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1
MG
–93
62: I
ndus
tria
l Man
agem
ent
Uni
t –1
INT
RO
DU
CT
ION
Col
lege
ofEn
gine
erin
g-G
uind
yC
olle
geof
Engi
neer
ing
-Gui
ndy
Ann
a U
nive
rsity
OB
JEC
TIV
E
�Th
e st
uden
ts w
ill b
e ab
le t
o un
der
stan
d a
nd a
pp
ly th
e fo
llow
ing
con
cep
ts:
�M
anag
emen
t g
�D
efin
itio
n
�Fu
ncti
ons
�E
volu
tion
ofM
oder
nM
anag
emen
t�
Evo
luti
on o
f M
oder
n M
anag
emen
t �
Dev
elop
men
t of
Sci
enti
fic
Man
agem
ent
Tho
ught
�
Ap
pro
ache
s to
the
Stu
dy
of M
anag
emen
t �
Con
stra
ints
�C
onst
rain
ts
�E
nvir
onm
enta
l �
Fina
ncia
l �
Lega
l .
g
2
OB
JEC
TIV
E [C
ON
TD
.]
�Fo
rms
of O
rgan
izat
ion
�
Ind
ivid
ual o
wne
rshi
p
�P
artn
ersh
ip
�Jo
int S
tock
Com
pan
ies
�C
o-op
erat
ive
Ent
erp
rise
s �
Pub
lic S
ecto
r U
nder
taki
ngs
g
�C
orp
orat
e Fr
ame
Wor
k �
Sha
re H
old
ers
�B
oard
ofD
irec
tors
�B
oard
of
Dir
ecto
rs
�C
omm
itte
es
�C
hief
Exe
cuti
ve
�Li
nean
dFu
ncti
onal
Man
ager
s�
Line
and
Fun
ctio
nal M
anag
ers
�Tr
ade
Uni
on
3
4
MA
NA
GE
ME
NT
Uni
t –1.
1
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.1
BU
SIN
ES
S &
MA
NA
GE
ME
NT
�E
cono
mic
Ob
ject
ives
:�
Sat
isfy
ing
RO
I.�
Gro
wth
ofB
usin
ess:
Div
ersi
fica
tion
,Mer
ger,
orA
cqui
siti
ons.
�G
row
th o
f B
usin
ess:
Div
ersi
fica
tion
, Mer
ger,
or
Acq
uisi
tion
s.�
Con
tinu
ous
Pro
duc
t In
nova
tion
�
Pro
fit:
str
ong
mar
ket p
osit
ion.
Si
lOb
jti
�S
ocia
l Ob
ject
ives
:�
Cus
tom
er’s
wel
lbei
ng
�D
evel
opin
g b
ackw
ard
are
as�
Env
iron
men
tal w
ellb
eing
5
BU
SIN
ES
S &
MA
NA
GE
ME
NT
[CO
NT
D.]
�E
ssen
tial
s of
Goo
d B
usin
ess
�W
ell d
efin
ed &
att
aina
ble
ob
ject
ive
�P
rop
erp
lann
ing
&ex
ecut
ion
pro
ced
ure
�P
rop
er p
lann
ing
& e
xecu
tion
pro
ced
ure
�up
-to-
dat
e, r
elia
ble
& r
elev
ant
info
rmat
ion.
�P
rop
er la
yout
& lo
cati
on�
cost
min
imiz
atio
n&
pro
fitm
axim
izat
ion
�co
st m
inim
izat
ion
& p
rofi
t max
imiz
atio
n
�P
roac
tive
, res
pon
sive
, & a
dap
tive
man
agem
ent
�E
ffec
tive
org
aniz
atio
nal s
truc
ture
�E
ffec
tive
per
sonn
el p
olic
y�
Cus
tom
er c
ente
red
sys
tem
6
MA
NA
GE
ME
NT
PR
OC
ES
S &
FU
NC
TIO
NS
�M
anag
emen
t is
the
pro
cess
of
pla
nnin
g, o
rgan
izin
g,
coor
din
atin
g ,
lead
ing,
mot
ivat
ing,
and
con
trol
ling
the
pro
cess
&
res
ourc
es (h
uman
res
ourc
es) o
f an
org
aniz
atio
n in
an
()
gef
fici
ent &
eff
ecti
ve p
ursu
it o
f sp
ecif
ied
org
aniz
atio
nal g
oals
. �
Func
tion
s of
man
agem
ent p
roce
ss a
re:
�P
lann
ing
:Dec
idin
gw
hatn
eed
sto
hap
pen
inth
efu
ture
(tod
ay�
Pla
nnin
g: D
ecid
ing
wha
t nee
ds
to h
app
en in
the
futu
re (t
oday
, ne
xt w
eek,
nex
t mon
th, n
ext y
ear,
ove
r th
e ne
xt 5
yea
rs, e
tc.)
and
ge
nera
ting
pla
ns fo
r ac
tion
. �
Org
aniz
ing
:(Im
ple
men
tati
on)
mak
ing
opti
mum
use
ofth
e�
Org
aniz
ing
: (Im
ple
men
tati
on)
mak
ing
op
tim
um u
se o
f th
e re
sour
ces
req
uire
d to
ena
ble
the
succ
essf
ul c
arry
ing
out
of
pla
ns. 7
MA
NA
GE
ME
NT
FU
NC
TIO
NS
[CO
NT
D.]
�S
taff
ing
: Job
Ana
lyzi
ng, r
ecru
itm
ent,
and
hir
ing
ind
ivid
uals
for
app
rop
riat
e jo
bs.
�
Lead
ing
/Dir
ecti
ng: D
eter
min
ing
wha
t nee
ds
to b
e d
one
in a
si
tuat
ion
and
get
ting
peo
ple
to d
o it
. �
Con
trol
ling
/Mon
itor
ing
: Che
ckin
g p
rog
ress
aga
inst
pla
ns.
�M
otiv
atio
n: M
otiv
atio
n is
als
o a
kind
of
bas
ic fu
ncti
on o
f m
anag
emen
t, b
ecau
se w
itho
ut m
otiv
atio
n, e
mp
loye
es c
anno
t w
ork
effe
ctiv
ely.
8
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.2
DE
FIN
ING
AD
MIN
IST
RA
TIO
N
�A
dm
inis
trat
ion
& M
anag
emen
t are
the
SA
ME
�‘A
dm
inis
trat
ion’
: go
vern
men
t e
xecu
tive
func
tion
�‘M
anag
emen
t’:B
usin
ess
wor
ldfu
ncti
on�
Man
agem
ent
: Bus
ines
s w
orld
func
tion
�A
dm
inis
trat
ion
is A
BO
VE
man
agem
ent
�A
dm
inis
trat
ion
is th
e fu
ncti
on c
once
rned
wit
h d
eter
min
atio
n of
co
rpor
ate
pol
icy
corp
orat
e p
olic
y�
Man
agem
ent
is th
e fu
ncti
on c
once
rned
wit
h ex
ecut
ion
of th
e co
rpor
ate
pol
icy
�A
dm
inis
trat
ion
is P
AR
T o
f m
anag
emen
t�
Man
agem
ent i
s th
e to
tal p
roce
ss e
xecu
tion
�A
dm
inis
trat
ion
is p
art o
f m
anag
emen
t w
hich
inst
alls
& fo
llow
s th
e p
gp
roce
dur
e fo
r re
gul
atio
n fo
r p
roce
ss.
9
FRA
ME
WO
RK
FO
R T
HE
ST
UD
Y O
F E
VO
LUT
ION
OF
MA
NA
GE
ME
NT
10
CO
NT
RIB
UT
OR
S
�C
harl
es B
abb
age
(179
2 –
1871
)�
Fred
rick
Win
slow
Tayl
or
�R
ober
t Ow
en
(177
1 –
1858
) �
Hug
oM
unst
erb
erg
�Fr
edri
ck W
insl
ow T
aylo
r (1
856
–19
15)
�Fr
ank
& L
illia
n G
ilbre
th
(187
819
72)
�H
ugo
Mun
ster
ber
g
(186
3 –
1916
)�
Elt
on M
ayo
(188
019
49)
(187
8 –
1972
) �
Hen
ry G
antt
(1
861
–19
19)
(188
0 –
1949
)�
Mar
y P
arke
r Fo
llet
(186
8 –
1933
) �
Hen
ri F
ayol
(1
841
–19
25)
�C
hest
erB
arna
rd
�A
bra
m M
aslo
w
(190
8 –
1970
)�
Dou
glas
McG
rego
r�
Che
ster
Bar
nard
(1
861
–19
61)
�H
erb
ert S
imon
(1
916
2001
)
�D
ougl
as M
cGre
gor
(190
6 –
1964
)�
Pet
er D
ruck
er
(190
920
05)
(191
6 –
2001
) (1
909
–20
05)
11
CO
NT
RIB
UT
ER
S
�C
harl
es B
abb
age
�P
rop
onen
t of
sp
ecia
lizat
ion
of la
bou
r.�
Ad
voca
ted
that
man
ager
ssh
ould
cond
uct
tim
est
udie
sto
�A
dvo
cate
d th
at m
anag
ers
shou
ld c
ond
uct
tim
e st
udie
s to
d
eter
min
e ho
w lo
ng s
houl
d it
take
for
each
sp
ecia
lized
task
.
