Industrial Management Complete Notes TE E - TC

INDUSTRIAL MANAGEMENT (T.E.
E&TC/Electronics)
(As per Final Discussion Points)
Prof. S. L. Kurkute
Email: kurkutesanjay@yahoo.co.in,
Dr. H. R. Kulkarni
hrkulkarni@rediffmail.com,
Prof. M. M. Sanap
mangeshmsanap@gmail.com
Unit-I Current Industrial Management Practices

Basics and need of management theory: Managing is one of the most important human activities. Social organizations try to accomplish aims and objectives as group, thus managing ensures the coordination of individual efforts. As many organized groups have become large, the task of managers has been increasing in importance and complexity. Henceforth, managerial theory has become crucial in the way managers manage complex organizations. Definition of Management: Management is the art, or science, of achieving goals through people MANAGERS also supervise i.e. make sure people do what they are supposed to do. Managers are, therefore, expected to ensure greater productivity. More broadly, management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.
1.1: Functions of Management Planning, Organizing, Staffing, Direction, Co-ordination, Co-operation, Control, Leadership. Principles of Management- Henry Fayol & F.W.Taylor, Levels of Management, Management are Art or Science?
Management Objectives, Functions, Goals, and Essentiality: Management Objectives There are basically three management objectives. 1. Ensuring organizational goals and targets with least cost and minimum waste. 2. Looking after health and welfare, and safety of staff. 3. Protecting the machinery and resources of the organization, including the human resources. Manage functions Planning: Planning involves selecting missions and objectives and the actions to achieve them. It requires decision-making i.e., choosing future courses of action from among alternatives. Before a decision is made, all that exists is planning study, analysis, or a proposal; there is no real plan.
INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Prof. S. L. Kurkute
Dr. H. R. Kulkarni
Prof. M. M. Sanap
Organizing: People working together in groups to achieve some goal must have roles to play. Generally, these roles have to be defined and structured by someone who wants to make sure that people contribute in a specific way to group effort. Organizing, therefore, is that part of management that involves establishing an intentional structure of roles for people to fill in an organization. Goals are assigned and assigned to people who can do those best. Indeed, the purpose of an organizational structure is to help in creating an environment for human performance. Staffing: Staffing involves filling, and keeping filled, the positions in the organization structure. This is done by identifying work-force requirements; inventorying the people available; and recruiting, selecting, placing, promoting, appraising, planning the careers of, compensating, and training or otherwise developing both candidates and current jobholders to accomplish their tasks effectively and efficiently. Leading: Leading is the influencing of people so that they will contribute to organization and group goals; it has to do predominantly with the interpersonal aspect of managing. Most important problems to managers arise from people their desires and attitudes, their behavior as individuals and in groups. Hence, effective managers need to be effective leaders. Leading involves motivation, leadership styles and approaches and communication. Controlling: Controlling, for example, budget for expense, is the measuring and correcting of activities of subordinates to ensure that events conform to plans. It measures performance against goals and plans, shows where negative deviations exist, and by putting in motion actions to correct deviations, helps ensure accomplishment of plans. Coordination: Finally, coordination is the essence of manager-ship for achieving harmony among individual efforts toward the accomplishment of group goals. A manager who achieves such an aim is said to be a strategic manager. The second goal or aim of all managers is that they must be productive. Productivity improvement is about effectively performing the basic managerial and non-managerial activities. Simply defined, Productivity is about the output-input ratio within a time period with due consideration for equality. Effectiveness is the achievement of objectives. Efficiency is the achievement of the ends with the least amount of resources.

Prof. S. L. Kurkute
Dr. H. R. Kulkarni
Prof. M. M. Sanap
Managers cannot know whether they are productive unless they first know their goals and those of the organization. Main areas for management: Problem solving: Management is about solving problems that keep emerging all the time in the course of an organization struggling to achieve its goals and objectives. Problem solving should be accompanied by problem identification, analysis and the implementation of remedies to managerial problems. 1) Administration: Administration involves following laid down procedures for the execution, control, communication, delegation and crisis management. 2) Human resource management: Human resource management should be based on strategic integration of human resource, assessment of workers, and exchange of ideas between shareholders and workers. 3) Organizational leadership: Organizational leadership should be developed along lines of interpersonal relationship, teamwork, self-motivation to perform, emotional strength and maturity to handle situations, personal integrity, and general management skills.
Fig: Management Process / Functions of management 3

Prof. S. L. Kurkute
Dr. H. R. Kulkarni
Prof. M. M. Sanap
Different Functions of Management: Planning Function

Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programme regarding future courses of action. It is rightly said Well plan is half done. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective coordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources. According to Urwick, Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals. According to Koontz & ODonell, Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur.
Steps in Planning Function

Planning function of management involves following steps:-
1. Establishment of objectives
a. b. c. d. e. f. g. h. a. b. c. d. e. f. g. a. b. c. d. Planning requires a systematic approach. Planning starts with the setting of goals and objectives to be achieved. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts. Moreover objectives focus the attention of managers on the end results to be achieved. As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives should be stated in a clear, precise and unambiguous language. Otherwise the activities undertaken are bound to be ineffective. As far as possible, objectives should be stated in quantitative terms. For example, Number of men working, wages given, units produced, etc. But such an objective cannot be stated in quantitative terms like performance of quality control manager, effectiveness of personnel manager. Such goals should be specified in qualitative terms. Hence objectives should be practical, acceptable, workable and achievable. Planning premises are the assumptions about the lively shape of events in future. They serve as a basis of planning. Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations. It is to find out what obstacles are there in the way of business during the course of operations. Establishment of planning premises is concerned to take such steps that avoids these obstacles to a great extent. Planning premises may be internal or external. Internal includes capital investment policy, management labour relations, philosophy of management, etc. Whereas external includes socioeconomic, political and economical changes. Internal premises are controllable whereas external are non- controllable. When forecast are available and premises are established, a number of alternative course of actions have to be considered. For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. The merits, demerits as well as the consequences of each alternative must be examined before the choice is being made. After objective and scientific evaluation, the best alternative is chosen.
2. Establishment of Planning Premises
3. Choice of alternative course of action

Prof. S. L. Kurkute
Dr. H. R. Kulkarni
Prof. M. M. Sanap
e.
The planners should take help of various quantitative techniques to judge the stability of an alternative. Derivative plans are the sub plans or secondary plans which help in the achievement of main plan. Secondary plans will flow from the basic plan. These are meant to support and expediate the achievement of basic plans. These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. For example, if profit maximization is the main aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization. Derivative plans indicate time schedule and sequence of accomplishing various tasks. After the plans have been determined, it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence. The purposes behind taking them into confidence are :a. Subordinates may feel motivated since they are involved in decision making process. b. The organization may be able to get valuable suggestions and improvement in formulation as well as implementation of plans. c. Also the employees will be more interested in the execution of these plans. After choosing a particular course of action, it is put into action. After the selected plan is implemented, it is important to appraise its effectiveness. This is done on the basis of feedback or information received from departments or persons concerned. This enables the management to correct deviations or modify the plan. This step establishes a link between planning and controlling function. The follow up must go side by side the implementation of plans so that in the light of observations made, future plans can be made more realistic.
4. Formulation of derivative plans

a. b. c. d. a. b.
5. Securing Co-operation
6. Follow up/Appraisal of plans

a. b. c. d. e. f.
Organizing function
Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According to Chester Barnard, Organizing is a function by which the concern is able to define the role positions, the jobs related and the coordination between authority and responsibility. Hence, a manager always has to organize in order to get results. A manager performs organizing function with the help of following steps:1. 2. 3. Identification of activities - All the activities which have to be performed in a concern have to be identified first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units. Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments is called departmentation. Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen. The clarification of authority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concerns working. Co-ordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are
4.

Prof. S. L. Kurkute
Dr. H. R. Kulkarni
Prof. M. M. Sanap
accountable and to whom they have to report. A clear organizational structure is drawn and all the employees are made aware of it.
Staffing Function of Management

The managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal and development of the personnels to fill the roles assigned to the employers/workforce. According to Theo Haimann, Staffing pertains to recruitment, selection, development and compensation of subordinates.
Nature of Staffing Function

1. Staffing is an important managerial function- Staffing function is the most important mangerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all types of concerns where business activities are carried out. Staffing is a continuous activity- This is because staffing function continues throughout the life of an organization due to the transfers and promotions that take place. The basis of staffing function is efficient management of personnels- Human resources can be efficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training and development, providing remuneration, etc. Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements. Staffing is performed by all managers depending upon the nature of business, size of the company, qualifications and skills of managers,etc. In small companies, the top management generally performs this function.In medium and small scale enterprise, it is performed especially by the personnel department of that concern.
2. 3. 4. 5. 6.
DIRECTING Function of Management

DIRECTING is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process. Planning, organizing, staffing have got no importance if direction function does not take place. Directing initiates action and it is from here actual work starts. Direction is said to be consisting of human factors. In simple words, it can be described as providing guidance to workers is doing work. In field of management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. According to Human, Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards accomplishment of organizational goals. Direction has got following characteristics: 1. 2. 3. 4. Pervasive Function - Directing is required at all levels of organization. Every manager provides guidance and inspiration to his subordinates. Continuous Activity - Direction is a continuous activity as it continuous throughout the life of organization. Human Factor - Directing function is related to subordinates and therefore it is related to human factor. Since human factor is complex and behaviour is unpredictable, direction function becomes important. Creative Activity - Direction function helps in converting plans into performance. Without this function,

Prof. S. L. Kurkute
Dr. H. R. Kulkarni
Prof. M. M. Sanap
5. 6.
people become inactive and physical resources are meaningless. Executive Function - Direction function is carried out by all managers and executives at all levels throughout the working of an enterprise, a subordinate receives instructions from his superior only. Delegate Function - Direction is supposed to be a function dealing with human beings. Human behaviour is unpredictable by nature and conditioning the peoples behaviour towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having delicacy in it to tackle human behaviour.
Controlling Function of Management

What is Controlling?
Controlling consists of verifying whether everything occurs in confirmities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions According to Brech, Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs. According to Donnell, Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course. Controlling has got two basic purposes 1. 2. It facilitates co-ordination It helps in planning
Features of Controlling Function

Following are the characteristics of controlling function of management1. 2. 3. 4. 5. Controlling is an end function- A function which comes once the performances are made in confirmities with plans. Controlling is a pervasive function- which means it is performed by managers at all levels and in all type of concerns. Controlling is forward looking- because effective control is not possible without past being controlled. Controlling always look to future so that follow-up can be made whenever required. Controlling is a dynamic process- since controlling requires taking reviewal methods, changes have to be made wherever possible. Controlling is related with planning- Planning and Controlling are two inseperable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.
Leadership
Leadership is a process by which an executive can direct, guide and influence the behavior and work of others towards accomplishment of specific goals in a given situation. Leadership is the ability of a manager to induce the subordinates to work with confidence and zeal. Leadership is the potential to influence behaviour of others. It is also defined as the capacity to influence a group towards the realization of a goal. Leaders are required to develop future visions, and to motivate the organizational members to want to achieve the visions.

Prof. S. L. Kurkute
Dr. H. R. Kulkarni
Prof. M. M. Sanap
According to Keith Davis, Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the human factor which binds a group together and motivates it towards goals.
Characteristics of Leadership
1. 2. 3. 4. 5. It is a inter-personal process in which a manager is into influencing and guiding workers towards attainment of goals. It denotes a few qualities to be present in a person which includes intelligence, maturity and personality. It is a group process. It involves two or more people interacting with each other. A leader is involved in shaping and moulding the behaviour of the group towards accomplishment of organizational goals. Leadership is situation bound. There is no best style of leadership. It all depends upon tackling with the situations.
Leadership and management are the terms that are often considered synonymous. It is essential to understand that leadership is an essential part of effective management. As a crucial component of management, remarkable leadership behaviour stresses upon building an environment in which each and every employee develops and excels. Leadership is defined as the potential to influence and drive the group efforts towards the accomplishment of goals. This influence may originate from formal sources, such as that provided by acquisition of managerial position in an organization. A manager must have traits of a leader, i.e., he must possess leadership qualities. Leaders develop and begin strategies that build and sustain competitive advantage. Organizations require robust leadership and robust management for optimal organizational efficiency.
Differences between Leadership and Management

Leadership differs from management in a sense that: 1. 2. 3. 4. 5. 6. 7. 8. 9. While managers lay down the structure and delegates authority and responsibility, leaders provides direction by developing the organizational vision and communicating it to the employees and inspiring them to achieve it. While management includes focus on planning, organizing, staffing, directing and controlling; leadership is mainly a part of directing function of management. Leaders focus on listening, building relationships, teamwork, inspiring, motivating and persuading the followers. While a leader gets his authority from his followers, a manager gets his authority by virtue of his position in the organization. While managers follow the organizations policies and procedure, the leaders follow their own instinct. Management is more of science as the managers are exact, planned, standard, logical and more of mind. Leadership, on the other hand, is an art. In an organization, if the managers are required, then leaders are a must/essential. While management deals with the technical dimension in an organization or the job content; leadership deals with the people aspect in an organization. While management measures/evaluates people by their name, past records, present performance; leadership sees and evaluates individuals as having potential for things that cant be measured, i.e., it deals with future and the performance of people if their potential is fully extracted. If management is reactive, leadership is proactive. Management is based more on written communication, while leadership is based more on verbal communication
A leader has got multidimensional traits in him which makes him appealing and effective in behavior. The following are the requisites to be present in a good leader:

Prof. S. L. Kurkute
Dr. H. R. Kulkarni
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Physical appearance- A leader must have a pleasing appearance. Physique and health are very important for a good leader. 2. Vision and foresight- A leader cannot maintain influence unless he exhibits that he is forward looking. He has to visualize situations and thereby has to frame logical programmes. 3. Intelligence- A leader should be intelligent enough to examine problems and difficult situations. He should be analytical who weighs pros and cons and then summarizes the situation. Therefore, a positive bent of mind and mature outlook is very important. 4. Communicative skills- A leader must be able to communicate the policies and procedures clearly, precisely and effectively. This can be helpful in persuasion and stimulation. 5. Objective- A leader has to be having a fair outlook which is free from bias and which does not reflects his willingness towards a particular individual. He should develop his own opinion and should base his judgement on facts and logic. 6. Knowledge of work- A leader should be very precisely knowing the nature of work of his subordinates because it is then he can win the trust and confidence of his subordinates. 7. Sense of responsibility- Responsibility and accountability towards an individuals work is very important to bring a sense of influence. A leader must have a sense of responsibility towards organizational goals because only then he can get maximum of capabilities exploited in a real sense. For this, he has to motivate himself and arouse and urge to give best of his abilities. Only then he can motivate the subordinates to the best. 8. Self-confidence and will-power- Confidence in himself is important to earn the confidence of the subordinates. He should be trustworthy and should handle the situations with full will power. (You can read more about Self-Confidence at : Self Confidence - Tips to be Confident and Eliminate Your Apprehensions). 9. Humanist-This trait to be present in a leader is essential because he deals with human beings and is in personal contact with them. He has to handle the personal problems of his subordinates with great care and attention. Therefore, treating the human beings on humanitarian grounds is essential for building a congenial environment. 10. Empathy- It is an old adage Stepping into the shoes of others. This is very important because fair judgement and objectivity comes only then. A leader should understand the problems and complaints of employees and should also have a complete view of the needs and aspirations of the employees. This helps in improving human relations and personal contacts with the employees. From the above qualities present in a leader, one can understand the scope of leadership and its importance for scope of business. A leader cannot have all traits at one time. But a few of them helps in achieving effective results.
1.
Coordination function
There are three basic coordinating mechanisms: mutual adjustment, direct supervision, and standardization (of which there are three types: of work processes, of work outputs, and of worker skills).

