INDUSTRIAL ORGANIZATION AND MANAGEMENT (midterm reviewer) AOT

Management – set of principles to achieve goals ROLES OF MANAGER

Engineering Management – application of practice of – set of expectations for a manager’s behaviour
management to practice of engineering
1. Informational: managing by information
 Monitor – gets info
FUNCTIONS OF MANAGEMENT  Disseminator – transmits info in and out
1. Planning – selecting goals and objectives, as  Spokesperson – transmit info to outsiders
well as actions to achieve them
2. Organizing – allocating human and non-human 2. Interpersonal: managing through people
resources for the plan to carry out  Figurehead – handles symbolic activities
3. Staffing – filling and keeping filled positions  Leader – influence and motivates
4. Directing/Leading – influencing people so they  Liaison – representative in seminars
will contribute to the goals
5. Controlling – measuring and correcting 3. Decisional: managing through actions
individual/org performance to ensure plan  Entrepreneur – think innovative changes
 Mediator – resolve conflicts
6 M’s  Allocator – utilizes all resources
Select
o Money  Negotiator – represents team’s interests

o Method Train
o Materials  WHAT MANAGERS ACTUALLY DO?
o Manpower Promote  Unrelenting Pace – always working on the go
o Machineries   Brevity, Variety and Fragmentation – handles a
o Management Retire
wide variety of issues throughout the day
 Verbal Contacts and Networks – builds
MANAGERIAL FUNCTIONS & ORGANIZATIONAL HEIRARCHY
connections to function effectively
 First level (operational managers)
- Responsible for rank and files
Disadvantages:
 Middle level (tactical managers)
- Increase workload
- Responsible for lower levels
- More responsibility/accountability
 Top level (strategic managers)
- Being caught in the middle (friendship and
- Ultimately responsible for whole org
work)
MANAGEMENT SKILLS
Excellent Managers are/have:
1. Conceptual – cognitive ability to see the
o Good communicator
organization as a whole and the relationship
o Flexible
among its parts
o Integrity
2. Human – ability to work with and through
o Focused
other people and work effectively as a member
o Committed
3. Technical – the understanding and proficiency
o People-oriented
in the performance of specific tasks
o Gratitude
5 S OF MANAGEMENT (KAIZEN)
1. Sort – organizing Productivity – measures output relative to input
2. Set – putting labels Effectiveness – doing the “right” things
3. Shine – cleaning Efficiency – doing the things “right”
4. Standardize – establish
5. Sustain – maintaining
Art – “skill in conducting human activity”
Management is both art and science. Science – “any skill that reflects a precise application of
facts or a principle”
 INDUSTRIAL ORGANIZATION AND MANAGEMENT (midterm reviewer) AOT

THE EVOLUTION OF MANAGEMENT THEORY ADMINISTRATIVE MANAGEMENT THEORY

- Late 1890s to 1980
SCIENTIFIC MANAGEMENT THEORY
- 1890 to 1940 Max Weber
- Bureaucracy is the formal system of
Frederick Winslow Taylor organization and administration designed to
- Father of Industrial Engineering ensure efficiency and effectiveness
- Industrial Revolution during 19th century
- Father of Scientific Management WEBER’S PRINCIPLES OF BUREAUCRACY
- Taylor sought to reduce the time a worker  Job Specialization – jobs are divided into
spent on each task by optimizing the way simple, routine and fixed category
the task was done  Authority Hierarchy – officers are organized
- not-people oriented system (inconsiderate) into higher to lower position holders
 Formal Selection – members are selected based
Adam Smith on qualifications & competence demonstrated;
- Father of Economics (18th century) avoiding favouritism and nepotism
- Motivated Wilfredo Pareto’s  Formal Rules and Regulation – must be
[80-20 Principle] (rich vs poor) followed to ensure uniformity and to regulate
- Job Specialization  efficiency & productivity actions of employees
- Craft style – each worker did all steps
Production – each specialized in one step 14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL
- 5 classes: 1. Division of work – job specialization promotes
Class A – rich (only 10%) efficiency, increase productivity, accuracy and
Class B – semi-rich (president, ceo, coo) speed
Class C – eat five meals a day (average) 2. Authority – delegate authority along
Class D – eat 3 meals a day responsibility
Class E – below poverty line 3. Discipline – make expectations clear and
sanction violations (obedience)
Frank and Lilian Gilbreth 4. Unity of command – each employee should be
- Redefined Taylor’s works assigned to only one supervisor
- Time and Motion Studies (Therbligs) 5. Unity of direction – all efforts should be focused
- Studied worker-related fatigue problems on achieving same organizational goals
 efficiency and productivity depends on 6. Subordination of individual interest to general
environmental factors and designs of tools interest – general interest > > personal interest
7. Remuneration – motivation & productivity goes
4 PRINCIPLES OF SCIENTIFIC MANAGEMENT together.
1. In every job, there’s always a best method. a. Non-monetary (compliments, awards)
2. Teach that method. (Standardize it) b. Monetary (bonus, compensation)
3. Management will do the planning. 8. Centralization – determine the relative
4. Workers will do the work or labour importance of superior and subordinate roles
9. Scalar Chain – keep communications within the
chain of command (clear line of authority)
10. Order – employees should have the right
resources and environment to function properly
 INDUSTRIAL ORGANIZATION AND MANAGEMENT (midterm reviewer) AOT

11. Equity – employees must be treated fairly and

kindly
12. Stability of tenure – minimize employee
turnover by orderly personnel planning and
ensuring replacements for vacancy filling
13. Initiative – employees are allowed to express
new ideas to encourage their interest and
involvement
14. Esprit De Corps – promoting team spirit will
build harmony and unity within the organization

APPROACHES TO MANAGEMENT
1. Empirical or Case Approach
- Studies experience through cases
- Identifies successes and failures
2. Contingency or Situational Approach
- Managerial practice depends on
circumstances
- Contingency theory recognizes the
influence of given solutions on
organizational behaviour patterns
3. Mathematical or Management Science Approach
- Sees managing as mathematical processes,
concepts, symbols and models
4. Decision Theory Approach
- Focuses on making of decisions, persons or
group making decisions, and the decision-
making process.

6 TYPES OF MANAGEMENT STYLES

1. Autocratic – make decisions unilaterally
2. Consultative – more discussion, essentially
dictatorial
3. Persuasive – employees will persuade managers
of the benefit of a decision but still the
manager’s decision in the end
4. Democratic - allows employee to engage in
decision making process
5. Laissez-Faire – complete opposite of autocracy;
employees are the majority of decisions
6. Management by walking around – listening to
thoughts of employees; managers are
counsellors, not directors