Chapter One

BASIC MANAGEMENT CONCEPTS AND

INDUSTRIAL ORGANIZATION

1.1 Introduction
Until the end of the Dark Ages, especially until when commerce began to grow in the Mediterranean
regions, no important managerial tools of analysis were developed. Even administrative problems
received more attention than managerial problems.
In the Middle Ages, owing to the fact that the family was the basic production organization,
there was no need for paying a separate attention to managerial activities. It was the industrial
revolution and the inventions of the eighteenth century that triggered a paradigm shift in the way
people manage their business. During this time, the highly developing technology influenced the
production to move from homes to separate places of installations where machinery was concentrated
and labor employed. In the early stages of the Industrial Revolution, owners of factories did not
distinguish between ownership functions and management duties [1, 11].
In early nineteenth century, the need for higher capital to support plants resulted in increased
applications of a special legal form of organizing business. Large sum of money was raised by
corporations through sales of shares of stocks to many individuals. In cases where the family business
was insufficient for expansion, the newly emerging corporation system provided the means of
acquiring finance from other sources. This development made the distinction between ownership
functions and management duties very clear. And this distinction attracted the attention of scholars to
concentrate on industrial management as a distinct field of study. In the United States of America,
late in the nineteenth century, professional associations began to conduct symposiums that triggered
the presentation of technical papers with an emphasis to recognize management as a new sphere of
study.
Frederik Taylor, a pioneer in this field, noticed that managers were supposed to pick up their
management skill through trial and error. But he felt that it was necessary to set up methods and
standards of work and provide a proper wage incentive system for a better production. In his
philosophy the core of scientific management was to rest not on individual techniques but on the new
paradigm of managing an enterprise. Taylor outlined it in four general areas.
The first area was the discovery of basic elements of man's work through the use of scientific
methods. The second pays due attention to the preparation of work plan rather than allowing the
workers to choose their own way of doing things. The third area that Taylor indicated was the
selection and training of workers and the development of corporations. The final area of his concern
was the relations and placement of workers. The division of labor between management and the
workforce should be in such a way that each would perform its duty for which it was best fitted.
The development of management thought is the result of integrated ideas of various
disciplines. It is not the result of the development of a single discipline. Behavioral scientists
developed group dynamics, a new approach to the study of management. Group dynamics deals
with the advantage of group participation. Concurrent with the development of group dynamics,
new meanings of Accounting, Economics and the basic disciplines of business began to have
practical implications for managers. The developments in the field of Statistics proved to be of
great help in handling the problems of uncertainty, which have long caused management a serious
worry. Furthermore, the advancement in computer technology have enabled management to deal
with theoretical questions in a more definite and rigorous manner. During the developments, the
focus of attention has been shifting from one stream to another. In the first thirty years of the 20 th
century the major focus was on the physical factors as viewed from the engineering and economics
points of view. In the next thirty years, i.e., 1930 to 1960 the focus of attention shifted to
ergonomics (human factors) affecting productivity. Along with the development of ergonomics
due attention was given to managerial accounting and classical concepts of personnel and finance.
During the 1960s emphasis was placed on achieving precision through the use of quantitative
methods (mathematics and statistics) and the behavioral sciences (psychology, sociology and
anthropology). Moreover, computers and systems thinking developed rapidly during this decade
as new techniques of management. The trend in the 1970s and 80s has focused more on organiza-
tional behavior. The recent development in management thought highly focused on customer
satisfaction.

1.2 The Meaning of Management

The term ‘management’ or ‘the management’ is commonly used to refer to a group of people who
hold senior or executive positions in enterprises. But the activity of “management” is that aspect
of the work of such people which is concerned primarily with the efforts of the employees of an
enterprise.
Although new and modern methods of management have had to evolve to meet the
challenges of today's demands on government, commerce and industry, management in one form
or another has been practiced since the very beginnings of human society. Since early times man
have banded together and increased their effectiveness by working as a group in hunting and in
growing food, and in other activities aimed at a common purpose. To be effective, such groups
needed leaders-people whose tasks were to plan what was to be done and how, and to direct and
control the efforts of others. Those leaders − whether they were the heads of families or chiefs
appointed to lead tribes − were therefore the first 'managers'.
In many cases the early leaders held their positions and retained their control by forcing
others to obey their commands and indeed, in many instances work was performed by slaves
controlled by overseers armed with whips.
In the 21st century, modern management is − or should be − conducted in a far more
humane manner. It is recognized today that if employees are to give their best, they are more likely
to do so willingly, rather than under pressure; they must still be actively encouraged – or
‘motivated’– to do their best, but not by force nor by the use of threats.
Managerial functions involve making decisions regarding policy, product, market and the
administration of the businesses that are essential to the benefit and expansion of the industry. The
developments and complexities of technology and human relationships are getting more and more
challenging. The chief characteristic of management then, is the integration and application of
knowledge and analytical approaches developed by numerous disciplines to deal with the managerial
function.
In general, ‘management’ identifies a special group of people whose job is to direct the effort
and activities of other people toward common objectives. Management is about getting things done
involving other people by planning, coordinating and directing the activities of an organization. The
decisions and judgments made are normally oriented to the objectives of the total organization and
tend to transcend strict functional boundaries.
1.1.
1.2. 1.2.1 Management Today
After World War II, the world again became interested in manufacturing and selling products. The
success of the Operations Research groups had been so obvious in the military that managers were
anxious to try management science techniques in an industrial environment. After all, managers
had also complicated operational problems.
By 1955, the management science approach to solving industrial problems had proven to
be very effective. Many people found this approach valuable and saw great promise in refining
and sophisticating its techniques and analytical tools. Managers and universities alike began
anxiously these refinement and sophistication attempts.
By 1965, the management science approach was being used in many companies and
applied to many diverse management problems, such as production scheduling, finding a location
for a new plant, and product packaging.
It has been said that management is an art struggling to become a science. Others contend
that the formal study of management began as a science but has been contaminated by too many
factors from various disciplines, thus making it at best a ‘soft’ science. Actually, management is
an eclectic discipline with elements of art and science, as any practicing mangers will confirm. A
much careful thought must be given to the timing and scope of what is done, and how these
methods can progress towards the vision of excellence.
Management science is not so comprehensive or accurate as a physical science such as
mathematics or chemistry. Physical science deals with non human entities. It is the inclusion of
the human element that raises questions in some minds about management qualifying as a pure
science, different people will not think, act, or react in the same manner under identical
circumstances, therefore, management will never become pure science as the physical science, but
great strides have been made in systematizing knowledge and generalizing certain truths, which
will be evident through this chapter. Management is indeed a social science, a term that accurately
describes its true nature.
1.3.
1.2.2 Management Concept for Complex System: Management by Objectives (MBO)
MBO is a dynamic system which seeks to integrate an organization's striving for growth
and efficiency with the willingness of its staff to perform well and to further develop their skills.
Thus, MBO is a management model which is oriented towards good performance, job satisfaction,
and the self-actualization of the staff.
The basic principle of MBO is that it concerns itself primarily with goals and the realization
of goals rather than tasks. It is up to the staff themselves to decide on the means of achieving these
goals.
George Odiornex [4] has explained the concepts as follows:
The system of management by objectives can be described as a process
whereby the subordinate managers of an organization jointly identify its common
goals, define each individual’s major areas of responsibility in terms of results
expected of them and use the measures as guides for operating the units and
assessing the contribution of each of its members.
The main characteristics of MBO can be categorized into three categories:
i) All individuals within an organization are assigned specialized set of objectives that they
try to reach during a normal operating period. These objectives are mutually set and agreed
upon by individuals and their managers.
ii) Performance reviews are conducted periodically to determine how close individuals are to
 attain their objectives.
iii) Individuals are rewarded on the basis of how close they come to reaching their goals.
Thus, alongside the traditional organizational hierarchy, there is always a hierarchy of
objectives as well.

A. The Four Principles of MBO

The principles governing MBO can be given in four steps.
i) The efficient performance of management functions and the effective use of resources
are inconceivable without goals. A distinction usually has to be made between
operative goals (immediate), tactical goals (medium-term) and strategic goals (long-
term). The input of time/resource to achieve the previously set goals must be estimated
accordingly.
ii) The goals for staff and individual organizational units must be derived from higher-
order corporate or administrative goals. They must remain within the framework of the
planning. The ‘targets’ must be ‘planned’ by consensus and must be coordinated both
horizontally and vertically.
iii) The manager's success is thus the result of his/her staff‘s realization of their goals. It is
the manager's job to convert his/her goals into sub-goals for the staff. Stretch goals
must be set to ascertain strenuous efforts.
iv) Goals should always be subject to a time limit. They must be regularly reviewed and if
necessary revised.

B. The Psychological Fundamental of MBO

MBO is based on certain psychological assumptions, which may be outlined as follows:
i) Staff members work more efficiently when they know, understand and can identify
their role with the goals they are expected to achieve.
ii) Staff members will more readily accept the goals demanded of them if they propose
these goals themselves or goals are developed and agreed upon with their approval.
iii) Staff members are happier and work more effectively if they receive regular feedback
from the management. This feedback tells them how much progress they have made
towards goal achievement.
iv) Staff members are more committed when their performance is justly rewarded by
payment, promotion, praise and recognition; and when inadequate performance is not
punished but taken as an opportunity for personal advancement through retraining and
other support.
v) Staff members will work more reliably and independently when they know exactly
what is expected of them, how their performance will be controlled and by what criteria
they will be judged. They must be sure of management support.
It is up to the management of an organization to successfully agree on and constantly
review staff objectives.
Experienced MBO managers say that there are three advantages to this management
approach.
a) MBO programs continually emphasize what should be done in an organization to
achieve organizational goals.
 b) The MBO process secures employee commitment in attaining organizational goals.
c) Since managers and subordinates have developed objectives together, both parties are
highly interested in working together to reach those goals.
Managers also admit that MBO programs have shortcoming. One disadvantage is that
because organization members have developed objectives together, hence they actually have less
time to do their work. MBO programs also seem to generate a large volume of paper work. Elaborate
written goals, careful communication of goals, and detailed performance evaluation naturally
increase the volume of paperwork in an organization.
Most managers seem to think, however, that MBO’s advantages outweigh its disadvantages.
MBO programs are beneficial in totality.

