ENGINEERING
MANAGEMENT
PART II
Sept. 3-4, 2065
FUNCTIONS OF
MANAGEMENT FOR
TECHNICAL ACTIVITIES
A. PLANNING
Planning refers to the management function that involves
anticipating future trends and determining the best
strategies and tactics to achieve organizational objectives.
(Nickels and others)
Planning is defined as the selection and sequential
ordering of tasks required to achieve an organizational
goal. (Aldag and Stearns)
Planning is deciding what will be done, who will do it,
where, when and how it will be done and the standards to
which it will be done (According to Cole and Hamitton)
A.1. THE NATURE OF PLANNING
Four major factors summarize the
essential nature of planning.
Contribution to purpose and
objectives.
Planning as the first basic function.
Planning as a function of all managers.
Planning for efficient organization.
Objectives or Goals – they are frequently used
interchangeably. The intended goals prescribe definite
scope and suggest direction to maximize the efforts of a
manager.
Mission – it is purpose or reason for the existence of an
organization.
Long – Range and Short – Range Objectives - Long -
range objectives generally go beyond the current fiscal
year of the organization. Short – range objectives
should be derived from an in – depth evaluation of the
organization’s long – range objectives.
Guidelines in Implementing Management by
Objectives (MBO)
Adopt your objectives directly to organizational goals and strategic plans.
Quantify and target the results whenever possible.
Test your objectives for challenge and achievability.
Adjust the objectives to the availability of resources and the realities of
organizational life.
Establish performance reports and milestones that measure progress toward
the objectives.
Put your objectives in writing and express them in clear, concise, and
unambiguous statements.
Limit the number of statements of objectives to the most relevant key results
areas of your job.
Communicate your objectives to your subordinates so that they can formulate
their own job objectives.
Review your statements with others to assure consistency and mutual support.
Modify your statements to meet changing conditions and priorities.
Do not continue to pursue objectives which have become absolute.
Program – it is a comprehensive plan that indicates use
of different resources in an integrated pattern and
establishes a sequence of required actions and time
schedules for each in order to achieve stated objectives.
Policies – these are broad, general guides for action
which constrain or direct objectives attainment.
Procedures – these are series of related steps expressed
in chronological order for a specific purpose.
Budget – it is a plan and an estimate of income and
expenditures for a future period.
Strategy – it is the method of shaping a company’s
future and involves determining the long – run
direction of the organization.
A.2. PLANNING AT VARIOUS
MANAGEMENT LEVELS
Planning activities undertaken at various levels are as
follows:
Strategic planning – top management level
Intermediate planning – middle management level
Operational planning – lower management level
A.3. THE PLANNING PROCESS
Planning involves the following:
Setting, organizational, division or unit goals.
Developing Strategies or tactics to reach those goals.
Determining resources needed.
Setting standards.
Setting Organizational, Divisional
or Unit Goals:
A.4. TYPES OF PLANS
The content of the various functional area plans
A.5. MAKING PLANNING EFFECTIVE
Planning maybe made successful if the following are
observed:
recognize the planning barriers
Manager’s inability to plan
Improper planning process
Lack of commitment to the planning process
Improper information
Focusing on the present at the expense of the future
Too much reliance on the planning department
Concentrating on only the controllable variables
use of aids to planning
Gather as much information as possible
Develop multiple success of information
Involve others in the planning process
ORGANIZING
Organizing is the process of grouping together of man and
establishing relationships among them, defining the authority and
responsibility of personnel by using the company’s other basic
resources to attain predetermined goals or objectives.
Organizing is the identification of the grouping of work to be
done, the delegation of authority and responsibility to the
employees, and the establishment of relationships among the
personnel in order to use to maximum advantage the company’s
basic material resources in the accomplishment of a common goal.
Organizing is a management function which refers to the
structuring of resources and activities to accomplish objectives in
an efficient and effective manner.
B.1. NATURE OF ORGANIZING
Organizing as a process should consider several factors
or fundamentals.
The structure must reflect objectives and plans
because activities of the organization are based on
them.