�Fr
edri
ck W
insl
ow T
aylo
r�
Dev
elop
edp
rinc
iple
sof
Sci
enti
fic
man
agem
ent
�D
evel
oped
pri
ncip
les
of S
cien
tifi
c m
anag
emen
t.�
Dev
elop
a s
cien
ce fo
r ea
ch jo
b w
ith
stan
dar
diz
ed w
ork
imp
lem
ents
an
d e
ffic
ient
met
hod
s fo
r al
l to
follo
w.
�S
elec
tthe
wor
kers
scie
ntif
ical
lyw
ith
skill
san
dab
iliti
esth
atm
atch
�S
elec
t the
wor
kers
sci
enti
fica
lly w
ith
skill
s an
d a
bili
ties
that
mat
ch
each
job,
and
trai
n th
em in
the
mos
t eff
icie
nt w
ays
so th
at th
ey m
ay
acco
mp
lish
task
s.�
Ens
ures
coop
erat
ion
thro
ugh
ince
ntiv
esan
dp
rovi
de
the
wor
k�
Ens
ures
coo
per
atio
n th
roug
h in
cent
ives
and
pro
vid
e th
e w
ork
envi
ronm
ent t
hat r
einf
orce
op
tim
al w
ork
resu
lts
in a
sci
enti
fic
man
ner
�D
ivid
e re
spon
sib
ility
for
man
agin
g a
nd fo
r w
orki
ng
12
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.3
�Fr
ank
and
Lill
ian
Gilb
reth
�D
evel
oped
tim
e an
d m
otio
n st
udy
�T
heir
clas
sifi
cati
onco
vers
mot
ions
such
asg
rasp
ing,
mov
ing
and
�T
heir
cla
ssif
icat
ion
cove
rs m
otio
ns s
uch
as g
rasp
ing,
mov
ing
and
ho
ldin
g�
Firs
t to
intr
oduc
e re
st p
ause
in a
n 8
hour
wor
k.
�H
enry
Gan
tt�
Hen
ry G
antt
�D
evel
oped
Gan
tt c
hart
(Pre
curs
or o
f C
PM
and
PE
RT
) tha
t pro
vid
e a
gra
phi
cal r
epre
sent
atio
n of
flow
of
wor
k th
at is
req
uire
d to
co
mp
lete
ag
iven
task
com
ple
te a
giv
en ta
sk.
�D
evel
oped
wor
k q
uota
sys
tem
com
ple
te w
ith
bon
us fo
r w
orke
rs
who
met
or
exce
ed q
uota
s.
13
�H
enri
Fay
ol�
He
was
the
firs
t to
envi
sage
the
func
tion
pro
cess
ap
pro
ach
to th
e p
ract
ice
of m
anag
emen
t.p
g�
Man
ager
ial t
ask
clas
sifi
ed to
�Te
chni
cal
�C
omm
erci
al�
Com
mer
cial
�Fi
nanc
ial
�S
ecur
ity
�A
ccou
ntin
g�
Acc
ount
ing
�A
dm
inis
trat
ive
�D
evel
oped
14
pri
ncip
le o
f m
anag
emen
t
14
�C
hest
er B
arna
rd�
Bel
ieve
d th
at o
rgan
izat
iona
l suc
cess
req
uire
d in
div
idua
ls w
illin
g
to a
cce p
t aut
hori
ty o
f ot
hers
.p
y�
Dev
elop
ed w
orki
ng p
rinc
iple
s b
y w
hich
org
aniz
atio
ns
com
mun
icat
ion
syst
em m
aint
ains
fina
l aut
hori
ty.
�H
erb
ertS
imon
�H
erb
ert S
imon
�B
elie
ved
man
ager
is a
n ad
min
istr
ativ
e m
an a
nd n
ot a
n ec
onom
ic
man
�M
anag
erm
akes
dec
isio
nam
idb
ound
edra
tion
alit
yan
dse
lect
sno
t�
Man
ager
mak
es d
ecis
ion
amid
bou
nded
rat
iona
lity
and
sel
ects
not
th
e m
axim
izin
g a
lter
nati
ve b
ut s
elec
ts th
e fi
rst a
lter
nati
ve th
at
mee
ts s
ome
min
imum
leve
l of
achi
evem
ent.
Rb
tO�
Rob
ert O
wen
�Fi
rst t
o sp
eak
out o
n b
ehal
f of
org
aniz
atio
ns h
uman
res
ourc
e.�
Cri
tici
zed
ind
ustr
ialis
t w
ho s
pen
t m
ore
mon
ey o
n p
rod
ucti
on
mac
hine
but
did
litt
le to
imp
rove
the
lot o
f th
e p
eop
le.
15
�H
ugo
Mun
ster
ber
g�
Stu
die
d th
e ap
plic
atio
n of
psy
chol
ogy
to th
e or
gani
zati
onal
se
ttin
gs.
g�
Con
sid
ered
to b
e th
e fa
ther
of
ind
ustr
ial p
sych
olog
y.
�E
lton
May
o�
Con
duc
ted
the
fam
ous
‘Haw
thor
ne’s
tud
ies
�C
ond
ucte
d t
he fa
mou
s ‘H
awth
orne
’ stu
die
s.�
He
foun
d o
ut t
he t
end
ency
of
peo
ple
who
are
sin
gle
d o
ut o
f sp
ecia
l att
enti
on t
o im
pro
ve t
heir
per
form
ance
�Fo
und
tha
t the
sam
e w
ork
fact
ors
can
be
sour
ce o
f sa
tisf
acti
on
for
som
e w
orke
rs a
nd d
issa
tisf
acti
on fo
r ot
her
wor
kers
16
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.4
�M
ary
Par
ker
Folle
tt�
Bel
ieve
d th
at g
roup
s w
here
the
mec
hani
sms
thro
ugh
whi
ch
peo
ple
cou
ld c
omb
ine
thei
r d
iffe
ring
tale
nt fo
r th
e g
reat
er g
ood
of
pp
gg
gth
e or
gani
zati
on.
�Fo
llett
beh
avio
ral m
odel
of
cont
rol d
epic
ts c
ontr
ol b
eing
s p
onso
red
by
and
ori
ente
d to
war
ds
the
gro
up, w
hile
sel
f co
ntro
l p
yg
pex
erci
sed
by
bot
h in
div
idua
ls a
nd th
e g
roup
ult
imat
ely
resu
lt in
b
oth
shar
ing
the
pow
er.
�A
bra
ham
Mas
low
�H
e p
rop
osed
tha
t man
nee
d c
ould
be
pla
ced
in ’H
iera
rchy
of
need
s’ r
ang
ing
from
phy
siol
ogic
al n
eed
s, s
afet
y ne
eds,
soc
ial
need
s , e
stee
m n
eed
s, a
nd s
elf–
actu
aliz
atio
n ne
eds.
,,
17
�D
ougl
as M
cGre
gor
�H
e ar
gue
d th
at m
anag
emen
t sh
ould
shi
ft th
eir
trad
itio
nal v
iew
(T
heor
y X)
to a
new
hum
ane
(The
ory
Y) v
iew
con
cern
ing
(
y)
(y
)g
emp
loye
e-w
ork
rela
tion
ship
.�
Acc
ord
ing
to h
im, v
iew
s of
The
ory
X, th
at m
an is
lazy
and
wan
ts to
av
oid
wor
k ar
e b
oth
pes
sim
isti
c an
d c
ount
erp
rod
ucti
ve w
hile
the
pp
view
s of
The
ory
Y th
at m
an w
ants
to w
ork
and
was
goo
d is
p
osit
ive,
and
sho
uld
bec
ome
the
stan
dar
d fo
r hu
man
izin
g t
he
wor
k p
lace
.
�P
eter
Dru
cker
�C
ontr
ibut
ions
incl
ude
spec
ifyin
g th
e fu
ncti
ons
of m
anag
emen
t in
m
ore
obje
ctiv
e te
rms,
pop
ular
izin
g M
BO
and
em
pha
sizi
ng t
ime
j,p
pg
pg
man
agem
ent.
