PRELIM: ENGINEERING MANAGEMENT BECOMING AN EFFECTIVE ENGINEER MANAGER:

FUNCTION/S OF AN ENGINEER: 1. Managerial ability refers to the potential of an

1. Research - engaged in the process of learning engineer to accomplish operational objectives
about nature and codifying that knowledge into successfully and efficiently.
functional theories. 2. Motivation to manage - some employees believe
2. Design and Development - undertakes the task that they are much more effective working alone
of transforming the idea of the product into but there are others who wants to work with
finished physical objects. group of people in achieving the organization’s
3. Testing - works in a unit where the workability of goal.
new products or parts is tested. 3. Opportunity - successful management can only
4. Manufacturing - is solely responsible for the be realize if the engineer is suited to the
production workers or is responsible for the management position and its working
product. environment is supportive.
5. Construction - directly in charge of the
DECISION as “a determination arrived at after
construction personnel or can be responsible for
consideration.” Decision happens when a manager
the quality of building process.
selects from available options.
6. Sales - assists customers in meeting their needs,
in particular those requiring technical expertise. DECISION MAKING is a process of finding, selecting
7. Consulting - the consultant of any person or alternative courses of action to resolve the problem
organization requiring his professional expertise. in a manner appropriate to the need of the situation.
8. Government - employed in the government
performing any of the different tasks in CATEGORIES OF MANAGEMENT DECISION:
regulating, monitoring, and controlling the
1. Programmed Decision - a decision taken in
activities of several institutions, public or private.
response to a recurring problem experienced
9. Teaching - a position at the school and is trained
by the organization.
as an engineering teacher. Some are deans,
2. Non-Programmed Decision - a decision
directors, presidents, and chairman.
taken in response to unique or unique
10. Management - assigned to handle groups of
problem which has a great impact on the
individuals carrying out different tasks.
organization.
MANAGEMENT as “the act or art of managing: the
DECISION - MAKING MODELS
conducting or supervising of something (such as a
1. Classical Model
business).”
- based on the concept that managers should
ENGINEERING as “the application of science and make rational decisions in the best economic
mathematics by which the properties of matter and interests of the organization.
the sources of energy in nature are made useful to - uses a normative approach, which explains how
people.” decision-maker should decide, it provides
direction on how to achieve organization’s goal.
ENGINEERING MANAGEMENT is “a field that - effective for programmed decisions and those
concentrates on the application of engineering with less risk and information’s are certain.
principles for the effective planning and efficient 2. Administrative Model
operations of managing manufacturing or industrial - also known as bounded rationality model
operations.” - a model of decision-making explaining how
managers make decisions in circumstances
marked by non-programmed decisions.
- this model recognizes limitations on resources
and environment that affect the degree to which
managers make decision.
 DIFFERENT TYPES OF QUANTITATIVE TECHNIQUES:
3. POLITICAL MODEL 1. Inventory models - consists of several types, all
- is useful in making non-programmed decisions designed to assist the engineer manager in
where circumstances are unclear, knowledge is making inventory decisions.
scarce, and managers disagree about what target 2. Queuing Theory - is one that explains how to
to achieve or what course of action to take. assess the number of service units that will
- represents the actual environment in which reduce both waiting time and service costs for
engineer managers make complex decisions. customers.
3. Network Models - these are models in which
DECISION-MAKING PROCESS: large complex tasks are divided into smaller
1. Recognition of the criteria for decision segments which can be handled independently.
Problem - occurs when your desired outcome is not 4. Forecasting - defined as the collection of past
like the existing situation. information and current knowledge to predict
Opportunity - exists when managers see a potential the future.
achievement that exceeds the specified current 5. Regression Analysis - is a forecasting method
objectives. which examines the links between two or more
2. Analyzing Cause/s variables.
3. Development and evaluation of feasible 6. Simulation - used for theoretical modelling of
solutions natural systems or human processes to gain
 Value - refers to the expected outcome. insight into how they operate.
 Cost - refers to the money involve in 7. Linear Programming - is a quantitative
implementing the solution. methodology used to generate an optimal
 Risk Characteristics - refers to the probability of solution within the limits placed on the decision
achieving the expected outcome All by constraints.
consequences that each of the alternatives may 8. Sampling Theory - a quantitative methodology
