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The term industry connotes different things to different people. For a manufacturer it implies the
various processes involved in manufacturing a product. For a historian, it signifies the evolutionary
stages of mechanization in the production process. For an economist, it amounts to the distribution
of income which the industry earns to the various factors of production. For a politician it stands for
framing legislation governing various aspects of an industry. For an entrepreneur, setting up an
industry is an opportunity for earning profit and ren.dering tangible service to the social community.
For an employee, industry amounts to a source of earning his livelihood. For a manager, industry
constitutes a how-to-do-it challenge. He is interested in creating something new and in knowing
how-to-do better. For a customer, an industry is a source of getting most of the products required for
day-to-day living. For an environmentalist, an industry is a threatening place as·it endangers the
living beings by means of polluting the atmosphere.
Functionally, by industry we mean a place where raw materials are converted into finished goods
efficiently and economically. Efficiency in production is measured by the quantity and quality of
goods produced and economy in production is measured by the minimum cost at which goods are
produced. Quite often the term "factory" is used to denote an industry. But there is a difference
between the two terms. The term factory is used in a narrow sense, whereas the term industry is
used in a broad sense. Industry includes all the factories engaged in the production of similar
products. For example, by sugar industry, we mean all the factories which are engaged in the
production of sugar.
The term "Management" refer to those people, who manage an organization. In other words,
management is the administration of an organization, whether a business, a not for profit
organization or a Government body. Management includes the activities of setting the strategy of an
organization and coordianting the efforts of its employees to achieve the objectives through the
available resources such as financial, natural, technological and human etc.
Function of Management
The most widely accepted functions of management are given by Koontz and O'Donnel, which are
as follows:
• Planning
• Organizing
• Staffing
• Directing
• Controlling
Planning:
It is a basic function of management. Planning is actually deciding in advance – what to do, when to
do and how to do it. Planning is necessary to ensure proper utilization of human and non human
resources.
Organizing:
it is the process of bringing together the physical, financial and human resources and developing a
productive relationship amongst them for achievement of the organizational goals. According to the
Henry Fayol, " To organize a business is to provide it with everything for the proper functioning i.e.
Raw material, Tools, Capital and personnel. Organizing as a process involves.
• Identification of activites
• Classification of activites
• Assignment of Duties
• Delegation of Authority
• Co-ordinating Authority
Staffing:-
The main purpose of staffing is to put right person on the right job. Staffing involves
• Job Anaysis
• Recruitment & Selection
• Training & Development
• Compensation
Directing:
direction is that personal aspect of management which deals directly through influencing, guiding,
supervising and motivating the sub-ordiantes for the achievement of the organizational goals.
Direction has following elements.
a. Supervision b. Motivation
c. Leadership d. Communication
Controlling:
The process of controlling is to ensure that everything occurs in conformity with the standards.
Therefore, controlling has following steps,
Job Analysis and Design - Job analysis is the process of describing the nature
of a job and specifying the human requirements like qualification, skills, and work
experience to perform that job. Job design aims at outlining and organising tasks,
duties, and responsibilities into a single unit of work for the achievement of certain
objectives.
Recruitment & Selection: After job analysis & design phase comes the
recruitement and selection which is the most challenging task for any HR manager. A
lot of attention and resources are required to draw, employ and hold the prospective
employees. A lot of elements go into this function of recruitment, like planning and
forecasting, building a pool of candidates, conducting tests and then interviews and
finally selection of candidates as employees.
Compensation and Benefits: A company can attain its goals and objectives if
it can introduce new ways of providing benefits to the employees. Some of the
benefits given by companies are listed below for our understanding: