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Email: [email protected]
INDUSTRIAL MANAGEMENT
(CLASS NOTES OF NABILA MADAM:1 TO 15)
Prepared By,
S. Ehtesham Al Hanif
Department of Mechanical Engineering
Bangladesh University of Engineering Technology
Mobile No: 01670839383
Email: [email protected]
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
Lecture: 01
Characteristics of organizations:
1) Structure2) Resource3) Goal4) PeopleBUET: educational organizations
Definition of organization:
Two or more people work together in a structured way to achieve a goal or set up goals.
Management:
The process of planning, controlling, leading and organizing the work of organizations members
and of using all available organizational resources to reach the stated organizational goal
Manager:
Organizational members who tell what to do and how to do
Efficiency: doing things right
Effectiveness: doing the right things
Plan: short time thinking
Mission: long term thinking to make successful plan
Vision: long term thinking to make future better
Interactive management process:
Fig: interactive management process
Types of manager:
1) Front line manager2) Middle line manager3) Top line manager
(1) Front line manager: dealing with bottom line such as assistant manager, area manager,supervisor and labor etc
(2) Middle line manager: dealing with co-ordination such as GM, marketing manager, industrialmanager etc
Planning
Leading
OrganizingControlling
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
(3) Top line manager: dealing with top level such as CEO, COO, MD, chairman, president, vice-president etc
Based on works:
1) Functional manager2) General manager
(1) Functional manager: responsible for a functional work. Such as HR manager, marketingmanager, operation manager etc
(2) General Manager: having combined responsibility to observe a group of work or responsible forwhole function. Responsible for a complex unit, a company or its subsidiary or an independent
operating division
General Manager
Functional manager
Managerial skill or management level and skill:
1) Technical skill2) Conceptual skill3) Human skill(1) Technical skill: ability to use techniques, procedures and knowledge of a specialized field(2) Conceptual skill: ability to co-ordinate and iterate all of organizations activity(3) Human skill: ability to work with motivation and understand other peopleTop manager T H C
Middle manager T H C
Front line manager T H C
Henry Mintzberg:
Role of a manager:
(1) Head(2) Liaison inter personal role(3) Symbol(4) Monitor(5) Share information informational role(6) Spokes person
Industry
Plant 1 Plant 2 Plant 3
Marketing FinanceProduction
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
(7) Take initiative(8) Handle disagreement(9) Allocate and resource decision making role(10)Negotiation
Lecture: 02
[1] Scientific management theory:- Proposed by Frederick W. Taylor- Title: father of scientific management- Book: principles of scientific management- Worked in Pennsylvania (Midville steel company)Four basic principles:
(1) Development of a true science management(2) Scientific selection of worker(3) Scientific education and development of worker(4) Intimate, friendly co-operation between management and worker
Differential Rate System:
- Proposed by Henry L. Grantt- Accomplishing work timely to get bonus for that- Example: If one worker did his job finish in time he will get 50 cent bonus for that.
Supervisor will get bonus for each worker under him do work in time
Fatigue and motion study:
- Proposed by Frank B. & Lillian Gilberth:- Psychologist- By research they reduce body movement to finish a work- Example: For exterior brick: 18 movements to 5 and interior brick: 18 movements to 2
[2] Classical organizational theory:
- Proposed by Henry Fayol- Fayols 14 principles of management- Those principles are:
o Division of labor (work divided into small part)o Authority (ordering power of manager)o Discipline (doing ones work in time by following regulations)o Unity of command (worker will obey ones order)o Unity of directiono Subordination of individual interest (priority to group interest)o Centralization (lessen worker decision making nature)o Order (right person at right place and time)
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
o Remuneration (wage will be enough with respect to his job)o Equity (to grow mentality to not to give up job)o Stability of staffo Initiativeo Team spirito The hierarchy
[3] Bureaucratic Management:
- Proposed by Max Weber- Rules and regulation strict environment impersonal
Organizational Behavior:
- The field of study concerned with the action of people at workHawthorne experiment:
- Proposed by Elton Mayo- Worked in Western Electronics Company: how to increase productivity of worker bychanging variables
- Why he called: select a test group and increase light intensity and observed that productivityincreased and then he reduced the light intensity and make it close to dark but there is no
certain amount of change in production. So it is not a production rate factor. By increasing
wage of that group nothing changed. So the company called Elton Mayo ( Professor of
Harvard University)
Hawthorne Effect:
Employees would work harder if they believe management is concerned about their welfare and
supervisor paid special attention to them. This phenomenon is known as Hawthorne Effect.