Prof. S. L. Kurkute
Dr. H. R. Kulkarni
Prof. M. M. Sanap
Mutual Adjustment This mechanism is based on the simple process of informal communication. It is used in very small companies, such as a 5-person software shop, or for very, very complicated tasks, such as putting the first person on the moon. Mutual adjustment is the same mechanism used by furniture movers to manoeuvre through a house, or paddlers to take a canoe downriver, or jazz musicians playing a live engagement. It's especially useful when nobody really knows ahead of time how to do what they're doing. Direct Supervision Achieves coordination by having one person take responsibility for the work of others, issuing instructions and monitoring their actions. An example is the offensive unit of a football team. Here, there is marked division of labor and specialization, and the efforts of the players are coordinating by a quarterback calling specific plays. If the organization is large enough, one person cannot handle all the members, so multiple leaders or managers must be used, then the efforts of these people (the managers) are coordinated by a manager of managers, and so on. Standardization A third mechanism of coordination is standardization. Here, the coordination is achieved "on the drawing board", so to speak, or "at compile-time" if you like, not during the action or "run-time". The coordination is pre-programmed in one of three ways: Work Processes. An example is the set of assembly instructions that come with a child's toy. Here, the manufacturer standardizes the work process of the parent. Often, the machinery in a factory effectively standardizes work by automatically providing only, say, blue paint when blue paint is needed, and only red paint when red paint is needed. Outputs. Standardized outputs means that there are specifications that the product or work output must meet, but aside from that the worker is free to do as they wish. Stereo equipment manufacturers have a lot of freedom in designing their products, but the interface portions of the product (the connections to other stereo devices like CD's, speakers, tape-recorders, etc.) must be the same as everyone else's, or else it would be hard to put together a complete system. Worker Skills. Professional schools, like medical schools, law school, business school, produce workers that do stuff exactly the same way. How do you treat a staphylococcus infection? You use one of the following antibiotics. It's a series of recipes that are memorized. Employers (e.g., hospitals) can rely on these employees (physicians) to do things the standard way, which allows other employees (e.g., nurses) to coordinate smoothly with them. When a surgeon and an anaesthesiologist meet for the first time in the operating room, they have no problem working together because by virtue of their training they know exactly what to expect from each other.
Cooperation function
Cooperation or co-operation is the process of working or acting together, which can be accomplished by both intentional and non-intentional agents. In its simplest form it involves things working in harmony, side by side, while in its more complicated forms, it can involve something as complex as the inner workings of a human being or even the social patterns of a nation. It is the alternative to working separately in competition. Cooperation can also be accomplished by computers, which can handle shared resources simultaneously, while sharing processor time.
Frederick W. Taylor: Management Theory

Frederick Winslow Taylor is a controversial figure in management history. His innovations in industrial engineering, particularly in time and motion studies, paid off in dramatic improvements in productivity. At the same time, he has been credited with destroying the soul of work, of dehumanizing factories, making men into automatons.
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Dr. H. R. Kulkarni
Prof. M. M. Sanap
F. W. Taylor & Scientific Management by Vincenzo Sandrone Under Taylor's management system, factories are managed through scientific methods rather than by use of the empirical "rule of thumb" so widely prevalent in the days of the late nineteenth century when F. W. Taylor devised his system and published "Scientific Management" in 1911. The main elements of the Scientific Management are : "Time studies Functional or specialized supervision Standardization of tools and implements Standardization of work methods Separate Planning function Management by exception principle The use of "slide-rules and similar time-saving devices" Instruction cards for workmen Task allocation and large bonus for successful performance The use of the 'differential rate' Mnemonic systems for classifying products and implements A routing system A modern costing system etc. etc. " Taylor called these elements "merely the elements or details of the mechanisms of management" He saw them as extensions of the four principles of management. 1. The development of a true science 2. The scientific selection of the workman 3. The scientific education and development of the workman 4. Intimate and friendly cooperation between the management and the men. Taylor warned of the risks managers make in attempting to make change in what would presently be called, the culture, of the organization. He stated the importance of management commitment and the need for gradual implementation and education. He described "the really great problem" involved in the change "consists of the complete revolution in the mental attitude and the habits of all those engaged in the management, as well of the workmen." Taylor taught that there was one and only one method of work that maximized efficiency. "And this one best method and best implementation can only be discovered or developed through scientific study and analysis... This involves the gradual substitution of science for 'rule of thumb' throughout the mechanical arts." "Scientific management requires first, a careful investigation of each of the many modifications of the same implement, developed under rule of thumb; and second, after time and motion study has been made of the speed attainable with each of these implements, that the good points of several of them shall be unified in a single standard implementation, which will enable the workman to work faster and with greater easy than he could before. This one implement, then is the adopted as standard in place of the many different kinds before in use and it remains standard for all workmen to use until superseded by an implement which has been shown, through motion and time study, to be still better." An important barrier to use of scientific management was the limited education of the lower level of supervision and of the work force. A large part of the factory population was composed of recent immigrants who lacked literacy in English. In Taylor's view, supervisors and workers with such low levels of education were not qualified to plan how work should be done. Taylor's solution was to separate planning from execution. "In almost all the mechanic arts the science which underlies each act of each workman is so great and amounts to so much that the workman who is best suited to actually doing the work is incapable of fully understanding this science.." To apply his solution, Taylor created planning departments, staffed them with engineers, and gave them the responsibility to: 1. Develop scientific methods for doing work. 2. Establish goals for productivity. 3. Establish systems of rewards for meeting the goals. 4. Train the personnel in how to use the methods and thereby meet the goals. Perhaps the key idea of Scientific management and the one which has drawn the most criticism was the concept of task allocation. Task allocation is the concept that breaking task into smaller and smaller tasks allows the determination of the optimum solution to the task. "The man in the planning room, whose specialty is planning ahead, invariably finds that the work can be done more economically by subdivision of the labour; each act of each mechanic, for example, should be preceded by various preparatory acts done by other men." The main argument against Taylor is this reductionist approach to work dehumanizes the worker. The allocation of work "specifying not only what is to be done but how it is to done and the exact time allowed for doing it" is seen as leaving no scope for the individual worker to excel or think. This argument is mainly due to later writing rather than Taylor's work as Taylor stated "The task is always so regulated that the man who is well suited to his job will thrive while working at this rate during a long term of years and grow happier and more prosperous, instead of being overworked." Taylor's concept of motivation left something to be desired when compared to later ideas. His methods of motivation started and finished at monetary incentives. While critical of the then prevailing distinction of "us "and "them" between the workforce and employers he tried to find a common ground between the working and managing
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Prof. M. M. Sanap
classes. "Scientific Management has for its foundation the firm conviction that the true interests of the two are one and the same; that prosperity for the employer cannot exist a long term of years unless it is accompanied by prosperity for the employee [sic], and vice versa .." However, this emphasis on monetary rewards was only part of the story. Rivalry between the Bethlehem and Pittsburgh Steel plants led to the offer from Pittsburgh of 4.9 cents per ton against Bethlehem's rate of 3.2 cents per day to the ore loaders. The ore loaders were spoken to individually and their value to the company reinforced and offers to re-hire them at any time were made. The majority of the ore loaders took up the Pittsburgh offers. Most had returned after less than six weeks. The rates at Pittsburgh were determined by gang rates. Peer pressure from the Pittsburgh employees to not work hard meant that the Bethlehem workers actually received less pay than at Bethlehem. Two of the Bethlehem workers requested to be placed in a separate gang, this was rejected by management for the extra work required by management to keep separate record for each worker. Taylor places the blame squarely on management and their inability "to do their share of the work in cooperating with the workmen." Taylor's attitudes towards workers were laden with negative bias "in the majority of cases this man deliberately plans to do as little as he safely can." The methods that Taylor adopted were directed solely towards the uneducated. "When he tells you to pick up a pig and walk, you pick it up and walk, and when he tells you to sit down and rest, you sit down. You do that right through the day. And what's more, no back talk". This type of behaviour towards workers appears barbaric in the extreme to the modern reader, however, Taylor used the example of Schmidt at the Bethlehem Steel Company to test his theories. Taylor admits "This seems rather rough talk. And indeed it would be if applied to an educated mechanic, or even an intelligent labourer." The fact that Taylor took the effort to firstly know the workers name and to cite it is some indication that he empathized with the workforce. This study improved the workrate of Schmidt from 12.5 tons to 47.5 tons per day showing the worth of Scientific Management. The greatest abuse of Scientific Management has come from applying the techniques without the philosophy behind them. It is obvious from Taylor's own observations that the above discussion would be misplaced in other workers. Taylor acknowledged the potential for abuse in his methods. "The knowledge obtained from accurate time study, for example, is a powerful implement, and can be used, in one case to promote harmony between workmen and the management, by gradually educating, training, and leading the workmen into new and better methods of doing the work, or in the other case, it may be used more or less as a club to drive the workmen into doing a larger day's work for approximately the same pay that they received in the past." Scientific Study and standardization were important parts of the Scientific Management. One example, was the study undertaken to determine the optimum shovel load for workers. The figure of 21 pounds was arrived at by the study. To ensure that this shovel load was adhered to, a series of different shovels were purchased for different types of material. Each shovel was designed to ensure that only 21 pounds could be lifted. This stopped the situation where "each shoveller owned his own shovel, that he would frequently go from shoveling ore, with a load of about 30 pounds per shovel, to handling rice coal, with a load on the same shovel of less than 4 pounds. In the one case, he was so overloaded that it was impossible for him to do a full day's work, and in the other case he was so ridiculously under-loaded that it was manifestly impossible to even approximate a day's work." Taylor spent a considerable amount of his books in describing "soldiering" the act of 'loafing' both at an individual level and "systematic soldiering". He described the main reasons that workers were not performing their work at the optimum. Though worded in a patronizing way the essence of the descriptions are still valid: 1. The belief that increased output would lead to less workers. 2. Inefficiencies within the management control system such as poorly designed incentive schemes and hourly pay rates not linked to productivity. 3. Poor design of the performance of the work by rule-of-thumb The fear of redundancies within the workforce was a valid argument during the previous style of management. Taylor not only countered this argument by using economic arguments of increased demand due to decreased pricing but put forward the idea of sharing the gains with the workforce. Taylor saw the weaknesses of piece work in the workers reactions to gradual decreases in the piece rate as the worker produced more pieces by working harder and/or smarter. The worker then is determined to have no more reduction in rate by "soldiering". This deception leads to an antagonistic view of management and a general deterioration of the worker/management relationship. Taylor also was a strong advocate of worker development. It follows that the most important object of both the workman and the establishment should be the training and development of each individual in the establishment, so that he can do ( at
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his fastest pace and with the maximum of efficiency) the highest class of work for which his natural abilities for him." Taylor's ideas on management and workers speaks of justice for both parties. "It (the public) will no longer tolerate the type of employer who has his eyes only on dividends alone, who refuses to do his share of the work and who merely cracks the whip over the heads of his workmen and attempts to drive them harder work for low pay. No more will it tolerate tyranny on the part of labour which demands one increase after another in pay and shorter hours while at the same time it becomes less instead of more efficient." Taylor's system was widely adopted in the United States and the world. Although the Taylor system originated in the factory production departments, the concept of separating planning from execution was universal in nature and, hence, had potential application to other areas: production support services offices operations service industries. Management's new responsibilities were extended to include: Replacing the old rule-of-thumb with scientific management Scientifically select and train, teach and develop the workman "Heartily cooperate with the men so as to insure[sic] all the work being done in accordance with the principles of the science which has been developed" Take over the work for which they are "better fitted" than the workmen. Relationship between Taylorism and TQM Taylor's more general summary of the principles of Scientific Management are better suited for inclusion into the TQM methodology, than the narrow definitions. "It is no single element , but rather the this whole combination, that constitutes Scientific Management, which may be summarized as: Science, not rule of thumb Harmony, not discord Cooperation, not individualism Maximum output in place of restricted output The development of each man to his greatest efficiency and prosperity" Much has happened, since Taylor developed his method of Scientific Management, to make obsolete the premises on which he based his concepts: Lack of education is no longer reason enough to separate the planning function The balance of power between managers and the work force has changed. Whereas in Taylor's time it was heavily weighted against the workers. Unionism (or the threat of it) has profoundly changed that balance. Changes in the climate of social thinking. Revolts against the "dehumanizing" of work. A basic tenet of Scientific management was that employees were not highly educated and thus were unable to perform any but the simplest tasks. Modern thought is that all employees have intimate knowledge of job conditions and are therefore able to make useful contributions. Rather than dehumanizing the work and breaking the work down into smaller and smaller units to maximize efficiency without giving thought to the job satisfaction of the working. Encouragement of work based teams in which all workers may contribute. Such contributions increase worker morale, provide a sense of ownership, and improve management-worker relations generally.
Fayol (1841-1925) Functions and Principles of Management