1.3 What Management Strives for

'Management strives involving a group of people work together in the most effective and efficient
manner to achieve stated goals in the best and most economical way'.
Management is a job of work. It is a job which is much more difficult because it involves
dealing not with ‘inanimate’, unfeeling objects, services or theories, but with unpredictable
characters of men and women − each of whom has a different and complex behavior. Management
involves providing leadership for the group of people, and beyond:
 The people in the group require training;
 They require advice, guidance and assistance;
 They need to be motivated to work well and willingly;
 Their efforts needs to be supervised and they need to be controlled; so as to achieve the
stated goal or objective of the enterprise;
 Their work must be so organized and co-ordinated that they work together as a team.
Having used the words “goal” and “team”, let us examine further the aims or objectives of
management using an example with which most people are likely to be familiar− a football (soccer)
team.
Such a team comprises at least eleven different people. But they do not simply walk on to
the football pitch, stand wherever they feel like and start kicking the ball in any directions at
random − if they did that, they would stand little chance of beating their opponent.
Under the direction given by the “team captain” who is one of the eleven players, and/or
the “team manages”:
 Each team member takes up a pre-determined position;
 Where possible the position will be filled with the one which, from prior observation, has
been found to be most appropriate for the particular person's abilities;
 From prior training, each player will have been encouraged to improve his playing skills;
 Each player will know what his role is − what he has to do − in the team, to be an attacker
or a defender, for example;
 Each player will know the rules of the game − what he can and cannot do.
Whenever possible, the members of the team will try to play the game with a plan or
method laid down in advance by their team manager. And their efforts on the field will be
controlled and coordinated by the captain, who will give additional instructions and take on-the-
spot decisions as necessary.
 Because the eleven players are a team, and not just eleven individuals playing separately
with the same ball:
 They will "pass" the ball to team-mates;
 They will try to create opportunities for team-mates;
 And as a group they will play together in coordinated manner to achieve their objectives –
that is to score goals against the opposing team.
By giving guidance and encouragement, the captain and the team manager will motivate
all the team members to do their very best to win.
Now let us relate the foregoing example to a business, bearing in mind that many
professional football teams are run on business lines. In this case:
 The team manager would be the owner of the business or a department or section manager,
who might not actually perform the work concerned, but who must possess considerable
knowledge of that work.
 The equivalent of the team captain will be a supervisor or a foreman or an assistant manager
who, although subordinate (junior) to the manager, will work closely with the manager.
 The other players would be the members of staff (the other employees) of the enterprise or
the section or department of a business.
 The objective of the enterprise, the section or the department might be the production of
an item or the sale of an item or the provision of a service.
The manager and the supervisor must ensure that the members of staff are so organized
and controlled that they work together as a team to achieve the stated objective.
 Each individual employee must know what he (or she) has to do, when and how he has to
do it and - whenever possible or feasible − he should be given the work to do which he is
most suited to perform, and he should be trained to perform that work.
 The work of all the members of staff should be planned in advance and be organized so
that one person is not idle whilst another is overloaded.
 The efforts of all staff should be coordinated so that there will be no holdups or delays. As
it is necessary to ascertain smooth, work flows from one person to the next.
 And, of course, the manager and supervisor must be available and willing to teach or train,
advice, guide, assist and encourage all the employees all the time.
1.4.
1.5. 1.3.1 The Fundamentals of Successful Management
Successful managers do have common characteristics. The key to their success may be
summarized as follows:
i) The ability to take decisions and willingness to take risks: One does not have to take
strategically important decisions every day. Decisions of this caliber call for reserve,
careful consideration and time. No, it is the minor and moderately important decisions
which have to be taken daily and the regular postponement of which leaves and
impression of helplessness and indecisiveness among staff. As a general rule even bad
decisions may be better than none at all. A good manager should make quick decision
even if it turns out wrong at times rather waiting to make sure that the decision made
is correct.
ii) The ability to develop social relationships: What counts is the readiness and ability
to approach people. Unapproachability, even when it is "only" based on one's own
insecurity, leads to an inability to lead others. As a leader, you must have the ability to
 open yourself to your staff. This might also involve having to show emotion (to a
limited degree) and sometimes conveying the impression that, "I am only human". If
you do this, it will be easier for you to accept the faults in your staff and to demonstrate
understanding. A manager who possesses or develops these qualities will soon be able
to establish an atmosphere of trust at work. It is better to use heart and hands rather
always using head.
iii) Composure: Genuine leadership reveals itself in times of stress. It is precisely in
situations where confusion reigns, the emotions are running high and chaos has gained
the upper hand in your team. The calm and self-discipline and self possess are the most
important management qualities. Only the manager who is able to maintain his
composure and keep a cool head in such situations will be truly accepted as a leader by
his staff.
iv) Self-control and self-criticism: It is more important to be able to criticize oneself than
to be able to criticize one's staff. Even the most hectic of jobs allows time for reflection,
i.e. time for introspection and to get to know yourself and your faults. This can be
summed up in the maxim: "Self knowledge is the first step on the road to
improvement". Essential to successful self-control and self-criticism is a willingness to
accept "feedback". Only reports from outside, e.g. from trusted members of staff are
capable of giving you a clear picture of your own situation. In this sense, successful
managers find someone who is capable of filling the role of "court jester". Usually, this
is a highly trusted, long-standing, reliable member or staff who will unreservedly and
honestly tell you how your behavior affects others. These "feedback" sessions should
take place every four to six weeks.
v) The limits of self-realization and the vanity of managers: Every human being is vain
and managers are no different. However, good managers should recognize their vanity
for what it is and be prepared to limit it or eliminate it all together. For instance, you
will appear vain if you overestimate your professional abilities and give the impression
that you know it all already. Anyone who comes to you with a question receives an
answer regardless of whether or not this answer solves the problem.
Another typical attitude in this connection is arrogance combined with an air of
invulnerability. This often manifests itself in over-hasty, disparaging remarks towards
members of staff. Do you treat all the members of your staff equally or are there
differences? Are the members of staff at the lower and middle levels people or just
minions? Do you make important decisions alone or only allow "yes-men" and
sycophants to state their views or are you grateful for objective criticism?
vi) Readiness and willingness to learn: You the boss, cannot expect a readiness and a
willingness to learn from your staff alone. You must also be prepared to take part in
such measures yourself. The all-important principle here is that there is nothing which
cannot be improved by the latest findings.
1.6.
1.7. 1.3.2 Ten Tips on How to Manage People in the Modern Working Environment
The modern working environment requires a concessions effort, by managers, to develop
their leadership skills. Here are some steps.
i) The secret of authority: The ability to obtain voluntary consent and win allegiance,
 what counts here is leading by example. Ultimately, you can't demand things of your
staff that you're not willing and able to do yourself. It is not a "superman" who is needed
but a managerial approach which sets a good example and includes human traits and
minor weaknesses. Nevertheless, certain, more conservative virtues cannot be done
without these traits. These traits include discipline, punctuality, keeping one's word,
generally not arriving later or leaving earlier than other members of staff, convincing
professional skills and human warmth. In day-to-day life, it is usually the little things
which win approval and allegiance. For example, a manager who is not above, putting
his own hand to the wheel when a conference room has to be readied or who
occasionally makes the necessary photocopies himself has already learnt a lot about the
secret of authority. All in all, the staff should be left with the impression that "you can
do it and "you'll take care of things".
ii) Recognizing one's own limitations: The more members of staff he/she has to lead, the
less a manager will be able to claim familiarity with all the individual fields. It is better
to admit to a lack of knowledge in some area than to give the impression that you know
it all and can do everything. Anyway, skilled members of staff will soon recognize your
lack of competence and draw their own conclusions. As a general rule, a lack of
knowledge does not create any problems. On the contrary, recognizing and admitting
the existence of one's own limitations can help to build confidence. Many of your staff
will be happy to give you advice and assistance when necessary.
A similar problem in this connection is the courage and ability to delegate. In practice
it is very often the case that managers are reluctant to delegate. The reason is mostly
their worry that the task will not be performed correctly or completely. However, the
greater the quantity and complexity of managerial tasks the greater the need to delegate.
If you do not develop this ability, realistic time management is doomed to failure. The
feeling of being the person in control will soon give way to the feeling of being
controlled. Stress and an apparent shortage of time will soon follow. Alongside courage
and the ability to delegate tasks, the manager must also at least in the initial stages - be
willing to make allowance for mistakes by his staff.
iii) Personality traits: Dependability, trustworthiness, character, no abuse of power, and
total commitment are the self explanatory criteria and require no further comment. On
the subject of total commitment one can add that one's profession should be seen as a
calling and not as an annoying interruption of some desirable leisure activity. Thus,
self-realization should take place not only at home and in one's private life but should
be part and parcel of one's professional activities. To put it another way: If you are
longing to play tennis all day, you will lose the game of management.
iv) Personal development (ongoing further training): Motivated staff members are
prepared to work hard and in fact welcome the opportunity to show what they can do.
Naturally, they want to have established evaluation criteria by which their performance
is judged. However, the necessary information is often not available. Conversely, when
members of staff act incorrectly it must be obvious why this behavior is incorrect and
what the consequences of this behavior are for the public authority or company. Vague
evaluation criteria lead to insecurity, annoyance, and sometimes even to a partial
refusal to work. Remember that praise is better than criticism. Thus, a standard question
which managers should ask themselves is "Have I praised anyone today?" It is better
 to praise five times than to criticize once. However, staff do not only want to be praised,
they also want opportunities for advancement. Regular training courses are important
to motivation. Being given more responsibility can mean more to a member of staff
than a small cash raise. Training schemes should always be linked to the individual's
personal development options.
v) Control is good, trust is better: Lenin's motto "Trust is good, control is better" has
been turned around here for a very good reason. In an ideal world, management would
show trust towards their staff and largely abolish control. Of course, this would only
follow a long process of familiarization and mutual assessment. From this point of
view, a renunciation of control can only take place when an atmosphere of mutual trust
has been achieved.
vi) Staff performance is usually a response to management performance: Staff
behavior, productivity and performance depend directly on motivation from superiors.
Staff won't perform if the manager:
 Constantly interferes in the employee's area of responsibility;
 Goes over people's heads because of lack of faith in their competence;
 Never explains decisions;
 Never asks the staff for advice and, when it is given, turns it down;
 Always credits himself with successes;
 Refuses to delegate owing to lack of trust;
 Takes decisions in an authoritarian manner;
 Doesn't allow staff to participate in decisions;
 Doesn't keep staff informed;
 Arrogantly judges the characters of the staff and offends them;
 Doesn't protect staff from attacks from outside or from colleagues;
 Apportions praise and recognition unfairly;
 Has unpredictable moods, is despotic and underhanded, and the staff never
comprehend what is going to happen next.
vii) Have a personal and not just a functional relationship with the staff: Taking a
personal interest means seeing the members of your staff as people and individuals and
treating them warmly. This can only be done if it is recognized that the contribution of
each member of staff in his/her particular field is important for the whole system. This
inculcates the sense of belongingness and commitment in every employee.
viii) Avoid egocentric communication: We have all met the type of manager who only
likes to hear self talk. He manages without the advice of his staff; he presides
autocratically over conferences and only allows people to speak because he has to.
Members of staff will soon realize that their own contributions only get in the way and
are not wanted. "Yes-men" will prosper in such a situation. However, the matter in
hand does not usually benefit very much, if at all.
ix) Be wary of negative criticism: Criticism is a necessary tool of management and is
usually desired by the staff. As has been mentioned above, clearly formulated
assessment criteria are of major importance when evaluating job performance. The staff
must be fully aware why a particular job has been done well or badly. Negative
criticism should always be moderate in tone and neither personal nor hurtful. This also
 applies to hard criticism. The individual must be given a chance to save face as this is
the only way he or she will be prepared to improve his or her performance. Self
assessment guides everyone their roles and draws a number of changes in policies and
style of functioning.
x) The golden rule for managers "Do unto others as you will have them do unto you":
This golden rule does not require interpretation, though may be just a supplement:
Always behave as if you are affected by your own decisions. Treat others as you would
like them to treat you.

1.4 The Place of Management in the Modern World of Industry

In order to understand the work performed by managers and the importance of their work to any
enterprise, an understanding of the world of industry or the environments in which they may be
employed is necessary.
Industrial or commerce is a subject about which all managers should have a basic working
knowledge. It is concerned with the methods by which products; that eventually comprises raw
materials, goods and services are transferred, bought, sold and distributed to the consumer from
those who produce the raw materials or the goods or provide the services.
1.8.
1.9. 1.4.1 Goods and Services
Raw and processed materials, and manufactured articles often called goods are tangible items, that
is, they can be seen and touched and often tasted and/or smelt. The range of such physical items
are vast; from such raw materials as iron ore and crude oil to manufactured articles of all shapes
and sizes − from tiny computer micro-chips to huge oil rigs, ships and airplanes.
Services, on the other hand, are intangible, that is, they cannot usually be seen, touched,
tasted or smelt. They generally consist of some work performed, only the results of which might
be seen or felt. Some examples of services include the work performed by accountants, lawyers,
doctors, dentists, hoteliers, banks, financial institutions, insurance companies, transport
organizations, engineers and mechanics, and many others.
All enterprises which make up the modern, complex world of industries are established to produce
or to provide raw materials, manufactured goods or services of one kind or another (Figure 1.1).
In most countries there are public and private sectors.
i) The Public Sector: The enterprises controlled by the government; make up what is
called the public sector. These are established and run primarily for the benefit of the
population as a whole − such as a national health service, or to provide security for the
nation and its citizens, such as the police force and the armed forces.
ii) The Private Sector: As the name implies, the private sector enterprises are privately
owned, either by individuals or by small or large groups of people. Whereas the
enterprises in the public sector are run for the benefit of the community or the country as
a whole, the enterprises in the private sector, which for convenience we shall refer to as
businesses, are run with the aim of making a profit (gaining money) for their owners.
For political, national or ideological reasons, some countries may restrict the sizes of
their private sectors, or virtually abolish them, whilst other countries provide incentives
to encourage their private sectors to expand. Whether an enterprise is in the public or the
private sector, proficient management is still vital if that enterprise is to achieve its
 objective - which may be the production of raw materials or goods, the sale or distribution
of them or the provision of an efficient service. Enterprises which collectively make up
the modern commercial world can be broadly divided into three groups:
a) Industrial Enterprises1: Into this group fall enterprises like mines, which extract raw
materials such as oil, coal, iron, etc., which are in general sold to other enterprises for use
as power or for use in manufacturing. Agriculture and fishing are also classified as
extractive.
Other enterprises in this category are classified as processing or refining because they
process the raw materials and, in so doing, alter their original form into more useful or
saleable forms e.g. malt, rolled stocks’ etc.
Still other industrial enterprises are involved in using the raw or processed materials in
the manufacturing − in factories or in workshops − of the wide range of products
available in the market today, or in producing components and which will form part of
the final products of other manufacturers. There are also industrial enterprises, which are
involved in construction and in allied fields.
b) Trading Enterprises: The range of enterprises in this group is very wide, but the common
activity is the buying and selling of the raw materials, components and products produced
by the industrial enterprises. Enterprises involved in trading range from small one-man
shops and kiosks to huge supermarkets, to departmental stores, to hypermarkets and
shopping centers. Some trading enterprises are involved in whole selling; they purchase
products from the producers in large quantities and then sell them in smaller quantities
to retailers, who in turn sell them, generally in even smaller quantities to their customers,
who may or may not be the final consumers. Some larger trading concerns may eliminate
wholesalers−often called "middlemen' − by buying direct from the producers.
c) Service Enterprises: Frequently the services provided involve the performance of some
work, only the results of which may be seen or felt. As we have mentioned already,
examples include banking, finance, transport, the maintenance and repair of machinery,
etc., and the provision of insurance cover.
Besides those already mentioned, services are provided by such diverse businesses such
as hotels, restaurants, estate agents, computer bureau, travel agents, tailors, electricians,
hair dressers, barbers, and many more. (Note that certain services are provided by persons
who do not consider themselves to be 'in business', e.g. accountants, medical doctors,
lawyers, dentists, auditors, etc. They refer to themselves as being in “the professions”,
although their services are rarely provided without charge).
There are also enterprises which provide specialized services are often called utilities.
These include enterprises − often fully or partly state owned which provide electricity,
water and gas supplies, as well as sewerage, communications, and similar services, often
on a national or regional scale.
There are, of course, some enterprises which fall into more than one of the three major
categories. For example, a business might operate a factory, and then sell the products of its factory
from its own shop(s) - and is thus involved in both industrial and trading activities. Another
enterprise might sell, say, office machines and also provide a maintenance service for those

