Engineering Management

ChE-410
Lecture-1
Hafiz Mudaser Ahmad
[email protected]
Department of Chemical Engineering
University of Engineering & Technology Lahore
08/09/2023 9:06:50 am 1
 Contents
•Introduction to Management

•The evolution of Management

•Contemporary Management Perspectives

08/09/2023 9:07:05 am 2
 Introduction to Management

08/09/2023 9:07:07 am 3
 Introduction to Management
• Organization and managers

• Kind of managers and levels of management

• Basic management functions

• Fundamental management skills

• The science of art and management

08/09/2023 9:07:07 am 4
Organization
• An organization is a group of people working together in a structured
and coordinated fashion to achieve a set of goals.
Which may include
• Profit (Netflix or Starbucks)
• The discovery of knowledge (the University of Nebraska or the
National Science Foundation)
• National defense (the U.S. Navy or marines)
• The coordination of various local charities (the United Way of
America)

08/09/2023 9:07:07 am 5
Managers & Management
• Managers are responsible for using the organization’s
resources to help achieve its goals.
• Management can be defined as a set of activities (including
planning and decision-making, organizing, leading, and
controlling) directed at an organization’s resources (human,
financial, physical, and information), aiming to achieve
organizational goals efficiently and effectively. Or
• Management is considered the art and science of making
decisions.
08/09/2023 9:07:07 am 6
Managers & Management
• A manager is someone whose primary responsibility is to carry
out the management process efficiently and effectively.
• By efficient, we mean using resources wisely, in a cost-effective
way.
• By effective, we mean making the right decisions and
successfully implementing them.
• In general, successful organizations are both efficient and
effective

08/09/2023 9:07:07 am 7
Challenges Faced by Today's Managers
Demanding Workload
• Average executive works 60 hours per week.
• Enormous time demands on managers.
Complex Business Landscape
• Globalization increases competition and market dynamics.
• Government regulations add layers of complexity.
• Shareholder expectations intensify performance pressures.
• Technological Disruption
• Emerging technologies reshape industries.
• Navigating the impact of automation and digital transformation.
08/09/2023 9:07:07 am 8
Managerial Opportunities and Impact
Unpredictable Job with Opportunities
• Managerial roles are unpredictable and dynamic.
• Filled with opportunities to make a significant impact.
Adaptation to Rapid Changes
• Managers must cope with rapid industry changes.
• Navigating unexpected disruptions and minor/major crises.
Managerial Influence on Success
• Competent managers can drive organizations to unparalleled success.
• Conversely, poor management can severely damage organizations.
Important Note:
• Today's managers face a challenging yet opportunity-rich landscape.
• Effective leadership can shape an organization's destiny in a rapidly evolving world.
08/09/2023 9:07:07 am 9
 Kinds of Managers &
Levels of Management

One way to classify managers is

in terms of their level in the
organization.
• Top Managers
• Middle Managers
• First-line Managers

08/09/2023 9:07:08 am 10
08/09/2023 9:07:09 am 11
Top Managers
• Top managers are a group of executives responsible for
overall organizational management. Titles include the following:
▪ President
▪ Vice President
▪ Chief Executive Officer (CEO)
• Key responsibilities:
• Setting organizational goals
• Formulating overall strategy
• Establishing operating policies
• Representing the organization externally

08/09/2023 9:07:09 am 12
Top Managers
• Prominent examples include:
• Howard (CEO, Starbucks).
• Reed Hastings, Sergey Brin, and Larry Page (Google founders and executives).
• Mary Barra (CEO, General Motors).
• Complex and varied roles:
• Decision-making on acquisitions, R&D investments, market expansions, and
facilities.
• Extensive hours spent in meetings and communication.
• Often well-compensated:
• High salaries, bonuses, and stock awards.
• Elite top managers in large firms can earn millions annually.
Top managers play a pivotal role in shaping the direction and success of
organizations, making crucial decisions, and representing the company to
the external world.

