Some parts of these presentation are taken from Chapter-1

1
Ir. Haery Sihombing/IPPensyarah Pelawat Fakulti
Kejuruteraan PembuatanUniversiti Teknologi
Malaysia Melaka
INDUSTRIAL MANAGEMENT COST

• Some parts of these presentation are taken from
  Chapter-1

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MANAGEMENT

• Technique, practice or science of managing or
  controlling the skillful use of resources and
  time the specific treatment of a disease or
  disorder.
• Function that organizes the execution of todays
  business.
• The process of getting activities completed
  efficiently and effectively with and through
  other people.

Traditionally, the term "management" refers to
the set of activities, and often the group of
people, involved in four general functions,
including planning, organizing, leading and
coordinating activities. (Note that the four
functions recur throughout the organization and
are highly integrated.)
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MANAGEMENT

• Some writers, teachers and practitioners
  assert that the previous view is rather outmoded
  and that management needs to focus more on
  leadership skills, e.g., establishing vision and
  goals, communicating the vision and goals, and
  guiding others to accomplish them. They also
  assert that leadership must be more facilitative,
  participative and empowering in how visions and
  goals are established and carried out. Some
  people assert that this really isn't a change in
  the management functions, rather it's
  re-emphasizing certain aspects of management.

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Definition of Management

• The attainment of organizational goals in an
  effective and efficient manner through
• Four functions
• planning,
• organizing,
• leading, and
• controlling organizational resources.
• Managers use a multitude of skills to perform
  functions

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MANAGEMENT

• Management functions
• Planning
• Organizing
• Staffing
• Directing
• Coordinating
• Reporting
• Budgeting

The people who administer a company, create
policies, and provide the support necessary to
implement the owners' business objectives.
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MANAGEMENT

• Management roles
• Interpersonal roles Figurehead, Leader, Liaison
• Informational roles Monitor, Disseminator,
  Spokesperson
• Decisional roles Entrepreneur, Disturbance
  handler, Resource allocator, Negotiator

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What Is Management?

• Management
• the process of coordinating work activities so
  that they are completed efficiently and
  effectively with and through other people
• elements of definition
• Process - represents ongoing functions or primary
  activities engaged in by managers
• Coordinating - distinguishes a managerial
  position from a non-managerial one

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What is Management? (cont.)

• Management (cont.)
• Efficiency - getting the most output from the
  least amount of inputs
• doing things right
• concerned with means
• Effectiveness - completing activities so that
  organizational goals are attained
• doing the right things
• concerned with ends

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Efficiency and Effectiveness in Management
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UNIVERSAL NEED FOR MANAGEMENT
1-10
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INDUSTRIAL REVOLUTION

• The major inventions of the Industrial
  Revolution
• American - British and European
• the Industrial Revolution defined was the
  widespread replacement of manual labor by new
  inventions or machinery.

Industrial Revolution, widespread replacement of
manual labor by machines that began in Britain in
the 18th century and is still continuing in some
parts of the world. The Industrial Revolution was
the result of many fundamental, interrelated
changes that transformed agricultural economies
into industrial ones. The most immediate changes
were in the nature of production what was
produced, as well as where and how.
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INDUSTRIAL REVOLUTION

• 1712 - Newcomen Steam Engine and the Industrial
  Revolution

In 1712, Thomas Newcomen together with John
Calley built their first steam engine on top of
a water filled mine shaft and used it to pump
water out of the mine. The Newcomen steam engine
was the predecessor to the Watt steam engine and
it was one of the most interesting pieces of
technology developed during the 1700's. The
invention of engines, the first being steam
engines, was very important to the industrial
revolution.
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INDUSTRIAL REVOLUTION

• 1733 Flying Shuttle, Automation of Textile
  Making The Industrial Revolution

In 1733, John Kay invented the flying
shuttle, an improvement to looms that enabled
weavers to weave faster. By using a flying
shuttle, a single weaver could produce a wide
piece of cloth. The original shuttle contained a
bobbin on to which the weft (weaving term for the
crossways yarn) yarn was wound. It was normally
pushed from one side of the warp (weaving term
for the the series of yarns that extended
lengthways in a loom) to the other side by hand.
Before the flying shuttle wide looms needed two
or more weavers to throw the shuttle.
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INDUSTRIAL REVOLUTION

