Professional Documents
Culture Documents
INTRODUCTION:
Definition: Industrial Management can be defined as the effective and efficient running of an industry
using its human and non-human resources in order to achieve its set goals and objectives.
It can also be defined as the effective and efficient utilization of organizational resources to achieve an
industry set goals.
In the present context, managing has become one of the most important area of human activity because
of increasing role of large and complex organisation. Ever since people began forming groups to
accomplish aim they could not achieve as individuals, managing has been essential to ensure the
coordination of individual efforts. As society has come to rely increasingly on group effort and as many
organized groups have become large, the task of managers has been rising in importance. This has led
to the development of a new field of study known as management.
Management is an activity process composed of some basic functions, for getting the objective of any
enterprise accomplished through the efforts of its personnel. Wherever and whenever objectives are to
be achieved through organized and co-operative endeavour, management becomes essential for
directing and unifying the group efforts towards a common purpose. As human aims and beliefs are
mostly realized through the establishment of diverse associations in our society, management is
universally needed for operating all such organization. Management, viewed as a functional concept, is
of equal necessity to the educational religious, charitable and other non-business institutions as it is
required for business Organizations. Furthermore, the greatest and the most comprehensive of our social
organizations, viz., the Government of all types needs management as others require, perhaps more than
all other social organizations. That the Government without requires a management process has been
apply pointed out in the statement: A Government without good management is a house built on sand.
Put in short, management is an essential accompaniment of all social organizations, and it is to be found
everywhere as a distinct, separate and dominate activity. The nature and significance of the activity do
not change even if it is called administration in some social in situations and management in others.
History of management:
Industrial Revolution
Before the Industrial Revolution people worked with hand tools, Manufacturing articles in their ownhomes or in small shops. In the third quarter of the 18th century,steam power was applied to machinery.
People and machines vere brought together under one roof in factories, where the manufacturing process
could be supervised. Yhis was the beginning of shop management. In the next hundred years factories
grew rapidly in size, in degree of mechanization, and in complexity of operation. However, the growth
was accomplished by much waste and inefficiency. In the United States many engineers, spurred by the
increased competition of the post-civil war era, began to seek ways of improving plant efficiency.
A further growth of factory system was made possible by the development in transport by canals,
railways, roads, etc, in 1830. The factory system started in 1780s for cotton textile manufacture, then
came to be known as the Modern Industry.
Development of Management Managers
With the rise of modern industry two groups were formed- the management and the labour. Also with
the further modernisation of the industries by the use of power driven machinery, complex division of
labour, etc., many problems rose up between the management ant the labour class. Because of this, the
industrial owners could no longer succeed to manage their companies. This gave rise to the demand for
a new class of persons, Manages. However, no synthetic efforts were made for a long term to satisfy
the demand of managers. Gradually, a few progressive owners gave a lead in attempting such persons
to manage the affairs of their companies. Later some organizations began to give active support to the
training programmes for junior executives.
As a result of all these efforts it is now being understood that professional managers are necessary for
the success of the economic and commercial organization, and also for the success of all other forms of
organization, and also for success of all other forms of organised living.
Contribution by Pioneers
There are many pioneers who contributed for the development of scientific management. The most
important pioneers are:
1.
2.
3.
4.
5.
6.
Frederick W Taylor
Henry Fayol
Frank B Gilbreth
Mary Parker Follet
Hennery Gantt
Elton Mayo
Fayol's contributions were first published in book titled "Administration Industrielle et Generale", in
1916. He looked at the problems of managing an organisation from top management point of view. He
has used the term 'administration' instead of 'management'. His contributions are generally termed as
operational management or administrative management.
Fayol has divided the activities of an industrial organization into six groups. They are
His greatest contribution is the principles of management. His fourteen principles of management are:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Division of work
Authority and Responsibility
Discipline
Unity of command
Subordinate of individual interest to the general interest.
Unity of direction
Remuneration
Centralization
Scalar chain
Order
Equity
Stability
Initiative
Esprit de corps
Frank B Gilbreth
Initially Frank B Gilbreth was an apprentice in a brick company. Then he passed through the posts of
Tradesman, Foreman, Superintendent and Manager and eventually he realised all his ambitions. After
ten years of experience in a construction company he set up his own contracting business. His
contributions are as follows:
1. He developed motion study. According to him, purpose of motion study was to establish the
least effort methods of doing a work for workers.
2. Gilbreth evolved the principles of motion economy.
3. He introduced process chart, showing the various activities in a job.
4. He identified THERBLIGS the fundamental motion involved in doing an activity.
5. He developed micro-motion study and SIMO (simultaneous motion) chart.
6. He carried out studies on fatigue by lightening the load, spacing the work and providing rest
periods.
1. Division of Work: He emphasizes the production of more and better work with the same
effort as the object of division of work. He stresses that each change of work, whether of
the worker or the manager, brings in its train an adaptation which reduces output. Whilst
advocating specialization and division of work as the best means of making use of
individuals and groups of people, he warns that division of work has its limits which must
not be exceeded.
2. Authority and Responsibility: He explains authority as "the right to give orders and the
power to exact obedience".
3. Discipline: He believes discipline is absolutely essential for the smooth running of
business. The best means of establishing and maintaining discipline are good superiors at
all levels, agreements as clear and fair as possible, and sanctions (penalty) judiciously
applied.
4. Unity of Command: Here he advocates that an employee must receive orders from one
superior only for any action whatsoever. Uneasiness is felt immediately when two superiors
wield their authority over the same person or department. He feels that dual command is a
perpetual source of conflict.
5. Unity of Direction: This is explained as "one head and one plan for a group of activities
having the same objective". This is essential for "unity of action, co-ordination of strength
and focusing of effort". Unity of direction refers to "one head, one plan" whilst unity of
command emphasizes "one employee to have orders from one superior only".
6. Subordination of Individual Interest to General Interest: The interest of one employee or
group of employees must not prevail over that of the concern. He stresses that although
this is so obvious, it is lost sight of because of ignorance, ambition, selfishness, laziness
and weaknesses. All human passions tend to cause the overlooking of the general interest.
7. Remuneration: Remuneration being the price of services rendered by personnel, should be
fair and must, as far as possible, afford satisfaction to both the personnel and the firm.
8. Centralization: He explains this as "everything which goes to increase the importance of
the sub-ordinate's role is decentralization, everything which goes to reduce it is
centralization". A certain extent of centralization or decentralization automatically exists
and it is more a matter of finding the "optimum degree for the particular concern".
9. Scalar Chain: He looks upon the scalar chain as "a chain of superiors ranging from the
ultimate authority to the lowest ranks". Thus the line of authority is routed via every link
in the chain by all communications which commence from or reach the ultimate authority.
This path is "disastrously lengthy in large concerns, notably In governmental ones". One
should not depart needlessly from the line of authority but it is even a greater error to stick
to it when detrimental to the business.
10. Order: The formula given here is "a place for everything and everything in its place" (for
material things) and "a place for everyone and everyone in his place" (for human order). It
is a principle of organization for arrangement of material things and human beings. It is a
must for both material order and social order.
11. Equity: "He feels that the head of the business must strive to instill a sense of equity
throughout all levels of the scholar chain". To evoke devotion and royalty from the
personnel, it is necessary to treat them with kindness. Equity results from kindliness and
justice.
12. Stability of Tenure of Personnel: He feels that instability of tenure constitutes the cause
and effect of bad management. Time is required for an employee to succeed in his new
work assuming he possesses these requisite qualities. He opines that often "a mediocre
manager who stays is infinitely preferable to outstanding managers who merely come and
go."
13. Initiative: He stresses the need to encourage and develop to the fullest extent initiative or
the "power of thinking out and executing". He advocates that the manager should even
"sacrifice some personal vanity" to provide this satisfaction to his subordinates.
14. Esprit de Corps: As "union is strength", harmony and union among the personnel
constitute the great strength of a concern. The dangers to be avoided are a misguided
interpretation of the motto "divide and rule" and misunderstandings caused through poor
communication.
Functions of Management
The basic aim of managing is to achieve certain objectives and goals. The manager must be sure of
the objectives he is willing to attain. The desired goals is attained by performing certain
fundamental management functions which are as follows1.
2.
3.
4.
5.
6.
7.
8.
Forecasting
Planning
Organising
Staffing
Directing
Coordinating
Controlling
Decision making
Forecasting- It involves estimation of the future work, as production, purchase, sales, etc. It begins
with sales forecasting and is followed by finance, purchase, production, profit, loss etc.
Planning- It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement of predetermined goals. According to KOONTZ, Planning is deciding in advance - what to do, when to
do & how to do. It bridges the gap from where we are & where we want to be. A plan is a future
course of actions. It is an exercise in problem solving & decision making. Planning is determination
of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways
& means for accomplishment of pre-determined goals. Planning is necessary to ensure proper
utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it
also helps in avoiding confusion, uncertainties, risks, wastages etc.
Organizing- It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational goals.
According to Henry Fayol, To organize a business is to provide it with everything useful or its
functioning i.e. raw material, tools, capital and personnels. To organize a business involves
determining & providing human and non-human resources to the organizational structure.
Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
Staffing- It is the function of manning the organization structure and keeping it manned. Staffing
has assumed greater importance in the recent years due to advancement of technology, increase in
size of business, complexity of human behavior etc. The main purpose of staffing is to put right
man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz
& ODonell, Managerial function of staffing involves manning the organization structure through
proper and effective selection, appraisal & development of personnel to fill the roles designed un
the structure. Staffing involves:
Manpower Planning (estimating man power in terms of searching, choose the person and
giving the right place).
Recruitment, Selection & Placement.
Training & Development.
Remuneration.
Performance Appraisal.
Promotions & Transfer.
Directing- It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise
which sets it in motion the action of people because planning, organizing and staffing are the mere
preparations for doing the work. Direction is that inert-personnel aspect of management which
deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement
of organizational goals. Direction has following elements:
Supervision
Motivation
Leadership
Communication
Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.
Communications- is the process of passing information, experience, opinion etc from one person
to another. It is a bridge of understanding.
Controlling- It implies measurement of accomplishment against the standards and correction of
deviation if any to ensure achievement of organizational goals. The purpose of controlling is to
ensure that everything occurs in conformities with the standards. An efficient system of control
helps to predict deviations before they actually occur. According to Theo Haimann, Controlling
is the process of checking whether or not proper progress is being made towards the objectives and
goals and acting if necessary, to correct any deviation. According to Koontz & ODonell
Controlling is the measurement & correction of performance activities of subordinates in order to
make sure that the enterprise objectives and plans desired to obtain them as being accomplished.
Therefore controlling has following steps:
Establishment of standard performance.
Measurement of actual performance.
Comparison of actual performance with the standards and finding out deviation if any.
Corrective action.
Coordinating- Organizations have different people and departments working together. Achieving
harmony among different people and departments to reach the company goals by proper
understanding, cooperation and plans is called Coordination.
Decision making- It involves choosing a course of action regarding some important matters. A
good manager should make sound and logic decisions, so as to carry out the activities smoothly.
Modern Management Techniques
The important modern management techniques constitute a part of scientific management. The
important techniques are:
1. Management by objectives
2. Management of change
3. Management by exception
4. Management of conflict
5. Budgeting
6. Cost accounting
7. PERT
8. CPM
STEPS IN ORGANIZING
While organizing, a manager differentiates and integrates the activities of his organization. By
differentiation is meant the process of departmentalization or segmentation of activities on the basis
of some homogeneity. Integration is the process of achieving unity of effort among various
departments, segments or subsystems.
Organization involves the following interrelated steps:
Consideration of objectives: The first step in organizing is to know the objectives of the
enterprise. Objectives determine resources and the various activities which need to be
performed and the type of organization which needs to be built for this purpose.
Objectives also serve as guidelines for the management and workers. They bring about
unity of direction in the organization.
Identification and grouping of activities: If the members of the group are to pool their
efforts effectively, there must be proper division of the major activities. Each job should
be properly classified and grouped. This will enable the people to know what is expected
of them as members of the group and will help in avoiding duplication of efforts. For
example, the total activities of an enterprise may be divided into major functions like
production, purchasing, marketing, finance etc., and such function is further subdivided
into various jobs. For example, in production department separate sections may be created
for research, industrial engineering etc. The jobs then can be classified and grouped to
ensure the effective implementation of other steps.
Assignment of duties: After classifying and grouping the activities into various jobs, they
should be allotted to the individuals for ensuring certainty of work performance. Each
individual should be given a specific job to do according to his ability and made
responsible for that.
Delegation of authority: Authority without responsibility is dangerous and responsibility
without authority is an empty vessel. Hence, corresponding to the responsibility authority
is delegated to the subordinates for enabling them to show work performance.
NATURE OF ORGANIZATION
The nature of organization can be highlighted by studying the following features:
Organization is always related to certain objectives: Whether it is organization of the
entire enterprise or part of it, organization is influenced by objectives. The operations are
divided; authority and responsibility are determined to achieve predetermined objectives.
ORGANIZATION STRUCTURE
An organization structure shows the authority and responsibility relationship between the
various positions of the organization by showing who reports to whom. It is a set of
planned relationships between groups of related functions and between physical factors
and personnel required for the achievement of organizational goal. The structure of an
organization is generally shown on the organization chart or a job task pyramid. It shows
the authority and responsibility relationship between various positions in the
organization. A good organization structure should not be static but dynamic. It should
be subject to change from time to time in the light of changes in the business environment.
PURPOSE OF ORGANIZATION
Organization means a form of human association for the attainment of common objectives. An
industrial organization denotes a type of associationship of persons in relationship to some
economic activities. Obviously, the better the organization the fuller would be the achievement of
common objectives. Similarly, a loose organization implies an unhappy and dangerous state of
affairs. Organization is essential for the following purposes:
To facilitate pattern of communication: Organization structure provide pattern of
communication and coordination. By grouping activities and people, structure facilitates
communication between people centered on their job activities. People who have joint
problem often need to share information to solve the problem.
To allocate authority and responsibility: Organization structure allocates authority and
responsibility. It specifies who is to direct whom and who is accountable for what results.
The structure helps the organization members to know what his role is and how it relates
to others role.
To locate decision centers: Organization structure determines the location of decision
making in the organization. For example, a departmental store may leave pricing decision
to the lower level manager while in oil refinery pricing decision is at top level.
To create proper balance: Organization structure creates the proper balance and
emphasis of activities. Those more critical to the enterprises success might be placed
higher in the organization. For example R&D in pharmaceutical company might be
singled out for reporting to the managing director. Activity of comparable importance
might be placed at the lower level.
To stimulate creativity: Sound organization stimulates independent, creative thinking
and initiative by providing well-defined areas of work with broad attitude of the
development of new and improved ways of doing things.
To encourage growth: The organization structure provide framework within which an
enterprise functions. If the organization structure is flexible, it will help in meeting
challenges and creating opportunities for growth.
To make use of technological improvements: A sound organization structure which is
adoptable to changes can make the best possible use of latest technology. It can modify
the existing pattern of authority-responsibility relationships in the wake of technological
improvements.
PRINCIPLES OF ORGANIZATION
In order to facilitate the achievement of objectives, management thinkers have laid down certain
principles of organization. The principles are guidelines for planning organization structure.
Therefore, thorough understanding of the principles of organization is essential for good
organization. The principles of organization are discussed below:
Objectives: The objectives of the enterprise influence the organization structure. Every
part of the organization and organization as a whole should be geared to the basic
objective determined by the enterprise.
Specialization: Effective organization must promote specialization. The activities of the
enterprise should be divided according to functions and assigned to persons according to
their specialization.
