Industrial
Management
Dr.Vidyashankar.S Professor
Dept. of Mechanical Engg.
Bangalore Institute of Technology
Bangalore-04
Part A
Unit - I
Introduction
Chapter 1
The
branch
of
engineering
that
deals
with the
creation
and
management
of
systems
that
integrate
people and
materials
and
energy
in
productive
ways
Definition
Industrial Management
DEFINTION OF MANGAEMENT
According to Henry Fayol “Management is to forecast and plan, to organise, to command, to co-ordinate and to control.”
It attempts to describe management in terms of what a manager does and not what management is?
According to Oliver Sheldon, “the term management is commonly used to cover the formation of policy, its execution, the designing of the organisation and its employment.”
According to E.F.L. Breech – “Management can be defined as a social process entailing responsibility for the effective and efficient planning and regulation of the operations of an enterprise,’’
suc
Historical Perspective
• Since the beginning of time, humans have been managing—managing
other people, managing organizations, and managing themselves.
• To some, management is thought of as an art; to others, as a science.
• Each of those perspectives is grounded in the early writings and
teaching of a group of managerial pioneers
The Pre-modern Era
Ancient massive construction projects
Egyptian pyramids
Great Wall of China
INDUSTRIAL REVOLUTION
• While it can be argued that management began well before the
Industrial Revolution, it is often felt that what emerged as contemporary management thought was begin with the beginning of industrial development.
• The Industrial Revolution began in the mid-eighteenth century
when factories were first built and laborers were employed to work in them.
The Industrial Revolution’s Influence On
Management Practices
Industrial revolution
Machine power began to substitute for human power
Lead to mass production of economical goods
Improved and less costly transportation systems became available
Larger organizations developed to serve larger markets
Created the need for formalized management practices.
Adam Smith’s Contribution To The Field Of Management
Wrote the Wealth of Nations (1776)
Advocated the economic advantages that organizations and society would reap from the division of labor:
Increased productivity by increasing each worker’s skill and dexterity.
Time saved that is commonly lost in changing tasks. The creation of labor-saving inventions and
Adam Smith’s
Classical Contributions
Classical approach
The term used to describe the hypotheses of the scientific management theorists and the general
administrative theorists.
Scientific management theorists
Fredrick W. Taylor, Frank and Lillian Gilbreth, and Henry Gantt
General administrative theorists
Henri Fayol and Max Weber
Scientific Management
The Principles of Scientific Management (1911)
Advocated the use of the scientific method to define the “one best way” for a job to be done
Believed that increased efficiency could be
achieved by selecting the right people for the job and training them to do it precisely in the one best way. To motivate workers, he favored incentive wage
plans.
Separated managerial work from operative work.
Scientific Management Contributors
Frank and Lillian Gilbreth
Bricklaying efficiency improvements
Henry Gantt
Incentive compensation systems
Gantt chart for scheduling work operations
General Administrative Theory
General administrative theorists
Writers who developed general theories of what managers do and what constitutes good
management practice Henri Fayol (France)
Fourteen Principles of Management: Fundamental or universal principles of management practice
Max Weber (Germany)
Bureaucracy: Ideal type of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships
BEHAVIORAL MANAGEMENT
• The behavioral school of management grew out of the efforts of some to recognize the importance of the human endeavor in an organization.
• These people felt that if managers wanted to get things done, it must be through people—the study of workers and their interpersonal relationships.
Henry L. Gantt (1861–1919)
• was one of the earliest of theses behavioral theorists.
• Some people would classify him in more than one category, but his passionate concern for the worker as an individual and his pleas for a humanitarian
approach to management exemplify the behavioral approach.
• His early writing called for teaching and instructing workers, rather than driving them
• Although trained in philosophy and political science, shifted her interests to
vocational guidance, adult education, and social psychology.
• These led to her lifetime pursuit of developing a new managerial philosophy that would incorporate an understanding of the motivating desires of the
individual and the group.
Elton Mayo (1880–1949)
• Best known for his Hawthorne experiments, introduced rest pauses in industrial plants and in so doing reduced employee turnover from 250 percent to 5 percent in some cases.
• He was concerned about human performance and working conditions.
• The work pauses, better known as breaks, reduced employee pessimism and improved morale and productivity.
Henri Fayol (1841–1925),
• The father of the management process school of thought was the Frenchman a mining
• He spent his entire working career with the same company, involved with coal mining and iron production.
• From his experiences as the managing director of the company, Fayol developed his general principles of administration
• He thought that the study, analysis, and teaching of management should all be
approached from the perspective of its functions, which he defined as forecasting and planning, organizing, commanding, controlling, and coordinating.
James D. Mooney (1884–1957)
• whose writings and research lent credence to the management process school of
thinking, is credited with the notion that all great managers use the same principles of management.
-
Frederick
Taylor,
-Henry Fayol,
-Gilbert,
-Charles Babbage,
- Henry Gantt
contribution
Frederick Winslow Taylor
“Father of Modern
Management”
In 1895- proposed a Piece Rate System:
Observe & Analyze – set the “standard” for job (use Time and Motion studies)
Pay individual worker – not everyone, or
group/department, or the “job” = pay according to individual value to business
Frederick Taylor – Cont
.