Lecture: 03
Behavioral Science Approach:
- Proposed by Abraham Maslow- Known as Maslows Hierarchy of Need- Provided by organization
Self Actualization Need (activity to develop itself)
Esteem Need (honor, pride)
Social Need (love, affection, friendship)
Safety and Security Need (shelter)
Physiological Need (food)
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
Early views of motivation:
1) F.W. Taylor2) Human relations model by Elton Mayo3) Human resources model by McGregor
(1) Taylor: manager determined the most efficient way to do repetitive jobs and motivate workerswith the system of wage initiative.
(2) Elton Mayo: boredom and repetitiveness of many tasks reduce motivation while social contacthelped to create and sustain motivation
(3) McGregor: Theory X and Theory YContemporary views of motivation:
(1) Need theory : (a) Maslows need theory (b) ERG theory (c) Two factors theory(2) Reinforcement theory(3) Equity theory(4) Goal setting theory(5) Expectancy theorya) Maslows need theory:
A satisfied need is not a motivation. It will be added with previous Pyramid.
b) ERG theory:a. Proposed by Clayton Alderferb. Sub theory:
i. Existence theory ( fundamental needs)ii. Relatedness theory ( social, love, esteem, pride, friendship)
iii. Growth theory ( self actualization)c. Pyramid of need will go both in up and down directiond. When higher needs are frustrated lower needs will return
Lecture: 05
c) Two factors theory:a. Proposed by Fredrick Herzbergb. There are two types of facto in case of job satisfaction.c. Those are:
i. Satisfier or motivating factor: 1753 items or factorsii. Dis-satisfier or hygiene factor: 1844 items or factors
Need Drive
Satisfaction Action
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
Equity theory:
Ratio between individuals job input and job rewards.
Expectancy theory:
People choose how to behave from among alternative behavior based on this expectation of
what there is to gain from each behavior.
-50 -40 -30 -20 -10 0 10 20 30 40
Work Environment
Relationship with Superviser
Salary
Supervision
Company Policy
Growth
Responsibility
Work itself
Recognition
AdvancementHygiene Factor
Motivator
-100 -80 -60 -40 -20 0 20 40 60 80 100
Motivator
Hygiene Factor
Percentage of Frequency
All factors contributin to ob satisfactionAll factors contributin to ob dissatisfaction
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
Four Assumptions:
(1) Behavior is determined by a combination of factors in the individual and environment(2) Individuals make conscious decision about their behavior(3) Individuals have different needs, desired and goals(4) Individuals decide between alternative behaviors on the basis of expectation that a given
behavior will lead to a desired outcome.
The major components:
(1) Performance (outcome expectancy)(2) Valence (power to motivate): high or low valance(3) Effort Performance efficiency (to give same effort for desired outcome every time)
Reinforcement Theory:
A manager wishes to change employee behavior must change the consequences of behavior.
Four methods of behavior modification:
(1) Positive reinforcement (to be praised for desired work done)(2) Avoidance learning (avoid those work which responsible for unpleasant consequences)(3) Extinction (express distaste to a work by ignoring or avoiding)(4) Punishment (give punishment due to wrong step or bad consequences)
Goal setting theory:
Individuals are motivated when they behave in ways that move them to certain clear goals that
they accept and can reasonably expect to attain.
Assumptions:
(1) Establishment of standard(2) Evaluate whether the standard can be achieved(3) Evaluate whether the standard matches personal goal(4) Standard is accepted goal if it is set, behavior proceeds towards goal
Stimulus Respons Consequence Future Response
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Lecture: 06
The process of directing & influencing the task related activities of group members.
Four aspects: -
(1) Other People: Member will respect him as leader(2) Power(3) Values: other member will admire values(4) Influence: influential position over others
Trait approach to Leadership:
(1) Self confidence(2) Extrovert: exception- Abraham Lincoln(3) Tall: exception: Napoleon(4) Bright & Dynamic
Traits must be the results of leadership experience rather than causes of leadership ability.