• 1764 - Increased Yarn Thread Production
  During Industrial Revolution

In 1764, a British carpenter and weaver
named James Hargreaves invented an improved
spinning jenny, a hand-powered multiple spinning
machine that was the first machine to improve
upon the spinning wheel by making it possible to
spin more than one ball of yarn or thread.p
Spinner machines like the spinning wheel and the
spinning jenny made the threads and yarns used by
weavers in their looms. As weaving looms became
faster, inventors had to find ways for spinners
to keep up.
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INDUSTRIAL REVOLUTION

• 1769 - James Watt's Improved Steam Engine
  Powers the Industrial Revolution

James Watt was sent a Newcomen steam engine
to repair that led him to invented improvements
for steam engines. Steam engines were now true
reciprocating engine and not atmospheric engines.
Watt added a crank and flywheel to his engine so
that it could provide rotary motion. Watt's steam
engine machine was four times more powerful than
those engines based on Thomas Newcomen's steam
engine design
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INDUSTRIAL REVOLUTION
1769 - Spinning Frame or Water Frame
Richard Arkwright patented the spinning frame
or water that could produce stronger threads for
yarns. The first models were powered by
waterwheels so the device came to be first known
as the water frame. It was the first powered,
automatic, and continuous textile machine and
enabled the move away from small home
manufacturing towards factory production of
textiles. The water frame was also the first
machine that could spin cotton threads.
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INDUSTRIAL REVOLUTION

• 1779 - Spinning Mule Increased Variety in
  Threads Yarns

In 1779, Samuel Crompton invented the
spinning mule that combined the moving carriage
of the spinning jenny with the rollers of the
water frame. The spinning mule gave the spinner
great control over the weaving process. Spinners
could now make many different types of yarn.
Finer cloths could now be made.
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INDUSTRIAL REVOLUTION
1785 - Power Loom's Effect on the Women of the
Industrial Revolution
The power loom was a steam-powered,
mechanically-operated version of a regular loom.
A loom is a device that combined threads to make
cloth. When the power loom became efficient,
women replaced most men as weavers in the textile
factories
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INDUSTRIAL REVOLUTION

• IMPACT RESULTED (POSITIVE)

• The social changes brought about by the
  Industrial Revolution were significant.
• As economic activities in many communities moved
  from agriculture to manufacturing, production
  shifted from its traditional locations in the
  home and the small workshop to factories.
• Large portions of the population relocated from
  the countryside to the towns and cities where
  manufacturing centers were found.
• The overall amount of goods and services produced
  expanded dramatically, and the proportion of
  capital invested per worker grew.

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INDUSTRIAL REVOLUTION

• IMPACT RESULTED (POSITIVE)

• New groups of investors, businesspeople, and
  managers took financial risks and reaped great
  rewards.
• In the long run the Industrial Revolution has
  brought economic improvement for most people in
  industrialized societies.
• Many enjoy greater prosperity and improved
  health, especially those in the middle and the
  upper classes of society.

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INDUSTRIAL REVOLUTION

• IMPACT RESULTED (NEGATIVE)

• There have been costs, however.
• In some cases, the lower classes of society have
  suffered economically.
• Industrialization has brought factory pollutants
  and greater land use, which have harmed the
  natural environment.
• In particular, the application of machinery and
  science to agriculture has led to greater land
  use and, therefore, extensive loss of habitat for
  animals and plants.
• In addition, drastic population growth following
  industrialization has contributed to the decline
  of natural habitats and resources. These factors,
  in turn, have caused many species to become
  extinct or endangered.

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Changes in Industry

• Continuous-Process Manufacturing

An important American development was
continuous-process manufacturing. In
continuous-process manufacturing, large
quantities of the same product, such as
cigarettes or canned food, are made in a nonstop
operation. The process runs continuously, except
for repairs to or maintenance of the machinery
used. Continuous-Process Manufacturing
In the late 18th century, inventor Oliver Evans
of Delaware created a remarkable water-powered
flour mill. In Evanss mill, machinery elevated
the grain to the top of the mill and then moved
it mechanically through various processing steps,
eventually producing flour at the bottom of the
mill. The process greatly reduced the need for
manual labor and cut milling costs dramatically.
Mills modeled after Evanss were built along the
Delaware and Brandywine rivers and Chesapeake
Bay, and by the time of the American Revolution
(1775-1783) they were arguably the most
productive in the world. Similar milling
technology was also used to grind snuff and other
tobacco products in the same region.
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Changes in Industry

• The American System

• by the mid-19th century American manufacturers
  shaped a set of techniques later known as the
  American system of production.
• This system involved using special-purpose
  machines to produce large quantities of similar,
  sometimes interchangeable, parts that would then
  be assembled into a finished product.
• The American system extended the idea of division
  of labor from workers to specialized machines.
  Instead of a worker making a small part of a
  finished product, a machine made the part,
  speeding the process and allowing manufacturers
  to produce goods more quickly.
• This method also enabled goods of much more
  uniform quality than those made by hand labor.

