Unit 4 Industrial Engineering & Management Notes in English

 These are short notes for revision purpose. please refer you Reference book & College study materials for complete study.

For Further Notes Join 📍

• WhatsApp Group - https://chat.whatsapp.com/DWpN7vYqSutBNXY9R5Q2Te
• Telegram Channel - https://t.me/BTER_Mechanical_Branch

4. Principles of Management

Management is the process of planning, organizing, leading, and controlling an organization’s resources to achieve specific goals. It involves a variety of functions, responsibilities, and approaches aimed at ensuring effective operations and the success of the organization.

---

4.1 Definition of Management

Management can be defined as the process of planning, organizing, directing, and controlling an organization’s resources, including human resources, financial resources, and physical assets, to achieve organizational goals effectively and efficiently.

• Planning: Setting objectives and deciding on the actions needed to achieve them.
• Organizing: Allocating resources and assigning tasks to ensure smooth operations.
• Directing: Leading and motivating employees to perform their tasks effectively.
• Controlling: Monitoring performance and making adjustments to stay on track toward goals.

---

4.2 Administration; Organization

• Administration: Refers to the overall direction and control of an organization. It involves making key decisions related to policies and strategies. It is more focused on planning and setting objectives at the highest level of management.

• Organization: Refers to the structure and processes through which work is divided and coordinated. An organization ensures that tasks are divided and resources are allocated efficiently to achieve organizational goals.

---

4.3 F.W. Taylor’s and Henry Fayol’s Principles of Management

• F.W. Taylor (Scientific Management): Taylor introduced scientific management, focusing on efficiency and productivity. His principles include:

  1. Scientific selection and training of workers to improve productivity.
  2. Division of labor: Breaking down tasks into simpler, specialized operations.
  3. Standardization of tools and procedures to ensure consistency and efficiency.
  4. Incentive-based pay: Motivating employees by rewarding high performance.

• Henry Fayol (Administrative Management): Fayol developed 14 principles of management that focus on improving overall management efficiency:

  1. Division of work: Specialization increases efficiency.
  2. Authority and responsibility: Managers must have the authority to give orders and the responsibility to ensure they are carried out.
  3. Discipline: Employees must follow rules and respect agreements.
  4. Unity of command: Employees should receive orders from one superior only.
  5. Unity of direction: Activities with the same objective should be grouped together under one manager.
  6. Subordination of individual interest: The interests of the organization should take precedence over individual interests.
  7. Remuneration: Employees should be fairly compensated for their work.
  8. Centralization: The extent to which decision-making is concentrated at the top.
  9. Scalar chain: A clear chain of command from top to bottom of the organization.
  10. Order: Proper arrangement of resources and people in an organization.
  11. Equity: Treating employees with fairness and justice.
  12. Stability of tenure: Job security to allow employees to work with confidence.
  13. Initiative: Encouraging employees to take initiative in their roles.
  14. Esprit de corps: Promoting team spirit and harmony among workers.

---

4.4 Functions of Manager

Managers perform various functions that help in achieving organizational goals. These include:

1. Planning: Setting goals, defining strategies, and outlining steps to achieve the objectives.
2. Organizing: Structuring the organization by defining roles, allocating resources, and assigning tasks.
3. Leading: Motivating, directing, and influencing employees to work towards organizational goals.
4. Controlling: Monitoring progress and taking corrective actions to ensure goals are met.

---

4.5 Types of Organization

• 4.5.1 Line Organization:

  • In this type of structure, authority flows vertically from the top down. It is simple and has a clear chain of command, where each employee reports to only one superior.
  • Advantages: Clear authority, simplicity.
  • Disadvantages: Lack of specialization, rigidity.

• 4.5.2 Staff Organization:

  • This organization includes experts or specialists who support and advise line managers but do not have direct authority over the employees.
  • Advantages: Expertise-based advice, flexibility.
  • Disadvantages: Conflict between line and staff, complexity.

