Introduction to Engineering Management.ppt

• 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.
MANagement is…

“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!”
A Chinese Proverb

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.
The aim of all managers is the same; to create a
surplus.
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.

Functions of Management
• 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
TOP
MIDDLE
FIRST-LINE
Strategic Managers who are ultimately responsible
for the entire organization. Typical titles include
CEO, COO, CFO, “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”.

Management 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.

Middle
Management
Top Management
Supervisors Percentage of job
Technical
skills
Human
skills
Conceptual
and design
skills
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.
• Brevity, 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.
• 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? (cont’d)
• 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? (cont’d)
• 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? (cont’d)
• 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.

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

Excellent managers are/have
good communicator
acquire the skills of listening, speaking, reading, and writing
flexible
multi-tasker, imaginative and innovative
integrity
“living it myself before leading others”
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”

Productivity, Effectiveness, 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.

• 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.

• 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.

Taylor’s Four Principles of Scientific Management
1. Scientifically study each part of a task and develop the
best method for performing it.
2. Carefully select workers and train them to perform the
task using the scientifically developed method.
3. Cooperate fully with workers to ensure that they use
the proper method.
4. 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.

• 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.

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

Weber’s Principle of Bureaucracy

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

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

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

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

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

Approaches to Management
1. Empirical or Case Approach
 Studies experience through cases.
 Identifies successes and failures.
2. 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 behavior patterns.
3. 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.
4. 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.

5. Re-engineering Approach
 Concerned with fundamental re-thinking, process analysis, radical
re-design, and dramatic results.
6. 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.
7. 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.

8. 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.
9. Interpersonal Behavior Approach
 Focuses on interpersonal behavior, human relations, leadership, and
motivation.
 Based on individual psychology.
10. 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.

11. 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.
12. 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).
13. Management Process or Operational Approach
 Draws together concepts, principles, techniques, and knowledge
from other fields and managerial approaches.
14. 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 Roles 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 centers of their organizational units.
3. Decisional Roles – involve making significant decisions
that affect the organization.

10 Specific Managerial Roles
Interpersonal Roles
Role Description
Figurehead Performs symbolic duties of a legal
or social nature.
Leader Builds relationships with
subordinates and communicates
with help and information.
Liaison Maintains networks of contacts
outside work unit who provide help
and information.

Informational Roles
Role Description
Monitor Seeks internal and external
informational about issues that can
affect organization.
Disseminator Transmits information internally
that is obtained form either internal
or external sources.
Spokesperson Transmits information about the
organization to outsiders.

Decisional Roles
Role Description
Entrepreneur Acts as initiator, designer, and encourager of
change and innovation.
Disturbance Handler Takes corrective action when organization
faces important, unexpected difficulties.
Resource Allocator Distributes resources of all types including
time, funding, equipment, and human
resources.
Negotiator Represents the organization in major
negotiations affecting the manager’s areas
of responsibility.

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.
 Managers in the boss category are often brought into a
company to act as “Hatchet Men”.
 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.

Five Filipino Styles of Management
1. Managers by “Kayod”
 “Kayod” is a Filipino term which means “to sweat it out or to give oneself to hard
work”.
 This manager is action-hungry, highly dedicated, but his manners are rather formal
and that of an introvert.
 He is a serious worker and will not give in to bribing or any anomalous deals.
2. Managers by “Lusot”
 “Lusot” is another Filipino word which means “capitalizing on a loophole”.
 Thus, this manager will be always on the lookout for loophole of anything and will
use them to avoid too much work, or shortcuts and to do unconventional or even
illegal ways to attain objectives. Generally, an extrovert.
 He deals with people informally.
3. Managers by “Libro”
 “Libro” in English, book.
 This type of manger operates by the dictates of the book.
 What the manuals other formal documents say.
 He is systematic and analytical.
 He usually has adequate formal training in management.

Five Filipino Styles of Management
4. Managers by “Oido”
 This manager leaves his managerial skills by oido or by ear.
 He has a vast field of practical experiences to compensate for his lack of
formal management education.
 He is the opposite of the “Libro” manager.
5. Managers by “Ugnayan”
 He is a hybrid of all type of managers.
 Hence, he is one type of manager now, and different in another time,
depending on the situation.
 He is a gifted reconciler of all philosophers and beliefs held by various types
of managers.
 He integrates various styles of management depending on the need and
conditions of his organization.
 He is participatory and coordinative.
Reference : Management - A Global Perspective by Weihrich and Koontz 11th Edition
Management by Richard L. Daft, 8th Edition (2008)

Introduction to Engineering Management.ppt

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