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Changes in Industry

• The Second Industrial Revolution

• As American manufacturing technology
  spread to new industries
• The first had come on a wave of new inventions in
  iron making, in textiles, in the centrally
  powered factory, and in new ways of organizing
  business and work.
• In the latter 19th century, a second wave of
  technical and organizational advances carried
  industrial society to new levels. While Great
  Britain had been the birthplace of the first
  revolution, the second occurred most powerfully
  in the United States.

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Changes in Industry

• FORDIANISM

• It was in the automobile industry that
  continuous-process methods and the American
  system combined to greatest effect.
• In 1903 American industrialist Henry Ford founded
  the Ford Motor Company.
• His production innovation was the moving assembly
  line which brought together many mass-produced
  parts to create automobiles.
• Fords moving assembly line gave the world the
  fullest expression yet of the Second Industrial
  Revolution, and his production triumphs in the
  second decade of the 20th century signaled the
  crest of the new industrial age.

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Changes in Industry

• Organization and Work-Taylorism

• Just as important as advances in manufacturing
  technology was a wave of changes in how business
  was structured and work was organized.
• Engineers studied and modified production,
  seeking the most efficient ways to lay out a
  factory, move materials, route jobs, and control
  work through precise scheduling.
• Industrial engineer Frederick Taylor and his
  followers sought both efficiency and contented
  workers. They believed that they could achieve
  those results through precise measurement and
  analysis of each aspect of a job.

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INDUSTRIAL PROGRESSISSUES
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Managing in Turbulent Times
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1. Organizational Change

• Pace continues to accelerate
• Change is major source of business risk
• Driving Forces
• Telecommunications
• Diversity of Workers
• Public consciousness
• Global marketplace
• Community of stakeholders

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A. Driving Force Technology

• Ever-advancing Technology has shrunk the world

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B. Driving Force Diversity

• Increasing diversity of workers has brought in a
  wide array of differing values, perspectives, and
  expectations among workers

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C. Driving Force Public Consciousness

• Public consciousness has become much more
  sensitive and demanding that organizations be
  more socially responsible

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D. Driving Force Global Marketplace

• Strive to remain competitive in the face of
  increasingly tough global competition
• Much of the 3rd-world countries have joined the
  global marketplace, creating a wider arena for
  sales and services

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E. Driving Force Stakeholders

• Community of Stakeholders
• Organizations are responsible to stockholders,
  and
• Focus on building relationships with employees,
  customers, partners, and suppliers

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2. Nature of Management

• Cope with diverse, far-reaching challenges
• Driving Forces
• Telecommunications
• Diversity of Workers
• Public consciousness
• Global marketplace
• Community of stakeholders

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A. Shift in Mindsets to Navigate Turbulence

• Managers are asked to...
• Do more with less
• Engage whole employees
• See change rather than stability as natural
• Create vision and cultural values that encourage
  collaborative workplace

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B. Making a Difference Today

• Requires integrating...
• Tried and true management skills
• New approaches that emphasize
• Human touch
• Enhance flexibility
• Involve employees hearts, minds, and bodies

Successful organizations dont just happen...
they are
managed to be that way!
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3. Functions of Management
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A. The Process of Management
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Planning Function

• Definition
• Defines goals for future organizational
  performance
• Decides tasks and use of resources needed
• Corporate Examples
• Planning AOL Time Warner The Lord of the
  Rings p. 8
• Lack of planning Merry-Go-Round p. 8

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Organizing Function

• Definition
• Follows planning
• Reflects how organization tries to accomplish
  plan
• Involves assignment of
• tasks into departments
• authority and allocation of resources across
  organization
• Corporate Examples - Structural reorganizations
• Hewlett-Packard, Sears, Xerox accommodate
  changing plans
• Voyant Technologies increased sales faster
  product development

