MODULE 1

CASE STUDY FORMAT, INTRODUCTION TO ENGINEERING

MANAGEMENT AND CONCEPT OF MANAGEMENT

Objectives

At the end of this module, the students are expected to:

1. familiarize with the steps in doing the case study;

2. apply the learning in analyzing the case;
3. share the learning in doing and preparing the case study;
4. define engineering management;
5. identify the five function of management;
6. explain the concept of management;
7. describe the different functions of management; and
8. apply the principles of management.

CASE STUDY FORMAT

What is a Case?

A case is a narrative of an actual, or realistic problem that typically portrays policy

makers confronted with the need to make a decision.

A case is a problem-solving action, a policy strategy for the future. It narrates the
development of a situation over an extended period of time.

Teaching cases present information, but not analysis; your task is to supply the latter, as
well as to advocate a solution.

A case is a realistic problem situation that happened in a certain organization. It is a

problem need to be addressed which the policy makers are the one who make decisions. It
presents data information for the policy makers to know the main problem to be addressed. As
student teaching cases is not just analysis of the case. You are not just identify the main
problem, what is the case all about, what are the facts of case, etc., but your real task is to
supply the latter part to advocate a solution to the main problem. You are viewing yourself as
the policy makers that make decision, solve the problem and make policy strategies.

Why Case Method?

1. Best learning methodology.

2. Based on realistic business concerns.
3. Process used to solve cases is similar to actual business processes on problem
solving.
4. Develops analytical capabilities.
5. Develops data/fact handling skills.

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 6. Develops leadership and team effectiveness skills.
7. Apply principles learned to business situations encountered in actuality.
8. Develop decision making skills (decide on course of action, and visualize
consequence and results).
9. Develops communication and presentation skills.

A case doesn’t have a single “correct answer” or should I say that there is also “no wrong
answer”. Your solution is based on your analysis it can be good or not, it can be better or worse.
All the ideas will be presented and make a defense or defend your analysis and it is open for
questioning. On that case you can interpret your analysis and tell why you are advocating or
recommending that solution. (read more:
https://www.hbs.edu/faculty/research/Documents/Shapiro-Participating-in-a-Case-Study.pdf

Steps in Analyzing a Case

1. Read the Case

You need to get the whole sense of the case. Read the case at least 2 to 3 times or
more than until you understand the entirety of the story. You can ask questions to yourself while
you are reading; you can take down the significant facts; and note important information.

2. Analyze the Case

Asking questions to yourself is already analyzing the case. You can ask: What is the
case all about; what problem the organization is dealing with or facing; who are the characters
in the case; what are the conflicts; how problem arise; etc. Questions help you to have better
analysis of the case and to derive (formulate) the main problem of the case. Note: focus on the
case, do not go beyond the case, searching to the net to make analysis lightly is not advisable
because you are getting other (people) ideas/analysis regarding the case.

3. Prepare your paper for presentation (oral and written)

You need to present your recommending solution based on analysis both in oral and
written. The paper should be organized based on the prescribe case study format for better
presentation of your ideas/analysis of the case and to defend the paper efficiently. Below is the
case format:

Case Format

1. Statement of the Problem

This is the most difficult part or step in case method. You can encounter too many
problems stated in the case but you need to point out or derive the main or root problem in the
case. Because some of the problems are only a problem cause by the main problem (you can
use the root-cause analysis). By identifying the main problem it will limit the scope of your
analysis, this usually in question format using the 5Ws and 1 H and it should be concise and
straight to the point. Eg. How ABC Inc. will manage a growing company? In deriving the main
problem you need to view yourself as the CEO or the President of the company, so that when
you presented (in real life) your solution to the top management they will agree to your solution
and action plan because you pointed out the root or main problem of the organization.

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2. List the Objectives
List 3 to 5 objectives that are attainable in solving the problem. It should be SMART
(Specific, Measurable, Attainable, Realistic and Time bound); you can begin it using the Blooms
Taxanomy of action verbs that are commonly used in education. For your reference read:
(https://www.apu.edu/live_data/files/333/blooms_taxonomy_action_verbs.pdf;
https://www.cloud.edu/Assets/PDFs/assessment/revised-blooms-chart.pdf) or any SMART
action verb. E.g. To reorganize the organizational system or structure of the growing company.
The objectives should be paralleled or directly answering the statement of the problem.

