Chapter 1

The development of industrial management

Introduction

Before the industrial revolution inhabitants worked with hand

tools, made at their own homes. In the third quarter of the 18th
century steam power was applied to machinery, and people and
machines were brought together under one roof in factories, where
the manufacturing process could be supervised. This was the
beginning of shop management. In the next hundred years factories
grew rapidly in size, in degree of mechanization, and in complexity
of operation. The growth, however, was accompanied by much waste
and inefficiency. In the United States many engineers, spurred by the
increased competition of the post–civil war era, began to seek ways
of improving plant efficiency.

Industrial management also involves studying the performance

of machines as well as people. Specialists are employed to keep
machines in good working condition and to ensure the quality of 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 for
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.

The principles of scientific management have been gradually

extended to every department of industry, including office work,
financing, and marketing. Soon after 1910 American firms
established the first personnel departments, and eventually some of
the larger companies took the lead in creating environments
conducive to worker efficiency. Safety devices, better sanitation,
plant cafeterias, and facilities for rest and recreation were provided,
thus adding to the welfare of employees and enhancing morale. Many
such improvements were made at the insistence of employee groups,
especially-labor-unions.

Over the years, workers and their unions also sought and often
won higher wages and increased benefits, including group health and
life insurance and liberal retirement pensions. During the 1980s and
1990s, however, cutbacks and downsizing in many American
businesses substantially reduced many of these benefits. Some
corporations permit employees to buy stock; others make provision
for employee representation on the board of directors or on the shop
grievance committee. Many corporations provide special
opportunities for training and promotion for workers who desire
advancement, and some have made efforts to solve such difficult
problems as job security and a guaranteed-annual-wage.

Related Studies of Worker Performance

The first sustained effort in the direction of improved

efficiency was made by Frederick Winslow Taylor , an assistant
foreman in the Midvale Steel Company, who in the 1880s undertook
a series of studies to determine whether workers used unnecessary
motions and hence too much time in performing operations at a
machine. Each operation required to turn out an article or part was
analyzed and studied minutely, and superfluous motions were
eliminated. Records were kept of the performance of workers and
standards were adopted for each operation.
Modern Trends

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 Modern technological devices, particularly in the areas of
computers, electronics, thermodynamics, and mechanics, have made
automatic and semiautomatic machines a reality. The development of
such automation is bringing about a second industrial revolution and
is causing vast changes in commerce as well as the way work is
organized. Such technological changes and the need to improve
productivity and quality of products in traditional factory systems
also changed industrial management practices. In the 1960s Swedish
automobile companies discovered that they could improve
productivity with a system of group assembly. In a contrast to older
manufacturing techniques where a worker was responsible for
assembling only one part of the car, group assembly gave a group of
workers the responsibility for assembling an entire car.

The system was also applied in Japan, where managers

developed a number of other innovative systems to lower costs and
improve the quality of products. One Japanese innovation, known as
quality circles, allowed workers to offer management suggestions on
how to make production more efficient and to solve problems.
Workers were also given the right to stop the assembly line if
something went wrong, a sharp departure from U.S. factories. By
carefully controlling the manufacturing process, Japanese managers
were able to cut waste, improve productivity, and reduce inventory,
thus significantly reducing costs and improving quality. By the early
1980s, Japanese companies, which had once been criticized for
producing for producing low-quality goods, had established a
reputation for efficiently producing high-quality, high-tech products.
In the 1980s and early 90s many U.S. companies looked to increase
their competitiveness by adapting Japanese methods for improving
manufacturing quality.

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 The term industrial management came into use in the United
States around the turn of the twentieth century, when the industrial
revolution dramatically shifted methods of generating output from
craftsmanship to mass production and automation. Massive
centralized production facilities, like those of the Ford Motor
Company, Bethlehem Steel, and Western Electric, brought with them
the unprecedented need to understand work that had become
increasingly complex. To bring some measure of control and
discipline to the industrial behemoths, such luminaries as Frederick
Taylor, Henry Ford, and Frank and Lillian Gilbreth developed
"scientific" methods of observation in factories. The term "scientific"
brought a patina of respectability to a field of study, which by its very
nature contained some measure of dehumanization with regards to
work methods. Frederick Taylor sought the "one best way to
manage" by systematically recording the time to perform work
elements that comprised a laborer's repetitive movements, while the
Gilbreths developed "time and motion" studies. Henry Ford is
credited with institutionalizing division of labor in factories with his
development of the assembly line, an innovation that dramatically
reduced the time it took to produce an automobile.

Little attention was paid to the motivational content of work

until the accidental discovery of the importance of human relations
by the Hawthorne studies from 1927 to 1932, research supervised by
Elton Mayo. While conducting productivity studies at Western
Electric, Mayo demonstrated that workers' efficiency depended on a
wide range of relations within groups as well as on compensation.
This finding led to an eventual split in the study of industrial
management, with one branch emphasizing an understanding of
organization theory and behavior and the other emphasizing the
mechanics of production, also known as operations. While science
continued to provide the basis for academic studies of both branches,
the practice of management was increasingly recognized as a
complex set of knowledge and skills. Later, increased specialization

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of management talents led to the dissipation of comprehensive
studies in industrial management, with more attention paid to
specialties like financial management, human resources management,
and operations management.

Following World War II, many of the dehumanizing aspects of

factory life were a leading concern of both union movements and
studies to improve quality of work life. Work design and socio-
technical approaches to work became the focus of industrial
management. By the 1960s, however, the U.S. economy had shifted
to a service economy, with more than half of the labor in the country
employed in services. This shift was to be followed by the
information revolution and extraordinarily high rates of global
competitiveness, changes that had dramatic impacts on work content.
The term "industrial management" became increasingly irrelevant as
the nature and content of work shifted to computerization and other
spheres of the economy.

In the early twenty-first century, the segment of management

that seeks improvements in efficiency and productivity is known as
service and operations management. Its most recent developments
include integrated methods of management that contain elements of
programmable technology, quality improvement, just-in-time
delivery, lean production, and supply chain management.

Major Stages of US Economic Growth

In 1976 the United States of America celebrated its 200th
anniversary from its birth to now country has passed through period
of hardship and prosperity, war and peace, insecurity and confidence,
but with majority came the powerful industrial muscle needed to
support its stature as world leader.

1. Colonial Industries

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 The earliest manufacturers resolved wholly around
the problem of subsistence in a raw unsettled country.
Example: Food, agriculture, lumbering, and
shipbuilding.

2. Exploitation Of Natural Resources

From 1800-1860, it centered largely about the
manufacture of goods to meet the demand of a fast growing
population of natural resources opened up by sellers
moving westward.

The protected tariff encouraging home manufacturers

was enacted in 1816, and the same year National Bank was
set up for the further development of American Sources of
Capital credit.

3. The Factory System

The factory system brought the several processes of
manufacture under one roof centralized the use of power
introduced specialized tools and hired workers for fixed
wages and hours.

The growth of industry during this period was

specially marked by technological developments:
1. The great increase in inventions of products and
processes.
2. The wider use of steam engines as prime movers.
3. The application of mechanical science to
industrial processes.
4. Greater specialization in tools.
5. Machines.
6. Labor

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 The development opened up larger possibilities for
further expansion of the principle of the factory system –
integration of industrial processes and combination of
enterprise.

4. The Spread Of Scientific And Technology

1. By the science of time and motion studies.
2. By the scientific arrangement of materials.
3. By the standardization of products.
4. By the resign of factory buildings.