Behavioral approach to leadership:
1) Manager took all the decisions; Tell the worker how to do their task; closely monitor worker2) Duty is placed to workers will, how they do and what they do to complete the task
Boss Centered Leadership Employee Centered LeadershipUse of authority by manager
Area of freedom for subordinate
LeadershipFunction
Group
Maintenance
Task Related or
Problem Solving
LeadershipStyle
Task OrientedStyle
EmployeeOriented Style
Manager
makes
decision &
announced it
Manager sells
decision
Manager
present idea,
take
su estion
Manager
makes
tentative
decision
subject to
change
Manager
present
problem, get
suggestion,
make
decision
Manager
defines limit,
ask group to
make
decision
Manager permit
employee to
function with
limitation, defined
by superior
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
Ohio state and University of Michigan study:
Lecture: 07
Leadership Grid:
Robert Blake and Mouton
1, 1
1, 9
5, 5
9, 9
9, 1
0
1
2
3
4
5
6
7
89
10
0 2 4 6 8 10
Concernf
orpeople
Concern for production
Low S
High C
High S
High C
Low S
Low C
High S
Low C
Initiatin Structure task oriented S
Consideration(Employeeorie
nted),
Country club manager Team manager
Middle of the road mana er
Im overished mana er
Authorit com liance
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
Lecture: 08
Organizational Design:
The determination of organizational structure that is most appropriate for strategy, people, technology
and task of organization.
Organizational Structure:
The way in which organizations activities are divided, organized and co-ordinated.
Four Building Block:
1. Division of work2. Departmentalization : works are divided into various groups3. Hierarchy : a few sub-ordinate will present and who will be whose under4. Co-ordination: integration in between several departments
Division of work: (Adam Smith)
Breakdown of a complex task into components
i. Advantages: job specialization, so increases productivity & efficiencyii. Disadvantages: boredom, absence of sense of control
Departmentalization:
Combine the task in a logical and efficient manner
Hierarchy:
i. Span of management control:- No. of subordinates reporting directly to a managerii. Chain of command:- A plan that specifies who reports to whom
a. It affects what happens to work relationship in one particular departmentb. Span can affect the speed of decision making
Two types:
Wide span is better as decision making can be fast, chance of break of command is less.
Widespan (flat) Narrow span
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i. Co-ordination: Integrating the activities of separate department in order to persueorganizational goal effectively
ii. Differentiator: Barriers towards co-ordinationLawrence & Lorsch:
1) Perspective : everyone think own as most important than others2) Time orientation3) Interpersonal style (want of explanation of their communication are different for different
person)
4) Formality
Lecture: 09
Classic Approach:(Max Weber, Fredrick Taylor, Henri Fayol)- Bureaucracy- - Organizational structure rigid and well defined- Characteristics:
i. Specialization of activitiesii. Routinization of activitiesiii. Appointment by meritiv. Provision of career opportunityv. Rational, impersonal work climate
Task Technology Approach:(Joan Woodward)
1. Unit production (produce 1 customized unit such as tailor knit customize clothes unit)2. Small batch production ( production process combined with a lot of steps and then assembled)
a. Small batch production: cycle productionb. Large batch production: car production
3. Mass Production (large amount of production of a product from a single machine such as soapfactory)
4. Process production (large process follow line system and example is like: liquid materialproduction)
Classification of production:
i. Unit and small batch productionii. Large batch and mass productioniii. Process production
3 Conclusions:
1) The more complex the technology the greater the number of manager and managerial level
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
2) The span of management for first level manager increases as we move from unit to massproduction but decreases as we move from mass to process production
3) As technology become complex, administrative and clerical staff increases
Functional Organization:
- Local pharmaceutical company or local bankDisadvantages:
a. Hierarchy becomes complex when the company becomes largerb. Accountability diminishes. It become impossible to find out the reason of error of a work
Advantages:
a. Easier supervisionProduct / Market Organization:
Division by
i. Geographyii. Product
iii. ConsumerExample: Multinational Companies
(1)Geography:
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
- Example: Shevron, Unilever, Nestle etc.(2)Product:
- Example: Beximco, Rahimafrooz etc(3)Consumer:
Advantages:i. High work performance and good co-ordination
ii. Accountability is cleariii. Burden on central management is eased
Disadvantages:
i. Very expensive structureMatrix Structure:
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
- Example: construction companyAt first they take a project in their hand. They involve human resource at different part.
After finishing that work, they transfer their HR to another project.
Advantages:
i. Cost saving flexibilityii. No un-necessary duplication of human resource
Disadvantages:
i. If there is absence of co-ordination among the managers then the total structurewill fail down.
Lecture: 10
Market Place Physical existence present ( Bashundhara City)
Market Space Digital Existence (Online Selling & Buying, Share Market)
Core Concept of Marketing:
i. Need: generally necessity of something is indicated (we need food)ii. Wants: specifically mentioned whats need (we need food but it must be burger)iii. Demand: ability or capability to fill-up the need (want to buy Mercedes Benz)
Scope of Marketing:
1) Goods : physically something is available (example: rice)2) Service : what we cant find out physically (example: doctor, beauty parlors, hospital, airlines)3) Experience : gathering experience by visiting park, cinema etc4) Events : sponsorship in sports (puma, nike, soft drinks company)5) Person : celebrity marketing6) Places : picnic spot, jamuna resort7) Property : real estate business8) Information : newspaper, internet9) Organization : private university, English medium school10)Idea : Revlon company
In factory we make cosmetics but in shop we sell hope
Types of Market:
i. Consumer marketii. Business marketiii. Non-profit and govt. market
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
In details of those markets are given below:-
(1) Consumer market:a. a place where normal customer buying productsb. Number of buyers are much more but selling lessc. Advertisement so high
(2) Business market:a. Number of buyers are less but everyone buy huge quantityb. Less advertisement
(3) Non-profit and govt. market:a. Maximum time, products are selled at less price than normal market conditionb. Less or no profit sector
Business Concept:
1) Production concept2) Product concept3) Selling concept4) Marketing concept5) Social marketing concept
In details of those markets are given below:-
1) Production concept:a. As less price as possible, products are soldb. Example: Chinese company
2) Product concept:a. Whatever the price, quality of product is quite good or highb. Example: general motorsc. No input taken from customersd. Consumer will buy product if the quality of product is high
3) Selling concept:a. Products are sold by giving pain to customerb. Example: lottery ticket, insurance
4) Marketing concept:a. Customer targetb. Input taken from customerc. Product will be produced depending on customers demand and specificationd. Example: nokia, Toyota, Kohinoor etc producing their product for every class customere. Production process is going in a continuous progress process
5) Social marketing concept:a. Presence of social messageb. Example: aarong (local handicraft product), deshal (local brand for clothing, bags)
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
Lecture: 11
Market segments:
Identify the distinct group of customers and product will be manufactured according to their demand
(1) Geographic segmentation: Hilton hotel built different type or models hotel dependent on thelocation such as:- Bangladesh and middle east have difference in Hilton hotel; Sopno
(Bangladeshi company-shopping store house), having their shopping mall size based on location
such as gulshan, dhanmondi etc arena difference.
(2) Demographic Segmentation:a. Age and life cycle stage: Milk of NIDO having age limit (full cream for children, half
cream for middle age)
b. Gender: Fair & Lovely is manufactured for both male and femalec. Generation:
i. 1946-1964: baby boomersii. 1964-1984: generation X
iii.
1984 to present: Generation YBased on generation clothes have variation
d. Income: Nokia company (mobile set of different price)e. Social class: products are manufactured based on particular social class (in foreign
country high class automobile are available such as Roles Royce, Limozine, Mercedes
etc)
(3) Psychographic segmentation:a. Life style: conscious people eat sugar free food. Who are late sleeper, take tea or coffeeb. Personality: human normally choose dress based on their personality. Example: dress-
up varies from public university to private university & English medium school
c. Values: news-papers kept on household based on political view point(4) Behavioral Segment:
a. Occasion: increases in price of cattles due to eid-ul-fitr and kurbanib. User status: ex-user, non-user, first time user (telecom company of Bangladesh: closed
sim open bonus for ex-user, decrease call rate for non-user, subscription of zoom 2
months free for first time user)
c. Usage rate: low, medium, high (grammen do business deal with corporate company tograb customer or user)
d. Loyalty status: hard core loyal (loyal to a fixed brand always;example: Bata), split loyal(loyal to more than one brand; example: Bata and Apex shoe), shifting loyal (loyalty
towards brand is change after few days)
e. Switches: whatever found they buy that one not follow brand loyalty(5) Buyer readiness stage:
a. Some people fully aware, some people fully un-aware and some people know few aboutnew product (marketing also done based on this)
(6) Attitude:Vote marketing scenario