Fayol's career began as a mining engineer. He then moved into research geology and in 1888 joined, Comambault as Director. Comambault was in difficulty but Fayol turned the operation round. On retirement he published his work a comprehensive theory of administration - described and classified administrative management roles and processes then became recognised and referenced by others in the growing discourse about management. He is frequently seen as a key, early contributor to a classical or administrative management school of thought (even though he himself would never have recognised such a "school"). His theorising about administration was built on personal observation and experience of what worked well in terms of organisation. His aspiration for an "administrative science" sought a consistent set of principles that all organizations must apply in order to run properly. F. W. Taylor published "The Principles of Scientific Management" in the USA in 1911, and Fayol in 1916 examined the nature of management and administration on the basis of his French mining organisation experiences.. Fayol synthesised various tenets or principles of organisation and management and Taylor on work methods, measurement and simplification to secure efficiencies. Both referenced functional specialisation. Both Fayol and Taylor were arguing that principles existed which all organisations - in order to operate and be administered efficiently - could implement. This type of assertion typifies a "one best way" approach to management thinking. Fayol's five functions are still relevant to discussion today about management roles and action.
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1. to forecast and plan - prevoyance examine the future and draw up plans of action 2. to organise build up the structure, material and human of the undertaking 3. to command maintain activity among the personnel 4. to co-ordinate bind together, unify and harmonise activity and effort 5. to control see that everything occurs in conformity with policy and practise Fayol also synthesised 14 principles for organisational design and effective administration. It is worthwhile reflecting on these are comparing the conclusions to contemporary utterances by Peters, Kanter and Handy to name but three management gurus. Fayol's 14 principles are:
specialisation/division of labour A principle of work allocation and specialisation in order to concentrate activities to enable specialisation of skills and understandings, more work focus and efficiency. authority with corresponding responsibility If responsibilities are allocated then the post holder needs the requisite authority to carry these out including the right to require others in the area of responsibility to undertake duties. Authority stems from: that ascribed from the delegation process (the job holder is assigned to act as the agent of the high authority to whom they report - hierarchy) allocation and permission to use the necessary resources needed (budgets, assets, staff) to carry out the responsibilities. selection - the person has the expertise to carry out the responsibilities and the personal qualities to win the support and confidence of others. The R = A correspondence is important to understand. R = A enables accountability in the delegation process. Who do we cope with situations where R > A? Are there work situations where our R< A? "judgement demands high moral character, therefore, a good leader should possess and infuse into those around him courage to accept responsibility. The best safeguard against abuse of authority and weakness on the part of a higher manager is personal integrity and particularly high moral character of such a manager ..... this integrity, is conferred neither by election nor ownership. " 1916 A manager should never be given authority without responsibility--and also should never be given responsibility without the associated authority to get the work done.
discipline The generalisation about discipline is that discipline is essential for the smooth running of a 14

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business and without it - standards, consistency of action, adherence to rules and values - no enterprise could prosper. "in an essence - obedience, application, energy, behaviour and outward marks of respect observed in accordance with standing agreements between firms and its employees " 1916
unity of command The idea is that an employee should receive instructions from one superior only. This generalisation still holds - even where we are involved with team and matrix structures which involve reporting to more than one boss - or being accountable to several clients. The basic concern is that tensions and dilemmas arise where we report to two or more bosses. One boss may want X, the other Y and the subordinate is caught between the devil and the deep blue sea. unity of direction The unity of command idea of having one head (chief executive, cabinet consensus) with agree purposes and objectives and one plan for a group of activities) is clear. subordination of individual interest to the general interest Fayol's line was that one employee's interests or those of one group should not prevail over the organisation as a whole. This would spark a lively debate about who decides that the interests of the organisation as a whole are. Ethical dilemmas and matters of corporate risk and the behaviour of individual "chancers" are involved here. Fayol's work - assumes a shared set of values by people in the organisation - a unitarism where the reasons for organisational activities and decisions are in some way neutral and reasonable. remuneration of staff
" the price of services rendered. " 1916 The general principle is that levels of compensation should be "fair" and as far as possible afford satisfaction both to the staff and the firm (in terms of its cost structures and desire for profitability/surplus).
Centralisation Centralisation for HF is essential to the organisation and a natural consequence of organising. This issue does not go away even where flatter, devolved organisations occur. Decentralisation is frequently centralisaed-decentralisation !!! The modes of control over the actions and results of devolved organisations are still matters requiring considerable attention. scalar chain/line of authority The scalar chain of command of reporting relationships from top executive to the ordinary shop operative or driver needs to be sensible, clear and understood. order The level of generalisation becomes difficult with this principle. Basically an organisation "should" provide an orderly place for each individual member - who needs to see how their role fits into the organisation and be confident, able to predict the organisations behaviour towards them. Thus policies, rules, instructions and actions should be understandable and understood. 15

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Orderliness implies steady evolutionary movement rather than wild, anxiety provoking, unpredictable movement. equity Equity, fairness and a sense of justice "should"pervade the organisation - in principle and practice. stability of tenure Time is needed for the employee to adapt to his/her work and perform it effectively. Stability of tenure promotes loyalty to the organisation, its purposes and values. initiative At all levels of the organisational structure, zeal, enthusiasm and energy are enabled by people having the scope for personal initiative. (Note: Tom Peters recommendations in respect of employee empowerment) esprit de corps Here Fayol emphasises the need for building and maintaining of harmony among the work force , team work and sound interpersonal relationships.
In the same way that Alfred P Sloan, the executive head of General Motors reorganised the company into semi-autonomous divisions in the 1920s, corporations undergoing reorganisation still apply "classical organisation" principles - very much in line with Fayol's recommendations.
1.2: Definition of Quality, Jurans view of Quality, Phases of Quality, Productivity Equipment, process & personnel
Quality concept and phases in quality management:

QUALITY:It is the totality of feature & characteristics of a product that bears on its ability to satisfy the stated or implied needs. QUALITY CONTROL:It is the operational techniques & activities that are used to fulfill the requirements for quality. QUALITY ASSURANCE:It is all systematic & planned actions which are necessary to provide adequate confidence that a product or service will satisfy the given requirement for quality.
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QUALITY MANAGEMENT:It is systematic set of operating procedure which is companywide, documented, implemented & maintained while ensuring the growth of business in a consistent manner.
ISO SYSTEM:A set of quality standards governing the documentation requirement of system: -ISO 9001-2000 -ISO 14000 -ISO 17025 -SA 8000
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PHASES IN QUALITY MANAGEMENT:-
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Juran's view of Quality

Quality trilogy Juran's view is that, "Quality does not happen by accident it must be planned". Seeing quality planning as the three elements of Quality Planning, Quality Control and Quality Improvement running parallel to budgeting, cost control and cost reduction. Stating that planning's key elements required to implement a company-wide strategy were to identify customer needs, define quality goals, identify and implement quality metrics, planning process capability, and continually monitor results to reduced manufacturing and non-manufacturing errors. All this supports his theory that quality is not free and there is a point where conformance is more costly than the value of the quality obtained. Quality Planning Road Map 1. Identify customers. 2. Determine customer needs. 3. Translate customer needs into specifications. 4. Develop product or service to meet customer needs. 5. Optimize product or service features and characteristics. 6. Develop process capabilities to produce product or service. 7. Prove process. 8. Productionise process.
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Phase 1: Preparation
Create your organisation structured

Once your organistational structure has been determined, survey instruments are defined and their usage specified. The system is easily customisable for further individual requirements.
Reproducing your organisational structure

Whether a quality manager in a large organisation, or a marketing or HR manager looking at ways to make strategic decisions, you can set up folder structures and name your surveys according to your own criteria. It is possible to create whatever structural features you may require on the questionnaires, enabling the subsequent evaluation of different groups.
Designing your own questionnaires

Questionnaires can be developed for a variety of purposes. The web-based designer is set up to accomodate untrained personnel making it possible to create machine readable questionnaires in as fast as 10 minutes. As well as single and multiple-choice questions, graded questions are also available, with response scales from 2 to 11 points and where necessary, the option for not applicable. Qualitative elements are acquired in your survey through open comments. Survey instruments that you may have used in the past can be easily reconstructed. In addition, survey instruments of external service providers which you may wish to continue using, can also be implemented, enabling the integration of external data, therefore making external benchmarking possible. The system is delivered with a library of questions. Any question or group of questions that you or another user might wish to use again, can be added to the question libary. Corporate Training: A user role model provides access rights with different permissions. EvaSys mirrors the organisational structure with all its subdivisions, so that all surveys can be
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managed in a structured way. Subdivisons, the number of instructors, cources and type of survey instruments, as well as report recipients, can all be individually set up. Meta data concerning the classes is imported directly from seminar management systems or other sources (CSV, XML, SAP, WebCT, HIS,...) or synchronised via a SOAP based API in real time.
Your own questionnaire in a flash

The EvaSys questionnaire editor not only creates the layout of the questionnaire automatically, but simultaneously guarantees optimal scanner readability of the sheets. Questions in a wide range of formats (scale, single- or multiple-choice, open, matrix fields...) can be conveniently compiled using a wizard; field properties for statistical analysis are stored automatically. Once questionnaires have been designed, it is easy to modify them and they can continue to be used as templates. An integrated and extendable question library simplifies the use of recurring question items. With the TeleForm extension module, particularly sophisticated design wishes can be put into practice. The system already contains ready-to-use questionnaires for the evaluation of various different types of classes.
Phase 2: Survey
Whether you need to carry out a few dozen, hundreds or even thousands of surveys: EvaSys takes care of the generation, production and distribution of individualised questionnaires for printing, thanks to the automated series procedures involving just a few mouse clicks.
Generating surveys
You decide which questionnaires are used and EvaSys generates the corresponding questionnaires in a PDF file. Each survey can be created as paper based or online. It is also possible to combine the two methods, paper based and online surveys in the same administration.
Paper based surveys

For the production of paper questionnaires the system generates a PDF print file for all pending surveys using a series print function. EvaSys also provides a way of sending the personalised PDF printer template directly to the departments so they can print them out themselves.
Online surveys
For online surveys there is a choice of PDF or HTML format. In HTML the survey can be adjusted to the corporate design of the organisation. Filters can be set to allow irrelevant
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questions to be skipped. Individual TACs (Transaction Codes) ensure that only authorised persons may submit their vote. With the time controls, online surveys an be carried out very conveniently: from launching the online survey, sending the TACs, sending reminder e-mails, to closing the survey. Everything runs automatically. Phase 3: Capturing & feedback
For the evaluation of surveys, EvaSys also provides the greatest possible automation.
Scan and acquire

The processing is based on the batch scan acquisition of the completed questionnaires using a document scanner. The user friendly one-button solution fully automatically checks the scanner settings, guaranteeing optimal data capturing quality. Several scanning stations can be spread across various locations. The integrated document reader, VividForms Reader, and the optionally available form processing system, TeleForm, make use of the most modern reading technologies, such as automated rescaling, and automatically assign the questionnaire pages to the correct survey. Checkmarks and 2D barcodes are reliably recognized, and if TeleForm is used in addition, typewritten script and block capitals are recognized as well. Responses to open questions are made available as image extracts and can be de-identified, if required.
Instant feedback
Directly after the questionnaires have been read in, the PDF evaluation report is available. If you want, EvaSys can send the instant reports to recipients as soon as the questionnaires have been processed without the for manual input. The PDF report contains a clear, graphically enhanced representation of the results. As well as a histogram on each scale question, there is a profile line of all the scale questions. The answers to open questions are displayed in sorted form. If the questionnaire contains summarising indicators or quality guidelines, these are also displayed; a traffic light display shows the value attained and the defined minimum value. Comparisons with reference data are shown clearly as profile lines. Letter and presentation templates, for example for the discussion of the evaluation , are also included in the report.
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Phase 4: Analysis
In addition to the instant report, a wide range of reports and evaluations of sub-groups can be created. At the end of an evaluation period, summary reports and comparative evaluations can be created on the basis of individual evaluations, for example for faculty or curricula reports. A series distribution option allows comparison displays with aggregated mean values or timelines to be sent automatically. The use of survey instruments with reference data is also possible in EvaSys. You can even create your own standards based on surveys you have carried out yourself.
Exporting data and other statistical reports

The raw data can be exported to analysis and statistics programmes such as Excel, SPSS and without problems. The optional statistics module SPHINX is ideal for exploratory data analysis and provides a particularly convenient analysis of data, allowing bi-variate and multi-variate analyses (including multiple factor analysis, clustering, multiple regression) and qualitative text analyses of the open questions. Any reports you want with cross tables, hypothesis diagrams, etc. can be created viadrag & drop and used over and over again.
Phase 5: Quality management
Using the EvaSys quality guidelines you can check whether specified minimum quality is met. In this way departments can very quickly identify problematic feedback, even from a wide range of individual surveys. An access control allows the definition of flexible inspection permissions for quality overviews.
Optimising the procedure

If an evaluation period has been completed, survey instruments and quality guidelines can be modified. EvaSys allows comparisons of different questionnaire versions with one another.
Other users
In large organisations there are numerous other causes for surveys, apart from assessing departments whether this is surveying employees or surveys in the context of research projects. EvaSys can be used on an organisation wide basis for the most varied of surveys without this having any impact on the core application. With an activated user account, any authorised person can carry out surveys independently. It is easy to create your own questionnaires with the Web
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editor, which is intuitive in its operation, and after acquiring the questionnaires at a scanning station, an instant report and raw data are available to the user.
Productivity:
It is a measure of output from a production process, per unit of input. For example, labor productivity is typically measured as a ratio of output per labor-hour, an input. Productivity may be conceived of as a metric of the technical or engineering efficiency of production. As such, the emphasis is on quantitative metrics of input, and sometimes output. Productivity is distinct from metrics of locative efficiency, which take into account both the monetary value (price) of what is produced and the cost of inputs used, and also distinct from metrics of profitability, which address the difference between the revenues obtained from output and the expense associated with consumption of inputs. Production is a process of combining various material inputs (stuff) and immaterial inputs (plans, know-how) in order to make something for consumption (the output). The methods of combining the inputs of production in the process of making output are called technology. Technology can be depicted mathematically by the production function which describes the relation between input and output. The production function can be used as a measure of relative performance when comparing technologies. The production function is a simple description of the mechanism of economic growth. Economic growth is defined as any production increase of a business or nation (whatever you are measuring). It is usually expressed as an annual growth percentage depicting growth of the company output (per entity) or the national product (per nation). Real economic growth (as opposed to inflation) consists of two components. These components are an increase in production input and an increase in productivity. The figure illustrates an economic growth process (exaggerated for clarity). The Value T2 (value at time 2) represents the growth in output from Value T1 (value at time 1). Each time of measurement has its own graph of the production function for that time (the straight lines). The output measured at time 2 is greater than the output measured at time one for both of the components of growth: an increase of inputs and an increase of productivity. The portion of growth caused by the increase in inputs is shown on line 1 and does not change the relation between inputs and outputs. The portion of growth caused by an increase in productivity is shown on line 2 with a steeper slope. So increased productivity represents greater output per unit of input. Accordingly, an increase in productivity is characterized by a shift of the production function (steepening slope) and a consequent change to the output/input relation. The formula of total productivity is normally written as follows:
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Total productivity = Output quantity / Input quantity
According to this formula, changes in input and output have to be measured inclusive of both quantitative and qualitative changes. In practice, quantitative and qualitative changes take place when relative quantities and relative prices of different input and output factors alter. In order to accentuate qualitative changes in output and input, the formula of total productivity shall be written as follows:
Total productivity = Output quality and quantity / Input quality and quantity
1.3: Data & Information, Qualities / Characteristics of Information, System concept types of systems, Definition of MIS, Characteristics of MIS, Components of IS, Decision making, Systems approach to problem solving
Open and Closed Systems