1
Detail treatment of industrial enterprises is given in Chapter 2.
machines, and so is involved in both trading and service-providing activities. Such enterprises are
called multi-purpose activity enterprises.
All categories of enterprises are dependent upon each other. For instance:
 If there were no industrial enterprises’ there would be no raw materials available, and
there would be few, if any, goods for the trading businesses to buy and sell.
 At the same time, most industrial enterprises depend on trading businesses to buy −
and sell to consumers − the raw materials, the components or the manufactured goods
which it produces.
 Few industrial enterprises could operate services − particularly utilities − provided by
service enterprises.
 Even most service enterprises require services provided by other service − and
particularly utility − enterprises.
 And, of course, if there were no industrial enterprises or trading businesses’ there
would be few, if any, customers for the many services provided by the service
enterprises!
Whether an enterprise is classified as being industrial, trading or service- providing (or a
combination of two or more of them) a manager's job will still comprise the two aspects described
in section 1.6.1: the "technical" or "functional", requiring a knowledge of the work of the enterprise
or the department or the section of it in which he is employed; and the 'human' aspect concerned
with the people through whom the objectives of the enterprise or department or section will be
achieved.
 Production

Industrial Commercial

Extraction Construction

Manufacturing Processing &

Refining

Services
Trading

Warehouse

Transport
Home Foreign
Maintenance
Production
& Repair
Production
Banking and
Wholesale Retail Export Import Finance

Insurance

Accommodation
& Catering

Figure 1.1: The Modern World of Commerce.

1.10. 1.4.2 Types of Business Units
In the private sector, the range and variety of a manager's work, duties and responsibilities may
depend on the type, size and ownership of the business unit for which he is employed. The basic
types of business units in the private sector are sole-proprietors, business partnership firms, and
limited liability companies, and we now briefly look at each type.
i) The Sole-Proprietor Business: As the name implies, the ownership of such a
business is in the hands of just one person. Generally, the day-to-day management of
the business is performed by its owner, although some "delegation of responsibility"
may be necessary, and in some cases the owner may employ a manager to run the
business. This type of business is usually fairly small, but is not always so. The range
of activities of sole-proprietor businesses is wide: many are involved in trading, both
in wholesaling and in retailing; some are engaged in relatively small-scale
manufacturing or in farming, fishing, etc.; many are involved in technical or crafts
fields, as motor mechanics, electricians, radio/tv engineers , painters and decorators,
etc.; some provide services, for example estate agents, insurance agents, etc.; whilst yet
 other businesses are concerned with the running of restaurants, guesthouses, small
hotels, and the like.
The owner-manager will normally have a good knowledge of the work performed by
each person employed and, indeed, may well actually have to perform that work in
times of holidays, illness or other absences; although some "specialists" may have to
be employed.
ii) Business partnership firms: A partnership is a business associa-tion of two or
more people who have formally agreed to work together, each contributing skills, labor,
and resources to the venture in return for an agreed share of the profits. The formal
partnership agreement usually covers all the partners’ rights, responsibilities, and
obligations, the circumstances in which their partnership may be dissolved, and the
duration during which the partnership is in effect. Unless a limited partnership has been
established, all parties share the burden of loss and debts.
iii) Corporation: As a business grows, it often becomes difficult for sole proprietors
or partnerships to raise the required finance. It was to overcome this problem that the
ingenious concept of corporation, or company, came into being. A company is a legally
defined business entity separate from its owners: it lives on if they die; it can own
assets; it can sue and be sued in courts. The legal requirements and limitations regarding
the setting up of a company or corporation are determined by company law.
The concept of a company or corporation allows investors to acquire a fixed ownership
stake in a business, and thus get a much greater return than they would by collecting
interest on money lent to it, provided that the business is successful. A further
refinement is the concept of limited liability, whereby, however, badly a company
performed, its owners could only be held liable up to the amount of their investment
(unless they had given additional personal guarantees). Any such investor who has a
share in the ownership of a company knows the absolute extent of their risk; unlike sole
proprietors, for instance, whose liability and risk is unlimited.
The ways in which corporations and companies operate vary considerably, and they
may informally be classified in several ways. Vertical integration characterizes
companies that engage in the different stages of manufacturing or marketing a product.
Horizontal integration embraces companies engaged in the sale of the same or similar
products. A conglomerate is where a holding company controls other companies
conducting diverse types of business, ranging perhaps from financial services to
electronics manufacture.
In modern business, there are complex webs of interest and ownership in which
companies are connected with other companies through shareholdings or business
alliances. These are further complicated by the large stakes held in businesses by banks
and institutional investors such as pension funds. A multinational is a company that
transacts business and has interests or branches in many countries. These huge concerns
generate revenues that can be larger than the gross domestic product of some of the
countries in which they operate.

1.5 The Functions of Management

The subject of management can be considered a process involving certain functions that a manager
performs. These functions will serve as the most important framework for introducing management
concepts. For analytical purpose a four fold breakdown is used; however, it does not mean that these
functions are distinct and separate steps with no overlaps. [5]
Planning: This entails deciding how the predetermined objectives of the enterprise, or the
department or section of it, should be achieved − in the most efficient and economical way
− in accordance with the company policy. In a nutshell it is establishment of goals and
objectives toward which employs direct the course of action.
Organizing: This involves putting the 'theory' (the plans) into "practice", so arranging the
work to be performed and the objectives will be achieved as laid down in the plans.
Directing: This involves providing leadership for subordinates, and also requires the ability
to inspire them to give their best in achieving the objectives, by creating high morale or
working spirit amongst all employed by the enterprise.
Controlling: This comprises supervising the people employed, checking their work and the
machinery and equipment used, to ensure that the end products are the desired objectives.
It also includes the recording of performances to provide a guide for further similar
activities in the future, and baseline for further improvement.
Let us examine the four functions of management in detail, and see how they interrelate
and what they entail in practice.
1.11.
1.12. 1.5.1 Planning
Planning is the activity concerned with making or formulating plans. Plans should be looked upon
as being the routes of objectives. Planning involves the predetermining of the course of action to be
taken in relation to the known event. It also includes anticipating the possibilities of future problems
that might appear. Policies as guides to decisions and actions are based upon plans of future needs
and the means to satisfy these needs. The increased importance of planning in a business enterprise
results from various changes in the environment like changes in technology, government policy,
overall economic activity, in the nature of competition and in social norms and attitudes.
Once the objectives of an enterprise have been set, planning is necessary to work out how
to achieve those objectives within the framework of the policies formulated. Although we are
concerned in this text with planning as a managerial function, it must not be overlooked that
planning is necessary in everyday living. Even a shopping expedition might need some planning
what route to follow to get to the shops; what form or forms of transport to take and when/where
to change from one to another, the order in which to visit shops, for instance to avoid purchasing
the heavy items first and having to carry them around all the other shops to be visited; how to get
back home with the parcels and bags of items bought, and so on.
In business, top management, e.g. the board of directors of a company, is involved mainly
with long-term planning which is often called strategic planning. That is concerned primarily with
deciding what the objectives of the business should be for two, four, five or even ten years ahead,
and so the future policies of the business. Such planning is concerned mainly with the enterprise
as a whole rather than with its individual departments or sections. Senior management will be
involved in tactical planning, that is, planning how the overall strategies are to be achieved. This
often entails devising and operating short-term plans, for up to a year ahead. Other levels of
management, including supervisors and/or foremen, are involved mainly in very short-term
activities planning sometimes called operational planning. That involves planning the day- to-day
running of departments or sections and individual assignments, for example planning how to meet
a particular quota of production, or deciding what each member of staff should be doing at any
given time.
A good deal of the planning which managers are called upon to perform involves making
routine decisions, and is concerned with everyday matters; for example, planning the work of a
team of office staff, which will be similar week after week. However, plans must be flexible so
that they can quickly and easily be modified in the light of events.
Much of such routine planning is an automatic process, requiring little conscious thought
at the part of the manager, as his or her plans and decisions will be based largely on past experience
with similar, or even with identical, problems. Other planning, of perhaps a business trip or a
training course, for example, might require far more conscious thought, investigation and research
before decisions are reached.
Think how wide-ranging and complex will the planning be to set up a factory to produce a
range of tinned food products, or even a motor car or automobile. The necessity for such planning
can also arise after the establishment of an enterprise. For example, at a later date it might be
decided (by the owner or board of directors) to 'diversify' the bookshop so that in addition to books,
it will sell or rent video tapes; plans will then have to be formulated on how that will be done, how
the new section will operate with, or independently of the existing organization, and so on.
In general, the planning process may systematically be composed of five elements:
i) Setting Primary & Intermediate Goals: The principal goals are set by top management
groups and the intermediate goals which help to clarify the primary goals are set by middle
management group.
ii) Search for Opportunities: This is a data-collecting function, whereby the environment is
examined for opportunities of business activities. This includes forecasting events and
identifying changes in demand, competition, technology, finance and industrial structure.
iii) Formulation of Plans: This is translating or converting the opportunities discovered into
strategies and policies which are directed toward the primary and intermediate goals. The
activities are carried out by plan program developers, or assistants to the manager.
iv) Target Setting: This in effect is translating the broader plans into specific and detailed
quantities and times for many decision makers and workers.
v) Follow-up of Plans: Operating plan involves continual checks whether the actual
performance is related to the estimated activities consistent with the original plan.

1.13.

1.14.