18
MA
NA
GE
ME
NT
TH
OU
GH
T
�D
evel
opm
ent o
f M
anag
emen
t Tho
ught
�Im
pac
t of
wor
ld w
ars
�G
row
ing
com
pet
itio
n�
Gro
win
g c
omp
etit
ion
�C
omp
lexi
ties
of
bus
ines
s
�E
volu
tion
of
Man
agem
ent T
houg
ht�
Anc
ient
man
agem
ent
�R
oman
Cat
holic
Chu
rch
�M
ilita
ry O
rgan
izat
ion
�C
amer
alis
ts�
Ind
ustr
ial R
evol
utio
n
19
EV
OLU
TIO
N O
F M
AN
AG
EM
EN
T T
HO
UG
HT
�M
AN
AG
EM
EN
T IN
AN
TIQ
UIT
Y :
�E
arly
Eg
ypti
an p
apyr
i (13
00 B
C) i
ndic
ate
the
reco
gni
tion
of
the
imp
orta
nce
of o
rgan
isat
ion
and
ad
min
istr
atio
n in
bur
eauc
rati
c p
gst
ates
of
anti
qui
ty.
�S
imila
r re
cord
s (C
onfu
cius
par
able
s) a
re fo
und
in c
hina
als
o.
20
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.5
�R
OM
AN
CA
TH
OLI
C C
HU
RC
H :
�T
he m
ost
effe
ctiv
e fo
rmal
org
anis
atio
n in
the
hist
ory
of w
este
rn
civi
lisat
ion
has
bee
n th
e R
oman
Cat
holic
Chu
rch.
�T
he d
evel
opm
ent
of th
e hi
erar
chy
of a
utho
rity
, wit
h it
s sc
alar
and
te
rrit
oria
l org
anis
atio
n, t
he s
pec
ialis
atio
n of
act
ivit
ies
alon
g
func
tion
al li
nes,
and
the
earl
y, in
telli
gent
use
of
the
staf
f d
evic
e y
gar
e ex
amp
les
of th
ese
tech
niq
ues.
21
�M
ILIT
AR
Y O
RG
AN
ISA
TIO
N S
:�
Som
e of
the
mos
t im
por
tant
pri
ncip
les
and
pra
ctic
es o
f th
e m
oder
n b
usin
ess
man
a gem
ent
may
be
trac
ed to
mili
tary
g
yy
orga
nisa
tion
s.�
How
ever
, the
y fa
iled
to p
ut m
uch
theo
ry t
o us
e b
efor
e th
e p
ast
two
cent
urie
s.
22
�C
AM
ER
ALI
ST
S:
�T
he c
amer
alis
ts w
ere
a g
roup
of
Ger
man
and
Aus
tria
n p
ublic
ad
min
istr
ator
s an
d in
telle
ctua
ls.
�T
hey
bel
ieve
d th
at to
enh
ance
the
pos
itio
n of
sta
te, i
t was
ne
cess
ary
to m
axim
ise
the
mat
eria
l wea
lth.
23
�IN
DU
ST
RIA
L M
AN
AG
EM
EN
T (
MID
19T
H C
EN
TU
RY
):�
Ear
lier
to t
he in
dus
tria
l rev
olut
ion,
com
mer
ce w
as c
ond
ucte
d o
n a
limit
ed s
cale
and
or g
anis
atio
n w
ere
rela
tive
ly s
mal
l.g
y�
Wit
h th
e d
evel
opm
ent
of th
e ec
onom
ic d
isci
plin
e an
d
tech
nolo
gie
s of
man
ufac
turi
ng, b
oth
com
mer
ce a
nd o
rgan
isat
ion
gre
w r
apid
ly.
gp
y
24
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.6
KE
Y M
AN
AG
EM
EN
T T
HE
OR
IES
TIM
ELI
NE
25
AP
PR
OA
CH
ES
TO
MA
NA
GE
ME
NT
ST
UD
IES
�E
mp
iric
al /
Cas
e �
Inte
rper
sona
l beh
avio
r�
Gro
upb
ehav
ior
�G
roup
beh
avio
r�
Coo
per
ativ
e so
cial
sys
tem
s�
Soc
io-t
echn
ical
sys
tem
sy
�D
ecis
ion
theo
ry�
Sys
tem
sM
thti
l/M
ti
�M
athe
mat
ical
/ M
gm
t sci
ence
�C
onti
ngen
cy/S
itua
tion
al
�M
anag
eria
lrol
es�
Man
ager
ial r
oles
�M
cKin
sey’
s 7-
S fr
amew
ork
�O
per
atio
nal
26
CLA
SS
ICA
L (I
DE
AL)
MO
DE
L
�M
ax W
eber
(186
4 –
1920
) �
Cha
ract
eris
tics
�S
pec
ializ
atio
n&
div
isio
nof
lab
or�
Sp
ecia
lizat
ion
& d
ivis
ion
of la
bor
�P
osit
ions
arr
ange
d in
hie
rarc
hy�
A s
yste
m o
f ab
stra
ct r
ules
�Im
per
sona
l rel
atio
nshi
p
�D
ysfu
ncti
onal
27
EM
PIR
ICA
L /
CA
SE
AP
PR
OA
CH
Ch
ara
cte
rist
ics/
C
on
trib
uti
on
sL
imit
atio
ns
Illu
stra
tio
n
1.
Stu
die
se
xpe
rie
nc
e1
.S
itu
atio
ns
are
all
dif
fere
nt
exp
eri
en
ce
th
rou
gh
ca
ses.
2.
Ide
nti
fie
s su
cc
ess
an
d
failu
res.
dif
fere
nt.
2.
No
att
em
pt
to
ide
nti
fy
pri
nc
iple
s.3
.L
imit
ed
va
lue
for
CA
SE
S
ITU
AT
ION
SU
CC
ES
SF
AIL
UR
E
dev
elo
pin
g
ma
na
ge
me
nt
the
ori
es.
WH
Y ?
28
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.7
MA
NA
GE
RIA
L R
OLE
S A
PP
RO
AC
H
Ch
ara
cte
rist
ics/
C
on
trib
uti
on
sL
imit
atio
ns
Illu
stra
tio
n
1.
Ori
gin
al s
tud
y 1
.O
rig
ina
l sa
mp
lew
as
co
nsi
ste
d o
f o
bse
rvat
ion
s o
f fi
ve c
hie
f e
xec
uti
ves.
2O
thb
if
very
sm
all.
2.
So
me
ac
tivi
tie
s a
re n
ot
ma
na
ge
ria
l.3
.A
cti
viti
es
are
evi
de
nc
e
fl
ii
i
Thr
ee
inte
rper
sona
l rol
e
2.
On
th
e b
asi
s o
f th
is s
tud
y, t
en
m
an
ag
eri
al r
ole
s w
ere
ide
nti
fie
d
an
dg
rou
pe
din
to
of
pla
nn
ing
, org
an
izin
g,
sta
ffin
g, l
ea
din
g a
nd
c
on
tro
llin
g4
.B
ut
som
e im
po
rta
nt
ma
na
ge
ria
lac
tivi
tie
sa
nd
gro
up
ed
into
1.I
nte
rpe
rso
na
l2
.In
form
atio
na
l3
.De
cis
ion
ro
les
ma
na
ge
ria
l ac
tivi
tie
s a
re le
ft o
ut
(Eg
. A
pp
rais
ing
ma
na
ge
rs)
29
CO
NT
ING
EN
CY
OR
SIT
UA
TIO
NA
L A
PP
RO
AC
H
CH
AR
AC
TE
RIS
TIC
S/
CO
NT
RIB
UT
ION
S
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
NS
•Man
ager
ialp
ract
ice
depe
nds
on
•Man
ager
sha
ve lo
ng
real
ized
tha
t th
ere
is
pci
rcum
stan
ces.
•Con
tinge
ncy
theo
ry r
ecog
nize
s th
ein
fluen
ceof
no o
ne b
est
way
to
do t
hing
s.•D
iffic
ulty
in
dete
rmin
ing
all
Cau
seEf
fect
Dep
ends
on
the
influ
ence
of
give
n so
lutio
ns o
n or
gani
zatio
nal
beha
vior
pat
tern
s.
dete
rmin
ing
all
rele
vant
con
tinge
ncy
fact
ors
and
show
ing
thei
r re
latio
nshi
p ca
n C
ontin
genc
y
be v
ery
com
plex
.Si
tuat
ion
30
MA
TH
EM
AT
ICA
L O
R “
MA
NA
GE
ME
NT
SC
IEN
CE
” A
PP
RO
AC
HC
HA
RA
CT
ER
IST
ICS/
C
ON
TR
IBU
TIO
NS
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
NS
•Man
agin
gis
see
n as
m
athe
mat
ical
•P
reoc
cupa
tion
with
m
athe
mat
ical
mod
els.
