GE3792-INDUSTRIAL MANAGEMENT ALL UNITS LECTURE NOTES

In this pdf contains unitwise lecture notes for Industrial Management Subject for Final year mechanical engineering students of Regulation 2021 Anna University.

1. 4} VELAMMAL ¢

3%” INSTITUTE OF TECHNOLOGY

DEPARTMENT OF MECHANICAL
ENGINEERING
FINAL YEAR VII SEMESTER
GE3792
INDUSTRIAL

UNIT WISE
LECTURE
NOTES

Prepared by
Mr.K.BALAMANIKANDASUTHAN
Assistant Professor

Mechanical Engineerin;
Departme

5. sFigurahead
INTERPERSONAL EE

INFORMATIONAL,

DECISIONAL

6. Taylor Scientific Management
Frederick Winslow Taylor wellknown as the founder of sienlfke management was the fist o
recognize and emphasis the need for adopting a setntfic approach to the task of managing an
ontorpise. He tad to the causes of low offconcy in industry and came to the
conclusion that much of waste and imetficoncy is due lo the lack of order and system in the
methods of management Ho found thal the management was usualy ignorant ofthe amount of

hat could be done by a worker in a day as als the best method of doing the job. As a

à. A remained largely al the mercy of the workers who dolberatoy shiked work| He

thecefore, suggested that those responsibie for management should adopt a scientific approach
in thoi work, and make uso of "scent method” or achioving higher effcioncy. The scene
method consists essentaly

(a) Observation

(0) Measurement

(e) Espermentaton and

Ho advocated a thorough planning of ho job bythe management and emphasized the

of perfect understanding and co operation between the management and the workers both for

the enlargement of profts and the use of scientific investigation and knowledge in industrial

work, He summed up his approach in these words

Science, not ul of thumb
Harmony, not discord

Co-operation, not individualism

Maximum oul, in place of restricted output

‘The development of each man to his greatest efficiency and prosperty

7. Elements of Scientific Management: The tecinques which Tayor regarded as is essential
Joments or features may be asia as under
1. Scion Task and Rato setting, work improvement, oe
2 Panning the Task

Vocal Selection and Training

Stancarczation (ol working concn, mater equ

Spociaizaton
1. Scientific Task and Rate-Setting (work study): Work study may bo dofined as the
systematic, object and crtcal examination of al the factors goveming the operational
liowney of any space any n order lo elec mprosemont
(a) Methods Study: The management should ty to onsur thatthe plants ai out nthe bost
manner and is equipped withthe best tools and machinery. The possibles of eliminating or
combing certan operatons may bo stud.
(0) Motion Study: 1 sty of the movement, of an operator (or even oa

machine) n porfomeng an operation wi ha purpose of elminalng useless motor:
(6) Time Study (work measurement): The basic purpose of ine study is to determine the

propor timo for performing the operation. Such study may be conducted aftr the mation study
Both tine study end mation study hep in delemining the best mated of doing a jb and th
standard ime alowed fort

(6) Fatigue Study: It, Slandad task is set without providing for measures 10 eiminale fatigue,

necessary, therfore, to regulate tho working hours and provide forrest pauses al scientiicaly
detormmod mens

(e) Rate-seting: Taylor recommended the diferent piece wage system, under which workers
performing the standard task within prescribed time are pak a much higher ato por uni than

Ineeient workers who are not abi o come up 1 the stand

8. 2. Planning the Task: Having sat the task which an average worker must si lo perform lo

3. Selection and Training: Scontiie Management requires a radical chango in no mothods
Proper attention has also to be devoted tothe training ofthe workers i Ihe correct methods of
Tools and equipment: By standarcizaton is meant tha process of bringing about domi
he management must solec and store standard 1005 and implements which wil be nearly the
(2) Speed: There is usual an optimum speed for every machine. I is exceeded, tis key to
ut in damage to machinery.
conditions of venta, heating, cooling, hum, floor space, safety ete is very essential
(a) Materials: Tho officoncy of a worker depends on tho qualty of matonals and the method of
nanding motors,

5. Specialization: Scenic management wil not be complete without the introduction of
specialization. Under this plan, the two functions of planning‘ and ‘doing’ aro soparatod in the

organization of the plant The “functional foramen’ are specialists who join their heads to give

(5) The Instruction Card Clerk: To prepare doled instructions regarding diront aspects of
work

(©) The Time and Cost Clerk: To send al information relating to thelr pay tothe workers and to
(9) The Shop Disciplinarlan: To deal wi coses of treach of disciine and absent

(0) The Gang Boss: To oscomblo and st up to's and machines and o teach the workers lo
(0 The Speed Boss: To ensure that machines are run at her best speeds and proper tools aro
(9) The Repair Boss: To ensure that each worker keeps his machine in good order and