43
Controlling Function

• Definition
• Monitoring employees activities
• Determining whether the organization is on target
  toward its goals
• Making corrections as necessary

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Controlling Function

• New Trends
• Empowerment and trust of employees training
  employees to monitor and correct themselves
• New information technology provides control
  without strict top-down constraints
• Lack of Control Information can lead to
  Organizational Failure

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B. Organizational Performance

• Attainment of organizational goals in an
  efficient and effective manner

The Process of Management
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Organizational Performance

• Organization - social entity that is goal
  directed and deliberately structured
• Effectiveness - degree to which organization
  achieves a stated goal
• Efficiency - use of minimal resources (raw
  materials, money, and people) to produce the
  desired volume of output
• Performance organizations ability to attain
  its goals by using resources in an efficient and
  effective manner

47
4. Management Skills
Managers Job

• Complex
• Multidimensional
• Range of skills

48
Management Skills

• Conceptual Skills Cognitive ability to see the
  organization as a whole and the relationships
  among its parts
• Human Skills ability to work with and through
  other people and to work effectively as a group
  member
• Technical Skills understanding of and
  proficiency in the performance of specific tasks
• When skills Fail

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A. Management Types - Vertical
Managerial Levels in the Organizational Hierarchy
Management Levels in the Organizational Hierarchy
Managerial Levels in the Organizational Hierarchy
50
B. Management Types - Horizontal

• Functional Managers -
• Responsible for a department that performs a
  single functional task and
• Has employees with similar training and skills
• General Managers
• Responsible for several departments that perform
  different functions

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Managerial Types - Horizontal

• Functional Managers
• Advertising
• Sales
• Finance
• Human Resources
• Manufacturing
• Accounting

• General Managers
• Self-contained division such as a Dillards
  department store
• Project managers have general management
  responsibility as they coordinate people across
  several departments

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C. What is it like to be a Manager?

• Manager Activities
• Multitasking
• Fragmentation Variety
• Brevity
• 
  
• Life on Speed Dial
• Managers Role
• Set of expectations for ones behavior
• Diverse activities 3 roles

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Who Are Managers?

• Manager
• someone who works with and through other people
  by coordinating their work activities in order to
  accomplish organizational goals
• changing nature of organizations and work has
  blurred the clear lines of distinction between
  managers and non-managerial employees

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Classifying Managers

• First-line Managers
• Individuals who manage the work of non-managerial
  employees.
• Middle Managers
• Individuals who manage the work of first-line
  managers.
• Top Managers
• Individuals who are responsible for making
  organization-wide decisions and establishing
  plans and goals that affect the entire
  organization.

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Classifying Managers
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Manager Roles
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What Do Managers Do?

• Functional Approach
• Planning
• Defining goals, establishing strategies to
  achieve goals, developing plans to integrate and
  coordinate activities.
• Organizing
• Arranging and structuring work to accomplish
  organizational goals.
• Leading
• Working with and through people to accomplish
  goals.
• Controlling
• Monitoring, comparing, and correcting work.

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What Managers Actually Do (Mintzberg)

• Interaction
• with others
• with the organization
• with the external context of the organization
• Reflection
• thoughtful thinking
• Action
• practical doing

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What Do Managers Do? (contd)

• Skills Approach
• Technical skills
• Knowledge and proficiency in a specific field
• Human skills
• The ability to work well with other people
• Conceptual skills
• The ability to think and conceptualize about
  abstract and complex situations concerning the
  organization

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Skills Needed at Different Management Levels
61
Conceptual Skills

• Using information to solve business problems
• Identifying of opportunities for innovation
• Recognizing problem areas and implementing
  solutions
• Selecting critical information from masses of
  data
• Understanding of business uses of technology
• Understanding of organizations business model

Source Based on American Management Association
Survey of Managerial Skills and Competencies,
March/April 2000, found on AMA Web site
(www.ama.org), October 30, 2002.
62
Communication Skills

• Ability to transform ideas into words and actions
• Credibility among colleagues, peers, and
  subordinates
• Listening and asking questions
• Presentation skills spoken format
• Presentation skills written and/or graphic
  formats

Source Based on American Management Association
Survey of Managerial Skills and Competencies,
March/April 2000, found on AMA Web site
(www.ama.org), October 30, 2002.
63
Effectiveness Skills

