1. Industrial Management

MM-2131/TM-4149 Manajemen

Industri

SYLABUS

Introduction to Management and Organization (Week-1, Week-2)

Foundation of Planning and Decision Making (Week-3, Week-4)

Organizational Structure and Design (Week-5, Week-6)

Human Resource Management (Week-7, Week-8)

Motivation and Leadership (Week -9, Week-10)

Managing Operations and Quality Control (Week-11, Week-12)

Case studies (Week-13, Week-14)

Introduction to Management

WHO ARE MANAGERS?

Manager Someone who works with and through other

people by coordinating and integrating their work activities in order to accomplish organizational goals.

MANAGERIAL LEVELS

WHAT IS MANAGEMENT PURPOSE?

Managerial ConcernsEfficiency

“Doing things right” Getting the most output

for the least inputs

Effectiveness “Doing the right things”

Attaining organizationalgoals

WHAT DO MANAGERS DO?

Management Functions

WHAT DO MANAGERS DO? (2) Management Roles

Interpersonal roles Figurehead, Leader, Liason

Informational roles Monitor,

Disseminator, Spokesperson

Decisional roles Disturbance Handler, Resource allocator, Negotiator

WHAT DO MANAGERS DO? (3)

Conceptual Skills The ability to think and conceptualize about abstract and complex situations concerning the organization

Skills Approach

Human SkillsThe ability work well with other people

Technical skills Knowledge and proficiency in a specific field

ANOTHER MANAGER SKILLS

Communication SkillsAbility to transform ideas into words and

actionsCredibility among colleagues, peers, and

subordinatesListening and asking questionsPresentation skills; spoken format, written

and/or graphic formats

ANOTHER MANAGER SKILLS

Effectiveness Skills Contributing to corporate mission/departmental

objectives Customer focus Multitasking: working at multiple tasks in parallel Negotiating skills Project management Reviewing operations and implementing

improvements Setting and maintaining performance standards

internally and externally Setting priorities for attention and activity Time management

WHAT IS AN ORGANIZATION?

An Organization Defined A deliberate arrangement of people to

accomplish some specific purpose

Common Characteristics of Organizations Have a distinct purpose (goal) Composed of people Have a deliberate structure

WHY STUDY MANAGEMENT ?

Universality of Management

The Reality of Work

Rewards and Challenge of Being Manager

DEVELOPMENT OF MAJOR MANAGEMENT THEORIES

Historical Background

Classical Approaches

Quantitative Approach

Behavioral Approaches

Contemporary

Approaches

Egyptian Pyramids and

Great Wall

Adam Smith

Industrial Revolution

Scientific Management

General Administrative

Hawthorne Studies

Early Advocates

Organizational Behavior

Systems Approach

ContingencyApproach

HISTORICAL BACKGROUND OF MANAGEMENT

Ancient Management Egypt (pyramids) and China (Great Wall) Venetians (floating warship assembly lines)

Adam Smith Published “The Wealth of Nations” in 1776

Advocated the division of labor (job specialization) to increase the productivity of workers

Industrial Revolution Substituted machine power for human labor Created large organizations in need of

management

MAJOR APPROACHES TO MANAGEMENT

Scientific Management General Administrative Theory Quantitative Management Organizational Behavior Systems Approach Contingency Approach






Contemporary

Approaches


Great Wall

Adam Smith




Hawthorne Studies

Early Advocates


Systems Approach

ContingencyApproach

SCIENTIFIC MANAGEMENT

Fredrick Winslow TaylorThe “father” of scientific management

Frank and Lillian GilbrethFocused on increasing worker productivity

through the reduction of wasted motionDeveloped the microchronometer to time

worker motions and optimize performance

HOW DO TODAY’S MANAGERS USE SCIENTIFICMANAGEMENT?

Use time and motion studies to increase productivity

Hire the best qualified employees

Design incentive systems based on output






Contemporary

Approaches


Great Wall

Adam Smith




Hawthorne Studies

Early Advocates


Systems Approach

ContingencyApproach

GENERAL ADMINISTRATIVE THEORISTS

Henri FayolBelieved that the practice of management

was distinct from other organizational functions

Developed fourteen principles of management that applied to all organizational situations

Max WeberDeveloped a theory of authority based on

an ideal type of organization (bureaucracy) Emphasized,rationality, predictability, impersonality,

technical competence, and authoritarianism






Contemporary

Approaches


Great Wall

Adam Smith




Hawthorne Studies

Early Advocates


Systems Approach

ContingencyApproach

QUANTITATIVE APPROACH TO MANAGEMENT

Also called operations research or management science

Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems

Focuses on improving managerial decision making by applying: Statistics, optimization models, information models,

and computer simulations






Contemporary

Approaches


Great Wall

Adam Smith




Hawthorne Studies

Early Advocates


Systems Approach

ContingencyApproach

UNDERSTANDING ORGANIZATIONAL BEHAVIOR

Organizational Behavior (OB) The study of the actions of people at work; people

are the most important asset of an organization

Early OB Advocates

Robert Owen

Hugo Munsterberg

Mary Parker Follett

Chester Barnard

THE HAWTHORNE STUDIES

A series of productivity experiments conducted at Western Electric from 1927 to 1932.\

Experimental findings Productivity unexpectedly increased under

imposed adverse working conditions. The effect of incentive plans was less than

expected.

Research conclusion Social norms, group standards and attitudes more

strongly influence individual output and work behavior than do monetary incentives.






Contemporary

Approaches


Great Wall

Adam Smith




Hawthorne Studies

Early Advocates


Systems Approach

ContingencyApproach

THE SYSTEMS APPROACH

System Defined A set of interrelated and interdependent parts

arranged in a manner that produces a unified whole.

Basic Types of Systems Closed systems

Are not influenced by and do not interact with their environment (all system input and output is internal).

Open systems Dynamically interact to their environments by taking in

inputs and transforming them into outputs that are distributed into their environments.

IMPLICATIONS OF THE SYSTEMS APPROACH

Coordination of the organization’s parts is essential for proper functioning of the entire organization.

Decisions and actions taken in one area of the organization will have an effect in other areas of the organization.

Organizations are not self-contained and, therefore, must adapt to changes in their external environment.






Contemporary

Approaches


Great Wall

Adam Smith




Hawthorne Studies

Early Advocates


Systems Approach

ContingencyApproach

THE CONTINGENCY APPROACH

Contingency Approach Defined

Also sometimes called the situational approach.

There is no one universally applicable set of management principles (rules) by which to manage organizations.

Organizations are individually different, face different situations (contingency variables), and require different ways of managing.

ANY QUESTIONS

Documents

1. Industrial Management