9. Mental Revolution: At present, indu ups = management an

labour The major pro

lem between division of surplus. The
management wants the maximum possible share of the surplus as prof; the workers want, as

productivity Such gain

ayor has in mind the enormous gain that arises from higher
an 1° management and workers in the form

16. Trade union

A trae union is an organisation made up of members (a membership-based organisation) adits
membership must be made up mainly of workers. One ofa trade union's main aims st protect and
‘advance the interests of its members inthe workplace,

Most trade unions are independent of any employer. However trae unions try to develop close working
relationships with employers. This can sometimes tke the form of a partnership agreement between the
employer and the trade union which identities their common interests and objectives

Definition OF Trade U

Trade unions are collective bodies that represent workers in negotiations with employers, Their

main purpose is to safeguard the rights of employees and improve their working conditions. By

providing a unified voice, trade unions empower workers to negotiate fair wages and benefits.
They act as intermediaries between employees and employers, advocating forthe interests of the
workforce as a whol

17. o discuss major changes 10 the workplac

o discuss members concern

o provide members wit

Trade unions

Advantages

Counter-balanee monopsony - Unions can
Darga for higher wages = overcoming unfair

Productivity deals ~ A trade union can help a
firm to bring in new working practicos which
increase labour producti

Co-operation = Unions in theory, an help bring
‘workers closer to management and represent

Efciency wage theory - This

Disadvantages

Unemployment - In competitive labour market,
unions pushing wages above equlbrium cause
unemployment

Cost push Inflation - Powerful unions can push up
wages causing nation (eg 19709)

‘Time lotto strike - Unions
roduc by strikes.

Confrontation - Unions can also create a
confrontational tudo leading to disputes and
poor morale

Less relevant In ig economy, es harder for
ions ca Orpi and have pac.

27. Division of
Coordina

Well-dfined authority and responsibilty
Organization is structure or relations

Divides work tobe done into spoci obs and department

Assigns tasks and responsibilities associted with individual obs

Clusters jobs ito units
Establishes relationships among individu, groups and department
Establishes forma lines of author

Allocats and deploys organizaional resource

28. unity of objective
als must and should aim at achieving

Principle of
vidal

ound and effective
itis known

2. Principle of specialization:
ales special type of kno

mploye Hedge and kill in any ae
tasks, each employee is required to perform a tsk rep

3. Principle of coordination: On
ith clearly defined rl

thority and responsibility:
dience . Respons

4. Principle of parity of

‘orders, make decision
de fulfilled

29. 3, Principe of de

ation: Pro thor
sccomplish a certain task i call
but not responsibil sibility à
He would be answerable 10 his

tion as well

6. Scalar Principle: Under thi

ith one another from top to bottom in a
Departmental Manager

inciple of unity of cor Subordinate
I subon

8. Principle of span of contro: 5;

Tike the

9. Principle of flexibility: Organizational struc

capability to pe
10, Principle of simplicity: This pinip

sibility
by hi
disobeyed in

The

30. [scat Compara [Forma gation
[roman |
[Purpose [Nes goats |
5 © © |
CT | [sos |
EE ET
pS [erez]
[Group noms

power: The ah of imdividsisor latina i rs
Authority: The ight ap discretion a making decis

Line Authority: Te relationship in which su iss diet super

subordinate

Scala Principe: The clar the ln of authority, the caer wil be the responsiblity fr
Stal Relationship: Te stur o sa relationship i advisor

The function of peopl ina pue staf capaity i to investigate, esearch and give advice 1 line
Functional Authority

Policies or her matter ring to activi undertaken by persons in ober departments,

+ Lie organiza race based on ce ar ci proc
. defined manager and tht is ler definition of the route o ator

The middle-level management Memes the ob and assigns the responsi o diferen
people accio Le uncon and ab

36. Matrix Organisation Structure

38. Authority Flows from Top to Bottom

Managing Director
y

Marketing Manager

47. eng oran temas punctual schevement
‘vented and dependable

Being outgoing tala socableandenjoing

The as nee decade of re AU century wanes continued exploration GEST between as
nd both cer emergence and Inder effectiveness Locke fom the Univers of Manara and à
number a research assocates. in he recent review of heat esearch, observe hat success leeds

sess a et of core charac that are diferent from tose of other people” though these core tats
Go not solely etermine wheter a person wl be ales der—or a succssulleader—they are sen 35
precandiion that erdow people wh leadership potential. Among he cre as ented are

Dre glee leo, cin a tong desire for achievement as wel a high ees of amb,
ere and native

Leadership mthoton—an Intense desc teas others.