The structure must reflect authority given to top and
middle management.
Organization structure, like any other plan, should
reflect their external environment.
The organization must be manned.
The structure serves some very useful purpose. They
are the following:
It defines the relationship between tasks and authority
for individuals and departments.
It defines formal reporting relationships, the number
of levels in the hierarchy of the organization and the
span of control.
It defines the grouping of individuals into
departments and departments into organization.
It defines the system to effect coordination of effort in
both vertical (authority) and horizontal (tasks)
directions.
When structuring an organization, the
engineer manager must be concerned with
the following:
Division of Labor
Delegation of authority
Departmentation
Span of Control
Coordination
B.2. NATURE AND DEVELOPMENT OF
ORGANIZATION
The term organization has several definitions:
It is the executive structure of a management function
It also commence a creative process
It is sometimes used to mean the total management
organization, including facilities, materials, money
and manpower.
B.3.TYPES OF ORGANIZATIONAL STRUCTURES:
Advantages of Functional Organization:
The grouping of employees who perform a common task permit
economies of scale and efficient resource use.
Since the chain of command converges at the top of the
organization, decision making is centralized, providing a
unified direction from the top.
Communication and coordination among employees within
each department are excellent.
The structure promotes high quality technical problem –
solving.
The organization is provided with in depth skills specialization
and development.
Employees are provided with career progress with functional
departments.
Disadvantages of the functional organization:
Communication and coordination between the
departments are often poor.
Decisions involving more than one department pile up at
the top management levels and are often delayed.
Work specialization and division of labor, which are
stressed in a functional organization, produce routine, non
– motivating employees tasks.
It is difficult to identify which section or group is
responsible for certain problems.
There is limited view of organizational goals by employees.
There is limited general management training for
employees.
Advantages of a product or market
organization:
The organization is flexible and responsive to change.
The organization provides a high concern for customer’s
needs.
The organization provides excellent coordination across
functional departments
There is lazy pinpointing of responsibility for product
problems.
There is emphasis on overall product and division goals.
The opportunity for the development of general
management skills is provided.
Disadvantages of the product or market
organization
There is a higher possibility of duplication of resources
across divisions.
There is less technical depth and specialization in
divisions.
There is poor coordination across divisions.
There is less top management control.
There is competition for corporate resources.
Advantages of a Matrix organization:
There is more efficient use of resources than the
divisional structure.
There is flexibility and adaptability to changing
environment.
The development of both general and functional
management skills are present.
There is interdisciplinary cooperation and any expertise
is available to all divisions.
There are enlarged tasks for employees which motivate
them better.
Disadvantages of a matrix organization:
There is frustration and confusion from dual chain of
command.
There is high conflict between divisional and
functional interest.
There are many meetings and more discussion than
action.
There is a need for human relations training for key
employees and managers.
There is a tendency for power dominance by one side
of the matrix.
4. Committees
A committee is a formal group of persons formed for a
specific purpose. Committees are very useful most
especially to engineering and manufacturing firms:
Committees are very useful most especially to engineering
and manufacturing firms.
Committees are classified as follows:
Ad Hoc committee
Standing Committee
DEFINITION OF STAFFING
Staffing is defined as the management function that
determines human resource needs, recruits, selects,
trains and develops human resources for jobs created
by an organization.
Staffing is undertaken to match people with job so
that the realization of the organization’s objectives will
be facilitated.
Staffing is the process of recruiting, selecting and
training of men.
C.1 NATURE OF STAFFING
The staffing process consist of the following series
of steps
Human resource planning
Recruitment
Selection
Induction and Orientation
Training and development
Performance Appraisal
Employment decisions
Separations
Human Resource Planning:
It may involve three activities:
Forecasting
Programming
Evaluation and control
Methods of Forecasting:
Time series methods
Explanatory or causal models
b.1. Regression models
b.2. Econometric models
b.3. Leading indicators
c. Monitoring methods
Recruitment:
Recruitment refers to attracting qualified persons to apply for vacant
positions in the company.