08/09/2023 9:07:09 am 13
Middle Managers
• Middle management constitutes the largest managerial group in
organizations and typical titles include Plant Manager, Operations
Manager, Division Head.
• Core role is to implement policies and plans devised by top managers
and Responsibilities include supervision, coordination, and activity
oversight.
• Example: Jason Hernandez, Starbucks Regional Manager, responsible
for operations in three eastern states.
Middle managers are key in bridging the gap between high-level
strategic direction and the day-to-day operations of the organization,
ensuring effective execution.

08/09/2023 9:07:09 am 14
First-line Managers
Role of First-Line Managers
• Supervise and coordinate operational employee activities.
• Common titles: Supervisor, Coordinator, Office Manager.
• Often the first managerial role for employees transitioning from operational roles.
• Examples from Starbucks in Texas
• Wayne Maxwell and Jenny Wagner are first-line managers.
• Responsibilities:
• Oversee daily store operations.
• Recruit and manage operating personnel.
• Handle routine administrative tasks for the parent corporation.
• Focus on Supervision
• First-line managers primarily dedicate their time to supervising subordinates.
• Crucial for ensuring smooth day-to-day operations and employee performance.
First-line managers play a fundamental role in leading and supporting
operational teams, ensuring efficiency and excellence in daily activities.

08/09/2023 9:07:09 am 15
 Managers in Different Areas of the Organization
• Marketing Managers
• Responsible for marketing function.
• Focus on product development, promotion, and distribution.
• Critical for driving consumer purchases.
• Financial Managers
• Handle an organization's financial resources.
• Responsibilities include accounting, cash management, investments.
• Common in banking and insurance sectors.
• Operations Managers
• Create and manage systems for product and service delivery.
• Responsibilities include production control, inventory management, quality control.
• Vital for efficient operations.

08/09/2023 9:07:09 am 16
 Managers in Different Areas of the Organization
• Human Resources Managers
• Responsible for hiring and employee development.
• Involved in HR planning, recruitment, training, compensation design.
• Formulate performance appraisal systems and address personnel issues.
• Administrative Managers
• Generalists with familiarity across management areas.
• No specific management specialty.
• Common in roles like hospital or clinic administration.
• Public Relations Managers
• Manage public and media relations.
• Protect and enhance the organization's image.
• Prominent in firms like Facebook and Dow Chemical.

08/09/2023 9:07:09 am 17
 Managers in Different Areas of the Organization
• R&D Managers
• Coordinate scientists and engineers on scientific projects.
• Found in organizations like Google, Shell Oil, and NASA.
• Internal Consultants
• Provide specialized expert advice to operating managers.
• Used in organizations like Prudential Insurance.
• International Operations Managers
• Coordinate international activities.
• Common in organizations like Walmart and Halliburton.
• Specialized role due to global complexities.
The nature and importance of these management roles vary across organizations,
but they play critical roles in achieving organizational goals and responding to
contemporary challenges.

08/09/2023 9:07:09 am 18
Basic Management Functions
1. Planning and Decision Making
• Planning means setting an organization’s goals and deciding how best
to achieve them. Decision making, a part of the planning process,
involves selecting a course of action from a set of alternatives.
• Planning and decision-making help managers maintain their
effectiveness by serving as guides for their future activities.
• In other words, the organization’s goals and plans clearly help
managers know how to allocate their time and resources.

08/09/2023 9:07:09 am 19
Basic Management Functions
2. Organizing
• Once a manager has set goals and developed a workable
plan, his or her next management function is to organize
people and the other resources necessary to carry out the
plan
• Organizing involves determining how activities and resources
are to be grouped. Although some people equate this
function with the creation of an organization chart.

08/09/2023 9:07:09 am 20
Basic Management Functions
3. Leading
• The third basic managerial function is leading. Some people
consider leading to be both the most important and the
most challenging of all managerial activities.
• Leading is the set of processes used to get members of the
organization to work together to further the interests of the
organization.

08/09/2023 9:07:09 am 21
Basic Management Functions
4. Controlling
• The final phase of the management process is controlling or
monitoring the organization’s progress toward its goals.
• As the organization moves toward its goals, managers must
monitor progress to ensure that it is performing in such a
way as to arrive at its “destination” at the appointed time.

