Scribd
Upload
11 views13 pages

Understanding Industrial Management Basics

Industrial Management is a branch of engineering that integrates people, materials, and energy in productive systems within an industry. It encompasses the systematic management of all aspects of industry, including productivity, organization structure, and human resources. The concept evolved post-Industrial Revolution, emphasizing the coordination of various departments and the establishment of formal and informal organizational structures.

Uploaded by

Navneet Singh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
11 views13 pages

Understanding Industrial Management Basics

Industrial Management is a branch of engineering that integrates people, materials, and energy in productive systems within an industry. It encompasses the systematic management of all aspects of industry, including productivity, organization structure, and human resources. The concept evolved post-Industrial Revolution, emphasizing the coordination of various departments and the establishment of formal and informal organizational structures.

Uploaded by

Navneet Singh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

What is Industrial Management?

Ans: Industrial Management is the combination of two word – Industrial and


Management.
Industrial implies referring to Industry. Now, Industry can be defined as the
application of complex and sophisticated methods to the production of
economic good and service. Here the complex and sophisticated methods
refer to the use of appropriate machine to improve the quality and quantity
of the production.
On the other hand, management means planning, organizing,
coordinating, controlling, motivating, directing various activities in an
organization.
Finally, the combination of these two words results in a new branch of
engineering- Industrial Management, which can be defined as: "The branch
of engineering ‘that deals with the creation and management of systems that
integrates people, materials and energy in productive ways."

CONCEPT OF INDUSTRIAL MANAGEMENT


In its most comprehensive meaning, industrial management refers
to the systematic management of all aspects of the industry (or
factory). The techniques employed go beyond increasing
productivity or controlling the mechanical cost factor. They also
include organization structure, administration and human/labour
problems.
Function of Industrial management
 studying the performance of machines as well as people to keep
machines in good working condition and their production.
 The flow of materials through the plant is supervised to ensure that
neither workers nor machines are idle.
 Constant inspection is made to keep output up to standard. Charts are
used lor recording the accomplishment of both workers and machines
and for comparing them with established standards.
 Careful accounts are kept of the cost of each operation.
 When a new article is to be manufactured, it is given a design that will
make it suitable for machine production, and each step in its
manufacture is planned, including the machines and materials to be
used.
Essentially, the industrial management is concerned with the system and its
primary function is that of management.

DEVELOPMENT OF INDUSTRIAL MANAGEMENT


The term "industrial management" came into use in the United States around
the turn of twentieth century after the Industrial Revolution.
 Before the industrial revolution people are habituated to work manually.
 In the third quarter of 18th century steam power was applied to
machinery.
 Then people and machines are brought together under one roof in
factories, where manufacturing process could be supervised. This was
the beginning of Industrial management.

Industrial Management Vs Product Management

INDUSTRTAL ORGANISATION
When we talk about management of an industry, we should be clear about what is to be
managed. There are various departments in a big organisation engaged in various activities
which play their own role in helping the production department meet its objectives. Even in
service organisations like banks, software companies, hospitals, etc. there are various
departments which have to managed through industrial management.
System Engineering:
System Engineering involves Analysis and Synthesis of Problems. System Engineering involves
following steps for designing complex system:
System Analysis:

Concept of Organisation:
Importance of Organisation:
Organisational Structure
An organizational structure defines how jobs and tasks are formally divided, grouped, and
coordinated. The type of organizational structure would depend upon the type of organization itself
and its philosophy of operations.

Key Elements for Proper Organizational Structure:


• Work Specialization: To what degree are articles subdivided into separate jobs?

• Departmentalization: On what basis jobs will be grouped?

• Chain of Command: To whom will individuals and groups report?

• Span of Control: Up to how many individuals can a manager efficiently direct?


• Centralization Vs Decentralization: Who will be the sole maker of decisions?

• Formalization: To what degree will there be rules and regulations to direct employees and

managers?

Types of Organization Structure:


Formal Organisation:
Formal organisation refers to a structure that comes into existence when two or more people come
together for a common purpose, and there is a legal & formal relationship between them.

 The formation of such an organisation is deliberate by the top-level management.

▪ The organization has its own set of rules, regulations, and policies expressed in writing.

▪ The job of each is fixed, and roles, responsibilities, authority, and accountability associated

with the job is clearly defined.

▪ There exists a hierarchical structure, which determines a logical authority relationship and

follows a chain of command.

▪ The communication between two members is only through planned channels

Types of formal organization structure


• Line Organization

• Line and Staff Organization

• Functional Organization

• Project Management Organization

• Matrix Organization

Line Organization:
 Line organization is the simplest form of organization and is most common among small
companies.
 The authority is embedded in the hierarchical structure and it flows in a direct line from the top
of the managerial hierarchy down to different levels of managers and subordinates and further
down to the operative levels of workers.
 It clearly identifies authority, responsibility, and accountability at each level.
Line and Staff Organization: In this type of organization, the functional specialists
are added to the line, thus giving the line the advantages of specialists. This type of organization
is most common in our business economy and especially among large enterprises.

Functional Organization: The functional organizational concept, originated with Fredrick W.


Taylor and it permits a specialist in a given area to enforce his directive within the clearly defined
scope of his authority.
Divisional Organization: The divisional or departmental organization involves grouping of
people or activities with similar characteristics into a single department or unit.

Project Organization: These are temporary organizational structures formed for specific
projects for a specific period of time and once the goal is achieved, these are dismantled.

