E.E-406

EE-406

1-MANAGEMENT: (From old French “management = the art of conducting or directing” & from Latin “manu-agere = to lead by the hand”).

Management characterizes the process of leading and directing all part of an organization, often a business, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible).

This management definition is interesting b/c it traces the root meaning back to the Latin meaning “To lead by the hand”. Lading by the hand implies giving direction that is stronger than just a passing suggestion yet still fairly gentle in approach. Leading by the hand also implies that the person doing the leading is first going where the follower is being lead. The leader is not asking for the follower to do something he is not willing to do himself.

Definition: “The process of reaching organizational goals by working with people and other resources”. Another definition could be – “Knowing that you want people to do is the best way”. Managers must concentrate on reaching organizational goals, and they should use their resources to complete those goals. For many years management is divided into principles, sometimes called functions. Some resources will state that there are five principles and other will say that there are four. For this lesson we will use following four;

1-PLANNING

2-ORGANIZING

3-INFLUENCING

4-CONTROLLING

Some people use decision making as a fifth principle, but we will use decision making as a part of the planning process. Also, some use leading instead of influencing but we like the term influencing better. Certainly leading is a part of influencing but we will discuss the differences b/w leadership and management later is this lesson.

Management is continuing process, and managers are also involves in some way with these principles. These are designed to help manager’s organizational objectives, and good managers will use them.

Manager strive to be effective and efficient and these principles help them. These management principles are universal and applicable to all types of business and organizations.

Each of these principles could be studied in depth for hours; however for our purposes we will take the look at some of the basic ideas behind each of them

1-PLANNING: Determining the organizational goals and deciding how best to achieve them. Planning choosing tasks that must be performed and how and when they will be performed. Planning outlines how to be successful. It takes time, coordination, expertise, and objectivity. Effective planning takes much effort and the ability to take a broad objective vie. Decision making is also included with planning b/c it involves selecting the best course of action to achieve success.

Successful planning is a process. It is first management principle that must be developed and all the others are interrelated to it. It is the foundation for success. Samuel Certo, in the modern management, suggest there are six steps in the planning process:

1-      Stating Organizational Objectives-(The objectives must be clear for proper planning)

2-      Listing alternative  ways to reaching objectives-(A manager should list several available alternatives)

3-      Develop premises upon which each alternative is based-(These premises are assumptions and these assumptions will help you work through the alternatives)

4-      Choosing the best alternative for reaching objectives-(Evaluate the alternative based on your assumptions and choose)

5-      Develop plans to pursue the chosen alternatives-(A manager should develop strategic and tactical plans); &

6-      Putting the plans into action-(Organization can’t benefit until the plans are put into action; both short plans and long range plans)

2-ORGANIZING: It outs plan into action. People are given work assignments that contribute to achieving the goals. Organizing involves using your resources appropriately to reach the organizational goals. Organizing is the primary way by which manager activates their plans. Organizing involves knowing your organization and your people. According to Certo, there should be five steps in organization process:

1-      Reflect on plans and objectives (You must keep these plans and objectives in mind at all times. They guide you through the entire responsibilities or tasks)

2-      Establish major tasks (Determine what are the major tasks or responsibilities)

3-      Divide major tasks into sub-tasks (This is critical step to help you get the details)

4-      Allocate resources (Determines how many peoples and other resources must be devoted to each area) &

5-      Valuate the results of your strategy (Take a critical and objective look at the results)

Organizing involves coordination. Coordinating activities and efforts is crucial to your efficiency and effectiveness as a manager. This helps you organize and manage your resources and better. Encourage initiative and responsibility, while maintaining discipline and defining duties are important aspects of organizing. 