1.15. 1.5.2 Organizing

Organizing is the establishing of effective behavioral relationships among persons so that they may
work together efficiently and gain personal satisfaction in doing selected tasks under given
environmental condition for the purpose of achieving some goals or objectives.
The organizing function of management brings together human and physical resources in
an orderly manner and arranges them in coordinated pattern to accomplish planned objectives.
Each organizational resource (human, material, finance etc.) represent an investment from which
the management system must get the return. Therefore, these resources should be organized
properly for efficient and effective use of the same.
A sound organization is necessary because it brings many benefits to the management of
an enterprise. Some of the benefits are:
 Good communication between the management and employees,
 Sound basis to evaluate the performance of individuals and groups,
  Well defined areas of works for each employee,
 Coordination of activities of various individual, groups, etc.,
 Effective delegation and decentralization,
 Adequate and effective control,
 Difficulty in empire building in any segment of the enterprise, and
 Stimulation of independent, creative thinking and initiative on the part of the employees.
On the other hand, poor organization brings poor results. When duties and responsibilities
are not well defined, managers are allowed to hold and delay the matters unnecessarily and
delegation is not effective, which leads to high cost, low efficiency and poor return on investment.
Each organizational resource represents an investment from which the management system
must get a return. Appropriate organization of these resources increases the efficiency and
effectiveness of their use.
There are some principles of organization which are guidelines for thought to practicing
managers and researchers in an organization. The most important of these principles are:
i) Unity of Command: No member of an organization should report to more than one superior
on any single function. This principle is useful in an organization if interpreted as a tendency
toward the simplification of relationship, but it would harm the organization if interpreted
as an immutable law that would eliminate useful relationships among colleagues.
ii) Exception Principle: Recurring decisions should be handled in a routine manner by lower
level managers, while problems involving unusual matters should be referred to higher
level.
iii) Span of Control: There is a limit to the number of subordinates that one superior can
supervise. The superior cannot give attention to many subordinates because he has limited
available time and energy. Accordingly, the number of subordinate to which a manager
can give attention is limited.
iv) Scalar Principle: Authority and responsibility should flow in a clear unbroken line from
the highest executive to the lowest. The military uses this principle and is widely known
by the term chain of command.
v) Departmentalization: The activities of an enterprise may be grouped as specialized
sections according to geographical location, commodity manufactured and functions
performed. Often, different types of departmentalization are used at different levels of the
organization structure.
vi) Decentralization: This refers to the process of pushing decision making to lower levels of
an organization. The delegation of authority to the broader base has to be considered under
the light of available skill and competence possessed by subordinates and the distribution
of necessary information to the points of decision.
So far we have seen the concept of organizing which focuses on the structure and process of
allocating jobs so that common objectives can be achieved. Next we will briefly look at the steps that
are important when organizing an enterprise (Figure 1.2)
1. Reflection on plans and objectives,
2. Establishing major tasks,
3. Dividing major tasks into subtasks,
4. Allocating resources and directives for subtasks, and
5. Evaluating the result of implemented organizing strategy.
 In the first step, the manager would take to initiate the organizing process. This would
mean reflecting on organizational plans and objectives. Plans involve determining how the
organization will obtain its objectives, and organizing involves determining how organization
resources will actually be used to activate plans.
The second and the third steps of the organizing process focus on tasks to be performed
within the management system. After the manager understands the organization plans and
objectives, he/she must designate major task areas of jobs that must be performed within the
organization. Then he/she must divide major task areas into subtasks.
The fourth organizing step that the organization manager must perform is determining who
will take orders and the details of the relationship between these individuals. The fifth step of
evaluating the result of a particular organizing strategy necessitates the organization manger to
gather feedback on how well his /her implemented organizing strategy is working.

reflecting
on plans
and objectives

Step 5 Step 2

Evaluating
results for Establishing
organizing major tasks
strategy

Step 3
Step 4

Allocating dviding major

resources and tasks into
directives for subtasks
subtasks

Figure1.2: Five Main Steps of Organizing Process

1.16. 1.5.3 Directing
Different organizations use different terms such as leading, executing, supervising, ordering and
guiding to mean directing. What ever terms are assigned to it, the idea of directing is to put into effect
the decisions, plans and programs that have been worked out. Directing includes:
 Issuing of orders that are clear, complete and within the capabilities of subordinates;
 Programming a continual training activity in which subordinates are given instructions;
 Motivating the workers to discharge their duties up to the expectation of the manager; and
 Maintaining discipline and rewarding those who perform properly.
The manager, in carrying out his duties, needs to develop an individual style of leadership.
There are four different types of leadership styles. The dictatorial leader maintains a highly critical
and negative attitude in his relation with subordinates and advocates the accomplishment of tasks
through fear of penalties.
The benevolent-autocratic leader assumes a paternalistic role which forces the workers to rely
on him for satisfaction. This type of leader must be exceptionally strong and wise individual, so that
his personality generates respect and allegiance. The subordinates develop dependence on the leader
to the extent that they have very little chance of developing leadership qualities.
The democratic leader suggests better methods and tries to improve the worker's attitude.
Unlike the others, not only does he depend on his capabilities but encourages consultation with
subordinates in planning, decision making and organizing. With this type of leadership, satisfaction
is gained through a feeling of group accomplishments.
The fourth type of leadership style is a laissez-faire type where the leader assumes the role of
just another member of the group and depends completely on subordinates to establish their own goals
and make their own decision.
In developing any of the four styles of leadership the manager has to consider the forces in
action from two points of view. The forces to be considered from the manager's point of view are his
value system, confidence in his subordinates inclination and feeling of security in an uncertain
situation. And the forces to be considered from the subordinates’ point of view are their expectations,
forces in the situation like type of organization, the nature of the problem and the pressure of time. It
is in light of these forces that the leadership style be developed.
1.17.
1.18. 1.5.4 Controlling
Controlling includes ensuring that employees perform the work allocated to them in the
ways laid down, and with no wastage or duplication of time, effort or materials. That involves
much more than simply instructing a given number of employees to perform work; they must be
supervised and managed so that their efforts achieve the desired results. This requires, that they
are motivated, checked, guided, taught and encouraged. All employees are human beings, with
human feelings, and their efforts cannot simply be switched on or off like a light bulb; and they
look towards, indeed depend upon, their supervisors/managers for direction.
There are seven principles of control.
i) Strategic Point Control: The critical, key or limiting points must be identified in order to
minimize unnecessary effort and maximize attention to important problems. This principle
is similar to the exception principle of organization.
ii) Feedback: Future actions can be adjusted on the basis of information about past
performance. Management may have many applications of the feedback principle in many
areas.
iii) Flexible Control: The control system has to be adaptable to new developments, and it has
to be responsive to changing conditions. Therefore, the control system of a plant doesn't
have to be rigid but flexible.
iv) Organizational Stability: A superior must find a pattern that will provide a control
mechanism for individual sections. The flow of information should correspond and must
be tailored to fit the organizational structure employed.
v) Self-Control: Much of the detailed control can be handled within the department, if the
department can have its own goals and control systems to check itself.
vi) Direct Control: Whatever system of control is employed in an organization, the system
 should be designed to maintain direct monitor between the controller and the controlled.
vii) Human Factor: A control system involving human beings is affected by the manner in
which human beings react to the system psychologically. Control systems must pay special
attention to human factors. Control function operates on the foundation of planning
function; and it is in turn a base for communication function.
Within this framework, it can be seen that the work of all staff must be supervised and
checked (and further instruction, guidance or training are given when required). In addition, all
operations or processes must be checked or inspected, and performance must be measured against
the targets set in the plans and against set of standards.
The essence of control lies in checking and taking correct action against desired results in
the planning process. The following are the basic procedures for controlling.
i) Measuring performances: managers must also keep in mind that a wide range of
organizational activities can be measured as part of the control process. As examples
of the production process, the amount and the type of inventory kept on hand are
commonly measure to control inventory, and the quality of goods and services are
commonly measured if they meet customers’ requirements.
Before managers can determine what must be done to make an organization more
effective and efficient, they must measure current organizational performances. Before
such a measure can be taken, some unit of measure that gauges the performances must be
established and the quantity of this unit generated by the item whose performance is being
measured must be observed.
ii) Comparing measured performance against standards: Once managers have taken a
measure of organizational performance, they should take the next step in controlling
and comparing this measure against some standard. A standard is the level of activity
established to serve as a model for evaluating organizational performance.
A 'standard' in this context means a level to be aimed at, or a measure with which others
must conform, or by which the accuracy of others is judged. A simple example is a
business letter: certain standards will be laid down which it must meet concerning the
type, size and color of paper on which it is to be typed; the layout of the typed work,
the position of the addressee's name and address, the date and reference (if any);
whether paragraphs are to be indented; whether the signer's name and/or designation
will be typed - and the typed letter will be expected to reach certain standards of
neatness, without spelling mistakes, erasures, smudges or over-typing.
Of course, standards apply in everyday life, too: the laws of a country are the standards
by which citizens have to abide; students are expected to attain certain standards of work
and their examination work will be assessed against set standards, to pass a driving test
a certain level of proficiency must be possessed and so on.
In management, standards are measures of the performance of a process or a routine or
output of equipment, and they are used as a comparison to check that one item or process
matches − in quantity or quality which is set forth as standard. Quantity standards
include specific 'targets' set for sales, production, output per worker, and the like, which
can be determined and/or measured fairly and accurately, and which should be met
within tolerable limits. Quality standards apply to the finished products or end results
or to various stages in the manufacturing process; production control and inspection are
 required to ensure that such standards are met. The standards set may not represent
perfection, but represent the best method or item that can be produced at a given time
within limits imposed by such factors as cost (or what consumers are prepared to pay),
equipment available, quality and availability of materials, etc.
An enterprise will establish its own standards for the various types of work performed,
and for its end products, although in some countries there may be laws to ensure that
various products meet certain quality or safety standards, and of course often consumers
will indicate the standards, which they expect. Standards apply in virtually all
enterprises, whether they are industrial, trading, service providing or state-owned. Even
the customers of a one-man business will expect him to stock the type or quality of
goods they want, that he serves them with efficiency and courtesy, and so on.
Standards must also be flexible so that they can be amended in the light of
circumstances; for instance, changes in consumer demand, rising costs, better
technology, etc.
a) Ideal or Strict Standards: are set at the maximum level of efficiency; they are,
in effect standards of "perfection" and as such they can rarely be achieved, and
then only for short periods. The setting of such standards can sometimes motivate
employees to increase their output to the maximum. But, if − despite doing their
so – they still cannot attain the set standards, they are very likely to become
discouraged.
b) Attainable Standards: are set at levels that are considered to be attained with
reasonable effort. The problem for management is, of course, to decide what really
is attainable, as each employee has his or her own character, and what motivates
one person may not motivate another. Much depends on the type of work being
performed and on the caliber of employees, on the work environment and work
climate, on management's attitude towards its workforce, and on the managerial
skills of individual managers, supervisors and foremen. Moreover, it is to say that
reasonable, understanding and fair management is most likely to result in
attainable standards actually being achieved on a regular basis.
iii) Taking Corrective Action: Once mangers have measured actual performance and
compared with established performance standards, they should take corrective action if
necessary. Corrective action is a managerial activity aimed at bringing organizational
performances up to the level of performance standards. In other words, corrective action
focuses on correcting mistakes in the organization that have the net effect of hindering
organizational performance. Before taking any corrective action, however, managers
should make sure that standards being used are properly established and that
measurement of organization performance is valid and reliable.
iv) Maintaining Records: An important part of the function of controlling entails
maintaining of records of performance. Such records, whether they are concerning
sales, production, output, etc., are vital as a guide to future planning and in setting of
new or revised standards. Daily or weekly or monthly reports to higher management
provide vital information, which enables, the control to be exercised over all activities
of the organization, and assists in the coordination of the efforts of the organization as
a whole.
 Let us illustrate the relationship that exists in managerial factions using the following
practical example of writing a business letter.
In practical everyday management, the four functions − which were separated so that one
could examine them more easily - may not always be apparent or be recognizable as being distinct
from one another. That is because they form together one continuous process, in which the
individual functions blend, run into and interrelate with one another. That is as it should be;
management should not be a job which a person has to force him/her to perform, step by step, but
a task which flows, without great conscious thought; stemming from his or her experience, training
and an understanding of human nature.
However, to illustrate that the four functions are distinct and how they work together in
practice; let us use the example of the business letter:
A letter must be sent to an important client/customer. The manager of the department
concerned decides what he must state in the letter, and makes brief notes of the topics to be
covered in it and the order in which he will deal with them (planning).
He will ensure that his secretary has the correct stationery on which to type the letter, that
her computer is in good working order, and that she will not be disturbed during the typing of
the important letter and, if necessary, arranging for her, other routine work to be performed by
another secretary (Organization and coordination).
He explains to her the necessity for the letter and its importance, and the need for an
accurately typed, neat and well laid-out letter, and gives her any additional instructions
necessary, e.g. about the number of copies needed, etc. During the course of the dictation’ he
will assist her with the spelling of any- long or unusual words and technical terms, and will
repeat any figures to ensure accuracy (directing).
Once the letter has been typed, he will check it carefully to ensure that the layout is correct,
that no typing or grammatical errors have been made, that any enclosures necessary have been
attached or included, and that the correct size envelope has been correctly typed, and that at
least one copy has been typed to retain as a record on file (control).
The foregoing is a very simple example of management in action in a practical situation;
but it enables one to see quite clearly the four functions of management as separate and
independent activities. The example also helps to see that the technical aspect − in this instance,
knowledge of what has to be stated in the letter − is quite separate from the managerial aspect of
the work of the manager concerned.
Whenever facing in a situation in which management or supervision is being practiced’
one should try to identify the four functions, and what they involve in the given circumstances.
Note also whether any of the functions has been omitted and, if so, what effect that has had on the
outcome. This way you will learn to implement automatically all four functions in each and every
managerial/supervisory situation, for the best results.

1.6 Characteristics of a Good Manager

1.19.

