IOAM.pdf

Industrial Organization and Management (1) includes industry executives and management and bureaucrats and elected Industry is a group of manufacturers or officials in government. businesses that produce a partic...

Industrial Organization and Management (1) includes industry executives and management and bureaucrats and elected Industry is a group of manufacturers or officials in government. businesses that produce a particular kind of policies and laws are made and implemented goods or services. Any general business activity at this level or commercial enterprise that can be isolated from others. Organization is the development of an organic structure, that is, a structure composed of Levels of Industry organs. It determines the scope and limit of #. Primary industries are those that extract or activity of each individual or group of produce raw materials from which useful items individuals in a business or industrial can be made. Extraction of raw materials undertaking, together with their relations and includes mining activities, forestry, and fishing. connections with one another. The behavior of Agriculture is also considered a primary industry the organization is directed towards the as it produces “raw materials” that require attainment of business goals. further processing for human use. Management is the process where one or more #. Secondary industries are those that change persons coordinate the activities of other raw materials into usable products through persons to achieve certain results. It is the processing and manufacturing. process of designing and maintaining an (1) bakeries that make flour into bread environment in which individuals, working (2) factories that change metals and plastics into together in groups, efficiently accomplish vehicles selected aims. they add value to the raw material Five (5) Functions of Management #. Tertiary industries are those that provide (1) Planning. involves defining an organization’s essential services and support to allow other goals, establishing an overall strategy for levels of industry to function. achieving these goals, and developing a (1) service industries, this level includes comprehensive hierarchy of plans to integrate transportation, finance, utilities, education, and coordinate activities. retail, housing, medical, and other services Decision-making is a part of planning which Since primary and secondary levels of industry involves selecting a course of action from a set cannot function without these services, they are of alternatives. sometimes referred to as “spin-off” industries. Therefore planning is the act of deciding in advance what to do in the future. #. Quaternary industries are those for the Planning is the primary function of creation and transfer of information, including management that involves formulating a future research and training. course of action for accomplishing a specific Often called information industries, this level purpose. Planning enables managers to decide has seen dramatic growth as a result of what task to do, how to do the task, when to do advancements in technology and electronic the task and by whom the task has to be done. display and transmission of information. Types of Plans #. Quinary industries are those that control the #. Strategic Plans are frameworks for an industrial and government decision- making organization. These plans contain the mission of processes. an organization and outline goals to be achieved. Strategic plans aim to turn the vision of an organization into reality. #. Tactical Plans are developed by middle-level Process of Planning management for a span of generally less than Setting Organizational Objectives three years. These plans contain instructions for Examining Business Environment lower-level management on what should be Assessing Available Alternatives and done, how should be done and by whom should Selecting the Most Appropriate Alternative be done Formulating secondary plans Ensuring cooperation and participation #. Operational Plan is developed by the Following up supervisors, team leaders and facilitators for supporting tactical plans. Limitations of Planning It governs the day-to-day operations of an Time-consuming organization/business. Expensive Operational plans can be of two types: single Gap Between Targets and Results use plans (e.g budget) and ongoing plans. Resistance Towards Change Paperwork #. Contingency Plan. an alternate plan is Reason of Frustration identified, analyzed and implemented so that in Problem of Over-target case the original plan proves insufficient, the backup is ready to be used. The factors which (2) Organizing includes determining what tasks are beyond managers’ control are kept in mind are to be done, who is to do them, how the and the alternative future scenarios are tasks are to be grouped, who reports to whom, prepared carefully. and at what level decisions are made. Specifically, organizing involves determining Importance of Planning in Management how activities and resources are to be grouped. (i) a managerial activity that involves arranging Forms Goals and structuring of responsibilities and work of Remains as a Continuous Process the employees for attaining the desired result. Gives Direction The organizing function requires effective skills, Tackles Uncertainty a proper chain of command, authority, a (ii) delegation of work, and efficient control. Minimizes Duplication and Wasteful Activities Supports and Promotes Innovative Ideas The Concept of Organizing is based on these Facilitates Decision Making principles: Sets Standards for Controlling Function #. Chain of command works on two basic Facilitates Coordination principles, which are as follows: Unity of command: This principle ensures that Characteristics of Planning all the employees working in an organization (i) report to a single manager who is the functional Continuous Process authority. Intellectual Process Scalar principle: The scalar principle involves Futuristic Approach the line of command and the defined line of Flexible process authority that involves the workforce of the (ii) organization from the top level of the hierarchy Primary Function of Management to the lower level of the hierarchy. Assists Decision Making Goal-oriented Approach #. Delegation of authority. effective Pervasive organization is possible through efficient delegation of authority. With the delegation of workforce with proper incentives and authority, employees get the power to complete motivations. the assigned tasks in their own ways. The involves the process of filling up the various process helps in increasing employee job positions in the organizational structure with satisfaction and leads to ensuring better job the right kind of people who are skilled and performance. competent to discharge