Pmt 513: Industrial Management

 THE FEDERAL UNIVERSITY OF TECHNOLOGY, AKURE                                                                      DEPARTMENT OF PROJECT MANAGEMENT TECHNOLOGY

PMT 513: INDUSTRIAL MANAGEMENT (COURSE OUTLINE)

1. Management principles and practice to enhance efficiency in an establishment including management functions
2. Management tools/functions of planning, organizing, controlling, staffing and directing.
3.  Human relations theory
4. Motivation
5. Work groups in an establishment
6. Leadership
7. Human resource management
8. Capital structure
9. Financial and operating ratios to measure efficiency
10. Share/dividend/profit plans
11. Breakeven analysis
12. Budgetary control
13. Market research
14. Product development
15. Group decisionmaking

Industrial management is an academic field that brings together the knowledge of the interactions between business/management and technology/engineering.

Industrial management can also be viewed as the branch of engineering that deals with the creation and management of systems that integrate people and materials and energy in productive ways

Industrial management can still be seen as a field of business administration which studies the structure and organization of industrial companies. It comprises those fields of business administration that are necessary for the success of companies within the manufacturing sector and the encompassing services (primarily operations management, marketing, and financial management).

Graduate programs in industrial management draw on Sloan’s idea and provide engineers with a strategic management education with a focus on production management, marketing, financial management, human resources as well as commercial law – supplemented by corporate governance, corporate social responsibility and sustainability topics. The primary goal is to enable students and professionals to take a holistic approach to industry management.

The course enables students to acquire both a working knowledge of management functions and the analytical skills needed to practice them. Study programs in industrial management are very popular in economies with a high value of manufacturing output, such as the United States and Germany. Especially German research universities incorporate a large number of advanced courses in engineering in their graduate program in industrial management and are, thus, more like M.Eng.- programs. On the other hand, U.S. universities and universities of applied sciences in Germany offer MBA programs in industrial management that follow more the original idea of Sloan and emphasize hands-on application of theory.

In industrial management, all aspects of the factors to achieve production efficiency are systematically managed, which often result in profitability. Therefore, industrial management consists of managerial skills, inventory management/warehousing, purchase procedures, suppliers regulation, total quality management, equipment procurement and maintenance, human resources management, motivation of staff, capital acquisition, distribution channels and marketing to get an output of production and progressive movement of the industry.

 Management on the other hand is the process by which managers create, direct, maintain and operate purposive organizations through coordinated human effort(Mc Farla,d,1979). Management is also defined as individuals engaged in planning, organizing, and directing the efforts of members of an organization and using organizations resources in order to achieve stated objectives. (Huze, 1982). Similarly, Silk(1982) defined management as the coordination of all resources through the process of planning, organizing, leading and controlling in order to attain stated objectives. According to Mary Parker Follet (1868-1933), management is the art of

getting things done through people.

Management is universal. To this end, we have project management, time management, cost management, financial management, church management, risk management, total quality management, transport management, information technology management, human resource management, strategic management, marketing management, engineering management, hotel management, hospital management, operations management, home management among others.   Management takes place in a changing environment occasioned by technological, social, economic, politico-legal and cultural variables.

Evolution of Management thought and Practice

Management is an art of getting things done through people i.e. managers achieve organization goals by arranging for others to perform any necessary tasks.

Management is concerned with organizational activities and its environment which is composed of economic, physical, social, psychological, political and technical structures.  

Management can be defined as the process (it follows a sequence) of coordination (bringing together) of both human, material resources for the achievement of predetermine goals and objectives effectively (doing the right thing i.e achievement of the end result) and efficiency (doing the thing right i.e getting the maximum output with the minimum input) in a world that is ever changing.

Management could be defined management as the act of acquiring inputs of resources of men, money, materials and machine and the processing of such inputs into outputs with a view to meeting organizational objectives.  

Management is also the coordination of human and material resources through the process of planning, organizing, staffing, leading and controlling in order to attain stated organizational objectives in a changing environment occasioned by technological, social, economic, political and cultural variables.

Evolution

Evolution of Mgt refers to history, theories, Era, stages and philosophy of management. The evolution of management can be traced to the industrial revolution. This brought about the formation of industries/organization. Organisation is the coming together of two or more people to achieve a predetermine objectives .This was a period from the 18th to the 19 century where major changes took place in the economic, technological, social system of Europe. The establishment of industries created a rapid movement of people from the farm land (Agriculture) to gain employment in industries (white collar jobs).  This later led to various problems passed by wages and salaries and other conditions of service of the workers which gave workers the impetus to fight for their rights. The trade union was formed as platform for workers to fight for their right. The two major actors in the industrial settings (employee and employer) constantly experienced conflict due to divergent interest. Consequently, this led to the formulation of theoriem

s attempted to study the industrial life and how best to manage the crises.

Theory makes it possible indeed, challenge us to keep learning about our world.

 The Evolution of Management can be classified into three school of management thought

1. Classical School of Management
2. Neo- Classical School of Management
3. Modern School of Management

CLASSICAL THEORY / TRADITIONAL THEORY OF MANAGEMENT

The classical school is the oldest formal school of management thought. Early management writers/theorist attempted to establish of organizational principles that appeared to them to be universal applicable. Many of these theorists were managers. Its roots pre-date the twentieth century. The classical school of thought generally concerns ways to manage work and organizations more efficiently.

Three areas of study that can be grouped under the classical school are

• Scientific management,  
• Administrative management, and
• Bureaucratic management.

The Scientific Management Theory

 Scientific management was introduced in an attempt to apply scientific method to management. This theory arose with the need to increase productivity of workers. It can be defined as the systematic study of work methods in order to improve efficiency. In the late 19th century, management decisions were often arbitrary and workers often worked at an intentionally slow pace, workers and management were often in conflict.

 Frederick W. Taylor was the main proponent and regarded as the father of scientific management. Other major contributors of scientific management include Frank Gilbreth, Lillian Gilbreth, and Henry Gantt.

• Frederick Winslow Taylor analyzed and timed steel workers movements on a series of jobs using time study;
• He broke each job down into its components and designed the quickest and best method of performing each component.
• In this way he established how much workers to do with the equipment and materials in hand, he also encourage employers to pay more productive workers higher rate than others using a “scientifically correct “rate that would benefit both the company and workers.
• Thus the workers were urged to surpass their previous performance standards to earn more pay Taylor called his plane the differential rate system.
• He valued machine more than man and believed that money was the only motivating factor for man. In variably he likened man to machine. He believes there is one best way of doing things. This was later rule out by the law of equi finality (there are many ways of doing things i.e increase sales)

Fredrick W Taylor (1986-1915) rested his philosophy on four basic principles.

1. The development of a true science for every element of a man’s work which replaced the old rule of thumb. i.e  the best method for performing each task could be determined.

2. The Scientific training of workers rather than passively leaving them to train themselves.