1. introduction to engineering management

© Department of Mechanical Engineering
MS-301EngineeringManagement
Engineering
Management
Lecture By
Prof. Dr. Naseer Ahmed
Email: naseer@cecos.edu.pk
Department of Mechanical Engineering
CECOS University

Management is
• Getting things done through people.
• The process of achieving organizational goals by
engaging in the four major functions of planning &
decision-making, organizing & staffing,
directing/leading, and controlling.
• Identifying a “force”/group of people whose job is to
direct the effort and activities of other people towards a
common organizational objective.
• The performance of conceiving and achieving desired
results by means of group effort consisting of utilizing
resources, that will determine the success and failure of an
organization.

Chinese proverb
• “If you are planning for one year – plant
rice. If you are planning for ten years –
plant trees. But if you are planning for 100
years – plant people!”

Engineering Management is…
• The process of designing and maintaining an
environment in which, individuals, working
together in groups, efficiently accomplish
organizational goals/objectives.
– Management applies to any kind of organization.
– It applies to all managers at all organizational
levels.
– Managing is concerned with productivity, which
implies effectiveness and efficiency.

Functions of Management
• Planning & Decision-Making
– Involves selecting goals and objectives, as well
as the actions to achieve them; it requires
decision-making, that is choosing the “best” from
among alternatives.
• Organizing
– Involves establishing an intentional structure of
roles for people to fill in an organization.
– The process of allocating and arranging human
and non-human resources so that plans can be
carried out successfully.

• Staffing
– Involves filling, and keeping filled, the positions in
the organization structure.
– Process by which managers select, train,
promotes, and retires subordinate.

• Directing/Leading
– Influencing people so that they will contribute to
organizational and group goals.
• Controlling
– Measuring and correcting individual and
organizational performance to ensure that events
conform to plans
– Facilitates the accomplishment of plans.
– The process of regulating organizational activities
so that actual performance conforms to expected
organizational standards.

Managerial functions and the
organizational hierarchy

Managerial levels
• Strategic Managers who are ultimately responsible for the
entire organization. Typical titles include CEO, “President”,
“Executive Vice President”, “Executive Director”, “Senior
Vice President”, or “Vice President”.
• Tactical Managers located beneath the top levels of the
hierarchy who are directly responsible for the work of
managers at lower levels. Titles include “Manager”,
“Director of”, “Chief”, “Department Head”, and “Division
Head”.
• Operational Managers at the lowest level of the hierarchy
who are directly responsible for the work of operating (non-
managerial) employees. Often have titles that include the
word “Supervisor”.
Top
Middle
First line

Managerial Skills
Conceptual
Skill
• The cognitive ability to see the organization as a
whole and the relationships among its parts.
Human
Skill
• The ability to work with and through other people
and to work effectively as a group member.
Technical
Skill
• The understanding of and proficiency in the
performance of specific tasks.

Management Skills and levels

What managers actually do
• Unrelenting Pace
– Managers began working the moment they arrived
at the office in the morning and kept working until
they left at night. (e.g. Rather than taking coffee
breaks they usually drank their coffee while they
attended meetings, lunches were almost eaten in
the course of formal of informal meetings.
• Variety, and Fragmentation
– Managers handled a wide variety of issues
throughout the day. (e.g. Awarding a retirement
plaque to discussing the bidding on a multi-million-
dollar contract).

What managers actually do
• Verbal Contacts and Networks
– Managers showed a strong preference for verbal
communication and relied heavily on networks. A
network is a set of cooperative relationships with
individuals whose help is needed in order for a
manager to function effectively.