• Contributing to corporate mission/departmental
  objectives
• Customer focus
• Multitasking working at multiple tasks in
  parallel
• Negotiating skills
• Project management
• Reviewing operations and implementing improvements

Source Based on American Management Association
Survey of Managerial Skills and Competencies,
March/April 2000, found on AMA Web site
(www.ama.org), October 30, 2002.
64
Effectiveness Skills (contd)

• Setting and maintaining performance standards
  internally and externally
• Setting priorities for attention and activity
• Time management

Source Based on American Management Association
Survey of Managerial Skills and Competencies,
March/April 2000, found on AMA Web site
(www.ama.org), October 30, 2002.
65
Interpersonal Skills

• Coaching and mentoring skills
• Diversity skills working with diverse people and
  cultures
• Networking within the organization
• Networking outside the organization
• Working in teams cooperation and commitment

Source Based on American Management Association
Survey of Managerial Skills and Competencies,
March/April 2000, found on AMA Web site
(www.ama.org), October 30, 2002.
66
D. Hierarchical Levels
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E. Managing in Small Businesses and Nonprofit
Organizations

• Role Differences
• Source of Financial Resources
• Unconventional Bottom-line

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E1. Management and the New Workplace

• Characteristics
• Resources Bits--information
• Work Flexible, virtual
• Workers Empowered employees, free agents
• Forces on Organizations
• Technology Digital, e-business
• Markets Global, including internet
• Workforce Diverse
• Values Change, speed
• Events Turbulent, more frequent crises

• Management Competencies
• Leadership Dispersed, empowering
• Focus Connection to customers, employees
• Doing Work By teams
• Relationships Collaboration
• Design Experimentation, learning organization

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E1. Management and the New Workplace

• Forces on organizations
• New Management Competencies
• Dispersed leadership
• Empowering others
• Collaborative relationships
• Team-building skills
• Learning organization

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E2. Managing During Turbulent Times

• Stay Calm
• Be Visible
• Put People Before Business
• Tell the Truth
• Know When to Get Back to Business

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• PERSPECTIVE
• As An Example of Current Industrial

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Stages of Economic Development

• 
  Features
• Pre-
  Use of Standard
• dominant human
  Unit of of living
• Society Game activity labor
  social life measure Structure
  Technology
• Pre- Against Agriculture
  Raw Extended Sub- Routine
  Simple hand
• Industrial Nature Mining
  muscle household sistence
  Traditional tools
• 
  power
  Authoritative
• Industrial Against Goods
  Machine Individual Quantity
  Bureaucratic Machines
• fabricated production
  tending of goods
  Hierarchical
• nature
• Post- Among Services
  Artistic Community Quality of Inter-
  Information
• industrial Persons
  Creative life in terms
  dependent
• 
  Intellectual of health,
  Global
• 
  
  education,
• 
  
  recreation
  

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Faster Growth and More Good JobsOnce an
economy reaches the middle income level of
development, service industries become a more
important source of job growth than manufacturing
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Trends in U.S. Employment by Sector

75
Percent Service Employment for Selected
Industrialized Nations

• Country 1980 1987
  1993 1999
• United States 67.1
  71.0 74.3 80.4
• Canada 67.2
  70.8 74.8 73.9
• Japan 54.5
  58.8 59.9 72.4
• France 56.9
  63.6 66.4 70.8
• Israel 63.3
  66.0 68.0 70.7
• Italy 48.7
  57.7 60.2 61.1
• China 13.1
  17.8 21.2 26.4

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Faster Growth and More Good JobsOnce an
economy reaches the middle income level of
development, service industries become a more
important source of job growth than manufacturing
77
Percent of U.S. Labor Force by Industry
80
70
60
50
Percent of U.S. Labor Force
40
30
20
10
0
1929
1948
1969
1977
1984
1999

• Services
• Manufacturing
• Mining Agriculture

Year
Source Survey of Current Business, April 1998,
Table B.8, July 1988, Table 6.6B, and July 1992,
Table 6.4C Eli Ginzberg and George J. Vojta,
The Service Sector of the U.S. Economy,
Scientific American, 244,3 (1981) 31-39.
78
Percent of U.S. Gross Domestic Product by
Industry
80
70
60
Percent of GDP
50
40
30
20
10