Matrix Organization: A matrix structure is, in a sense, a combination and interaction of project
and functional structures and is suggested to overcome the problems associated with project and
functional structures individually. The key features of a matrix structure are that the functional and
project lines of authority are super-imposed with each other and are shared by both functional and
project managers.

Informal Organization:
An informal organisation is formed within the formal organisation; that is a system of

interpersonal relationships between individuals working in an enterprise, that forms as a result

of people meet, interact and associate with one another.

▪ The organisation is created by the members spontaneously, i.e., created out of sociopsychological
needs and urge of people to talk.

▪ The organisation is featured by mutual aid, cooperation, and companionship among

members.

▪ In an informal organisation, there are no defined channels of communication, and so

members can interact with other members freely.

▪ They work together in their individual capacities and not professional.

▪ There is no defined set of rules and regulations that govern the relationship between

members.

▪ Instead, it is a set of social norms, connections, and interaction.

▪ The organisation is personal i.e., no rules and regulations are imposed on them, their

opinions, feelings, and views are given respect

▪ However, it is temporary in nature, and it does not last long.


Authority and Responsibility: These are two sides of the same coin. The term
‘authority’ stands for power or rights assigned to an individual to make decisions, whereas
‘responsibility’ is a duty to maintain and manage the assigned authority.
Span of Control:
The concept of "span of control," also known as management ratio, refers to the number of
subordinates controlled directly by a superior.

The concept of span of control was developed in the United Kingdom in 1922 by Sir Ian Hamilton. It
arose from the assumption that managers have finite amounts of time, energy, and attention to
devote to their jobs. In studies of British military leaders, Hamilton found that they could not
effectively control more than three to six people directly. These figures have been generally
accepted as the "rule of thumb" for span of control ever since. More than a decade later, A.V.
Graicumas illustrated the concept of span of control mathematically.

Common questions

Powered by AI

A matrix organizational structure combines elements of both project and functional structures, allowing for dual lines of authority and promoting flexibility . Unlike traditional structures where authority flows in a single hierarchy, the matrix allows for shared authority between project and functional managers, enabling better resource utilization and communication. This structure addresses issues like inflexibility and communication gaps inherent in traditional project and functional setups by promoting interdisciplinary collaboration and responsiveness .

Formal organizations, with their structured hierarchies and defined roles, contribute to workplace cohesion by providing clear directives and accountability, which can enhance productivity through organized and efficient task completion . Informal organizations, formed through social interactions, encourage camaraderie and innovation by fostering interpersonal relationships and open communication . The synergy between these structures supports both standardized operations and adaptive problem-solving, collectively enhancing workplace cohesion and productivity.

Organizational structure impacts industrial management by defining how tasks and administration are coordinated across an enterprise. In large organizations, structures such as line and staff, functional, and matrix organizations facilitate specialization, authority distribution, and efficient communication channels . These structures enable the establishment of clear roles and responsibilities, streamline decision-making, and optimize resource allocation, which are essential for effective industrial management.

Authority refers to the power or rights granted to an individual to make decisions and direct others, whereas responsibility is the obligation to manage and maintain the assigned authority effectively . The distinction is crucial as it ensures that while a manager has the power to make decisions, they are also accountable for the actions and outcomes of those decisions. This balance is important for maintaining organizational integrity and accountability, fostering trust and efficiency within teams.

The Industrial Revolution was pivotal in the development of industrial management. Prior to the Industrial Revolution, work was done manually. The introduction of steam power in the late 18th century allowed machines to be used in production, leading to the establishment of factories where both people and machines worked together under supervision . This new industrial environment necessitated systematic management, giving rise to industrial management as a distinct field.

Systematic management practices in industrial management encompass organizational structure development, administration, and resolution of human and labor-related issues . Beyond controlling costs and enhancing productivity, these practices ensure efficient resource use, promote organizational alignment with strategic goals, and foster a conducive work environment. This comprehensive approach aids in maintaining sustainable industrial operations and achieving long-term growth objectives.

Span of control refers to the number of subordinates a manager can directly control effectively. Managers with a narrow span often maintain closer contact and support but may lead to heavier managerial burdens and higher administrative costs. A wider span can reduce costs but potentially limit effective oversight . Historically, Sir Ian Hamilton's studies on British military leadership revealed practical limits to span of control, suggesting that effective oversight diminishes significantly with more than three to six direct reports . This insight underscores the importance of balance in managerial responsibilities.

The primary functions of industrial management include studying the performance of both machines and people to ensure machines remain in good working condition and maximize production, supervising the flow of materials to prevent idle workers and machines, and conducting constant inspections to maintain output standards . These functions contribute to productivity by ensuring efficient use of resources, minimizing downtime, and maintaining quality standards.

Centralized decision-making consolidates authority in a single entity, leading to uniformity in decision-making and policies across the organization, which can enhance consistency but may reduce responsiveness to local issues. In contrast, decentralized decision-making distributes authority closer to the operational level, enabling quicker and often more adaptive responses to specific circumstances, thereby empowering local managers and potentially increasing innovation . However, it can also lead to inconsistencies across the organization.

Frederick Taylor's functional organization concept allows specialists to oversee specific tasks, enhancing efficiency by leveraging expert knowledge and skills within defined areas of authority . By assigning specialized functions, organizations can optimize processes and improve quality while maintaining clear lines of responsibility. This structure helps streamline operations and supports precise implementation of management strategies, significantly boosting organizational productivity.

You might also like