3-INFLUENCING: Guiding the activities of organizations of the organization’s members. Over the year’s influencing has been referred to as motivating, directing or leading. Leading seems to be the term used most frequently these days but we don’t want confuse that with the concept of leadership so we will stay with influencing regardless of the term you use they all mean the same as applied to the management process the ultimate goal for influencing people is to achieve the organization goals. Whether those goals are to increase productivity or to make more money or to safe lives a manager must influence employees to accomplish the goals and missions of the organization. One way to influence people is through affective communication your skill as and effective communicator is a great tool for accomplishing your organization’s goals. If you agree that communicating is the sharing of information than you realize that both verbal and written communications are vital to influencing you employees. Good mangers realize that employees need information to do their jobs and good managers are not afraid to share that information. Good managers also realize that everything they do communicates, whether it is verbal or non-verbal. Communication can be a lesson all on its own, but that is not our intent here. So, just one other comment needs to be made and that is that good manager know the value of feedback. Be sure to keep your door open and allow for feedback from your employees.

4-CONTROLLING: In the context of management controlling is making things happen as planned. Controlling is the continuing process of monitoring the progress being made by your workers. Managers must make sure that the organization is performing as planned and will accomplish its goals. Controlling involves gathering information and measuring performance. The performance must be measure against some standard and then managers must be willing and ready to take corrective action as necessary to get back on track. When thinking about controlling managers must realize tha there are many, many different activities within their responsibility. A manager not only has employees, but also a physical plant or building, inventory, and finances to consider. There are many variables involved with controlling and off course controlling is certainly a continuing process.

In today’s world controlling is a vital part of being an effective manager. Circumstances seem to change more frequently than ever before. Today’s world is more complex and turbulent and that impacts on organizations. Good managers will have planned and be ready when changes occur. However, sometimes circumstances are beyond a manager’s control and the manager must still be ready to make quick, good decisions.

If a manager has established standards and has measured performance then that manager is ready to evaluate and act. One area where managers must have strength of convection is in the area of taking corrective action. These changing circumstances are going to happen and a manager must control what must be done. In decision can run an organization Flexibility and objectivity are important here. A manager must look at his/her resources objectively and then realize that the control system be flexible enough to handle the changes.

2-MANAGERIAL ECONOMICS: (Sometimes referred to as business economics) is the branch of economics that applies microeconomics analysis to decision methods of business or other management units.

As such, it bridges economics theory economics in practice.

It draws heavily from quantitative techniques such as regression and correlation, Lagrangian calculus (linear).

Almost any business decision can be analyzed with managerial economics techniques but is most commonly applied to;

1-RISK ANALYSIS: Various models are used to quantify risk and asymmetric information and employ them in decision rules to manage risk.

2-PRODUCTION ANALYSIS: Macroeconomic techniques are used to analyze production efficiency, optimum factor allocation, costs, economics of scale and to estimate the firm’s cost function.

3-PRICING ANALYSIS: Micro economic techniques are used to analyze various pricing decision including transfer pricing, joint product pricing, price discrimination, price elasticity estimations, and choosing the optimum pricing method.

4-CAPITAL BUDGETING: Investment theory is used to examine a firm’s capital purchasing decisions.

THE NTURE OF MANAGERIAL ECONOMICS:

There are a number of issues relevant to businesses that are based on economic thing or analysis.

Examples of questions that managerial economics attempts to answer are!

1-      What determines whether an aspiring business firm’s should enter a particular industry or simply start producing a new product or service?

2-      Should a firm continue to be in business in an industry in which it is currently engaged or cut its losses and exit the industry?

3-      Why do some professions pay handsome salaries, whereas some others pay barely enough to survive?

4-      How can the business best motivate the employees of a firm?

5-      The issues relevant to managerial economics can be further focused by expanding on the first two of the preceding questions?

In order to answer pertinent questions, managerial economics applies economic theories, tools, and techniques to administrative and business decision-making. The first step in decision-making is to collect relevant economic data carefully and to organize the economic information contained in data collected in such a way as to establish a clear base of managerial decisions. The goals of the particular business organization must then be clearly spelled out. Based on these stated goals, suitable managerial objectives are formulated. The issue of central concern in the decision-making process is that the desire objectives be reached in the best possible manner. The term “Best” in the decision-making context primarily refers to achieving the goals in the most efficient manner, with the minimum use of available resources-implying there be no waste of resources. Managerial economics helps the manager to make good decisions by providing information on waste associated with a proposed decision.