• Services
• Manufacturing
• Mining Agriculture

0
1948
1959
1967
1977
1987
1999
Year
Source Survey of Current Business, August 1996,
Table 11, April 1998, Table B.3 Eli Ginzberg
and George J. Vojta, The Service Sector of the
U.S. Economy, Scientific American, 244,3 (1981)
31-39.
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PERSPECTIVE Management as one process and system
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EMERGING CHALLENGES FOR MANAGEMENT

• Globalization Managers need to think globally
  and act locally.
• Technology The new economy will base on digital
  revolution. The development in information
  technology will provide greater access to
  management. Management will need to manage
  changing technology effectively.
• Quality Quality assurance is getting important.
• Social responsibility Management will pursue
  long term goals that are good for society.
• Empowerment To empower worker is a challenge to
  management.

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EMERGING CHALLENGES FOR MANAGEMENT

• Human resource management Management needs to
  deal with diversified work force, requires
  visionary leadership on the part of management.
• Organization design Organization will be lean
  flat and less hierarchical
• Cultural sensitivity Cultural value will change
  cross cultural influences. Organizations are
  emerging as cultural systems.
• Change management Manager will face the
  challenge of managing change. They will need to
  aware specific changes and their likely impact on
  the practice of management.
• Learning organization Management needs to create
  learning environment. Organization of future will
  be predominantly knowledge based.

82

• Management can be defined in detail in
  following categories
• Management as a Process
• Management as an Activity
• Management as a Discipline
• Management as a Group
• Management as a Science
• Management as an Art
• Management as a Profession

83
Management as a Process

• As a process, management refers to a series of
  inter related functions. It is the process by
  which management creates, operates and directs
  purposive organization through systematic,
  coordinated and co-operated human efforts,
  according to George R. Terry, Management is a
  distinct process consisting of planning,
  organizing, actuating and controlling, performed
  to determine and accomplish stated objective by
  the use of human beings and other resources. As
  a process, management consists of three aspects

84
Management as a Process

• Management is a social process Since human
  factor is most important among the other factors,
  therefore management is concerned with developing
  relationship among people. It is the duty of
  management to make interaction between people
  productive and useful for obtaining
  organizational goals.
• Management is an integrating process Management
  undertakes the job of bringing together human
  physical and financial resources so as to achieve
  organizational purpose. Therefore, is an
  important function to bring harmony between
  various factors.
• Management is a continuous process It is a
  never ending process. It is concerned with
  constantly identifying the problem and solving
  them by taking adequate steps. It is an on-going
  process.

85
Management as a Activity

• Like various other activities performed by human
  beings such as writing, playing, eating, cooking
  etc, management is also an activity because a
  manager is one who accomplishes the objectives by
  directing the efforts of others. According to
  Koontz, Management is what a manager does.
  Management as an activity includes

86
Management as a Activity

• Informational activities In the functioning of
  business enterprise, the manager constantly has
  to receive and give information orally or in
  written. A communication link has to be
  maintained with subordinates as well as superiors
  for effective functioning of an enterprise.
• Decisional activities Practically all types of
  managerial activities are based on one or the
  other types of decisions. Therefore, managers are
  continuously involved in decisions of different
  kinds since the decision made by one manager
  becomes the basis of action to be taken by other
  managers. (E.g. Sales Manager is deciding the
  media content of advertising).
• Inter-personal activities Management involves
  achieving goals through people. Therefore,
  managers have to interact with superiors as well
  as the sub-ordinates. They must maintain good
  relations with them. The inter-personal
  activities include with the sub-ordinates and
  taking care of the problem. (E.g. Bonuses to be
  given to the sub-ordinates).

87
Management as a Discipline

• Management as a discipline refers to that branch
  of knowledge which is connected to study of
  principles practices of basic administration.
  It specifies certain code of conduct to be
  followed by the manager also various methods
  for managing resources efficiently.
• Management as a discipline specifies certain code
  of conduct for managers indicates various
  methods of managing an enterprise. Management is
  a course of study which is now formally being
  taught in the institutes and universities after
  completing a prescribed course or by obtaining
  degree or diploma in management, a person can get
  employment as a manager.