3. Areas of Consideration
In this part you can list the facts of information of the case, but this not a narration
regarding the background of the case. On this part, you can list assumptions, which can help
you in solving the case (you are making assumptions because the case did not provide
complete details). But do not rely on them solely because your (case) analysis will not be
credible or defensible. Also, on this part you may use different framework - conceptual or
theoretical; but it is highly recommended to use theoretical framework. You may search or use
books or other references that may help you in solving the problem of the case.

This is the part that you are going to present your SWOT or TOWS analysis – Strengths,
Weaknesses, Opportunities and Threats or the Porter’s five forces analysis. (read:
http://valuationacademy.com/porters-five-forces-in-action-sample-analysis-of-coca-cola/;
https://www.isc.hbs.edu/strategy/business-strategy/Pages/the-five-forces.aspx and
http://www.businessnewsdaily.com/5446-porters-five-forces.html)

Activity 1:

Write the SWOT/TOWS Analysis (5 each area) and

Porter’s five forces analysis of your company you are
working with.

(Will be submitted in Ubian LMS)

4. Listing of Alternative Courses of Actions (ACAs)

List at least three (3) plausible ACAs that will directly answer your statement of the
problem. It should be three (minimum) so that it will not be biased in recommending a solution if
it is only two (2). Also, it should be paralleled to your objectives. The recommended ACA will
reveal your key or main objective. Each ACA must be defensible, make an introduction to each
ACA explaining why you are listing that ACA. Present also the Pros (Advantages) and Cons
(Disadvantages) of each ACA. Note: Listing the Pros and Cons will help you on what ACA you
are going to recommend but it is not solely your bases, it should be based on your entire
analysis of the case.

5. Conclusion and Recommendation

Select the best ACA that will answer the statement of the problem. Explain why you are
recommending that ACA. You should present a detailed implementation/action plan for that
ACA, include time frames or schedule (you may use Gantt chart). If it is possible have also a
contingency plan for any potential problems.

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Characteristics of a Good Analysis

1. It is based on particular situational facts.

2. There is a good understanding and identification of the central (main) problem.
3. The solution must be highly creative and have the makings of being practical and
workable under the given circumstances.
4. The position must be supported and defensible.

References:
Iñigo, Conrado E., Management for Filipinos: Principles and Application, 2015.
Trajano, Alexander C., Case Study Lecture/Format Presentation, 2009. (Acknowledgement)
https://www.apu.edu/live_data/files/333/blooms_taxonomy_action_verbs.pdf
https://www.cloud.edu/Assets/PDFs/assessment/revised-blooms-chart.pdf
http://www.hbs.edu/faculty/research/Documents/Case%20Studies%20for%20Harvard%20Busin
ess%20School_Brochure.pdf
https://www.isc.hbs.edu/strategy/business-strategy/Pages/the-five-forces.aspx
http://www.businessnewsdaily.com/5446-porters-five-forces.html
http://valuationacademy.com/porters-five-forces-in-action-sample-analysis-of-coca-cola/

INTRODUCTION TO ENGINEERING MANAGEMENT AND CONCEPT

OF MANAGEMENT

What is Management?

Management is the organization and coordination of the activities of a business in order to

achieve defined objectives. Its often include production along with machines, materials, and
money. Or in simple definition it is the process of POSDICON (Planning, Organizing, Staffing,
Directing and Controlling).

Organization is a group of people working together towards a common goal (Manahan, Toribio
and Viray, 2014). In order to achieve the defined objectives the people working in the
organization should apply management in the utilization of company’s resources.

What is Engineering?

Engineering is the branch of science and technology concerned with the design, building, and
use of engines, machines and structures. It is also defined “Combines the fields of science and
math to solve real world problems that improve the world around us”.

It is the science that brings technology to create, build and solve the world problems that will
improve the people’s way of life not to destroy the way of living. Engineering give improvement
to what it is existing making life easier by improving the technology.