the duties the position carries and implies. #. Span of Control. the factors that influence It is a multi-step process that commences with the level of control are dependent upon the determining the number and type of people you following: want in the workforce (workforce planning), Environment in which the company operates recruiting, selecting, training and developing, Nature of decision making promoting, compensating, and appraising the Ability and authority of managers performance of the workforce. Organizational structure Functions of Staffing in Management Importance of Organizing Critical Managerial Function Promotes effective delegation & management Recurring Activity Provides efficient administration Continuous Function Optimum use of human resources Based On The Efficient Management Of Growth and expansion Personnel Ensures flexibility and adapting to changes Hiring The Right People Ensures coordination and communication Ensures job satisfaction Importance of Staffing Function The workforce is Life Force Components of Organizing Ensures Competency and Efficiency Designing jobs Optimum Utilization of Resources Grouping jobs or departmentalization Training and Development of Employees Establishing a reporting relationship Motivation Distributing authority Improves Employee Satisfaction and Morale Coordinating activities Differentiating among positions Steps in Staffing Function of Management Manpower Planning Process of Organizing Recruiting Defining the objectives Selection Division of activities Workforce Orientation Grouping of activities Training and Development Defining authority and hierarchy Performance Appraisal Coordination of activities Compensation Reviewing and reorganizing Promotion (3) Staffing is the function of hiring and What is Leading in Management? retaining a suitable work force for the Leading in management is typically taking enterprise both managerial as well as control of a team to provide direction and make non-managerial levels. decisions that help achieve the goals they have It involves the processing of recruiting, set. training, developing, compensating and it can involve motivating, inspiring and evaluating employees and maintaining the empowering those around you to follow your lead.  Leaders can be essential for the good of all This direction is an important managerial members within an organization that they function in that it helps in building sound manage. industrial and human relations besides securing employee contribution. Components of Leading Function Motivating Employees: They motivate their (5) Controlling. to ensure things are going, as employees and subordinates. they should, management must monitor the Influencing Employees: They influence their organization’s performance. Actual performance employees and subordinates to reach the must be compared with the prescribed goals. desired goals of the organization. The process of monitoring, comparing, and Forming Effective Groups: They form effective correcting is what we mean by controlling groups in the organization. function. Motivating Employees What is controlling in management? Interesting and Meaningful Work Controlling can be defined as a function of Recognition and Feedback making sure that actions of the employees of an Employee Involvement organization are directed towards the Working Conditions attainment of a common goal and the work is Strong Leadership being performed as planned by the Company Policies and Environment management. Rewards Controlling means the management of the organization is responsible for deciding Importance of Leading in Management predetermined standards Guidance and Development Motivating Employees Features of Controlling in Management Initiating the first step Controlling is a dynamic process Building Morale and satisfaction A manager is required to take a different course Ensuring Proper Work Environment of actions when an employee fails to match the Coordination Among All standards of performance. A manager should have the skills to decide how to react to a 10 Essential Leadership Traits certain situation. 1.Integrity 2.Delegation Controlling is an end function 3.Communication Controlling is an end function because it comes 4.Self-Awareness into action once the task is completed. The 5.Gratitude performance standards are decided before the 6.Learning Agility work is assigned to the employees and once the 7.Influence work is complete the performance of 8.Empathy employees is compared with the standard 9.Courage performance. 10.Respect Planning and controlling go hand in hand (4) Directing. basic function of the office of It is not wrong to say that planning and management is motivating, commanding, controlling works together. A manager is leading and activating people. The willing and required to plan so that he can control the effective cooperation of employees for the actions of employees in order to achieve the attainment of organizational goals is possible desired outcome. through proper direction  Controlling is a pervasive function Therefore, their primary goal in every project is Controlling is a pervasive function because it to make more profit, and a manager at a low can’t be escaped at any level of management. level is answerable for the performance of his All management is required to control at all team’s performance. levels. Three (3) Types of Controlling Controlling is looking forward Pre-control - alternatively also called A manager can control the performance of an feed-forward or preventive control. This is the employee by controlling the past actions. A control system that helps managers to identify manager keeps track of the performance of the potential problems and find possible solutions employee, so that follow up can be made when for such problems. the time comes to compare the performance. Concurrent Control - means solving or managing problems as they happen. This Process of Controlling in Management control system goes along with activities. As Formation of standards such it is also called side-by-side or real- time Measurement of actual performance control. Comparison of actual performance with the Feedback Control - as the name suggests, standard performance refers to a control mechanism that solves Taking corrective actions if required problems after they happen. It is a reactive approach to controlling. It is also called a Importance of Controlling post-control system. Controlling Motivates Employees Controlling doesn’t mean just giving orders to Managing Production and Service Operation the employees. It means that the manager guides his employees throughout the process Production is the process by which resources and provides help to them where they need. are transformed into useful goods and services. Resources (inputs) refer to anything that can be Controlling