88
Management as a Discipline

• Any branch of knowledge that fulfils
  following two requirements is known as
  discipline
• There must be scholars thinkers who communicate
  relevant knowledge through research and
  publications.
• The knowledge should be formally imparted by
  education and training programmes.
• Since management satisfies both these
  problems, therefore it qualifies to be a
  discipline. Though it is comparatively a new
  discipline but it is growing at a faster pace

89
Management as a Group

• Management as a group refers to all those persons
  who perform the task of managing an enterprise.
  When we say that management of ABC Co. is good,
  we are referring to a group of people those who
  are managing. Thus as a group technically
  speaking, management will include all managers
  from chief executive to the first line managers
  (lower-level managers). But in common practice
  management includes only top management i.e.
  Chief Executive, Chairman, General Manager, Board
  of Directors etc. In other words, those who are
  concerned with making important decisions, these
  persons enjoy the authorities to use resources to
  accomplish organizational objectives also
  responsibility to for their efficient
  utilization.

90
Management as a Group

• Management as a group may be looked upon in
  2 different ways
• All managers taken together.
• Only the top management
• The interpretation depends upon the context
  in which these terms are used. Broadly speaking,
  there are 3 types of managers
• Patrimonial / Family Manager Those who have
  become managers by virtue of their being owners
  or relatives of the owners of company.
• Professional Managers Those who have been
  appointed on account of their specialized
  knowledge and degree.
• Political Managers / Civil Servants Those who
  manage public sector undertakings.
• Managers have become a part of elite group
  of society as they enjoy higher standard of
  living in the society.

91
Management as a Science

• Science is a systematic body of knowledge
  pertaining to a specific field of study that
  contains general facts which explains a
  phenomenon. It establishes cause and effect
  relationship between two or more variables and
  underlines the principles governing their
  relationship. These principles are developed
  through scientific method of observation and
  verification through testing.
• Science is characterized by following main
  features
• Universally acceptance principles Scientific
  principles represents basic truth about a
  particular field of enquiry. These principles may
  be applied in all situations, at all time at
  all places. E.g. law of gravitation which can
  be applied in all countries irrespective of the
  time. Management also contains some fundamental
  principles which can be applied universally like
  the Principle of Unity of Command i.e. one man,
  one boss. This principle is applicable to all
  type of organization business or non business.
• Experimentation Observation Scientific
  principles are derived through scientific
  investigation researching i.e. they are based
  on logic. E.g. the principle that earth goes
  round the sun has been scientifically proved.
  Management principles are also based on
  scientific enquiry observation and not only on
  the opinion of Henry Fayol. They have been
  developed through experiments practical
  experiences of large no. of managers. E.g. it is
  observed that fair remuneration to personal helps
  in creating a satisfied work force.

92
Management as a Science

• Cause Effect Relationship Principles of
  science lay down cause and effect relationship
  between various variables. E.g. when metals are
  heated, they are expanded. The cause is heating
  result is expansion. The same is true for
  management, therefore it also establishes cause
  and effect relationship. E.g. lack of parity
  (balance) between authority responsibility will
  lead to ineffectiveness. If you know the cause
  i.e. lack of balance, the effect can be
  ascertained easily i.e. in effectiveness.
  Similarly if workers are given bonuses, fair
  wages they will work hard but when not treated in
  fair and just manner, reduces productivity of
  organization.
• Test of Validity Predictability Validity of
  scientific principles can be tested at any time
  or any number of times i.e. they stand the test
  of time. Each time these tests will give same
  result. Moreover future events can be predicted
  with reasonable accuracy by using scientific
  principles. E.g. H2 O2 will always give H2O.
  Principles of management can also be tested for
  validity. E.g. principle of unity of command can
  be tested by comparing two persons one having
  single boss and one having 2 bosses. The
  performance of 1st person will be better than
  2nd.

93
Management as an Art

• Art implies application of knowledge skill
  to trying about desired results. An art may be
  defined as personalized application of general
  theoretical principles for achieving best
  possible results. Art has the following
  characters
• Practical Knowledge Every art requires practical
  knowledge therefore learning of theory is not
  sufficient. It is very important to know
  practical application of theoretical principles.
  E.g. to become a good painter, the person may not
  only be knowing different colour and brushes but
  different designs, dimensions, situations etc to
  use them appropriately. A manager can never be
  successful just by obtaining degree or diploma in
  management he must have also know how to apply
  various principles in real situations by
  functioning in capacity of manager.
• Personal Skill Although theoretical base may be
  same for every artist, but each one has his own
  style and approach towards his job. That is why
  the level of success and quality of performance
  differs from one person to another. E.g. there
  are several qualified painters but M.F. Hussain
  is recognized for his style. Similarly management
  as an art is also personalized. Every manager has
  his own way of managing things based on his
  knowledge, experience and personality, that is
  why some managers are known as good managers
  (like Aditya Birla, Rahul Bajaj) whereas others
  as bad.