5. The socio-economic revolution

Precedent in previous and parallel case serving as an

example. The federal government intervened in the
economy on an unprecedented scale. The federal
government intervened in agriculture, industry, finance,
state and local affairs, and for the health, welfare and
security of the people. It put the force of government
behind the union organization of labor and took an active
past in labor management relations.

The federal government aimed at economic recovery

and reemployment, its major accomplishment was to
establish social-welfare measures so far-reaching as to
amount to socio-economic revolution.

International Expansion and Domestic Consolation

A significant portion of the national budget was allocated to
military expenditures for the cold war in 1950’s; these expenditures
increased during the next decade for the hot warm in Vietnam and
were still large in the 1970’s at the same time foreign and sent huge
quantities of foods, buildings, and military supplies to any countries.

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 Social obligations of American industry were affected in the
1960’s and 1970’s by legislation and changing public expectation.

The significant influences are as follows:

1. Safety and health standard were established and enforced by
new government agencies.
2. Laws designed to protect the environment caused major
expenditure by corporation and municipalities to limit or to
correct pollution of water, air, and land.
3. Group with ecological concerns successfully aroused public
opinion to oppose both government and industrial activities.
Products such as supersonic transport were terminated in the
development stage, and ecological safeguard were insert in
projects, such as the Alaska pipeline.
4. Class-action lawsuit and consumer advocates force more on
attention on the quality of products, their repair, and how
they were advertized.
5. Efforts to eliminate discrimination due to sex, color creed,
age, and physical/mental disability resulted in modification
to personnel and facilities.
6. Workers expectation for more satisfying jobs, in conjunction
with legislative actions, frequently expected more pleasant
work places and innovative management practices.

Definitions

Industrial Management is a branch of engineering that deals

with the creation and management of systems that integrate people
and materials and energy in productive ways industrial engineering
applied science, engineering science, technology, engineering - the
discipline dealing with the art or science of applying scientific
knowledge to practical problems; "he had trouble deciding which
branch of engineering to study"

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 Industrial management" is a kind of applied science;
engineering; engineering science; technology (the discipline dealing
with the art or science of applying scientific knowledge to practical
problems).

Industrial management, in its most comprehensive meaning,

refers to the systematic management of all aspects of the factory, and
more specifically, to early studies of production efficiency known as
scientific management.

Industrial management, term applied to highly organized

modern methods of carrying on industrial, especially manufacturing,
operations.

Industrial management in the Philippine sitting centers on the

basic principles of organization, aspect of management that shall
evolve on the 5M’s of Management namely: Manpower, Market,
Money, Materials & Machines/Physical Facilities. Industrial
,management deals also in an employee - employer relations, with
industry-government relations and industry-community relationship.
(TUP-1998).

Management: Its need and the Organization.

All in our lives, e are all members of one organization or

another. Like a college, a sports team, a musical or theatrical group,
a religious or civic organization, a branch of the arm forces, or a
business. Some organizations like the army and large corporations
are structured very formally. Other, like the neighborhood basketball
team, are more casually structured. But all organization formal or
informal are put together and kept together toward by a group of
people who see that there are benefits available from them working
together toward some common goal (Stoner, Freeman & Gilbert Jr.
1999).

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  Organization. Are two or more people who work together
in a structured way to achieved a specific goal or set of
goals.

 Goals. Its purpose that an organization strives to achieved,

organization often have more than one goal,. Goals are
fundamental elements of organization.

 Management is the practice of consciously and

continually shaping organization. Management is the
process of planning, organizing, leading, and controlling
the work of organization members and of using all available
organizational resources to reach stated organizational
goals. All organization have people who are responsible
for helping them achieved their goals. These peoples are
called managers. These managers – coaches, conductors,
sales executive – may be more obvious in some
organizations than in pothers, but without effective
management, organizations are likely to fonder.

Why study organization and management

Organization have profound effects on our lives and our future.
Your conversation with friends, parents, classmates, and co-workers
are probably filled with talk about organizations such as colleges,
musical ensembles, athletic teams, and companies where you work.

There are three compelling reasons why for studying them and
the practice of management: is an organization that is particularly
focused on the present as it offers assistance to specific groups of
people in times of need (Stoner, Freeman, & Gilbert Jr.)
1. Living in the present. The organization contribute to
then present standards of living people worldwide. We
rely on organizations daily for food, shelter, clothing,

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 medical care, communications, amusements, and
employment, i.e. the Red Cross is an organization that is
[particularly focused on the present as it offers assistance to
specific groups of people in times of need.
2. Building the Future. Organization builds towards a
desirable future/and help individuals do the same. New
products and practices are developed as a result of the
creative power than can emerge when people work together
in organization.
3. Remembering the Past. Organization help connect
people to their past. Organization can be taught as a pattern
of human relationships. Organizations maintain records
and value their own history, keeping traditions alive in our
minds and thorough records and history of the
organizations that we know about the past.

Industrial organization is a field of economics that studies the

strategic behavior of firms, the structure of markets and their
interactions. The study of industrial organization adds to the perfectly
competitive model real-world frictions such as limited information,
transaction cost, cost of adjusting prices, government actions, and
barriers to entry by new firms into a market. It then considers how
firms are organized and how they compete.( Carlton and. Perloff)
Perhaps a most appropriate term is the "Economics of Imperfect
Competition". The development of industrial organization as a
separate field owed much to Edward Chamberlin, Edward S. Mason
and Joe S. Bain.

There are two major approaches to the study of industrial

organization: the first approach is primarily descriptive and provides
an overview of industrial organization. The second, price theory, uses
microeconomic models to explain firm behavior and market
structure. (Carlton and Perloff).

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 According to the structure-conduct-performance approach, an
industry's performance (the success of an industry in producing
benefits for the consumer) depends on the conduct of its firms, which
then depends on the structure (factors that determine the
competitiveness of the market). The structure of the industry then
depends on basic conditions, such as technology and demand for a
product.( Carlton and. Perloff) For example: in an industry with
technology that the average cost of production falls as output
increases, the industry tends to have one firm, or possibly a small
number of firms.

Basic components that make up the structure, conduct, and

performance model for industrial organization.
1. Basic Conditions: This includes the consumer demand,
production, elasticity of demand, technology, substitutes, raw
materials, seasonality, unionization, rate of growth, product
durability, location, lumpiness of orders, scale of economies,
method of purchase, and scope economies.
2. Structure: This about the number of buyers and sellers,
barriers to entry of new firms, product differentiation, vertical
integration, and diversification.
3. Conduct: This covers about advertising, research and
development, pricing behavior, plant investment, legal tactics,
product choice, collusion, merger and contracts.

4. Performance: This includes the price, production efficiency,

allocative efficiency, equity, product quality, technical
progress, and profits.
5. Government Policy: This all about the regulation, antitrust,
barriers to entry, taxes and subsidies, investment incentives,
employment incentives, and macroeconomic policies.

The management process

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 This management process lies on the four specific functions of
managers in a) planning, b) organizing, c) leading, and d)
controlling(Stoner, Freeman & Gilbert Jr. 1999): .

Process is a systematic way of doing things. This is applicable

to management as process to emphasize that all managers regardless
of their particular aptitudes or skills, engage in certain interrelated
activities in order to achieved their desired goals.
1. Planning – implies that managers think through their goals
and actions in advance and that their actions are based on some
methods, plan, or logic and give the organization its objectives
and set the best procedures for achieving their goals.

There are three planning guides:

1. The organization obtains and commits the resources
required to reach its objectives.
2. Members of the organization carry on activities
consistent with chosen objectives and procedures.
3. Progress towards the objectives is monitored and
measured so that corrective actions can be taken if
progress is unsatisfactory.