A system is commonly defined as a group of interacting units or elements that have a common purpose. The units or elements of a system can be cogs, wires, people, computers, and so on. Systems are generally classified as open systems and closed systems and they can take the form of mechanical, biological, or social systems. Open systems refer to systems that interact with other systems or the outside environment, whereas closed systems refer to systems having relatively little interaction with other systems or the outside environment. For example, living organisms are considered open systems because they take in substances from their environment such as food and air and return other substances to their environment. Humans, for example, inhale oxygen out of the environment and exhale carbon dioxide into the environment. Similarly, some organizations consume raw materials in the production of products and emit finished goods and pollution as a result. In contrast, a watch is an example of a closed system in that it is a relatively self-contained, self-maintaining unit that has little interacts or exchange with its environment. All systems have boundaries, a fact that is immediately apparent in mechanical systems such as the watch, but much less apparent in social systems such as organizations. The boundaries of open systems, because they interact with other systems or environments, are more flexible than those of closed systems, which are rigid and largely impenetrable. A closed-system perspective views organizations as relatively independent of environmental influences. The closed-system approach conceives of the organization as a system of management, technology, personnel, equipment, and materials, but tends to exclude competitors, suppliers, distributors, and governmental regulators. This approach allows managers and organizational theorists to analyze problems by examining the internal structure of a business with little consideration of the external environment. The closed-system perspective basically views an organization much as a thermostat; limited environmental input outside of changes in temperature is required for effective operation. Once set, thermostats require little maintenance in their ongoing, self25

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reinforcing function. While the closed-system perspective was dominant through the 1960s, organization scholarship and research subsequently emphasized the role of the environment. Up through the 1960s, it was not that managers ignored the outside environment such as other organizations, markets, government regulations and the like, but that their strategies and other decision-making processes gave relatively little consideration to the impact these external forces might have on the internal operations of the organization. Open-systems theory originated in the natural sciences and subsequently spread to fields as diverse as computer science, ecology, engineering, management, and psychotherapy. In contrast to closed-systems, the open-system perspective views an organization as an entity that takes inputs from the environment, transforms them, and releases them as outputs in tandem with reciprocal effects on the organization itself along with the environment in which the organization operates. That is, the organization becomes part and parcel of the environment in which it is situated. Returning for a moment to the example of biological systems as open-systems, billions of individual cells in the human body, themselves composed of thousands of individual parts and processes, are essential for the viability of the larger body in which they are a part. In turn, "macro-level" processes such as eating and breathing make the survival of individual cells contingent on these larger processes. In much the same way, open-systems of organizations accept that organizations are contingent on their environments and these environments are also contingent on organizations. As an open-systems approach spread among organizational theorists, managers began incorporating these views into practice. Two early pioneers in this effort, Daniel Katz and Robert Kahn, began viewing organizations as open social systems with specialized and interdependent subsystems and processes of communication, feedback, and management linking the subsystems. Katz and Kahn argued that the closed-system approach fails to take into account how organizations are reciprocally dependent on external environments. For example, environmental forces such as customers and competitors exert considerable influence on corporations, highlighting the essential relationship between an organization and its environment as well as the importance of maintaining external inputs to achieve a stable organization. Furthermore, the open-system approach serves as a model of business activity; that is, business as a process of transforming inputs to outputs while realizing that inputs are taken from the external environment and outputs are placed into this same environment. Companies use inputs such as labour, funds, equipment, and materials to produce goods or to provide services and they design their subsystems to attain these goals. These subsystems are thus analogous to cells in the body, the organization itself is analogous to the body, and external market and regulatory conditions are analogous to environmental factors such as the quality of housing, drinking water, air and availability of nourishment. The production subsystem, for example, focuses on converting inputs into marketable outputs and often constitutes a primary purpose of a company. The boundary subsystem's goal is to obtain inputs or resources, such as employees, materials, equipment, and so forth, from the
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environment outside of the company, which are necessary for the production subsystem. This subsystem also is responsible for providing an organization with information about the environment. This adaptive subsystem collects and processes information about a company's operations with the goal of aiding the company's adaptation to external conditions in its environment. Another subsystem, management, supervises and coordinates the other subsystems to ensure that each subsystem functions efficiently. The management subsystem must resolve conflicts, solve problems, allocate resources, and so on. To simplify the process of evaluating environmental influences, some organizational theorists use the term "task environment" to refer to aspects of the environment that are immediately relevant to management decisions related to goal setting and goal realization. The task environment includes customers, suppliers, competitors, employees, and regulatory bodies. Furthermore, in contrast to closed-systems, the open-system perspective does not assume that the environment is static. Instead, change is the rule rather than the exception. Consequently, investigation of environmental stability and propensity to change is a key task of a company, making the activities of an organization contingent on various environmental forces. As an open system, an organization maintains its stability through feedback, which refers to information about outputs that a system obtains as an input from its task environment. The feedback can be positive or negative and can lead to changes in the way an organization transforms inputs to outputs. Here, the organization acts as a thermostat, identified previously as an example of a relatively closed-system. The difference between closed-systems and open-systems, then, is in the complexity of environmental interactions. Closed-systems assume relatively little complexity; a thermostat is a simple device dependent mainly on temperature fluctuations. Conversely, open-system such as the human body and modern organizations are more intricately dependent on their environments. The point is that closed-systems versus open-systems do not represent a dichotomy, but rather a continuum along which organizations are more open or less open to their environments. The key defining variable governing this degree of openness is the complexity of the environment in which the organization is situated. Managers must take into consideration their organization's position along the open-closed continuum. The Linux computer operating system, for instance, is "open-source" and Red Hat, Inc., the corporation selling the bundled revisions-the multiple inputs from geographically dispersed users-represents an organization that would cease to exist if it were not for an opensystems perspective. Thus, stable environments with low complexity are more consistent with a relatively closed-system or mechanistic management style, while rapidly-changing environments are more consistent with flexible, decentralized, or "organic" management styles. (Students are required to prepare the answer through the distinguish between open and closed systems)
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Open Systems vs. Closed Systems

Following a standard protocol provides you with an advantage of connecting to any system that supports this particular part of the standard, both now and in the future. For example, Internet Explorer or Netscape can connect to any existing and future web server using HTTP and HTML standard protocols. Adhering to a standard protocol is called "open system architecture". Anybody can interface with an open system using appropriate protocols, independent of its vendor. When using HL7, the interface allows for numerous systems to be added to a single HL7 feed. New systems can be added without having to modify the original source system as demonstrated in the following diagram:
HL7 Interface (Open) Model Now consider the proprietary system( Closed) model:
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Proprietary Interface Model

"Closed" and "Proprietary" are used interchangeably throughout this section to mean that characteristics of the system are hidden by the vendor from the public domain. Although the closed-system model is easier to design and initially costs less to implement, closed systems have greater reliability on single vendors and more reliance on specific applications and technologies. Although the worldwide trend is to follow an open-system architecture, there are still tradeoffs in following a standard protocol when developing interfaces. For instance, a greater initial investment is required. Time and money must be spent to understand the standard and create the infrastructure required to support the standard, such as a parsing framework and networking code. However, the benefits are abundant. For example, it will be easier to answer user requirements because HL7 is considered the standard for exchanging data between healthcare systems. In addition, because HL7 is the standard, it will be easier to create a system that can interface with an open system now and in the future.
Different Types of Management Info Systems

Management information systems are those systems that allow managers to make decisions for the successful operation of businesses. Management information systems consist of computer resources, people, and procedures used in the modern business enterprise. The term MIS stands for management information systems. MIS also refers to the organization that develops and maintains most or all of the computer systems in the enterprise so that managers can make 29

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decisions. The goal of the MIS organization is to deliver information systems to the various levels of corporate managers. MIS professionals create and support the computer system throughout the company. Trained and educated to work with corporate computer systems, these professionals are responsible in some way for nearly all of the computers, from the largest mainframe to the desktop and portable PCs. Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows: Accounting management information systems: All accounting reports are shared by all levels of accounting managers. Financial management information systems: The financial management information system provides financial information to all financial managers within an organization including the chief financial officer. The chief financial officer analyzes historical and current financial activity, projects future financial needs, and monitors and controls the use of funds over time using the information developed by the MIS department. Manufacturing management information systems: More than any functional area, operations have been impacted by great advances in technology. As a result, manufacturing operations have changed. For instance, inventories are provided just in time so that great amounts of money are not spent for warehousing huge inventories. In some instances, raw materials are even processed on railroad cars waiting to be sent directly to the factory. Thus there is no need for warehousing. Marketing management information systems: A marketing management information system supports managerial activity in the area of product development, distribution, pricing decisions, promotional effectiveness, and sales forecasting. More than any other functional area, marketing systems rely on external sources of data. These sources include competition and customers, for example. Human resources management information systems: Human resources management information systems are concerned with activities related to workers, managers, and other individuals employed by the organization. Because the personnel function relates to all other areas in 30

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business, the human resources management information system plays a valuable role in ensuring organizational success. Activities performed by the human resources management information systems include, work-force analysis and planning, hiring, training, and job assignments.
Relationship of MIS with other discipline

Definition: Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organisation. The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making. Applications of MIS With computers being as ubiquitous as they are today, there's hardly any large business that does not rely extensively on their IT systems. However, there are several specific fields in which MIS has become invaluable. * Strategy Support While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making. MIS systems can be used to transform data into information useful for decision making. Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy. MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually. MIS systems can also use these raw data to run simulations hypothetical scenarios that answer a range of what if questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems.
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* Data Processing Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole. Management by Objectives While MIS systems are extremely useful in generating statistical reports and data analysis they can also be of use as a Management by Objectives (MBO) tool. MBO is a management process by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame. Objectives are set using the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-Specific. The aim of these objectives is to provide a set of key performance indicators by which an enterprise can judge the performance of an employee or project. The success of any MBO objective depends upon the continuous tracking of progress. In tracking this performance it can be extremely useful to make use of an MIS system. Since all SMART objectives are by definition measurable they can be tracked through the generation of management reports to be analysed by decision-makers. Benefits of MIS The field of MIS can deliver a great many benefits to enterprises in every industry. Expert organisations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives. Core Competencies Every market leading enterprise will have at least one core competency that is, a function they perform better than their competition. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself.
Enhance Supply Chain Management Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the 32

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supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product. Quick Reflexes As a corollary to improved supply chain management comes an improved ability to react to changes in the market. Better MIS systems enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie. Further information about MIS can be found at the Bentley College Journal of MIS and the US Treasurys MIS handbook, and an example of an organisational MIS division can be found at the Department of Social Services for the state of Connecticut.
Current industrial management and practices:
Management Information system (MIS): MIS has been described as a pyramid structure made of decreasing complexity information processing layers of: MIS for strategic and policy planning and decision-making, Management information for tactical planning and decision-making, 33

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Management information for operational planning, decision-making, and control, and Transaction processing, Inquiry response.
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1.4: MIS Subsystems Marketing, Finance, HR / Personnel, Logistics, Supply Chain Management etc, Relationship of MIS with other disciplines
(Ref. Unit III)
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Unit-II
2.1: Data communication Simplex, Half duplex & Full duplex, significance of data communication, Advantages of satellite communication
Data Communications
Data Communications is the transfer of data or information between a source and a receiver. The source transmits the data and the receiver receives it. The actual generation of the information is not part of Data Communications nor is the resulting action of the information at the receiver. Data Communication is interested in the transfer of data, the method of transfer and the preservation of the data during the transfer process. In Local Area Networks, we are interested in "connectivity", connecting computers together to share resources. Even though the computers can have different disk operating systems, languages, cabling and locations, they still can communicate to one another and share resources. The purpose of Data Communications is to provide the rules and regulations that allow computers with different disk operating systems, languages, cabling and locations to share resources. The rules and regulations are called protocols and standards in Data Communications.
ROLE OF SATELLITE COMMUNICATIONS In the context of a worldwide military communications network, satellite communications systems are very important. Satellite communications links add capacity to existing communications capabilities and provide additional alternate routings for communications traffic. Satellite links, as one of several kinds of long-distance links, interconnect switching centers located strategically around the world. They are part of the defence communication systems (DCS) network. One important aspect of the satellite communications network is that it continues in operation under conditions that sometimes render other methods of communications inoperable. Because of this, satellites make a significant contribution to improved reliability of Navy communications. ADVANTAGES OF SATELLITE COMMUNICATIONS Satellite communications have unique advantages over conventional long distance transmissions. Satellite links are unaffected by the propagation variations that interfere with hf radio. They are also free from the high attenuation of wire or cable facilities and are capable of spanning long distances. The numerous repeater stations required for line-of-sight or troposcatter links are no longer needed. They furnish the reliability and flexibility of service that is needed to support a military operation. Capacity The present military communications satellite system is capable of communications between backpack, airborne, and shipboard terminals. The system is capable of handling thousands of communications channels. Reliability
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Communications satellite frequencies are not dependent upon reflection or refraction and are affected only slightly by atmospheric phenomena. The reliability of satellite communications systems is limited only by the equipment reliability and the skill of operating and maintenance personnel. Vulnerability Destruction of an orbiting vehicle by an enemy is possible. However, destruction of a single communications satellite would be quite difficult and expensive. The cost would be excessive compared to the tactical advantage gained. It would be particularly difficult to destroy an entire multiple-satellite system such as the twenty-six randomorbit satellite system currently in use. The earth terminals offer a more attractive target for physical destruction. These can be protected by the same measures that are taken to protect other vital installations. A high degree of freedom from jamming damage is provided by the highly directional antennas at the earth terminals. The wide bandwidth system that can accommodate sophisticated anti-jam modulation techniques also lessens vulnerability. a. While it is possible to destroy an orbiting satellite by rocket fire, the present developments in rocketry suggest that this would be quite difficult. It would be particularly difficult to destroy an entire system employing random orbit satellites, primarily because of the number involved. b. The present state-of-the-art indicates that satellite communications ground stations in certain instances will be vulnerable to jamming attacks. However, by judicious planning and systems design, the enemy could be forced to expend so much time, effort, and equipment to effectively jam our communications facilities that the attempt would be unwarranted from his point of view. c. A rocket or satellite-based jammer with limited power must be positioned within the main beam of the ground station to be effective. This implies that the rocket or satellite jammer must be in approximately the same position and orbit as the communications satellite. Considerable effort on the part of the enemy would be required to achieve the precision of position necessary to establish.
2.2: Basic concepts of networking LAN, MAN, Wan, Networking topologies Star, Ring, Bus, Advantages & Disadvantages
A local area network (LAN)