Span of control: A manager can directly supervise only a limited number of executives.
Hence, it is necessary to have a proper number of subordinates answerable to a manager.
A maximum of six may be prescribed for this purpose.
Exception: This principle requires that organization structure should be so designed that
managers are required to go through the exceptional matters only. All the routine
decisions should be taken by subordinates, where as problems involving unusual matters
and policy decision should be referred to higher levels.
Scalar principle: This is also known as chain of command. There must be clear lines of
authority running from the top to the bottom. Authority is the right to decide, direct and
coordinate. Every subordinate must know who his superior is and to whom policy matters
beyond his own authority must be referred for decision.
Unity of command: Each subordinate should have only one supervisor whose command
he has to obey. Dual subordination must be avoided, for it causes uneasiness, disorder,
and indiscipline and undermine of authority.
Delegation: Proper authority should be delegated at the lower levels of the organization
also. The authority delegated must be equal to responsibility i.e., the manager should have
enough authority to accomplish the task assigned to him.
Responsibility: A superior should be held responsible for the acts of his subordinates. No
superior should be allowed to avoid responsibility by delegating authority to his
subordinates.
Authority: The authority is the tool by which a manager is able to accomplish the desired
objective. Hence, the authority of each manager must be clearly defined. The authority
and responsibility must be co-extensive in the organi-zation.
Efficiency: The organization should be able to attain the mission and objectives at the
minimum cost.
Simplicity: The organization structure should be as simple as possible with minimum
number of levels. A large number of levels of organization means difficulty of effective
communication and coordination.
Flexibility: The organization should be flexible, should be adaptable to changing
circumstances. It should permit expansion and replacement without dislocation and
disruption of the basic design. A sound organization must avoid complicated procedures,
red-tape and excessive complication of control so that it may adapt itself easily and
economically to business and technical changes.
Balance: There should be reasonable balance in the size of various depart-ments,
between centralization and decentralization. There must be balance in the formal structure
as regards to factors having conflicting claims.
Unity of direction: There must be one objective and one plan for a group of activities
having the same objective. Unity of direction facilitates unification and coordination of
activities at various levels.
Personal abilities: As organization is a formal group of people there is need for proper
selection, placement and training. Organization structure must ensure optimum use of
human resources.
DEPARTMENTATION
The horizontal differentiation of tasks or activities into discrete segments is called as
departmentalization or departmentation. Departmentation involves grouping of operating tasks into
jobs, combining of jobs into effective work group and combining of groups into divisions often
termed as departments. The aim is to take advantages of division of labour and specialization up
to a certain limit. There are several ways of Departmentation, each of which is suitable for particular
corporate sizes, strategies and purposes. The important methods of grouping activities may be
summarized as below:
Departmentation by functions: This is the simplest and most commonly used base for
Departmentation. Each major function of the enterprise is grouped into a department. For example
there may be production, finance, marketing and personnel department in an organization as shown
in fig.3.1. All functions related to production are grouped together to form production department,
similarly other departments are formed on the basis of function.
Board of Directors
Managing Director
Production
Manager
Marketing Manager
Finance Manager
Personnel Manager
Chief Executives
Production
Manager
Marketing Manager
Product A
Product B
Finance Manager
Personnel Manager
Product C
Sales Manager
Manager Northern
Region
Manager Eastern
Region
Manager Southern
Region
Manager Western
Region
Unity of control.
Clear division of authority and responsibility.
Discipline and better coordination
Direct communication.
Disadvantages
The organization is rigid and inflexible
Being an autocratic system, managers may become dictators and not leaders.
There is scope of favor-ism and nepotism.
Red-tape and bureaucracy.
Lack of specialization.
General Manager
GENERAL MANAGER
Production Manager
Finance Manager
Marketing Manager
Superintendent
Asst.
Manager
Foreman
Accountant
Sales Supervisor
Workers
Clerks
Salesman
Marketing
Functional Organization
The line organization does not provide specialists in the structure. Many jobs require specialized
knowledge to perform them. In functional organization the specialists are made available in the top
positions throughout the enterprise. It confers upon the holder of a functional position, a limited
power of command over the people of various departments concerning their function. Functional
authority remains confined to functional guidance of different department.
Under functional organization, various activities of the enterprise are classified according to certain
functions like production, marketing, finance, personnel etc., and are put under the charge of
functional specialists as show in fig.3.5. A functional incharge directs the subordinates throughout
the organization in his particular area of business operation. That means that subordinates receives
orders and instructions not from one superior but from several functional specialists.
GENERAL MANAGER
Production
Director
Finance
Director
General Manager
Division X
Marketing
Director
General Manager
Division Y
Line Authority
Functional Authority
Fig. 3.5: Functional organization
The advantages of functional organization
Specialization.
Reduces the burden on the top executives.
Personal
Director
General Manager
Division Z
BOARD OF DIRECTORS
Executive Committee
Managing
Director
(Staff)
Manager
Division A
Controller of Finance
(Staff)
Manager
Division B
Fig. 3.6: Line and staff organization
Manager
Division C
Advantages
Specialized knowledge
Unity of command
Disadvantages
Difference between orientations of line and staff. Line executives deals with in problem
in a more practical manner while staff, tend to be more theoretical.
Committee Organization
A committee is a body of persons appointed or elected to meet on an organized basis for the
consideration of matters brought before it. A committee is a group of persons performing a group
task with the object of solving certain problems. The area of operation of a committee is
determined by its constitution. A committee may formulate plans, review the performance of
certain units or may only have the power to make recommendation. Committees help in taking
corrective decision, coordinating the affairs of different departments and meeting communication
requirements in the organization. Committees can be broadly classified into advisory committees
and executive committees. Advisory committees have only a recommenders role and cannot
enforce imple-mentation of their advice or recommendation. The examples of advisory committees
are works committees, finance committees etc., Whenever committees are vested with line
authority, they are called as executive committees. Unlike advisory committee, executive
committees not only take decisions but also enforce decisions and thus perform a double role of
taking decision and ordering its executive. The board of directors of a company is an example of
an executive committee.
Advantages of Committees
Committees provide a forum for the pooling of knowledge and experience of many
persons of different skills, ages and backgrounds.
Committees are excellent means of transmitting information and ideas both upward and
downward.
Committees are impersonal in action and hence their decisions are generally unbiased
and are based on facts.
When departmental heads are members of committee, people get an opportunity to
understand each others problems and hence improve coordination.
Weaknesses of Committees
In case a wrong decision is taken by committee, no one is held responsible which may
results in irresponsibility among members.
Committees delay action
Committees are expensive form of organization.
Decisions are generally arrived at on the basis of compromise and hence they are not best
decision.
As committee consists of large number of persons, it is difficult to maintain secrecy
1
SETTING
OBJECTIVES
2
4
DEVELOPING
APPRAISING
ACTION PLANS
ANNUAL
PERFORMANCE
3
CONDUCTING
PERIODIC
REVIEWS
Fig MBO
DEFINITIONS OF MBO : Each and Every employee of an organisation works whole heartedly
towards the attainment of the objectives of an organisation is known as Management by objectives: Peter F. Drucker.
John Humble calls it a dynamic System which integrates the company need to achieve its goal for
profit and growth with managers need to contribute and develop himself.
EMPLOYEES
=
OBJECTIVE
OBJECTIVES
MBE
Fig
MBO
& MBE
MANAGER
INTERFERER ONLYWHEN
THERE IS A MISTAKE
ADVANTAGES OF MBO
The superior and his subordinate may have to meet several times for the sake of
setting the objectives mutually.
Periodic review of the subordinates performance involves lot of time and also paper
work.
It allows the manager to devote more time for important issues by letting the
subordinates deal with the issues of a routine nature.
Since the manager devotes more time for vital issues, he will be able to make better decisions.
The subordinates are given authority to make decisions on certain matters without any
interference by the executives.
The management is also able to utilize the available talent at the lower levels.
LIMITATIONS OF MBE
Only an organisation that has a perfect system of control will be able to employ the
technique of MBE.
individual and every organization. Moreover, all of the components of the program planning sequence
discussed in this manual are administered within the setting of an organization, a committee or board,
or some type of team. As more and more work gets accomplished through teams, it becomes
increasingly important to learn how to translate organizational concepts to the small group environment.
The team approach is often being used to accomplish short-term projects, such as planning programs,
conducting a needs assessment, or developing a new curriculum. A teams capacity to create a shared
vision for the task at hand and work together in the midst of a turbulent environment underlies its ability
to be effective. Organizational change and development is a fitting summary chapter for this judicial
educators manual since it deals with both effecting change (underlying much of education) and
managing change.
Chapter 3 Industrial
Ownership
Single ownership
Partnership
Joint Stock Companies
Cooperative Organization
State and Central Government Organization
Single Ownership
In this type a single person will have the possession of the assets. He will have the right to
formulate his own policies for the growth of company; he will enjoy all profits or bear losses, if any.
A single ownership works well when the concern is small, investment is around rupees 10 lakhs,
and controllable by a single person. Examples of this type of ownership are painting press, rice mills,
small fabrication and general workshops, ancillary units etc.
Advantages
1.
2.
3.
4.
5.
6.
Disadvantages
1.
2.
3.
4.
5.
6.
PARTNERSHIP
If in company the number of owners is more than two and less than two such a ownership is
called partnership. Here all partners discuss together take decision on a company matters. The
investments may be up to few crore of rupees, depending on the size and machineries. All partners share
the profit equally.
Types of Partners
Active partners those partners invest and take part in management activities.
Sleeping partners those partners invest but do not take part in management activities.
Advantages
1.
2.
3.
4.
5.
Disadvantages
1.
2.
3.
4.
5.
Disadvantages
1.
2.
3.
4.
5.
Cooperative societies
These are formed with a view to help the public in their daily requirements. It provides facilities
to its members I,e. shareholders without profit. Its aim is to serve at rates less than those of the market.
Members can seek financial helps at cheaper interests, goods and services at minimum profit.
In this, shareholders elect a Board of Directors, and officials are elected or recruited. Each
member has one vote, due to which power concentration in few persons is not possible.
Advantages
1.
2.
3.
4.
Disadvantages
1.
2.
3.
4.
Since it is not profit oriented, members may not work with interest.
Members in top position try to take advantage.
Conflicts may exist to enjoy powers.
Limited only to small and medium organizations.
4. Management is responsible for the government and hence, runs a careful administration.
5. Employees, get maximum benefits.
6. Help for the national progress.
Disadvantages
1. Generally labour problem arises because of more numbers of workers.
2. Workers may not obey orders as they are supported by their trade unions and their jobs are
more secured.
3. More possibilities for corruption and favourism at higher levels.
4. Organization may go into losses as the number of employees is more and more facilities are
provided at company costs.
5. Incompetent and non intelligent persons may occupy, higher levels because of certain policies.
Methods of raising capital
Following are the various methods of raising capitals to start an industry.
1.
2.
3.
4.
5.
6.
Partnership
Loans
Hire purchase
Share capital
Corporate bonds
Public deposits.
Partnership
Capital can be raised from some lakhs to a few crores for starting small and medium scale
industries by partnership.
Since each partner is capable of investing some lakhs, the total capital would fulfill the
requirement of the investment. Private limited company raises capital by this method.
Loans
Nowadays the best way to raise capital is by loans. The amount may be some lakhs to a few crore of
rupees. In these days, due to liberal government policies to promote Industrial Developments small
scale industries get the benefits like low interest rate subsidy etc.
Hire Purchase
In this method, instead of raising capital for starting an industry, the necessary machineries,
raw materials can be purchased on hire. The hirer has to pay the money towards machineries in number
of installments. After complete payment of the costs, plus interest charged, the hirer owns that property.
Shares
This method is suitable when huge capital of some crores is to be raised for large scale organizations
The different types of shares are
Preference share: irrespective of the amount of profit these shares are first paid the dividend if the
company goes into losses, preference share holder can exert powers and take over control from ordinary
share holder.
Ordinary share: but the dividend is declared only after declaring to the preferential shares. These shares
may not receive any dividend if the company makes no profit.
Deferred share: they receive dividend only after paying to preferences share and ordinary shares. At the
end the profit remained is shared by these share holders.
Corporate bonds
Corporate bonds or debentures
a. Debentures
b. Secured bonds
Debentures: debentures are a certificate issued by the corporation. They receive a fixed rate of interest
and repaired after stated number of years. The debentures holders have no rights in management
Debentures are unsecured bonds and have no claim on company assets I cases of losses.
Secured bonds: unlike debenture-holder, a secured bond holder claim on the assets of the organization
in the event of losses and he does not get any returns. Therefore, secured bonds and can be easily to
public, compared to debentures.
Public deposits
In this method of raising capital company accepts fixed deposits from the public, for various periods,
generally half a year to three year. They pay higher interests for the deposits of longer periods, and
lower interests for shorter periods.
Chapter 4
Personnel Management
Personnel Management
Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is a
significant part of management concerned with employees at work and with their relationship within
the organization.
According to Flippo, Personnel management is the planning, organizing, compensation, integration
and maintenance of people for the purpose of contributing to organizational, individual and societal
goals. According to Brech, Personnel Management is that part which is primarily concerned with
human resource of organization.
Manpower Planning which is also called as Human Resource Planning consists of putting right
number of people, right kind of people at the right place, right time, doing the right things for which
they are suited for the achievement of goals of the organization. Human Resource Planning has got an
important place in the arena of industrialization. Human Resource Planning has to be a systems
approach and is carried out in a set procedure.
The procedure is as follows:
1. Analyzing the current manpower inventory 3
2. Making future manpower forecasts
3. Developing employment programmes
4. Design training programmes
Type of organization
Number of departments
Number and quantity of such departments
Employees in these work units
Once these factors are registered by a manager, he goes for the future forecasting.
2. Making future manpower forecasts- Once the factors affecting the future manpower forecasts are
known, planning can be done for the future manpower requirements in several work units.
The Manpower forecasting techniques commonly employed by the organizations are as follows:
i. Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique.
ii. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends),
indexation (using base year as basis), and statistical analysis (central tendency measure).
iii. Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or
in a division.
iv. Work Force Analysis: Whenever production and time period has to be analyzed, due allowances
have to be made for getting net manpower requirements.
v. Other methods: Several Mathematical models, with the aid of computers are used to forecast
manpower needs, like budget and planning analysis, regression, new venture analysis.
3. Developing employment programmes- Once the current inventory is compared with future
forecasts, the employment programmes can be framed and developed accordingly, which will include
recruitment, selection procedures and placement plans.
4. Design training programmes- These will be based upon extent of diversification, expansion plans,
development programmes, etc. Training programmes depend upon the extent of improvement in
technology and advancement to take place. It is also done to improve upon the skills, capabilities,
knowledge of the workers.
Recruitment:
1. Internal Recruitment is a recruitment which takes place within the concern or organization.
Internal sources of recruitment are readily available to an organization. Internal sources are primarily
three Transfers, promotions and Re-employment of ex-employees. Re-employment of ex-employees
is one of the internal sources of recruitment in which employees can be invited and appointed to fill
vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.
Internal recruitment may lead to increase in employees productivity as their motivation level increases.
It also saves time, money and efforts. But a drawback of internal recruitment is that it refrains the
organization from new blood. Also, not all the manpower requirements can be met through internal
recruitment. Hiring from outside has to be done.
Internal sources are primarily 3
a. Transfers
b. Promotions (through Internal Job Postings) and
c. Re-employment of ex-employees - Re-employment of ex-employees is one of the internal sources
of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There
are situations when ex-employees provide unsolicited applications also.
