Eem pm lecture 1

ENGINEERING ECONOMICS &
MANAGEMENT (MS-224)
Lecture-01
Introduction
By: Ijaz Husnain
Lecturer EE
WEC

COURSE OBJECTIVES
How to lead and how to manage projects
efficiently and effectively. Moreover, this
course will create awareness about the
economics considerations involved in
engineering.
2

BOOKS
 Text Book:
“Engineering Economy”, A. Tarquin, Latest Edition.
“Engineering Economy”, Degarmo Latest Edition.
“Economics”, Samaulson, Latest Edition.
 Reference Books:
 Engineering Management, Latest Edition,
by Dr. A.K. Gupta
3

IMPORTANT POINTS
 Dress Code
 Attendance
Class Discipline
Class Participation
Class Timings
4

ATTENDANCE & PLAGIARISM POLICY
 80% attendance is mandatory to appear in the final
exam, as per university's policy
 Please don’t copy from others, and don’t let others copy
your work
 Plagiarism includes:
 copying full or part of class mate’s assignment
 copy text from book, webpage, or paper, etc. without rephrasing
and proper referencing
5
Don’t put the Instructor and yourself in an
awkward situation, follow the Norms

GRADING BREAKDOWN
6
TERM PROJECT WEIGHTAGE (%)
Quizzes 10
Assignments 10
Project 10
Midterm Exam 25
Final Exam 45
100%
 Quizzes can be announced or unannounced
 If missed, ZERO grade will be assigned for that quiz
 Assignments should be submitted on due date before the class.
 Cheating – Don’t do this
 You will get a zero, and repeated cases must be forwarded to
HoD

ENGINEERING MANAGEMENT
ENGINEERING:
Engineering is the application of mathematics, scientific,
economic, social and practical knowledge in order to
invent, innovate, design, build, research and improve
structures, tools, systems and organization.
Types:
 Agricultural Engineering
 Biomedical Engineering
 Chemical Engineering
 Electrical Engineering
 Mineral & Mining Engineering
 Nuclear Engineering etc.
7

ENGINEERING MANAGEMENT (Cont…)
MANAGEMENT:
The word “Management” originates from Old French
ménagement “the art of conducting, directing”, and from
Latin manu agere “to lead by the hand”).
Management characterizes the process of leading and
directing all or part of an organization, often a business,
through the deployment and manipulation of resources
(human, financial, material, intellectual or intangible).
8

Areas of Management:
 Change management
 Communications management
 Cost management
 Engineering management
 Marketing management
 Project management
 Resource management
 Risk management
 Time management
 Crisis management
 Quality management
9

ENGINEERING MANAGEMENT
Definition:
Engineering management is a specialized form
of management concerned with the application in
engineering, as a result of the unique
personalities and technical nature of engineering.
10

Engineering management refers to the functional
management of technical professionals. Example areas of
engineering are product development, manufacturing,
construction, design engineering, industrial engineering,
technology, production, or any other field that employs
personnel who perform an engineering function.
Successful engineering managers typically require
training and experience in business and engineering.
11

INTRODUCTION TO MANAGEMENT
Definitions:
 Management is the process of achieving goals and objectives
effectively and efficiently through and with the people.
 Management is a process of designing and maintaining an
environment in which individuals work together in groups to
effectively and efficiently accomplish selected aims.
12

MANAGEMENT DEFINITION (Cont…)
 Management is the process or form of work that involves the
guidance or direction of a group of people towards
organization goals/objectives.
(Rue & Byars)
 Management is the process of achieving organizations goals
and objectives effectively and efficiently by using
management functions i.e.
Planning
Organizing
Staffing
Controlling
13

MANAGEMENT DEFINITION (Cont…)
 It is the art of coordinating resources: men, machine,
material, money, market, information and knowledge.
14

WHY STUDY MANAGEMENT?
 The universality of management
Good management is needed in all organizations.
 The reality of work
Employees either manage or are managed
 Rewards and challenges of being a manager
Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
Successful managers receive significant monetary
rewards for their efforts.
15

UNIVERSAL NEED FOR MANAGEMENT
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EFFICIENCY & EFFECTIVENESS IN
MANAGEMENT
 Efficiency - getting the most output from the least amount
of inputs
 “Doing things right”
 Concerned with means
 Achieving the objectives in time
 Effectiveness– completing activities so that organizational
goals are attained
 “Doing the right things”
 Concerned with ends
 Achieving the objectives on time
17

NATURE OF MANAGEMENT
 Management is Goal-oriented
 Management is Universal
 Management is an Integrative Force
 Management is a Social Process
 Management is Multidisciplinary
 Management is a Continuous Process
 Management is Intangible
 Management is an Art as well as Science
18

Management is Goal-oriented:
 Management has no justification to exist without goals.
Management goals are called group goals or
organizational goals. The basic goal of management is to
ensure efficiency and economy in the utilization of human,
physical and financial resources. The success of
management is measured by the extent to which the
established goals one achieved.
19

Management is Universal:
 Management is an essential element of every organized
activity irrespective of the size or type of activity.
 Wherever two or more persons are engaged in working
for a common goal, management is necessary.
 All types of organizations, e.g., family, club, university,
government, army, cricket team or business, require
management.
 The fundamental principles of management are
applicable in all areas of organized effort. Managers at all
levels perform the same basic functions.
20

Management is an Integrated Force:
The essence of management lies in the coordination of
individual efforts in to a team. Management reconciles the
individual goals with organizational goals.
21

Management is an Integrated Force:
The essence of management lies in the coordination of
individual efforts in to a team. Management reconciles the
individual goals with organizational goals.
22

Management is a Social Process:
 Management is done by people, through people and for
people.
 It is a social process because it is concerned with
interpersonal relations. Human factor is the most
important element in management.
23

Management is Multidisciplinary:
 Management has to deal with human behavior under
dynamic conditions. Therefore, it depends upon wide
knowledge derived from several disciplines like
engineering, sociology, psychology, economics etc. The
vast body of knowledge in management draws heavily
upon other fields of study.
24

Management is a Continuous Process:
 Management is a dynamic and an on-going process. The
cycle of management continues to operate so long as
there is organized action for the achievement of group
goals.
25

Management is Intangible:
 Management is an unseen or invisible force. It cannot be
seen but its presence can be felt everywhere in the form
of results. However, the managers who perform the
functions of management are very much tangible and
visible.
26

Management is an Art as well as Science:
 Management is also a discipline involving specialized
training and an ethical code arising out of its social
obligations.
27

ELEMENTS OF MANAGEMENT
 Nine elements of management:
1. Horizon
2. Organization
3. Need for planning, implementation and monitoring.
4. Equipped with staff.
5. Leadership and direction.
6. Communication
7. Co-ordination
8. Constant evaluation, monitoring or control
9. Innovation
28

TYPES/LEVELS OF MANAGEMENT
 The term “Levels of Management” refers to a line
of demarcation between various managerial
positions in an organization.
 The level of management determines a chain of
command, the amount of authority & status
enjoyed by any managerial position.
29

TYPES/LEVELS OF MANAGEMENT (Cont…)
 The Levels of management can be classified in
three broad categories:
 Top management
 Middle management
 Lower (operating) management
30

TYPES/LEVELS OF MANAGEMENT (Cont…)
31

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