Do you really want to become a
manager?
• Here are some of the issues would-be managers
should consider before deciding they want to
pursue a management career:
• The increased workload.
– It isn’t unusual for managers to work 70-80 hours
per week, and some work even longer hours. A
manager’s job always starts before a shift and end
hours after the shift is over.

manager?
• The challenge of supervising former peers.
– This issue can be one of the toughest for new
managers.
– They frequently struggle to find the right approach,
with some trying too hard to remain “one of the
gang”, and others asserting their authority too
harshly.
– In almost all cases, the translation from a peer-to-
peer relationship to a manager-to-subordinate one
is challenging and stressful.

manager?
• The headache of responsibility for other people.
– A lot of people get into management because like
the idea of having power, but the reality is that
many managers feel overwhelmed by the
responsibility of hiring, supervising, and
disciplining others.

manager?
• Being caught in the middle.
– Except for those in the top echelons, managers
find themselves acting as a backstop, caught
between upper management and the workforce.
– Even when managers disagree with the decisions
of the top executives, they are responsible for
implementing them.

Excellent managers are/have
good communicator
acquire the skills of listening, speaking, reading, and
writing
Integrity
“living it myself before leading
others”
Flexible
multi-tasker, imaginative and
innovative
focused
try to see the “big picture”
within the forest of details
committed
willing to do whatever it takes
attain organizational success
people-oriented
knows that people’s feelings are
important
gratitude
“give credit where it is
due”

Other management aspects
Characteristics of excellent and most admired
managers.
• Productivity, Effectiveness, and Efficiency.
• Managing – Science or Art?
• History/Evolution of Management Thought.

Productivity, effectives and
efficiency
• Productivity is an index that measures output
(goods and services) relative to the input (labor,
materials, energy, and other resources) used to
produce them.
• Effectiveness means the capability of producing
an effect. (doing the "right" things)
• Efficiency is a measure of how well a certain
aspect is performing. (doing the things “right”)

Is Management a Science or an Art
Definitions according to Webster's College
Dictionary:
• Art – “skill in conducting any human activity”
• Science – “any skill or technique that reflects a
precise application of facts or a principle”

The evolution of management
theory
• Began in the industrial revolution in the late 19th
century as:
– Managers of organizations began seeking ways to
better satisfy customer needs.
– Large-scale mechanized manufacturing began to
adopt small-scale craft production in which goods
were produced.
– Social problems were developed in the large
groups of workers employed under the factory
system.
– Managers began to focus on increasing the
efficiency of the worker-task mix.

theory

theory
• Adam Smith (18th century economist)
– Observed that firms manufactured pins in one of
two different ways:
• Craft-style - each worker did all steps.
• Production - each worker specialized in one step.
– Realized that job specialization resulted in much
higher efficiency and productivity
• Breaking down the total job allowed for the division
of labor in which workers became very skilled at
their specific tasks.

theory
• Frederick Winslow Taylor
– “Father "of Scientific Management (systematic
study of the relationships between people and
tasks for the purpose of redesigning the work
process for higher efficiency”) in the late 1800’s to
replace informal rule of thumb knowledge.
– Taylor sought to reduce the time a worker spent
on each task by optimizing the way the task was
done.

theory
Taylor’s Four Principles of Scientific Management
• Scientifically study each part of a task and develop
the best method for performing it.
• Carefully select workers and train them to perform
the task using the scientifically developed method.
• Cooperate fully with workers to ensure that they use
the proper method.
• Divide work and responsibility so that management
is responsible for planning work methods using
scientific principles and workers are responsible for
executing the work accordingly.

theory
• Frank and Lillian Gilbreth
– Refined Taylor’s work and made many
improvements to the methodologies of time and
motion studies.
– Time and motion studies
• Breaking up each job action into its components.
• Finding better ways to perform the action.
• Reorganizing each job action to be more efficient.
– Also studied worker-related fatigue problems
caused by lighting, heating, and the design of tools
and machines.

theory
Max Weber
– Developed the concept of bureaucracy as a formal
system of organization and administration
designed to ensure efficiency and effectiveness.

theory
• Weber principal of bureaucracy

theory
Weber’s Five Principles of Bureaucracy
• Authority is the power to hold people accountable
for their actions.
• Positions in the firm should be held based on
performance, not social contacts.
• Position duties are clearly identified so that
people know what is expected of them.
• Lines of authority should be clearly identified
such that workers know who reports to who.
• Rules, standard operating procedures (SOPs),
and norms guide the firm’s operations.