2. External Recruitment External sources of recruitment have to be solicited from outside the
organization. External sources are external to a concern. But it involves lot of time and money .The
external sources of recruitment include Employment at factory gate, advertisements, employment
exchanges, employment agencies, educational institutes, labour contractors, recommendations etc.
a. Employment at Factory Level This a source of external recruitment in which the applications for
vacancies are presented on bulletin boards outside the Factory or at the Gate. This kind of recruitment
is applicable generally where factory workers are to be appointed. There are people who keep on
soliciting jobs from one place to another. These applicants are called as unsolicited applicants. These
types of workers apply on their own for their job. For this kind of recruitment workers have a tendency
to shift from one factory to another and therefore they are called as badli workers.
b. Advertisement It is an external source which has got an important place in recruitment procedure.
The biggest advantage of advertisement is that it covers a wide area of market and scattered applicants
can get information from advertisements. Medium used is Newspapers and Television.
c. Employment Exchanges There are certain Employment exchanges which are run by government.
Most of the government undertakings and concerns employ people through such exchanges. Now-adays recruitment in government agencies has become compulsory through employment exchange.
d. Employment Agencies There are certain professional organizations which look towards
recruitment and employment of people, i.e. these private agencies run by private individuals supply
required manpower to needy concerns.
e. Educational Institutions There are certain professional Institutions which serve as an external
source for recruiting fresh graduates from these institutes. This kind of recruitment done through such
educational institutions is called as Campus Recruitment. They have special recruitment cells which
help in providing jobs to fresh candidates.
f. Recommendations There are certain people who have experience in a particular area. They enjoy
goodwill and a stand in the company. There are certain vacancies which are filled by recommendations
of such people. The biggest drawback of this source is that the company has to rely totally on such
people which can later on prove to be inefficient.
g. Labour Contractors These are the specialist people who supply manpower to the Factory or
Manufacturing plants. Through these contractors, workers are appointed on contract basis, i.e. for a
particular time period. Under conditions when these contractors leave the organization, such people
who are appointed have to also leave the concern.
Selection:
The Employee selection Process takes place in following order1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum
eligibility criteria laid down by the organization. The skills, academic and family background,
competencies and interests of the candidate are examined during preliminary interview. Preliminary
interviews are less formalized and planned than the final interviews. The candidates are given a brief
up about the company and the job profile; and it is also examined how much the candidate knows about
the company. Preliminary interviews are also called screening interviews.
2. Application blanks- The candidates who clear the preliminary interview are required to fill
application blank. It contains data record of the candidates such as details about age, qualifications,
reason for leaving previous job, experience, etc.
3. Written Tests- Various written tests conducted during selection procedure are aptitude test,
intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the
potential candidate. They should not be biased.
4. Employment Interviews- It is a one to one interaction between the interviewer and the potential
candidate. It is used to find whether the candidate is best suited for the required job or not. But such
interviews consume time and money both. Moreover the competencies of the candidate cannot be
judged. Such interviews may be biased at times. Such interviews should be conducted properly. No
distractions should be there in room. There should be an honest communication between candidate and
interviewer.
5. Medical examination- Medical tests are conducted to ensure physical fitness of the potential
employee. It will decrease chances of employee absenteeism.
6. Appointment Letter- A reference check is made about the candidate selected and then finally he is
appointed by giving a formal appointment letter.
Training:
Training is generally imparted in two ways:
1. On the job training- On the job training methods are those which are given to the employees within
the everyday working of a concern. It is a simple and cost-effective training method. The in-proficient
as well as semi- proficient employees can be well trained by using such training method. The employees
are trained in actual working scenario. The motto of such training is learning by doing. Instances of
such on-job training methods are job-rotation, coaching, temporary promotions, etc.
2. Off the job training- Off the job training methods are those in which training is provided away from
the actual working condition. It is generally used in case of new employees. Instances of off the job
training methods are workshops, seminars, conferences, etc. Such method is costly and is effective if
and only if large number of employees have to be trained within a short time period. Off the job training
is also called as vestibule training, i.e., the employees are trained in a separate area (may be a hall,
entrance, reception area, etc. known as a vestibule) where the actual working conditions are duplicated.
WAGES AND SALARY ADMINISTRATION
Indian Labour Organization (ILO) defined the term wage as the remuneration paid by the employer
for the services of hourly, daily, weekly and fortnightly employees.
Salary is defined as the remuneration paid to the clerical and managerial personnel employed on
monthly or annual basis.
Minimum Wage is the amount of remuneration which could meet the normal needs of the
average employee regarded as a human being living in a civilised society
Statutory Minimum Wage is the amount of remuneration fixed according to the provisions of the
Minimum Wages Act. 1948
This is also a major and important function of personnel management. People always work with a
motive of earning money. Wage may be defined as the remuneration (payment) given to an employee
towards the work performed by him in achieving company objectives. Wages include both financial
and non-financial benefits. Non-financial wages may be called as Fringe benefits.
Fair Wages is one paid to a worker which is sufficient to provide him the basic necessities of life.
Thus fair wage is paid to all employees irrespective of their efficiency and work.
Indusrial Psychology
Industrial psychology is concerned with people's work-related values, attitudes and behaviours, and
how these are influenced by the conditions in which they work. The term 'Industrial Psychology' is a
combination of two words 'Industrial' and 'Psychology'. Industrial is that part of social life whose
function is to provide civilized man with the material goals that his condition of life demand.
Psychology is the science of behaviour in relation to environment.
Thus industrial psychology is the systematic study of the behaviour of the people at work. It studies
how the social, industrial economic, political and other factors affect the behaviour of the people at
work.
According to C.S. Myres, The aim of industrial psychology is primarily not to obtain greater
production or output but to give the worker greater ease at his work.
According to Thomas W. Harrell, Industrial psychology may be defined as the study of people as
individuals and in groups and of the relationship between individual and group.
HUMAN RELATIONS
The human relations movement started as a reaction against the impersonal and mechanical behaviour
of bureaucracy and the scientific management. Money, machinery and equipment without competent
human resource are useless. To master key to productivity ultimately lies in the recognition of human
values in an industry. To a manager, human relation is the integration of people into a work situation
that motivates them to work together cooperatively, economically and with psychological satisfaction.
MOTIVATION
A simple definition of motivation is the ability to change behaviour. It is a drive that compels one to act
because human behaviour is directed toward some goal. Motivation is intrinsic (internal); it comes from
within based on personal interests, desires, and need for fulfilment. However, extrinsic (external) factors
such as rewards, praise, and promotions also influence motivation. Motivation is the need or desire that
causes a person to act; to have initiative, spirit or be enterprising.
Motivation has been defined as: the psychological process that gives behaviour purpose and direction.
A predisposition to behave in a purposive manner to achieve specific, unmet needs. An internal drive
to satisfy an unsatisfied need.
Motivation is operationally defined as the inner force that drives individuals to accomplish personal
and organizational goals.
The processes that account for an individual's intensity, direction and persistence of effort towards
attaining a goal.
MOTIVATION THEORIES
Physiological: These are basic physical comfort or bodily needs: food, drink and sleep.
Security/safety: People want to feel safe, secure, and free from fear.
Belongingness and love: This is a need for friends, family, and intimacyfor social acceptance and
affection from one's peers.
Esteem: People want the esteem of others and they want to be regarded as useful, competent, and
important.
Self-actualization: This highest motivation level involves people striving to actualize their full
potential, to become more of what they are capable of being.
MOTIVATION-HYGIENE THEORY
Frederick Herzberg, a professor of psychology at Case Western Reserve University, studied the
attitudes of workers toward their jobs. Herzberg proposed that an individual will be moved to action
based on the desire to avoid deprivation. However, this motivation does not provide positive satisfaction
because it does not provide a sense of growth. Herzberg's research found that positive job attitudes were
associated with a feeling of psychological growth. He thought that people work for two reasons: for
financial reasons to avoid physical deprivation and for achievement because of the happiness and
meaning it provides. Herzberg also identified the concept of job enrichment, whereby the
responsibilities of a job are changed to provide greater growth and challenge (1985). His motivationhygiene theory includes two types of factors:
Motivation is based on the positive satisfaction that psychological growth provides. The presence of
factors such as responsibility achievement, recognition, and possibility for growth or advancement will
motivate and satisfy people.
Hygiene is based on an individual's desire to avoid deprivation and the resulting physical and emotional
discomfort. Hygiene factors include willingness to supervise; positive working conditions;
interpersonal relations with peers, subordinates, and superiors; status; job security; and salary.
Douglas McGregor, a professor at the Massachusetts Institute of Technology and a social psychologist,
was greatly influenced by the work of Maslow. McGregor recognized that people have needs and that
those needs are satisfied at work. He described two sets of assumptions about people that he labelled
Theory X and Theory Y:
1) The assumptions of Theory X are that most people will avoid work because they don't like
it and must be threatened or persuaded to put forth adequate effort. People have little
ambition and don't want responsibility. They want to be directed and are most interested in
job security.
2) The assumptions of Theory Y are that work is very natural to people and that most people
are self-directed to achieve objectives to which they are committed. People are ambitious
and creative. They desire responsibility and derive a sense of satisfaction from the work
itself.
EXPECTANCY THEORY
Victor Vroom developed the expectancy theory, which suggests that individuals' expectations about
their ability to accomplish something will affect their success in accomplishing it. Therefore, this theory
is based on cognitionon thought processes that individuals use.
The expectancy theory is based on an individual's effort and performance, as well as the desirability of
outcomes associated with high performance. The value of or preference for a particular outcome is
called valence. To determine valence, people will ask themselves whether or not they can accomplish
a goal, how important is the goal to them (in the immediate as well as the long term), and what course
of action will provide the greatest reward. An individual's expectation of actually achieving the outcome
is crucial to success, and many factors influence this.
Create a positive environmentPromote a workplace atmosphere that makes all workers' feel
worthwhile and important. Don't play favourites with your staff. Keep office doors open and
let folks know they can always approach you with questions or concerns. A happy workplace
is a productive workplace.
Put people on the right pathMost workers' are looking for advancement opportunities within
their own factory. Work with each of them to develop a career growth plan that takes into
consideration both their current skills and future goals. If workers' become excited about what's
down the road, they will become more engaged in their present work.
Educate the massesHelp workers' to improve their skills by providing on-the-job training or
in-house career development. Allow them to attend workshops and seminars related to the
industry. Encourage them to attend adult education classes paid for by the company. Workers'
will feel you are investing in them, and this will translate into an improved job performance.
Provide incentivesOffer people incentives to perform well, either with something small like
a gift certificate or something more substantial such as a performance-based bonus or salary
increase. Give out "Employee of the Month" awards. Such tokens of appreciation will go far in
motivating employees.
Honour your promisesGetting people to give their all requires following through on
promises. If you tell an employee that he or she will be considered for a bonus if numbers
improve or productivity increases, you'd better put your money where your mouth is. Failure
to follow through on promises will result in a loss of trust not only that person's trust, but the
trust of every employee that hears the story.
Provide career coachingHelp workers' reach the next level professionally by providing onsite coaching. Bring in professionals to provide oneon- one counselling, which can help people
learn how to overcome personal or professional obstacles on their career paths.
GROUP DYNAMICS
Group exists in every organization and they affect the behaviour of their members. They not only affect
the behaviour of individuals but also influence the work performed by them which ultimately affect the
organization. Such groups are created by the organization as well as by organization members for their
own satisfaction.
A group is defined as two or more individuals, interacting and mutually dependent on each other, who
have come together to achieve particular objectives or group are consisting two or more person who
are interacting with one another in such a way that each person influence and influenced by each others.
In simple words, group means two or more individual who share common values, norms and interest.
Dynamics comes from the Greek word meaning 'force'. Hence group dynamics refers to the study of
force operating within groups. Group dynamics is concerned with the interaction and forces between
group members in social situations.
Group dynamics refers to the interactive nature of individuals within the contexts of a group. These
interactions between individuals within the group are distinctly different than in one-on-one
interactions. Group dynamics also refers to the study of the nature of groups.
GROUP FORMATION
Formal and Informal GroupsFormal groups are governed by prescribed rules and regulations of
concern organization. They are created and maintained to fulfil specific needs or task of the
organization. These groups are permanent like top management team, work units in different
departments of the organization or temporary like they made for some specific task to perform and
when such task are completed they disappear. Five members making up a counselling team are the
example of formal group.
Informal groups created on the basis of voluntary and spontaneous requirements. They give their
member a sense of social satisfaction. These groups are generally small in size, having indefinite
structure, communications flow in all direction especially horizontal, authority is given by the group
members, group member's behaviour are regulated by their own norms, values and beliefs. Three
members of different department having lunch with each other are the example of informal group.
Task and Command GroupTask group consist of those members who are from either same or
different department come and contact with each other for completing a particular task or job. They are
basically temporary in nature when that task is accomplished they get back to their departments and
position. A task group is usually formed to solve the problem or perform an activity that involves a
number of organizational units. Like problem of absenteeism is increases day by day and for solving
that problem management create a task group consisting of members (supervisor, manager, counsellor)
who are going to check the problem and give suggestion also about how this problem will be overcome.
Command group consist of those individuals who report directly to their superior or manager. It is
determined by the organization chart.
Primary and Secondary GroupPrimary Groups consist of those members who have intimate faceto-face association and co-operations. They are usually small in size and it is based on intimate
relationship. Like family, friendship groups (those brought together because they share one/more
common characteristics) or neighbourhood groups. The members of the secondary groups have not
interest in the problem and pleasure of others. It is more formal, general and isolated. There is no
continues interaction, intimacy, co-operation and association as primary group have.
WORKING OF GROUPS
For the proper functioning of the group there should be two types of specialists i each group. One of
them is the ideal man who becomes the task specialist and the other is human relation specialist. It has
been observed that groups separate more effectively with such specialists as leaders. It can be enhanced
by vesting status to the leaders. Status may be given by organization through titles and facilities or
informally acquired by training, experience and other personal qualities.
FEATURES OF GROUP
(i)
To form a group there should be at least two or more individuals involved. There is no
maximum limit of the group but if group are being so large than communication becomes
little bit difficult. Some time rules and regulations of the organization play an important
role in formal group formation and meaningful interaction among the members in the case
of informal group.
(ii)
Interaction is one of the main features of group. All the group members must be interact
either by face to face communication or by using some mechanical devices like writing,
telephone, internet, etc. It is not compulsion that all the members of the group to interact
each other simultaneously, but each member must interact at least occasionally with one or
more members of the group.
(iii)
Developing Leadership. The purpose of any group is all the members of the group must be
know each other and to complete some objective. For this reason they collectively choose
a leader among themselves and granted authority by members to make decisions, take
action and other activity which will be related to group. The criteria of selection of leader
based upon their performance and some time particular situation also help in to designate
leader.
(iv)
All the members of the group have some collective identity and they all are aware about
their membership. They must have the feeling that he or she is the part of the group.
(v)
Group Norms are rules or guidelines of accepted behaviour which are established by a
group and used to monitor the behaviour of its members. Informal group establish their
own group norm with taking consideration of each members concern. In very structured
formalized group these norms become law or operation laws. And each member should
behave according to those particular laws.
(vi)
Group Cohesiveness is a degree to which group members are attached to each others and
are motivated to reside in the group. It shows the extent of liking of each member towards
others.
(vii)
HAWTHORNE STUDIES
The Hawthorne plant of the General Electric Company, Chicago, faces the problem of workers'
dissatisfaction, although they provide material benefits to the workers' like pension schemes, sickness
benefits and other recreation facilities which resultant into loss of production. Now, it became necessary
a through investigation of the problem of low productivity and to find out the relationship between
production and various factors of efficiency.