E=F[
xivi
]pr
oces
s, co
ncep
ts,
sym
bols
, and
m
odel
s.•L
ooks
at
•Man
yas
pect
s in
m
anag
ing
cann
ot b
e m
odel
ed.
•Mat
hem
atic
sis
a
E=F[
xi, v
i]
•Loo
ks a
t m
anag
emen
t as
a pu
rely
logi
cal
proc
ess,
expr
esse
d
•Mat
hem
atic
s is
a
usef
ul t
ool,
but
hard
ly
a sc
hool
or
an
appr
oach
to
yes
in m
athe
mat
ical
sy
mbo
ls a
nd
rela
tions
hip.
man
agem
ent.
no
31
DE
CIS
ION
TH
EO
RY
AP
PR
OA
CH
CH
AR
AC
TE
RIS
TIC
S/
CO
NT
RIB
UT
ION
S
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
NS
•Foc
us o
n th
e m
akin
g of
dec
isio
ns,•T
here
is m
ore
to
man
a gin
g th
an m
akin
g In
divi
dual
dec
isio
n m
akin
gg
,pe
rson
s or
gro
up
mak
ing
deci
sion
s, an
d th
e de
cisi
on-
mak
ing
proc
ess
gg
gde
cisi
ons
•The
focu
s is
at
the
sam
e tim
e to
o na
rrow
and
too
wid
e
Valu
es o
f de
cisi
on
mak
ers
mak
ing
Proc
ess
of d
ecis
ion
mak
ing
Entir
e ar
ea o
f b
im
akin
g pr
oces
s.•S
ome
theo
rist
use
de
cisi
on-m
akin
g as
a
spri
ng b
oard
to
narr
ow a
nd t
oo w
ide.
Dec
isio
n th
eory
mak
ers
busi
ness
ac
tivity
stud
y al
l ent
erpr
ise
activ
ities
.•T
he b
ound
arie
s of
st
udy
are
nolo
nger
Nat
ure
of
orga
niza
tion
stru
ctur
eIn
form
atio
n
Gro
up
deci
sion
m
akin
gst
udy
are
no lo
nger
cl
earl
y de
fined
.fo
r de
cisi
on
32
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.8
RE
EN
GIN
EE
RIN
G A
PP
RO
AC
H
CH
AR
AC
TE
RIS
TIC
S/
CO
NT
RIB
UT
ION
S
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
NS
•Fun
dam
enta
lre
thin
kin g
•Neg
lect
of e
xter
nal
envi
ronm
ent ,
poss
ibly
g
•Pro
cess
ana
lysi
s•R
adic
al r
edes
ign
•Dra
mat
ic r
esul
ts
,py
igno
ring
cus
tom
er’s
need
s.•N
egle
ct o
f hum
an
need
sig
nore
sto
tal
Ope
ratio
ns
need
s ig
nore
s to
tal
man
agem
ent s
yste
m
as in
the
man
agem
ent
proc
ess
or
Tran
sfor
mat
ion
Out
put
Inpu
t
oper
atio
nal a
ppro
ach.
33
SYS
TE
MS
AP
PR
OA
CH
CH
AR
AC
TE
RIS
TLI
MIT
AT
ION
SIL
LUST
RA
TIO
NC
HA
RA
CT
ER
IST
ICS/
C
ON
TR
IBU
TIO
NS
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
•Sys
tem
sco
ncep
t ha
s br
oad
•Can
hard
ly b
e co
nsid
ered
new
ap
plic
abili
ty.
•Sys
tem
hav
e bo
unda
ries
but
the
y al
soin
tera
ctw
ith
appr
oach
to
man
agem
ent,
as
clai
med
by
som
e pr
opon
ents
toth
isal
so in
tera
ct w
ith
the
exte
rnal
en
viro
nmen
t.•R
ecog
nize
the
i
f
prop
onen
ts to
thi
s ap
proa
ch.
impo
rtan
ce o
f st
udyi
ng
inte
rrel
ated
ness
of
plan
ning
, org
aniz
ing
Ope
nto
pg,
gg
and
cont
rolli
ng in
an
orga
niza
tion
Ope
n to
ex
tern
al
envi
ronm
ent
34
SYS
TE
MS
AP
PR
OA
CH
TO
MA
NA
GE
ME
NT
35
SO
CIO
TE
CH
NIC
AL
SYS
TE
MS
AP
PR
OA
CH
CH
AR
AC
TE
RIS
TLI
MIT
AT
ION
SIL
LUST
RA
TIO
NC
HA
RA
CT
ER
IST
ICS/
C
ON
TR
IBU
TIO
NS
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
•Tec
hnic
al s
yste
m
has
grea
t ef
fect
on
•Em
phas
ison
ly o
n bl
ue c
olla
r an
d lo
w
Tech
nica
l sys
tem
soci
alsy
stem
.•F
ocus
on
prod
uctio
n, o
ffice
op
erat
ion,
and
othe
r
leve
l offi
ce w
ork.
•Igno
res
muc
h of
ot
her
man
ager
ial
know
ledg
e.O
ffice
ope
ratio
nM
achi
nes
oper
atio
n, a
nd o
ther
ar
eas
with
clo
se
rela
tions
hips
be
twee
n th
e h
il
d
know
ledg
e.
Soci
al s
yste
m
tech
nica
l sys
tem
and
pe
ople
.Pe
rson
al a
ttitu
deG
roup
beh
avio
r
36
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.9
CO
OP
ER
AT
IVE
SO
CIA
L S
YST
EM
AP
PR
OA
CH
CH
AR
AC
TE
RIS
TLI
MIT
AT
ION
SIL
LUST
RA
TIO
NC
HA
RA
CT
ER
IST
ICS/
C
ON
TR
IBU
TIO
NS
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
•Con
cern
ed w
ith
both
inte
rper
sona
l •T
oobr
oad
a fie
ld o
f m
anag
emen
t.an
d gr
oup
beha
vior
as
pect
s le
adin
g to
a
syst
em o
f co
oper
atio
n.
•At
the
sam
e tim
e, it
ov
erlo
oks
man
y m
anag
eria
l con
cept
s, pr
inci
ples
,and
Com
mon
l
coop
erat
ion.
•Exp
ande
d co
ncep
t in
clud
es a
ny
coop
erat
ive
grou
p ih
l
prin
cipl
es, a
nd
tech
niqu
es.
goal
with
a c
lear
pu
rpos
e.
37
GR
OU
P B
EH
AV
IOU
R A
PP
RO
AC
H
CH
AR
AC
TE
RIS
TLI
MIT
AT
ION
SIL
LUST
RA
TIO
NC
HA
RA
CT
ER
IST
ICS/
C
ON
TR
IBU
TIO
NS
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
•Em
phas
is o
n be
havi
or o
f peo
ple
•Ofte
n no
t in
tegr
ated
w
ith m
anag
emen
t St
udy
of a
gr
oup
Stud
y of
gro
ups
in g
roup
s.•B
ased
on
soci
olog
y an
d so
cial
ps
ycho
logy
.
conc
epts
, pri
ncip
les,
theo
ry, a
nd
tech
niqu
es.
•Nee
dfo
rcl
oser
grou
py
gp
inte
ract
ing
with
eac
h ot
her
psyc
holo
gy.
•Pri
mar
ily s
tudy
of
grou
p be
havi
or
patt
erns
.T
hd
fl
Nee
d fo
r cl
oser
in
tegr
atio
n w
ith
orga
niza
tion
stru
ctur
e de
sign
, ffi
li
d•T
he s
tudy
of l
arge
gr
oups
is o
ften
calle
d “o
r gan
izat
iona
l
staf
fing,
plan
ning
, and
co
ntro
lling
.
gbe
havi
or.”
38
INT
ER
PE
RS
ON
AL
BE
HA
VIO
UR
AP
PR
OA
CH
CH
AR
AC
TE
RIS
TLI
MIT
AT
ION
SIL
LUST
RA
TIO
NC
HA
RA
CT
ER
IST
ICS/
C
ON
TR
IBU
TIO
NS
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
•Foc
uson
in
terp
erso
nal
•Igno
res
plan
ning
, or
gani
zing
, and
be
havi
or, h
uman
re
latio
ns, l
eade
rshi
p, an
d m
otiv
atio
n.• B
ased
onin
divi
dual
cont
rolli
ng.
•Psy
chol
ogic
al tr
aini
ng
is n
ot e
noug
h to
be
com
ean
effe
ctiv
eBa
sed
on in
divi
dual
ps
ycho
logy
beco
me
an e
ffect
ive
man
ager
.