2. Organizing – is the process of arranging and allocating work,

authority and resources among an organization’s members so
they can achieved the organization’s goals. Different goals
require different structures. Relationship and time are central
to organizing activities.

3. Leading – involves directing, influencing and motivating

employees to, perform essential task. Managers lead in an
attempt to, persuade other to join them in pursuit of them
future that emerges from the planning and organizing steps.

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 4. Controlling – the function of the manager must be fact move
the organization toward its stated goals and it involves the
main elements:
a) Establishing standards of performance;
b) Measuring current performance;
c) Comparing this performance to the established
performance;
d) Taking corrective actions if deviations are detected.

In controlling the activities its needs relationship and

time because managers worry about control is that over time,
the results of organized relationships do not always work out
as planned.

Manpower development

Basically manpower development involves the instituting

of an improvement in behavior or potential behavior and occurs even
if no effort is made toward a formal development program, for
employees who observed business activities, read about them and
participate in them are developed as a natural consequence.

Likely, this manpower development need the four process

of management (planning, organizing, leading and controlling) to
achieved the goal and objectives of the organization. This is also
accepted as the part of manager’s job, many medium and large firms
have found it advantageous to install formal manpower development
programs to place special emphasis on this area.

Manpower development must be continuous process in any

enterprise which is to survive and be very effective. Most authorities
in the field of management recognize the development of
subordinates to be inherent function of any managerial position.
Although each individual govern his own progress, organizational

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superiors should be directly responsible for the development of their
subordinates. These supervisors is in a the key position

Human resources is an invaluable and vital asset of any nation.

In its raw state, however, it is incapable of generating rapid
development and progress. This is the reason why through the years,
a greater deal of attention has been directed toward manpower
development. In fact, it represent one of industries preoccupation
today in an attempt o meet the needs of a changing society.

Human creativity is resources we can at least afford to waste.

First, employers and employment and candidates – their
qualifications and growth potential; and second; the real honest,
validated needs of the position to be filled. Those two concepts, the
resources on the one-hand, and the needs on the other hand – are
ultimately critical to the success of business enterprise.

Manpower development is accepted as an inherent part of a

manager’s job, many medium and large firms have found it
advantageous to install formal manpower programs to place special
emphasis on this development. It is important that its need be
recognized before problems of inadequate manpower development
catastrophic.

Gearing development to needs

A number of basic concepts can be cited for use in guiding the

development should be base upon needs. The fulfillment of the
various jobs and personnel evaluating, to determine the abilities of
one’s employees and prospective employees.

Gear development activity to needs is essential that one

recognized individual difference. On the major criticism leveled one

15
recognized individual program is that may applied to heterogeneous
groups indiscriminant.

Development is a matter of self development. John Dewey

recognized long ago that acquisition of knowledge and skill is a
personal matter price since nobody learns unless he wants to learn.
Note the differences between teaching football and mathematics.

The role of the supervisor in manpower development

Most authorities in the field of management recognize the

development of subordinate to be an inherent function of any
managerial position. Although each individual governs his own
progress, organizational superiors should be directly responsible for
the development of their business. Each immediate supervisor is in
key position with regard to manpower development.

 The approach to instructing

During World War II, the council of National defense
sponsored a programmed known as training within industry
(TWI). This program was designed in recognition of the fact the
most training had left to those with little knowledge of, or
ability in the training.

 Four steps under the TWI

1. The trainee is pit at ease and interest is the gals in
cultivated.
2. Involves the actual presentation, in which each aspect of
the gal is demonstrated slowly, explained and review.
3. The trainee tries to apply what he has observed the
instructor, ask question during this stage and observed the
trainees performance on the job tactfully correcting him and
reviewing previous demonstrations.

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 4. Is a follow up seep, during this shapes, the trainee is path
on his own and told were to go for help if he needs it.

 Subject matter for development programs

The subject matter covered the only development
programs should depend only the type of enterprises, the
ability of each trainee, and the level of ability which each
trainee is expected to achieve. This includes information on
such general matters as company history, policies, and rules
service and products, philosophies and objectives.

Most employees should be acquainted with the location

and purposes of the various department, process sequences,
distribution outlets and branch plants.

Manpower Planning
Planning for the men you need starts with sales forecast
which list what the sales department expects to sell products by
products and months by months ahead and for classes of products for
six months more. As time passes, new future months are added so
hat the forecast always covers the same period ahead.

Division of labor
Division of labor, in economics, separation of the work
involved in production and trade into processes performed by
different workers or groups of workers. The separation may occur on
several bases, the most frequent being geographical, or territorial and
occupational.

Separation of the productive process into individual

operation, each performed by different groups of workers is called
occupational, or technical, division of labor. For example, the
automobile consist of thousand of parts, each requiring a number of
distinct manufacturing processes. Many of these parts are

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manufactured in plants devoted solely to the production of those
particular items; within these plants the productive processes is
divided among different groups of workers, each of whom has a
specialized task to perform. The major advantage of the technical
division of labor is greater productivity, which results from several
factors. The most important are a marked increased in individual and
collective efficiency due to specialization and the increased in skills
that specialization provides; economy in training of workers,
especially with respect to time; economy resulting from the move
from processes to process; and the development of highly productive,
specialized tools, machinery and equipment.

Selling and implementing manpower development

programs
“Manpower Development” must have the active port of
personnel involved if they are to be successful. “Programs” are
accepted merely is necessary evils are destined to be relatively
inflective, which cam be staffing problems regards to changing
products, policies, legislation, and problems of the inabilities of those
who presently and staffing the organization.

A) Evaluating Manpower Development

Closely associated with the gearing of development to needs is
the evaluation of cost and benefits of development programs. On the
other side of the ledger one tries to increased output and reduction in
waste, scrap, accident, turnover, sentefism, and the length of time
taken for new employees to become proficient.

“The phase of manpower development” which has been

given management development thorough the country authorities on
the subject gather to discuss what they have their companies and the
fact that they like their grams.

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B) The Management Control System
The management control system is a logical of techniques to
gather and use information to make planning and control decision, to
motivate employee, behavior, and to evaluate performance.

C) The Purpose of A Management Control System Are:

 To clearly communicate the organization’s goals.
 To ensure that managers and employees understand the
scientific actions required of them to achieve organizational
goals.
 To communicate result of actions across the organization.
 To ensure that the management control system adjust to
changes in the environment.

There are four major ways of ensuring continues improvement

in modern executive management development, they are:
1. Off the job training – attendance and participation in
executive development.
2. Executive job enlargement – organization planning
provide large management experience.
3. Group management – opportunity to share in more and
large decisions.
4. Staff counseling – good grasp of management functions.

Four Kinds Of Participative Function:

1. Problem solving & counseling – almost every staff specialist
uses this kind of approach.
2. Confidant counseling – sympathetic and understanding ear of
the staff.
3. Value counseling – staff are alert and skillful.
4. Personal counseling – specialist helps the executive to grow
personally.

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Executive Development Programs
It maybe stated, in this connection, that it is dangerous to be
more concern with developing a good program than with good
management development.

There are four major techniques in executive development

programs such as job description, replacement inventory, executive
appraisal, and executive training.

Elements of Management Development

Occurs in every type of business organization, consciously or
unconsciously. The essential elements of a comprehensive program
for management development are: a) performing a natural course of
staffing and directing an organization; b) functions performed in
building and administering any organization of people is also an
element towards the improvement of the enterprise.

Specialist Management – a by product of structural

development.

Management Succession – a progressive company conscious

of the need to stay on top, is always concerned with the problems
relating to expansion and managerial succession.

Individual Development, Objectives – has been attach to ideas

and programs as a means of making them more marketable.

