMENT [CONTD.]

REASONS FOR LOW PRODUCTIVITY


Defects in Design of Product:
Bad design of product prevents use of most economic production technique. q Lack of Product standardization prevents utilization of efficient production process. Incorrect quality standards cause unnecessary work. Due to faulty design excess material removal requirement is involved.

MG - 9362: Industrial Management

Inefficient method of manufacture:


Unit - 02 :: Pg.26

Wrong machine used. Process not operated correctly or in bad condition. Improper / bad layout causing excessive movement. Operators bad working method.

103

104

REASONS FOR LOW PRODUCTIVITY [CONTD.]


REASONS FOR LOW PRODUCTIVITY [CONTD.]

Mismanagement of Time on Account of Management:

Sriraman.A.

Lack of motivation & low morale results in decrease of productivity. Bad planning in distribution of capital leads to expenditure on dispensable personnel & equipment.

Mismanagement on Account of Workers:

Excessive product variety and lack of standardization adds idle time due to short runs. Bad planning of work & orders adds idle time, labour, & machine. Lack of raw material due to poor inventory control results in idle men & machine. Frequent plant breakdown cause interruptions in production. Plant in bad condition adds to unproductive time due to scrap & rework. rework Bad working condition in plant force labourers for more rest. Late coming, idleness & deliberate slow working adds to unproductive time. Careless workmanship causes lot of scrap, rework, & poor product quality. Accident due to careless workers.

105

106

FACTORS AFFECTING PRODUCTIVITY

TECHNIQUES TO IMPROVE PRODUCTIVITY


Task based technique Product based technique Technology based technique Material based technique Employee p y based technique q

MG - 9362: Industrial Management

Manpower Equipment & Machines Input Materials Time Floor Area / Space p Power / Energy Finance Movement M t of fM Men / Machines M hi

Unit - 02 :: Pg.27

107

108

CONTRIBUTORS TO PRODUCTIVITY IMPROVEMENT

OPERATIONS MANAGEMENT
Steps in Operations Management
Selecting Designing Operating Controlling U d ti Updating

Sriraman.A.

Human Relations Adoption of Latest Technology Proper Design of Product Cost Control Product Simplification p & Standardization Proper Planning, Loading, & Scheduling Supervision

109 112

110

PRODUCTION PLANNING & CONTROL

MG - 9362: Industrial Management

Phases in Production Planning: Routing Scheduling Dispatching Inspection p Expediting / Follow up

INDUSTRIAL SAFETY

Unit 2.8

Unit - 02 :: Pg.28

111

DEFINITION

HAZARDS IN AN INDUSTRY

What is industrial safety?

Sriraman.A.

Hazards is a situation that posses a level of threat to life, health, property or environment Possible hazards in an industrial environment are as follows:

Measures or techniques implemented to reduce the risk of injury, loss and danger g to persons, p p property p y or the environment in any y facility or place involving the manufacturing, producing and processing of goods or merchandise. Chemical Hazards Electrical Hazards M h i lH Mechanical Hazards d Fire Hazards

113

114

CHEMICAL HAZARDS

EFFECT OF CHEMICALS ON EXPOSURE


Industrial workers may be exposed to chemicals in liquid, dust or vapour form through direct contact, inhalation or g ingestion.
CHEMICALS Chlorates, hypo chlorites, hydrogen peroxide and permanganates Phenols, cresols, and chlorinated acetic acid Benzene Zinc salts Caustic soda Lead EFFECTS Dermatitis .

Chemicals are hazardous because of their following attributes:

MG - 9362: Industrial Management

Toxic Corrosive Irritant Carcinogenic Mutagenic

Burns as well as systemic poisoning. Leukemia Skin and eye damage Blindness and Respiratory damage Lead poisoning

Unit - 02 :: Pg.29

115

116

SAFETY MEASURES TO BE ADOPTED

SAFETY WARNING SYMBOLS FOR FIRE HAZARD

Sriraman.A.

Personal protective cloth. Leak proof connections. Piping and storage tank should be colour code. code Flammable & explosive chemicals proper distance criteria should be followed. Pressure regulators and relief valves. All materials should be resistance to chemicals. Warning and Symbols .

117

118

ELECTRICAL HAZARDS

CAUSES FOR ELECTRICAL ACCIDENTS


The most frequent causes of electrical injury/death are:
Contact with power lines. Path to ground missing or discontinuous. Equipment not used in manner prescribed. Improper use of extension and flexible cords.