08/09/2023 9:07:09 am 22
Basic Management
Functions

08/09/2023 9:07:09 am 23
Fundamental Management Skills
• Technical skills
The skills necessary to accomplish or understand the specific kind of work
done in an organization
• Interpersonal skills
The ability to communicate with, understand, and motivate both
individuals and groups
• Conceptual skills
The manager’s ability to think in the abstract
• Diagnostic skills
The manager’s ability to visualize the most appropriate response to a
situation
08/09/2023 9:07:09 am 24
Fundamental Management Skills
• Communication skills
The manager’s abilities both to effectively convey ideas and information
to others and to effectively receive ideas and information from others
• Decision-making skills
The manager’s ability to correctly recognize and define problems and
opportunities and then select an appropriate course of action to solve
problems and capitalize on opportunities
• Time management skills
The manager’s ability to prioritize work and to work efficiently

08/09/2023 9:07:09 am 25
 The Science and the Art of Management
Most successful managers have
strong time management skills.
This allows them to stay on top
of their work, meet deadlines,
achieve their goals, and avoid
unnecessary stress.

Poor time management skills,

however, often lead to falling
behind on work, not meeting
goals, and being late on
projects, and excessive stress.

08/09/2023 9:07:09 am 26
 The Evolution of Management

08/09/2023 9:07:09 am 27
 The Evolution of Management
• The Importance of Theory and History
• The Historical Context of Management
• The Classical Management Perspective
• The Behavioral Management Perspective
• The Quantitative Management Perspective

08/09/2023 9:07:09 am 28
The Importance of Theory and History
• Some people question the value of history and theory. Their
arguments are usually based on the assumptions that history
is not relevant to contemporary society and that theory is
abstract and of no practical use.
• In reality, however, both theory and history are important to
all managers today.

08/09/2023 9:07:09 am 29
 Why Theory?
• A theory is simply a conceptual framework for organizing knowledge and
providing a blueprint for action.
• Although some theories seem abstract and irrelevant, others appear
very simple and practical. Management theories, which are used to build
organizations and guide them toward their goals, are grounded in reality.
• Most managers develop and refine their own theories of how they
should run their organizations and manage the behavior of their
employees.
• James Sinegal, founder and CEO of Costco Wholesale, believes that
paying his employees well while keeping prices as low as possible are
the key ingredients in success for his business. This belief is based
essentially on his personal theory of competition in the warehouse
retailing industry.
08/09/2023 9:07:09 am 30
Why History?
• Awareness and understanding of important historical developments
are also important to contemporary managers.
• Understanding the historical context of management provides a sense
of heritage and can help managers avoid the mistakes of others.
• Managers at Wells Fargo clearly recognize the value of history. For
example, the company maintains an extensive archival library of its
old banking documents and records, and even employs a full-time
corporate historian.
• As part of their orientation and training, new managers at Wells
Fargo take courses to become acquainted with the bank’s history.

08/09/2023 9:07:09 am 31
The Historical Context of Management
• The practice of management can be traced back thousands of years.
• The Egyptians used the management functions of planning,
organizing, and controlling when they constructed the pyramids.
• Alexander the Great employed a staff organization to coordinate
activities during his military campaigns.
• The Roman Empire developed a well-defined organizational structure
that greatly facilitated communication and control.
• Socrates discussed management practices and concepts in 400 BC,
Plato described job specialization in 350 BC, and the Persian scientist
and philosopher Al-Farabi listed several leadership traits in AD 900.
08/09/2023 9:07:09 am 32
The Classical Management Perspective
Classical management perspective, which actually includes
two different viewpoints: scientific management and
administrative management.
The preliminary ideas and writings of managers and theorists
converged with the emergence and evolution of large-scale
businesses and management practices.

