Ipe 481 Nabila Madam

INDUSTRIAL MANAGEMENT
(CLASS NOTES OF NABILA MADAM: 1 TO 15)
Prepared By,
S. Ehtesham Al Hanif <Hridoy>

Department of Mechanical Engineering
Bangladesh University of Engineering Technology
Mobile No: 01670839383
Email: seahrhdioy@gmail.com
Email: seahhridoy@gmail.com
Industrial Management (S. Ehtesham Al Hanif [ID: 0510035])
Lecture: 01
<Managing and Manager>
Characteristics of organizations:
1) Structure
2) Resource
3) Goal
4) People
BUET: educational organizations
Definition of organization:
Two or more people work together in a structured way to achieve a goal or set up goals.
Management:
The process of planning, controlling, leading and organizing the work of organization’s members
and of using all available organizational resources to reach the stated organizational goal
Manager:
Organizational members who tell what to do and how to do
Efficiency: doing things right
Effectiveness: doing the right things
Plan: short time thinking
Mission: long term thinking to make successful plan
Vision: long term thinking to make future better
Interactive management process:
Planning
Controlling Organizing
Leading
Fig: interactive management process
Types of manager:
1) Front line manager
2) Middle line manager
3) Top line manager
(1) Front line manager: dealing with bottom line such as assistant manager, area manager,
supervisor and labor etc
(2) Middle line manager: dealing with co-ordination such as GM, marketing manager, industrial
manager etc
(3) Top line manager: dealing with top level such as CEO, COO, MD, chairman, president, vice-
president etc
Based on works:
1) Functional manager
2) General manager
(1) Functional manager: responsible for a functional work. Such as HR manager, marketing
manager, operation manager etc
(2) General Manager: having combined responsibility to observe a group of work or responsible for
whole function. Responsible for a complex unit, a company or its subsidiary or an independent
operating division
Industry
General Manager
Plant 1 Plant 2 Plant 3
Functional manager
Production Marketing Finance
Managerial skill or management level and skill:

1) Technical skill
2) Conceptual skill
3) Human skill
(1) Technical skill: ability to use techniques, procedures and knowledge of a specialized field
(2) Conceptual skill: ability to co-ordinate and iterate all of organization’s activity
(3) Human skill: ability to work with motivation and understand other people
Top manager T H C
Middle manager T H C
Front line manager T H C
Henry Mintzberg:
Role of a manager:
(1) Head
(2) Liaison inter personal role
(3) Symbol
(4) Monitor
(5) Share information informational role
(6) Spokes person
(7) Take initiative

(8) Handle disagreement
(9) Allocate and resource decision making role
(10)Negotiation
Lecture: 02
<Evolution of Management Theory>
[1] Scientific management theory:

- Proposed by Frederick W. Taylor
- Title: father of scientific management
- Book: principles of scientific management
- Worked in Pennsylvania (Midville steel company)
Four basic principles:

(1) Development of a true science management
(2) Scientific selection of worker
(3) Scientific education and development of worker
(4) Intimate, friendly co-operation between management and worker
Differential Rate System:

- Proposed by Henry L. Grantt
- Accomplishing work timely to get bonus for that
- Example: If one worker did his job finish in time he will get 50 cent bonus for that.
Supervisor will get bonus for each worker under him do work in time
Fatigue and motion study:

- Proposed by Frank B. & Lillian Gilberth:
- Psychologist
- By research they reduce body movement to finish a work
- Example: For exterior brick: 18 movements to 5 and interior brick: 18 movements to 2
[2] Classical organizational theory:

- Proposed by Henry Fayol
- Fayol’s 14 principles of management
- Those principles are:
o Division of labor (work divided into small part)
o Authority (ordering power of manager)
o Discipline (doing ones work in time by following regulations)
o Unity of command (worker will obey ones order)
o Unity of direction
o Subordination of individual interest (priority to group interest)
o Centralization (lessen worker decision making nature)
o Order (right person at right place and time)
o Remuneration (wage will be enough with respect to his job)

o Equity (to grow mentality to not to give up job)
o Stability of staff
o Initiative
o Team spirit
o The hierarchy
[3] Bureaucratic Management:

- Proposed by Max Weber
- Rules and regulation strict environment impersonal
Organizational Behavior:
- The field of study concerned with the action of people at work
Hawthorne experiment:
- Proposed by Elton Mayo
- Worked in Western Electronics Company: how to increase productivity of worker by
changing variables
- Why he called: select a test group and increase light intensity and observed that productivity
increased and then he reduced the light intensity and make it close to dark but there is no
certain amount of change in production. So it is not a production rate factor. By increasing
wage of that group nothing changed. So the company called Elton Mayo ( Professor of
Harvard University)
Hawthorne Effect:
Employees would work harder if they believe management is concerned about their welfare and
supervisor paid special attention to them. This phenomenon is known as “Hawthorne Effect”.
Lecture: 03
Behavioral Science Approach:
- Proposed by Abraham Maslow
- Known as “Maslow’s Hierarchy of Need”
- Provided by organization
Self Actualization Need (activity to develop itself)
Esteem Need (honor, pride)
Social Need (love, affection, friendship)
Safety and Security Need (shelter)
Physiological Need (food)

Theory X and Theory Y:

- Provided by McGregor
- Two theories. These are: (a) Theory X and (b) Theory Y
- Theory X: work is distasteful and employees must be motivated by force, money or praise
- Theory Y: people are inherently motivated to work and do a good job. People relish work
and eagerly approach to work to develop their creative capacities
[4] Systems Approach:

View of organization as a unified, directed system of interrelated part
External Environment
Conversion
Input Process Output
Feedback
Key Concept:
(a) Subsystem: parts those are making whole system

(b) Synergy: it means whole is greater than sum of its parts
(c) Open system: the system that interacts its environment
(d) Closed system: the system that doesn’t interact with its environment
(e) System boundary: every system has a system boundary that represents the system from its
environment
(f) Flow: every system has flow of energy, information and material
(g) Feedback: keys to system control
[5] Contingency Approach:

Management techniques might vary with different types of situation. Organizations are
different, problems are different, and so management techniques must be different
Lecture: 04
<Motivation>
Psychological characteristics that contribute to a person’s degree of commitment

Basic Assumptions:
(1) Motivation is commonly assumed to be a good thing
(2) Motivation is in short supply and need of periodic replenishment
(3) Motivation is one of the several factors that goes into a person’s performance
(4) Motivation is a tool with which manager can arrange job relationship in an organization
Early views of motivation:

1) F.W. Taylor
2) Human relations model by Elton Mayo
3) Human resources model by McGregor
(1) Taylor: manager determined the most efficient way to do repetitive jobs and motivate workers
with the system of wage initiative.
(2) Elton Mayo: boredom and repetitiveness of many tasks reduce motivation while social contact
helped to create and sustain motivation
(3) McGregor: Theory X and Theory Y
Contemporary views of motivation:

(1) Need theory : (a) Maslow’s need theory (b) ERG theory (c) Two factors theory
(2) Reinforcement theory
(3) Equity theory
(4) Goal setting theory
(5) Expectancy theory
a) Maslow’s need theory:
Need Drive
Satisfaction Action
A satisfied need is not a motivation. It will be added with previous Pyramid.

b) ERG theory:
a. Proposed by Clayton Alderfer
b. Sub theory:
i. Existence theory ( fundamental needs)
ii. Relatedness theory ( social, love, esteem, pride, friendship)
iii. Growth theory ( self actualization)
c. Pyramid of need will go both in up and down direction
d. When higher needs are frustrated lower needs will return
Lecture: 05
c) Two factors theory:
a. Proposed by Fredrick Herzberg
b. There are two types of facto in case of job satisfaction.
c. Those are:
i. Satisfier or motivating factor: 1753 items or factors
ii. Dis-satisfier or hygiene factor: 1844 items or factors
Hygiene Factor Advancement