MG - 9362: Industrial Management

Current Level (In milliamperes)

Probable Effect on Human Body

1 5

6-30

50 150 50-150

1000-4300

Unit - 02 :: Pg.30

10,000

Slight tingling sensation. Slight shock felt; not painful but disturbing. Painful shock, muscular control is lost. E t Extreme pain, i respiratory i t arrest, t severe muscular contraction and death is possible . Muscular contraction and nerve damage .Death is most likely. Cardiac arrest, severe burns and probable death

119

120

SAFETY MEASURES TO BE ADOPTED

MECHANICAL HAZARDS
Reasons
Insecurely fixed machines. Worn and torn parts. Dangerous Parts. Negligence. I Improper maintenance i t of f equipment. i t

Sriraman.A.

Proper insulation. Appropriate grounding. Guarding. Guarding Providing circuit protection services. Rechecking g the lines and equipments q p everyday. y y Extra care should be bestowed on overhead electrical wires.

121

122

APPROPRIATE SAFETY MEASURES

FIRE ACCIDENTS
Electrical systems that are overloaded, resulting in hot wiring or improper connections, or failed components. Combustible storage areas with insufficient protection. Combustibles near equipment that generates heat, flame, or sparks. Flammable l bl liquids. l d Heating appliances - furnaces, boilers. Spark from metal to metal contact Electrical wiring in poor condition.

MG - 9362: Industrial Management

All machinery must be fenced or mechanical interlocking should be provided. Machine should be fitted with emergency shut down system. Turn key system for cleaning and for repairing. Control system override should be monitored. Operator must have a safe distance from the machine.

Unit - 02 :: Pg.31

123

124

SAFETY MEASURES TO BE ADOPTED

Sriraman.A.

Proper emergency exits. Installation of fire sensing equipments. Providing fire extinguishers at required places places. Safe storage of combustible materials against heat and electricity. Containment of fire within the heating equipment and providing necessary temperature sensors and controllers. Surface temperature limits for protection against burns burns. Training employees on the safety measures that should be followed during fire hazards.

125

126

CORE FUNCTIONS OF SAFETY MANAGEMENT

MG - 9362: Industrial Management

Define the Scope of Work What is the job? Analyze the Hazard What safety hazards are present or possible? Develop and Implement Hazard Controls How can this job be performed safely? Perform f Work W k within h C Controls l Dont take k chances, h cut corners or rush to finish a job. Provide for Feedback and Continuous Improvement p Make a note if the job could.

Unit - 02 :: Pg.32

127

128

ROLES OF A SAFETY PERSONNEL

MERITS OF INDUSTRIAL SAFETY

Safety Officer

Sriraman.A.

A safer workplace is ensured. Improved productivity. Reduction in disability pay pay. Avoiding lawsuits. Preventing g the cost incurred due to property p p y damage. g A better understanding of the risks involved in the work scenario.

is responsible for monitoring and assessing hazardous and unsafe situations and developing p g measures to assure p personnel safety. will correct unsafe acts or conditions through the regular line of authority. y may exercise emergency authority to prevent or stop unsafe acts when immediate action is required. maintains awareness of active and developing situations. ensures the Site Safety and Health Plan is prepared and implemented. ensures there are safety messages in each Incident Action Plan Plan.

129

130

SAFETY LEGISLATIONS & AWARDS

CONCLUSION

Laws:

MG - 9362: Industrial Management

The Factories Act, 1948 Mines Act, 1952 Dock Workers (Safety, Health & Welfare) Act, 1986. Insecticide Act, 1968. OSHA OSHA.

To conclude, the concept of industrial safety has created an awareness among the employers, regarding their role in furnishing g a secure work environment for the employees p y and it is widely viewed as an investment that would prevent the company from being liable for the losses and suffering from property p p y devastations.

Safety Awards:

Unit - 02 :: Pg.33

National Safety Awards for factories and docks National Safety Awards for mines Vishwakarma Rashtriya Puraskar

131

132

REFERENCES

Sriraman.A.

Herald Koontz and Heinz Weihrich, Essentials of Management, McGraw Hill Publishing Company, Singapore International Edition, 1980. M. Govindarajan and S. Natarajan, Principles of Management, Prentice Hall of India Pvt. Ltd., New Delhi, 2007.

MG - 9362: Industrial Management

133

Unit - 02 :: Pg.34