APPLICATIONS OF MANAGERIAL ECONOMICS:

Some examples of managerial decisions have been provided above. The application of managerial economics is, by no means, limited to these examples. Tools of managerial economics can be used to achieve virtually all the goals of a business organization in an efficient manner. Typically managerial decision making may involve one of the following issues:

1-      Decide the price of the product and quantity of commodity to be produced.

2-      Deciding whether to manufacture a product or to buy from another manufacturer.

3-      Choosing the production techniques to be employed in the production of a given product.

4-      Deciding on the level of inventory a firm will maintain of a product or raw material.

5-      Deciding on the advertising on media and the intensity of the advertising campaign.

6-      Makin employment and training decisions.

7-      Making decision regarding further business investment and the mode of financing the investment.  

It should be noted that the application of managerial economics is not limited to profit-seeking business organizations. Tools of managerial economics can be applied equally well to decision problems of nonprofit organizations.

3-ENERGY MANAGEMENT AND AUDIT:

                                     Definition & Objectives of Energy Audit

The fundamental goal of energy management is to produce good and provide services with the least cost and environmental effect.

The term energy management means things to many people. Following two are the definition of energy management.

1---“The judicious and effective use of energy to maximize profits (minimize costs) and enhance competitive positions”.

2---“The strategy of adjusting and optimizing energy, using systems and procedures so as to reduce energy requirements per unit of output while holding constant or reducing total costs of producing the output from these systems”.

The objectives of energy management is to achieve and maintain optimum energy procurement and utilization and;

. To minimize energy costs/waste without effecting production & quality.

. To minimize environmental effects.

                                                            ENERGY AUDIT

Energy audit is the key to a systematic approach for decision making in the area of energy management. It attempts to balance the total energy inputs with its use, and serves to identify all the energy steams in a facility. It quantifies energy usage according to its discrete functions. Industrial energy audit is an effective tool in defining and pursuing comprehensive energy management programme.

As per energy conservation Act, 2001 energy audit is defined as “the verification monitoring and analysis of use of energy including submission of technical report containing recommendations for improving energy with cost benefit analysis and an action plan to reduce energy consumption”.

TYPES OF ENERGY AUDIT: Types of energy audit to be performed depends on:

-          Function and type of industry

-          Depth to which final audit is needed, and

-          Potential and magnitude of cost reduction desired.

Thus energy audit can be classified into the following two types.

1-      Preliminary Audit

2-      Detailed Audit

1-Preliminary Energy Audit Methodology: Preliminary energy audit is relatively quick exercise to:

-          Establish energy consumption in the organization

-          Estimate the scope of saving

-          Identify the most likely (and the easiest areas for attention)

-          Identify immediate (especially no-/low-cost) improvements / savings

-          Identify areas for more detailed study / measurement

-          Preliminary energy audit uses existing, or easily obtained data.

2-Detailed Energy Audit Methodology: A comprehensive audit provides a detailed energy project implementation plan for a facility, since it evaluates all major energy using systems.

This type of audit offers the most accurate estimate of energy savings and cost. It considers the interactive effects of all projects, accounts for the energy use of all major equipment, and include detailed energy cost saving calculations and project cost.

In a comprehensive audit, one of the key element is the energy balance. This is based on inventory of energy using systems, assumptions of current operating conditions and calculations of energy use. This estimated use is then compared to utility bill charges.

Detailed energy auditing is carried out in following three phases;

a-         Phase 1- Pre Audit Phase

b-         Phase 2- Audit phase

c-          Phase 2- Audit phase

        

A Guide for Conducting Energy Audit at a Glance:

Industry-to-industry, the technology of energy audits needs to be flexible.

A comprehensive ten-step methodology for conduct of energy audit at field level is presented below. Energy manager energy auditor me allow these steps to start with and add/change as per their needs and industry types.