Focu
s of
stu
dy
39
MC
KIN
SE
Y’S
FR
AM
EW
OR
K
CH
AR
AC
TE
RIS
TLI
MIT
AT
ION
SIL
LUST
RA
TIO
NC
HA
RA
CT
ER
IST
ICS/
C
ON
TR
IBU
TIO
NS
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
•The
sev
en S
’s ar
e•1
)str
ateg
y•T
hete
rms
used
are
no
t pr
ecis
e an
d to
pics
•2
)str
uctu
re•3
)sys
tem
s•4
)sty
le• 5
)sta
ff
are
not
disc
usse
d in
de
pth.
syst
ems
styl
est
ruct
ure
5)st
aff
•6)s
hare
d va
lues
•7)s
kills
stra
tegy
staf
f
skill
ssh
ared
val
ues
40
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.10
TO
TAL
QU
ALI
TY
MA
NA
GE
ME
NT
AP
PR
OA
CH
CH
AR
AC
TE
RIS
TIC
S/
CO
NT
RIB
UT
ION
S
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
NS
•Dep
enda
ble
satis
f yin
g pr
oduc
ts
•No
com
plet
e ag
reem
ent
of w
hat
yg
pan
d se
rvic
es•P
rodu
ct o
r se
rvic
e th
at is
fit
for
use
•Con
form
ance
to
g tota
l qua
lity
man
agem
ent i
s.Fo
cus:
•Cus
tom
er n
eeds
•Qua
lity
prod
ucts
and
serv
ices
•Con
form
ance
to
qual
ity r
equi
rem
ent
•Con
tinuo
us
impr
ovem
ent
Team
and
serv
ices
•Con
cern
for
qual
ity a
nd c
ost
•Att
entio
n to
det
ails
•Tea
mw
ork
•Qua
lity
educ
atio
n
41
MA
NA
GE
ME
NT
PR
OC
ES
S O
R O
PE
RA
TIO
NA
L A
PP
RO
AC
H
CH
AR
AC
TE
RIS
TIC
S/
CO
NT
RIB
UT
ION
S
LIM
ITA
TIO
NS
ILLU
STR
AT
ION
NS
•Dra
ws
toge
ther
co
nce p
ts, p
rinc
iple
s, •D
oes
not
as s
ome
auth
ors
do, i
dent
ify
p,p
p,
tech
niqu
es, a
nd
know
ledg
e fr
om
othe
r fie
lds
and
man
ager
ial
,y
“rep
rese
ntin
g” o
r “c
oord
inat
ion”
as
a se
para
te fu
nctio
n.D
raw
s kn
owle
dge
from
ap
proa
ches
abo
ve
man
ager
ial
appr
oach
es.
•The
atte
mpt
is t
o de
velo
p sc
ienc
e an
d
Ope
ratio
nal
appr
oach
theo
ry w
ith
prac
tical
app
licat
ion.
•Dis
tingu
ish
b/w
m
anag
eria
land
non
Inte
grat
es t
he a
ppro
ache
s w
ith s
cien
ce a
nd t
heor
y th
at is
pra
ctic
alm
anag
eria
l and
non
m
anag
eria
l app
roac
h
42
CO
NS
TR
AIN
TS
�E
cono
mic
Env
iron
men
t�
Cap
ital
�La
bor
�La
bor
�P
rice
leve
ls�
Gov
t. fi
scal
& ta
x p
olic
ies
Ct
�C
usto
mer
�Te
chno
log
y
�S
ocia
l Env
iron
men
t�
Pol
itic
al E
nvir
onm
ent
�Le
gal E
nvir
onm
ent
43
SO
CIA
L A
TT
ITU
DE
S, B
ELI
EFS
, & V
ALU
ES
�A
rgum
ents
FO
R s
ocia
l inv
olve
men
t of
busi
ness
�C
hang
e in
pub
lic n
eed
s le
ads
to c
hang
e in
exp
ecta
tion
s�
Bet
ter
soci
alen
viro
nmen
t�
Bet
ter
soci
al e
nvir
onm
ent
�R
educ
ed G
ovt.
inte
rven
tion
s�
Gre
at p
ower
= g
reat
res
pon
sib
ility
It
dd
td
it
�In
terd
epen
den
t m
oder
n so
ciet
y�
Inhe
rent
to s
tock
hold
ers
�P
rob
lem
= o
pp
ortu
nity
for
pro
fit
�P
osit
ive
pub
licit
y�
Pro
ble
m s
olve
rs�
Res
ourc
es�
Res
ourc
es�
Pre
vent
ion
is b
ette
r th
an c
ure.
44
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.11
SO
CIA
L A
TT
ITU
DE
S, B
ELI
EFS
, & V
ALU
ES
�A
rgum
ents
AG
AIN
ST
soc
ial i
nvol
vem
ent o
f bu
sine
ss�
Pro
fit
�S
ocia
linv
olve
men
t=
hig
her
pri
ces
�S
ocia
l inv
olve
men
t h
ighe
r p
rice
s�
Wea
k in
tern
atio
nal b
alan
ce o
f p
aym
ent
situ
atio
n�
Soc
ial i
nvol
vem
ent
= M
ore
pow
er =
cor
rup
tion
Lk
fki
lli
li
lli
lb
l�
Lack
of
skill
s in
sol
ving
all
soci
al p
rob
lem
�La
ck o
f ac
coun
tab
ility
�N
ot n
eces
sary
com
ple
te s
upp
ort.
45
46
FOR
MS
OF
OR
GA
NIZ
AT
ION
S
Uni
t –1.
2
IND
IVID
UA
L O
WN
ER
SH
IP
�R
elat
ions
hip
bet
wee
n p
eop
le w
ith
rega
rds
to th
ing
s�
To c
ontr
ol t
he u
se o
f p
rop
erty
.�
Rig
htto
ben
efit
form
the
pro
per
ty.
�R
ight
to b
enef
it fo
rm th
e p
rop
erty
.�
Rig
ht to
tran
sfer
or
sell
the
pro
per
ty.
�R
ight
to e
xclu
de
othe
r fr
om th
e p
rop
erty
.
Idl
�Id
eolo
gy
�S
upp
ort
to th
e id
ea o
f ca
pit
alis
m.
�P
riva
te p
rop
erty
is d
iffe
rent
from
per
sona
l ow
ners
hip
�Fo
rmer
rel
ates
to r
elat
ions
hip
s an
d th
e la
ter
rela
tes
to th
e p
erso
nal t
hing
s.
47
TY
PE
S O
F P
RO
PE
RT
IES
OF
IND
IVID
UA
L O
WN
ER
SH
IP
�Ta
ngib
le p
rop
erty
:�
Ref
ers
to th
e p
erso
nal p
rop
erty
whi
ch c
an b
e m
oved
or
felt
�E
xam
ple
:goo
ds,
furn
itur
e,cl
othi
ng�
Exa
mp
le: g
ood
s, fu
rnit
ure,
clo
thin
g
�In
tang
ible
pro
per
ty:
�In
telle
ctua
l pro
per
ty
�ow
ners
hip
rig
hts.
48
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.12
PAR
TN
ER
SH
IPS
�P
artn
ersh
ip is
to n
omin
ate
cont
ract
bet
wee
n in
div
idua
ls w
ho,
in a
sp
irit
of
coop
erat
ion,
agr
ee to
car
ry o
n an
ent
erp
rise
; co
ntri
bute
to it
by
com
bin
ing
pro
per
ty, k
now
led
ge o
r y
gp
py
gac
tivi
ties
; and
sha
re it
s p
rofi
t�
Typ
es o
f P
artn
ers:
�G
ener
alP
artn
ers:
Gen
eral
par
tner
take
sp
arti
nth
em
anag
emen
t�
Gen
eral
Par
tner
s: G
ener
al p
artn
er ta
kes
par
t in
the
man
agem
ent
of th
e b
usin
ess,
and
als
o ta
kes
resp
onsi
bili
ty fo
r th
e lia
bili
ties
of
the
bus
ines
s.�
Ifon
ep
artn
eris
sued
allp
artn
ers
are
held
liab
le�
If o
ne p
artn
er is
sue
d, a
ll p
artn
ers
are
held
liab
le.
�G
ener
al p
artn
ersh
ips
are
the
leas
t des
irab
le fo
r th
is r
easo
n.
49
TY
PE
S O
F PA
RT
NE
RS
HIP
�Li
mit
ed p
artn
ers:
A li
mit
ed p
artn
erd
oes
not
par
tici
pat
e in
the
day
-to-
day
man
agem
ent
of th
e p
artn
ersh
ip a
nd h
is/h
er li
abili
ty is
lim
ited
. �
In m
any
case
s, t
he li
mit
ed p
artn
ers
are
mer
ely
inve
stor
s w
ho d
o no
t wis
h to
par
tici
pat
e in
the
par
tner
ship
oth
er th
an to
pro
vid
e an
in
vest
men
t an
d to
rec
eive
a s
hare
of
the
pro
fit.
�Li
mit
ed L
iab
ility
Par
tner
ship
(LL
P):
In t
his,
all
par
tner
s ha
ve
limit
ed li
abili
ty.
�A
n LL
P c
omb
ines
cha
ract
eris
tics
of
par
tner
ship
s an
d
corp
orat
ions
. �
As
in a
cor
por
atio
n, a
ll p
artn
ers
in a
n LL
P h
ave
limit
ed li
abili
ty,
from
err
ors,
om
issi
ons,
neg
ligen
ce, i
ncom
pet
ence
, or
mal
pra
ctic
e co
mm
itte
d b
y ot
her
par
tner
s or
by
emp
loye
es.
50
TY
PE
S O
F PA
RT
NE
RS
HIP
[CO
NT
D.]
�O
f co
urse
, any
par
tner
s in
volv
ed in
wro
ngfu
l or
neg
ligen
t act
s ar
e st
ill p
erso
nally
liab
le, b
ut o
ther
par
tner
s ar
e p
rote
cted
from
lia
bili
ty fo
r th
ose
acts
.�
In r
ecen
t yea
rs, t
he li
mit
ed li
abili
ty c
omp
any
has
sup
ple
men
ted
th
e ge
nera
l par
tner
ship
and
the
limit
ed p
artn
ersh
ip, b
ecau
se o
f th
e lim
its
of li
abili
ty.
51
JOIN
T S
TO
CK
CO
MPA
NY
�Jo
int s
tock
com
pan
y ha
s tw
o or
mor
e in
div
idua
ls w
hich
ow
ns
shar
es in
the
com
pan
y�
Cer
tifi
cate
by
the
com
pan
y fo
r th
e fi
nanc
ial a
ssis
tanc
e fo
r th
e y
py
com
pan
y.
�To
tal j
oint
sto
ck is
cal
led
sha
re c
apit
al a
nd it
is d
ivid
ed in
to a
nu
mb
er o
f un
its
calle
d s
hare
s.�
Thu
s, e
very
mem
ber
has
som
e sh
ares
in th
e b
usin
ess
dep
end
ing
up
on t
he a
mou
nt o
f ca
pit
al c
ontr
ibut
ed b
y hi
m.
�H
ence
mem
ber
sar
eal
soca
lled
shar
ehol
der
s�
Hen
ce, m
emb
ers
are
also
cal
led
sha
reho
lder
s�
The
sha
re h
old
ers
have
lim
ited
liab
ility
�A
nnua
l mee
ting
s ar
e he
ld o
n b
ehal
f of
boa
rd o
f d
irec
tors
.
52
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.13
JOIN
T S
TO
CK
CO
MPA
NY
[CO
NT
D.]
�Ty
pes
: �
Pub
lic�
Pri
vate
�P
riva
te�
Gov
ernm
ent.
�M
erit
s:
�H
as im
men
se s
cop
e of
net
pro
fit
�D
ivid
end
for
shar
e ho
lder
s.
�D
emer
its:
�S
hare
hol
der
s ar
e to
als
o b
ear
the
liab
iliti
es in
the
shar
es�
The
re is
no
assu
red
pro
fits
.
53
CO
OP
ER
AT
IVE
EN
TE
RP
RIS
E –
DE
FIN
ITIO
N
�P
erso
ns u
nite
d v
olun
tari
ly to
mee
t the
ir c
omm
on e
cono
mic
, so
cial
, and
cul
tura
l nee
ds
and
asp
irat
ions
thro
ugh
join
tly
owne
d a
nd d
emoc
rati
cally
con
trol
led
ent
erp
rise
s
yp
�Id
eolo
gy
:�
Wel
fare
sta
te�
Mut
ualb
enef
its
for
the
soci
ety
�M
utua
l ben
efit
s fo
r th
e so
ciet
y�
Eco
nom
ic d
emoc
racy
-soc
ialis
m.
�R
egul
ated
com
pet
itiv
e en
viro
nmen
t.
54
TY
PE
S O
F C
OO
PE
RA
TIV
E E
NT
ER
PR
ISE
�R
etai
ler
coop
erat
ive
�to
get
dis
coun
ts fr
om th
e m
anuf
actu
rers
�
loca
llyow
ned
�lo
cally
ow
ned
�W
orke
r’s
coo
per
ativ
e�
Eve
ry w
orke
r is
a p
artn
er
�V
olun
teer
coo
per
ativ
e�
Non
pro
fit s
ervi
ce o
rien
ted
�S
ocia
lcoo
per
ativ
e�
Soc
ial c
oop
erat
ive
�W
ith
soci
al c
onsc
ienc
e in
the
min
d
�C
onsu
mer
coo
per
ativ
e�
Con
sum
er o
rien
ted
.
55
PU
BLI
C S
EC
TO
R U
ND
ER
TAK
ING
�A
pub
ic s
ecto
r en
terp
rise
may
be
def
ined
as
any
com
mer
cial
or
ind
ustr
ial u
nder
taki
ng o
wne
d a
nd m
anag
ed b
y th
e go
vern
men
t wit
h a
view
to m
axim
ize
soci
al w
elfa
re a
nd
g upho
ld th
e p
ublic
inte
rest
.�
Any
bus
ines
s un
its
owne
d, m
anag
ed a
nd c
ontr
olle
d b
y th
e ce
ntra
lst
ate
orlo
calg
over
nmen
tare
term
edas
pub
licse
ctor
cent
ral,
stat
e or
loca
l gov
ernm
ent a
re te
rmed
as
pub
lic s
ecto
r en
terp
rise
s or
pub
lic e
nter
pri
ses.
The
se a
re a
lso
know
n as
p
ublic
sec
tor
und
erta
king
s.
�P
ublic
ente
rpri
ses
cons
ist
ofna
tion
aliz
edp
riva
tese
ctor
�P
ublic
ent
erp
rise
s co
nsis
t of
nat
iona
lized
pri
vate
sec
tor
ente
rpri
ses,
suc
h as
, ban
ks, L
ife In
sura
nce
Cor
por
atio
n of
Ind
ia
and
the
new
ent
erp
rise
s se
t up
by
the
gove
rnm
ent
such
as
Hin
dus
tan
Mac
hine
Tool
s(H
MT
)G
asA
utho
rity
ofIn
dia
(GA
IL)
Hin
dus
tan
Mac
hine
Too
ls (
HM
T),
Gas
Aut
hori
ty o
f In
dia
(GA
IL),
S
tate
Tra
din
g C
orp
orat
ion
(STC
) etc
.
56
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.14
PU
BLI
C S
EC
TO
R U
ND
ER
TAK
ING
[CO
NT
D.]
�C
hara
cter
isti
cs:
�G
over
nmen
t Ow
ners
hip
and
Man
agem
ent
�Fi
nanc
edfr
omG
over
nmen
tFun
ds
�Fi
nanc
ed fr
om G
over
nmen
t Fun
ds
�P
ublic
Wel
fare
�P
ublic
Uti
lity
Ser
vice
sy
�P
ublic
Acc
ount
abili
ty�
Exc
essi
ve F
orm
alit
ies
57
PU
BLI
C S
EC
TO
R U
ND
ER
TAK
ING
[CO
NT
D.]
58
59
CO
RP
OR
AT
E F
RA
ME
WO
RK
Uni
t –1.
3
CO
RP
OR
AT
E F
RA
ME
WO
RK
�It
is th
e se
t of
pro
cess
es, c
usto
ms,
pol
icie
s, la
ws,
and
in
stit
utio
ns a
ffec
ting
the
way
a c
orp
orat
ion
is d
irec
ted
, ad
min
iste
red
or
cont
rolle
d.
�C
orp
orat
e fr
amew
ork
also
incl
udes
the
rela
tion
ship
s am
ong
th
e m
any
stak
ehol
der
s in
volv
ed a
nd th
e go
als
for
whi
ch th
e co
rpor
atio
nis
gove
rned
corp
orat
ion
is g
over
ned
.�
Pri
ncip
les:
�
Rig
hts
and
eq
uita
ble
trea
tmen
t of
shar
ehol
der
s�
Inte
rest
s of
oth
er s
take
hold
ers
�R
ole
and
res
pon
sib
iliti
es o
f th
e b
oard
�In
teg
rity
and
eth
ical
beh
avio
rg
y�
Dis
clos
ure
and
tran
spar
ency
60
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.15
CO
RP
OR
AT
E F
RA
ME
WO
RK
[CO
NT
D.]