Motivator Recognition
Work itself
Responsibility
Growth
Company Policy
Supervision
Salary
Relationship with Superviser
Work Environment
-50 -40 -30 -20 -10 0 10 20 30 40
Percentage of Frequency
Hygiene Factor
Motivator
All factors contributing to job dissatisfaction All factors contributing to job satisfaction
-100 -80 -60 -40 -20 0 20 40 60 80 100
Equity theory:
Ratio between individual’s job input and job rewards.
Expectancy theory:
People choose how to behave from among alternative behavior based on this expectation of
what there is to gain from each behavior.
Four Assumptions:
(1) Behavior is determined by a combination of factors in the individual and environment
(2) Individuals make conscious decision about their behavior
(3) Individuals have different needs, desired and goals
(4) Individuals decide between alternative behaviors on the basis of expectation that a given
behavior will lead to a desired outcome.
The major components:

(1) Performance (outcome expectancy)
(2) Valence (power to motivate): high or low valance
(3) Effort Performance efficiency (to give same effort for desired outcome every time)
Reinforcement Theory:
Stimulus Respons Consequence Future Response
A manager wishes to change employee behavior must change the consequences of behavior.
Four methods of behavior modification:

(1) Positive reinforcement (to be praised for desired work done)
(2) Avoidance learning (avoid those work which responsible for unpleasant consequences)
(3) Extinction (express distaste to a work by ignoring or avoiding)
(4) Punishment (give punishment due to wrong step or bad consequences)
Goal setting theory:

Individuals are motivated when they behave in ways that move them to certain clear goals that
they accept and can reasonably expect to attain.
Assumptions:
(1) Establishment of standard
(2) Evaluate whether the standard can be achieved
(3) Evaluate whether the standard matches personal goal
(4) Standard is accepted goal if it is set, behavior proceeds towards goal
Lecture: 06
<Leadership>
<All managers are leaders but not all leaders are manager. They don’t have any official power>
The process of directing & influencing the task related activities of group members.
Four aspects: -
(1) Other People: Member will respect him as leader
(2) Power
(3) Values: other member will admire values
(4) Influence: influential position over others
Trait approach to Leadership:

(1) Self confidence
(2) Extrovert: exception- Abraham Lincoln
(3) Tall: exception: Napoleon
(4) Bright & Dynamic
Traits must be the results of leadership experience rather than causes of leadership ability.
Behavioral approach to leadership:
Leadership
Function
Group Task Related or

Maintenance Problem Solving
Leadership
Style
Task Oriented Employee

Style Oriented Style
1) Manager took all the decisions; Tell the worker how to do their task; closely monitor worker
2) Duty is placed to worker’s will, how they do and what they do to complete the task
Boss Centered Leadership ↔↔↔↔↔↔ Employee Centered Leadership

Use of authority by manager
Area of freedom for subordinate
Manager Manager sells Manager Manager Manager Manager Manager permit

makes decision present idea, makes present defines limit, employee to
decision & take tentative problem, get ask group to function with
announced it suggestion decision suggestion, make limitation, defined
subject to make decision by superior
change decision
Ohio state and University of Michigan study:
Consideration (Employee oriented), C

Low S High S
High C High C
Low S High S
Low C Low C
Initiating Structure (task oriented), S
Lecture: 07
Leadership Grid:
Robert Blake and Mouton
10 1, 9 9, 9
9
8 Country club manager Team manager
Concern for people
7
6 5, 5
5 Middle of the road manager
4
3 Impoverished manager
2 1, 1 9, 1
1 Authority compliance
0
0 2 4 6 8 10
Concern for production
Contingency Approach to leadership:

Hersey & Blanchards situational leadership model
③ ②
Relationship behaviour
Low T High T
High R High R
④ ①
Low T High T
Low R Low R
Task behaviour
Leadership Style:
Authoritian A I, A II
Consultive C I, C II
Participative G II
A I: manager takes decision based on what information he has
A II: Manager takes decision but took information from sub-ordinate
G II: Employee will take decision
C I: Manager will select based on employee choices (representative of employee can be used)
C II: same as “C I” but manager will contact with employee directly
1) Do I have enough information or skill to solve the problem on my own? If No, (A I) X