1.20. 1.6.1 The Dual Aspects of any Manager's Job

The modern 'world of industry' is very complex, and this very complexity has led to what is called
“specialization” and to the "division of labor” by which different people specialize in performing
− and become specialists in − different types of work. It follows, therefore, that the “technical” or
"functional”, i.e. the specific work of different managers can and does vary enormously. There are
sales managers, production managers, office managers, hotel managers, store managers,
construction managers, transport managers, finance managers, and many more. Therefore, the
technical or functional work of, say, a factory manager in one enterprise may well differ greatly in
many respects from that of a factory manager in another enterprise.
Nevertheless, all those different types of managers, and all others, should have considerable
knowledge of the technical aspects of their jobs in addition to being proficient ‘managers of
people’. It is, in any case, not easy to train, supervise and control the work of others without
knowing what they are or should be doing.
So the duties of any manager or supervisor comprise two quite different aspects:
1. The technical or functional aspect which is concerned with the work to be performed by
his enterprise or department or section; and
2. The managerial aspect which is concerned with the people who are to perform that work
in his enterprise or department or section.
A factory manager, for example, may spend all of his working hours on management and
may take no part in the physical production of the item(s) manufactured in the factory. He may
not, for instance, actually operate a machine but he must know how those machines operate, how
to train operators to handle the machines, the type of maintenance require, their performance
features and limitations, and much more.
Similarly, a sales manager must know everything about the products which are to be sold
for his enterprise. He may spend most of his time training and controlling his sales force,
organizing market research, arranging advertising and publicity, etc. He may leave most of the
actual physical “selling work” and promotional activities to his salesmen and saleswomen; but he
will probably be called upon to help them with important or difficult customers or with
complicated sales - and so at times he may be actively engaged in meeting customers, and thus in
the actual work of selling.
Some estimates show that a managing director may spend between 80% and 90% of his
working hours on managerial matters and only 10% to 20% of his time on the technical activities.
whilst senior managers may spend approximately 50% of their work time on managerial activities
and 50% on technical activities; and supervisors and foremen may spend some 70% to 75% of
their time on technical activities and only 25% to 30% of their time at work on the supervision of
their subordinates (Figure 1.3).

Top Level
Managers
es
iti
tiv
Ac

s
tie
ial

Middle Level
vi
er

Managers
cti
ag

lA
an
M

ca
ni
ch
Te

Supervisors

time
 Figure 1.3: Time Spent for Managerial and Non Managerial Activities
With Respect to Managerial Hierarchy
1.21. 1.6.2 Personal Qualities Needed for Managerial Success
The character traits and personal behavioral qualities, which the "ideal" manager should possess
range from the ability to deal fairly and honestly with his or her staff in an amicable way without
constant resort to threats of dismissal; from being able to set good examples, to dealing calmly and
courteously with the most difficult or delicacies of problems. Very few people are likely to be
born with all the traits and abilities mentioned, but many if not all − can be developed if there is
will to succeed.
Basically it is a matter of the manager or supervisor taking a good, hard, and honest − look
at himself/herself and deciding what traits or abilities or qualities he/she is lacking; and then taking
positive steps to remedy the situation. Let us take two simple examples.
If a person has difficulty in arriving at work on time, it is merely a matter of setting an
alarm-clock 10 or 15 or more minutes earlier to provide the extra time.
If a person finds it difficult to become concerned with problem of other people, it is a matter
of trying to think what he or she would feel if placed in the other's "shoes" (known as empathy).
After all, the ability to analyze a situation, and then to plan and to carry out a course of
action to deal with that situation, is in itself a managerial quality.
In this section, we concentrate on the "mental" qualities or abilities which are desirable in
a manager if success in the profession is to be achieved. It is unlikely that they will all be found
in one person, or that they will necessarily be conspicuous in every person considered to have
managerial potential. Indeed, many, if not most, of the desirable attributes are likely to be "latent"
- that is, dormant, existing but not manifested when a career in supervision or management is first
embarked upon, and they will develop gradually as the result of training and experience. It is better
not to make all experiences yours. But learn from the mistakes other make.
Some of the more important personality traits of a successful manager are the following:
i) Ability to Think Clearly and Logically: A manager needs to be able, as the result of
training, to approach each situation and problem positively and objectively, without
prejudgment or being distracted by irrelevancies. This requires him to think in a clear,
orderly fashion and to marshal and arrange logically in his mind all the facts and
information available to him.
With training and experience such processes are occurring in the mind automatically
and reperformed unconsciously, so that a sensible decision is reached in a short time.
Naturally, complex or unusual problems may require more thorough consideration and
examination. It is important that a manager neither makes snap decisions' based on
inadequate thought or consideration, nor is hesitant in reaching a decision.
ii) The Abilities to Make Decisions and to Act Decisively: These follow on from the
foregoing, and also require a measure of self-confidence; a belief in one's own ability
to succeed in solving problems in the right way, and in one's own ability to deal
effectively with different situations and sets of circumstances. One of the basic reasons
why leaders − managers − are needed is to identify problems and to make the decisions
 necessary in order to surmount or to solve them.
Many managers and supervisors try to shirk the responsibility for making decisions −
and give various reasons for doing so: insufficient facts or data, insufficient time for
proper consideration, and so on. But more often than not the real reason is the lack of
self-confidence or, indeed, courage. The process of decision-making can be analyzed
and seen in stages, although in practice the process will be continuous, automatic, and
− with experience − is often performed without conscious thought. The stages are:
a) Defining as accurately as possible the problem which needs to be solved.
b) Obtaining all relevant information about the problem or which may have a
bearing on it or on the solution to be found.
c) Breaking down the problem into parts − very often the solution to one part is
obvious and leads, logically, to the solving of other parts or the whole problem.
d) Comparing and judging the probability of success of any possible different
solutions to the same problem, and their possible consequences on other areas.
e) Selecting the most attractive solution − making the decision.
Of course, once a decision has been reached, it must be implemented. Hesitancy in this
respect shows lack of self-confidence in one's judgment, and uncertainty will quickly
be spotted by subordinates. If a manager does not have confidence in himself, how can
he really expect his subordinates to have confidence in him?
Once a course of action has been decided upon, the manager must act decisively and
with confidence. The more senior a manager becomes, the more complex and
important decisions he is likely to make.
iii) The Ability to Use Initiative: The majority of decisions which a manager will make
and actions which he takes, will be relatively routine, and will be based on past
experience of similar problems or situations and their solutions. However, from time
to time a manager is bound to come across problems or situations which are outside his
range of experience or outside the normal scope of his responsibly; the latter can,
perhaps, arise when a senior is away or is unavailable for some reason. In such
circumstances, particularly if action is urgently needed, the manager must not simply
leave the matter until his senior is available or wait to be told what to do, but must
initiate - that is, lead the action without waiting to be prompted. Using his knowledge
of the enterprise's policies in such matters, logical thought and common sense and any
advice or information available to him, he must decide what should best be done in the
circumstances - and then do it.
As soon as possible thereafter, he should report the matter to his superior, explaining
what the circumstances were, what action he took or decision he made and what reasons
he had for so doing. Such a report has two-fold importance:
 Firstly, it allows the superior the opportunity of changing or modifying the
action initiated if necessary, and perhaps giving the manager the chance to learn
why.
 Secondly, his superior has the chance to assess his ability to handle himself in a
difficult or unexpected situation.
 Another often overlooked advantage of encouraging people to make use of their
initiative is that new ideas and thoughts are brought to bear on problems. In many ways
initiative is associated with creativity. This does not necessarily mean creativity as used
to describe the abilities of artists, poets, writers, inventors, architects, etc., but the
ability to innovate or to improvise an emergency, or to find better ways to perform a
job or to work out a new procedure.
iv) Ability to Handle Conflict: A good manager is calm, able to listen, is positively
responsive to criticism and is able to handle conflicts and differences in a constructive
manner. In order to handle conflicts well, a manager must be confident, self-assertive,
fair and dominant. He should be highly tolerant of stress, as conflicts generally lead to
stress and tension. This would require a sound mind in a sound body. A good physical
health generally introduces drive, energy, and stability leading to more balanced
outlook.
v) Ability to Adapt and be Flexible: No enterprise can ever remain static; certainly not if
it is to survive. Changes − some large and some small − take place continually;
personnel change, market and consumer demands change, the economy and associated
circumstances change, new machinery and/or new equipment is introduced,
technological developments take place, and so on.
Any manager must therefore be able to adapt to changes and, if necessary, to cope with
changed circumstances, and ensure that his subordinates also do so. Adaptability to
different situations and flexibility of mind are also necessary in the routine, day-to-day
running of a section, department or an entire enterprise. Many problems and situations
of a widely varying nature confront the manager every day, and he must be able to
adapt is approach and manner to every person with whom he comes into contact: is
subordinates, seniors, customers/clients, suppliers, etc.
A manager needs to be able to turn his attention and thoughts from dealing with one
task, problem or situation to another, without hesitation or loss of control. He must
also be prepared to deal with the unexpected as well as with normal, routine matters.
A manager must also be sufficiently flexible in mind and attitude to consider other
peoples' opinions, ideas and suggestions. If, on reflection, he finds merit in the ideas,
suggestions, advice, etc., of others, he must be sufficiently mature and confident to
adapt his own plans, decisions, etc., to incorporate or to build on other features of value
- that is, to innovate.
vi) Ability to Be Emotionally Stable: Hand in hand with adaptability and flexibility
of mind, go self-discipline and self-control. In dealing with different problems and
situations, some of which might be irritating, annoying, worrying or heated − or include
emotional displays (e.g. tearful women, angry voices, etc.) by others − a manager must
be sufficiently mature to keep calm and collected. He must be able to keep control over
his own emotions and his temper whatever may the provocation be, and be able to
concentrate his attention on the matter in hand, thinking clearly, logically, and avoiding
hasty reactions.
He also needs self-discipline in ensuring that he sets good examples for his subordinates
to follow and in working to his full capacity no matter what worries or problems
confront him or the pressures, which he may be under.
 Although a manager cannot simply leave problems behind in his office when he departs
at the end of a working day, he still needs the capacity to relax and to relegate those
problems to his subconscious mind at times.
vii) Stamina and Concentration: Although stamina − required to enable a manager to
work long and hard without undue stress or strain − may be looked upon as a physical
rather than a mental ability, it is not necessarily physical fitness which is essential, but
mental fitness (although the first may lead to the second). Besides mental alertness, a
manager needs to be able to concentrate his mind on the matter in hand even under the
most trying circumstances and/or when he is under pressure; to focus or keep one's
mind intently fixed over a long period can be tiring, particularly as there will be many
different matters requiring attention and concentration during a manager's working day.
ix) Drive and Determination: A manager needs the urge and enthusiasm to stimulate
action, not only by himself, but by other people as well. He also needs the determination
to keep going whatever the difficulties, adapting his actions and decisions to overcome
problems encountered, and pressing on to a successful conclusion.
Of course, determination must be tempered by a willingness to listen to the advice,
suggestions, etc., of other people and by consideration for feelings, welfare, views and
positions of others; determination does not mean ruthlessness!
x) Leadership: Leadership is the ability of a person to exert a positive influence over the
thoughts, behavior and actions of others, and then to direct their thoughts, behavior and
actions towards a common goal or objective.
The ability to lead others does not necessarily manifest itself in any specific physical
characteristics, e.g. age or size − height or weight − or strength or looks, etc., and the
ability appears in both men and women (although, perhaps, the latter's abilities have
frequently been ignored, and are still unrecognized, in some countries). Many leaders,
say, in the field of politics, tend to be older because people, e.g. voters, tend to respect
the knowledge and experience they have gained, which give them authority. Other
people may be influenced by the looks of, or by the ideals or ideologies propounded
by, those seeking political leadership positions.
Generally, leaders are good communicators, but not necessarily orally. There are,
however, many characteristics of some leaders which are not found in other, equally
successful, leaders. A manager must, by definition, be a leader; his managerial
functions are concerned with planning, organizing, coordinating, controlling and
directing the activities of people towards the achievement of an objective. The different
attributes needed by a successful leader, in managerial terms, are many and varied, and
to a large extent will be demanded by the circumstances under which the leadership has
to be exercised.
Perhaps, more accurately, it is those attributes which are - or can be displayed when
the situation demands, which really count towards successful management; different
situations require the display of different attributes from managers. It is evident that at
various times, and in various circumstances, managers will have to display a "mix" of
some or all of the various qualities, abilities and attributes.
1.7 Organizational Structure
1.22.