To find out the relationship between productivity and working conditions a number of studies were
conducted by Professor Elton Mayo and his researcher team which was started in 1927. George Elton
Mayo (26 December 18807 September 1949) was an Australian psychologist, sociologist and
organization theorist. He lectured at the University of Queensland from 1919 to 1923 before moving to
the University of Pennsylvania, but spent most of his career at Harvard Business School (19261947),
where he was professor of industrial research.
It was now clear that factory is a social system and informal group in plant equally affect human
behaviour as formal group.
A worker is not merely an economic man who is motivated only by the monetary benefits.
Non-monetary incentives are sometime more 14 Industrial Psychology important in
influencing workers' attitude to their work.
There is a possibility of conflict between company and informal group. It may be because of
incompatible objectives of the both.
Sometime, informal leaders were more important and impressive than formal in directing group
behaviour because he identifies group.
Behavioural scientists believe that in this series of experiment whatever the conclusion were
drawn it lack scientific objectivity.
Some feels that there was bias and preconception on the part of the Harvard researcher.
The study has ignored the existence of trade unions. Apart from these criticism the Hawthorne
studies comes with the outcome of human relation is an important part of company. And it drew
attention to the social needs as an additional source of motivation.
COMMUNICATION
Well, communication has been defined as the act of giving, receiving or exchanging information, ideas
and opinions so that the, message is completely understood by both parties. Look at Figure 1.1 below.
The illustration shows clearly that in a communication process, there must be a sender who speaks or
sends a message, and a receiver who listens or receives the message.
The sender sends a message with a certain intention in mind. The receiver of the message tries to
understand and interpret the message sent. He then gives feedback to the original sender, who in turn
interprets the feedback. This process, repeated continuously, constitutes communication.
CHANNELS OF COMMUNICATION
1) Upward channels : In this flow of information from lower level to top level takes place. This
enables the management to evaluate the effectiveness with which its order have been carried
out, and thus to become basis for fresh order and directions. This also includes suggestions and
complaints from lower level.
2) Downward channels: In this, orders and informations flow from superior to subordinates.
Communications down this channel are generally directive and require actions to be initiated
by the subordinates.
3) Lateral or Diagonal channels : Sometimes communications among lower level people becomes
essential without consulting their superior. For example , communication among foreman who
come under different superior. This is called gang-plank approach.
4) The Grapevine (informal) communication : This is the informal communication channel which
spreads rumours and misleading information among workers. This can be corrected by
effective official communication.
ORAL COMMUNICATION
Oral communication is a process whereby information is transferred from a sender to receiver usually
by a verbal means which can be supported by visual aid. e.g. discussions, speeches, conversations,
questions/answers, through radio/TV/internet, telephone conversation/voice mails, VHF radios.
1. Asking questions
2. Listening skills
3. Providing feedback that has impact
4. Receiving feedback with grace and dignity
WRITTEN COMMUNICATION
Written communication is the sharing and exchanging of written symbols between individuals or
groups. It is also the presentation of ideas in a coherent manner in written form.
Letters
Faxes
Email
Reports
Memos and
Advertisements.
Successful written communication requires careful thought and planning. It should contain
comprehensive information about a specific subject and yet be clear, correct and easy to read.
A well-written piece of work requires yo u to pay attention to the following three stages in the writing
process:
Planning
Writing and
Editing.
INDUSTRIAL FATIGUE
Fatigue of workers is a complex phenomenon resulting from various factors in technically innovated
modern industries, and it appears as a feeling of exhaustion, lowering of physiological functions,
breakdown of autonomic nervous balance, and decrease in work efficiency. On the other hand industrial
fatigue is caused by excessive workload, remarkable alteration in working posture and diurnal and
nocturnal rhythms in daily life.
Fatigue can be a symptom of a medical problem, but more commonly it is a normal physiological
reaction to exertion, lack of sleep, boredom, changes to sleep-wake schedules, or stress. Fatigue, also
known as weariness, tiredness, exhaustion, or lethargy, is generally defined as a feeling of lack of
energy. Fatigue is not the same as drowsiness, but the desire to sleep may accompany fatigue. Apathy
is a feeling of indifference that may accompany fatigue or exist independently.
TYPES OF INDUSTRIAL FATIGUE
Fatigue can be both physiological and psychological.
Physiological fatigue is the inability to continue functioning at the level of ones normal
abilities. A person with physiological fatigue cannot lift as heavy a box or walk as far as he could if not
fatigued. Muscular fatigue resulting from prolonged physical work, are the example.
Psychological, on the other hand, rather manifests in sleepiness or slowness. A person with
psychological fatigue may fall asleep, may react very slowly, or may be inattentive. With micro sleeps,
the person may be unaware that he was asleep. Sensory (degradation of sensory perception) and
cognitive fatigue, or alertness, intellectual fatigue are the examples of psychological fatigue. Fatigue
also differentiated by acute and cumulative fatigue
Fatigue where you may still feel tired even after a nights sleep this comes under cumulative
fatigue.
FATIGUE SYMPTOMS
Some of the common fatigue symptoms are following:
Dizziness
Vertigo is the feeling that you or your environment is moving or spinning. It differs from
dizziness in that vertigo describes an illusion of movement. When you feel as if you yourself are
moving, its called subjective vertigo, and the perception that your surroundings are moving is called
objective vertigo.
Shortness of breath.
Long working hour also gives support to industrial fatigue. Long working hours can lead to
stress or mental ill health, decreased production, rate of accident also increases. The remedy for
avoiding fatigue is simple to regulate the laws regarding working hour.
When machine are designed only taking consideration of work not worker who perform the
task on that machine. Not stress on the comfort and ease to perform the task then it leads to a
problem like workers do unnecessary work and also it leads to extra expenditure of energy or
effort. This comes out in the form of fatigue. To remove unnecessary fatigue, machines should
be constructed (improving the design of machine) in such a way that workers would feel
comfortable while doing work. One of the best method to minimize fatigue from bad design
of machine by practicing time and motion study where wrong, unnecessary and useless
movements should be avoided and productivity automatically increases.
Inadequate rest periods also cause of industrial fatigue. Most of the studies suggest that
frequent short rest intervals look like to be more effective than a few longer ones. Too long rest
intervals may create disturbance and also workers loses the continuity of the work or gets out
of the mood for it. The solution for this problem is to introduce rest periods in between working
hours should be depending upon the nature of the work.
Physical and mental health also causes the fatigue in workplace. In the case of a physically
weak worker there is quick onset of fatigue compared to healthy worker. Emotional disturbance
in work place as well as outside the work place, lack of adjustment with surrounding, domestic
problem and many more may consume a lot of energy which cause fatigue as a result of mental
illness. Therefore, employer provides free medical facilities and also ensures that their workers
are aware about the health problems and remedy for the same. For overcome the mental illness
workers should be given proper counselling and guidance for a healthy and tension free mental
life.
Chapter 6
INDUSTRIAL RELATIONS
In simple terms Industrial Relations deals with the worker employee relation in
any industry Government has attempted to make Industrial Relations more health the by enacting
Industrial Disputes Act 1947. to solve the dispute and to reduce the regency of dispute. This in turn
improves the relations.
Sydney and Webb defined a trade union as A continuous association of wage earners
organized for purpose of maintaining and improving the conditions of the working people .In general
trade union or labour union is an association of employees formed tp promote, protect and improve the
social, economic and political interests of its member.
The origin and development of trade union movements, historical development of trade unions in India,
growth of employees and employers organizations, aims and objectives of trade unions, definition of
trade union and trade disputes, recognition of trade unions are discussed in this chapter.
Trade Unions play an important role in the settlement of industrial disputes. The trade unions of
employees and employers bargain collectively in solving the grievances of the industrial workers.
Before going to discuss the role of trade unions in the settlement of industrial disputes it is appropriate
to project the historical background for establishing the trade unions. Not only the workers associations,
but also employers associations are regarded as trade unions. The workers union or association as well
as employers union have to be registered their union under the Indian Trade Unions Act, 1926.
Therefore, under the existing law the expression Trade Union includes both employers and workers
organizations.
The 1881 Act proved highly inadequate and its provisions regarding protection to child labour and
absence of any regulation for women labour were highly disappointing. Consequently, another Factory
Commission was appointed in 1884. Mr. Lokhandey organised a Conference of Workers in Bombay
and drew up a Memorandum signed by some 5,300 workers to be presented to the Factory Commission.
This was the beginning of modern Trade Union Movement in India. The Memorandum submitted and
adopted at this meeting demanded a weekly rest, half an hour's recess, compensation for disablement,
payment of wages not later than 15th of the month following the one in which they were earned,
limitation on hours of work from 6.30 A.M. till sun-set.
The important Trade Union Organization which are shown below:
1) AllIndia Trade Union Congress (AITUC) 1920.
2) Indian National Trade Union Congress (INTUC) 1947
3) Hind Mazdoor Sabha (HMS) 1948
4) United Trade Union Congress (UTUC)
5) Bharatiya Mazdur Sangh (BMS)
6) Centre of Indian Trade Unions (CITU)
FUNCTIONS OF TRADE UNION
To emphasise the common interests of labourers and spread the feeling of brotherhood.
To fight for workers, regarding their wages, hours of work, holidays etc.
To help the workers to obtain the full value for their work as marginal net profits from the
employer and increasing productivity.
To maintain the conserves the advantages and privileges secured for the workers.
To increase the efficiency of labourers through public health campaigns, literary propaganda
and allied processes.
To provide educational recreational and other benefits from employer side for workers.
INDUSTRIAL DISPUTE :
As per section 2 (K) of industrial dispute or difference between employers and employees employers
and employers or employees and employees which is connected with the employment or non
employment or the terms of employment or with the condition of labour of any person.
There must be a dispute or difference the dispute or difference must be between employers and
employees employee and employees, employers and employers.
The dispute must be connected with employment or non employment or terms of employment or with
the conditions of labour of any person.
General causes of industrial disputes strains which results in bad industrial relations are.
1. Close mindedness of employers and employees one thinking to extract maximum work with
minimum remuneration, other thinking to avoid work and get more enhancement in pay and
wages.
2. Irrational wage, wage system and structure not mutually acceptable
3. Poor working environment, low presence of safety, hygiene conditions vitiated atmosphere for
smooth working
4. Poor human relations, and lack of dexterity on the part of management personnel
5. Lack of control over the situations erosion of discipline, which rebounds.
6. Introduction of new technology or automation mechanization, Computerization etc. without
proper consultations, preparations and discussion with workers and creating climate.
7. Nepotism, unequal work loads, disproportionate wage, and responsibilities.
8. Adoption of unfair labour practices either by employer or employees and unions.
9. Unjustifiable profit sharing, and not considering workers as a co-shares of the gains of the
industry.
10. Frequent union rivalries over membership foisting up of fake unions.
11. Strikes lock out, lay off, and resulting retrenchment due to high handedness on the part of the
concerned.
12. Throwing away the agreements and arrived settlements
13. Militancy of the unions]
14. Attitude of government and political parties who may indirectly control some the unions for
their own gains or to get a hold on the industry.
Few suggestions for the improvement of industrial relations and reduce disputes:
1. Trade unions should be strengthened democratically so that they can understand and toe with the
main stream of the national industrial activities. They can drop the some how survive attitude by
promising impossibles and consequent perpetual strain.
2. Employers should have more transparency in their dealings with workers to build confidence and
have progressive out look.
3. They should have open minded flexible collective Bargaining.
4. Workers should be allowed to participate in the management through forums, committees and
councils,
5. Sound labour policy, planning
6. Proper leadership and communication
7. Enforcement of discipline
8. Try to have union with in workers fold.
9. Equity in distribution of wealth by acknowledging workers as team members.
For a real grievance to have occurred there must have been a violation of an employee's rights on the
job. Also, it must have been the employer or one of his/her agents -- like a supervisor or manager -who has violated these rights, directly or indirectly. If an employee makes a compliant that doesn't
involve the employer in some way, you may still have to deal with it, but it won't be a grievance.
Most grievances are "real" in the sense that we are sure the employer has violated some-one's rights;
but this doesn't mean we will always win the case. We are limited by the contract, by our skills, or by
how much union power we have. So a grievance can turn out to be no more than an "alleged violation"
or even just a complaint.
It's your job as a steward to decide which rights have been violated and so determine whether a
grievance exists. Because most employees' rights are contained in the contract, this is the first place you
look to see if there is a real grievance against the management. If the grievance is a clear-cut violation
of the contract, it will be easy to prove provided you stick to your guns. If it involves an interpretation
of the contract, it will not be so easy to prove.
Light-hearted: Humour diminishes tension and brings about a congenial atmosphere during a grievance
handling session. Having a good sense of humour will be helpful to a GH.
Inclusive language: The GH should use inclusive language like we work together and our problem
to reassure the aggrieved employee. Making the grievance appear to be less of the individuals problem
helps the employee to be less defensive and more willing to speak up.
Placid: The GH should aim to be placid and unruffled throughout the meeting with or without the
presence or active involvement of the TUR. If the aggrieved employee becomes agitated, the GH should
remain placid, polite and professional.
WORK OF INTERNATIONAL LABOUR ORGANIZATION
The International Labour Organization emerged with the League of Nations from the Treaty of
Versailles in 1919. It was founded to give expression to the growing concern for social reform after
World War I, and the conviction that any reform had to be conducted at an international level.
In 1946, the ILO became the first specialized agency associated with the newly formed United Nations
Organization.The ILO has four principal strategic objectives:
To promote and realize standards, and fundamental principles and rights at work.
To create greater opportunities for women and men to secure decent employment.
To enhance the coverage and effectiveness of social protection for all.
To strengthen tripartism and social dialogue.
These objectives are realized in a number of ways:
1. Formulation of international policies and programmes to promotebasic human rights, improve
working and living conditions, and enhance employment opportunities.
2. Creation of international labour standards backed by a unique system to supervise their application
to serve as guidelines for national authorities in putting these policies into action.
3. An extensive programme of international technical cooperation, formulated and implemented in an
active partnership with constituents, to help countries in making these policies effective in practice.
4. Training, education, research, and publishing activities to help advance all of these efforts.
ILO has got its Central office at Geneva, with its branch offices in its member countries. Its governing
body includes representatives of concerned Governments, employers and employees. It arranges a
conference annuallu, to which four representatives of each member country(two from Govt, one from
employer and one from employees) participate in it.
In conference it discuss many international matters relating to social standards, labour welfare, income
and expenditure of the organization, and others. On the basis of this the member states formulate some
legislations favouring labour welfare activities
Social justice
Social welfare
National economy
International unity and solidarity
Social justice
It means establishment of equality in social relations. Usually there will be great
difference in economic conditions between employees and employers. So it is the principle of
social justice to equalize the status of workers with that of employers, through freedom of
association, collective bargaining and arbitration in case of an industrial conflict.
Social welfare
Conservation and development of physical and mental resources of employees
The amelioration of the moral and material conditions of workers
There are government laws according to which management should maintain healthy
atmosphere inside the factory. The state itself tries to improve the condition of the worker by
providing housing, health and recreation facilities
National economy: national economy has three fold concerns
Ensuring the normal growth of industry for the benefit of the nation as a whole
The provision for better working and living conditions
Adjustment of wage system with a view to increasing the purchase power of the
workers and creating a stable home market.
2)
3)
4)
5)
6)
7)
b) Accidents and diseases: the manager of the factory shall give notice of serious
accidents to the authorities concerned, which may inquire into the causes of
accidents. Similarly if any worker gets affected with some diseases, this shall
also be noticed and enquired.