08/09/2023 9:07:09 am 33
Scientific Management
• Definition: Scientific management, developed by Frederick Winslow Taylor,
is an early management theory focusing on optimizing work processes for
greater efficiency.
• Key Principles:
• Time and motion studies.
• Standardized procedures.
• Specialization of tasks.
• Incentive systems.
• Impact: Revolutionized industrial practices but faced criticism for potential
dehumanization of work.
Scientific management aimed to improve efficiency but raised questions
about its impact on workers' quality of life.
08/09/2023 9:07:09 am 34
Administrative Management
• Definition: Administrative management, pioneered by Henri Fayol,
emphasizes principles of organization, coordination, and control within an
organization.
• Key Principles:
• Scalar Chain: Clear communication hierarchy.
• Unity of Command: Employees report to only one manager.
• Unity of Direction: Single plan under one manager's authority.
• Division of Labor: Specialization for efficiency.
• Impact: Laid the foundation for modern organizational structures and
management processes.
Administrative management principles continue to influence how
organizations structure their operations and manage resources.
08/09/2023 9:07:09 am 35
 The Behavioral Management Perspective
Emphasizes individual attitudes and
behaviors, and group processes
The Hawthorne studies were a series of
early experiments that focused on behavior
in the workplace. In one experiment
involving this group of workers, for example,
researchers monitored how productivity
changed as a result of changes in working
conditions.
The Hawthorne studies and subsequent
experiments led scientists to the conclusion
that the human element is very important in
the workplace.
08/09/2023 9:07:09 am 36
The Human Relations Movement
• In 1943, Maslow advanced a theory suggesting that people are
motivated by a hierarchy of needs, including monetary incentives and
social acceptance.
• Douglas McGregor’s Theory X and Theory Y model best represents
the essence of the human relations movement.
• According to McGregor, Theory X and Theory Y reflect two extreme
belief sets that different managers have about their workers. Theory
X is a relatively pessimistic and negative view of workers and is
consistent with the views of scientific management. Theory Y is more
positive and represents the assumptions made by human relations
advocates.

08/09/2023 9:07:09 am 37
08/09/2023 9:07:10 am 38
The Quantitative Management Perspective
This perspective applies quantitative
techniques to management. There are
two branches of the quantitative
approach such as management
science and operations management.

Management Science: Focuses

specifically on the development of
mathematical models.

Operations Management: Concerned

with helping the organization more The quantitative management perspective is important to a
efficiently produce its products or variety of management situations today. Computer
services. simulations, mathematical modeling, and statistical
analyses are all commonly used in many different
organizations.
08/09/2023 9:07:10 am 39
 Contemporary Management
Perspectives

08/09/2023 9:07:10 am 40
 Contemporary Management
Perspectives
• The Systems Perspective

• The Contingency Perspective

• Contemporary Management Challenges

08/09/2023 9:07:10 am 41
 Contemporary Management
• Contemporary management refers to the current practices and
approaches used by organizations to efficiently and effectively
achieve their goals in today's dynamic business environment.
• It emphasizes adaptability, innovation, and the integration of
technology to address modern challenges.
• Contemporary management also places a strong emphasis on
employee engagement, sustainability, and ethical decision-making as
essential components of successful leadership and organizational
performance.

08/09/2023 9:07:10 am 42
The Systems Perspective
The systems perspective is one important contemporary management
perspective. A system is an interrelated set of elements functioning as a
whole.

08/09/2023 9:07:10 am 43
The Systems Perspective
Thinking of organizations as systems provides us with a variety
of important viewpoints on organizations, such as the
concepts of open systems, subsystems, synergy, and entropy.
• Open systems are systems that interact with their
environment, whereas closed systems do not interact with
their environment.
• Although organizations are open systems, some make the
mistake of ignoring their environment and behaving as
though it is not important.
08/09/2023 9:07:10 am 44
The Systems Perspective
• Open Systems in Management: Open systems are organizations that
interact with and are influenced by their external environments. They are
characterized by the exchange of information, resources, and feedback
with their surroundings. Open systems are adaptable, responsive to
changes, and thrive on collaboration with external entities.

• Closed Systems in Management: Closed systems, on the other hand, are

organizations that operate in isolation from their external environments.
They tend to be self-contained and do not actively engage with external
factors. Closed systems may struggle to adapt to changing circumstances
and miss out on valuable opportunities for growth and improvement.
08/09/2023 9:07:10 am 45
The Systems Perspective
• Subsystem: Systems within a broader system is knows as
subsystem.
• For example, the marketing, production, and finance
functions within Mattel are systems but are also subsystems
within the overall organization.
• Subsystems are greatly interdependent with each other
within an organization.