theory
• Henri Fayol
– Synthesized various tenets or principles of
organization and management
– He published "The Principles of Scientific
Management" in the USA in 1911

theory
Fayol’s 14 Principles of Management
• Division of work – divide work into specialized
tasks and assign responsibilities to specific
individuals.
• Authority – delegate authority along with
responsibility.
• Discipline – make expectations clear and
sanction violations.
• Unity of command – each employee should be
assigned only to one supervisor.
• Unity of direction – employees’ efforts focused on
achieving organizational objectives.

theory
• Subordination of individual interest to the general
interest – the general interest must predominate.
• Remuneration – systematically reward efforts that
supports the organization’s direction.
• Centralization – determine the relative
importance of superior and subordinate roles.
• Scalar chain – keep communications within the
chain of command.
• Order – order jobs and material so they support
the organization’s direction.

theory
• Equity – managers should be kind and fair to
their subordinates .
• Stability of tenure – management should provide
orderly personnel planning and ensure that
replacements are available to fill vacancies.
• Initiative – employees who are allowed to
originate and carry out plans will exert high levels
of effort .
• “Esprit de corps” – promoting team spirit will build
harmony and unity within the organization.

Approaches to Management
• Empirical or Case Approach
– Studies experience through cases.
– Identifies successes and failures.
• Contingency or Situational Approach
– Managerial practice depends on circumstances (i.e., a contingency or
a situation).
– Contingency theory recognizes the influence of given solutions on
organizational behaviour patterns.
• Mathematical or “Management Science” Approach
– Sees managing as mathematical processes, concepts, symbols, and
models.
– Looks at management as a purely logical process, expressed in
mathematical symbols and relationships.
• Decision Theory Approach
– Focuses on the making of decisions, persons or groups making
decisions, and the decision-making process.
– Some theorists use decision making as a springboard to study all
enterprise activities. The boundaries are no longer clearly defined.

• Re-engineering Approach
– Concerned with fundamental re-thinking, process analysis, radical re-
design, and dramatic results.
• Systems Approach
– Systems have boundaries, but they also interact with the external
environment; that means organization are open systems.
– Recognizes the importance of studying interrelatedness of planning,
organizing, and controlling in an organization as well as in the many
subsystems.
• Socio-technical Approach
– Technical system has a great effect on the social system (personal
attitudes, group behavior).
– Focuses on production, office operations, and other areas with close
relationships between the technical system and people.

• Group Behavior Approach
– Emphasizes behavior of people in groups.
– Based on sociology and social psychology.
– Primarily studies group behavior patterns.
– The study of large groups is often called organizational behavior.
• Interpersonal Behavior Approach
– Focuses on interpersonal behavior, human relations, leadership, and
motivation.
– Based on individual psychology.
• Cooperative Social Systems Approach
– Concerned with both interpersonal and group behavioral aspects
leading to a system of cooperation.
– Expanded concept includes any cooperative group with a clear
purpose.

• McKinsey’s 7-S Framework
– The seven S’s are (1) strategy, (2) structure, (3) systems, (4) style, (5)
staff, (6) shared values, and (7) skills.
• Total Quality Management Approach
– Focuses on providing dependable, satisfying products and services
(Deming) or products or services that are fit for use (Juran), as well as
conforming to its quality requirements (Crosby).
• Management Process or Operational Approach
– Draws together concepts, principles, techniques, and knowledge from
other fields and managerial approaches.
• Managerial Roles Approach
– Original study consisted of observations of five chief executives.
– On the basis of this study, ten managerial roles were identified and
grouped into interpersonal, informational, and decision roles.

The managerial role approach
• Managerial Roles
1.Interpersonal Roles – grow directly out of the
authority of a manager’s position and involve
developing and maintaining positive relationships with
significant others.
2. Informational Roles – pertain to receiving and
transmitting information so that manager can serve
as the nerve centres of their organizational units.
3. Decisional Roles – involve making significant
decisions that affect the organization.