1.23. 1.7.1 Organization in Business

1.24. Opportunities for change in organizational structure may be limited in an established
business, although they may arise from time to time, due to diversification or amalgamation
or merger, but a planned organizational structure must not be overlooked in the establishment
of a new business. The stages in the setting up of an effective organizational structure are
1. The activities which will be necessary to achieve the objectives of the business must
be established.
2. The various related activities should be grouped together into departments; the most
logical grouping is by 'function', that is, by type of activity: production, marketing,
finance, etc.
3. The activities of a particular department will be further divided, and grouped together
into sections; for example all those activities concerned with advertising and publicity
may be included in the advertising section; there may be a number of separate selling
sections dealing with different products; and there may even be a section concerned
with export sales. Some or all sections may be further subdivided if necessary.
4. An organization chart should be produced to depict the proposed organization as
decided upon in stage 2 and 3.
5. Based on estimates of the volume of work, which will be performed by each section,
the number of staff required must be determined. Depending on the type of work to be
performed and on other factors, the numbers of supervisors, junior and middle
managers per section and department must be given thought (see section 1.7.3 on 'span
of control').
6. The special knowledge or talents required by departmental and sectional managers
must be laid down. Coupled with this is the necessity to lay down the extent and the
limits of authority and tile duties of all those who will hold managerial positions and
the authority to delegate must be provided.
7. The equipment necessary for the proper functioning of each section and department
must be decided upon, and provision made for its positioning when considering the
layout of the accommodation for each unit.
8. To ensure effective coordination of all parts of the enterprise, effective procedures and
systems of communication must be devised and installed.
1.25.
1.26. 1.7.2 Types of Organizational Structure
There are four different types of organizations, namely line, functional, line and staff, and matrix
organization.
i) Line Organization: This is the simplest form of organization and although it does have
some drawbacks, in practice it can be very efficient, particularly in small and medium-
size enterprises. Line organization is illustrated in Figure1.4, and is so called because
there is a clear 'line' of responsibility and authority right through the management
structure from the board to the lowest level of supervision, and below. Line
organization is also sometimes called 'military organization', because it is how the
armed forces are organized.
Line organization is simple and direct and is easy to understand. The 'chain of
command' (as in the military) is direct and so decisions can usually be made quickly
and implemented rapidly, whilst because of the directness of the control, the
coordination of the activities of all those employed in a department is simplified. The
position (and status) of all the different people working in a department can be easily
seen, and so the extent of their responsibilities, authority and duties can, be clearly
defined and understood, making disputes less likely. (It should be noted, however, that
the various 'line' departmental management posts may not necessarily have the same
status although, for convenience, it is usual to show them at the same 'level' in an
organization chart).
 President

Vice President

Plant Manager

Foreman A Foreman B Foreman C

Staff Staff Staff

Figure 1. 4: Line Organization

ii) Functional Organization: This is the type of organization in which it is the function
(the type of activity), which determines the areas of authority and responsibility (Figure
1.5). An expert or specialist is placed in charge of each function, and will have direct
control of that function wherever it is undertaken within the enterprise. For example,
the personnel manager will have authority over employees in whichever department
they may work, or the office manager may have authority over clerical and secretarial
staff working in any department. This means that ‘line’ managers, in whose
departments the relevant function is being carried out (and who are responsible for all
matters authority relating to their staff) find their authority reduced with regard to
functional activity, to discipline and to staff relationships.
As the functional specialists are not involved in the day-to-day running of the enterprise
(which is the domain of the line managers) they are free to the concentrate on their
particular functions that produce many benefits for the enterprise. However, this form
of organization makes control difficult as there are no clear lines of authority and it is
similarly difficult to establish responsibility when things do not go right. Furthermore,
staff as well as supervisors and junior managers become confused at being subject to
the authority of more than one superior.
 BOSSES

I J K L

A B C D E F G H

OPERATORS
Figure1.5: Functional Organization

iii) Line and Staff Organization: This is a combination of line and functional organizations
and is an organizational structure commonly used successfully. It is important to note
that the word 'staff’ in this case refers not to the workforce of an enterprise or section of
it, but to specialists who act mainly as advisers and who have no executive authority
outside their own departments. In such a structure, the line managers control the primary
functions, such as marketing and production, which are directly concerned with
achieving the objectives of the business; whilst the staff managers are generally involved
with secondary functions which assist the smooth and efficient running of the primary
functions.
You can see that the personnel manager is directly responsible for his own department
and has full authority over its staff. However, although he provides services for the line
managers and supervisors with regard to recruitment of staff, staff records, and staff
welfare; he has no authority over the staff in those other departments. For example, the
sales manager will inform the personnel manager of his need to recruit, say, two new
salesmen and job descriptions and some idea of the type of people he requires. The
personnel manager will advertise for or otherwise seek suitable candidates for the post,
undertake preliminary screening and/or testing, and arrange interviews. However, the
sales manager will attend the interviews and, in consultation with the personnel manager,
will make the final selections. The line manager, the sales manager in this case, is thus
free to concentrate on pursuing the (primary) function of his department.

MANAGING DIRECTOR
DIRECTOR

L WORKS L SALES L ACCOUNTS S PERSONNEL

MANAGER MANAGER MANAGER MANAGER

L L
L SECTION MANAGERS SECTION MANAGERS SECTION MANAGERS
SUPERVISORS & SUPERVISORS & SUPERVISORS &
OPERATORS SALESMEN CLERKS
 Figure1.6: Line and Staff Organization

This composite form of organization ensures that the lines of responsibility and
authority are still clear for all (managers, supervisors and staff alike) to see, and
understand, and that the line managers keep full control of their respective departments
or sections, whilst having expert advice and assistance available in many subsidiary
areas. The relationships between the line managers and the staff managers must be
clearly defined, and cooperation between them must be encouraged. There is no value,
for instance, in a line manager continually rejecting or refusing to consider or accept
the advice or assistance of the personnel manager, whilst the personnel manager must
not be permitted to usurp the authority of line managers.
One other advantage of line and staff organization is that 'staff departments’ can be
introduced fairly easily into an existing enterprise, whose organization may have
evolved (as in the example of the retail business) on the line system as the enterprise
has expanded. Many but not all, line managers are only too happy to delegate
responsibility to specialists for certain routine activities not directly involved in
achieving the objectives of their departments; provided they, the line managers, still
have the 'final say'.
iv) Matrix Organization (Project Organization): These are temporary organizational
structures formed for specific projects for a specific period of time and are dismantled,
once the required goal is achieved. A typical example for this kind of organizational
structure can be the goal to design and build a new airport. For this project, the
specialists from different functional departments will be drawn to work together. These
functional departments are production, engineering, quality control, safety, marketing
research, etc. When the project is completed; these specialists go back to their
respective duties. The specialists are selected primarily on the basis of task-related
skills and expertise rather than decision making experience or planning ability.
These structures are very useful when:
 The project is clearly defined in terms of objectives to be achieved and the target
date for completion of the project.
 The project must be separate and unique and not be a part of daily work routine
of the organization.
 There must be different types of activities which require skills and specialization
and must be coordinated to achieve the desired goal.
  The project must be temporary in nature and not extended into other related
projects.
This kind of organization occurs frequently in:
 Construction ( e.g. building a bridge)
 Aerospace engineering ( i.e. designing and launching weather satellite)
 Marketing( e.g. advertising company for new product)
 Installation of an electronic data processing system, etc.
Figure 1.7 presents an example of how a matrix organization (team) is formed in a
traditional organization. The agency depicted uses functional design during normal
periods, but during an emergency, the functional departments are regarded as pools of
personnel from which teams are formed for the purpose of carrying out a specific
operation.

General
Manager

Labor Research Finance Personnel Technical

Services

Project A Manager

Project B Manager

Project C Manager
 Figure1.7: Matrix Organization

A manager is appointed to head the project. The manger has authority over the personnel
assigned to the team and is accountable for the performance of the personnel. When the
project is completed, the personnel return to their respective functional units.
In matrix organization, it is possible for the individual employee to have two managers.
However, proponents of matrix organization believe that it provides an agency with the
flexibility to work on critical projects. Matrix organization also brings together the
specialized talent that is often necessary to complete a project. It preserves the strength
of the vertical structure while adding the strengths of a horizontal cross functional
structure.
Like any other organizational structure, matrix has both strengths and weaknesses. The
major potential advantage is a higher degree of flexibility and adaptability.
Other advantages of matrix organization:
 Decision making is decentralized to a level where information is processed
properly and relevant knowledge is applied.
 Extensive communications networks help to process large amount of
information.
 With decisions delegated to appropriate levels, higher management levels are
not over loaded with operational decisions.
 Resource utilization is efficient, because key resources are shared across several
important programs or products at the same time.
 Employee learns the collaborative skills needed to function in an environment
characterized by frequent meeting and more informal interactions.
 Dual career ladders are elaborated as more career options become available on
both sides of the organization.
Many of the disadvantage stem from the matrix organization inherent violation of the
unity of command principle, which states that a person should have only one boss.
Reporting to two supervisors can create confusion and a difficult inter personnel
situation.
 Other disadvantages include:
 The design encourages managers who share subordinate to jockey for power.
 The mistaken belief can arise that matrix management is the same thing as group
decision making − in other words every one must be consulted for every
decision.
 Too much democracy can lead to not enough action.
1.26.1.27.

1.27.1.28. 1.7.3 Span of Control

By this term we mean the number of people reporting directly to one supervisor or manager. The
number of subordinates who can be effectively supervised directly by one supervisor or manager
can vary greatly from one section or one department to another. An often asked question is "how
many people can a supervisor or manager control?" In the past some writers on management have
given specific answers to this question − usually 6, but sometimes 4 or 5. However, the answer is
not as simple as that because different factors and/or circumstances are involved in different cases.
For instance, not all managers have the same talents or abilities, and some find it difficult
to cope with large number of subordinates. The nature of the work being performed is a significant
factor; if the work is relatively simple and if most employees are performing the same work, large
numbers can be supervised relatively easily. On the other hand, fewer people can be supervised
effectively by one person if their work is complex. The experience and reliability of the workforce
is another factor; fewer new, trained people can be effectively supervised by one person than
untrained people who have been performing the same work for the business for some time.
Obviously the amount of time available for supervision is a vital consideration particularly in cases
where the manager may frequently have to be away from his post during the course of his duties.
Tight closeness of the team to the manager is also a consideration; a sales manager could probably
effectively supervise fewer salesmen whose territories are scattered across a country than he could
if they all sell from one shop or showroom.
Adjustments in spans of control may have to be made from time to time as circumstances
and personnel (both supervisory/managerial and subordinates) change; too wide a span results in
lack of control, whilst too narrow a span involves wasted personnel and an 'over supervised' staff.
Span of management is also called span of control, span of supervision, span of authority
or span of responsibility. The main concern of span of management is a determination of how
many individuals a manager can effectively supervise. To use human resources efficiently,
managers should supervise as many individuals as they can best guide toward production quotas.
Supervising too few individuals will cause wasting a portion of their production capacity. On the
other hand, supervising too many individual will cause losing part of their effectiveness and
probably will become more frustrated.
The main situational factors that influence the appropriateness of the size of an individual’s
span of management include:
i) Similarity of Functions: As the similarity of subordinates activities increases, the
wider the span of management will be appropriate for the situation. The converse of
this statement is also true.
ii) Geographic Contiguity: The degree to which subordinates are physically separated is
geographic contiguity. In general, the closer subordinates are physically, the more
individual managers can supervise effectively.
 iii) Complexity of Functions: Complexity of function refers to the degree to which
activities of workers are difficult and involved. The more difficult and involved these
activities are, the more difficult it is to manage a large number of individuals
effectively.
iv) Coordination: Coordination refers to the amount of time managers must spend to
synchronize the activities of their subordinates with the activities of other workers. The
greater the amount of time managers must spend on coordination, the smaller their span
of management should be.
v) Planning: Planning refers to the amount of time managers must spend developing
management system objectives and plans and integrating them with the activities of
their subordinates. The more time they must spend with planning activities, the fewer
1.28.1.29.
individuals they can manage effectively.
1.30.1.31. 1.7.4 Chain of Command
The chain of command is the formal channel which determines authority, responsibility and
communication. The chain of command relationships is viewed as a series of superior/subordinate
relationships. Starting at the top of the organization and progressing down to the field, the
managerial chain of command can be viewed as a pyramid.
An organization is built upon the premise that the individual at the top possess the most
authority and that other individual’s authority is scaled downward according to the individual’s
relative position on the organization chart. The lower the individuals position on the organization
chart, the less authority she or he possess.
The scalar relationship concept, or the chain of command, is related to the unity of
command concept. The unity of command concept recommends that an individual should have
only one boss. If too many bosses give orders, the most probable result is confusion, contradictory
orders, and frustrated workers, a situation that result ineffectiveness and inefficiency.
Fayol indicates that always adhering to the chain of command is not advisable. Figure 1.8
serves to explain Fayol’s rationale. If individual F needs information from individual G and
follows the concept of scalar relationships or chain of command, F has to go through individuals
D, B, A, C, and E before reaching G. The information would get back to F only by going from G
through E, C, A, B and D. Obviously, this long and involved process can be very expensive for
the organization in terms of time spent getting the information. To decrease this expense, Fayol
recommends that in some situations a bridge or “gangplank” should be used to allow F to go
directly to G for information. This bridge is represented in Figure 1.8 by the dotted line that goes
directly from F to G.
Management should use these organizational bridges with great care, because although F might
get the information from G more quickly and cheaply, individual’s D, B, A, C and E are left out of the
communication channel.

