INTRODUCTION TO INDUST
MANAGEMENT
,UNIT 1 — INTRODUCTION TO INDUSTRIAL MANAGEMEN
1. System Concept:
A ‘system’ is a group of interrelated parts working together to achieve a comm
In Industrial Management, every organization is viewed as a system that conv
outputs.
Main Elements of a System :
• Input → materials, men, machines, money, information.
• Process → conversion activities.
• Output → goods or services.
• Feedback → helps control and improvement
• Environment → external factors affecting the system.
Types of Systems:
• Open System – interacts with external environment (industry).
• Closed System – no interaction with outside world. (Pre-programm
System Behaviour :
• Stable – outputs remain constant over time.
• Unstable – outputs change erratically.
• Dynamic – adapts to feedback and changes.
PYQs:
• (No direct question in 2022 – 2024 PYQs ) – Still conceptually imp
2. Management – Definition and Functions :
Definition: ‘Management’ is the process of planning, organising, staffing, dire
resources to achieve objectives efficiently and effectively.
Main Functions of Management:
• Planning : Setting objectives and deciding actions.
• Organising : Arranging people and resources for work.
• Staffing: Recruiting and training employees.
• Directing: Motivating and guiding staff.
, 3. Organisation Structure – Definition, Goals, Factors & Types :
Definition : An organisation structure is the systematic arrangement of peopl
goal.
Goals :
• Coordinate activities for efficiency.
• Define roles and authority clearly.
• Ensure communication and control.
Process of Creating Organisation :
Define objectives.
Identify major activities (production, sales, finance).
Group activities into departments.
Assign authority and responsibility.
Establish reporting relationships.
Coordinate and review performance.
Types of Organisation Structuare :
Type Description Merits
Line Authority flows (top → bottom) Simple Over
Functional Based on specialisation Expertise Confl
Matrix Combines line + functional Flexible Dual
Divisional By product / region Focus on output Dupl
Flat Few levels Quick decisions Less
Factors Affecting Structure:
Size of firm, technology, strategy, people, environment.
PYQs :
• 2023 – Define organisation (1 M).
• 2022 – Process of creating organisation (15 M).
, 4. Division of Labour, Scalar & Functional Processes, Span of Control, De
Centralisation/Decentralisation :
Main Concepts :
• Division of Labour : Work split into smaller tasks → specialisation
• Scalar Chain : Formal line of authority from top to bottom.
• Functional Process : Authority shared among specialists (QA, Fina
• Span of Control : No. of employees a manager can effectively sup
• Delegation : Assigning authority with responsibility retained.
• Centralisation : Decision power at top.
• Decentralisation : Authority shared at lower levels.
Authority vs Responsibility (15 Marks Question) :
PYQ:
• 2022 – Differentiate between authority and responsibility. (15 Marks)
Meaning of Authority:
• Authority means the right to make decisions, give orders, and ex
• It originates from the management position and flows downward
• Authority gives a manager the legal power to control resources an
Meaning of Responsibility:
• Responsibility means the duty or obligation to perform an assigne
• It flows upward, because subordinates are accountable to their su
• Responsibility cannot be transferred completely — even if tasks a
Differences Between Authority and Responsibility:
Point Authority R
1. Meaning Right to command and take decisions. Obligation to pe
Legal and official power given by Moral and pers
2. Nature
position. work.
MANAGEMENT
,UNIT 1 — INTRODUCTION TO INDUSTRIAL MANAGEMEN
1. System Concept:
A ‘system’ is a group of interrelated parts working together to achieve a comm
In Industrial Management, every organization is viewed as a system that conv
outputs.
Main Elements of a System :
• Input → materials, men, machines, money, information.
• Process → conversion activities.
• Output → goods or services.
• Feedback → helps control and improvement
• Environment → external factors affecting the system.
Types of Systems:
• Open System – interacts with external environment (industry).
• Closed System – no interaction with outside world. (Pre-programm
System Behaviour :
• Stable – outputs remain constant over time.
• Unstable – outputs change erratically.
• Dynamic – adapts to feedback and changes.
PYQs:
• (No direct question in 2022 – 2024 PYQs ) – Still conceptually imp
2. Management – Definition and Functions :
Definition: ‘Management’ is the process of planning, organising, staffing, dire
resources to achieve objectives efficiently and effectively.
Main Functions of Management:
• Planning : Setting objectives and deciding actions.
• Organising : Arranging people and resources for work.
• Staffing: Recruiting and training employees.
• Directing: Motivating and guiding staff.
, 3. Organisation Structure – Definition, Goals, Factors & Types :
Definition : An organisation structure is the systematic arrangement of peopl
goal.
Goals :
• Coordinate activities for efficiency.
• Define roles and authority clearly.
• Ensure communication and control.
Process of Creating Organisation :
Define objectives.
Identify major activities (production, sales, finance).
Group activities into departments.
Assign authority and responsibility.
Establish reporting relationships.
Coordinate and review performance.
Types of Organisation Structuare :
Type Description Merits
Line Authority flows (top → bottom) Simple Over
Functional Based on specialisation Expertise Confl
Matrix Combines line + functional Flexible Dual
Divisional By product / region Focus on output Dupl
Flat Few levels Quick decisions Less
Factors Affecting Structure:
Size of firm, technology, strategy, people, environment.
PYQs :
• 2023 – Define organisation (1 M).
• 2022 – Process of creating organisation (15 M).
, 4. Division of Labour, Scalar & Functional Processes, Span of Control, De
Centralisation/Decentralisation :
Main Concepts :
• Division of Labour : Work split into smaller tasks → specialisation
• Scalar Chain : Formal line of authority from top to bottom.
• Functional Process : Authority shared among specialists (QA, Fina
• Span of Control : No. of employees a manager can effectively sup
• Delegation : Assigning authority with responsibility retained.
• Centralisation : Decision power at top.
• Decentralisation : Authority shared at lower levels.
Authority vs Responsibility (15 Marks Question) :
PYQ:
• 2022 – Differentiate between authority and responsibility. (15 Marks)
Meaning of Authority:
• Authority means the right to make decisions, give orders, and ex
• It originates from the management position and flows downward
• Authority gives a manager the legal power to control resources an
Meaning of Responsibility:
• Responsibility means the duty or obligation to perform an assigne
• It flows upward, because subordinates are accountable to their su
• Responsibility cannot be transferred completely — even if tasks a
Differences Between Authority and Responsibility:
Point Authority R
1. Meaning Right to command and take decisions. Obligation to pe
Legal and official power given by Moral and pers
2. Nature
position. work.