Specific Managerial Roles

Management Styles
• Administrators
– Administrators look to company rules and regulations for
solving all problems. They live by the book and are usually
very good employees. They show total loyalty to the
organization and have probably been with the company for
many years.
– Administrators are usually not very good communicators,
using the official company channels for all communications,
which are often limited to one level upwards and downwards.
– They are not good in resolving conflict, looking to company
rules for resolving these. In spite of their rather mechanistic
approach.
– They are generally respected by their staff, and by peers, for
their organizational loyalty and knowledge.

Management Styles
• Time Servers
– These are generally older mangers who have lost interest in their job
and environment, and are marking time until retirement or moving to
another job.
– They take all necessary action to avoid stress, and maintain a low
profile within the company.
– Although these mangers are not generally lazy, their low motivation
means that they do the minimum amount of work needed to hold
down a job.
– Decisions are avoided since they could lead to mistakes.
– Personal status is very important to them.
– Time servers usually have good management experience, and if
motivated can become a very valuable asset to the organization.
– They often consider themselves to be “father or mother figures”.
– They understand people and can build an effective team if they try.
– They recognize achievements in others and are ready to acknowledge
them.

Management Styles
• Climbers
– These manager are driven by extreme personal ambition and
will sacrifice everything, including self and family, to get to the
top of the corporate ladder.
– They want to achieve and to be seen to have achieved,
especially by those in a superior position.
– Climbers will pursue personal advancement by fair means or
foul. However, they become demotivated if this does not show
quick results, and this can eventually lead to stress.
– Self interests come before those of the organization, and
peers will be fought in order to gain an advantage and to build
an empire.
– Status is important but only as a sign of seniority.

Management Styles
• Generals
– This is usually a younger person who exhibits lots of energy.
– The general likes to rule and manipulate power, but is
achievement oriented: power is used to get tasks done.
– Generals work extremely hard, driving themselves and those
around them.
– Generals are sociable and mix well at all levels. They usually
get their way with peers by overwhelming, although peers can
resent this if it is done too often.
– Status is important to generals, but for the luxury associated
with it, not as a symbol of seniority.
– They are strong-willed individuals, often with the same
characteristics as a self-made entrepreneurs.
– Usually they are optimistic about the future, sometimes
wrongly.

Management Styles
• Supporters
– Supporters maintain a balanced view about the world, the
organization, subordinates, and themselves.
– They are usually experience managers who are knowledgeable in
management techniques and apply them where they can.
– Supporters work through people in achieving their aims.
– They are good at delegation and develop their subordinates by giving
them responsibility.
– The people working under them are highly motivated.
– Supporters’ personal technical knowledge is usually lacking, but this
compensated for by the support they themselves receive from the
specialists within their department.
– Supporters are good facilitators and are very good in managing
change.
– They recognize achievement and reward it.
– They tend to be loners and do not mix well with peers.
– This means that they can often miss out on information from the
grapevine, so that they are not always well-briefed on organizational
matters.

Management Styles
• Nice Guys
– These managers are usually weak-willed and are more
interested in being liked, by peers and subordinates,
than in achieving targets.
– They do not criticize their subordinates, even when they
are poor performers, and may in fact support too much,
so unconsciously retarding their development.

Management Styles
• Bosses
– Bosses are extremely inflexible and are often mistaken for
strong-minded people.
– Usually, they are only strong talkers, and hide behind abusive
language.
– They try to terrorize subordinates and peers, creating conflict
to emphasize their own power.
– In the short-term, they can show results, but in long-term they
are very destructive, causing more harm than good.
– They are insecure in themselves and get security by
humiliating others in public.
– They advance by pointing out the mistakes of others, and not
by their own achievements.

Assignment No. 1
• Write the characteristics of your dream manager

1. introduction to engineering management

More Related Content

What's hot (20)

Similar to 1. introduction to engineering management (20)

More from Jamshid khan (9)

Recently uploaded (20)

1. introduction to engineering management