Worked in hydraulics factory as laborer/foreman/chief engineer
At 25 earned college degree in engineering
At 35- consultant: introduced functional foreman,
production planning, differential pay= cut costs/increased production)
1905 – wrote Shop Management 1909-14: Lecturer at Harvard
Management consultant – US Navy and Army
1911- Wrote Scientific Management
Taylor’s Four Principles of Management
Develop a science for each element of an individual’s work, which replaces
Scientifically select and then train, teach, and develop the worker.
(Previously, workers chose their own work and trained themselves as best they could.)
Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed.
Divide work and responsibility almost equally between management and
workers. Management takes over all work for which it is better fitted than the workers. (Previously, almost all the work and the greater part of the
responsibility were thrown upon the workers.)
Henri Fayol’s
Henri Fayol’s Principles of
Management
Division of Labor: allows for job specialization.
Authority and Responsibility: both formal and informal authority result from
Unity of Command: workers have only one boss. Line of Authority: clear chain of command, top to
bottom of the firm.
Centralization: degree to which authority rests at the top of the organization. Unity of Direction: single plan of action to guide the organization.
Equity - The provision of justice and the fair and impartial treatment of all
employees.
Fayol - Continue
Order: place workers where most useful and have career opportunities. Initiative: encourage employees to act on their own.
Discipline: workers need to obey
Stability of Tenure of Personnel: Long-term employment is important
Subordination of Individual Interest to the Common Interest: interest of organization priority
Esprit de corps: Have enthusiasm
Frank Gilbreth
Born in 1871 in Fairfeild, Maine.
Ambition to be a Construction Engineer.
First job as a bricklayer.
Promoted to Foreman then superintendent.
Became involved in the contracting business.
Frank Gilbreth
1911, started a firm of Consulting Industrial
Engineers.
Gained international fame as a consultant.
Had 12 children with Lillian Gilbreth.
Frank Gilbreth
Developed “time and motion” study as an
approach to scientific management.
Motion study: finding the best method to perform
a task.
Used Cine camera in analysis.
Constructed 3 dimensional models of motion
Frank Gilbreth
Devised several systems of analyzing work.
Flow Process Chart breaking work into basic
elements of operations, inspections,
transportations, storages and delays.
Frank Gilbreth
Developed “therbligs” e.g Grasp-begins when
of gaining control of an object, ends when control is
gained.
Therbligs held the stage for many years in work
analysis.
Frank Gilbreth
The Principle of Motion Economy
Lead to minimum effort and fatigue and
maximum achievement.
Identified Two factors affecting job execution:
1) Worker 2) Enviroment
Frank Gilbreth
Contribution:
Workers were trained and placed in suitable areas
of work.
Performance of the workers were monitored.
Workers were restated if the were of low
performance.
Believed in the value of questions and the need
to ask questions.
Scientific management was a philosophy of life
achieved by cooperation of engineers, educators,
physiologists, psychologists, psychiatrists,
economists, sociologists, staticians and managers.
Died in 1924.
Biography Biography
Lillian Moller Gilbreth
Early Days and Education
Date of Birth: 24th of May 1878
Place of Birth: Oakland, California
First Degree:BS degree in Literature (1900), University of California (Berkeley)
MS Degree: Literature (1902)
Doctorate: Literature (got married)
Family Life and Career
Ph.D.: Psychology (4 children) Second degree: Engineering
Partnership with her husband Frank
Difference in their natures and its effect on business:
Frank:Frank: technical aspects of time managementtechnical aspects of time management
Lillian:Lillian: human aspects of working efficiencyhuman aspects of working efficiency
Partnership with Lillian’s
Husband
•
Partnership lasted 20 years
Partnership lasted 20 years
•
•
Shared work and ideas
Shared work and ideas
•
•
•
“Applied Motion Study ”
“Applied Motion Study ”
•
•
“Fatigue Study”
“Fatigue Study”
Radical Changes in Lillian’s
Life
•
•
Husband’s early death (1924)
Husband’s early death (1924)
•
•
Struggle with business career in convincing
Struggle with business career in convincing
the companies of her ideas of efficiency
the companies of her ideas of efficiency
•
•
New techniques to perform household tasks
New techniques to perform household tasks
(efficient kitchens)
Lillian’s Work
Applying efficiency techniques for
handicapped to facilitate their lives
Directing doctors in treating patients
Wrote on homemaking and parenting
“Living with Children”“Living with Children”
“Homemaker and her Job”“Homemaker and her Job”
“Foreman and Power Management in the“Foreman and Power Management in the
Home”
Home”
Education at the age of 50
MS in EngineeringMS in Engineering
Doctorate in EngineeringDoctorate in Engineering
Served in the New Jersey State Board of Regents Delegate to the World Power Congress
Professor at Purdue
Advisor for American Presidents Retired at the age of 90
Passing away at the age of 92
Lillian Gilbreth