• 4.5.3 Taylor’s Pure Functional Types:

  • In this type, each worker is assigned to a single specialized task, and the department’s head is the only authority responsible for the entire task.
  • Advantages: High specialization, efficiency.
  • Disadvantages: Lack of flexibility, over-dependence on one function.

• 4.5.4 Line and Staff and Committee Type:

  • This is a hybrid structure that combines the direct authority of a line organization with advisory and support roles from the staff. Committees may be created for decision-making.
  • Advantages: Combines the strengths of both types.
  • Disadvantages: Complexity, potential conflicts between line and staff.

---

4.6 Directing

Directing refers to guiding, motivating, and leading employees to achieve organizational goals. It involves communication, motivation, leadership, and supervision. Effective directing helps align individual goals with organizational goals.

---

4.7 Leadership

Leadership is the ability to influence others to achieve common objectives. A leader inspires, motivates, and guides their team toward achieving goals while fostering an environment of trust and respect.

---

4.8 Styles of Leadership

There are several leadership styles, including:

1. Autocratic Leadership: The leader makes decisions without consulting others, which can lead to quick decisions but also employee dissatisfaction.
2. Democratic Leadership: The leader involves team members in decision-making, promoting collaboration and morale.
3. Laissez-Faire Leadership: The leader provides minimal guidance, allowing team members to make decisions. It works well when employees are highly skilled and motivated.
4. Transformational Leadership: The leader focuses on inspiring and motivating employees by creating a vision for the future and fostering a positive change.
5. Transactional Leadership: Focuses on structured tasks and rewards for meeting specific objectives.

---

4.9 Qualities of a Good Leader

A good leader should possess the following qualities:

1. Visionary: Has a clear idea of the direction and goals.
2. Integrity: Honest and ethical in all actions.
3. Decisiveness: Can make clear decisions promptly.
4. Empathy: Understands the needs and concerns of others.
5. Communication Skills: Clearly conveys ideas and listens to feedback.
6. Confidence: Demonstrates assurance in actions and decisions.
7. Adaptability: Open to change and new ideas.
8. Motivational: Inspires and encourages others to perform their best.

---

4.10 Motivation; Positive and Negative Motivation

• Positive Motivation: Encouraging employees by providing rewards, praise, or recognition for their performance, which leads to increased engagement and satisfaction.

• Negative Motivation: Involves using fear, threats, or penalties to compel employees to perform tasks. It may result in short-term results but can lead to dissatisfaction and low morale in the long run.

---

4.11 Management Information Systems (MIS)

Management Information Systems (MIS) are tools used to collect, process, and analyze data to support decision-making in an organization. MIS ensures that managers have accurate and timely information to make informed decisions.

---

4.13 Personnel Management

Personnel management is the process of managing people within an organization. It involves recruitment, training, performance evaluation, compensation, and employee relations.

4.13.1 Responsibility of Human Resource Management

HRM is responsible for managing the organization’s workforce by recruiting, training, compensating, and ensuring employee satisfaction and development.

4.13.2 Selection Procedure

The selection procedure involves steps like:

1. Job Analysis: Understanding job requirements.
2. Recruitment: Sourcing candidates.
3. Screening: Shortlisting candidates based on their qualifications.
4. Interviews and Testing: Evaluating candidates.
5. Final Selection: Offering the job to the best candidate.

4.13.3 Training of Workers

Training is aimed at improving employee skills and knowledge to enhance job performance.

• Apprentice Training: A form of on-the-job training where workers are taught specific skills over a set period.
• On-the-Job Training: Employees learn by doing the work under the supervision of an experienced worker.
• Vestibule School Training: A type of off-the-job training that takes place in a simulated environment.

4.13.4 Job Evaluation

Job evaluation is the process of determining the relative worth of jobs within an organization. It helps in establishing fair compensation systems by assessing job complexity, responsibility, and skills required.