B C

D E

F G

H I
Figure1.8: Example of Organizational Chart Showing that Always Adhering to the Chain of
Command is not Advisable

1.8 The Systematic Approach to Problem Solving

The most important and distinguishing function of a manager is problem solving (or decision making).
Jackson (1974) defines problem solving very simply as "...the business of purposefully inventing and
choosing among ways to get you where you want to go". The steps in the systematic problem solving
approach are:
First step: Formulation of the problem.
 Identify the problem;
 Define the problem and its parameters;
 Collect relevant data;
 Analyze;
 Establish decision criteria (objectives).
Second step: Identify the alternatives.
 Relate the parameters to criteria (model of the problem);
 Generate alternatives by parameter variation.
Third step: Select the best alternative.
 Evaluate the alternatives and choose the one that best satisfies the criteria;
 Implement the decision and monitor the process.
1.31.1.32.

1.32.1.33. 1.8.1 Formulation of the Problem

Identifying a problem is not always an easy task. Often problems in a plant are attributed to other
factors, such as production or quality control, when the underlying cause actually stems from the
handling approach being used.
First, the engineer or analyst should look for relationships between problems within an
operating section or department. The next step is to look for relationships among problems in
different departments. It is important that efficiency be optimized throughout the facility, not just
within one isolated department.
Once a problem has been identified, the next important step is to define it fully. The
problem definition must include its scope. For example, suppose that considerable clutter and
confusion exist at a work area on the shop floor of a plant. What is the scope of the problem? Is
it limited to the work area itself, and attributable to a lack of on-site storage facilities, or poor
workplace handling practices? Or, might the problem also encompass the way materials are being
delivered from the receiving area, or from the adjacent department? Perhaps the delivery of
materials should be in an even flow throughout the day, rather than in large, staggered increments.
Possibly the difficulty is caused by a poor layout of the production area.
 The problem definition should, wherever possible, contain quantitative information. How
many meters is the adjacent department away from the work site? How many square meter of
floor space, or cubic meter of space, have been allocated to storage? How many different parts
and tools are involved, and how have they been organized before delivery to production?
Once the problem is defined, the next step is collection of relevant data that are related to the
problem. Answers to some of the necessary questions may not be immediately available. Rather,
some data collection and analysis may be necessary in order to uncover the desired information.
Often information must be developed regarding the flow of materials through the facility, along
with the types of moves that take place. Care must be taken to ensure that the data being generated
and collected are reliable. The solution that is eventually developed can be only as good as the data
on which it is based.
After relevant data collection, the data should be properly analyzed. A good first step in
analyzing the data is to consider the management principles. These principles are a distillation of
accumulated experience and knowledge on the part of many practitioners and students of
management. As with many such listings, they should be viewed as general principles that can be
used as a starting point in developing a solution. However, they do not represent absolute rules in
any sense. Rather, they should be combined with other factors before arriving at a solution.
1.33.1.34.

1.34.1.35. 1.8.2 Generation of Alternatives

Since the final solution to a problem must come from the state of alternatives generated, it is important
that one attempts to maximize the number, quality and variety of alternative solutions as much as
possible by varying the values of parameters.
There exist a number of aids to creativeness that can improve your ability to generate more
and better alternatives.
i) Exert the Necessary Effort. Set a time limit and force yourself to concentrate on the
problem during the allotted time.
ii) Do not get Bogged down in Details too Soon. Think big initially; the details can be
considered later. An operation research analyst during World War II who suggested that
the German submarine force could be destroyed by boiling the ocean had said, "I'm
supposed to develop solutions not implement them! I leave the details to someone else".
iii) Make Liberal Use of Questioning Attitude. The questions what, who, when, where, how
and why should be applied to problems.
iv) Seek Many Alternatives. Establish a goal for a number of ideas to be generated and work
to achieve it.
v) Avoid Conservatism. Do not restrict yourself to simple variations of the present solution.
vi) Avoid Premature Rejection. This phase emphasizes the generation of alternative
solutions, not the evaluation of these alternatives.
vii) Avoid Premature Satisfaction. Do not terminate the search for alternative solutions
when a seemingly good solution has been generated.
viii) Refer to Analogous Problems for Ideas. Consult trade magazines; look around you;
refer to recent literature and be aware of the large variety of solutions.
ix) Consult Others. Actively seek information and suggestions from others. The more people
actively involved in the generation of ideas, the greater the chance of getting new and
different solutions, selling the final solution, and simulating your own thought process.
x) Attempt to Divorce Your Thinking from the Existing Solution. Employ a black box
approach repeatedly.
 xi) Try the Group Approach. Group approach, popularly known as brain storming, involves
a group of four, five or more persons assembled for a specified purpose. Brain storming a
very general formulation first, followed by a more specific solution, can improve the
benefits of the group approach.
xii) Remain Conscientious of limitations of the mind in this process of idea generating.
In addition to the aids of creativeness, the problem solving phase is further enhanced by introducing
simulation. In order to deal with the complexity of the world, we use models to aid our understanding
of the surrounding environment.
1.35.1.36.

1.36.1.37. 1.8.3 Simulation and Modeling

Simulation is the process of designing a model of the real system and conducting experiments with
this model for the purpose of either understanding the behavior of the system or of evaluating
various strategies (with in the limits set by a set of criteria) for the operation of the system. By a
model we mean a simplified and/or idealized description of a group of objects, ideas in some form
other than the entity itself in order to describe the behavior of the system, to consider theories or
hypothesis, and to use these theories to predict future behavior. [3, 6, 8, 9, 10, 13]
The model of an object may be the exact replica of the object or it may be an abstraction
of the objects salient properties.
i) Functions of Simulation: It may serve one of the two major purposes: either
descriptive for explaining and/or understanding; or perspective by predicting and/or
duplicating behavior characteristics. The following can elaborate the proceeding
expression.
a) An aid to thought: Models can help and organize our fuzzy ideas and
inconsistencies. It forces us to organize, evaluate and examine the validity of
thoughts.
b) An aid to communication: All verbal languages tend to be ambiguous and
indistinct when it comes to presenting complex ideas or descriptions. Properly
made models can help to remove this ambiguity by providing a more efficient
and effective mode of communication. “One picture is worth a thousand words”
indicate the importance of a two dimensional modeling.
c) Training instruction: Models are widely used for training purposes. Mockups
or models of space vehicles used for training astronauts are examples.
d) A tool of prediction: Predicting the behavior characteristics of an expensive
supersonic jet or any other object can be done by studying its performance using
models. These can be production machine, assembly lines, machine cells,
flexible manufacturing system, etc.
e) An aid to experimentation: When direct experiments are impractical or
prohibitive in cost, the use of models allows us to make possible controlled
experiments to study the system and know more about it.

ii) Types of Simulation: Simulation models vary along from physical models to
mathematical models.
a) Physical (iconic) models: Look alike models such as architectural models, plant
layout models, full scales mockups or reduced scale mockups are grouped under
this category.
 b) Scaled models: These types of models are used when a look alike model
building is not possible or sufficient to study the system. Training mockups like
the solar system (scaled down) or model of an atom (scaled up) are examples of
this group.
c) Analogue models: These are models in which a property of a real object is
represented by a substitute property that often balances in a similar manner. An
analogue computer in which the voltage through a network might represent the
flow of goods through a system is a good example. A slide rule in which the
measured property is represented by a logarithmic length along the scale and a
graph are also examples of analogue models.
d) Management games: Humans interact with the computer output and make
decisions on information received. These decisions are then fed back into the
computer as inputs to the system.
e) Computer simulation: It is an extension of management games where the
human interaction is minimum and the computer operates using the engineering
and manufacturing database, artificial intelligence and an inference engine (the
capability) to apply the intelligence to the database). Here the interaction of a
human operator is minimal.
f) Mathematical model: The least one in the spectrum is mathematical model
where symbols rather than physical device are used to represent an activity.
Representing discrete or continuous conditions by mathematical equations is an
example. Since these models are the most abstract and the most general models,
symbols or mathematical models are widely used in system studies.
g) Geometric modeling in CAD: The use of CAD (computer aided design) helps to
develop a mathematical description of the geometry of an object, it is then stored
in the memory. The mathematical description is called the model; it permits the
user to display an image of the model on a graphic terminal and perform certain
operation on the model. The designer can adapt, modify or generate another
design using the model. There are different types of geometric models:
 Two dimensional models: flat object and layout of buildings;
 Three dimensional models: wire framed (i.e. interconnected lines to
depict an object) and solid models (an object is modeled in solid three
dimension.
Two other futures are color and animation. The use of color enhances the ability
of the user to visualize the object on a graphic screen. Animation capability
permits the operation of mechanisms and other moving objects to be displayed
on graphics monitor.
AD
in C
dels

on

ing
l
es

ode
mo

lati
Gam

del
lM
del
del

imu
ical

Mo
Mo
Mo

e nt

tica
er S
s
Phy

tric
em

ma
ge
led

put

me
alo

nag

the
Sca

Com

Ge o
An

Ma

Ma

Exactness Abstraction
 Figure 1.9: Types of Simulation

iii) Elements of Simulation: Several terms will recur throughout any work on simulation.
The following are elements of simulation:
a) Entities: A system is defined as a group or a set of entities limited by some form
of regular interaction or interdependence to perform a certain specified function.
Entities are components of the system such as machines, work-piece, handling
equipment and so on. There are permanent entities (which last the entire duration
of simulation experiment) and temporary entities (which enter the model at some
time and pass through it and leave at some other time.) Machines are permanent
entities and jobs are temporary entities.
b) Activities: These are the things that the entities do or have done to them. In other
words, when two entities meet (a permanent and temporary entities usually) for
a period of time an activity is performed. Processing of a job by a machine is the
coming together of two activities together.
c) Events: Events are instant in time when some changes take place in the model;
when one or more activities begin or end.
d) Queues: These are passive states of an entity that waits for condition to change
so that another activity can. Jobs waiting begin for machines to finish operation
on other parts are said to be in queue.
e) Attributes: These are characteristics of entities such as types of machines, or
number of operations required on a job. Attributes are used to distinguish one
entity from another. The selection of an entity from queue frequently depends
on the attributes of entities in the queue.
f) Set: It is a general concept in simulation to describe queue in the model or a list
of needed and/or available tools or materials in the plant.
g) State: This is the condition of the model or its entities. It refers to entities being
in an active state or passive state depending on whether they are engaged in an
activity or are waiting in a queue.
The following example of Figure 1:10 illustrates an activity cycle for a simple machine shop. Jobs
from (customer) outside arrive to be processed and wait in the queen until a processing machine
is free and then the required operation is performed on the parts before they are released to the
customer.
 Jobs coming from outside (entities)
 Arrive (activity of zero time)
 Wait (queue)(temporary entities)
 Process (Activity- a permanent entity meets a temporary entity i.e., a machine operates on
a part)
 Leave (activity of zero time)
 Idle (queue of permanent entities)
 Outside world (queue) unfinished and finished temporary entities.
 OUT SIDE WORLD

ARRIVE WAIT LEAVE

Key
PROCESS
Activities
Queues
Temporary Entities
IDLE Permanent Entities

Figure 1.10: Cycle Diagram

iv) Building a Simulation Model: There may be different approaches to developing a

simulation model. However, there are seven steps that need to be followed in order to
develop a sound simulation model. (Refer Figure 1.11)
1) Define the system: In system definition each entity has to be identified and its
attributes indicated. What is to be produced? In what quantity, volume, weight?
The types of machineries, their number’s and characteristics, material movement,
unloading and storing, conveying positioning, packing, dispatching, type of
assembly system, types and number of operations on materials, etc.
2) Model formulation: After defining the system, the next step is to reduce the real
system to logically flow diagram or static model. We need to construct a model
that will not over simplify the system to the point where the model becomes trivial
or carries so much detail that it becomes clumsy and expensive. In building a model
we need to identify the vital flow from the trivial many. Pareto states that nothing
significant can happen unless it happens to the vital few.
3) Data collection and model translation: Every study involves data gathering. The
system analyst must collect all the necessary data and analyze the input and output
data. He needs to analyze the interdependence of the data collected. Eventually, he
is left with the translation of the defined system and the collected data to a
computer acceptable language.
4) Validate the model: there are sets of factors which limits the validity of a model.
a) Simplifying assumption: In model building if many simplified assumptions
are used then the model will be trivial and may not be used to study a system
but can be considered to compare two systems.
 b) Transient conditions: In general we start the model empty or at an average
condition. If empty then we will not have data. If average, the data that we will
have is not real. As a result we need to have a run-in period.
c) Bias in random sample: To avoid bias in random sample a repeated
experiment has to be conducted.
d) Accuracy of data used: Generally run the model several times using normal
distribution for the demand, for example, varying 40 and 50 units per day.
5) Run the model (Experimentation): Once the model is validated it can be run to
access the performance of the system and by using different date the system
sensitivity and its limitations can be observed.
6) Revise the model and repeat the experiment: Any limitation of the model has to
be revised and the experiment has to be repeated until the desired model is
obtained.
7) Implementation and documentation: no simulation project can be considered
successful until it has been accepted, understood and used. Documentation is
closely linked to implementation.