94
Management as an Art

• Creativity Every artist has an element of
  creativity in line. That is why he aims at
  producing something that has never existed before
  which requires combination of intelligence
  imagination. Management is also creative in
  nature like any other art. It combines human and
  non-human resources in useful way so as to
  achieve desired results. It tries to produce
  sweet music by combining chords in an efficient
  manner.
• Perfection through practice Practice makes a man
  perfect. Every artist becomes more and more
  proficient through constant practice. Similarly
  managers learn through an art of trial and error
  initially but application of management
  principles over the years makes them perfect in
  the job of managing.
• Goal-Oriented Every art is result oriented as it
  seeks to achieve concrete results. In the same
  manner, management is also directed towards
  accomplishment of pre-determined goals. Managers
  use various resources like men, money, material,
  machinery methods to promote growth of an
  organization.

95
Management as Profession

• A profession may be defined as an occupation
  that requires specialized knowledge and intensive
  academic preparations to which entry is regulated
  by a representative body. The essentials of a
  profession are
• Specialized Knowledge A profession must have a
  systematic body of knowledge that can be used for
  development of professionals. Every professional
  must make deliberate efforts to acquire expertise
  in the principles and techniques. Similarly a
  manager must have devotion and involvement to
  acquire expertise in the science of management.
• Formal Education Training There are no. of
  institutes and universities to impart education
  training for a profession. No one can practice a
  profession without going through a prescribed
  course. Many institutes of management have been
  set up for imparting education and training. For
  example, a CA cannot audit the A/Cs unless he
  has acquired a degree or diploma for the same but
  no minimum qualifications and a course of study
  has been prescribed for managers by law. For
  example, MBA may be preferred but not necessary.

96
Management as Profession

• Social Obligations Profession is a source of
  livelihood but professionals are primarily
  motivated by the desire to serve the society.
  Their actions are influenced by social norms and
  values. Similarly a manager is responsible not
  only to its owners but also to the society and
  therefore he is expected to provide quality goods
  at reasonable prices to the society.
• Code of Conduct Members of a profession have to
  abide by a code of conduct which contains certain
  rules and regulations, norms of honesty,
  integrity and special ethics. A code of conduct
  is enforced by a representative association to
  ensure self discipline among its members. Any
  member violating the code of conduct can be
  punished and his membership can be withdrawn. The
  AIMA has prescribed a code of conduct for
  managers but it has no right to take legal action
  against any manager who violates it.
• Representative Association For the regulation
  of profession, existance of a representative body
  is a must. For example, an institute of Charted
  Accountants of India establishes and administers
  standards of competence for the auditors but the
  AIMA however does not have any statuary powers to
  regulate the activities of managers.

97
Features of Principles of Management

• Principles of Management are Universal
• Management principles are applicable to all kinds
  of organizations business non business.
• They are applicable to all levels of management.
• Every organization must make best possible use by
  the use of management principles.
• Therefore, they are universal or all pervasive.
• Principles of Management are Flexible
• Management principles are dynamic guidelines and
  not static rules.
• There is sufficient room for managerial
  discretion i.e. they can be modified as per the
  requirements of the situation.
• Modification improvement is a continuous
  phenomenon in case of principles of management.

98
Features of Principles of Management

• Principles of Management have a Cause Effect
  Relationship
• Principles of management indicate cause and
  effect relationship between related variables.
• They indicate what will be the consequence or
  result of certain actions. Therefore, if one is
  known, the other can be traced.
• Principles of Management - Aims at Influencing
  Human Behavior
• Human behavior is complex and unpredictable.
• Management principles are directed towards
  regulating human behavior so that people can give
  their best to the organization.
• Management is concerned with integrating efforts
  and harmonizing them towards a goal.
• But in certain situations even these principles
  fail to understand human behavior.
• Principles of Management are of Equal Importance
• All management principles are equally important.
• No particular principle has greater importance
  than the other.
• They are all required together for the
  achievement of organizational goals.

99
DISCUSSION MANAGEMENT AS PROCESS AND SYSTEM