8) Penalties and procedures
a. Penalty for obstructing inspector: any occupier or factory manager obstructing
an inspector to carry out his duties is punishable with imprisonment up to 6
months or fine of rs 10000 or both.
THE PAYMENT OF WAGES ACT, 1936
Objectives
It has been experienced that workers have often to suffer from withholding or delays in
payment of wages and the deductions from their wages in the form of fines etc. in-order to
check such malpractices the government of India has passes the Act.
This act applies to factories employing more than 10 workers and registered under the factory
act, 1948 and also to persons employed in the railways. However, the act applies in all the
above cases only to the payment of wages to persons receiving less than rs 1000 per month.
Important definitions
1) Factory: a place where in ten or more persons are working and in which a manufacturing
activity is going on using electricity etc.
2) Industrial establishment: any concern like
a) A motor transport service carrying passengers or goods.
b) Air and water transport services
c) Mine or oil field
d) Workshops.
3) Wages: wages include the total remunerations payable to an employee in respect of his
employees in respect of his employment. it includes over time remunerations bonus
etc.
Payment of wages
An employer shall be responsible for the payment of wages to all his employees, every
month. If the number of employees is less than 1000, wages have to be paid before the expiry
of the seventh day after the last day of the wage.
In establishments with more than 1000 workers payment shall be made before the
expiry of tenth day after the last day of the wage period. Wages shall be paid on a working day,
and shall be paid in current coins or currency notes.
Deductions from wages
The deductions as authorized by the payment of wages Act.1936 are fines absence from
the duty, damages, house and others as ordered by courts.
Enforcement of the Act
Inspectors appointed by the government are responsible for the enforcement of the
payment of wages Act. An authorized inspector may enter and search any factory and look into
the wage record. He can make enquiries both with the employees and employers to ascertain
whether the provisions of this act are being observed. The inspector can seize documents
related to wages in case he finds that the employer is guilty in implementing the act properly.
WORKMENS COMPENSATION ACT, 1923
Objectives
The chief objectives of this Act are to protect the workers from hardship arising from
accidents. The Act also forces to take preventive measure against accidents in a view to check
them which necessitates payment of compensation.
Main features
The worker can claim compensation if the injury has been caused by an accidents in
the course of employment, provided he was not under the influence of drinks or drugs and the
accident was not due to his willful disobedience of the rules.
The amount of compensation depends upon the amount of injury, and the nature of
disablement. All fatal accidents should be brought to the notice of the labour commissioner and
the employer shall deposit the amount of compensation with him, within 30 days of the
accident.
Important definitions
1) Dependent: any person or persons like widow, minor sons, unmarried daughters.
2) Minor: A person below the age of 18 years.
3) Partial disablement: the disablement of temporary nature and which reduces the earning
capacity of worker.
4) Total disablement: the disablement of temporary or permanent nature which
incapacitates a worker for all work and he cannot work at all for a period or for ever.
Employers liability for compensation
The employer is liable for compensation if :a) Injury has been caused by accident
b) During course of employment
Contribution
The principal employer has to pay both the employers contribution and employees
contribution in respect of all employees employed by him directly or indirectly.
The principal employer has been authorized to deduct from the wages for that period
specified in schedule1.
Benefits
The persons insured under this Act are eligible for the benefits stated belowa) Sickness benefit: it is in the form of a periodical payment to any insured person when
his sickness is certified by a duly appointed Medical Practitioner or by another person
having qualifications as prescribed in regulations.
b) Maternity Benefit: periodical payment to insured women will be made in case of her
confinement duly certified in the manner specified in the Act
c) Medical Benefit: An insured person whose condition demands medical treatment is
entitled to receive medical benefit for his treatment.
d) Disablement Benefit: An insured person suffering from disablement as a result of injury
or disease in course of employment is entitled for disabled benefit.
e) Dependents Benefit: when an insured person dies of employment injury, his dependents
get the benefit of an amount not more than 50% of the amount payable to the deceased
person.
Under this Act, the employer is punishable for providing false statements by way of
imprisonment for a period of up to 6 months or fine not exceeding Rs 2000 or both. For
failure to pay contributions, the imprisonment is up to 3 years or a fine up to Rs 10000 or
both.
chapter 8
INDUSTRIAL SAFETY
INTRODUCTION
Industrial Safety, area of safety engineering and public health that deals with the
protection of workers' health, through control of the work environment to reduce or
eliminate hazards. Industrial accidents and unsafe working conditions can result in temporary
or permanent injury, illness, or even death. They also take a toll in reduced efficiency and loss
of productivity.
Various external sources, such as chemical, biological, or physical hazards, can cause
work-related injury. Hazards may also result from the interaction between worker and
environment; these so-called ergonomic hazards can cause physiological or psychological
stress.
Chemical hazards can arise from the presence of poisonous or irritating gas, mist, or
dust in the workplace. Hazard elimination may require the use of alternative and less toxic
materials, improved ventilation, leakage control, or protective clothing.
Biological hazards arise from bacteria or viruses transmitted by animals or unclean
equipment and tend to occur primarily in the food-processing industry. The source of the
contamination must be eliminated or, when that is not possible, protective equipment must
be worn.
Common physical hazards include ambient heat, burns, noise, vibration, sudden
pressure changes, radiation, and electric shock. Industrial safety engineers attempt to
eliminate hazards at their source or to reduce their intensity. If this is impossible, workers are
required to wear protective equipment. Depending on the hazard, this equipment may
include safety glasses, earplugs or earmuffs, face masks, heat or radiation protection suits,
boots, gloves, and helmets. To be effective, however, the protective equipment must be
appropriate, properly maintained, and worn by the worker.
If the physical, psychological, or environmental demands on workers exceed their
capabilities, ergonomic hazards arise. This type of hazard frequently occurs in the area of
materials handling, where workers must lift or carry heavy loads. Poor working posture or
improper design of the workplace often results in muscle strains, sprains, fractures, bruises,
and back pain. These injuries account for 25 percent of all occupational injuries, and their
control requires designing the job so that workers can perform it without overexerting
themselves.
DEFINITIONS
Safety: The apposite of danger?
Hazards: A hazard is a condition with the potential of causing injury or damage.
Danger: Express the degree of exposure to a hazard
Probability: An objective mathematical term having a value between 0 and 1, where 0
represents complete impossibility and 1 represents absolute uncertainty?
Chance: Refers to the probability of an uncertain outcome of some event.
Uncertainty: Exists only in our minds; and has much the same meaning as doubt. Its opposite
is often regarded as faith.
Risk: Used for uncertain eventualities. Risk may be classified as speculative or pure.
Frequency Rate: Number of accidents per million man hours worked.
Severity Rate: Number of days lost per million man hours worked.
Minor Injury: Usually those having no permanent effects and leading to less than three days
of work lost.
Major Injury: Leading to three or more days of work lost.
ACCIDENT
An accident is any unforeseen or unexpected event that may or may not result in an
injury or damage to property or equipment. The ultimate goal in accident prevention is zero
disabling injuries and no work time lost. However, there are many barriers to achieving this
goal, the most important of which is the human attitude. Most people feel that it won't
happen to me" or "it couldn't happen here". You can do more to protect yourself and your
fellow worker by constantly thinking and practicing accident prevention than you can by
memorizing all of the rules, regulations and safeguards ever invented or written. You must
THINK before you act.
Accidents take place only by either or both of two reasons:
Unsafe conditions.
Unsafe act.
UNSAFE ACT
Unsafe act is a built-in hazard which is developed by human error, lack of knowledge,
lake of training, carelessness etc. Unsafe act on apart of operators / maintainer at plant is to
use a wrong tool or to use a tool at wrong place, may be the tool is OK but it will built-up a
potential for an accident. Unsafe act can be minimized by education of people, proper training
to do a certain job and developing safety awareness and reducing carelessness while on job.
GENERAL SAFETY RULES
Following Industrial safety rules should be observed at the work area
Use of Helmet in Helmet area is necessary
Use of Safety shoes is necessary.
Use of loose cloths should be avoided in all working areas, uniform and dungarees
should be used.
Use of gloves is necessary for work like grinding, scaffolding, welding, chemicals
handling etc.
Use of safety glasses/face shield is necessary for welding, flame cutting, grinding etc.
Use of dust filter with half mask is necessary in work area involving dust/radiation /
mist.
Chemical filter cartridge with half mask should be used in work areas, involving
hazardous fumes, Toxic vapors like, painting, chemicals.
Nobody should be allowed to enter confined space like, tanks and vessels containing
toxic vapors or their exist oxygen deficiency, unless the atmosphere is tested.
Area where RT (Radiographic test) is being performed should be shielded and demarked to avoid exposure to radiation.
While working near electrical circuit do not wear, rings, watches, metal jewelry, metal
hand hats etc. Use rubber sole shoes / Rubber insulated gloves.
Insulated and explosion proof electrical tools should be used while working on electric
circuits and machines.
Do not hang clothes over electric panel and switchgear.
While making repair of electrical circuits and machines main power shall be switched
off.
Determine if you need help-- consider the distance and the object's weight.
Look over the pick-up and delivery area for tripping hazards, slippery spots, small
doors, sharp corners, blind spots, etc. Inspect the object for sharp corners, wet
surfaces, etc.
Place feet correctly--one foot close to the side of the object to provide stability-- and
one directly behind the object to provide lift or thrust.
Keep the object close to your body.
Get a correct grip or hold on the object by using a full grip--not just your fingers.
Keep your back straight--this does not mean vertical--just aligned from head to pelvis.
You should tuck in your chin when lifting to ensure alignment from head to pelvis.
Do the actual lifting with your legs only.
You should lower objects in the same manner as you lifted them.
The body should never be turned or twisted while under the stress of heavy weight.
Instead, you should turn your whole body if you desire to change your position after
you have made the lift.
Concentration on work.
Good communication between operator and ground.
Checking equipment prior to use.
Fastening.
Stable lifting.
Unified commanding. Rigging operation should not be allowed to start if any of the
following conditions exist:
Lifting rope is slanting.
Crane is overloaded.
Bulk is too full in container.
Lifted goods are not fastened securely.
Commanding signal is not clear.
There is no prevention measure against sharp edge of lifted goods.
There is person on the lifted goods.
Structural parts being buried under ground.
Crane is out of order.
It is too dark to see lifted goods
There is no prevention measure against strong wind.
Crane Operator must take signals from the person responsible for the lift and must
make no movement until such a signal is given. Only signals in accordance with the relevant
codes should be used. Over loads are forbidden except for the purpose of test and the
operator should demand a weight check on any suspected load. The slinger is responsible for
ensuring that the load is properly sling before giving instructions to the driver. Under no
circumstances must any person be allowed to ride on the load or on the empty hook.
COMPRESSED GAS CYLINDERS SAFETY
Store, handle and transport with care. Look for signs of danger; including leaks,
corrosion, cracks or burn marks, contaminated valves, worn hoses, broken gauges or
regulators. Identify the gas in the cylinder before using it. Keep steel cap on while stored.
Keep upright and secured with a safety chain. Make sure connections and regulators are in
good condition. Point outlets away from people or sources of ignition when opening cylinder.
Store empty cylinders separate from full cylinders. Store oxygen and fuel gas cylinders
separately. Rotate cylinder storage so that older stock is used first. Store oxygen at least 20
feet from flammables and combustibles, or separate them by a five-foot fire-resistant barrier.
HAZARDS OF ENTRY INTO CONFINED SPACES
Vessels, tanks, pits etc. which contains inflammable liquid or chemical or there exist
oxygen deficiency are confined spaces. No body shall be allowed to enter a tank, a vessel, a
tunnel etc. containing toxic vapors or oxygen deficiency unless the atmosphere is tested and
certified fit for working, after the vessel or tank is cleaned, washed and purged. Adequate
ventilation and protective measures should be adopted during work inside such areas. No
tank or vessel which contains or has ever contained any explosive or inflammable shall be
subject to:
Isolation of moving part like cutters and stirrers by locking isolation switches in the
off-position.
Pasting of notice Danger, men working in tank outside the tank.
Cleaning of tanks and vessels.
Before starting of hot work, vessel or tanks shall be completely cleaned by taking the
following steps.
Washing with cold water with high pressure hose
Air blowing for removal of volatile liquid Steaming out
Where sludge is present, filling with water and agitation with paddles, compressed air
or a perforated steam pipe is usually effective.
Washing with hot detergent solution
Equipment: Do not use metal ladders or un-insulated metal tools near electricity. Use only
intrinsically safe or explosion-proof tools and hand lamps. In dangerous location like metal
tanks, use 6 or 12 volts equipment. Keep electrical machinery free of dust, dirt, and oil. Do
not store lunch or anything else in switch boxes. Keep all switch doors closed. Be sure all
equipment meets the requirement of a recognized testing laboratory. Never overload a
circuit, event when all equipment is certified. Examine all electrical tools and equipment for
signs of damage. Never use faulty power tools. When tools or their cords are damaged,
replace them at once.
Wiring: Wires with damaged or deteriorating insulation should be replaced. Only in an
emergency, and for temporary use only, should a wire be wrapped with electrical tape. When
joining wires, tape the connection, cap the wires with wire nuts, or coat them with a special
potting compound. These methods prevent accidental contact with a bare wire.
Water: Water and electricity do not mix. Check your work area for puddles and wet surfaces.
Never try to put out an electrical fire with water. Use the extinguisher designed for electrical
fires.
Making Repairs: The most important rule to follow when making repairs on or near an
electrical circuit is to shut off and lock out the power. Then, to be sure, test the circuit with a
current tester or meter before you work on it. Obey the lockout rules in your plant. Industrial
Safety 18
FIRE
Jobs that involve welding, flame cutting and grinding may cause fire. Before start of
work, carry out inspection of area and remove any combustible materials from the area.
Nearby equipment and hole / opening in floor shall be covered by fire blankets. Appropriate
fire extinguishers and water buckets shall be placed near the job site. A fire fighter will
supervise the activity. The area will be watched for one hour after the activity is finished.
HAZARDS OF FALLS
PRECAUTIONS
All openings in floors including doors through which a person could fall onto a lower
floor or into pit or vessel shall be properly guarded with fix barrier rails of adequate height,
which shall be firmly supported and strong enough to with stand rough usage and occasional
impacts. Safety belts shall be used while working at heights.
HAZARDS OF FALLING OBJECTS
Protection against injury from falling object shall be ensured by taking following
measures. Never work under suspended loads of cranes. Never through any object from
height. Tool box managing on hook shall be used instead of loose tools. Care shall be taken in
stacking materials.
Safety net shall be fixed below the work area so that accidentally falling objects shall
be trapped in the net. Area on ground beneath the working area shall be cordoned and
supervised by safety / security personal. Worker shall wear protective clothing, safety helmet,
safety shoe, and safety gloves.
HAZARDS OF COMPRESSED AIR
Most workshops and factories are equipped with a comprehensive system of
compressed air connections for general use. It is not always appreciated that compressed air,
at the normal factory pressure of 56 bar, can cause grievous injury to workers, whether
they are actually operating the compressed air equipment, or merely standing within a range
of up to 12 m from it. General cleaning down of machines and work surfaces, or cooling of
parts, are among the common usages of compressed air in factories.
When blowing down, the danger lies in particles of metal and swarf which, propelled
at high velocity, can get into the operators eyeswhen cleaning out a blind hole, for
example. Or, and this is common, the particles can be blown into the eyes of a person standing
nearby, whose reflexes are not conditioned to the danger.