Goals of Management Development

1. Management development is concerned with the performance
of the management function.

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 2. Management development seeks to provide a reserve of
qualified managers capable of insuring a continuity of
performance of the management functions.
3. Satisfactions of the desires and needs of members of the
organization.

Decentralization – another current trend which contributes to the

recognition giving to management development through the
establishment of semi-independent units.

Operation Research – aid to management development, termed

as O.R., for short through this, management can solve some of its
specific tangible problems with greater than ordinary precession.

Supervisory Management Development

As for as staff development is concerned, it is logical to expect
that the manager have the responsibility of providing a healthy
climate wherein aspiring subordinates can achieve the most for the
company and at the same time develop themselves fully.
a) Providing a Career Path – a company should provide a
realistic picture of the “Career ladder”. This includes what
advancement opportunities are open to whom and when.
b) Supervisory Training – top echelon of management provides
supervisory training among its personnel n of the to anchor on
the belief that training for supervisory positions, even where
not needed, can provide positions in which future managers
can apply their ideas, if not to say their expertise.

c) Law of Effect – according to this law’ behavior that appears

to lead to reward tends to be lead to punishment tends not to be
repeated.
d) Supervisory Responsibilities – In Germany the supervisor is
frequently called an “orbiter” – a fore worker and in England
the term “change hand” is used.

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 e) Technical Supervisor – plays a crucial role in subordinates’
career maintenance y giving emphasis to continued
professional development.

Roles And Responsibilities of Supervisors

1. Leader – the supervisor guides and trains subordinates
employees under him.
2. Implementer of ideas – the supervisor puts into action that
will redound and insure the smooth functioning of the
organization.
3. As a co-worker – they join hands with the other members of
the supervisory group in carrying out plans of action in
accordance with the company objectives.
4. Subordinates – subordinates himself, to his superior officers
and others occupying middle and top management levels, he
become subject to their will or authority.
5. Acts at times as mediator – in cases of conflicts, the
supervisor acts as a peacemaker.

How Good A Manager Must A Supervisor Be?

a) Planning – the role looking ahead and formalizing a course of
action both for the immediate problems and those on the
horizon.
b) Action – the decision making process, especially the man-to-
man contacts and direction that gets things done.
c) Control – the process of observing when things are out of line
and taking the necessary action to bring them back under
control.
d) Role playing methods – a dramatic, play-like activity on real
plane, provably as possible to actual job performance.

Advantages Of Role Playing

1. It helps in solving the vexing problems of the transfer of
training.

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 2. As the trainee performs, the trainee can coach him
immediately.
3. Provides an excellent means for fast steps in successful
training, namely the diagnoses of training needs.
4. Effective partly it increases the trainers control of the social
environment in a numbers of ways.
5. Effective role in combating interpersonal relations.
6. It can because accomplish with all group at the same time
what otherwise have to be done individually.

Supervisor’s use of Authority

A supervisor should know the wise use of responsibility and
authority.

Supervisor’s guide to organizational efficiency

Anchored on close harmonious working relationship between
those in top management position and their subordinates:
1. Delegation of authority with responsibility.
2. Checking on overlap.
3. Study if there is overload
4. Reviewing job assignments
5. Observing the pattern of organization
6. Avoiding red tape and bureaucratic complexities

Authoritarian Organization Shortcomings

1. Destruction of initiative
2. Blind flowers are develop
3. Ambitious subordinates leave
4. No room for mistakes
5. Blind loyalty

Working Conditions:
One major factor that directly affects the productivity of
workers is the existing working conditions.

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Education, training and development
A very useful adjunct to development is training which could
take in a number of forms. Education on the other hand, involves the
acquisition of generalized knowledge.

Kinds of Training
1. On the Job Training (OJT) – in experienced worker to do
thw work or job assigned to him while he is under the careful
watch of a foreman, trained instructor or skilled operator.

Is the common approach to manpower development in

business world is that of “On the ob Training”. Buddy system
which new employees work along side skill workers,
observing the practices of these men calling on them for advice
whenever it is needed.

Buddy System used it generally is applied in the training

of the first line operatives. On this point “On the Job Training
has been investigated in terms the mastery most on one
particular job.

2. In-Plant Training (IPT) – the learner practices on equipment

that is set aside from the production line.

3. Vestibule Training (VT) – requires setting up a separate

school in the plant, using batteries of production machines and
some or more full-time instructors.

Is one which is set alongside a regular production area

and in which attempt is made to stimulate an actual production
area and in which on production situation. In a Vestibule
school emphasis is removed from the meaning of immediate

24
 production schedules and place instead on the development of
men.

4. Supplementary Training (ST) - this may found necessary

for brushing up the skills of slow operators, or for training
operators in new skills allied to their jobs.

5. Apprenticeship Training (AT) – usually covers a specified

number of years of instruction and practices in many different
skills of a craft.

Programs constitute another very significant type of

manpower development program.

6. Outside Training (OT) – offered by trade and vocational

schools, using both classroom and shop practice works.

I. Basic economic processes

Major processes cover the material activities of people
in any economics system:
1. The primary raw materials needed in modern economy.
a) The mineral and fuels
b) The grains and other vegetable and animal food
products
c) Cotton
d) Flax
2. There is the process by which materials are
manufactured or convened into different form, i.e. the
Manufacture process carried on chiefly in factory
enterprise. The products turned out here fall into two
general classes:

25
 a) Semi-manufacturers, which are partly, fabricated
good passing from producer to producer for further
processing.
b) Finished goods to be sold to the ultimate consumer.
3. The distribution process by which raw materials and
manufactured goods are passed from producer to
producers to consumers.
4. The furnishing of services in the economy has rapidly
grown to prominence in recent years.

Essence of economic life

People making goods and performing services while in
turn they use the products and benefits by the services by
other. The needs for organizing economic life springs from
the Fact that mans wants are unlimited, but the means of
satisfying those wants are scarce. The material basis of daily
living thus a cooperative cycle of making and using goods
and services.

II. Industrial enterprise

Guided by management, an industrial enterprise
combines land, labor, and capital in variable proportion to
make a producing unit turning out tangible goods.

Land – covers not only “standing room” i.e., physical

location of industrial plant, but also natural resources (natural
raw resources) character of the soil, rainfall temperature, earth
water and other features associated with land.

Labor – includes brainwork, manual work, and the

characteristics of individuals engage in personal services.

Capital – refers chiefly to buildings, tools, machines,

equipment, and materials produced by man and use in further

26
production. In common use, capital often lumps together land,
money, buildings, equipment and materials as being the total
investment in an industrial enterprise.

Industries are divided into broad classes according to the

nature of the industry, the use made of the products, and the
amount of services obtained from the product before it is
consumed or become unfit for further use.

1. Producers-good Industries – are industries

which manufacture materials, machines and
equipment for use in the operations of other
factories.
2. Consumers-goods Industries – are those which
turns out product intended for direct use of people
in daily living.
3. Durable-good Industries – proved services
over a longer period of time.
Example:
a) Dynamo
b) Automobile
c) A watch
4. Nondurable-goods Industries – are used up in
one or a few operations.
Example:
a) Industrial catalyst/fuel
5. Semi-durable-goods Industries – it’s fall in
between.

A. Division of labor and specialization

Division of Labor means dividing up the work on the

principle that different people and different places are best
fitted for different things depending on influencing

27
 stemming from geography, natural conditions, personal
aptitudes and skills.

Specialization – is a refinement of this principle and is

carried further in the manufacturing industries.