TEN STEPS METHODOLOGY FOR DETAILED ENERGY AUDIT:

Step No	PLANE OF ACTION	PURPOSE / RESULT
Step- 1 Step- 2 Step- 3 Step- 4 Step- 5	Phase 1-Pre Audit Phase .Plan and organize                               .Walk through audit                           .Informal interview with energy manager production. .Conduct of brief meeting / awareness program with all divisional heads and persons concerned (2-3 hrs.)               Phase 2-Audit Phase .Primary data gathering process flow diagram, & Energy utility Diagram.                                                                .Conduct survey and monitoring .Conduct of detailed trials experiments for selected energy guzzlers.	.Resource planning, establish / organize an energy audit team                                                                        .Organize instruments and time frame                       .Macro data collection                                                 .Familiarization of process / plant activities               .First hand observation & Assessment of current   level operation practices.  .Building up cooperation                                                .Issue questionnaire for each department                  .Orientation, awareness creation. .Historic data analysis, baseline data collection         .Prepare process flow charts                                       .All service utilities diagram                                           .Design operating data and schedule of operation     .Annual energy bill and energy consumption pattern (refer manual, log sheet, name plate, interview )                                                                                        .Measurements                                                               .Motor survey, insulation and lighting survey with portable instruments for collection of more and accurate data. Confirm and compare operating data with design data.                                                                                            .Trials experiments:                                                                     - 24hrs power monitoring (MD, PF, KWh Etc)             - Load variation trends in pumps, Fan etc.                   - Boilers / Efficiency trials for (4-8 hrs)                         - Furnace / efficiency trials                                              - Equipment’s, performance, experiments Etc.

Step- 6 Step- 7 Step- 8 Step- 9 Step- 10

.Analysis of energy use .Identification and development of energy conservation (ENCON) Opportunities. .Cost benefit analysis .Reporting & presentation to Top Management    Phase 3-  Post-AuditPhase .Implementation and follow Up

.Energy & material balance & energy lost/waste analysis  .Identification and & consolidation ENCON measure                                                                             .Conceive, development and refine ideas                   .Review the previous ideas suggested by energy audit if any                                                                          .Use the brain storming and value analysis techniques   .Contact vendors for new / efficient technology. .Assess technical feasibility, economic viability prioritization ENCON options for implementation                 .Select the most promising projects                              .Priorities by low, medium, long term measures.                                                                                           .Documentation, Report presentation to the Top Management. .Assist and implementation ENCON recommendation measures and Monitor The Performance                                                                                        -Action plan, schedule for implementation                    - Follow-up and periodic review.

CONCEPT OF RENEWABLE & NON-RENEWABLE ENERGY: Renewable energy sources also called as non-conventional energy, are sources that are continuously replenished by natural processes. For example, solar energy, bio-energy-bio fuels grown sustain ably, hydro power etc, are some of the examples of renewable energy sources.

A renewable energy system converts the energy found in sunlight, wind, falling-water, sea-waves, geothermal heat, or biomass into a form, we can use such as heat or electricity. Most of the renewable energy comes either directly or indirectly from sun and wind and can never be exhausted, and therefore they are called renewable.

RENEWABLE ENERGY SOURCES: Although the available quantity of these fuels are extremely large, they are nevertheless finite and so will in principle ‘run out’ at some time in the future. Renewable energy sources are essentially flows of energy, whereas the fossil and nuclear fuels are, in essence, stocks of energy.

MAKING USE OF RENEWABLE ENERGY SOURCES: Using renewable energy is a way that a large number of people can potentially save their money and lower their contribution to proven climatic changes that are caused by the greenhouse gases like carbon dioxide. Unlike the fossil fuels, renewable energy types do not actually release any greenhouse gases.

NON-RENEWABLE ENERGY SOURCES:                                          

1-      Petroleum

2-      Natural Gases

3-      Coal

4-      Nuclear

Un-Conventional Examples:

1        ---   Oil shale

         --  Natural gas hydrates in marine sediment.

TYPES OF RENEWABLE ENERGY: Following are the some types of renewable energy.

1-SOLAR ENERGY: Solar energy is the most readily available and free energy source since prehistoric times. It is estimated that solar energy is equivalent to over 15,000 times the world’s annual commercial energy consumption reaches the earth every year.

Solar energy can be utilized through two different routes, as solar thermal route and solar electric (Solar photo-voltaic) routes. Solar thermal routes uses the sun’s heat to produce hot water or air, coo food, drying material etc. Solar photo-voltaic uses sun’s heat to produce electricity for domestic and other useful purposes.