There is danger in allowing compressed air to enter the blood stream through a cut or
abrasion on the skin. This has been known to happen, with fatal results, when a workman was
using compressed air equipment to clean his clothes after work: a highly dangerous practice
which must be strongly discouraged.
Apprentices and young factory workers not made aware of the dangers, can injure
themselves severely, and injure other people, if they are allowed to indulge in horseplay while
using compressed air equipment. They must be well and fully trained in the correct use of all
such equipment.
There is a high and sometimes dangerous noise level from compressed air jets. This
noise may occur during a cooling or drying-off operation; generated over a long period it can
cause damage to hearing. Harm can also be done to machinery. When cuttings are being
blown from a surface, for example, they may become lodged in gearing or under slides and,
if they remain unnoticed, can cause damage.
It should always be remembered that compressed air is dangerous, compressed air is
expensive, and compressed air is not a toy. Operators must be trained to recognize the
dangers en that they may work in personal safety and not endanger by-standers or machinery.
Taking precautions to reduce the accident Industrial Safety 20 risk and costs (the direct cost
of the compressed air and the indirect cost of industrial injuries) is a common sense,
managerial responsibility.
Combustible material must be removed from welding area or covered with fiber glass
or steel sheets. Wooden platform must be covered with steel sheets. Cracks/holes in floor
must be covered.
WELDING FUMES AND TOXIC HAZARDS
Normally these causes flue temperature, aches and respiratory problems
Precautions
Proper fume hood and exhaust arrangement must be provided.
ARC WELDING/CUTTING HAZARDS
Although the open circuit voltage is not high (15-40 volts, current 500 A DC/AC) but even then
a hazard should not be overlooked. Worn out and loose cables may cause an accident.
Precaution
Care must be taken of worn-out cables. Welder shall get himself insulated.
HAZARDS OF GAS SHIELDING
Normally argon, helium or CO2 (Carbon Dioxide) gases are used for shielding which are
supplied in cylinders. Argon and CO2 are heavier then air and will easily displace air and cause
oxygen deficiency in pits vessel and excavations.
Precaution
The atmosphere must be well ventilated during the welding / cutting process.
GAS WELDING AND CUTTING HAZARDS
Gas welding involves use of oxygen and acetylene gas cylinders, hoses, reducers, torches and
intense flames.
Precautions
Cigarette buts or any gloving article can burst into flames in presence of oxygen. Acetylene
itself is explosive and cannot be handled safely above 15 PSI.
Cylinders shall be used in up-right position. Cylinders shall not be taken inside tanks/vessels.
Empty cylinder shall be handled with same care as filled cylinders. Cylinder valve shall be
opened slowly. Cylinder shall not be used without gauge. Leaked cylinders shall be removed
to a safe place and shall be labeled. Shall take care not to allow a spark near cylinder. Various
gas cylinders shall not be mixed. Cylinder shall not be filled without pressure testing
HAZARDS OF WELDING TORCHES AND PREVENTIVE MEASURES
Torches made by reputed manufacturer shall only be used. Welding head, tip or nozzle
suitable for the job shall only be used. Weld heads tip or nozzle shall be screwed in properly.
Gas supply shall be first shut-off before disconnecting a torch from the hose. Pilot light or
spark shall be used for lightening of a torch and torch shall be pointed to a safe direction.
Torch shall never be put down without tuning the gas-off. Welding hose shall be protected
against sharp edges of metals.
Head Protection.
Hearing Protection
Eye and Face protection.
Respiratory Protection.
Hand protection.
Foot protection.
Fall/Falling object protection.
Head is the most precious/vital part of the body. It is inherently safe but requires more care
and protection.
SAFETY HELMET
To provide adequate head protection, safety helmet have an adjustable head band
and suspension webbing. These safety helmets can withstand heavy impact without denting
or breaking and resist penetration of falling objects. Safety helmet is meant mainly for head
protection from falling objects but it is also required to protect against heat, chemical
splashes and protect wears hair from contact with machinery part. Such area/places are
defined through signs and posters.
HEARING PROTECTION
The risk due to noise hazard can be defined as Excessive exposure to noise causes
injury to hearing. Continued exposure to sound levels in excess of 90 dB causes partial or
complete loss of hearing i.e. deafness. Hazard limit is 90 dB (A) (as the upper limit for habitual
exposure to noise).
Measurement: dB (A) is the unit used for measurement of sound energies which could cause
occupational deafness. Sound level meter gives a measure of the rate of flow of acoustical
energy. The A weighting refers to a filter which removes a proportion of low frequencies
and also certain high frequencies.
The given below values describe the exposure time versus sound level limit in dB (A).
Time limit (Exposure time) Limit dB(A) 08 hours 90 Industrial Safety 25 04 hours 93 02 hours
96 01 hour 99 30 minuets 102 15 minuets 105 Over 90 dB (A) with every increase of 3 dB (A)
the safe exposure time reduces by half.
Environmental Chart Sound level in (dB(A))
Examples of Industrial Noise sources.
The purpose for hearing protection is to reduce the noise emission level to the wearer.
Reduction in Noise emission level by hearing protectors determines the protection which they
afford against noise. The protection afforded by the hearing protectors depends upon two
factors.
Attenuation (noise reducing effects)
The percentage of time during which hearing protectors is worn. Percentage of time
worn is the first and most important element for hearing protection. It is compulsory for every
worker to wear Ear plug /Ear muffs in these areas during the whole exposure time. It is the
responsibility of every one to keep his ear plug and Ear muffs in a sanitary condition.
EYES AND FACE PROTECTION
The importance of eye safety is highlighted by the vulnerability of the eye. Although
to counter act this, nature has provided the eye with a number of built in protective devices.
The bone structure acts as a shield against large objects. The muscles around the eye act as a
shock absorbers against blows. Eye brows prevent moisture running directly into eyes. Eye
lids and lashes act like safety curtains, closing rapidly with a reflex action to trap small particles
or insects or to shut out sudden glaring light.
An extra long nerve allows for some displacement without permanent damage. And,
after all this, if same thing should penetrate the defenses, the tear-ducts do their best to wash
away the offending foreign body. All these natural defenses, although efficient enough for
natural out-door surrounding, are inadequate in manmade environment where chemicals,
sharp, radiation and fast flying particles are common hazards. Eye injuries generally can be
classified as:
Burn Thermal and chemicals
Laceration Caused by any sharp piece of metal etc
Contusions Results from heavy blow may cause displacement of the lens or retina or
rupture the eye ball.
Burns to eyes are caused by chemicals splash and powerful infra-red or Ionizing radiation
from welding operation: In case of chemical splash immediately wash eyes with plain water
continuously for 15 minutes because if any delay occurs it will sock in the tissues and the
process cannot be stopped easily which could damage the eye severely.
HAND PROTECTION
Use of appropriate/suitable gloves is necessary when there exist hazard to protect against
contact with following hazards:
Sharp
Abrasive
Corrosive
So, suitable gloves should be used, when performing jobs such as welding, flame cutting,
handling hazardous chemicals, handling Hot and cold objects or danger of cut, burns,
laceration, abrasion and puncture persists. Similarly Insulation gloves should be used when
working on energized electrical conductors or equipment. The usual types of gloves used for
the protection of Hands from various job hazards are given below:
Cotton gloves simple gloves used for general work.
PVC doted gloves to protect Hand, from cut, puncture, abrasion, splinter etc
PVC chemical splash gloves to avoid contact with hand/skin to prevent irritation and
burn.
Ordinary Rubber gloves to avoid contact with liquids, oils, lubricants etc
Electrically insulated Rubber gloves use for work on energized electrical conductors
or equipment.
Leather gloves Use for handling hot surfaces/objects.
FOOT PROTECTION
More than 10% of all disabling injuries to Industrial workers involve feet and toes. Such
injuries can be reduced or even eliminated by wearing safety shoes. Steel toe cap protect the
toe against falling object and striking against sharp/projected edges. The sole is anti-slip,
chemical resistant, oil resistant and electrically insulated. Rubber boats or PVC over shoes
must be used when handling chemicals.
BODY PROTECTION
Protective clothing is used to protect against dirt, chemicals, oils, heat or contact with
general articles which could cause physical damages. Dungarees are used for general purpose.
Chemical resistant suits along with rubber gloves and face shield are used for
handling/maintenance of equipment involving chemicals.
RESPIRATORY PROTECTION
Respiratory Protection for workers against Toxic and Hazardous suspended particles
or gases present in the ambient atmosphere is required when a worker is exposed or may be
exposed to harmful concentration of contaminated air or when a deficiency of Oxygen exist
or might exist.
TYPES OF RESPIRATORY HAZARD
Dust
Gas filters
Particle filters
Combined filters
Flush the burned area with water for at least five minutes to dilute any chemical. If an
eye is burned by a chemical, especially by an acid, flush gently but thoroughly with water and
call the doctor.
CARBON MONOXIDE POISONING
It is a colorless and odourless gas that kills without warning. Its symptoms are:
Headache, dizziness, weakness, laboured breathing, possible vomiting followed by
unconsciousness. Skin, fingernails may be cherry red.
First Aid
Get the victim into open air, or open all windows or doors, cover him with blankets to
give him warmth. Begin artificial respiration.
FAINTING
First Aid
A- Place the patient on his back, with his head low. Make sure that his airway is clear and he
is breathing properly. Loosen tight clothing, apply cold cloths to his face. If the fainting
lasts for more than two minutes, cover him and call ambulance.
B- B- Seat a person who feels faint. Fan face or sponge with cool water. Lower head to knees
to encourage blood flow. If he faints, lay him down, turn head to the side, and wave
smelling, salts or spirits of ammonia under the nose. If the faint lasts more than a few
minutes, call a doctor; if person regains consciousness, keep him quite and lying down
for 15 minutes.
ELECTRIC SHOCK
The fist and foremost thing to do is to switch off the electricity from the main system.
If this is not possible then do the following: Remove the contact of victims body from source
of electric current, using a tree branch, a dry rope or dry clothing. Do not touch the victim
until contact with current has been broken. Check to see if victim is breathing and has a pulse.
If necessary apply mouth to mouth breathing and send for medical aid at once.
FIRST AID FOR SHOCK VICTIMS
The most important things to know about first aid for shock victims are:
Never touch a victim of shock who is still in contact with the source of electricity.
Act swiftly.
Send for medical assistance.
If you touch someone who is still in contact with the electrical source, you will also
become part of the circuit. Then there will be two victims instead of one. If the person is
frozen to the energized conductor, the first thing to do is shut off the electricity. If control is
very far away, drag or push the victim away from the electricity with a piece of nonconductive
material. Make sure the material you use is dry. If live wires are lying on or near the victim,
use a nonconductive material to move them away.
Start first aid as soon as it is safe to do so. If the heart has stopped breathing, start heart
massage and mouth-to-mouth resuscitation immediately. If you do not act within four
minutes, the victim will suffer permanent brain damage. If the heart is beating, lay the victim
flat and raise the leg by placing something under them. Keep the victim warm. Do not give
fluids if the victim is unconscious or nauseous. If the victim is burned, cut away loose clothing
and immerse the burned area in cold water or cover with cold, wet compresses.
APPENDIX PAIN
Symptoms
Nausea, vomiting, severe pain in the stomach, fever, the right side of the abdomen becomes
hard, tense and is sore or painful to touch.
FIRST AID
Do not let him eat or drink anything. Do not give the patient any laxative. Take his
temperature and take the patient to the Hospital at once.
BLEEDING AND WOUNDS
To stop bleeding, firmly squeeze the sides of the wound together or apply pressure
with the thumbs at the sides of the wound. Cleanse around and away Industrial Safety 33
from the wound, taking care not to disturb any blood clot. Apply and maintain pressure to
bleeding part with dressing, cover with pad and bandage firmly. If bleeding is not controlled,
apply more pads and increase pressure with the hand or additional bandages. Immobilize the
injured part and treat for shock.
SHOCKS
Symptoms are pale; cold skin; rapid pulse; shallow breathing; weakness; Sock itself
can be fatal, Reassure the casualty and lay him down at absolute rest. Loosen any tight
clothing, Wrap in blanket or coat but DO NOT OVERHEAT, apply artificial heat, or rub. Get
casualty to hospital as soon as possible.
BURNS OR SCALDS
To alleviate pain, immerse part in Ice water if possible. DO NOT remove burned
clothing break blisters or apply ointments or oils. Cover burned area with dry quaze or some
clean fabric and attach with bandages. If burn is sever, treat for shock and take patient to
hospital without delay.
BROKEN BONES
Fractures should be moved as little as possible. Immobilize and support the injured
part at once. Upper limbs may be gently secured to the body in the most comfortable
position. When a leg is fractured leave casualty lying in a position as comfortable as possible
and call a doctor or ambulance. If transport is essential the injured limb may be secured to
the sound one. Industrial Safety 34
POISON
If patient is unconscious do not attempt to treat except with artificial respiration, if
needed. Conscious casualties of corrosive poison (which destroy tissue, e.g. acids should be
given large quantities of milk to drink. With narcotics (e.g. sleeping pills) the casualty should
be made to vomit by touching the back of his throat or given him two tablespoons of salt in
a glass of warm water to drink.
FROSTBITE
Warm frozen part in water (102-105 F). Do not use heat lamp or hot water bottle. Do not rub.
SUNSTROKE
Sponge body with cool water or rub with alcohol.
HEAT EXCHAUSION
Give victim slips of salt water (1 teaspoon of salt per glass glass every 15 minutes
for one hour). Loosen clothing and apply cool wet cloth. Keep lying down with feet elevated.
Take to the hospital.
INSECT BITES AND STINGS
Attempts to remove stinger. Cover area with paste of baking soda; calamine lotion ma be
helpful later to reduce itching. If victim faints, collapses, or if body swells call physician
immediately.
EXHALED AIR RESUSCITATION
The exhaled air (mouth to mouth, or mouth to nose) method of artificial respiration
is strongly recommended and should be learned by everyone. Lay patient on his back. Tilt
the head and chin away from the chest to clear airway, making sure that it is not obstructed
by the tongue or foreign matter. Open your mouth and take a deep breath. Pinch the
casualtys nostrils together, then seal your lips around mouth. Blow into his lungs until the
chest rises, then remove your mouth and watch the chest deflate. Repeat, giving the first
four inflation as rapidly as possible. Lung inflation can be carried out through the nose. The
casualtys mouth should be sealed with the thumb holding the lower jaw.
HEART ATTACKS
The American Heart Association says that these are the usual warnings of heart
attack, although symptoms vary. Prolonged, oppressive pain or unusual discomfort in
the center of the chest, behind the breast bone pain may radiate to shoulder, arm,
neck or jaw. The pain or discomfort is often accompanied by seating, nauseas,
vomiting and shortness of breath may also occur. Sometime these symptoms subside
and then return. Industrial Safety 35 Minutes count when heart attack strikes Act
promptly. Call a doctor and carefully describe the symptoms. If no doctor is
immediately available, get the victim to a hospital emergency at once
Chapter 9
Work Study
Work Study
Definition: Work study may be defined as the analysis of a job for the purpose of finding the preferred
method of doing it and also determining the standard time to perform it by the preferred (or given)
method. Work study, therefore, comprises of two areas of study: method study (motion study) and time
study (work measurement).
Role of Work Study in Improving Productivity
In order to understand the role of work study, we need to understand the role of method study and that
of time study.
Method study (also sometimes called Work Method Design) is mostly used to improve the method of
doing work. It is equally applicable to new jobs. When applied to existing jobs and existing jobs, method
study aims to find better methods of doing the jobs that are economical and safe, require less human
effort, and need shorter make-ready / put-away time. The better method involves the optimum use of
best materials and appropriate manpower so that work is performed in well-organized manner leading
to increased resource utilization, better quality and lower costs.