Specialization yield enormous benefits in greater

quantities of goods in less time and with less effort, wider
varieties, better quality, less waste, more efficient of land,
labor, and capital, and generally rising standard living.
Specialization has its disadvantages too. It depends upon
the extent of the market flow of goods between markets
(trade) but chiefly it creates a dependence not only with
the economic system and among industries, but among all
department section, processes, and operations with in a
single enterprise which make enterprise (and often the
entire economy, as in depressing) vulnerable to
miscalculation and disruption.

B. Type of Ownership
1. Private ownership – is when an enterprise is so
organized that individuals organized exercises and
enjoy these rights in their own interest.
2. Public ownership – is to any agencies created by the
political bodies, i.e. to municipal state, or federal
government.
3. Mixed business units – may have some private and
some public elements of ownership.
Example: Government owned ships by private
operators.

C. Forms of Ownership

28
 Privately owned industrial enterprise take four basic
forms:
1. Individual proprietorship
2. Partnership
3. Corporation
4. Cooperative organization

The choice of form defends upon a careful

consideration of a number of factors including the
following:
1. Who are promoters and what ideas they hold
towards the several form of organization.
2. The nature and size of the business to be
started.
3. The capital required and the means of procuring
it.
4. The length of time the enterprise ids expected to
operate.
5. Technical conditions affecting the enterprise.
6. Type of products to be manufactured.
7. Methods and volume of production.
8. Kind of markets to be supplied and methods of
marketing.
9. Competitive conditions in the chosen industry.
10. Methods of sharing the benefits and obligation
of the enterprise.
11. The influence that all laws and government
regulation exerts upon private enterprises.

D. Individual Proprietorship and Partnership

Enterprises which are small, require little capital, and

lend themselves readily to control by one or few person
take the form of the individual proprietorship or

29
 partnership. The individual or partnership promotes the
enterprise; gets together the land, buildings machinery, and
labor; and control the actual manufacturing marketing
operation.

Advantages of Disadvantages of
Enterprise Enterprise
Easy formation Insufficient capital
Simple control by the Limited managerial talent
person involved
Direct association with Unlimited personal
operations liability
Flexibility in making Effects upon enterprise of
quick decision and the death of individual
seizing opportunities owners

Some tax advantages

E. Cooperative Organization
The principal theory of true cooperative association is the
elimination of profit the idea being to provide goods and service to
members at cost.

Forms of cooperative enterprise

1. Consumer cooperative – in retail trade and services.
2. Producer’s cooperative – organized group buying and
selling such items as dairy products, grain, fruits, and
livestock for buying producers supplies.

F. Corporation
The corporation is a legally created business unit
with a simple basic structure. It is composed of board of

30
 directors elected by the membership to fix policies, and a
group of top ranking officers chosen by the directors to
manage the companies operations.

G. Corporate Corporation
Legislative corporate corporation usually take form
of the merger and the holding company. In the merger,
one corporation acquires the assets of one of new
corporation. The common procedure informing the
holding company is for the promoters to negotiate with a
number of enterprises and agree upon a purchase price of
each.

Types of corporate corporation combination found

in an American industry:
1. Horizontal Combination – bring together a number of
plants engage in the same or similar activities one
industrial field, such as a chain of bread that is the
baking companies.
2. Vertical combination – join together plants
performing successive function in the chain of
processes of raw material to finishing products.
3. Divergent functions – involved in the joint products,
by products and like processes. In the joint product
groups, the manufacture of any one of the different
products might be discontinued without affecting the
other products as, for example, when butter and cake
are produced from milk. Combination in the by-
product groups defend upon the main products as in the
meat industry were the animal turned into the fresh
meat, give gelatin, grease, soap, animal shortening,
sausage casing, fertilizer, and other products, in
different establishment.

31
 4. Convergent function – the different products are
combined into single products or meet in a common
market.

Public ownership
Public welfare and necessity are the chief reason for the
establishment on the three level of government- federal, state
and local of public owned enterprises.

The two chiefs forms of public enterprises are:

1. The public corporation – organized and chartered like
private corporations.
2. The non-incorporated public enterprises – operated by a
regular department of government or by a special
agency created or the purpose.

III. Controls In A Mixed Economy

A mixed economy – partly private, partly public

enterprise, and partly mixed units in which private
entrepreneurs, government, labor organization, and
institutional bodies join in various undertaking. It is highly
important for management in the future to appreciate how
such a mixed economy controlled.

Control, in the sense here used, means the power to

determine how the resources of the nation are to be allocated
for various purposes. What goods and services shall be
produced in what proportions? Some controls come from the
nature of our institutions, customs, law an processes.

Example of controlling force:

1. Our system of economy
2. Feature individual initiative

32
 3. Private ownership and operation of the means of
production
4. Competitions among producers
5. Among buyers
6. Among sellers

A. The System as a Controlling Force

Freedom to work and produced, competition and

the price system were relied upon to regulate activity and
to ensure balance and equity.

B. Government as a Controlling Force

As part of its function to maintain law and order, the

government had from time to time intervened to alleviate
some of the hasher effects of his relatively free and highly
individualistic economic system.

Government as an active element sharing in the

control of economic operation shows itself in 8 ways:
1. By regulations affecting almost every field of
activity, every enterprise, and every process of
economic life.
2. By deliberate manipulation of the banking and
monetary system.
3. By provision of an elaborate or array of
government services.
4. By considerate participation as promoter,
financer, and operator of large scale public
enterprise.
5. By the commodity controls, purchases, and
other stabilization operation.

33
 6. By the employment of tax action of other fiscal
devices to transfer wealth and income from the
more to the less fortunate groups in the
population through loans, grants, subsidies,
benefits and social welfare services.
7. By the control, almost exclusive in some cases
of economic relation between U.S. and the rest of
the world.
8. By the political action of executive departments
of government allying themselves with special
interest and groups to expand government and
activities.

C. Organized Labor as a Controlling Force

The power labor to exert controlling forces on the

economy can be readily understood when its methods of
operation are stated are listed below:
1. Labor’s traditional economic power to effect
industry through wage, hour, working conditions,
and benefits contract in collective bargaining and
through a variety of strike, slowdown, boycott, and
other work stoppages some capable of permanently
damaging private enterprises and crippling the
national economy.
2. The persuasive effect of most organization upon
industrial policies, standard operations.
3. Labor and political power through alliance with
political parties, influence on voting habits on law –
making bodies at all levels of government.

IV. Industrial Management

34
 The driving force behind every industrial organization is
its management team. Different teams operate in different
ways.

A. Managers
A manager may sit behind a broad disk in a tall, deep
cushioned chair. Another manager sits behind a drawing board
on a tall, stiff stool. These two managers are far apart on the
scale of prestige, yet they have much in common. Their
mission is to plan, coordinate, controls and accomplish.

B. Management Science
Two developments supported the growth of
management science as a distinguished discipline:
1. Operation research teams were composed of natural
scientist, mathematicians, and engineers whose
common language was mathematics.
2. Computers were being developed that could
accommodate the tremendous number of
mathematical manipulations required to utilized the
quantitative models of operations.

Major function of the industrial enterprise

In an industrial enterprise, their function may be divided

broadly into two groups: (1) the policy group and (2) the
administrative group. The policy group, although responsible for the
establishment of policies for all segments of the enterprise, has direct
operating responsibilities for relation with stockholders, external

35
investments, public relations exclusive of customer and vendor
relations, and legal relations both internal and external.

The administrative group includes all other functions,

primarily internal in nature, which operate under broad instruction or
policies established by top management or policy group.

I. Product Development

In some companies, product development plays a vital role.

