INDUSTRIAL MANAGEMENT

INDUSTRIAL MANAGEMENT

Industrial Management deals with the development, improvement, implementation and evaluation of integrated systems of people, money, knowledge, information, equipment, energy, materials and/or processes. It also deals with designing new product prototypes more efficiently. It incorporates the principle and methods of engineering analysis and synthesis with the mathematical, physical and social sciences together to specify, predict, and evaluate the results of systems or processes.

The principles of industrial management are not only universally applicable across industries, but across all operations in government, commerce, services, or industry. The theoretical basis of industrial engineering is a science of operations, and to use this science in most applications one must simultaneously consider at least three criteria:

(1)   Quality, (2) Timeliness, and (3) Cost.

SCOPE OF INDUSTRIAL MANAGEMENT

The scope of industrial management is concerned it is applicable in all segments of industry as well as in daily life. As in daily life, we plan our activities; we coordinate available resources and control our activities to achieve certain goals in the most economic way. In the same way any organization must follow the Principles of Management for its survival and growth and to be economically viable. These management principles are applicable to all activities in industry also.

For example: The Industrial  Management consists of Planning in various departments of industry, e.g. Production, Inspection & Quality, Procurement, Store management, management of activities in assembly line etc. In production department the management includes selection of materials, planning of processes, Routing, Scheduling and controlling the activities etc. 

CONCEPT OF INDUSTRIAL MANAGEMENT

Industrial management term applied to highly organize modern methods of carrying on industrial, especially manufacturing and operations. Industrial management is a process of planning, organizing, directing, controlling and managing the activities of any industry. It combines and transforms various resources used in the system and subsystem of the organization into value added product in a controlled manner. Industrial management includes following for the effective management. Industrial Engineering and Management aims to uncover and solve organizational issues by attempting to establish a desirable allocation of management resources through the use of technologies.

Broadly the industrial management concept includes the planning, controlling and organizing the system. Planning is the activity that establishes a course of action and guide future decision-making. In this the person defines the objectives for the operations subsystem of the organization and the policies and procedures for achieving the desired

APPLICATION OF INDUSTRIAL MANAGEMENT

Applications of industrial management are summarized in the following departments of industry:

1. Managing and arranging the location of facilities

2. Design of Plant layouts 

3. Management t of material handling systems

4. Supply chain management.

5. Production and Planning control

6. Quality control & Total quality management 

7. Inventory & Materials management

8. Maintenance management

9. Operations management

10. Labor management

BENEFITS OF INDUSTRIAL MANAGEMENT

The efficient Industrial Management will give benefits to the various sections of the society. They are:

(i) Consumer benefits from improved industrial Productivity, increased use value in the product. Products are available to him at right place, at right price, at right time, in desired quantity and of desired quality.

(ii) Investors get increased security for their investments, adequate market returns, and creditability and good image in the society.

(iii) Employee gets adequate Wages, Job security, improved working conditions and increased Personal and Job satisfaction.

(iv) Suppliers will get confidence in management and their bills can be realized without any delay.

(v) Community enjoys Benefits from economic and social stability.

(vi) The Nation will achieve prospects and security because of increased Productivity and healthy industrial atmosphere.

QUESTIONS

1. What do you understand by term “industrial management?”

2. Give the concept of industrial management.

3. Write short notes of “Evolution of industrial management”

4. Focus on scope of Industrial management.

5. Give the applications of industrial management.

ORGANIZATION

An organization is an instrument or means for achieving defined objectives has been referred to as a formal organization. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs, and tasks make up this work structure. Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. Employees receive a salary and enjoy a degree of tenure that safeguards them from the arbitrary influence of superiors or of powerful clients.

The higher position in the hierarchy, the greater one's presumed expertise in solving problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and provided them with the authority attached to their position.

TYPES OF ORGANIZATIONAL STRUCTURE

Every organization, to be effective, must have an organizational structure. But what is an organizational structure? It is the form of structure that determines the hierarchy and the reporting structure in the organization. It is also called organizational chart. There are different types of organization structures that companies follow depending upon a variety of things; it can be based on geographical regions, products or hierarchy. To put it simply an organizational structure is a plan that shows the organization of work and the systematic arrangement of work.

Different Types of Organizational Structures

Traditional Structures

These are the structures that are based on functional division and departments. These are the kind of structures that follow the organization's rules and procedures to the T. they are characterized by having precise authority lines for all levels in the management. Various types of structures under traditional structures are:

Line Structure - This is the kind of structure that has a very specific line of command. The approvals and orders in this kind of structure come from top to bottom in a line, hence the name line structure. This kind of structure is suitable for smaller organizations like small accounting firms and law offices. This is the sort of structure that allows for easy decision-making and is also very informal in nature. They have fewer departments, which makes the entire organization a very decentralized one.

Line and Staff Structure - Though line structure is suitable for most organizations, especially small ones, it is not effective for larger companies. This is where the line and staff organizational structure comes into play. Line and structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization. Line and staff organizational structures are more centralized. Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates. The decision-making process becomes slower in this type of organizational structure because of the layers and guidelines that are typical to it. Also, let's not forget the formality involved.

Functional Structure - This kind of organizational structure classifies people according to the function they perform in their professional life or according to the functions performed by them in the organization. The organization chart for a functional organization consists of Vice President, Sales department, Customer Service Department, Engineering or production department, Accounting department and Administrative department.

RISPONSIBILITY

Responsibility is the obligation to accomplish the goals related to the position and the organization. Managers, at no matter what level of the organization, typically have the same basic responsibilities when it comes to managing the work force: Direct employees toward objectives, oversee the work effort of employees, deal with immediate problems, and report on the progress of work to their superiors. Managers' primary responsibilities are to examine tasks, problems, or opportunities in relationship to the company's short-and long-range goals. They must be quick to identify areas of potential problems, continually search for solutions, and be alert to new opportunities and ways to take advantage of the best ones. How effectively goals and objectives are accomplished depends on how well the company goals are broken down into jobs and assignments and how well these are identified and communicated throughout the organization.

ATHORITY

Authority is seen as the legitimate right of a person to exercise influence or the legitimate right to make decisions, to carry out actions, and to direct others. For example, managers expect to have the authority to assign work, hire employees, or order merchandise and supplies.

As part of their structure, organizations have a formal authority system that depicts the authority relationships between people and their work. Different types of authority are found in this structure: line, staff, and functional authority. Line authority is represented by the chain of command; an individual positioned above another in the hierarchy has the right to make decisions, issue directives, and expect compliance from lower-level employees. Staff authority is advisory authority; it takes the form of counsel, advice, and recommendation. People with staff authority derive their power from their expert knowledge and the legitimacy established in their relationships with line managers. Functional authority allows managers to direct specific processes, practices, or policies affecting people in other departments; functional authority cuts across the hierarchical structure. For example, the human resources department may create policies and procedures related to promoting and hiring employees throughout the entire organization.