What is Engineering Management?

It is a term that is used to describe a specialized form of management that is required to

successfully lead engineering personnel and projects. The term can be used to describe either
functional management or project management - leading technical professionals who are

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working in the fields of product development, manufacturing, construction, design engineering,
industrial engineering, technology, production, or any other field that employs personnel who
perform an engineering function.

CONCEPT OF MANAGEMENT
The concept of management is not new to us. It is evident that we all apply management
every day. We organize all our activities to achieve a certain goal or objective. Goals that are
needed to achieve which will define the success of an organization on the field of business.
Management is important for the organization to plan not only to achieve its goals but on how to
maintain or survive the organization to stay in business.

Skills of the people are needed in the organization in achieving the set objectives. They
should be capable in doing, developing, carrying the functions of management and the
utilization of resources for the business or organization success. Even the organization have a
well-defined mission, vision and objectives, if the its people doesn’t have the skills or capabilities
in achieving them it is consider a waste. People from the three levels should be working
together to form a good management.

The Five Function of Management (Iñigo, 2015)

1. Planning - Is a logical and systematic approach of formulating the objectives, programs,

policies, procedures, budgets, rules and regulations and other types of plans. It is also
considered the most basic of all managerial functions (organizing, staffing, directing, and
controlling).

2. Organizing - Is the process of grouping together of men and establishing relationships among
them, defining the authority and responsibility of personnel by using the company’s basic
resources to attain predetermined goals or objectives.

3. Staffing - The management function that determines human resource needs, recruits, selects,
trains, and develops human resources for jobs created by an organization.

4. Directing - The process of motivation, communication, and leadership.

5. Controlling - Refers to the process of ascertaining whether organizational objectives have

been achieved; if not, why not; and determining what activities should then be taken to achieve
objectives in the future. It is the process of measuring and correcting activities (plans,
organization, personnel, etc.) of an organization.

Five (5) M’s of Management (Manahan, et al., 2014)

1. Man - Is the most important “M” of management. It refers to people or human resource. The
right people for the right position will contribute to the overall organizational effectiveness and
efficiency. Hiring of people that right to his or her job benefits the organization because man is
the main or important factor achieving organization’s objectives. They are the one going to use
and apply the methods, procure materials and machines, operate and improve the machines
and, budget and plan for finances using the money of the organization.

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2. Materials - Refers to the main component in producing a product which commonly known as
raw materials. Materials can create additional value for their product and can yield a competitive
advantage for the firms. Proper procurement of materials can be cost-effective and can produce
quality products for the company which can increase sales or profit for the organization.

3. Money - Is defined as any good or token that functions as medium of exchange. Proper
financial management plan of company’s money will help the organization to continue its
operations smoothly. The organization spends their money accordingly and properly achieving
their objectives.

4. Machines - An important tool that helps improve the efficiency and effectiveness in producing
goods or services of a firm. Effective use and procurement of machines for the business
operation can generate multiple benefits.

5. Methods - Is as a series of steps which managers use with the purpose of creating systematic
process in achieving goals and objectives of the firm. Managers use a method as a course of
action in solving a problem and making a decision for the company.

Machines and methods can be improved continuously to inline them to the organization goals or
objectives. Continuous improvement to machine and methods efficiency and effectiveness are
great help in managing the operations for proper monitoring and calculating the success
parameters in producing products and in decision making process.

Three Levels of Management (Zarate, 2009)

1. Top-level management. This group must have an extensive knowledge in

management and must be multi-skilled and analytical. Managers must be aware of the
environment, especially the market. Their decisions are long-term in nature and they are
responsible for strategic decisions.

2. Middle Management. The managers are highly specialized in the nature of a particular
unit. They are responsible for carrying out the decisions made by the top-level management and
communicating them to the low-level management.

3. Low-level Management. Also called front line managers, they are usually directly
responsible to employees/workers. They are responsible for carrying out the decisions
communicated by middle managers.

CLASSICAL APPROACHES TO MANAGEMENT (Manahan, et al., 2014)

The classical approaches focus in developing principles to manage the organization.