a. Enthusiastic: just light discussion is enoughb. Positive: needed slight reinforcementc. Indifferent: try to teach or try to make understandabled. Negative: cant be motivated
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
e. Hostile: never want to go there for convincing evenEffective segmentation:
(1) Measurable:(2) Substantial: market should be large enough(3) Accessible: market should be accessible (example: pepsi company established place for them by
removing the cocacola compaies power over market)
(4) Actional: different action should be taken(5) Differentiable:
Selecting and entering target market:
(1) Single segment concentration: targeting a small market by just a single product (such as: vox-wagen, porche, puma start car manufacturing just for one sector of a market)
M1 M2 M3
P1
P2
P3
(2) Specialization: targeting different market by different product (such as: star world, star sports,star movies, mobile companies etc)
M1 M2 M3
P1
P2
P3
(3) Product specialization: targeting all type of market by just a single product (microscopemanufacturing for doctor, engineer etc)
M1 M2 M3
P1
P2
P3
(4) Market specialization: for a particular market, production of every type of products (example:jordana produces every types of products for female consumer)
M1 M2 M3P1
P2
P3
(5) Full market coverage: producing different types of product for all types of market coverage(example: sony company, toshiba etc)
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
M1 M2 M3
P1
P2
P3
Lecture: 12
What will be the life cycle of a product after it is launched in market?
Example:
Intro apples ipod, wi-max (Qubee, Banglalion)
Growth laptopMaturity car, desktop
Decline type writer, cd, newspaper, normal camera
Growth-lumped maturity pattern:
At first when a product launched in market having great demand but after a long time it will be mature.
Example: apples i-phone, djuice sim etc
Introduction
Growth
MaturityDecline
Due to technical
advancement, product will
be obsolete in market
Time
Salesrevenue/p
rofit
Time
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
Cycle Recycle pattern:
Example: Pharmaceuticals Company
When a product come to the decline stage then those company manager increase their advertisement
so that there could create sharp change in demand.
Scalloped Pattern:
Example: mobile phone
At first mobile phone set are used for communication purpose only. After stabilized, it enriched its
features. Such as: camera built in, walk-man, internet browsing etc. its in ever increasing pattern in the
field of its own development.
Buying Behaviour:
(1) Complex buying behaviour(2) Dissonance reading buying behaviour(3) Habitual buying behaviour(4) Variety seeking
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
In details discussed below:
(1) Complex buying behaviour:After a lot of thinking consumer buy a product. Example: car, laptop etc.
(2) Dissonance reading buying behaviour:Even after buying costly product, consumer does not satisfied fully. Example: buying carpet,
dress (at the time of buying its feeling good but after buying consumer think that this was not
that much better)
(3) Habitual buying behaviour:Consumers buy a product without thinking about anything. Example: rice, egg etc.
(4) Variety seeking:Variation and variety checking case, we buy some product such as ice-cream, biscuit, chocolate.
Designing competitive strategies:
(1) Market leader(2) Market challenger(3) Market follower(4) Market nicher
In details discussed below:
(1) Market leader:Market share is more than 50%. Example: soft drinks - cocacola, food business macdonalds,
mobile GP, computer software - microsoft
(2) Market challenger:After market leader who has majority in share in market and always challenge market leader
Example: warid, baglalink, apple, burger king, pepsi etc
(3) Market follower:Try to alive in the market by producing product as like market leader
(4) Market nicher:Does not compete with others. They poses small customer base. Example: porche, only make
sports car.
Strategy of market leader:
(1) Expanding total market(2) Defending market share:
Tackle other company when they are in competition. Such as: when warid provide any new tariff
offer then GP also provides some offers by reducing their tariff too.
(3) Expanding market shareMarket challenger:
(1) Price discount(2) Cheaper good(3) Improved service (warranty is much more provided by others than Rahimafrooz)(4) Product innovation (throw challenge towards market leader by launching new products)(5) Product pliferation (varieties of goods are used for challenge such as when apple throw
challenge by launching Ipod in market then Microsoft launch Zune)
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
Objectives of Niche Marketing:
It has two main objectives. These are:
(1) Protect Niche marketing(2) Increase customer number
Market Follower:
(1) Counterfeiter: exact copy of market leaders product and launch them in the stable market.Example Zinzira made products
(2) Cloner: copy sophisticatedly. Example: Nokia Nokla(3) Imitator: give their own brand name but copy market leaders product and cheaper in price(4) Adapter: steal idea of product but they improve the product and manufactured that product.