2) Do I need to make a high quality decision that my employees are likely to disagree? If yes (G II) X
3) Is the problem structured? No, (C II, G II) X
a. Structured : known problem, known solution as it was arise previously
4) Is the acceptance of the group crucial for success of the decision? If yes (A I, A II) X
5) If the acceptance is important and members are likely to disagree. Yes (C II, G II)
Vroom Yelton Model:

The overall effectiveness of leadership is a function of the effectiveness of the decision, minus the cost
of making the decision, plus the value realized in developing people’s abilities by means of committed
decision making.
Lecture: 08
<Organizational Design & Organizational Structure>
Organizational Design:
The determination of organizational structure that is most appropriate for strategy, people, technology
and task of organization.
Organizational Structure:
The way in which organization’s activities are divided, organized and co-ordinated.
Four Building Block:
1. Division of work
2. Departmentalization : works are divided into various groups
3. Hierarchy : a few sub-ordinate will present and who will be whose under
4. Co-ordination: integration in between several departments
Division of work: (Adam Smith)

Breakdown of a complex task into components
i. Advantages: job specialization, so increases productivity & efficiency

ii. Disadvantages: boredom, absence of sense of control
Departmentalization:
Combine the task in a logical and efficient manner
Hierarchy:
i. Span of management control:- No. of subordinates reporting directly to a manager
ii. Chain of command:- A plan that specifies who reports to whom
a. It affects what happens to work relationship in one particular department
b. Span can affect the speed of decision making
Two types:
Widespan (flat) Narrow span
Wide span is better as decision making can be fast, chance of break of command is less.
i. Co-ordination: Integrating the activities of separate department in order to persue

organizational goal effectively
ii. Differentiator: Barriers towards co-ordination
Lawrence & Lorsch:

1) Perspective : everyone think own as most important than others
2) Time orientation
3) Interpersonal style (want of explanation of their communication are different for different
person)
4) Formality
Lecture: 09
<Organization Design>
Classic Approach: (Max Weber, Fredrick Taylor, Henri Fayol)

- Bureaucracy
- <Bangladesh Secretariat, Ford>
- Organizational structure rigid and well defined
- Characteristics:
i. Specialization of activities
ii. Routinization of activities
iii. Appointment by merit
iv. Provision of career opportunity
v. Rational, impersonal work climate
Task Technology Approach: (Joan Woodward)

1. Unit production (produce 1 customized unit such as tailor knit customize clothes unit)
2. Small batch production ( production process combined with a lot of steps and then assembled)
a. Small batch production: cycle production
b. Large batch production: car production
3. Mass Production (large amount of production of a product from a single machine such as soap
factory)
4. Process production (large process follow line system and example is like: liquid material
production)
Classification of production:
i. Unit and small batch production
ii. Large batch and mass production
iii. Process production
3 Conclusions:
1) The more complex the technology the greater the number of manager and managerial level
2) The span of management for first level manager increases as we move from unit to mass
production but decreases as we move from mass to process production
3) As technology become complex, administrative and clerical staff increases
<Organizational Structure>
Functional Organization:
- Local pharmaceutical company or local bank
Disadvantages:
a. Hierarchy becomes complex when the company becomes larger
b. Accountability diminishes. It become impossible to find out the reason of error of a work
Advantages:
a. Easier supervision
Product / Market Organization:

Division by
i. Geography
ii. Product
iii. Consumer
Example: Multinational Companies
(1) Geography:
- Example: Shevron, Unilever, Nestle etc.