Definition: A local area network (LAN) supplies networking capability to a group of computers in close proximity to each other such as in an office building, a school, or a home. A LAN is useful for sharing resources like files, printers, games or other applications. A LAN in turn often connects to other LANs, and to the Internet or other WAN. Most local area networks are built with relatively inexpensive hardware such as Ethernet cables, network adapters, and hubs. Wireless LAN and other more advanced LAN hardware options also exist. Specialized operating system software may be used to configure a local area network. For example, most flavors of Microsoft Windows provide a software package called Internet Connection Sharing (ICS) that supports controlled access to LAN resources.
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The term LAN party refers to a multiplayer gaming event where participants bring their own computers and build a temporary LAN. Also Known As: local area network Examples:
The most common type of local area network is an Ethernet LAN. The smallest home LAN can have exactly two computers; a large LAN can accommodate many thousands of computers. Many LANs are divided into logical groups called subnets. An Internet Protocol (IP) "Class A" LAN can in theory accommodate more than 16 million devices organized into subnets. A computer network that spans a relatively small area. Most LANs are confined to a single building or group of buildings. However, one LAN can be connected to other LANs over any distance via telephone lines and radio waves. A system of LANs connected in this way is called a wide-area network (WAN). Most LANs connect workstations and personal computers. Each node (individual computer ) in a LAN has its own CPU with which it executes programs, but it also is able to access data and devices anywhere on the LAN. This means that many users can share expensive devices, such as laser printers, as well as data. Users can also use the LAN to communicate with each other, by sending e-mail or engaging in chat sessions. There are many different types of LANs Ethernets being the most common for PCs. Most Apple Macintosh networks are based on Apple's AppleTalk network system, which is built into Macintosh computers. The following characteristics differentiate one LAN from another:
topology : The geometric arrangement of devices on the network. For example, devices can be arranged in a
ring or in a straight line.
protocols : The rules and encoding specifications for sending data. The protocols also determine whether the
network uses a peer-to-peer or client/server architecture.
media : Devices can be connected by twisted-pair wire, coaxial cables, or fiber optic cables. Some networks do
without connecting media altogether, communicating instead via radio waves. LANs are capable of transmitting data at very fast rates, much faster than data can be transmitted over a telephone line; but the distances are limited, and there is also a limit on the number of computers that can be attached to a single LAN.
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Full time connectivity to local services Generally lower in cost than a WAN Cabling is primary transmission medium
What is a WAN?
A wide area network (WAN) is a geographically dispersed telecommunications network. The term distinguishes a broader telecommunication structure from a local area network (LAN). A wide area network may be privately owned or rented, but the term usually connotes the inclusion of public (shared user) networks. An intermediate form of network in terms of geography is a metropolitan area network (MAN). Characteristics of WAN 1.Connect Multiple LANs via an Ethernet Network Connect multiple LANs using Ethernet technology. Build a network as a single overall LAN segment. 2.Wide-Area LAN that utilizes a High-Speed Layer 2 Switch Layer 2 switch within each backbone houses a access line. Users have access to a full-mesh WAN architecture that does not rely on Layer 3 or other higher order layers. 3.Layer 2 Level Advanced Security Virtual LAN technology (VLAN) is used to assign a user ID for each user, allowing network segmentation below the IP layer. 4.Compatible with a Variety of Access Lines Offers a number of network services compatible with bandwidths from 128kbps to 1Gbps, as well as Ether/ ATM/ DSL/ MDN, etc.
Metropolitan Area Network(MAN)

It is a computer networks usually spanning a campus or a city, which typically connect a few local area networks using high speed backbone technologies. A MAN often provides efficient connections to a wide area network (WAN). There are three important features which discriminate MANs from LANs or WANs:
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1. The network size falls intermediate between LANs and WANs. A MAN typically covers an area of between 5 and 50 km range. Many MANs cover an area the size of a city, although in some cases MANs may be as small as a group of buildings. 2. A MAN (like a WAN) is not generally owned by a single organisation. The MAN, its communications links and equipment are generally owned by either a consortium of users or by a network service provider who sells the service to the users. 3. A MAN often acts as a high speed network to allow sharing of regional resources. It is also frequently used to provide a shared connection to other networks using a link to a WAN. MAN adopted technologies from both LAN and WAN to serve its purpose. Some legacy technologies used for MAN are ATM, FDDI, DQDB and SMDS. These older technologies are in the process of being displaced by Gigabit Ethernet and 10 Gigabit Ethernet. At the physical level, MAN links between LANs have been built on fibre optical cables or using wireless technologies such as microwave or radio. Characteristics of a MAN A MAN is a relatively new class of network, it serves a role similar to an ISP, but for corporate users with large LANs.They typically use wireless infrastructure or Optical fiber connections to link their sites. 1.The network size falls intermediate between LANs and WANs. A MAN typically covers an area of between 5 and 50 km diameter. Many MANs cover an area the size of a city, although in some cases MANs may be as small as a group of buildings or as large as the North of Scotland. 2.A MAN (like a WAN) is not generally owned by a single organisation. The MAN, its communications links and equipment are generally owned by either a consortium of users or by a single network provider who sells the service to the users. This level of service provided to each user must therefore be negotiated with the MAN operator, and some performance guarantees are normally specified. 3.A MAN often acts as a high speed network to allow sharing of regional resources (similar to a large LAN). It is also frequently used to provide a shared connection to other networks using a link to a WAN.
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Typical MAN
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What is a Topology?
The physical topology of a network refers to the configuration of cables, computers, and other peripherals. Physical topology should not be confused with logical topology which is the method used to pass information between workstations.
Main Types of Physical Topologies

The following sections discuss the physical topologies used in networks and other related topics.

Linear Bus Star Tree (Expanded Star)
Linear Bus
A linear bus topology consists of a main run of cable with a terminator at each end (See fig. 1). All nodes (file server, workstations, and peripherals) are connected to the linear cable.
Fig. 1. Linear Bus topology
Advantages of a Linear Bus Topology

Easy to connect a computer or peripheral to a linear bus. Requires less cable length than a star topology.
Disadvantages of a Linear Bus Topology

Entire network shuts down if there is a break in the main cable. Terminators are required at both ends of the backbone cable. 42

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Difficult to identify the problem if the entire network shuts down. Not meant to be used as a stand-alone solution in a large building.
Star
A star topology is designed with each node (file server, workstations, and peripherals) connected directly to a central network hub, switch, or concentrator (See fig. 2). Data on a star network passes through the hub, switch, or concentrator before continuing to its destination. The hub, switch, or concentrator manages and controls all functions of the network. It also acts as a repeater for the data flow. This configuration is common with twisted pair cable; however, it can also be used with coaxial cable or fiber optic cable.
Fig. 2. Star topology
Advantages of a Star Topology

Easy to install and wire. No disruptions to the network when connecting or removing devices. Easy to detect faults and to remove parts.
Disadvantages of a Star Topology

Requires more cable length than a linear topology. If the hub, switch, or concentrator fails, nodes attached are disabled. More expensive than linear bus topologies because of the cost of the hubs, etc.
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Tree or Expanded Star

A tree topology combines characteristics of linear bus and star topologies. It consists of groups of star-configured workstations connected to a linear bus backbone cable (See fig. 3). Tree topologies allow for the expansion of an existing network, and enable schools to configure a network to meet their needs.
Fig. 3. Tree topology
Advantages of a Tree Topology

Point-to-point wiring for individual segments. Supported by several hardware and software venders.
Disadvantages of a Tree Topology

Overall length of each segment is limited by the type of cabling used. If the backbone line breaks, the entire segment goes down. More difficult to configure and wire than other topologies.
Mesh Topology
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Mesh topology work on the concept of routes. In Mesh topology, message sent to the destination can take any possible shortest, easiest route to reach its destination. In the previous topologies star and bus, messages are usually broadcasted to every computer, especially in bus topology. Similarly in the Ring topology message can travel in only one direction i.e clockwise or anticlockwise. Internet employs the Mesh topology and the message finds its route for its destination. Router works in find the routes for the messages and in reaching them to their destinations. The topology in which every devices connects to every other device is called a full Mesh topology unlike in the partial mesh in which every device is indirectly connected to the other devices.
2.3: Impact of internet - on business, Culture, Individual behavior, Perils of distributed computing
The Impact of the Internet on Business Current Uses of the Internet

The Internet has a wide variety of uses. It provides an excellent means for disseminating information and communicating with other people in all regions of the world. While the greatest use of the Internet has been sharing information, other sources of use are rapidly developing. For instance, chat rooms, a space where people can go to discuss an assortment of issues, and Internet Commerce, which connects buyers and sellers online. The following are other examples of current Internet uses:
1. Technical Papers
Originally, the Internet was only used by the government and universities. Research scientists used the Internet to communicate with other scientists at different labs and to access powerful computer systems at distant computing facilities. Scientists also shared the results of their work in technical papers stored locally on their computer system in ftp sites. Researchers from other facilities used the Internet to access the ftp directory and obtain these technical papers. Examples of research sites are NASA and NASA AMES.
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2. Share Company Information

Commercial companies are now using the Web for many purposes. One of the first ways that commercial companies used the Web was to share information with their employees. Sterling Software's Web page informs employees about such things as training schedules and C++ Guidelines. There is also some information which is company private and access is restricted to company employees only. Another company example is Sun Microsystems which similarily contains general information about the Sun Microsystems company.
3. Product Information
One of the ways businesses share information is to present their product information on a Web page. Some examples are: Cray Research, Sun Microsystems, Hewlet Packard, and GM's Pontiac Site. The Web provides an easy and efficient way for companies to distribute product information to their current and potential customers.
4. Advertising
Along these lines, companies are beginning to actually advertise online. Some examples of different ways to advertise online are Netscape's Ad Page. Netscape has a list of advertising companies. They also use a banner for advertisements on their Yahoo Web Page. Starware similarly uses banner advertisement. These advertisements are created in the established advertising model where the advertising is positioned between rather than within editorial items. Another type of advertising focuses on entertaining the customers and keeping them at the companies' site for a longer time period.
5. Business & Commerce on the Net

Commercial use restrictions of the Internet were lifted in 1991. This has caused an explosion of commercial use. More information about business on the Internet can be found at the Commerce Net. This site has information such as the projected growth of advertising on the Internet and online services. Commercial Services on the Net has a list of various businesses on the Internet. They are many unusual businesses listed here such that you begin to wonder if they are legitimate businesses. This topic is discussed in more detail in the section on risks and consumer confidence. Business and Commerce provides consumer product information. The Federal Trade Commission is also quite concerned about legal business on the Internet. WWW users are clearly upscale, professional, and well educated compared with the population as a whole. For example, from Commerce Nets Survey (Commerce Net is a not for-profit 501c(6) mutual benefit corporation which is conducting the first large-scale market trial of technologies and business processes to support electronic commerce via the Internet) as of 10/30/95 :
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25% of WWW users earn household income of more than $80,000 whereas only 10% of the total US and Canadian population has that level of income. 50% of WWW users consider themselves to be in professional or managerial occupations. In contrast, 27% of the total US and Canadian population categorize themselves to have such positions. 64% of WWW users have at least college degrees while the US and Canadian national level is 29%.
Commerce Net's study also found that there is a sizable base of Internet Users in the US and Canada. With 24 million Internet users (16 years of age or older) and 18 million WWW users (16 years of age or older), WWW users are a key target for business applications. Approximately 2.5 million people have made purchases using the WWW. The Internet is, however, heavily skewed to males in terms of both usage and users. Access through work is also an important factor for both the Internet and online services such as America Online and CompuServe. For an example of the size of the market, the total Internet usage exceeds online services and is approximately equivalent to playback of rented videotapes.
6. Magazines
Magazines are starting to realize that they can attract customers online. Examples of magazines now published online are Outside, Economist, and Business Week. These magazines are still published in hard copy, but they are now also available online. Many of these publications are available free sometimes because of the time delay (i.e. publications online are past issues) or usually to draw in subscribers for a free initial trial period. Some of these publications may remain free online if advertisers pay for the publications with their advertisement banners.
7. Newspapers
Some newspapers are beginning to publish online. The San Jose Mercury News is a full newspaper online, while the Seattle Times offers just classified ads and educational information. The Dow Jones Wall Street Journal publishes its front page online with highlighted links from the front page to complete stories. The Journal also provides links to briefing books, which provide financial information on the company, stock performance, and recent articles and press releases. For an example of a briefing book see, Netscape Briefing Book. This is all free by the Wall Street Journal during the trial period which should last until mid 1996.
8. Employment Ads
Companies are also beginning to list their employment ads online to attract talented people who they might not have been able to reach by the more tradition method of advertising in local papers. Sun Microsystems provides a list of job openings on the Internet. Interested parties can submit a resume or call to schedule an interview, which saves time for everyone involved. 47

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Universities can also help their students find jobs more easily by using job listings on the Internet. The University of Washington has a job listing site. Local papers can also make it easier for job searchers by creating a database search feature. The job searchers can select the type of jobs that they are interested in and the search will return a list of all the matching job openings. San Jose Mercury News is a good example of this approach.
9. Stock Quotes
There are several time delayed (15 minutes) ways to track stock performance, and they are all are free. The first to provide this service was PAWWS Financial Network, and now CNN also lets you track stocks. These are commercial companies which provide stock quotes for free but charge for other services. A non-commercial site, MIT's Stock & Mutual Fund Charts, updates information daily and provides a history file for a select number of stocks and mutual funds. Information in these history files can be graphically displayed so that it is easier to see a stock's performance over time.
10. Country Investment Information

Thinking about investing in a particular country? Information on countries can be found online. For example, check out the graphical information (GDP, inflation, direct foreign investment, etc.) on Indonesia.
11. Order Pizza

You can order a pizza online. This Web site is actually a joke, but you can easily imagine people working late at their offices and ordering out for food online.
12. Software Distribution

A very effective and efficient use of the Web is to order software online. This reduces the packaging and shipping costs. Also documentation can now be provided online. A good example is Netscape Navigator. Another example is Macromedia's Shockwave. What is Shockwave for Director? The description online is as following: "Shockwave for Director is the product name for the Macromedia Director-on-the-Internet project. Shockwave for Director includes two distinct pieces of functionality: (1) Shockwave Plug-In for Web browsers like Netscape Navigator 2.0 which allows movies to be played seamlessly within the same window as the browser page. (2) Afterburner is a post-processor for Director movie source files. Multimedia developers use it to prepare content for Internet distribution. Afterburner compresses movies and makes them ready for uploading to an HTTP server, from which they'll be accessed by Internet users." So by reading about the product online, you can decide if it sounds interesting. You can then immediately get the software by downloading it from Macromedia's computer to yours. Next, 48