Such as, windows OS copy a lot of thing form MAC.
Lecture: 13
(1)Rankinga. Simplest and oldest method of performance appraisalb. Compare everyone with everyonec. Example:
i. 5 employees are A, B, C, D, Eii. No of choice of ranking = ()
=
= 10
d. Presence of Biasnesse. Complexity arise when ranking system allotted among employees
(2)Person to person comparison:a. Always compares everyone with some key personb. Determine a few characteristics at first
i. Such as (1. Leadership 2. Initiative 3. Dependability)1. Supervisor will give points on those categories (example: if a employee
did good work and show good performance then he will get 5 points
and based on that others will be pointed or scored)
(3)Grading:a. It is first used by US Federal Civil Serviceb. It is categorized into 3 parts (satisfactory, unsatisfactory and outstanding)c. In a few company 5 grade is available (A, B, C, D, E) and also some condition is applicablei. They should give 50% A, 40% B like this. So it is not that easy to give someone
grade.
ii. A few % of employee give those grades which is known as Forced Distribution(4)Graphic Scale:
a. 57% company used this method (most commonly used)b. Every supervisor provided with 1 sheet like below:
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
category Consistently
unsatisfactory
Occasionally
unsatisfactory
Consistently
satisfactory
Sometimes
superior
Always
superior
1 Quality
of work
2 Quantity
of work3 Attitude
4 .
Total 12 categories included in 5 groups
(5)Checklist:a. Most easiest for a supervisorb. Questionnaire provided for employee relatedc. For different employee different types of series of questions are set depending on their
types of work
d. Two option provided for each question (yes and no)(6)Behaviorally anchored rating scale:
a. Behavior expectation scale: what are expected behaviour from an employee
Disadvantages: if we give someone 5 then we can assume that he full-filled every lower
scale. But in reality it may be not true. Who do well in term final he may be not regular
in class.
b. Behaviour observation scale: by observing behaviour supervisor did this rankingExample:
a. Does he say plz & hello to his customer?
Almost never 1 2 3 4 5 Almost always
b. Does he smile?50%< 1 ; 50-64% 2 ; 65-79% 3 ; 80-89% 4 ; 90%> 5 ; 100% almost
always
1. Attendance good
3. Attendance good
5. Get good marks in exam
2. Regular at study
4. Get good marks in CT
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
(7) Essay description:One employee should be ranked among 3 categories and should have to describe behind the
reasons.
(1) Marginal(2) Competitive(3) Excellent
Lecture: 14
Forced choice description:
- Probability is less in case of biased nature towards employee- Pair of question will be provided to supervisor- It is forced to supervisor to answer minimum one Question answer among pair of questions- In each pair all could be positive or negative in nature- This method is not popular because people do not keep the answers in secret- Example 1:
o Can be dependent upon to complete any job assigned?o Gives clear, good instruction to sub-ordinate
- Example 2:o Makes promises that he or she knows cant be kepto Shows favoritism towards some employees
The appraisal program:
- Who is to rate an employee?o immediate supervisor who is in touch always, he will rate that employee at first then
send that report to management)
o Sometimes group appraisal is done to make rating of employee where supervisorand sub-ordinate combined-ly giving rating
- When to rate?o Appraisal made in every 3 month after of jobs of employeeo Rating made in every 6 monthso Better practice to give rating different person at different timeso In general, july in a year is the optimum time to make ratingo Training of the rater: who did rating should be taught how to rate and give solution
of his mistakes in case of rating. Example:
Halo error: comment good or bad depends on just only one characteristics Central tendency error: without knowing or knowing less, sometimes rating
is made and that is common number or type rating
Similar to me error: whom one think like him, rated highly and favoritism Systematic / constant error: (1) too harsh (2) too easy
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8/8/2019 Ipe 481 Nabila Madam
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Industrial Management (S. Ehtesham Al Hanif [ID: 0510035]
Constant error: due to making sequencing error happened. If a employeedid well in 1
st7 question out of 10 then his ranking become good in overall
even after just 7 out of 10 answer
Position error: higher position human got higher rating and lower positionhuman got lower rating
Biases of gender, race, religion:
Lecture: 15
Marketing Management
(From Sheet)