�C
ontr
ollin
g F
acto
rs:
�M
onit
orin
g b
y th
e b
oard
of
dir
ecto
rs�
Inte
rnal
cont
rolp
roce
dur
esan
din
tern
alau
dit
ors
�In
tern
al c
ontr
ol p
roce
dur
es a
nd in
tern
al a
udit
ors
�B
alan
ce o
f p
ower
�P
erfo
rman
ce-b
ased
rem
uner
atio
n
Et
lFt
Aff
tiC
tF
k�
Ext
erna
l Fac
tors
Aff
ecti
ng C
orp
orat
e Fr
amew
ork:
�
Com
pet
itio
n�
Deb
t cov
enan
ts�
Fina
ncia
l sta
tem
ents
�G
over
nmen
t re
gul
atio
ns�
Man
ager
iall
abou
rm
arke
t�
Man
ager
ial l
abou
r m
arke
t�
Med
ia p
ress
ure
�Ta
keov
ers
61
SH
AR
E H
OLD
ER
S
�A
sha
reho
lder
or
stoc
khol
der
is a
n in
div
idua
l or
inst
itut
ion
(inc
lud
ing
a c
orp
orat
ion)
that
lega
lly o
wns
one
or
mor
e sh
ares
of
sto
ck in
a p
ublic
or
pri
vate
cor
por
atio
n.
pp
p�
Sha
reho
lder
s ow
n th
e st
ock,
but
not
the
corp
orat
ion
itse
lf.
�S
tock
hold
ers
are
gran
ted
sp
ecia
l pri
vile
ges
dep
end
ing
on
the
clas
sof
stoc
kcl
ass
of s
tock
.
62
SH
AR
E H
OLD
ER
S [C
ON
TD
.]
�Th
ese
rig
hts
may
incl
ude:
�Th
e ri
ght
to s
ell t
heir
sha
res
�Th
eri
ght
tovo
teon
the
dir
ecto
rsno
min
ated
byth
eb
oard
�Th
e ri
ght
to v
ote
on th
e d
irec
tors
nom
inat
ed b
y th
e b
oard
�Th
e ri
ght
to n
omin
ate
dir
ecto
rs (a
ltho
ugh
this
is v
ery
dif
ficu
lt
in p
ract
ice
bec
ause
of
min
orit
y p
rote
ctio
ns) a
nd p
rop
ose
hh
ldl
shar
ehol
der
res
olut
ions
�Th
e ri
ght
to d
ivid
end
s if
they
are
dec
lare
d�
The
rig
htto
pur
chas
ene
wsh
ares
issu
edby
the
com
pan
y�
The
rig
ht to
pur
chas
e ne
w s
hare
s is
sued
by
the
com
pan
y�
The
rig
ht to
wha
t ass
ets
rem
ain
afte
r a
liqui
dat
ion.
63
BO
AR
D O
F D
IRE
CT
OR
S
�A
cor
por
atio
n, w
heth
er fo
r-p
rofi
t or
nonp
rofi
t, is
req
uire
d to
ha
ve a
gov
erni
ng B
oard
of
Dir
ecto
rs.
�E
ach
corp
orat
ion
has
aB
oard
ofD
irec
tors
that
rep
rese
nts
the
�E
ach
corp
orat
ion
has
a B
oard
of
Dir
ecto
rs th
at r
epre
sent
s th
e st
ockh
old
ers
or th
e p
ublic
. �
Mem
ber
s of
a g
over
ning
Boa
rd h
ave
cert
ain
lega
lly r
equi
red
(f
iduc
iary
)dut
ies
incl
udin
gd
utie
sof
care
loya
lty
and
(fid
ucia
ry) d
utie
s, in
clud
ing
dut
ies
of c
are,
loya
lty
and
ob
edie
nce
(som
e st
ates
and
cou
ntri
es u
se d
iffe
rent
term
s --
for
exam
ple
, in
Can
ada,
the
dut
ies
of c
are
and
loya
lty
are
ftt
d)
ofte
n st
ress
ed).
�
For-
pro
fit B
oard
s of
ten
are
refe
rred
to a
s "c
orp
orat
e" B
oard
s,
whi
ch r
eally
is a
mis
nom
er b
ecau
se b
oth
nonp
rofi
t and
for-
pro
fit c
orp
orat
ions
are
req
uire
d to
hav
e B
oard
s --
not j
ust f
or-
pro
fit c
orp
orat
ions
.
64
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.16
CO
MM
ITT
EE
S
�E
stab
lish
com
mit
tees
whe
n it
's a
pp
aren
t tha
t iss
ues
are
too
com
ple
x an
d/o
r nu
mer
ous
to b
e ha
ndle
d b
y th
e en
tire
boa
rd.
�Fo
ron
goin
g,m
ajor
acti
viti
eses
tabl
ish
stan
din
gco
mm
itte
es;
�Fo
r on
goin
g, m
ajor
act
ivit
ies
esta
blis
h st
and
ing
com
mit
tees
; fo
r sh
ort-
term
act
ivit
ies,
est
ablis
h ad
hoc
com
mit
tees
that
ce
ase
whe
n th
e ac
tivi
ties
are
com
ple
ted
. Sta
ndin
g
com
mit
tees
shou
ldb
ein
clud
edin
the
by-la
ws
com
mit
tees
sho
uld
be
incl
uded
in th
e by
law
s.�
Com
mit
tees
rec
omm
end
pol
icy
for
app
rova
l by
the
enti
re
boa
rd.
�C
omm
itte
es m
ake
full
use
of b
oard
mem
ber
s' e
xper
tise
, tim
e an
d c
omm
itm
ent,
and
ens
ure
div
ersi
ty o
f op
inio
ns o
n th
e b
oard
.
65
CO
MM
ITT
EE
S [C
ON
TD
.]
�Th
ey d
o no
t sup
pla
nt r
esp
onsi
bili
ty o
f ea
ch b
oard
mem
ber
; th
ey o
per
ate
at th
e b
oard
leve
l and
not
the
staf
f le
vel.
�C
omm
itte
esm
aym
eetm
onth
ly(t
his
isty
pic
alto
new
�C
omm
itte
es m
ay m
eet m
onth
ly (t
his
is ty
pic
al to
new
or
gani
zati
ons,
wit
h w
orki
ng b
oard
s), e
very
two
mon
ths,
or
ever
y th
ree
mon
ths;
if m
eeti
ngs
are
not h
eld
mon
thly
, att
emp
t to
have
com
mit
tees
mee
tdur
ing
the
mon
ths
bet
wee
nfu
llto
hav
e co
mm
itte
es m
eet d
urin
g th
e m
onth
s b
etw
een
full
boa
rd m
eeti
ngs.
�M
inut
es s
houl
d b
e re
cord
ed fo
r al
l boa
rd m
eeti
ngs
and
for
Eti
Cit
tti
ifth
BL
id
it
thE
xecu
tive
Com
mit
tee
mee
ting
s if
the
ByL
aws
ind
icat
e th
e E
xecu
tive
Com
mit
tee
can
mak
e d
ecis
ions
in p
lace
of
the
boa
rd w
hen
need
ed.
66
CH
IEF
EXE
CU
TIV
E
�Th
e d
efin
itio
n of
"ch
ief
exec
utiv
e of
fice
r" (a
lmos
t alw
ays)
d
epen
ds
on w
heth
er a
bus
ines
s is
a c
orp
orat
ion
or n
ot, t
hat
is, w
heth
er it
(usu
ally
) has
a b
oard
of
dir
ecto
rs o
r no
t.
(y)
�In
an
orga
niza
tion
that
has
a b
oard
of
dir
ecto
rs, t
he "
chie
f ex
ecut
ive
offi
cer"
is (u
sual
ly) t
he s
ing
ular
org
aniz
atio
nal
pos
itio
nth
atis
pri
mar
ilyre
spon
sibl
eto
carr
you
tthe
stra
teg
icp
osit
ion
that
is p
rim
arily
res
pon
sibl
e to
car
ry o
ut th
e st
rate
gic
p
lans
and
pol
icie
s as
est
ablis
hed
by
the
boa
rd o
f d
irec
tors
. �
In th
is c
ase,
the
chie
f ex
ecut
ive
rep
orts
to th
e b
oard
of
di
tI
ff
bi
thti
llit
ht
bd
dir
ecto
rs. I
n a
form
of
busi
ness
that
is u
sual
ly w
itho
ut a
boa
rd
of d
irec
tors
(sol
e p
rop
riet
orsh
ip, p
artn
ersh
ip, e
tc.)
,
67
CH
IEF
EXE
CU
TIV
E [C
ON
TD
.]