2-WIND ENERGY: Wind energy is basically harnessing of wind power to produce electricity. Kinetic energy of wind is converted into wind energy. When solar radiations enters earth’s atmosphere, different regions of the atmosphere are heated to different degrees b/c of earth curvature. This heating is higher at the equator and lowest at the poles. Since air tends to flow warmer to cooler region, this causes what we call winds, and this airflow is harnessed in wind mills and wind turbines to produce power.

3-BIO ENERGY: Bio mass energy is a renewable energy source derived from the carbonaceous waste of various human and natural activities. It is derived from by-products of wood industry, agricultural crops, raw material from the forest, house hold waste etc.

Biomass does not add carbon-dioxide to the atmosphere. Its advantage is that it can be used to generate electricity with the same equipment that is now being for burning of fossil fuels.

Biomass is important source of energy and the most important fuel world-wide after coal, oil and natural gas. Biomass offers higher energy efficiency through form of bio gas than be direct burning.  

4-HYDRO ENERGY: The potential energy of falling water captured and converted to mechanical energy by water wheels. Water under pressure flow through a turbine causing it to spin the turbine in connected to generator, which produces electricity. In order to enough electricity, a hydroelectric system requires a location with following features.

Change in elevation or head = 20 feet @ 100 gal/min = 20 watts

Or     100 feet head @ 20 gal/min gives the output.

5-GEOTHERMAL ENERGY: Geothermal power contributes to energy supply by means of electrical power generation and direct heat uses. Hot water is brought from the underground reservoir to the surface through production wells and is flashed to steam in special vessels by release of pressure for generation of power.

6-TIDAL ENERGY: Tidal electricity generation involves the construction of a barrage across an estuary to block the incoming and outgoing tide.

The head of water is then used to drive turbines to generate electricity from the elevated water in the basin as in hydroelectric dams.

                                                  ORGANIZATIONAL BEHAVIOR

Definition: it is the study of individuals and their behavior within the context of the organization in a workplace setting. It is an interdisciplinary field that includes;

-          Sociology,

-          Psychology,

-          Communication and

-          Management.

Definition: Assign task to various individual or group or group to put plan into action.

Organizational behavior is a misnomer. It is the study of how organizations behave, but rather the study of individual behavior in an organizational setting. This includes the study of how individual behave alone, as well as how individuals behave in groups.

The purpose of organizational behavior is to gain a greater understanding of those factors that influence individual and groups dynamics in an organizational setting so that individuals and groups and organizations to which they belong may become more efficient and effective. The field also includes the analysis of organizational factors that may have an influence upon individual and group behavior. Much of organizational behavior research is ultimately aimed at providing human resource management professionals with the information and tools they need to select, train and retain employees in a fashion that yields maximum benefit for the individual employee as well as for the organization.

Organizational behavior is relatively new, interdisciplinary field of study. Although it draws most heavily from the psychological and sociological sciences, it also looks to other scientific fields of study for insights.

1-INDIVIDUAL LEVEL OF ANALYSIS: At the individual level of analysis, organizational behavior involves the study of learning, perception, creativity, motivation, personality, turnover, task performance, cooperative behavior, deviant behavior, ethics and cognition. At this level of analysis, organizational behavior draws heavily upon psychology, engineering and medicine.

2-GROUP LEVEL OF ANALYSIS: At the group level of analysis, organizational behavior involves the study of group dynamics, intra- and inter group conflict and cohesion, leadership, power, norms, interpersonal communication, networks and roles. At this level of analysis, organizational behavior draws upon the sociological and socio-psychological sciences.

3-ORGANIZATIONAL LEVEL OF ANALYSIS: At the organization level of analysis, organizational behavior involves the study of topics such as organizational culture, organizational structure, cultural diversity, inter-organizational cooperation and conflict, change, technology, and external environmental forces. At this level of analysis, organizational behavior draws upon anthropology and political science.

Other fields of study that are of interest to organizational behavior are ergonomics, statistics and psycho-metrics.

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