It can therefore be stated that through method study we have a systematic way of developing human
resource effectiveness, providing high machine and equipment utilization, and making economical use
of materials.
Time study, on the other hand, provides the standard time, that is the time needed by worker to complete
a job by the standard method. Standard times for different jobs are necessary for proper estimation of
By the application of method study and time study in any organization, we can thus achieve greater
output at less cost and of better quality, and hence achieve higher productivity.
Work Study and Ergonomics
The work study and the ergonomics are the two areas of study having the same objective: design the
work system so that for the operator it is safe, and the work is less fatiguing and less time taking.
Historical Developments
The Work of Taylor
Frederick W. Taylor is generally considered to be the founder of modern method and time study,
although time studies were conducted in Europe many years before Taylors time. In 1760, Jean
Rudolph Perronet, a French engineer, made extensive time studies on the manufacture of No. 6 common
pins.
Taylor began his time study work in 1881 while associated with the Midvale Steel Company in U.S.A.
He evolved a system based on the task, and proposed that the work of each employee be planned out
by the management in advance. Each job was to have a standard time, deter mined by time studies made
by experts. In the timing process, Taylor advocated dividing the work into small divisions of effort
known as "elements." Experts were to time these individually and use their collective values to
determine the allowed time for the task.
Early presentations of Taylors findings were received with little enthusiasm, because many interpreted
his findings to be somewhat new piece-rate system rather than a technique for analysing work and
improving methods. Both management and employees were sceptical of piece rates, because many
standards were earlier typically based on the supervisor's guess or even sometimes inflated by bosses
to protect the performance of their departments.
In June 1903, at the American Society of Mechanical Engineers meeting, Taylor presented his famous
paper, "Shop Management," which included the elements of scientific management: time study,
standardization of all tools and tasks, use of a planning department, use of slide rule and similar
timesaving implements, instruction cards for workers, bonuses for successful performance, differential
rates, mnemonic systems for classifying products, routing systems, and modern cost systems. Taylors
techniques were well received by many factory managers, and by 1917, of 113 plants that had installed
"scientific management," 59 considered their installations completely successful, 20 partly successful,
and 34 failures.
In 1898, while at the Bethlehem Steel Company, Taylor carried out the pig-iron experiment that became
the most celebrated demonstrations of his principles. He established the correct method, along with
financial incentives, and workers carrying 92-pound pigs of iron up a ramp onto a freight car were able
to increase their productivity from an average of 12.5 tons per day to between 47 and 48 tons per day.
This work was performed with an increase in the daily rate of $1.15 to $1.85. Taylor claimed that
workmen per formed at the higher rate "without bringing on a strike among the men, without any quarrel
with the men and were happier and better contented."
Another of Taylors Bethlehem Steel studies that became famous was on shovelling work. Workers
who shovelled at Bethlehem would use the same shovel for any joblifting heavy iron ore to lifting
light rice coal. Taylor designed shovels to fit the different loads: short- handled shovels for iron ore,
long-handled scoops for light rice coal, and showed their usefulness in improving productivity.
Not as well-known as his engineering contributions is the fact that in 1881, he was a U.S. tennis doubles
champion. Here he used an odd-looking racket he had designed with a spoon curved handle.
The Work of Gilbreths
Frank and Lilian Gilbreth are considered as the founders of the modern motion study technique, which
may be defined as the study of the body motions used in performing an operation, for the purpose of
improving the operation by eliminating unnecessary motions, simplifying necessary motions, and then
establishing the most favourable motion sequence for maximum efficiency. Frank Gilbreth originally
implemented ideas into the bricklayer's trade in which he was employed. After introducing methods
improvements through motion study, including an adjustable scaffold that he had invented, as well as
operator training, he was able to increase the average number of bricks laid from 120 to 350 per worker
per hour.
More than anyone else, the Gilbreths were responsible for industry's recognition of the importance of a
detailed study of body motions to arrive at the best method of performing an operation that would
increase production, reduce operator fatigue. They developed the technique of filming motions for
study, known as micro motion study.
The Gilbreths also developed the cyclegraphic and chronocyclegraphic analysis techniques for studying
the motion paths made by an operator. The cycle- graphic method involves fixing small electric light
bulb to the finger or part of the body being studied and then photographing the motion while the operator
is performing the operation. The resulting picture gives a permanent record of the motion pattern
employed and can be analysed for possible improvement. The Chrono- cyclograph is similar to the
cyclograph, but its electric circuit is interrupted regularly, causing the light to flash. Instead of showing
solid lines of the motion patterns, the resulting photograph shows short dashes of light spaced in
proportion to the speed of the body motion being photographed. Consequently, with the
chronocyclegraph it is possible to determine direction and compute velocity, acceleration, and
deceleration, in addition to study of body motions.
The Work of Others
Carl G. Barth, an associate of Frederick W. Taylor, developed a production slide rule for estimating the
most efficient combinations of speeds and feeds for cutting metals of various hardnesss, considering
the depth of cut, size of tool, and life of the tool. He is also known for his work on estimation of
allowances by establishing the number of foot-pounds of work a worker could do in a day. He developed
a relationship in which a certain push or pull on a worker's arms was equated with the amount or weight
that worker could handle for a certain percentage of the day.
Harrington Emerson applied scientific methods to work on the Santa Fe Railroad and wrote a
book, Twelve Principles of Efficiency, in which he made an attempt to lay down procedures for efficient
operation. He reorganized the company, integrated its shop procedures, installed standard costs and a
bonus plan, and introduced Hollerith tabulating machines for the accounting work. This effort resulted
in annual saving of $ 1.5 million and recognition of his approach, called efficiency engineering.
In 1917, Henry Laurence Gantt developed simple graph that would present performance while visually
showing projected schedules. This production control tool was adopted by the shipbuilding industry
during World War I. For the first time, this tool demonstrated the possibility of comparing actual
performance against the original plan, and to adjust daily schedules in accordance with capacity, back
log, and customer requirements. Gantt is also known for his wage payment system that rewarded
workers for above-standard performance, eliminated any penalty for failure, and offered the boss a
bonus for every worker who per formed above .standard. Gantt advocated human relations and
promoted scientific management in the back drop of an inhuman "speedup" of labour.
Motion and time study received added stimulus during World War II when Franklin D. Roosevelt,
through the U.S. Department of Labour, attempted to establish standards for increasing production. The
stated policy advocated greater pay for greater output but without an increase in unit labour costs,
incentive schemes to be collectively bargained between labour and management, and the use of time
study for setting production standards.
Chapter 10
Method Study
Method Study
Method study, aims to achieve the better method of doing work, and for this reason method study is
sometimes called Work Method Design.
Definition: Method study can be defined as the procedure for systematic recording, analysis and critical
examination of existing or proposed method of doing work for the purpose of development and
application of easier and more effective method.
Method Study Procedure
The following general steps describe the procedure for making a method study.
1. Select the job on which method study is to be applied.
2. Obtain information and record.
3. Examine the information critically.
4. Develop the most practical, economical and effective method by considering real limitations of
the situation.
5. Install the new method as standard practice.
6. Maintain the standard practice by regular follow up.
Let us consider these steps in some detail.
Selection of Job for Method Study
Practically, any activity or a job is a potential project for improvement but as the work study engineer
is to sell his ideas and maintain his existence in the organisation, he should always attempt to select
those jobs for improvement which are unpopular among employees or are considered dirty by them.
By improving such jobs, he would earn goodwill from the employees as well as the management, and
can expect their full cooperation for other studies in the future.
Considerations may be given to the following factors while selecting a job for method study
Economic Factors
Technical Factors
Human Factors
Economic Factors:
If the economic importance of a job is small, it is not wise to start or continue a long study. Priorities
should be given to those types of job which offer greater potential for cost reduction. Such jobs are
easily identifiable, as they have
High labour content, i.e. they consume more time
Excessive machine or man idleness
Higher frequency of occurrence, i.e. they have large demand
Bottlenecks in production line
Higher proportion of accidents
Movement of material or men over long distance
High scrap and reprocessing costs
High payment of overtime bills.
Technical Factors: The method study engineer must have the necessary technical knowledge about the
job to be studied. Only surface knowledge about the subject may not lead to the right solution to the
real problem. To illustrate, consider that a particular machine tool in proving bottleneck. The output
from this machine is not reaching the assembly line in the required quantity. Through a preliminary
study, it is found that it is running at lower speed and feed than that recommended for the pair of work
and tool material used. Just increase in speed or feed may not be the solution of this problem. It may be
possible that the machine itself is not rigid enough to operate at higher speeds or take a deeper cut. Just
increase in speed may increase the output but the quality of job may be seriously affected. Technical
expertise in machine tools and metal cutting process would be essential to solve problem of this kind.
Human Factors: Emotional reaction of the workers to the method study and changes in method are
important considerations. If the study of a particular job is suspected to cause unrest or ill feeling, it
should not be undertaken, however useful it may be from the economic point of view. It is always better
to take up first those jobs which are considered dirty', unsafe, unpleasant, boring, or highly fatiguing,
and improvements brought about as a result of method study. This would possibly ensure cooperative
from the workers for the other jobs as well.
After it is recognized that a problem exists, the first step is to properly formulate it. From the general
statements like Costs are too high, Increase the production, Reduce shop floor accidents, it is
necessary to determine just what the real problem is. After it is ascertained that the problem merits
consideration, it is decided whether this is the proper time to solve it, and how much time can be spent
in solving it. The problem may then be defined broadly giving minimum constraints at this stage, as it
will permit the use of imagination a ND creativity in finding a solution. It may sometimes be desirable
to divide the complete problem into a couple of small problems and solve them.
Chapter 11
Work Measurement
Work Measurement
Work measurement refers to the estimation of standard time for an activity that is the time allowed for
completing one piece of job by using the prescribed method. Standard time can be defined as the time
taken by an average experienced worker for the job with provisions for delays beyond the worker's
control.
There are several techniques used for estimation of standard time in industry. These include time study,
work sampling, standard data, and predetermined motion time system.
Applications:
Standard times for operations are useful for several applications in industry, like
Estimating material, machinery, and equipment requirements.
Estimating production cost per unit as an input to
Preparation of budgets
Determination of selling price
Make or buy decision
Estimating manpower requirements.
Estimating delivery schedules and planning the work
Balancing the work of operators working in a group.
Estimating performance of workers and using that as the basis for incentive payment to those direct
and indirect labour who show greater productivity.
We will study some of the popular techniques of work measurement.
TIME STUDY. It is the most versatile and the most widely used technique of work measurement.
Definition:
Time study is a technique to estimate the time to be allowed to a qualified and well-trained worker
working at a normal pace to complete a specified task by using specified method.
This technique is based on measuring the work content of the task when performed by the prescribed
method, with the allowance for fatigue and for personal and unavoidable delays.
Time Study Procedure:
The procedure for time study can best be described step-wise, which are self-explanatory.
Step 1: Define objective of the study. This involves statement of the use of the result, the precision
desired, and the required level of confidence in the estimated time standards.
Step 2: Verify that the standard method and conditions exist for the operation and the operator is
properly trained. If need is felt for method study or further training of operator, the same may be
completed before starting the time study.
Step 3: Select operator to be studied if there are more than one operator doing the same task.
Step 4: Record information about the standard method, operation, operator, product, equipment, and
conditions on the Time Study observation sheet.
Step 5: Divide the operation into reasonably small elements, and record them on the Time Study
observation sheet.
Step 6: Time the operator for each of the elements. Record the data for a few number of cycles on the
Time Study observation sheet. Use the data to estimate the total number of observations to be taken.
Step 7: Collect and record the data of required number of cycles by timing and rating the operator.
Step 8: Calculate the representative watch time for each element of operation. Multiply it by the rating
factor to get normal time.
Normal time = Observed time x Rating factor
Calculate the normal time for the whole operation by adding the normal time of its various elements.
(5) Irregular elements, those not repeated in every cycle, should be separated from regular elements.
For example, if the jig is cleaned off after every ten parts produced, "cleaning" is an irregular element,
and its time should be spread over ten cycles.
(6) Unnecessary motions and activities should be separated from those considered essential.
(7) Foreign or accidental elements should be listed separately. Such elements are generally of nonrepetitive type.
Number of cycles to be timed.
The following general principles govern the number of cycles to get the representative average cycle
time.
(1) Greater the accuracy desired in the results, larger should be the number of cycles observed.
(2) The study should be continued through sufficient number of cycles so that occasional elements such
as setting-up machine, cleaning of machine or sharpening of tool are observed for a good number of
times.
(3) Where more than one operator is doing the same job, short study (say 10 to 15 cycles) should be
conducted on each of the several operators than one long study on a single operator.
It is important that enough cycles are timed so that reliable average is obtained.
Following techniques are used to determine the number of cycles to be timed.
(I) Use of Tables: On the consideration of the cost of obtaining the data and the desired accuracy in
results, most companies have prepared their own tables for the use of time study people, which indicate
the number of cycles to be timed as a function of the cycle time and the frequency of occurrence of the
job in the company. For example, one Company uses the Table-1 for such purposes.
(ii) Statistical methods: On the basis of the requirements of the particular situation
involved, accuracy and confidence level are decided (An accuracy of a confidence level of 95% is
considered reasonable in most cases). A preliminary study is conducted in which some (say N) cycles
are timed. Standard deviation o of these (N) observations is calculated as
(iii) Mundel Method: In this method the following steps are followed.
Step 1. Take a few good watch readings of the work cycle. (Generally, 10 readings are taken if cycle
time is less than 2 minutes, otherwise 5 readings).
Step 2. Find the ratio
, where H and L are respectively the highest and the lowest value of the
leading.
Step 3. Corresponding to the value of the ratio, determine the number of observations from the Table
1.
8
4
12
7
17
10
23
13
30
17
38
22
47
27
27
33
68
39
80
46
93
53
0.30 0.32 0.34 0.36 0.38 0.40 0.42 0.44 0.46 0.48 0.50
Sample 5 107 121 137 154 171 190 210 230 250 273 296
Sample 10 61 69 78 88 98 108 120 132 144 156 170
Normal Performance
There is no universal concept of Normal Performance. However, it is generally defined as the working
rate of an average qualified worker working under capable supervision but not under any incentive wage
payment scheme. This rate of working is characterized by the fairly steady exertion of reasonable effort,
and can be maintained day after day without undue physical or mental fatigue.
The level of normal performance differs considerably from one company to another. What company a
calls 100 percent performance, company B may call 80 percent, and company C may call 125 percent
and so on. It is important to understand that the level that a company selects for normal performance is
not critical but maintaining that level uniform among time study persons and constant with the passage
of time within the company is extremely important.
There are, of course, some universally accepted benchmark examples of normal performance, like
dealing 52 cards in four piles in 0.5 minute, and walking at 3 miles per hour (4.83 km/hr). In order to
make use of these benchmarks, it is important that a complete description about these be fully
understood, like in the case of card dealing, what is the distance of each pile with respect to the dealer,
technique of grasping, moving and disposal of the cards.
Some companies make use of video films or motion pictures for establishing what they consider as
normal speed or normal rate of movement of body members. Such films are made of typical factory
jobs with the operator working at the desired normal pace. These films are found to be useful in
demonstrating the level of performance expected from the operators and also for training of time study
staff.