Steps in recruitment:
Studying the different jobs in the company and writing job descriptions and
Specifications (job analysis)
Requisition of new employees
Actual recruitment of applicants
Sources of Applicants:
The organization’s current employees.
Newspaper advertising
Schools
Referrals
form employees
Recruitment / placement firms
Competitors
Selection:
Selection is the process of getting the most qualified
applicant from among different job seekers.
Steps in selection:
Reception of applicants (screening)
Preliminary Interview
Application form
Employment Test
Final selection by immediate supervisor or department head
Physical and medical examination
Orientation / Induction / Indoctrination
Training and Development:
Training refers to the learning that is provided in order
to improve performance on the present job.
Two general types of training programs:
1. Training progress for non managers
On–the–job–training
Vestibule training
Apprenticeship training
Special courses
2. Training programs for Managers
2. Training programs for Managers
decision making skills
In– basket
Management games
Case studies
Interpersonal skills
Roleplaying
Behavior modeling
Sensitivity training
Transactional analysis
Job knowledge
On–the–job–experience
Coaching
Understudy
Organizational knowledge
Positionrotation
Multiple management
Performance Appraisal:
Performance appraisal is the measurement of employee
performance. The purpose for which performance
appraisal is made are as follows:
To influence in a positive manner, employee
performance and development.
To determine merit pay increases
To plan for future performance goals
To determine training and development needs
To assess the promotional potential of employees
Ways of appraising performance:
Rating Scale Method
Essay Method
Management by Objectives Method
Assessment Center Method
Checklist Method
Work Standard Method
Ranking Method
Critical – incident Method
Employment Decisions:
These consist of the following:
Monetary rewards
Promotion
Transfer
Demotion
Separation:
Two classifications:
Voluntary
Involuntary
Communication
Communication
A. DEFINITION
COMMUNICATION – according to Morris Philip Wolf
(1987), is a process of sharing information through symbols,
including words and message.
COMMUNICATION – is being done between superior and
subordinate, between peers, between a manager and a client
or customer, between an employee and a government
representative.
COMMUNICATION – in engineering management, must
be made for a purpose and because it has a cost attached to
it, then, it must be used effectively.
b. Functions of communication:
B.1. Information Function:
B.2. Motivation Function
B.3. Control Function
B.4. Emotive Function
c. The communication process:
D. FORMS OF COMMUNICATION
D.1 VERBAL COMMUNICATION- are those transmitted
through hearing or sight.
Categories of Verbal Communication
Oral Communication- involves hearing the words of the sender.
Written Communication- seeks to communicate through the written word.
D.2 NONVERBAL COMMUNICATION- are means of
conveying message through body language, as well as the use
of time, space, touch, clothing, appearance and aesthetic
elements.
E. BARRIERS TO COMMUNICATION
E.1.Personal barriers
E2. Physical barriers
E3. Semantic barriers
F. OVERCOMING BARRIERS TO
COMMUNICATION
F1. USE FEEDBACK to facilitate understanding and increase the
potential for appropriate action.
F2. REPEAT MESSAGES in order to provide assurance that they
are properly received.
F3. USE MULTIPLE CHANNELS so that the accuracy of
information may be enhanced.
F4. USE SIMPLIFIED LANGUAGE that is easily understandable
and which eliminates the possibility of people getting mixed-up
with meanings.
G. TECHNIQUES FOR COMMUNICATING IN ORGANIZATIONS
DOWNWARD COMMUNICATION
upward CoMMUNICATIon
Horizontal communications
H. MANAGEMENT INFORMATION SYSTEM
MIS is defined by Boone and Kurtz as “an
organized method of providing past,
present and projected information on
internal operation and external intelligence
for use in decision – making.
The purposes of mis:
To provide a basis for the analysis of early warning
signals that can originate both externally and
internally.
To automate routine clerical operations like payroll
and inventory reports.
To assist managers in making routine decisions like
scheduling orders, assigning orders to machines and
reordering supplies.
To provide the information necessary for management
to make strategic or non-programmed decisions