For example, in the automobile industry, which is highly
competitive, research and design are of special significance.
Furthermore, the nature of the product of the automobile industry,
in comparison with cutter or paper, requires more research and
experimentation. In the later industries, research is essential, but
because the products do not have moving parts and mechanical
gadgets are simpler and more limited.

II. Purchasing

This function encompasses all activities connected with the

procurement from outside vendors of materials, parts, supplies;
equipment and tooling. It usually includes:
1. Procurement
2. Materials
3. Subcontracting

Here again practice will vary in the scope of function.

Often receiving and perhaps storage and internal transportation
may be included in the purchasing function.

III. Industrial Relations

36
 The industrial relations function has had especially
significant growth during recent years, both in scope and in
recognition. The American labor movement and a growing
social consciousness have been strong contributing factors.

Industrial relations consist primarily of six parts:

1. Employment
2. Training and communication
3. Health and safety
4. Employee services and benefits
5. Labor relations
6. Wage and salary administration

IV. Manufacturing

The manufacturing function includes the operations directly

concerned with the making of the product, including the
processing of materials. It also includes various services to these
productive operations. The following, however, are typical of
these manufacturing services:

1. Industrial Engineering – including production planning

and standards and methods.
2. Plant service, including shipping, receiving, stirage, and
internal transportation.
3. Plant engineering, including mechanical engineering,
electrical engineering, tools, power and maintenance.

V. Marketing

The distribution of the product is usually concerned to be of

three parts, that is sales, promotion and service. Service is
essential when the company manufactures a product for which
service by the company is required. For example, a machinery

37
 manufacturer might need to supply service for his product after
installation in the customer’s plant, while a manufacturer of
paper boxes would not.

Promotion is considered a highly specialized activity

requiring personnel qualified or the handling of all types of
advertizing and customer reactions. There is, of course, a
considerable among of effective promotion work performed by
the salesperson in the field. Promotion, therefore, cannot be
segregated entirely from the selling function.

VI. Internal Finance and Office Service

Internal finance and office services actually are two

functions or groups of functions but are frequently grouped into
one for convenience of organization. Often the individual
responsible for the supervision of internal finance is fully
qualified by background and training to supervised the office
services. Then too, the office services, such as stenography,
duplicating, filing, mailing, and control of records and reports are
so closely related to finance that a natural grouping results.
However, it should be recognized that these offices services
extend throughout the organization and are not limited to the
“business office”. In fact, the nature of the business may cause
the major portion of office-service time to be directed toward
operations outside the business office-manufacturing, sales,
industrial relations, and other functions. This often leads to the
decentralization of office services so that each major function of
the organization has its own services.

Perspective – organization mutation

Peter Drucker, the well-known author and management

consultant, warns that traditional structures are no longer adequate

38
for today’s complex organization. Drucker suggest that there are five
organization structure.

Two are in the classical methods:

1. Functional Structures. Each management unit is
associated with a particular function, such as
manufacturing, purchasing, and sales departments within
the company.
2. Product Division. Functional subunits are grouped
according to the product produced in the company, such as
the manufacturing, engineering, and sales groups operating
within a single division of a large company to produce a
certain type of product.

The other three structures are modern variations:

3. Team Organization. Groups comprising several
functional skills are organized to perform specific
assignments
4. Stimulated product division. Related subunits are
artificially treated as separate profit and loss centers, like
real product division, although they are actually segments
of a common, larger process.
5. System Structure. A combination of design 3 and 4
utilized in large government bodies and transnational
companies.

Management structure

The primary purpose of a management structure is to

facilitate the coordination and control over the activities of the
company. There are many factors to consider in determining the
design for a given company. No two companies are identical.
Each company must be studied in terms of its purposes, its size,

39
and the nature of the product manufactured or provided. There
are, however, a few basic principles that can be used fro
guidance in considering the management needs of any company.

 Line of Responsibility and Authority

It is easily recognized that in any sizable organization

there must be delegation of responsibility. In the first place,
it is a physical impossibility for any one person to control
effectively all the work of a large organization through
personal contact with it. Managers must rely on other
individuals to be responsible for designated phases of the
work. Second, no one person possesses the skills essential to
guide personally the highly specialized activities in a modern
industry. Instead, an expert on finance assumes
responsibility for the financial activities of the enterprise. An
industrial engineer analyzes the manufacturing processes of
the company and develops the most efficient methods for
manufacturing a product of maximum quality at minimum
cost. And so, through out the organization, top management
must segregate these highly knowledge and skills to be
responsible for them.

 The Meaning of responsibility and Authority

A famous professor of administration is credited

with a definition of “hell” as responsibility without authority.
Many people, by their actions, seem constantly to seek
authority but evade responsibility must go together . We are
much more willing to agree to the necessity of authority in
doing a job than to accept the resulting responsibilities once
we are aware of the full implications of these responsibilities.

40
 Trends Towards Decentralization of Authority
and Responsibility

Mention has been made earlier of the trend toward

the merger of companies into large multi-plant
corporations. One of the difficulties accompanying these
merger has been the extended line of communication and
action. The headquarters office may be located in New
York City with plants scattered throughout the United
States and even beyond. The products of the plants may be
greatly diversified, motion picture production, airplane-
engine arts, food, chemical, transportation. To what extent
should this corporation attempt centralized purchasing- the
pooling of all purchasing through a single standard of safety
practice? Should it attempt nationwide labor bargaining?
Should it attempt corporation-wide personnel policies and
practices? The same question may be asked regarding all
the major staff functions.

 Available Personnel

The organization of a company is dependent not only

upon the type of arrangement of work in the company but
also upon the special abilities and skills of personnel to
perform the work. The special abilities and skills of
personnel to perform the work. This is especially true in
the establishment of leaders, supervisors, and foremen.

The factors are here especially significant:

(1) the need for close supervision as judge by
the skill of the workers and the difficulty of
the operations;

41
 (2) the availability of experienced and
trustworthy personnel capable of acting in
supervisory capacities.

Operations of a routine, unskilled nature might

require little supervision. In this case a large number of
operators could be grouped together under one supervisor or
foremen. On the other hand, during a period of rapid
expansion when large numbers of new personnel are being
brought into the plant, it is usually advisable to decrease the
number of operators per supervisor in order that each worker
may receive more attention and help in becoming familiar
with the work.

 Lines of Coordinated and Facilitation

Many executives object to the charting of lines of

authority and responsibility for, they say, an organization
does not work that way. Here, a distinction can be made
between authority and facilitation or persuasion. By
authority, people in parallel position are responsible not to
one another but to superior executives. Actually, however,
the majority of problems affecting these two people may
have been solved by mutual agreement before ever reaching
the superior officer. This is merely recognition o the fact
that courteous, informal discussion by individuals nearest a
problem may simplify the solution and avoid extraneous
influences such as misunderstanding and distrust.

Types of organization

It has been stated that details of organizational structure

may differ in terms of the peculiar needs of a given industrial
enterprise. There are, however, four principal organization types

42
with varying degrees of complexity appropriate to the enterprise
in terms of size and type of product. These types are: (1) line or
military organization, (2) line and staff; (3) functional (pure); (4)
line and functional staff.

 Line Organization

Line organization is the simplest from of structure. It

is the framework on which a more complex organization
may be built as needs arise. It assumes a direct straight –
line responsibility and control from the general manager to
the superintendent, to foreman, and to the workers.

Line organization has frequently been refer to as

military organization. It appeared this name through the
fact that there are direct single lines of authority similarly
that might have existed previously between an officer and
his subordinates. However, any similarity that might
existed previously between this form of organization and

43
 the organization of the military services is now outmoded.
Branches of the military service now have special divisions
with horizontal as well as vertical lines of authority and
responsibility.