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you install it on your system and you're all set. You didn't even have to leave your terminal, and there was no shipping cost to you or the company.
13. Traffic Information

Ever wonder what the rush hour traffic was like before you head home and get stuck in it? Many different cities are putting traffic information online. In Seattle, a graphical traffic report is available.
14. Tourism
Plan a trip to Australia or New Zealand with information gathered off the Internet. These and other countries are on the Internet. So you can plan your vacation from your computer.
15. Movie Previews

Who needs Siskel and Ebert, when you can be your own movie critic? Buena Vista Movie Clips provides movie clips from many of their new releases. For a sample movie clip preview "Unstrung Heroes".
16. Chat Rooms on AOL

Chat rooms are a more interactive technology. America Online provides areas where people can "log on" and converse with others with similar interests in real time. This is the first popular use of interactivity by the general public. The other uses up until recently have been more static, one-way distribution of information. Interactivity is the future of the Internet (See the next section).
Forecast of How the Internet & WWW Might Be Used in the Future
There are many ways that the Internet could be used in the next 3 to 5 years. The main aspect that they all have in common is the increased use of interactivity on the Internet. This means that the Internet will shift from being a one-way distribution of information to a two-way information stream. Scientists will continue to lead the way in this area by watching the results from scientific experiments and exchanging ideas through live audio and video feeds. Due to budget cuts, this collaboration should be expected to increase even more to stretch what budget they do have. (For more information on this, check out Business Week article on science and technology "Welcome To The World Wide Lab" 10/30/95.)
1. Interactive Computer Games

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One of the first areas where interactivity will increase on the Internet are computer games. People will no longer have to take turns playing solitary or crowd around one machine. Instead they will join a computer network game and compete against players located at distant sites. An example of this is Starwave's Fantasy Sports Game. This game is still a more traditional approach of updating statistics on the computer and players looking at their status. A more active game is Marathon Man, which portrays players on the screen reacting to various situations. In the future, many of these games will also include virtual reality.
2. Real Estate
Buying a home online will become possible. While very few people would want to buy a home without seeing it in person, having house listings online will help reduce the time it takes to purchase a home. People can narrow down which houses that they are actually interested in viewing by seeing their description and picture online. An example is this list of house descriptions by region of the country. This will be improved when database search capabilities are added. People can select the features that they are interested in and then search the database. In response, they will receive a list of houses that meet their criteria. Also, having several different images of the House as well as a short video clip of a walk through of the house, will help buyers make their selection quicker. This area is growing quickly. For example, the following sites of interest to the West Coast were added online since the writing of this paper: Windermere Real Estate, Fractals, and Listinglink.
3. Process Mortgages online

After a house is chosen, potential buyers can apply for a mortgage online. No longer will buyers be restricted to local lending institutions, since many lenders will be able to compete online for business. Visit an example of an online mortgage computation. In the future, each lender will have a Web page which will process the mortgage application. One of the main reasons this has not been implemented is security, which is discussed further under the strategic risks and security section.
4. Buying stocks
Stocks will soon be able to be purchased over the Internet without the assistance of a broker. Charles Schwab has a prototype that is being tested currently in Florida. Once the security issues are ironed out, this application will also be active.
5. Ordering products.
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They can even send their credit card number over the network. Since this is non-secure, most people probably still call the company to order any item.
6. Live Video
Viewing live video clips will become more common in the future. CNN has files of video clips of news stories at video vault which can be downloaded and viewed on a home computer. Seeing actual live video feed is dependent on network speed, and most home users do not have fast enough connections to make this a practical application yet. This is discussed in more detail under the section strategic risk and speed of network access. Once the speed of network connection increases, more people will be interested in live video clips.
7. "Chat" Internet Telephone

While AOL users are currently accessing "Chat Rooms" to communicate with other people on the Internet, they are restricted to text-based communication or possibly an icon as their identity online. CUCME from Carneige Mellon provides a means for people to actually see other people online. However, network speed is once again a limiting factor. If a user is not directly connected to the Internet (most connections are via modem), then the image is extremely slow. This application will become more popular with increased network connections.
8. Video Conferencing
On the other hand, businesses will begin using video to communicate with others. Andersen Consulting is setting up training online. There should also be some applications that businesses can choose to help set up video conferencing. IBM bought LOTUS Notes for this reason last summer. IBM needs to make it a more flexible solution by interacting LOTUS Notes with the Internet. They currently are in the process of doing this. Netscape also offers a solution based on the software company Collabora that they purchased last fall. These possible solutions should encourage businesses to use video conferencing and online training. Additional information on Video Conferencing is also available.
Strategic Risks Associated with Business Uses of the Internet 1. Targeting right market segments.
It is important for advertisers to spend their advertisement dollars wisely. They can achieve this by using appropriate methods of advertising and targeting the right market segments. Two different types of advertising are entertainment ads and traditional advertising. Entertainment ads focus on entertaining a customer whereas traditional advertising is more direct and usually positioned between rather than within editorial items. When the entertainment ads work well, they can be quite successful in drawing customers to their site; however, it is very easy for this type of ad to flop resulting in no one returning to visit the advertisement site after they see it 51

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once. Traditional advertising has better readership. It can also be used well in targeting the right market segments. For instance, the ESPN Sports page would be a good site to place ads by Gatorade and Nike. Sports minded people that might be interested in these products would be likely to access these pages. A good reference for researching this topic further is at Advertising Age.
2. Security
One of the main factors holding back businesses' progress on the Internet, is the issue of security. Customers do not feel confident sending their credit card numbers over the Internet. Computer hackers can grab this information off the Internet if it is not encrypted. Netscape and several other companies are working on encryption methods. Strong encryption algorithms and public education in the use of the Internet should increase the number of online transactions. After all, getting your credit card number stolen in every day transactions is easier. In addition, securing private company information and enforcing copyright issues still need to be resolved before the business community really takes advantage of Internet transactions. There are, however, currently some methods within Netscape for placing the information online yet restricting it to only certain people such as company employees.
3. Consumer confidence
Consumer confidence is essential for conducting business online. Although related to security, consumer confidence also deals with feeling confident about doing business online. For instance, can consumers believe that a company is legitimate if it is on the Internet, or could it be some kind of boiler room operation? Also, companies must be able to substantiate their advertising claims if they are published online. These are some of the issues that concern the Federal Trade Commission, as well as the future of Internet commerce. After all, if consumer confidence is low, businesses will not succeed.
4. Speed of network access

The speed of network access is a risk for businesses. If businesses spend a lot of money for fast network connections and design their sites with this in mind yet customers have lower speed connections, this may result in less consumers accessing their site. Less consumers accessing their site most likely results in lower profits which is in addition to the extra cost of the faster network connection. On the other hand, if the company designed for slower access yet customers have faster access, they could still lose out in profits. Currently, some of the options that home users have to choose from are traditional modems, ISDN, and Cable Modems. Traditional modems are cheaper but the current speed is a maximum of 28.8 Kbps. ISDN is faster at 56 Kbps, but more expensive. Cable modems are faster yet with a speed of 4 Mbps.
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However, two-way interaction with a cable modem needs some more testing to be sure that it works as well as ISDN.
5. Picking Wrong Industry Standards

Along these lines of picking industry standards, companies must also be sure that the Web Browser that they develop for is the standard. Otherwise, some of the features that they are using to highlight their site may not work. Currently the defacto standard is Netscape. There also needs to be a standard language that adds high quality features such as animation, so that software applications written for the Internet will run on all the different types of architectures customers may have. Major computer industry players have backed JAVA by Sun Microsystems. So while some areas are becoming standardized, companies must be alert to industry changes to avoid becoming obsolete in hardware, software, and data communications.
6. Internet Community & Philosophy

The Internet was originally developed with a philosophy for sharing information and assisting others in their research. The original intent emphasised concern for others, technological advances, and not for profit organizations. With the lifting of commercial restrictions in 1991, businesses are now joining the Internet community. As with any small town that has a sudden increase in population, fast growth can cause problems. Old residents could create animosity if they feel that the new residents are taking over their community and causing congestion and prices to increase. Businesses need to be conscious of this phenomenon. While businesses can expect help from Internet users, businesses will lose this help if they only use it to make a quick profit. As in a large city, people will start to feel less like helping others in need. Businesses will be more successful on the Internet if they can emphasize how they can help add value to the Internet rather than focusing on how to make a quick profit. For example, businesses can take advantage of the opportunity to provide additional Internet services (e.g., services discussed in the sections on current uses of the Internet and future uses) now that funding from the government is being reduced. An example of a city that has grown rapidly, yet still considered very livable, is Seattle. One of the reasons attributed to Seattle's successful growth is, that despite it being a large city, there are numerous small communities within the city. These small communities retain such benefits as concern for others within the framework of services that a large city can provide. If businesses along with the Internet community follow this model, the Internet will have a chance to keep its successful small town atmosphere while adding increased services for more people.
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The Impact of the Internet on culture

a. The Internet advocates western life-styles. These websites display various aspects of western society and life, and the overwhelming majority of them have positive portrayals of the western life-style. It makes people believe that the West seems to be countries of absolute freedom and paradise for individual achievement where private life is without obstacles and external inferences. Partial information such as this is particularly appealing to our youths whose life philosophy and worldview have yet to mature. Many of these youths aspire with great diligence to go abroad just to change a way of living. b. The Internet helps dominant cultures impact and homogenize cultures in an inferior position. Because the Internet overwhelmingly is a culture of the English language, it further strengthens throughout the globe the culture based upon the English language. In comparison, cultures based upon the Chinese, the French and other languages have been weakened. Because of the introduction of the Internet, some under-developed countries have made themselves vulnerable to foreign dominant cultures, busy defending themselves. This situation has become so bad that scholars in some developing countries are concerned about their indigenous cultures being homogenized and have provided proposals to counter cultural invasion on different fronts. c. The Internet corrupts peoples minds, influences and changes peoples moral perspectives and ethical values. Driven by the profits in the numbers of hundreds of millions of dollars, the pornography merchants in Western countries have opened pornographic websites, massively producing various kinds of sex information. Nude males and females are everywhere, performances by computer prostitutes have also openly entered the Internet. This development has led the Commerce Committee of the U.S. Senate to propose the 1995
2.4: Convergence what does it mean? Impact of CT on consumer electronics, Telecom & IT, CT & mobile phones, Growth of internet business
INTRODUCTION TO CONVERGENCE TECHNOLOGY

Convergence has been defined as the ability of one or different networks to carry different services. Or the bringing together of industries in the communications area, which were previously viewed as separate and distinct in both the commercial and the technological sense. Examples are the provision of Internet access and TV to mobiles and triple or quad play services offered by ISPs or Cable TV Operators. Comcast is the 4th largest phone service provider, behind AT&T, Verizon, and Qwest There is rush to innovate The rise of convergence technologies is ushering in the most disruptive period in business cycle. Two factors are driving this phenomenon: Relentless evolution of technology Technology industrys hunger for growth
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ELEMENTS OF CONVERGENCE TECHNOLOGY

(Judith Hellerstein, President, Hellerstein & Associates, A Telecommunications and Technology Research Group)
1. Inter- and multidisciplinary research No database of scientific papers can cover all fields of science and technology, because there are some fields, such as energy or ICT, where scientific papers might not play an important role in development. However, scientific papers could be an important index of human intelligence, because most intellectual assets based on results derived from research activities would have been preserved as papers or patents. Our Study on Rapidly Developing Research Areas, took note of a co-citation relationship among papers, using the commercial database of Thomson Scientific. Co-citation refers to the situation where more than one paper is cited by the same paper at the same time. Frequently co-cited papers are often assumed to have certain similarities in content. In other words, cocitation indicates convergence in research activities. Clusters of similar research papers can be produced by sorting papers by their co-citation links. 2. Effective regulatory framework Regulatory framework must give regulator the authority and means to effectively define and apply regulations in a market. These characteristics are important, especially in markets where incumbent operators have extensive political and financial power. Framework must provide for regulatory flexibility to adapt to the unanticipated needs and use of new technologies and services The role of the regulator is not to promote or accelerate convergence. but to establish an environment for fair competition, i.e. a level playing field so that if there is a demand for convergent services, such services can develop in the market and compete fairly with one another, bringing consumers the benefits of innovation, convenience and choice. 3. Neutrality Need to create clear definitions for Technology, Service, and Network neutrality guidelines. Technology Neutrality is basically the principle that rules should not discriminate in favor of any technology. Service neutrality is that rules should not discriminate in favor of any particular service. Network neutrality is the principle that Internet users should be in control of what content they view and what applications they use on the Internet. It is about equal access to the Internet. Broadband carriers should not be permitted to use their market power to discriminate against competing applications or content. 4. Licensing Many regulators and policymakers have already modified their licensing regimes from the traditional one-service or technology license to a broad set of categories, and some have adopted the more simplified approach of unified licensing.
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Many countries are combining this simplification with the introduction of flexible licenses that use a technology and service neutral approach to determine the rights and obligations granted by the licenses. These update the obligations for Interconnection, numbering, universal service and consumer protection rules to the new environment of convergence. 5. Spectrum Management The current trend is to develop new spectrum-efficient technologies that allow new users of spectrum to be accommodated while at the same time reducing the cost per user per hertz by increasing the number of users that can access a given portion of spectrum. New technologies are evolving that allow for the sharing of spectrum more efficiently, the leasing of unused spectrum to other companies, and the auctioning of white spaces between spectrum licenses that previously were thought to not be usable. New and emerging technologies will spur an increase in demand for spectrum-dependent wireless services, challenging regulators and users alike. 6. Interconnection
Traditionally interconnection regulation was established for switched voice services, where rates were generally based on a per minute charge Converged Services, most notably those based on the IP protocol, require interconnection rights and new interconnection schemes with different types of access and charges to ensure that everyone can interconnect regardless of the type of network they are using. Newer interconnection pricing involved symmetrical interconnection costs, where any operator, regardless of network type, is obliged to interconnect with any other operator.
WIRELESS Telecommunication: Finally, serious cell-phone capabilities and services are rolling in. Imagine your next phone as a TV, Radio, and Video cam. Huge cell-phone market is pushing media companies and software developers to develop new technologies for mobile phones. ABC is offering video clips for Sprint cell-phone subscribers. National Public Radio is delivering segments of Morning Edition and other shows to AT&T Wireless customers. Yahoo! Inc. is working on ways to make as many as 100 channels of Internet service available to cell-phone users. Walt Disney Co. plans to offer short, animated videos featuring Mickey and the gang. The New Wireless Revolution: A wave of innovation is coming to the cell-phone world. Thanks to faster networks and phones with more memory and better screens, people will
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soon use their handsets to watch TV, listen to music, and shop. Here is a look at whats hot (year 2004 information): Stars of the small screen: Pioneers are using their cell phones to show video clips from CNBC and College Sports Television.AT&T Wireless and Sprint offer the services to their subscribers for $5 to $20 a month. Talk Radio Wireless phones are doubling as radio receivers. Sprint customers can listen to Major League Baseball games for $10 a month, and AT&T Wireless subscribers can hear National Public Radio reports for $5 a month. Yahoo! plans to make at least some of its 100-plus stations of Net radio available to cell-phone customers. Location, Location, Location: For $3 a month, AT&T Wireless subscribers can have satellites track the exact location of their phone. That makes it easier for emergency crews to find people who need help. It also lets customers in unfamiliar locales get directions to the nearest restaurant or movie theatre.
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2.5: Ten technological shifts from analog to digital, Business information for competitive advantage, Next generation technologies 2.5 G, 3G etc
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2.6: Impacts of CT on Banking, telecom, hotel etc
E-Banking (Impact of technology on Banking)

Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions. In internet banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The network which connects the various locations and gives connectivity to the central office within the organization is called intranet. These networks are limited to organizations for which they are set up. SWIFT is a live example of intranet application.
Internet banking in India

The Reserve Bank of India constituted a working group on Internet Banking. The group divided the internet banking products in India into 3 types based on the levels of access granted. They are: i) Information Only System: General purpose information like interest rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website. There exist facilities for downloading various types of application forms. The communication is normally done through e-mail. There is no interaction between the customer and bank's application system. No identification of the customer is done. In this system, there is no possibility of any unauthorized person getting into production systems of the bank through internet.
ii) Electronic Information Transfer System: The system provides customer- specific information in the form of account balances, transaction details, and statement of accounts. The information is still largely of the 'read only' format. Identification and authentication of the customer is through password. The information is fetched from the bank's application system either in batch mode or off-line. The application systems cannot directly access through the internet. iii) Fully Electronic Transactional System: This system allows bi-directional capabilities. Transactions can be submitted by the customer for online update. This system requires high degree of security and control. In this environment, web server and application systems are linked over secure infrastructure. It comprises technology covering computerization, networking and security, inter-bank payment gateway and legal infrastructure.
Automated Teller Machine (ATM):

ATM is designed to perform the most important function of bank. It is operated by plastic card with its special features. The plastic card is replacing cheque, personal attendance of the customer, banking hours restrictions and paper based verification. There are debit cards. ATMs used as spring board for Electronic Fund Transfer. ATM itself can provide information about customers account and also receive instructions from customers - ATM cardholders. An ATM is an Electronic Fund Transfer terminal capable of handling cash deposits, transfer between accounts, balance enquiries, cash withdrawals and pay bills. It may be on-line or 0ff-line. The on-line ATN enables the customer to avail banking facilities from anywhere. In off-line the facilities are confined to that particular ATM assigned. Any customer possessing ATM card issued by the Shared Payment Network System can go to any ATM linked to Shared Payment Networks and perform his transactions. Credit Cards/Debit Cards: The Credit Card holder is empowered to spend wherever and whenever he wants with his Credit Card
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within the limits fixed by his bank. Credit Card is a post paid card. Debit Card, on the other hand, is a prepaid card with some stored value. Every time a person uses this card, the Internet Banking house gets money transferred to its account from the bank of the buyer. The buyers account is debited with the exact amount of purchases. An individual has to open an account with the issuing bank which gives debit card with a Personal Identification Number (PIN). When he makes a purchase, he enters his PIN on shops PIN pad. When the card is slurped through the electronic terminal, it dials the acquiring bank system - either Master Card or VISA that validates the PIN and finds out from the issuing bank whether to accept or decline the transactions. The customer can never overspend because the system rejects any transaction which exceeds the balance in his account. The bank never faces a default because the amount spent is debited immediately from the customers account.
Smart Card:
Banks are adding chips to their current magnetic stripe cards to enhance security and offer new service, called Smart Cards. Smart Cards allow thousands of times of information storable on magnetic stripe cards. In addition, these cards are highly secure, more reliable and perform multiple functions. They hold a large amount of personal information, from medical and health history to personal banking and personal preferences.
You can avail the following services through E-Banking.

Bill payment service You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills as each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. To pay your bills, all you need to do is complete a simple one-time registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. Generally, the bank does not charge customers for online bill payment. Fund transfer You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees's account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days. ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services. Credit card customers With Internet banking, customers can not only pay their credit card bills online but also get a loan on their cards. If you lose your credit card, you can report lost card online. Railway pass This is something that would interest all the aam janta. Indian Railways has tied up with ICICI bank and you can now make your railway pass for local trains online. The pass will be delivered to you at your doorstep. But the facility is limited to Mumbai, Thane, Nashik, Surat and Pune. Investing through Internet banking You can now open an FD online through funds transfer.Now investors with interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account. Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system. Nowadays, most leading banks offer both online banking and demat account. However if you have your demat account with independent share brokers, then you need to sign a special form, which will link your two accounts. Recharging your prepaid phone Now just top-up your prepaid mobile cards by logging in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is again back in action within few minutes. Shopping With a range of all kind of products, you can shop online and the payment is also made conveniently
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through your account. You can also buy railway and air tickets through Internet banking. Advantage of Internet banking As per the Internet and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking. It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a miniscule cost." Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to. Where in a traditional method, you get quarterly statements from the bank. If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you.
Security Precautions
Customers should never share personal information like PIN numbers, passwords etc with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password mailers should not be stored, the PIN and/or passwords should be changed immediately and memorised before destroying the mailers. Customers are advised not to provide sensitive account-related information over unsecured e-mails or over the phone. Take simple precautions like changing the ATM PIN and online login and transaction passwords on a regular basis. Also ensure that the logged in session is properly signed out.
Advantages of Online Hotel Booking

The internet is one of the most useful tools invented by mankind in connection to the computers. There are various sectors which have adopted the use of the internet and the computers in carrying out their day to day activities. The hospitality industry is one of the sectors which has taken to the internet in the best possible manner. It has become extremely difficult for the different hotels to compete with the others without having a presence on the internet. One of the facilities provided by the hotels include the online hotel booking. The advantages of online hotel booking are discussed below. Presence on the internet The internet is becoming extremely popular with the people as a preferred source of information on various travel related needs. Thus it is quite natural for the people to look for numerous details regarding hotel accommodation around the world on the internet. One of the advantages of online hotel booking is that it automatically creates a presence on the internet for the hotel. Many of the popular hotels of the world hava put up their own website on the internet. That also helps the hotels to generate a visible presence on the internet. More enquires for hotel room Another one of the advantages of online hotel booking which the people get is the generation of more enquiries about the hotel. It is only when enquiries are generated that more customers could be obtained. Many of the hotel websites provide an enquiry form for the people to fill up. The chances of an enquiry to lead to a room booking is quite high. Rise in occupancy rates The online presence of the hotels help in the matter of generating more room bookings through the internet. A great number of the travelers opt for the online room bookings when they are planning for a holiday in a distant location of the world. That is again one of the advantages of online hotel booking
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which the hoteliers could derive. Hotel internet marketing ensures that the search engines show the details of the hotel in top results. Payment methods easier The online reservation system makes the task of booking for hotel rooms a lot more easier and hassle free. You could do away with the tension which usually accompanies when a travel to hotel booking agent is used for the same purpose. The payment for online hotel booking could be done by the method of using a credit or debit card. That is also one of the advantages of online hotel booking which you could make use of. The vulnerability of the online security system which the website has installed has to be checked for ensuring the safety of your personal details. The numerous benefits of online hotel booking has made the popular hotels and hotel chains to look at the internet to boost their business. The internet also provides an advantage to those hotels which have an online presence against those which do not have one. The advantages of online hotel booking are too numerous for either the hotels or the guests to ignore.
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Unit-III
3.1: Business Process Re engineering(BPR), Supply Chain Management Benefits, advantages etc. Monitoring of quality along the supply chain.
Supply Chain Management

Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. Supply chain management spans all movement and storage of raw materials, work-inprocess inventory, and finished goods from point-of-origin to point-of-consumption.
The term supply chain management was coined by consultant Keith Oliver, of strategy consulting firm Booz Allen Hamilton in 1982. The definition one America professional association put forward is that Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers,
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intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies. Supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring events and factors that can cause a disruption in a supply chain. With SCEM possible scenarios can be created and solutions can be planned. Our team of Supply Chain experts can work across a wide spectrum of vertical industries and help to optimize it.
It is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain). Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."
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Supply chain management (SCM) is the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole. A customer focused definition is Supply chain strategies require a total systems view of the linkages in the chain that work together efficiently to create customer satisfaction at the end point of delivery to the consumer. As a consequence costs must be lowered throughout the chain by driving out unnecessary costs and focusing attention on adding value. Throughput efficiency must be increased, bottlenecks removed and performance measurement must focus on total systems efficiency and equitable reward distribution to those in the supply chain adding value. The supply chain system must be responsive to customer requirements."
Advantages of SCM
Supply chain management (SCM)a term that first appeared in the late 1980srefers to the management of a distribution channel across organizations. All the members of the channel, from suppliers to end users, coordinate their business activities and processes to minimize their total costs and maximize their effectiveness in the market. The goal is to achieve the coordination and continuity of a vertically integrated channel without centralized ownership of the entities comprising the channel. The firms in the channel form a long-term partnership or strategic alliance in order to improve service to the end consumer, reduce channel costs, and create a competitive advantage.
Supply chain management can be contrasted with a traditional distribution channel in which firms deal with one another on a short-term, arm's-length basis, with each one trying to maximize their own gain from each transaction. Without supply chain management, the relationship between firms in the channel lasts only from transaction to transaction. Most organizations in the traditional channel do not really see themselves as part of a vertically integrated channel. They only see themselves as independent businesses that buy from suppliers at the lowest possible price and sell to customers at the highest possible price. Diseconomies caused by redundancies, particularly of inventory, are common in such a channel. By looking across the entire channel, supply chain management tries to eliminate these redundancies.
There are a number of key characteristics of supply chain management. One of the most important is that the firms involved see themselves as part of the channel and understand that their future depends to a large extent on the success of the whole channel. The relationships are viewed as long term, and the corporate cultures, philosophies, and missions are similar. There is joint planning of products, locations, and quantities of inventory to be kept in the system. There is also a great deal of information sharing between firms in order to coordinate the efficient flow of goods through the channel. Modern computing and communication technology, such as electronic data interchange, is used to rapidly provide information within the channel as needed. Cost advantages are exploited wherever possible. For example, the production of a product requiring a great deal of human labor would be produced by the member with the lowest labor costs.
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Performance of a company's supply chain management can be analyzed in terms of cost control, customer service, and asset productivity. A study of leading supply chain management companies, conducted by William C. Copacino in association with the Massachusetts Institute of Technology, suggests there are several areas in which the leaders excel. These include functional excellence in such areas as procurement, manufacturing, transportation and distribution, and customer service, with a highly developed level of skills and integrated management. Leaders are also skilled at managing complexity, especially the management of surge and uncertainty in such areas as new product introductions, productline complexity, and seasonal variations. Leading supply chain managers also employ the best information technology for applications, data management, decision support tools, and communications. They are able to leverage the distinctive capabilities of supply chain providers as well as to create an extended supply chain with visibility and collaboration across the channel.
The rapid growth of electronic commerce is expected to have an effect on supply chain management. Benefits include process efficiency, with greatly reduced costs made possible by utilizing the power of the Internet to enhance efficiency and effectiveness of various supply chain processes from order entry to supplier management. Electronic commerce will also result in channel restructuring, the elimination of some intermediaries, and a drastic reduction of channel inventories, handling costs, and transition costs. Companies will be able to better integrate electronically with their suppliers and customers to lower transaction costs, manufacturing costs, and supply costs, among other benefits.
Just in time production (JIT)