Work Sampling
Work Sampling (also sometimes called ratio delay study) is a technique of getting facts about utilization
of machines or human beings through a large number of instantaneous observations taken at random
time intervals. The ratio of observations of a given activity to the total observations approximates the
percentage of time that the process is in that state of activity. For example, if 500 instantaneous
observations taken at random intervals over a few weeks show that a lathe operator was doing
productive work in 365 observations and in the remaining 135 observations he was found 'idle' for
miscellaneous reasons, then it can be reliably taken that the operator remains idle (135/500) x 100 = 27
% 0f the time. Obviously, the accuracy of the result depends on the number of observations. However,
in most applications there is usually a limit beyond which greater accuracy of data is not economically
worthwhile.
Use of Work Sampling for Standard Time Determination
Work sampling can be very useful for establishing time standards on both direct and indirect labour
jobs. The procedure for conducting work sampling study for determining standard time of a job can be
described step-wise.
Step 1. Define the problem.
Describe the job for which the standard time is to be determined.
Unambiguously state and discriminate between the two classes of activities of operator on the job:
what are the activities of job that would entitle him to be in 'working" state.
This would imply that when operator will be found engaged in any activity other than those would
entitle him to be in "Not Working" state.
Step 2. Design the sampling plan.
Estimate satisfactory number of observations to be made.
Decide on the period of study, e.g. two days, one week, etc.
Prepare detailed plan for taking the observations.
This will include observation schedule, exact method of observing, design of observation sheet, route
to be followed, particular person to be observed at the observation time, etc.
Step 3. Contact the persons concerned and take them in confidence regarding conduct of the study.
Step 4. Make the observations at the pre-decided random times about the working / not working state
of the operator. When operator is in working state, determine his performance rating. Record both on
the observation sheet.
Step 5. Obtain and record other information. This includes operator's starting time and quitting time of
the day and total number of parts of acceptable quality produced during the day.
Step 6. Calculate the standard time per piece.
We will now briefly discuss some important issues involved in the procedure.
Number of Observations
As we know, results of study based on larger number of observations are more accurate, but taking
more and more observations consumes time and thus is costly. A cost-benefit trade-off has thus to be
struck. In practice, the following methods are used for estimation of the number of observations to be
made.
(I) based on judgment. The study person can decide the necessary number of observations based on his
judgment. The correctness of the number may be in doubt but estimate is often quick and in many cases
adequate.
(ii) Using cumulative plot of results. As the study progresses the results of the proportion of time
devoted to the given state or activity, i.e. Pi from the cumulative number of observations are plotted at
the end of each shift or day. A typical plot is shown in Figure 2. Since the accuracy of the result
improves with increasing number of observations, the study can be continued until the cumulative Pi
appears to stabilize and collection of further data seems to have negligible effect on the value of Pi.
(iii) Use of statistics. In this method, by considering the importance of the decision to be based on the
results of study, a maximum tolerable sampling error in terms of confidence level and desired accuracy
in the results is specified. A pilot study is then made in which a few observations are taken to obtain a
preliminary estimate of Pi. The number of observations N necessary are then calculated using the
following expression.
The number of observations estimated from the above relation using a value of Pi obtained from a
preliminary study would be only a first estimate. In actual practice, as the work sampling study
The normal time (NT) is found by multiplying the observed time by the average performing index
(rating factor).
Where =
Chapter 12
Value Engineering
Define the problem and its scope as the first step in the value analysis process.
Then, derive the functions of the product and its items. These functions are classified into
"basic" and "secondary" functions.
Prepare a Cost Function Matrix or Value Analysis Matrix to identify the cost of providing
each function by associating the function with a mechanism or component part of a product.
a. Identify Product functions with a high cost-function ratio as opportunities for further
investigation and improvement. Improvement opportunities are then brainstormed,
analysed, and selected.
b. Use the objective of the Function Cost Matrix approach to draw the attention of the
analysts away from the cost of components and focus their attention on the cost
contribution of the functions.
c. The Function Cost Matrix displays the components of the product, and the cost of those
components, along the left vertical side of the graph. The top horizontal legend contains
the functions performed by those components. Each component is then examined to
determine how many functions that component performs, and the cost contributions of
those functions.
d. Estimate detailed cost as it becomes more important following function analysis, when
evaluating value improvement proposals. The total cost and percent contribution of the
functions of the item under study will guide the team, or analyst, in selecting which
functions to select for value improvement analysis.
A variation of the Function-Cost Matrix is the Value Analysis Matrix. This matrix was
derived from the Quality Function Deployment (QFD) methodology. It is more powerful in two
ways.
a. First, it associates functions back to customer needs or requirements. In doing this,
it carries forward an importance rating to associate with these functions based on the
original customer needs or requirements.
b. Functions are then related to mechanisms, the same as with the Function-Cost Matrix.
Mechanisms are related to functions as either strongly, moderately or weakly
supporting the given function. This relationship is noted with the standard QFD
Chapter 13
Purchasing
INTRODUCTION
Purchasing Is a Challenging Never Ending Job with a Significant Financial Gain for Effective Work
Purchasing function is described as the business activity directed to securing the materials, supplies and
equipment required in the operations of an organisation. It has a long range objective of ensuring
continuity of cost effective supplies of materials and services.
Purchasing function operates within a framework determined by the management. No other function
has greater inter-relationships not only within the organisation but also with outside supplier
organisations. It is a managerial activity that includes planning and policy activities covering a very
wide range of related and complimentary activities such as:
Market research for new materials and development of new sources of supply.
Follow up to ensure proper delivery
Inspection of materials for quality and compliance with specifications.
Development of proper systems and procedures to enable the purchase function to be carried
out efficiently.
Coordination with other activities within the materials department like transportation,
receiving, storekeeping, inventory control, accounting, disposal of scrap and surplus etc.
Considering that the purchasing rupee forms a significant percent of total expenses, the importance of
the purchasing function need not be overemphasized in today s economic environment.
PURPOSE
To provide a framework for managing the purchasing function in an ethical, effective
And uniform manner by:
Defining the Objectives and Scope of the purchasing function.
Establishing the Purchasing Policies.
Describing the Procedures to be followed in the implementation of the policies.
Issuing Authority Level / Limits / and Guidelines to purchasing officials
OBJECTIVES
FUNCTIONS:
CHAPTER 14
FUNCTION OF SALES MANAGEMENT
INTRODUCTION
Selling is a universal activity; everybody sells something. In a modern market
economy, selling is an important and sophisticated activity. In less advanced societies, selling
is low level, often amounting to simple barter. In this chapter we examine the important role
of the sales force in overall marketing activities, and the relationship between marketing and
sales functions. Selling is a process to make a sale, but personal selling is more than this.
Selling can be done remotely through mail-shots or advertisements; personal selling is done
face-to-face which demands interpersonal skills and training and it is a highly professional
activity. We examine the key steps in managing the sales force from recruitment and training
to territory design, sales call planning, and control and remuneration as well as the steps in
personal selling and considerations in managing these effectively as well as examining
emerging trends in selling and sales management.
MARKET RESEARCH
ROLE OF THE SALES FORCE
Depending on the type of organization, a sales force may consist of a few salespeople
with infrequent contact with customers, or many salespeople operating in a highly organized
system with regular and frequent contact. The latter would apply to companies selling
consumer goods like confectionery where it is necessary to have a regular, day-to-day
contact. A company that constructs bridges needs fewer salespeople as there are fewer
customers and it is more appropriate to have technical sales- persons to negotiate contracts
and resolve problems that customers may face during the construction process. The sales
force provides a flow of information to the company which needs to know what is happening
in the field to keep up with changes in demand or fashion. Personal selling is an integral part
of the firms communication mix which is made up of non personal communication tools.
Generally, personal selling is more important in organizational settings. As much as 80 per
cent of the total marketing budget is spent on selling because of the necessity of a one-toone relationship.
This is because of:
The technical complexity of products; n the commercial complexity of sales
negotiations;
The degree of commercial interdependence and interaction between the buying and
selling organizations.
These factors are not present in many consumer marketing situations. Personal selling is
less critical and more of the budget is spent on non-personal communications like advertising
which features strongly for products such as lager, coffee and detergents. Consumer
advertising attempts to pull these goods through the distribution channel. Personal, faceto-face selling, attempts to push goods through the channel. Selling is the main task of the
sales force, although are other tasks include:
obtaining information;
maintaining and creating goodwill;
Building business for the future.
TYPES OF SALES FORCE
A variety of different types of sales force take account of different sales situations:
Selling consumer goods to members of the channel where regular contact must be
maintained. Personal relationships are important; typically used for FMCGs and consumer
durables. Salespersons must be well organized to provide regular coverage. Selling to
retailers requires a large sales force to call on customers at pre-determined intervals (termed
the sales journey cycle). Large sales forces can be split into regions with regional sales
managers, and regions are split into areas with an area manager in charge of individual
representatives. Channel members (retailers and wholesalers) are business customers, so
processes and considerations pertaining to organizational buyers apply as they are
professional purchasers using systematic buying processes and purchase in large lots.
Industrial goods selling where products are often made to individual specification, so
customer needs have to be satisfied on an individual basis. Products range from machinery
to component parts to raw materials and services such as the provision of IT products and
systems on behalf of clients. Much time is spent finding prospective customers. Often,
products are sold at such infrequent intervals that when the customer is ready to re-order,
specifications have been modified substantially. Salespeople tend to be well qualified and
can discuss customer technical problems and offer solutions so cementing relationships with
industrial buyers.
Retail selling: Despite the ubiquitous nature of self-service, considerable selling
activity takes place in this setting. These activities are not confined to durable products or
services like cars, televisions or holidays, but also relate to lower value items like shoes and
clothing, and even non-durables like foodstuffs and meals. Think back to the last time you
purchased shoes in a retail outlet. How helpful was the person who served you? Did they
have any influence over whether you bought or not? Did they suggest a particular pair of
shoes? Did they get you to spend more than you intended? Did they get you to purchase
another item like shoe polish with the shoes? Will you ever return and buy again from the
same retailer? Shoe retailers are aware of the importance of sales activities to customers.
Staff training involves how to sell to customers including encouraging them to trade up and
extend their purchasing.
ROLE OF SELLING WITHIN MARKETING
Selling is one of a number of tactical activities within marketing such as pricing and
advertising. Co-coordinating these is essential for effective marketing. Differences in
importance depend on the companies and industries involved. A successful sale depends on
whether or not the product concerned fulfils the customer requirements and results in
satisfied customers.
Relationship with marketing research
Marketing research finds out what people want and why they want it. Information
might result in changes in the product. Such information is fed to the sales department and
can be used by them to counter competition. Cowan5 argues that in the past market research
has often failed to identify significant changes in markets or new innovatory products.
Because of close contact with customers and markets however, the sales force in particular
can be used to provide market intelligence information that feeds into the Marketing
Information System (MkIS) and helps shape marketing strategy.
Relationship with other elements of the promotional programme
The relationship of the sales force to the other aspects of promotion should be one of
mutual co-operation, e.g. the sales force can obtain agreement from customers for the
company to use a retail customers window for displaying promotional materials. The
Integrated Marketing Communications (IMC), introduced in Chapter 7, suggests that all
elements in an organizations communications mix have a specific part to play. Malcolm et
al.6 explain why integrated marketing communications is so important but essentially each
component of the communications mix has a key role to play. Non-personal communication,
in the form of advertising, public relations and sales promotions, aims to push customers
who were previously unaware of the firms products into buying them. It is the role of
personal selling to capitalize on preceding communications and close the sale. Personal
selling and other communications tools should contribute to an overall communications
strategy. To achieve this requires sales to be managed effectively in terms of recruitment,
selection, training and planning and control. This is critical and it is to this area and the
elements within it that we now turn our attention.
RECRUITMENT AND SELECTION OF SALESPEOPLE
Salespersons vary in accordance with the product/service to be sold and the nature of the
selling situation. We set out four key elements in a typical sales job description:
1. Responsibility: The representative is responsible directly to the sales manager.
2. Objective: To achieve the annual sales target across the product range in the area for
which the salesperson is responsible as economically as possible and within the limits of
company policy.
3. Planning: To be familiar with company policy plus the ability to plan and achieve defined
objectives within the limits of that policy. To submit a periodic plan for a specific territory to
higher management.
4. Implementation: To act as a link between customer and head office; organize travel
itinerary effectively; develop skill in selling; maintain and submit accurate records; gather
market intelligence and report this to head office; assess potential of sales territory in terms
of time available for visits, outlets for company products and activity of the opposition;
protect and promote the company image; protect the companys business by avoiding
unnecessary expense; be a good team member, and set a good example by maintaining
loyalty towards superiors.
asking questions. It is also about being accommodating. If a buyer sets a time limit, this should
be respected, although an offer to stay longer is often necessary and can be useful. Mention
should also be made at this early stage of other business to be dealt with, such as expediting
invoices due for payment. Such matters should be discussed and settled at the beginning of
the meeting in the knowledge that it will then be simpler to discuss the real business on hand.
3. Preparation and demonstration Salespersons should a list major selling points relating to
the products or services they are selling. The most important of these will be points that give
some advantage over competitors products. In the presentation and demonstration the
salesperson should concentrate on the unique sales propositions (USPs) that are appropriate
to that particular customers needs and interests. In a sales situation involving the need for
a sales presentation or a demonstration, the salesperson should be prepared for this and
secure the potential customers active involvement. What should be avoided is running both
the demonstration and presentation together, as this can be confusing. The salesperson
should use terms at a degree of technical detail that the customer can understand. During
the presentation the salesperson should ask questions and listen to the answers to probe the
customers interests further. Some products are impossible to demonstrate and here the
salesperson should use models or audiovisual aids. A salesperson should avoid being too
long-winded or sales might be lost. Selling signals as simple as the buyer looking at his or
her watch should be sought and attempts then made to close the sale as over-presentation
often loses a sale.
4. Negotiation The principal role for the salesperson is to know the limits of acceptance and
nonacceptance. The salesperson may negotiate with the customer aspects like price,
discounts, credit and selling rights. Often the final margin of negotiation is retained by the
sales manager. The salesperson should obtain as much information as possible about the
buyers needs and level of potential business and assess its potential worth. Concessions
should be held back as long as possible. If not, they cease to be concessions. Negotiation is a
key element of major sales activities.
5. Overcoming objections These might be commercial objections that relate to matters like
price, credit or delivery. These are common and salespersons should be trained in techniques
for handling them. An objection on commercial grounds could be a disguise for a real
objection or even simply be a buying ploy e.g. a buyer might argue that a competitive product
has a better finish, but not fully explain how the quality of finish is better. When it is a
disguise, or excuse, it is up to the salesperson to discover, by shrewd questioning, the real
objection. A skilled salesperson can use customer objections to close a sale by suggesting
that if the objection is answered, will this result in a sale. However organizational buyers are
experienced enough to recognize when salespeople are using objections as a closing
technique, and will be skilled enough to be able to pose an apt reply.
6. Closing the sale The objective of most sales interviews is to obtain a sale, although others
might be to discuss matters like service provision. There are a variety of closing techniques,
which the salesperson can use:
Basic close: when the salesperson thinks there is a sale and starts filling in the order
form;
Alternative choice: offer a choice as a trial close, e.g. Do you want grey or black?
Summary questions: from a prepared list, ask the buyer questions like: Is this a
problem? Here an answer of no might represent a step towards closing a sale;
Closing on a final objection: if a final objection still exists, identify it and then offer to
do something about it. The customer cannot then object any more.
7. Follow-up is needed to avoid loss of contact or to bring about repeat business. After
closing a sale it is important that the salesperson ties up loose ends such as delivery times.
To this end a follow-up call should be made, and if unforeseen problems occur, the
salesperson can rectify them and not lose the sale or future business.