encounter should be consider in the evaluation. that statistically establishes samples of
4. Selecting desirable option populations to be used in various systems, such
5. Implementing decision as quality assurance and marketing analysis.
6. Result review and evaluation 9. Statistical Decision Theory - refers to a logical
IN DECISION - making, engineer managers don’t way of conceptualizing, evaluating and
always resolve the issue directly, even how smart he addressing issues in circumstances involving
is. They may sometimes make wrong decisions. minimal or incomplete information of the issue.
MANAGERS CAN AVOID THE FACTORS CAUSING BAD A GOAL is “the end toward which effort is directed.”
DECISIONS BY BEING AWARE OF THE FOLLOWING Goals are important, they are identified and specified
SIX BIASES: for the operations to exist.
 Being influenced by initial impressions PLANNING is “the systematic development of action
 Justifying past decisions programs aimed at reaching agreed upon business
 Seeing what you want to see objectives by the process of analyzing, evaluating
 Perpetuating the status quo and selecting among the opportunities which are
 Being influenced by problem framing foreseen.”
 Overconfidence
TYPES OF PLANS
APPROACHES IN SOLVING PROBLEMS 1. Functional Area Plans - prepared by the different
1. QUALITATIVE EVALUATION - refers to the functional areas who needs it.
assessment of alternatives using previous A. Marketing Plan – is a written
experiences and intuition. document for the implementation and
2. QUANTITATIVE EVALUATION - refers to the control of the marketing activities of an
evaluation of alternatives using any method organization in relation to a particular
defined as analytical and logical. marketing strategy.
 B. Production plan – is a written  Project - a temporary effort to produce a
document that states the number of outputs unique product, service, or outcome.
a company must produce in accordance with
the customers’ requirements.
C. Financial Plan – is a document
summarizing the current financial status of
the organization, assessing its financial need, PLANNING PROCESS
and recommending activities to improve it. 1. Setting Plan / Organizational Goal
D. Human resource plan – it is a  Planning process begins with the goal setting.
document showing a company's human The engineer manager clearly defines the
resources needs, based on the criteria of the mission, vision, target, and direction of the firm.
company's strategic plan such as quantity When setting up the goal the engineer manager
and quality of the workers. must consider the following:
2. Plans With Time Horizon
 Specific and measurable
A. Short-range plans – are plans to
 Defined time period
cover a period of less than a year.
 Cover key result areas
Operational plan can also be considered as
 Challenging but realistic
short-range plan.
 Linked to rewards
B. Long-range plans – these are plans
which cover a period of more than one year. 2. Strategy and Tactics Development
These are carried out mostly by middle and  Strategical map and tactical plans are carried out
top management. in these processes. Contingency plan is also
3. Plans According to Frequency Use created to effectively respond to an unforeseen
A. Standing Plans - these are plans that circumstance.
are used again and again and they focus on
repeatedly recurring managerial situations. 3. Determining Resources Needed
 Factors needed for goal realization are identified,
STANDING PLANS ARE CLASSIFIED AS this may include the human and non-human
FOLLOWS: resources. Resources should be properly
 Policies – they are broad guidelines determined (quantity and quality) to avoid
to help managers decide on recurring excess or shortage cost in implementing the
situations or functions at all levels. strategies and tactics.
 Procedures – these are plans which
describe the exact set of measures to be 4. Implementation of Plan
taken in each situation.  After resources are identified, the next step is to
 Rules – they are regulations that implement the plan. Tools to execute the
either allow or forbid a certain action. strategy include management by objective,
results dashboards, and unified transparency
B. Single-Use Plans - these plans are designed Many companies have adapted management by
primarily to incorporate steps that are fairly new objectives in in the implementation goals,
and unlikely to be replicated. because they believe that they are well-oriented
when they use it.
SINGLE-USE PLANS MAY BE FURTHER
CLASSIFIED AS FOLLOWS: 5. Review and Monitor
 Budget - is a plan that sets out the projected  Lastly, managers frequently review plans to learn
expenditure for a given activity and explains from outcomes and change plans as necessary as
where the required funds will come from. possible if needed. Planning and operational
 Program - is a single use plan designed to reviews are normally done during this process.
coordinate a wide range of activities.
 ORGANIZING is define as “a management function
which refers to the structuring of resources and
activities to accomplish objectives in an efficient and
MAKING PLANNING EFFECTIVE: effective manner."
To make planning successful, the engineer manager ORGANIZING PROCESS
should observe the following:

1. Know the different barriers to planning.

 Manager’s planning ability is not suitable
 Planning process is incorrect
 Members are not engaged to the planning
process
 Gathered information are inappropriate
 Too much focus on the present at the cost of the
future
 Dependent on the planning department
 More focused on the controllable variable
ORGANIZATIONAL STRUCTURE
2. Use of aids to planning TYPES OF STRUCTURE:
- Planning aids may include but not limited to, 1. Formal Structure - is defined as the relationships
involving member in the planning process, between organizational resources as outlined by
gathering of more and appropriate information management. This structure is represented by an
and to develop different information sources. organizational chart, organizational manual, or
policy manual.
PLANNING TOOLS:  Organization Chart - is a diagram of the official
1. FORECASTING - is the method of forecasting positions and formal lines of authority of the
potential environmental conditions that will organization.
affect the activity of the organization.  Organizational Manual - details the outline of the
relationships between the authorities, describes
Types of Forecasting:
the roles of the major organizational units, and
 Qualitative - Jury of executive opinion, explains the work procedures.
Salesforce Estimation.  Policy Manuals - describes the organizational
 Quantitative - Moving Average, Regression. practices and strategies of the company.

2. SCHEDULING - process of drawing up a Purpose of the formal structure:

comprehensive list of the tasks to be carried out  It determines the relationships for individuals
to achieve the objective, the allocation of the and departments between tasks and authority.
resources required to achieve the objective, and  It describes hierarchical reporting relationships,
the development and follow-up of timetables for the number of levels in the organization's
the achievement of the objective. hierarchy and the scope of controls.
Scheduling Techniques:  It describes organizational groupings of
individuals into divisions and departments.
 Gannt Charts - Normally used for resource
 It specifies the framework for effecting effort
scheduling resources such as human resources
coordination in both vertical (authority) and
and machines
horizontal (task) directions.
 PERT (Program Evaluation and Review
Technique) - is a scheduling method that
stresses the interrelationship of tasks.
 of work, example marketing, finance, operation,
etc.
 Departmentalization based on Product or

Service- structure is based on the different

2. Informal Structure - defines as the formation of products produced or services provided by the
relationships that grows because of the informal firm.
activities of members in the organization. This is  Departmentalization based on Geography -
normally formed because of the following structure is based on the territorial assignment
factors: of where the work is done.
- Friendship  Departmentalization based on Customer -
- Common Interest structure is based on the different customers
- Proximity catered by the company.
- Collective Power  Departmentalization based on Matrix -
- Group Goals structure is based on the combination of two
structures, in which the worker reports to both
Informal structure can be useful if engineer manager the functional or division manager and to the
could utilize it properly but could also be destructive project manager. This structure normally
if neglected. borrows workers from other divisions.
FACTORS TO CONSIDER WHEN STRUCTURING AN 4. Span of Control – the number of workers directly
ORGANIZATION: reporting to a certain manager or head. This
1. Division of labor – determines the type and characteristic of structure determines how
scope of work and how they are integrated into a closely a supervisor can monitor subordinates.
job. This is also called work specialization, where Factors Influencing Span of Control:
many believes that tasks can be perform - Similarity of function
efficiently if the work is specialized. - Geographic Contiguity
2. Delegation of authority – the method of - Complexity of function
allocating subordinates to varying degrees of - Coordination
decision-making authority. It is also called the - Planning
chain of command, an unbroken line of authority
connecting all individuals within an entity and 5. Coordination – the linking of activities within an
showing who reports to whom. organization that serve a shared goal or purpose.
Types of authority: COMMITTEE
 LINE AUTHORITY – a manager's right to tell his
employees what to do and then see them doing Committee - is a structured group of individuals
it. organized for a particular purpose.
 STAFF AUTHORITY – specialist’s or experts right
CLASSIFICATION OF COMMITTEES:
to advice to superior
1. AD-HOC COMMITTEE – type of committee which
 FUNCTIONAL AUTHORITY – the right of a
is developed for a short-term purpose and with
professional to supervise the lower level of
limited life.
personnel engaged in that discipline, regardless
2. STANDING COMMITTEE – is a defined as a
of where the worker is in the organization.
systematic committee which constantly deals
with issues.
3. Departmentalization – grouping similar
employees, tasks, or processes into main
organizational sub-units.

TYPES OF DEPARTMENTALIZATION:
 Departmentalization based on Function -

organization structure is based on the function