 Line an Staff Organization

Industrial leaders have recognized, as their companies

grew from simple to complex organizations, that a small
number of executives should not personally assume direct
responsibility for all functions such as research, planning,
distribution, public relations, industrial relations, and the
many other varied reasons.

 Functional Organization (Pure)

The development of staff department led quite

naturally to attempts toward complete reorganization on a
functional basis. This removed the staff specialist from his
“assisting” capacity and gave him authority and

44
 responsibility for supervision and administration of the
function, replacing the operating foreman. The movement
was led by Frederick W. Taylor, a pioneer in what was
known as scientific management.

This type of organization proved to be a failure in the

administration because the workers have multiple bosses,
i.e. one for production preparation and one for inspection,
one for maintenance, etc. At present, this type of
organization has no longer in use.

 Line and Functional Staff Organization

 The functionalized organization of foremen as
advocated by Taylor led to the establishment of
functional staff departments whereby many of the
advantages of both organizations could be retained.
This has come to be known as line and functional
staff organization.

45
 Through this type of organization, functional staff
departments were given responsibility and authority, within
company policy established in consultation with the line
organization, over specialized activities such as inspection,
time study, employment, purchasing, internal
transportation, and shipping. Note that these are service
functions performed by specialized personnel apart from

46
 the lieu operators who are responsible to their line
supervisors.

Committees

In order to facilitate a cooperative relationship within a

large industrial enterprise, many companies now add a network
of committees to the line and staff organization. Committees are
formed for the performance of special duties. These committees
may be either permanent, sometime referred to as standing
committees, or they may be organized to serve a temporary
function only.

 The need for committees

The test of administrators is their ability to act others

to work with them toward a common goal. They should b
free to devote attention to special problems as they arise
and to new developments for the general improvement of
operations. However, if they attempt to dictate quickly the
solution of a problem or the structure of a new project, they
find that they alone must follow it through to completion.
Their subordinates and colleagues are far behind in their
thinking. There is no enthusiasm for the plan. Probably the
most common faults of administrators are their impatience
and reluctance to share the process of planning with those
who must work with them in developing and operating the
project-those who must translate plans into actions.

 Basic principles of committee organization

Committees, like other phases of organization,

should be varied in terms of the needs of a given enterprise.

47
 However, these are at least four basic principles to be
considered:
1. The organization of a committee should grow out of a
need that is recognized by representatives of the
departments and the personnel affected.
2. The personnel of a committee should be representatives
of the function and the personnel concerned and should
be represent variations in opinion among personnel.
3. Duties, authority, and responsibility must be clearly
defined even if, owing to circumstances, they must be
subject to change.
4. The organization and operation of a committee should
be a cooperative development.

 Weaknesses of Committees

The principal weaknesses of committee operation are

that it is (1) slow; (2) waste time; (3) tends to hang on after
its usefulness is over, Slow action and wasted time are
characteristics of a democratic process wherever applied,
but such weaknesses are small price to pay for the values of
pooled judgment, eventual understanding, and agreement.
As for the dissolution of inactive committees, this can be
overcome by clarifying their purpose and fixing a definite
time for their termination. Moreover, recognizing that
action by committees is slow, there are times when
emergencies call for executive action. The wise executive
does not fear or shirk these emergency decisions; at the
same time he knows that they are temporary expedients and
explains his action to the committees.

Functions of personnel management

A. Managerial Function

48
1. Planning
Planning is the initial human resource function involves
deliberate determination of objectives, planning of human
resource requirements, recruitment, selection, training etc. It also
involves forecasting of personnel need, changing values,
attitudes and behavior of employee and their impact of
organization.

2. Organizing
Organizing function is a process by which group of
human being allocates its tasks among its members identities
relationships and integrates its functions towards the
achievement of common goal. It calls designing the structure of
relationship among jobs through delegation of authority,
communication and accountability, manpower planning,
managing job positions and providing physical facilities. Thus
organizing establishes relationships among the employees so
that they can collectively contribute to the attainment of the
organizational goals.

3. Staffing
Staffing includes practice from recruiting, selecting and
establishing workforces for a project, and even firing them when
they are no longer needed. Project planning identifies the
staffing need for the project and once the needs are determined
then the process is set to meet them.

Both the job description and the job specification are

useful tools for the staffing process. Someone (e.g., a
department manager) or some event (e.g., an employee's
leaving) within the organization usually determines a need to
hire a new employee. In large organizations, an employee
requisition must be submitted to the HR department that
specifies the job title, the department, and the date the employee

49
 is needed. From there, the job description can be referenced for
specific job related qualifications to provide more detail when
advertising the position—either internally, externally, or both
(Mondy and Noe, 1996).

4. Directing
Directing as a managerial function involves building
sound industrial and human relations among people working in
the personnel area of organization. It includes leading
motivating, communicating guiding and reorienting personnel
job for their better performance towards accomplishing
organizational objectives. The personnel manager has to
coordinate various managers different levels as for as personnel
functions and concerned.

5. Controlling

Controlling function is concerned with regulating in

accordance with the personnel plans in respect of operating
goals. It includes checking, verifying and comparing actual with
the plans, identifying deviations if any and correcting them.
Thus operations are adjusted to predetermined plans and
standard through taking corrective measures. Auditing, training
programmers, analyzing, labor turn over records, directing
morale surveys, conducting separate interviews are some of the
means for controlling the personnel management function.

B. Operative Functions
l. Procurement
Procurement is concerned with the obtaining of the proper
quality and quantity of personnel necessary to accomplish
objectives and actions of an organization. It also includes the

50
 determination of human resources requirements and their
recruitment, selection and placement.

2. Development
Development deals with increasing the skill and
competence of those personnel through training and other
programs, Management development it future oriented and
concerned with education. These activities attempt to instill
sound reasoning process to enhance one‘s ability to understand
and interpret knowledge - rather than imparting a body of facts
or teaching a specific set of motor skills, Development therefore
focuses more on the employee's personal growth.

3. Compensation
Compensation provides for their adequate and equitable
remuneration in order to secure their best contribution to the
achievement of the organization’s objectives. Fixation of
compensation or wage rates for different categories of employees
in a cooperative society is an important task of management. The
employees are not only concerned with wages received but also
concerned with the level of wages received by same level of
employees in similar societies. The relative wage rules should be
fixed carefully, because they have implications for promotion,
transfer, seniority and other
important personnel matters.

4. Integration
The basic objective of manpower management is to secure
maximum performance from the employees willingly to
accomplish the objectives of an organization, This is possible
through better integration between the organization and its
employees. An effective integration between the two is the
function of three things- motivation, leadership and
communication. In recent years the human relation exponents .

51
 have revolutionized the ways and means of dealing with
employees for greater performance and productivity. Hence,
managerial job has become more complicated and challenging.

5. Maintenance
In refers to maintaining the abilities and attitudes already
created and improving the conditions established through health
safety, welfare and benefits programs.

6. Separation
Separations and return of that person to society could be
retirement, lay off; out-placements and discharge. Determine
percentage of labor turn—over in terms of transfers, resignations
and retirement and identify its underlying causes that will serve as
inputs in policy formulation and enhancement. l. Develop and
continuously evaluate exit interview instruments; 2. Conduct exit
interview for employees about to retire, resign, transfer or separate
from the agency to obtain feedback on how to improve systems
that contribute organizational productivity and performance; 3.
Determine manpower structure and flow situation to provide
personnel statistical data on accession and separation.