08/09/2023 9:07:10 am 46
The Systems Perspective
• Synergy suggests that organizational units (or subsystems) may often
be more successful working together than working alone. The Walt
Disney Company, for example, benefits greatly from synergy. The
company’s movies, theme parks, television programs, and
merchandise-licensing programs all benefit one another.
• Children who enjoy Disney movies such as Monsters University and
Frozen want to go to Disney World to see the attractions and shows
based on the movies and their favorite characters; and when they
shop at Target, they see and want to buy stuffed toys and action
figures of the same characters.
• Music from the films generates additional revenues for the firm, as do
computer games and other licensing arrangements for lunchboxes,
clothing, and so forth.

08/09/2023 9:07:10 am 47
The Systems Perspective
• Entropy is a normal process that leads to system decline. When
an organization does not monitor feedback from its
environment and make appropriate adjustments, it may fail.
• For example, witness the problems and eventual demise of
Studebaker (an automobile manufacturer) and Circuit City (a
major retailer). Each of these organizations went bankrupt
because it failed to revitalize itself and keep pace with changes in
its environment. A primary objective of management, from a
systems perspective, is to continually reenergize the organization
to avoid entropy.
08/09/2023 9:07:10 am 48
The Contingency Perspective
• Another noteworthy recent addition to management thinking is
the contingency perspective. The classical, behavioral, and
quantitative approaches are considered universal perspectives
because they try to identify the “one best way” to manage
organizations.
• The contingency perspective, in contrast, suggests that universal
theories cannot be applied to organizations because each
organization is unique. Instead, the contingency perspective
suggests that appropriate managerial behavior in a given
situation depends on, or is contingent on, unique elements in
that situation.
08/09/2023 9:07:10 am 49
The Contingency Perspective
• In 2000, Cisco Systems had the largest market cap in the world and
was growing at a rate of 50 percent per year. A recession and the
terrorist attacks in September 2001, however, caused the technology
sector to crash, and Cisco’s stock dropped in value by 86 percent.
Cisco’s CEO, John Chambers, had to downsize the company through
layoffs and divestitures and transform it into a smaller company. As
he went through this process, he also changed his management style.
He had previously been an autocratic manager and led Cisco using a
command-and-control hierarchy. As a result of the transformation at
Cisco, however, Chambers decided he needed to change his own
management style as well. So, he began to adopt a much more
democratic approach and run Cisco using a more democratic
organizational structure.

08/09/2023 9:07:10 am 50
 Contemporary Management (Challenges)
• Globalization
Example: Managing cultural diversity and varying market regulations in multinational
companies.
• Ethics and Social Responsibility
Example: Addressing corporate scandals and environmental responsibilities (e.g., Enron, BP oil
spill).
• Quality Management
Example: Emphasizing quality to compete (e.g., Toyota's quality-driven success).
• Shift to Service Economy
Example: Adapting to the service-oriented economy (e.g., growth of IT and consulting services).
• Economic Challenges
Example: Navigating through economic recessions and recoveries (e.g., the 2008 financial
crisis).

08/09/2023 9:07:10 am 51
 Outcomes
• Management Essentials: Define management, describe manager
types, and explain the four core management functions and key
skills.
• Management as Science and Art: Discuss management as both a
science and art.
• Historical and Theoretical Foundations: Justify the importance of
history and theory in management and describe the evolution of
management thought through classical, behavioral, and
quantitative perspectives.
• Contemporary Management Perspectives: Identify and discuss
systems and contingency perspectives in modern management.
• Challenges and Opportunities: Identify major challenges and
opportunities faced by managers today.
08/09/2023 9:07:10 am 52
 Go through all the questions for review and
questions for analysis at the end of Chapter One of
Fundamentals of Management by Ricky W. Griffin

08/09/2023 9:07:10 am 53
 Thanks

08/09/2023 9:07:10 am 54