Just in time is a pull system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time. This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. Modern manufacturing firms use sophisticated production scheduling software to plan production for each period of time, which includes ordering the correct stock. Information is exchanged with suppliers and customers through EDI (Electronic Data Interchange) to help ensure that every detail is correct. Supplies are delivered right to the production line only when they are needed. For example, a car manufacturing plant might receive exactly the right number and type of tyres for one days production, and the supplier would be expected to deliver them to the correct loading bay on the production line within a very narrow time slot. Advantages of JIT Lower stock holding means a reduction in storage space which saves rent and insurance costs As stock is only obtained when it is needed, less working capital is tied up in stock There is less likelihood of stock perishing, becoming obsolete or out of date Avoids the build-up of unsold finished product that can occur with sudden changes in demand Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time
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Disadvantages of JIT There is little room for mistakes as minimal stock is kept for re-working faulty product Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders however, JIT is a very responsive method of production.
3.2: IS design for Internetworked business (Level 1 to level 5), Case studies -FedEX, Hospital care system INFORMATION SYSTEM DESIGN FOR INTERNETWORKED BUSINESS (Students are advised to report carefully the following steps in this COURIER SYSTEM)
Example 1 of The Digitally Supported Movement of Things-Federal Express (FedEx) as The Logistics Link between Customers and Merchants If organized chaos has a home, it is at the Federal express Super Hubin Memphis, Tennessee. There, in a frantic four-hour period that begins just before midnight, more than 100 airplanes wing in bearing 1.2 million packages for approximately 7000 employees to sort on 200 miles of conveyor belts. On the night in 1973 that FedEx was launched , the firm carried 19 items. Today its more than 108,000 employees and 35,000 trucks mean that FedEx has captured half of the overnight delivery market. Federal Express is a series of networks, and it takes about 17 hours for a package to move from shipper to receiver During that seventeen hours they do everything possible to keep this shipment from going astray as it moves from shipper to station, to airport, to one of the sorting hubs, and on to the destination customer. they have a flawless set of events happen for seventeen hours.. Every time that parcel changes status, information is recorded through sensors and entered into the COSMOS (customer, operations, management, and services) database. The database contains all the basic customer information-name, account number, address, package pickup location data-and it communicates with a number of other systems and devices to maintain a complete record of each shipment that FedEx handles, from the beginning to the end of the process. When a customer calls in to have a package picked up, that call is taken by a customer service agent at one of the forty-two (42) call-centers worldwide. The package pickup request is transmitted to the COSMOS system, and relayed to the dispatch center in the city closest to the shipper. Seconds later this pickup request is transmitted to a small computer (called DADS, or digitally assisted dispatch system) located aboard a FedEx van. The courier then drives to the customers location and picks up the package. It is at this point that service quality measurement begins. The courier uses the Super trackera small, portable, battery-operated, menu-driven computer having bar code scanner-to scan the smart bar code on the package. As well, the courier keys in certain information such as the destination ZIP code.
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The Super tracker device is very smart. It knows its own ZIP code, which route it is on, who the courier is, and the time and date. When the courier leaves the customer and returns to the van, the courier places the Super tracker into a port located on the DADS computer. The package information is automatically transmitted back to the dispatch center and to the COSMOS database, making the data available to all customer-service personnel worldwide. At that point, less than five minutes after the package is picked up, FedEx has all the information required for the shipper and consignee about when the package was picked up, who picked it up, the location, the type of service, where the package is going, and the intended routing. As the package moves through the system and is scanned, this information is continually updated. Before the night is over FedEx will have scanned 2.4 million shipments, up to nine times each, as they move through the network. All during this period FedEx is running comparison reports in all systems to determine if any shipments has gone astray. The idea is to be proactive-to spot and correct a problem before there is a failure from the customers perspective. After the package arrives at the destination city, it is scanned and sorted. When it is placed on a couriers van for delivery that morning, another scan is carried out so that the system knows which truck and driver has the package. Finally, when the van arrives at the customers destination a scan for proof of delivery is conducted by keying in the name of the person who signed for the package. The courier then returns to the van and places Super tracker in the DADS computer, and the final proof of delivery information is transmitted back to the main database in less than four minutes. The result is that FedEx has complete package of information. What is more important, is if that package was delivered five minutes late, if there was an exception, if it had been damaged or misrouted, we have been able to capture all that information on real time basis, says CIO Dennis Jones. By the middle of the afternoon , FedEx will know how many packages in the cycle have been misdelievered, delivered late, damaged, or lost. The next morning the individual courier receives a quality feedback report giving details of all transactions that were not 100% correct. Other teams work to understand exactly why an error was made and follow up if if there is a dissatisfied customer. The FedEx approach combines continuous learning and action. Information technology is no different from marketing. It is continuous and needs always to be taken into account. It requires more expertise by people at lower level to understand information technology. They need to know where the information is and where it is coming from. When technology is so integral, one has got to know more than just whats coming across your desk What this technology integration at FedEx has achieved is business process transformation though three levels leading to integrated enterprise. These three levels are: With technology integration business process transformation is achievable at five levels leading to an internetworked enterprise These five levels are: Level 1: The Effective Individual, Level 2: The High-Performance Team, Level 3: The Integrated Enterprise, Level 4: The Extended Enterprise, There is a shift from value-added enterprise to an enterprise that is a value network. Level 5: The Internetworked Enterprise is this:
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Healthcare
Following is a real case example of application of convergence technology to healthcare. The case
example was carried out in real life by the National Information Infrastructure Testbed (NIIT). A 40-year-old woman from Baltimore, vacationing with her family and driving in the family car through the south eastern desert of California, is seriously injured in an accident. She is unconscious and unresponsive. Transported to a nearby rural hospital she arrives looking pale, with a pulse of 120 and blood pressure of 110/90. A breathing tube is inserted through her trachea, and she is placed on a ventilator. The emergency physician of the rural California hospital, High Desert hospital-conducts a teleconsultation with specialists from the University of Southeren California/Los Angeles County Medical Center (USC/LAC). As a result of this consultation, the patient is immediately transported to USC/LAC for further evaluation and treatment. A computer tomography(CT) scan of the abdomen reveals a massive hemetoma of the liver with no free blood. The patients health Care Identification (HCI) card is swiped through a card reader that gives access over a national network of records. The patients electronic records show two very useful facts: she had a triple bypass operation a year ago and she is allergic to certain drugs. The discovery of the pre existing condition eliminates the need to perform surgery on a possible ruptured aorta. The information about the drug allergy allows the physician to prescribe a non-allergenic drug. Next, the doctors at USC/LAC initiate another tele-consultation with the patients personal physician located at Johns Hopkins University Medical Center in Baltimore. During the consultation both doctors view, manipulate, and analyze three-dimensional medical images of the patients internal organs. They see that a segment of the small bowl has been ruptured. They then compare the previous CT scan with the new 3D reconstruction of the abdomen and agree on a very limited surgical approach that avoids the need for other invasive tests and more dangerous surgery. This case description demonstrates how healthcare process can be transformed into an internetworked process for effective healthcare.
3.3: Error model, IS errors, Traditional Vs Quality IS, Inadequacy of quality IS, Quality circles.
Errors in decision making (I*I risks)

-In fact there is the issue of Information Integrity (I*I) risk that the decision making process in a complex and changing environment experiences. Specifically, I*I risk is of making a decision choice ex ante which will, according to the ex ante estimate of the decision-making process, perhaps turn out to have been sub-optimal ex-post. -This kind of risk has to be caused by insufficiently full and perfect information, which is either misleading (biased, i.e., distorted) and/or incomplete (noisy).Such information is with inadequate integrity, hence with a requirement for additional information value, which improves value of available I*I. -Search for IS model that helps analyze I*I risk (and uncertainty) and hence value of information and of I*I defined as above is then the concern of study through the rest of the course.
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NEED FOR THEORY OF ERRORS
Information with loss of integrity is insufficiently full and perfect information. This is the
question of information error. Any pursuit to do something about errors in any application (for example, in banking operations or say in medicine, etc.) would depend directly and strongly on some theory of what an error is, how an error is generated, what happens after an error comes into being, how it is that an error is detected, and what it is that causes damage (minor, acceptable or unacceptable). This is true for errors in physical systems as also in informational systems. To cure error in any application sector (nuclear power plants, manufacturing industry, banking sector, telecommunications network, medical application, or kitchen), one must know something about faults/irregularities/deviations in that application sector. What is an error? Why do errors occur? The causal mechanisms of errors in a given specific application sector of say nuclear power plant, if there are any, must be the same as those of errors in manufacturing sector, or in a medical application, or in the kitchen. Although most people use the terms specifying errors from their application sectors, what they talk about are accidents. What is the difference between error and accident? What is required is to give answers to such and other questions? From the viewpoint of an external observer, an error can be seen as a failure to ensure an optimum, desired, or intended value (for a view, format, variable, or process, etc. as the case may be) that is correct given the circumstances (situation), the cause and form of error notwithstanding. An error can occur only if there is an appropriate identified source of value (standard) to ensure on the basis of a documented state of events. An error must not be defined as an adverse or serious outcome. An adverse outcome or accident may happen with no antecedent error. This may occur if the intention (standard) was the proper one, the action was properly executed, and the outcome was not certain. Examples are playing a game, deciding whether to carry an umbrella, administering a medicine, or performing an operation known to be risky.
WHAT IS AN ERROR IN APPLICATION SETTING THEN?
How is an Error defined in the context of a given application domain (sector)?

It is common to discuss errors in a given application setting in terms of their expressions, that is, what went wrong or what was done wrong. It is common to report errors in an application sector (domain) only in terms of their adverse consequences, that is, what happened as a result (for example, in case of a medical setting, what happened to the patient).
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This has serious shortcomings. Only those consequences that result in irreversible damages get reported (in say a medical setting, irreversible damage/consequence may be injury or death). Thus, in reality, what are reported are not errors in a given application domain (sector) but application sector specific accidents consequent on errors for which a process or processor (for this purpose human is considered as a processor) might be held responsible. What is not seen are those errors which occurred and were caught before they were completed. For example, in the medical sector, there is no good estimate of the probability of substitution errors on the night shifts, or by physicians, or by pharmacists. Similarly, a coding error in a software may not be located until the program in the course of its execution visits that code; thereby suggesting poor estimate of the probability of substitution errors. It is of great importance to know the modes of errors that are not harmful. The information could, for example, help in estimating the risk of introduction of a new product, a new package, or a new device in to the application domain under consideration. This calls for some kind of better data/information collection process. It is usually the case that if there is no adverse outcome-no accident-the error is not reported and dose not become part of the experience base of the practices in the application domain under consideration. However, to understand what accidents are likely to happen in the application domain under consideration, (feedback) information must be obtained about all errors: those that damage, and the near misses or those that have yet to come (detection, estimation and prediction). Then appropriate protective measures can be in place to wait for the error and interdict rather than to be put into place after the incident.
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Unit-IV
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Uncertainty in Traditional Business Process, which is characterized by A Collective Decision-Making:
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Uncertainty in A Collective Decision process:
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A Systems View of Uncertainty in The Collective Decision-Making, which characterizes Traditional Business IS :
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Traditional Business IS Uncertainty in Collective Decision Process View due to application emphasis with system non-integration:
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Uncertainty in Open System View of Business IS A multistage decision process, which is a continuous individual information origination in the presence of uncertainty:
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Open System view of Business IS-A Multistage Decision Process : Towards Individual Information Originating & Processing Situation:
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Business process IS view comprising a multistage decision process and as a continuous individual information origination and processing situation in the presence of uncertaintyAn Elaboration:
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Unit-V
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Introduction to STELLA:
Systems Thinking for Education and Research

Education and research are most exciting when they move out of the lecture hall and library and provide opportunity to create, experience, and see. STELLA offers a practical way to dynamically visualize and communicate how complex systems and ideas really work. Whether they are first-time or experienced modelers, teachers, students, and researchers use STELLA to explore and answer endless questions like: How does climate change influence an ecosystem over time? Would Hamlets fate have changed if hed killed Claudius earlier? How do oil prices respond to shocks in supply and/or demand? What will happen when the ozone layer is gone? How do basic macroeconomic principles affect income and consumption?
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The Gold Standard

Easy-to-use, STELLA models provide endless opportunities to explore by asking "what if," and watching what happens, inspiring the exciting ah-ha moments of learning. Thousands of educators and researchers have made STELLA the gold standard; using it to study everything from economics to physics, literature to calculus, chemistry to public policy. K-12, college, and research communities have all recognized STELLAs unique ability to stimulate learning.
Shared Learning
You know that your students have learned when they can, in turn, explain. STELLA models allow you to com system works what goes in, how the system is impacted, what are the outcomes. STELLA supports diverse learning styles with a wide range of storytelling features. Diagrams, charts, and animation help visual learners discover relationships between variables in an equation. Verbal learners might surround visual models with words or attach documents to explain the impact of a new environmental policy.
Use STELLA to: Simulate a system over time Jump the gap between theory and the real world Enable students to creatively change systems Teach students to look for relationships see the Big Picture Clearly communicate system inputs and outputs and demonstrate outcomes
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Key Features
Mapping and Modelling Intuitive icon-based graphical interface simplifies model building Stock and Flow diagrams support the common language of Systems Thinking and provide insight into how systems work Enhanced stock types enable discrete and continuous processes with support for queues, ovens, and enhanced conveyors Causal Loop Diagrams present overall causal relationships Model equations are automatically generated and made accessible beneath the model layer Built-in functions facilitate mathematical, statistical, and logical operations Arrays simply represent repeated model structure Modules support multi-level, hierarchical model structures that can serve as building blocks for model construction Simulation and Analysis Simulations "run" systems over time Sensitivity analysis reveals key leverage points and optimal conditions Partial model simulations focus analysis on specific sectors or modules of the model
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Results presented as graphs, tables, animations, QuickTime movies, and files Dynamic data import/export links to Microsoft Excel
Communication Flight simulators and dashboards describe model components and facilitate manipulation Input devices include knobs, sliders, switches, and buttons Output devices highlight outcomes with warning flashers, text, graphs, tables, and reports Storytelling supports step-by-step model unveiling Causal Loop Diagrams present dominant feedback loops within structure Sketchable graphs allow easy comparison of expected results with actual simulations Export for NetSim support publishing and sharing model over the web using isee NetSim add-on software Save as Runtime option creates full-screen, runtime models Multimedia support triggers graphics, movies, sounds, and text messages based on model conditions Model security features allow locking or password protection
STELLA is a commercial software package that facilitates the creation of both simple and complex numerical models. It has a friendly graphical interface that aids in laying out, constructing, and utilizing a model. Models can be configured to run independently with set inputs (either numerically or graphically specified) or in an interactive "flight simulator" mode.
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Model output can be observed via numerical readouts, tables, and graphs. The STELLA software also provides a variety of tools that facilitate documentation and presentation of the model as a structured "learning environment". Using STELLA Model Simulations STELLA Modeling software is a powerful tool for constructing mathematical models of physical/chemical systems. After constructing a model, simulations can be run by changing the input variables and following the response of a model on a graph or in a table of output variables or results.
Studying Graphs We are going to take the graphical approach to studying variables. Here are some items we are going to investigate on graphs in a number of models in kinetics, equilibria, and radioactive decay: independent versus dependent variables direct versus indirect relationships linear versus non-linear behaviour equation of a line - y = mx +b slope (m) and its variation y-intercepts (b) transformation of variables such as log plots translation of a curve/line You may want to consult an algebra textbook to review some of these simple mathematical concepts. Investigating Changing Variables When we change a variable using a slider, we want to see how the graph responds. A good approach to this is to change a variable from low to high at 3 or 4 different values. Try to explore the total range of the variable. Then investigate another variable if required. Before starting another variable, set
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the previous variable at mid-range on the slider. Discover the trend in a variable and then move on to the next one. Many of the graphs will show multiple runs to allow easy comparison of changes. If a graph becomes to busy, press the clear button. Sketching and labelling graphs are highly recommended.
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Unit-VI Usefulness-Usability-Integrity (UUI) Paradigm:
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Accuracy, Consistency, Reliability (Quantifying I*I and its attributes):
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INDUSTRIAL MANAGEMENT (T.E.

Unit-I Current Industrial Management Practices

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Fig: Management Process / Functions of management 3

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Different Functions of Management: Planning Function

Steps in Planning Function

2. Establishment of Planning Premises

3. Choice of alternative course of action

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

4. Formulation of derivative plans

6. Follow up/Appraisal of plans

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Staffing Function of Management

Nature of Staffing Function

DIRECTING Function of Management

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Controlling Function of Management

Features of Controlling Function

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Differences between Leadership and Management

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Frederick W. Taylor: Management Theory

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Fayol (1841-1925) Functions and Principles of Management

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Quality concept and phases in quality management:

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

PHASES IN QUALITY MANAGEMENT:-

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Juran's view of Quality

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Create your organisation structured

Reproducing your organisational structure

Designing your own questionnaires

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Your own questionnaire in a flash

Paper based surveys

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Scan and acquire

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Exporting data and other statistical reports

Phase 5: Quality management

Optimising the procedure

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Total productivity = Output quantity / Input quantity

Open and Closed Systems

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Open Systems vs. Closed Systems

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)

Proprietary Interface Model

Different Types of Management Info Systems