Makes the efficient use of used, directly or indirectly, to satisfy human resources wants. Controlling in management helps in the proper Natural Resources use of resources available in the organization. Human Resources Under a controlled environment, employees Capital Resources make the proper use of resources and are careful while using them. Production management, or operations management, focuses on achieving a smooth Controlling creates discipline in the production process with efficient planning and organization control of business operations. The function of Discipline is necessary to attain the goal in the production management is to find the perfect desired time and with available resources. balance: People tend to become careless if their actions Right quality are not controlled, and if they know that there Right quantity is nobody to question them. Right time Right cost Controlling aids in the accomplishment of organizational goals The owner of the business or top management has put their money in the business with the intention to make more money out of it. Type of Manufacturing Processes your customers a fairer price too. To maintain Repetitive manufacturing consistent quality, be sure to follow your This is a 24/7 production/assembly line, made production quality control checklist. possible with the use of manufacturing process automation such as conveyor belts and robotics. Maintenance of Machines Finally, you’ll want to make sure all your tools Discrete manufacturing and machinery are spic-and-span to avoid them This too relies on production lines. But the underperforming or breaking down and products that are produced by the stopping production completely. manufacturer are varied, which requires the line to be set-up, and changed, depending on the What are Operations? products in production. Operations are purposeful activities done methodologically as part of a work plan Job shop manufacturing designed to achieve the pre-decided objectives. The humble manufacturer’s choice of manufacturing process management, which Operations management is pretty similar to utilizes workshops and separate production production management, but is the day-to- day areas to allow for bespoke product. running of the business, ensuring operations and production within the business are carried Batch manufacturing out efficiently and smoothly — this also includes Batch manufacturing allows manufacturers to handling administrative, factory-level, and make products in the necessary number of service management. batches needed to satisfy customer demand. Functions of Operations Management Continuous manufacturing Strategy. From raw inventory management to Another manufacturing process runs 27/7, routing manufacturing, under operations although this process deals with raw materials management, you’ll need to develop plans and such as gasses, liquids, powders, or slurries, tactics that will help you achieve lean inventory including areas like mining, where the products and a smooth production flow to get a can be more granule. competitive edge over your competitors. Product design. Here is where you should Functions of Production Management Systems investigate if your product caters to the need of Production Control Service the customers and follows the market trend. This is where you’ll monitor production to make Yes, your product may have survived the sure everyone is executing the correct plans in prototype stage, but people’s needs and wants the manufacturing process. The purpose is to change, and you need to be ready to adapt your react quickly if things deviate from the plan and product with those shifts in manufacturing make sure everything is running smoothly. trends and predictions. Forecasting. Demand planning will allow you Scheduling to understand how your product is performing A critical function in any business. Production in the marketplace, and decide on how to scheduling is when you plan when production proceed, be that increasing, decreasing, or even will start and finish during a project run. stopping production on a product. Cost and Quality Control Production management – monitoring and The aim of this is to produce the highest quality managing the manufacturing of products product at the lowest possible cost. Not just by saving money for your business but by offering  Operations management – the services which Transformation Processes are on offer to the customer and work that A transformation process is any activity or group needs to be done to finish production of activities that takes one or more inputs, transforms and adds value to them, and Implementing Production Management provides outputs for customers or clients. 1. Production Planning Essentially this will be your master production Transformation Processes includes: schedule. As the manager, you’ll need to decide changes in the physical characteristics of where, when, and how production will start. materials or customers changes in the location of materials, 2. Production Control Service information or customers This is where you’ll focus on quality, and costs, changes in the ownership of materials or and shop floor control. information storage or accommodation of materials, 3. Improving operations and productions information or customers management changes in the purpose or form of information The final stage of production management changes in the physiological or psychological and operations is the development of more state of customers efficient methods of producing the firm’s goods and services. Macro and Micro Operations That’s a breakdown of what is production management and its definition, so let’s now The micro operations include: move on to its counterpart, operations milling the malted barley into grist management. mixing the grist with hot water to form wort cooling the wort and transferring it to the Why is production and operations fermentation vessel management important? adding yeast to the wort and fermenting the 1. Accomplish business objectives liquid into beer By performing your production and operations filtering the beer to remove the spent yeast analysis, you’ll be able to achieve business decanting the beer into casks or bottles. objectives by efficiently producing goods and services that meet the needs of the customer. 2. Boost brand image Important for D2C manufacturers, with production and operations analysis, you’ll be able to raise your reputation as a business that delivers quality products and fair prices. 3. Reduce manufacturing costs Essentially, a production management system is to achieve lean manufacturing. By optimizing your manufacturing output, you can expect to lower your manufacturing costs either by not having resources waiting idly by or figuring out the best way to keep inventory, such as using ABC inventory.