�th
e "c
hief
exe
cuti
ve o
ffic
er"
is (u
sual
ly) t
he s
ing
ular
or
gani
zati
onal
pos
itio
n (o
ther
than
par
tner
ship
s, e
tc.)
that
se
ts th
e d
irec
tion
and
ove
rsee
s th
e op
erat
ions
of
an
por
gani
zati
on.
�R
esp
onsi
bili
ties
: �
Boa
rdA
dm
inis
trat
ion
and
Sup
por
t�
Boa
rd A
dm
inis
trat
ion
and
Sup
por
t
�P
rog
ram
, Pro
duc
t an
d S
ervi
ce D
eliv
ery
�Fi
nanc
ial,
Tax,
Ris
k an
d F
acili
ties
Man
agem
ent
�H
uman
Res
ourc
e M
anag
emen
t
�C
omm
unit
y an
d P
ublic
Rel
atio
ns
�Fu
ndra
isin
g (
nonp
rofi
t-sp
ecif
ic).
g
(p
p)
68
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.17
LIN
E &
FU
NC
TIO
NA
L T
YP
E M
AN
AG
ER
S
�Li
ne m
anag
ers
have
the
form
al p
ower
to d
irec
t and
con
trol
im
med
iate
sub
ord
inat
es.
�Th
esu
per
ior
issu
esor
der
san
dis
resp
onsi
ble
for
the
resu
lt—
�Th
e su
per
ior
issu
es o
rder
s an
d is
res
pon
sibl
e fo
r th
e re
sult
the
sub
ord
inat
e ob
eys
and
is r
esp
onsi
ble
only
for
exec
utin
g
the
ord
er a
ccor
din
g to
inst
ruct
ions
.
69
LIN
E &
FU
NC
TIO
NA
L T
YP
E M
AN
AG
ER
S [C
ON
TD
.]
�Fu
ncti
onal
man
ager
s ha
ve fo
rmal
pow
er o
ver
a sp
ecif
ic
sub
set o
f ac
tivi
ties
. �
For
inst
ance
,the
Pro
duc
tion
Man
ager
may
have
the
line
�Fo
r in
stan
ce, t
he P
rod
ucti
on M
anag
er m
ay h
ave
the
line
auth
orit
y to
dec
ide
whe
ther
and
whe
n a
new
mac
hine
is
need
ed b
ut th
e C
ontr
olle
r d
eman
ds
that
a C
apit
al E
xpen
dit
ure
Pro
pos
alis
sub
mit
ted
firs
tsh
owin
gth
atth
ein
vest
men
twill
Pro
pos
al is
sub
mit
ted
firs
t, s
how
ing
that
the
inve
stm
ent w
ill
have
a y
ield
of
at le
ast x
%; o
r, a
lega
l dep
artm
ent m
ay h
ave
func
tion
al a
utho
rity
to in
terf
ere
in a
ny a
ctiv
ity
that
cou
ld h
ave
lega
lcon
seq
uenc
esle
gal c
onse
que
nces
. �
This
aut
hori
ty w
ould
not
be
func
tion
al b
ut it
wou
ld r
athe
r b
e st
aff
auth
orit
y if
suc
h in
terf
eren
ce is
"ad
vice
" ra
ther
than
"
d"
"ord
er".
70
SK
ILLS
& M
AN
AG
EM
EN
T L
EV
ELS
Con
cept
ual
and
desi
gn
skill
s
Top
man
agem
ent
Hum
an
skill
sM
iddl
e M
anag
emen
t
vv
vv
vv
vv
v
Tech
nica
l sk
ills
Supe
rvis
ors
Perc
ent
ofjo
bPe
rcen
t of
job
71
72
TR
AD
E U
NIO
NS
Uni
t –1.
4
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.18
HIS
TO
RY
OF
TR
AD
E U
NIO
NS
IN IN
DIA
�S
ocia
l Wel
fare
Per
iod
(187
5-19
18�
Ear
ly T
rad
e U
nion
Per
iod
(191
8-19
24)
�Le
ftW
ing
Uni
onis
mP
erio
d(1
924
1934
)�
Left
-Win
g U
nion
ism
Per
iod
(192
4-19
34)
�Tr
ade
Uni
on’s
Uni
ty P
erio
d (1
935-
1938
) �
Sec
ond
Wor
ld W
ar P
erio
d (1
939-
1945
)(
)�
The
Pos
t-In
dep
end
ence
Per
iod
(Fro
m 1
947
to-d
ate)
73
INT
RO
DU
CT
ION
�D
efin
itio
n:
�A
trad
e un
ion
or la
bor
uni
on i
s an
org
aniz
atio
n of
wor
kers
that
ha
ve b
and
ed to
geth
er t
o ac
hiev
e co
mm
on g
oals
.g
g
�O
bje
ctiv
es:
�R
epre
sent
atio
n�
Neg
otia
tion
�N
egot
iati
on�
Voi
ce in
dec
isio
ns a
ffec
ting
wor
kers
�M
emb
er S
ervi
ces:
�
Ed
ucat
ion
and
trai
ning
�
Lega
l ass
ista
nce
�Fi
nanc
ial d
isco
unts
.
74
FUN
CT
ION
S
�M
ilita
nt:
�To
ach
ieve
hig
her
wag
es a
nd b
ette
r w
orki
ng c
ond
itio
ns�
Tora
ise
the
stat
usof
wor
kers
asa
par
tof
ind
ustr
y.�
To r
aise
the
stat
us o
f w
orke
rs a
s a
par
t of
ind
ustr
y.
�To
pro
tect
lab
ors
agai
nst v
icti
miz
atio
n an
d in
just
ice.
�Fr
ater
nal:
�To
take
up
wel
fare
mea
sure
s fo
r im
pro
ving
the
mor
ale
of w
orke
rs�
To g
ener
ate
self
con
fid
ence
am
ong
wor
kers
�To
enc
oura
ge s
ince
rity
and
dis
cip
line
amon
g w
orke
rs�
To p
rovi
de
opp
ortu
niti
es fo
r p
rom
otio
n an
d g
row
th�
To p
rote
ct w
omen
wor
kers
aga
inst
dis
crim
inat
ion.
75
RE
AS
ON
S F
OR
JO
ININ
G T
RA
DE
UN
ION
�G
reat
er b
arga
inin
g p
ower
�M
inim
ize
dis
crim
inat
ion
�S
ense
ofse
curi
ty�
Sen
se o
f se
curi
ty�
Sen
se o
f p
arti
cip
atio
n�
Sen
se o
f b
elon
gin
gne
ssg
g�
Pla
tfor
m fo
r se
lf e
xpre
ssio
n�
Bet
term
ent o
f re
lati
onsh
ips
76
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.19
TR
AD
E U
NIO
N A
CT,
192
6
�In
dia
n Tr
ade
Uni
on A
ct 1
926
is a
pri
ncip
al a
ct th
at p
rovi
des
ad
equa
te s
afeg
uard
s to
the
rig
hts
of la
bor
mas
ses.
�Th
eTr
ade
Uni
ons
Act
,192
6ha
sd
efin
edth
ero
leof
trad
e�
The
Trad
e U
nion
s A
ct, 1
926
has
def
ined
the
role
of
trad
e un
ions
and
als
o se
t cer
tain
con
trol
ling
mec
hani
sms.
The
mai
n ai
ms
and
ob
ject
ives
of
this
Act
em
pha
size
s on
the
reci
pro
cal
rela
tion
ship
bet
wee
nth
eem
plo
yers
and
emp
loye
esre
lati
onsh
ip b
etw
een
the
emp
loye
rs a
nd e
mp
loye
es.
77
UN
ION
PR
OB
LEM
S
�Tr
ade
unio
n le
ader
ship
�M
ulti
ple
uni
ons
�U
nion
riva
lry
�U
nion
riv
alry
�Fi
nanc
e�
Oth
er p
robl
ems:
p
�Ill
iter
acy
�U
neve
n g
row
th
�Lo
wm
emb
ersh
ip�
Low
mem
ber
ship
78
RE
FER
EN
CE
S
�H
eral
d K
oont
z an
d H
einz
Wei
hric
h, ‘E
ssen
tial
s of
M
anag
emen
t’,
McG
raw
Hill
Pub
lishi
ng C
omp
any,
Sin
gap
ore
Inte
rnat
iona
l Ed
itio
n, 1
980.
�
M. G
ovin
dar
ajan
and
S. N
atar
ajan
, Pri
ncip
les
of M
anag
emen
t,
Pre
ntic
e H
all o
f In
dia
Pvt
. Ltd
., N
ew D
elhi
, 200
7.
79
A.Sriraman MG - 9362: Industrial Management Unit - 01 :: Pg.20