Known approaches that emerged during the classical period were the Scientific Management,
Administrative Management, Bureaucracy and Human Relation Management.

A. Scientific Management

Frederick Winslow Taylor (1856-1915) a young engineer who started working career at
Midvale Steel Company. He also known as the Father of Scientific Management. He focused

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on analyzing the work and how to complete a task efficiently. Taylor used scientific techniques
in improving the performance of the people in production, emphasizing in maximizing the output.

Frank Gilbreth and his wife Lillian Gilbreth use motion studies to simplify and develop more
efficient work procedure. They applied efficiency methods in their home with 12 children.
Gilbreth was known as the “Father of Motion Study” while Lillian is commonly referred as First
Lady of Management.

Motion Study is reducing or breaking a task to its basic physical motions and
eliminating unnecessary or redundant motions. Frederick W. Taylor emphasized in managing
work through efficiency while Frank and Lillian emphasized in managing motion.

Henry Gantt (1861-1919) he recognized the value of non monetary rewards to motivate
workers. He also developed a system for scheduling called Gantt Charts. Gantt charts are
considered as one of the most important management tool that is widely used by managers to
this day. It provides a mechanism in controlling and monitoring work progress of employees or
workers.

Henry Ford (1863-1947) is known to be one of the great industrialists who use Scientific
Management techniques in his factories. The major contribution of Henry Ford is the
introduction of the moving assembly line in which had a tremendous impact on production
methods in many industries.

Henry ford also introduced the mass production method. It is a method of production in
which large volumes of standardized goods are produced by workers using highly advance
equipment. The other concept used by Ford was the Division of Labor. It is the breaking of
jobs into small tasks. The tasks were so narrow that virtually no skill was required.

B. Administrative Management

The administrative management approach emphasized the perspective of senior

managers within the organization. It also argues that management is a profession and could be
taught.

Henry Fayol is a french mining engineer. He is also known the Father of Modern Management.
He experiences wherein he identified five (5) management functions. He also developed 14
principles of management:

1. Division of Work - divide work into specialized tasks and assigned responsibilities to
specific individuals

2. Authority - delegate authority along with responsibility

3. Discipline - make expectations clear and punish violations

4. Unity of Command - each employee should be assigned to only one supervisor

5. Unity of Direction - employee’s efforts should be focused on achieving organizational

objectives

6. Subordination of Individual - interest to the general interest must predominate

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 7. Remuneration - systematically rewards efforts that support the organization’s direction

8. Centralization - determines the relative importance of superior and subordinate roles

9. Scalar Chain - keep communication within the chain of command

10. Order - order jobs and materials so they support the organization’s direction

11. Equity - fair discipline and order enhance employee commitment

12. Stability and Tenure of Personnel - promote employee loyalty and longevity.

13. Initiative - encourage employees to act on their own in support of the organization’s
direction

14. Espirit de Corps - promote a unity of interests between employees and management

C. Bureaucracy

Max Weber (1864-1920) is a German sociologist who introduces the idea of a bureaucratic
organization. The aim of this concept is to create an organization that has authority structures
with a clear procedure of rules and regulations.

Bureaucracy is characterized with a high degree of division of labor and has principles of
rationality and impersonal relationships. Promotions are based on technical competence or
qualifications wherein loyalty and commitment is not considered.

D. Human Relations Management

Is an approach in management that emphasizes the understanding the importance of human

element in a workplace. In today settings this is known as Organizational Behavior which can
be defined as the study of human behavior in organizational settings, of the interface between
human behavior and the organization and of the organization itself.

Elton Mayo (1880-1949) is a researcher who conducted studies at Hawthorne Works Plant of
Western Electric in Chicago. He led a team who developed a research project known as
Hawthorne Studies. It is a series of experiments in which the initial studies failed because team
proposed that better lighting would improve the performance of the workers but it is reasonable
that better lighting will have a positive effect in the increase of production.

The researchers concluded that workers performed well when they know that they are
part of the experiment and when they are being observed by the researchers. This effect known
as the “Hawthorne Effect”. The team also concluded that psychological and social factors are
more important than physical condition of the workplace and financial incentives in motivating
workers.