Problem
Formulation

System
Defination

No
Simulation Stop

Yes

No
Model Building

No
Data Collection

Translation

Bad
Validation

Good
 Figure 1.11: Flow Diagram of Building a Simulation Model

v) Some Developments in Simulation: Simulation is advancing forward as we are in the

21st century. The development trend is observed as a result of increasing power of
personal computer, availability of good quality graphics, and the development of model
building and other techniques to make simulation easier to use. Some new ways of using
simulation is observed in:
1) Just-in-Time Controlled System: Most manufacturing firms have the idea of JIT.
This requires a new approach to organize the manufacturing system. One of the
effects of this change is that the manufacturing systems now require operating on
a pull method rather than on a push basis. This change in approach demands a
rethink in simulation models. As with many manufacturing systems simulation
models are based on the push principle. New packages are emerging with approach
to the model building process from this standpoint.
2) Simulation and FMS Control System: For models to be studied at the negotiation
stage and to have a faithful mission of a real system a supplier must provide
adopted control software to operate in simulation mode at 60 times the real speed.
Hence the simulated model is being controlled as in real system. The development
in control software should develop to include control simulation.
3) Application of Expert System in Simulation: One of the most significant
developments is the application of expert system to simulation. The field of expert
system and artificial intelligence is very broad and they are moving very fast along
the development of electronics technologies to provide easy to handle software for
simulation so as to make simulation models as close as real systems.
1.37.1.38.

1.38.1.39. 1.8.4 Selection of the Best Alternative

In this phase of the problem solving process, alternatives are evaluated and the one that best fits
the criteria is selected. Furthermore, the selected alternative is implemented and the process
monitored. Decisions are more complex when the data describing the variables are incomplete or
uncertain. The degree of uncertainty is classified as:
a) Complete Certainty: All relevant information about the decision variables and the
outcome is known or assumed. In this case, we use break-even, cost-benefit analysis,
linear, nonlinear or dynamic programming to select the best alternative.
b) Risk: Information about the decision variable or the outcome is probabilistic. In this case,
we use statistical analysis, queuing theory, simulation, heuristic methods, network
analysis techniques, etc.
c) Extreme Uncertainty: No information is available to assess the likelihood of alternative
outcomes. In this case, a game theory and flip-a-coin techniques are used.
i) Procedure for evaluating alternatives by factor analysis: The most effective general
method of evaluating alternatives is termed as factor analysis. It follows the engineering
concept of breaking down the problem into its elements and analyzing each one.
a) Identify the alternatives to be evaluated.
- Select the alternatives that are to be evaluated.
- Have a clear statement of each alternative in front of each evaluator, during
the evaluation process.
- Identify each alternative by letters A, B, C, etc. Also give it a brief three-to-
five words description.
b) Establish the factors or considerations.
- Establish what factors, consideration criteria or objectives are involved, or
wanted from the alternative.
- Define the factors so that they are clearly understood. Avoid duplication of
terms and congestion as to meaning.
c) Arrange a rating sheet.
- List the factors or considerations vertically on the lines of a sheet of paper.
- Arrange the identification letter for each alternative horizontally in columns
across the same sheet.
- Leave room for adequate reference notes.
d) Determine the relative importance of each factor.
- Determine the weight or importance value of each factor relative to the other
factors using relative rating, comparative rating or any other rating.
- Record by whom the weight values are determined.
e) Rate each factor for each alternative.
- Establish a rating code or system.
- Rate each element on the extent to which it achieves, or affords the ends
represented by the factor in question - - - rating each layout exactly as it is
planned.
- Rate all the plans for one factor; then take the next factor.
- Record by whom the rating(s) was (were) made.
 f) Calculate weighted value and total.
- Translate the rating symbols into numerical values and multiply the weight
value by each rating number.
- Total the weighted rating values for each alternative plan by adding the
respective columns.
- Record by whom the extension and tally were made.
- Take actions as appropriate, based on the totals.

RATING & WEGHTED RATINGS

COMMENTS
FACTOR/CONSIDERATION WT.
A B C D E

1. Convenience of service U U U U
10 0 20 20 20

2. Ease of supervision 6 0 A E E
6 24 15 15

3. Flow of materials and handling equ. 10 0 U I E

10 0 20 30

4. Flexibility 12 0 E I E
12 36 24 30

.
n. Investment cost (building alterations)

TOTALS 55 103 100 137

Notes: A- Almost perfect (4), E- Especially Good (3), I- Important Results Obtained (2),
O - Ok, Ordinary Results (1), U - Unimportant Results Obtained (0)

Figure 1.12: Evaluating Alternatives Using Factor Analysis

ii) Choosing the Solution: Whenever possible, tests should be applied to various alternative
approaches. In some cases, alternative schemes might be tested with simulation models
(section 1.8.3) or other quantitative techniques. In other cases, particularly those involving
bulk solids, laboratory or pilot-plant runs may provide required data. The various proposed
solutions should also be tested against economic criteria. Factors such as cash flow,
investment, tax, credit, and income tax must always be taken into account. After technical
and economic factors have been considered, however, another set of factors that must be
dealt with are the intangibles. Often, these items can tip the scales in one direction or another.
Typical intangibles include the following:
- Increase in morale
- Job enrichment
- Improved customer service
 - Compatibility with company philosophy
- Operating feasibility (considering availability of labor and
skills)
- Operator comfort
- Ability to cope with changing conditions
- Adaptability to future changes in technology
- Adaptability for expansion (or reduction)
- Quality of service
- Reputation with customers and vendors
- Durability of equipment
iii) Applying the Solution: Once a preferred solution has been identified, the major challenge
is developing the implementation plan. Obviously a different degree of effort and expertise
is required to obtain machine or equipment. Depending on the complexity of the job,
assistance may be required from equipment manufacturer’s, distributor’s, consultant’s, and
systems contractor’s.
Generally, the following steps are involved in implementing the solution:
 Develop specifications
 Evaluate suppliers
 Evaluate bids
 Select suppliers
 Award contracts
[

iv) Develop specifications: It is very important that the bid specification be written and well
organized, and spell out clearly and precisely what various vendors will be bidding against.
Even in a small job, involving only a few pieces of equipment, competitive bids can vary
widely in price if vendors do not understand clearly what the specifications are to which they
must bid. As a minimum, requests for bids should be accompanied by scaled drawings
whenever appropriate. If larger systems are involved, consultants are often brought in to
assist with bid preparation.
v) Evaluating Suppliers: For a system of any significant size, qualifying those suppliers that
will be invited to submit bids is an important part of the bid preparation process. Evaluation
of supplier capabilities is also a factor when subsequent bids are being evaluated. Depending
on the scope of the project, it might be a good idea to tour the prospective supplier's facilities,
with the following questions in mind.
- What is the condition of the supplier's plant?
- How well organized are plant operations?
- What is the condition and age of equipment?
- How good is the quality control?
- How busy is the supplier?
- Will his workload permit him to give proper attention to my project?
- What full-time skills are available in mechanical, electrical, and structure
crafts?
- How about data processing capabilities?
If possible, customers of the supplier also should be visited to see how their systems are
 working out. If possible, operators and mechanics should be interviewed, as well as
supervisory and managerial personnel, in order to get a balanced viewpoint. Information
about the following matters should be sought:
- How smooth was the system installation and start-up?
- Did the supplier assist in setting up a training program for the user's
personnel?
- How helpful was the supplier in setting up a maintenance program and spare
parts inventory?
- Was the supplier effective in solving problems that surfaced during
installation and start-up?
- Did supplier personnel have adequate skills, and were the same people
available throughout the duration of the project?
- Is the system delivering what was promised in terms of performance and
uptime?
iii) Evaluating the Bid: An important part of evaluating competitive bidders is making sure that
all vendors are bidding to the same specifications. This job is made easier when well-written,
precise specifications are prepared in advance. Otherwise, prices quoted may have no relation
to duty classification or construction grade of equipment quoted.
In the case of a large system or facility, a performance specification may be the basis on
which prospective suppliers bid. This type of specification spells out the type of performance
required, but does not necessarily restrict the supplier to the type of approach to be used.
Rather, the burden is on the bidder to suggest the approach to be taken.
iv) Selecting the Supplier: When such a performance specification is evaluated, a meticulous
cost analysis is an important if not the major part of the evaluation. Operating costs as well
as initial costs must be evaluated carefully for every alternative approach. Anticipated
maintenance costs and spare parts inventory costs are among the items to be included in the
operating cost category. In a surprisingly large number of cases, the initial cost of a system
does not represent the overriding consideration when compared against total life-cycle costs.
Obviously, absolute cost figures should be balanced against perceptions of overall supplier
capabilities. A supplier presenting the lowest overall cost bid may also carry the lowest
overall confidence level. Qualitative judgments must be made at this point. In some cases,
numerical point rating systems might be applied to help factor such issues into the evaluation.
v) Awarding the Contract: Once the supplier has been selected and the winning bid chosen,
the contract must be awarded. Often the success of the system fails down at this point.
Practicality must be kept in mind when the contract is drawn up. The important thing is that
the system meets performance specifications, on time, and within budget. The supplier
should not be bogged down with an overly restrictive contract that limits his abilities to
perform. On the other hand, the needs of the customer, as identified and approved by top
management, must not be compromised. Basically, the contract should be viewed as a tool
for helping both parties-the customer and the supplier-in managing the project. A good
materials handling contract generally contains the following elements.
 Review Questions

1. What are the various skills that an effective manager must possess? Are all these skills
equally important?
2. What are the five major functions of management? Is planning the most important function?
If so, why?
3. Discuss the three main characteristics of MBO.
4. What are the advantages and the limitations posed by MBO which brings to the organization?
5. What are the three types of business organization?
6. What are the general five elements in which planning is composed?
7. What are the main steps of organizing process?
8. Discuss the types of organizational structures, what are the merit and the demerits of each
type?
9. List out the principles of controlling.
10. What personal qualities needed for managerial success?
11. What are the steps needed in systematic approaches of problem solving?
12. Define simulation and discuss the different steps used in simulations.
13. What are various criteria needed for supplier selection?
 Reference

1. Buffa, Elwood S. 1985. Modern Production/ Operations Management. Delhi: Wiley

Eastern Limited.
2. Cambridge Tutorial College.1998. Business management/ Administration. Cambridge.
Service to Management (International) Limited.
3. Chandan, J.S.. 1987. Management: Theory and Practice. New Delhi: Vikas Publishing
House Pvt. Lid.
4. Hutchinson, G. H., 1975. Introduction to the Use of Activity Cycles as a Basis for Systems
Decomposition and Simulation, Simuletter, Communication of the ACM, Volume 28.
5. Little, L. D. C. 1970. Models and Managers: The Concept of a Decision Calculus,
Management Science, Vol. 16, No. 8, Apr.
6. Massie, Joseph L. 1982. Essentials of Management. Delhi: Prentice- Hall of India.
7. Pidd, M. 1984. Computer Simulation in Management Science. London: John Wiley.
8. Poole, T. and Szymankiewicz, J. 1977. Using Simulation to Solve Problems. London:
McGraw-Hill.
9. Pritsker, A.A.B. 1974. The GASP IV Simulation Language. New York: John Wiley.
10. Riggs, James L. 1970. Production Systems: Planning, Analysis & Control. New York: John
Wiley & Sons Inc.
11. Rob, Thompson. 2007. Manufacturing Processes for Design Professionals. UK: Thames
& Hudson.
12. Schey, John A. . 1999. Introduction to Manufacturing Processes. 3rd edn. New York:
McGraw-Hill Science/Engineering/Math.
13. Taylor, Frederick W. 1972. Scientific management comprising shop management, the
principle of Scientific management and testimony before special house committee. USA:
Green Wood Pub Group.
14. Tocher, K.D. 1963. The Art of Simulation. London: English Universities Press.
15. Whetten, David A. & Cameron, Kim S.. 2006. Developing Management Skills. 7th edn.
New Jersy: Prentice Hall.