Employee development and management

Employee Development-"Human Resource Development" It is

defined as an activity that because or increasing the capabilities of
employees for continuing growth and advancement in
the organization.

Employee development is an attempt to provide the employee with

the ability:
l. to understand cause and effect relationships;
2. to synthesize from experience;

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 3. to visualize relationships: and
4. to think logically

Methods of Employee Development

A. On the job
l. Job Rotation — refers to the process of moving an employee
from one position to another on a systematic position.
2. Assistant to position – assessing the head of the division in
the workflow.
3. Mentoring - this method where a senior employee sponsor
and support a less experienced employee.
4. Special Project - a complementary project which are not
included in the regular plans and budget but of important to the
industry.
5. Committee Assignment – composition of employees to
different organizational set-up but have independent committee
assignment.

B. Off the job method

l. Formal Education
2. Outdoor Training

Requisites for successful employee development

1. Top Management Support
2. Development Interrelationship

The interrelationship between development and other activities

Organizational Development (OD) defined as that port of HRM that
deals with facilitating system wide change in the organization.

Organizational Development maybe describe as:

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 l. It is long - range effort
2. the purpose of Organizational Development are:
a. to improve the way problem are solved in the
organization and
b. to make the organization self renewing
c. it is especially concerned with the work groups and how
to improve their effectiveness and efficiency
d. it makes use of applied behavioral science and action
research

Component of organizational chart

l. Sensitivity of Training
2. Process Consultation
3. Survey Feedback
4. Team Building
5. lnter-group Development

Types of organizational development interventions

1. Technical Intervention - are alterations mode of physical
aspects of a company or its organizational structure.
2. Administrative interventions - refers to improvements in the
organization’s administrative procedures, policies, and long-
term objective.
3. Social interventions

Career management

Career — patterns of work related experiences-that spun the course

of a personal life.

Career Development- process designed by the organization to assist

employees in managing their careers.

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Career Development System : used to implement career
development.
defined as system of processes and practices
designed to link on individual employees career
goals with the organization’s HR needs meet its
business objectives.

Two Important Aspects of a Career Development System:

a. Career Planning by Employees -process where the individual
sets
b. Career Management of high potential people

Components of career planning system:

a. Self Assessment - activities where top employees determined
their jobs interest, values, aptitudes and behavioral tendencies.
b. Reality Check - a part where the employees are informed by
company, given their skills and competencies.
c. Goal Setting
d. Action Planning - employees will determine the way they will
achieve their long term and short term career goal.

Career Cycles:
Characterized by many positions, stages, transitions
experienced by individual employee.
1. Growth Stage
2. Exploration Stage
3. Establishment Stage
4. Maintenance Stage
5. Decline Stage

Making career development more effective

I. Challenging Initial Job Assignment
2. Career Consulting
3. Career Development

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 4. Continuing evaluation and Training
5. Periodic Job Changes
6. Multiple Career Tasks
7. Professional Associations
8. Supportive Environment

Summary

Industrial management involves in studying the performance

of machines as well as people. Specialists are employed to keep
machines in good working condition and to ensure the quality of 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 for
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.

Industrial Management is a branch of engineering that deals

with the creation and management of systems that integrate people
and materials and energy in productive ways. Industrial engineering
applied science, engineering science, technology, engineering - the
discipline dealing with the art or science of applying scientific
knowledge to practical problems; "he had trouble deciding which
branch of engineering to study"

Industrial management in the Philippine sitting centers on

the basic principles of organization, aspect of management that shall
evolve on the 5M’s of Management namely: Manpower, Market,

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Money, Materials & Machines/Physical Facilities. Industrial
management deals also in an employee - employer relations, with
industry-government relations and industry-community relationship.
(TUP-1998).

It has been stated that details of organizational structure may

differ in terms of the peculiar needs of a given industrial enterprise.
There are, however, four principal organization types with varying
degrees of complexity appropriate to the enterprise in terms of size
and type of product. These types are: (1) line or military
organization, (2) line and staff; (3) functional (pure); (4) line and
functional staff.

 Line Organization

Line organization is the simplest from of structure. It

is the framework on which a more complex organization
may be built as needs arise. It assumes a direct straight –
line responsibility and control from the general manager to
the superintendent, to foreman, and to the workers.

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 Line organization has frequently been refer to as
military organization. It appeared this name through the
fact that there are direct single lines of authority similarly
that might have existed previously between an officer and
his subordinates. However, any similarity that might
existed previously between this form of organization and
the organization of the military services is now outmoded.
Branches of the military service now have special divisions
with horizontal as well as vertical lines of authority and
responsibility.

 Line an Staff Organization

Industrial leaders have recognized, as their companies

grew from simple to complex organizations, that a small
number of executives should not personally assume direct
responsibility for all functions such as research, planning,
distribution, public relations, industrial relations, and the
many other varied reasons.

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 Functional organization (pure)

The development of staff department led quite

naturally to attempts toward complete reorganization on a
functional basis. This removed the staff specialist from his
“assisting” capacity and gave him authority and
responsibility for supervision and administration of the
function, replacing the operating foreman. The movement
was led by Frederick W. Taylor, a pioneer in what was
known as scientific management.

This type of organization proved to be a failure in the

administration because the workers have multiple bosses,
i.e. one for production preparation and one for inspection,
one for maintenance, etc. At present, this type of
organization has no longer in use.

 Line and Functional Staff Organization

The functionalized organization of foremen as

advocated by Taylor led to the establishment of functional
staff departments whereby many of the advantages of both
organizations could be retained. This has come to be
known as line and functional staff organization.

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Self assessment question

1. Industrial management involves in studying the performance

of machines as well as
a. people
b. animal
c. tools

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 d. all of the above.

2. Are employed to keep machines in good working condition

and to ensure the quality of their production.
a. Specialist
b. Columnist
c. Mechanics
d. Author

3. Are used for recording the accomplishment of both workers

and machines and for comparing them with established
standards.
a. Charts
b. Diagrams
c. Pictures
d. All of the above.

4. Is a branch of engineering that deals with the creation and

management of systems that integrate people and materials and
energy in productive ways.
a. Aeronautics Management
b. Agricultural Management
c. Civil Management
d. Industrial Management

5. Industrial management in the Philippine sitting centers on the

basic principles of organization, aspect of management that
shall evolve on the 5M’s of Management namely:
a. Manpower,
b. Market,
c. Money,
d. Materials
e. Machines/Physical Facilities.
f. All of the above

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6. Industrial ,management deals also in an employee -
employer relations, with industry-government relations and
a. industry-community relationship.
b. school – industry relationship
c. private sector – relationship
d. public sector – relationship

7. Line organization is the simplest form of structure. It is the

framework on which a more complex organization may be
built as needs arise.
a. Line organization
b. Line and Staff organization
c. Functional organization
d. Line and functional staff organization

8. Industrial leaders have recognized, as their companies grew

from simple to complex organizations, that a small number of
executives should not personally assume direct responsibility
for all functions such as research, planning, distribution, public
relations, industrial relations, and the many other varied
reasons.
a. Line organization
b. Line and Staff organization
c. Functional organization
d. Line and functional staff organization

9. This type of organization proved to be a failure in the

administration because the workers have multiple bosses, i.e.
one for production preparation and one for inspection, one for
maintenance, etc. At present, this type of organization has no
longer in use.
a. Line organization
b. Line and Staff organization

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 c. Functional organization
d. Line and functional staff organization

10. The functionalized organization of foremen as advocated by

Taylor led to the establishment of functional staff departments
whereby many of the advantages of both organizations could
be retained
a. Line organization
b. Line and Staff organization
c. Functional organization
d. Line and functional staff organization

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