Abraham Maslow (1908-1970) is a professor and psychologist who developed a motivational

theory in which it is considered to be the best-known theory of motivation. It is consists of five
basic categories of needs: physiological, safety, social, esteem and self-actualization needs.

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Frederick Herzberg (1923-2000) is a psychologist who conducted a research where he started
interviewing 200 accountants and engineers in Pittsburgh the result led him to develop the Two-
Factor Theory or better known as Motivation-Hygiene Theory.

Motivation-Hygiene Theory proposes that employees are motivated by intrinsic factors

rather than extrinsic factors. Intrinsic or Motivation factors are related to job satisfaction such as
achievement and recognition. Extrinsic or Hygiene factors are associated with job dissatisfaction
as working conditions, company policies, pay and job security.

Douglas McGregor (1906-1964) is a psychologist who developed philosophical view of human

behavior with his Theory X and Theory Y; The two sets of assumptions that represented how
employees view work.

Theory X represents a negative end or view of people they avoid work responsibility, relatively
have little ambition and need to be controlled (reward and punish) and supervised.

Theory Y represents a positive and or view of workers they are usually accept and seek
responsibility. They enjoy the physical and mental aspect of work and more committed to work.
They can exercise self-control and self-direction towards organization objectives.

CONTEMPORARY MANAGEMENT THEORIES (Zarate, 2009)

1. Quantitative Management - allows for developing quantitative approaches such as statistics

and computer simulations to arrive at a management decision. The two main branches of
quantitative management are management science and operations management. Management
science uses mathematics problem-solving and decision making. Operations management aids
in the effective production delivery of company’s products and services more effectively and
efficiently.

2. System Theory - explains how interrelated parts operate together to achieve a common
purpose. In the organizational advent of the Industrial Revolution and the increasing
requirements for a high level of efficiency and precision in production and operations, the
system approach was used. An organization as a system is composed of four elements: inputs
(materials/human resources), transformation processes (technological / managerial), outputs
(products/services), and feedback (reactions from the environment).

Figure 1

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 Operations as a Transformation Process

Figure 1 shows the system approach of operations as a transformation process. It shows the
new trend in operations that it is not simply input-process-output and feedback. The
transformation process include the value added which increase efficiency and productivity in the
operations. Also, the customers are willing to buy or pay for it because you provide what they
need and want. Which will be resulted to product-service bundle. Feedback from the
environment especially from the customer as they are also be part of the input having good
resources (e.g. in materials) which also a value-added in producing quality product – fitness to
use. This is a continuous cycle also resulted to continuous improvement in operation
management especially in making decisions and setting objectives.

3. Contingency Theory
It is a theory which always included in planning. It makes the plan flexible whenever problem/s
arises in the middle of the operation. A good planner always anticipates what will be the
possible glitches to be encountered in the operation and there the contingency plan helps.

References:
Iñigo, Conrado E., Management for Filipinos: Principles and Application, 2015.
Macapanpan, Tristan H., MSC 525M COURSE MATERIALS: Soft copy of other course
materials (Powerpoint lectures, cases, readings, and videos) and hard copies of some readings
Manahan, Antonino Arturo C. et al., Principles of Management Simplified, National Book Store,
2014
Render, Barry and Heizer, Jay, Operations Management 10th Edition. 2011
Schermerhorn, Jr., John R., Introduction to Management 11 th Edition, 2012
Trajano, Alexander C., Case Study Lecture/Format Presentation, 2009.
Zarate, Cynthia A. Principles of Management. 2009
http://valuationacademy.com/porters-five-forces-in-action-sample-analysis-of-coca-cola/
http://www.businessdictionary.com/definition/engineering-management.html Retrieved on July
4, 2013
http://www.businessnewsdaily.com/5446-porters-five-forces.html
http://www.innovation.public.lu/en/ir-entreprise/techniques-gestion-innovation/outils-gestion-
strategique/080905-5-forces-Porter-eng-2.pdf
http://www.studentscholarships.org/careers/246/what_is_engineering_management.php
Retrieved on July 4, 2013

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