(2) Product:
- Example: Beximco, Rahimafrooz etc

(3) Consumer:
Advantages:
i. High work performance and good co-ordination
ii. Accountability is clear
iii. Burden on central management is eased
Disadvantages:
i. Very expensive structure
Matrix Structure:
- Example: construction company

At first they take a project in their hand. They involve human resource at different part.
After finishing that work, they transfer their HR to another project.
Advantages:
i. Cost saving flexibility

ii. No un-necessary duplication of human resource
Disadvantages:
i. If there is absence of co-ordination among the manager’s then the total structure
will fail down.
Lecture: 10
<Marketing Management>
Market Place – Physical existence present ( Bashundhara City)
Market Space – Digital Existence (Online Selling & Buying, Share Market)
Core Concept of Marketing:

i. Need: generally necessity of something is indicated (we need food)
ii. Wants: specifically mentioned what’s need (we need food but it must be burger)
iii. Demand: ability or capability to fill-up the need (want to buy Mercedes Benz)
Scope of Marketing:
1) Goods : physically something is available (example: rice)
2) Service : what we can’t find out physically (example: doctor, beauty parlors, hospital, airlines)
3) Experience : gathering experience by visiting park, cinema etc
4) Events : sponsorship in sports (puma, nike, soft drinks company)
5) Person : celebrity marketing
6) Places : picnic spot, jamuna resort
7) Property : real estate business
8) Information : newspaper, internet
9) Organization : private university, English medium school
10) Idea : Revlon company
In factory we make cosmetics but in shop we sell hope
Types of Market:
i. Consumer market
ii. Business market
iii. Non-profit and govt. market
In details of those markets are given below:-
(1) Consumer market:

a. a place where normal customer buying products
b. Number of buyers are much more but selling less
c. Advertisement so high
(2) Business market:
a. Number of buyers are less but everyone buy huge quantity
b. Less advertisement
(3) Non-profit and govt. market:
a. Maximum time, products are selled at less price than normal market condition
b. Less or no profit sector
Business Concept:
1) Production concept
2) Product concept
3) Selling concept
4) Marketing concept
5) Social marketing concept
In details of those markets are given below:-
1) Production concept:
a. As less price as possible, products are sold
b. Example: Chinese company
2) Product concept:
a. Whatever the price, quality of product is quite good or high
b. Example: general motors
c. No input taken from customers
d. Consumer will buy product if the quality of product is high
3) Selling concept:
a. Products are sold by giving pain to customer
b. Example: lottery ticket, insurance
4) Marketing concept:
a. Customer target
b. Input taken from customer
c. Product will be produced depending on customers demand and specification
d. Example: nokia, Toyota, Kohinoor etc producing their product for every class customer
e. Production process is going in a continuous progress process
5) Social marketing concept:
a. Presence of social message
b. Example: aarong (local handicraft product), deshal (local brand for clothing, bags)
Lecture: 11
Market segments:
Identify the distinct group of customers and product will be manufactured according to their demand
(1) Geographic segmentation: Hilton hotel built different type or models hotel dependent on the
location such as:- Bangladesh and middle east have difference in Hilton hotel; Sopno
(Bangladeshi company-shopping store house), having their shopping mall size based on location
such as gulshan, dhanmondi etc arena difference.
(2) Demographic Segmentation:
a. Age and life cycle stage: Milk of NIDO having age limit (full cream for children, half
cream for middle age)
b. Gender: Fair & Lovely is manufactured for both male and female
c. Generation:
i. 1946-1964: baby boomers
ii. 1964-1984: generation X
iii. 1984 to present: Generation Y
Based on generation clothes have variation
d. Income: Nokia company (mobile set of different price)
e. Social class: products are manufactured based on particular social class (in foreign
country high class automobile are available such as Roles Royce, Limozine, Mercedes
etc)
(3) Psychographic segmentation:
a. Life style: conscious people eat sugar free food. Who are late sleeper, take tea or coffee
b. Personality: human normally choose dress based on their personality. Example: dress-
up varies from public university to private university & English medium school
c. Values: news-papers kept on household based on political view point
(4) Behavioral Segment:
a. Occasion: increases in price of cattle’s due to eid-ul-fitr and kurbani
b. User status: ex-user, non-user, first time user (telecom company of Bangladesh: closed
sim open bonus for ex-user, decrease call rate for non-user, subscription of zoom 2
months free for first time user)
c. Usage rate: low, medium, high (grammen do business deal with corporate company to
grab customer or user)
d. Loyalty status: hard core loyal (loyal to a fixed brand always;example: Bata), split loyal
(loyal to more than one brand; example: Bata and Apex shoe), shifting loyal (loyalty
towards brand is change after few days)
e. Switches: whatever found they buy that one not follow brand loyalty
(5) Buyer readiness stage:
a. Some people fully aware, some people fully un-aware and some people know few about
new product (marketing also done based on this)
(6) Attitude:
Vote marketing scenario
a. Enthusiastic: just light discussion is enough
b. Positive: needed slight reinforcement
c. Indifferent: try to teach or try to make understandable
d. Negative: can’t be motivated
e. Hostile: never want to go there for convincing even
Effective segmentation:
(1) Measurable:
(2) Substantial: market should be large enough
(3) Accessible: market should be accessible (example: pepsi company established place for them by
removing the cocacola compaies power over market)
(4) Actional: different action should be taken
(5) Differentiable:
Selecting and entering target market:

(1) Single segment concentration: targeting a small market by just a single product (such as: vox-
wagen, porche, puma start car manufacturing just for one sector of a market)
M1 M2 M3
P1
P2
P3
(2) Specialization: targeting different market by different product (such as: star world, star sports,
star movies, mobile companies etc)
M1 M2 M3
P1
P2
P3
(3) Product specialization: targeting all type of market by just a single product (microscope
manufacturing for doctor, engineer etc)
M1 M2 M3
P1
P2
P3
(4) Market specialization: for a particular market, production of every type of products (example:
jordana produces every types of products for female consumer)
M1 M2 M3
P1
P2
P3
(5) Full market coverage: producing different types of product for all types of market coverage
(example: sony company, toshiba etc)
M1 M2 M3
P1
P2
P3
Lecture: 12
<Product life cycle>
What will be the life cycle of a product after it is launched in market?
Maturity
Decline
Growth
Sales revenue / profit
Introduction
Due to technical
advancement, product will
be obsolete in market
Time
Example:
Intro – apple’s ipod, wi-max (Qubee, Banglalion)

Growth – laptop
Maturity – car, desktop
Decline – type writer, cd, newspaper, normal camera
Growth-lumped maturity pattern:
Time
At first when a product launched in market having great demand but after a long time it will be mature.
Example: apple’s i-phone, djuice sim etc

Cycle Recycle pattern:
Example: Pharmaceuticals Company
When a product come to the decline stage then those company manager increase their advertisement
so that there could create sharp change in demand.
Scalloped Pattern:
Example: mobile phone
At first mobile phone set are used for communication purpose only. After stabilized, it enriched its
features. Such as: camera built in, walk-man, internet browsing etc. it’s in ever increasing pattern in the
field of its own development.
Buying Behaviour:
(1) Complex buying behaviour
(2) Dissonance reading buying behaviour
(3) Habitual buying behaviour
(4) Variety seeking
In details discussed below:
(1) Complex buying behaviour:

After a lot of thinking consumer buy a product. Example: car, laptop etc.
(2) Dissonance reading buying behaviour:
Even after buying costly product, consumer does not satisfied fully. Example: buying carpet,
dress (at the time of buying its feeling good but after buying consumer think that this was not
that much better)
(3) Habitual buying behaviour:
Consumers buy a product without thinking about anything. Example: rice, egg etc.
(4) Variety seeking:
Variation and variety checking case, we buy some product such as ice-cream, biscuit, chocolate.
Designing competitive strategies:

(1) Market leader
(2) Market challenger
(3) Market follower
(4) Market nicher
In details discussed below:
(1) Market leader:

Market share is more than 50%. Example: soft drinks - cocacola, food business – macdonalds,
mobile – GP, computer software - microsoft
(2) Market challenger:
After market leader who has majority in share in market and always challenge market leader
Example: warid, baglalink, apple, burger king, pepsi etc
(3) Market follower:
Try to alive in the market by producing product as like market leader
(4) Market nicher:
Does not compete with others. They poses small customer base. Example: porche, only make
sports car.
Strategy of market leader:

(1) Expanding total market
(2) Defending market share:
Tackle other company when they are in competition. Such as: when warid provide any new tariff
offer then GP also provides some offers by reducing their tariff too.
(3) Expanding market share
Market challenger:
(1) Price discount
(2) Cheaper good
(3) Improved service (warranty is much more provided by others than Rahimafrooz)
(4) Product innovation (throw challenge towards market leader by launching new products)
(5) Product pliferation (varieties of goods are used for challenge such as when apple throw
challenge by launching Ipod in market then Microsoft launch Zune)
Objectives of Niche Marketing:

It has two main objectives. These are:
(1) Protect Niche marketing

(2) Increase customer number
Market Follower:
(1) Counterfeiter: exact copy of market leader’s product and launch them in the stable market.
Example – Zinzira made products
(2) Cloner: copy sophisticatedly. Example: Nokia – Nokla
(3) Imitator: give their own brand name but copy market leaders product and cheaper in price
(4) Adapter: steal idea of product but they improve the product and manufactured that product.
Such as, windows OS copy a lot of thing form MAC.
Lecture: 13
<Performance Appraisal>
(1) Ranking
a. Simplest and oldest method of performance appraisal
b. Compare everyone with everyone
c. Example:
i. 5 employees are A, B, C, D, E
( )
ii. No of choice of ranking = = = 10
d. Presence of Biasness
e. Complexity arise when ranking system allotted among employees
(2) Person to person comparison:
a. Always compares everyone with some key person
b. Determine a few characteristics at first
i. Such as (1. Leadership 2. Initiative 3. Dependability)
1. Supervisor will give points on those categories (example: if a employee
did good work and show good performance then he will get 5 points
and based on that others will be pointed or scored)
(3) Grading:
a. It is first used by US Federal Civil Service
b. It is categorized into 3 parts (satisfactory, unsatisfactory and outstanding)
c. In a few company 5 grade is available (A, B, C, D, E) and also some condition is applicable
i. They should give 50% A, 40% B like this. So it is not that easy to give someone
grade.
ii. A few % of employee give those grades which is known as Forced Distribution
(4) Graphic Scale:
a. 57% company used this method (most commonly used)
b. Every supervisor provided with 1 sheet like below:
category Consistently Occasionally Consistently Sometimes Always

unsatisfactory unsatisfactory satisfactory superior superior
1 Quality
of work
2 Quantity
of work
3 Attitude
4 ………….
Total 12 categories included in 5 groups
(5) Checklist:
a. Most easiest for a supervisor
b. Questionnaire provided for employee related
c. For different employee different types of series of questions are set depending on their
types of work
d. Two option provided for each question (yes and no)
(6) Behaviorally anchored rating scale:
a. Behavior expectation scale: what are expected behaviour from an employee
5. Get good marks in exam
4. Get good marks in CT
3. Attendance good
2. Regular at study
1. Attendance good
Disadvantages: if we give someone 5 then we can assume that he full-filled every lower
scale. But in reality it may be not true. Who do well in term final he may be not regular
in class.
b. Behaviour observation scale: by observing behaviour supervisor did this ranking

Example:
a. Does he say plz & hello to his customer?
Almost never  1 2 3 4 5  Almost always
b. Does he smile?
50%<  1 ; 50-64%  2 ; 65-79%  3 ; 80-89%  4 ; 90%>  5 ; 100%  almost
always
(7) Essay description:

One employee should be ranked among 3 categories and should have to describe behind the
reasons.
(1) Marginal
(2) Competitive
(3) Excellent
Lecture: 14
Forced choice description:
- Probability is less in case of biased nature towards employee
- Pair of question will be provided to supervisor
- It is forced to supervisor to answer minimum one Question answer among pair of questions
- In each pair all could be positive or negative in nature
- This method is not popular because people do not keep the answers in secret
- Example 1:
o Can be dependent upon to complete any job assigned?
o Gives clear, good instruction to sub-ordinate
- Example 2:
o Makes promises that he or she knows can’t be kept
o Shows favoritism towards some employees
The appraisal program:

- Who is to rate an employee?
o immediate supervisor who is in touch always, he will rate that employee at first then
send that report to management)
o Sometimes group appraisal is done to make rating of employee where supervisor
and sub-ordinate combined-ly giving rating
- When to rate?
o Appraisal made in every 3 month after of jobs of employee
o Rating made in every 6 months
o Better practice to give rating different person at different times
o In general, july in a year is the optimum time to make rating
o Training of the rater: who did rating should be taught how to rate and give solution
of his mistakes in case of rating. Example:
 Halo error: comment good or bad depends on just only one characteristics
 Central tendency error: without knowing or knowing less, sometimes rating
is made and that is common number or type rating
 Similar to me error: whom one think like him, rated highly and favoritism
 Systematic / constant error: (1) too harsh (2) too easy
3 7
 Constant error: due to making sequencing error happened. If a employee

did well in 1st 7 question out of 10 then his ranking become good in overall
even after just 7 out of 10 answer
 Position error: higher position human got higher rating and lower position
human got lower rating
 Biases of gender, race, religion:
Lecture: 15
Marketing Management
(From Sheet)

Ipe 481 Nabila Madam

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ipe 481 Nabila Madam

Uploaded by

Copyright:

Available Formats

INDUSTRIAL MANAGEMENT

(CLASS NOTES OF NABILA MADAM: 1 TO 15)

S. Ehtesham Al Hanif <Hridoy>

BUET: educational organizations

Efficiency: doing things right

Effectiveness: doing the right things

Plan: short time thinking

Mission: long term thinking to make successful plan

Vision: long term thinking to make future better

Interactive management process:

Managerial skill or management level and skill:

(7) Take initiative

[1] Scientific management theory:

Four basic principles:

Differential Rate System:

Fatigue and motion study:

[2] Classical organizational theory:

o Remuneration (wage will be enough with respect to his job)

[3] Bureaucratic Management:

Self Actualization Need (activity to develop itself)

Esteem Need (honor, pride)

Social Need (love, affection, friendship)

Safety and Security Need (shelter)

Physiological Need (food)

Theory X and Theory Y:

[4] Systems Approach:

(a) Subsystem: parts those are making whole system

[5] Contingency Approach:

Psychological characteristics that contribute to a person’s degree of commitment

Early views of motivation:

Contemporary views of motivation:

A satisfied need is not a motivation. It will be added with previous Pyramid.

Hygiene Factor Advancement

-50 -40 -30 -20 -10 0 10 20 30 40

-100 -80 -60 -40 -20 0 20 40 60 80 100

The major components:

Stimulus Respons Consequence Future Response

Four methods of behavior modification:

Goal setting theory:

Trait approach to Leadership:

Behavioral approach to leadership:

Group Task Related or

Task Oriented Employee

Boss Centered Leadership ↔↔↔↔↔↔ Employee Centered Leadership

Area of freedom for subordinate

Manager Manager sells Manager Manager Manager Manager Manager permit

Ohio state and University of Michigan study:

Consideration (Employee oriented), C

Initiating Structure (task oriented), S

Contingency Approach to leadership:

A I: manager takes decision based on what information he has

A II: Manager takes decision but took information from sub-ordinate

G II: Employee will take decision

C II: same as “C I” but manager will contact with employee directly

1) Do I have enough information or skill to solve the problem on my own? If No, (A I) X

Vroom Yelton Model:

Four Building Block:

Division of work: (Adam Smith)

i. Advantages: job specialization, so increases productivity & efficiency

Widespan (flat) Narrow span

i. Co-ordination: Integrating the activities of separate department in order to persue

Lawrence & Lorsch:

Classic Approach: (Max Weber, Fredrick Taylor, Henri Fayol)