Hovey nd integra commitment the rt (nodece) where word and deed correspond
Sofcanfence—an assurance in anes ell ome' eas and one abiy

Connie abity—<onceptal sil, capote af esersirg good ment, havieg song anal
les, possessing the capacity to ink sategkaly and mutidmensinaly

Knowledge ote buses high degre of understanding oe company. Indust, and technical

ter ats-chakuma.<resttylorg lt and el adapten

49. Leadership Styles.

al

el E

ES

The Managerial Grid

A well-known approach to defining leadership e grid, devel:
‘oped decades ago by Robert Blake and Jane Mouton. Building on previous research
that showed the importance of a manager's having concern both for production and
for people, Blake and Mouton developed a clever device to dramatize this concern.
This grid, shown in Figure 15.2, has been used throughout the world as a means
of training managers and of identifying various combinations of leadership styles

50. The Managerial Grid.
‘apted from WR. Bate and. 5. Noten, The Moral Grid
(houston Tas: Gal ubihing Company, 1964) p10

sony and wt Intreopondone |

through balance of

once fer people

tm magwat The grid dimensions The grid has two dimensions: concer for people and
“suite no concer for production, As Blake and Mouton emphasize, their use of the phrase
nera ee concern fr is meant to convey how managers are concerned about production or

sete they ate concerned about geting out of à group.

Concern for production Includes the atitude of a supervisor toward a wide va

tity ol things, such as the quality of policy decisions, procedures and processes,

ereativeness of research, quality of service, work efficiency, and volume of output.
xn for wise Imerpeted in a broad way. I includes such lo

2 the degree of personal commitment toward goal achievement, maintenant

the seltesteem of workers, placement of responsibilty on the basis of trust rather

than obedience, provision of good working conditions, and maintenance of satisfying
interpersonal lations

‘how they are concerned about people and not such things as how much production

51. The four extreme styles Blake and Mouton recognize four extremes of style
Under the 1. style (referred to as impoverished management), managers concern
themselves very litle with either people or production and have minimum Involve
ment In their Jobs; to all intents and purposes, they have abandoned their jobs and
‘only mark time or act as messengers communicating information from superiors to
subordinates. At the other extreme are the 9.9 managers, who display in their ac

$ the highest possible dedication both to people and to production. They are the
real “team managers” who are able to mesh the production needs ofthe enterprise
with the needs of individual

Another st nt (called country club management by some)
in which managers have little or no concern for production but are concerned only
for people. They promote an environment in which everyone is relaxed, friendly, and
happy and no one is concerned about putting forth coordinated effort to accomplish
enterprise goals. At another extreme are the 9.1 managers (sometimes referred to
as autocratic task managers), who are concerned only with developing an efficient
operation, who have litle or no concern for people, and who are quite autocratic
In thelr style of leadership

By using these four extremes as points of reference, every managerial technique
approach, or style can be placed somewhere on the grid. Clearly, the 5.5 managers
have medium concern for production and for people. They obtain adequate, but not
outstanding, morale and production. They do not set goals too high and are likely
to have a rather benevolently autocratic attitude toward people.

The managerial grid ls à useful device for identifying and classifying managerial
styles, but it does not tell us why a manager falls into one part or another of the
Aid. To determine the reason, one has to look at underlying causes, such as the
personality characteristics of the leader or the followers, the ability and training of
managers, the enterprise environment, and other situational factors that influer
how leaders and followers act.

56. CONTROL PROCE:

a) Tho Establishment of Standare

the fest step inthe

57. FEED FORWARD CONCURRENT FEEDBACK
CONTROL CONTROL CONTROL

67. ntinuous evaluation of processe
Sf fraud and

‘Advantages of extemal audit
Impartial analysis of financial statements
Unbiased picture of the company’s finan
Quicker identification of problem areas
Validation or invalidation of internal audit

‘Advantages of external audit over internal audit

Extemal audit impartial,
They have no ot
They provide quicker identification of p
lidate or invalid
External audito
risk and control en

the organization's

68. ORGANIZATIONAL CONFLICT

Sources of Conflict

74. Job dis

76. THE EXPECTANCY THEORY OF MOTIVATION

77. SS

7

Therefore an employee is
Motivation = Valence x Expectancy
The theory focuses on thre things
Efforts and performance relationship
+ Performance and reward relationship

+ Rewards and personal goal relationship

The Vroom Theory and Practice
of ndridus needs and motratiors. hs void some ofthe splat fatres of
‘of harmony of objectives: indwviduas have personal goals that ace diferent from
Complete consent with the system of managing by becs.

84. Managing Conflict

85. COMPROMISING

El

JLéccommovanne}

‘COOPERATIVENESS

88. Quantity of Goods and Services Produced
~~ Ammount of Resource Used

Productivity =

Mathematically

89. Output

SE Tabor + Eier

90. Net Output
an pit

Fig. 23. Total Factor Productivity Measurement

91. Net Output
‘abor-+ Capita) Tapa

TF

98. Benchmarking

Internal External
Benchmarking Benchmarking

107. ‘Summary Total Productive Maintenance Pillars

120. tion

131. Peer Year 1969) Present Time
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