Chapter 1: The Field of Engineering WHAT IS ENGINEERING

Management MANAGEMENT?
- refers to the activity combining
THE FUNCTIONS OF THE ENGINEER
“technical knowledge with the ability to
Since prehistoric times, various projects were organize and coordinate worker power,
developed by engineers: materials, machinery, and money”
1. Stone bladed axe MANAGEMENT DEFINED
2. Pyramids of Egypt “creative problem solving-process of
3. Roadbuilding by the Romans planning, organizing, leading, and
4. Production and paper and gunpowder controlling an organization’s resources to
5. Production of steam engine achieve its mission and objectives.”
6. Manufacture of cars and household
appliances REQUIREMENTS FOR THE ENGINEER
Engineers worked on solutions for the following MANAGER’S JOB
specific problem concerns: 1. bachelor’s degree in engineering from a
reputable school
 Production of more food for a fast-growing 2. a few years of experience
population 3. training in supervision
 Elimination of air and waste pollution 4. special training in engineering
 Solid waste disposal management
 Reduction of noise
 Supplying the increasing demand for energy
HOW TO BECOME A SUCCESSFUL
ENGINEER MANAGER ( Kreitner)
Functions of Engineering encompasses the
following areas: 1. ability- the capacity of an engineer manager
to achieve organizational objectives
 Research- process of learning about nature effectively and efficiently
and codifying this knowledge into useable 2. motivation to manage
theories 3. opportunity
 Design and development- turning a product
concept to a finished physical item
 Testing- new products or parts are tested for Chapter 2: Decision-Making
workability Decision-making is “the process of identifying and
 Manufacturing- in charge of production choosing alternative courses of action in a manner
personnel or assumes responsibility for the appropriate to the demands of the situation”
product
 Construction- either directly in charge of the THE DECISION-MAKING PROCESS
construction personnel or may have 1. Diagnose problem- the manager must
responsibility for the construction process identify the problem
 Sales- assists the company’s customers to 2. Analyze environment- identify the
meet their needs constraints such as limited funds & training
 Consulting- engineer works as a consultant (internal limitations), patents & limited
 Government- performing any of the various market (external limitations)
tasks in regulating, monitoring, and 3. Articulate problem or opportunity
controlling the activities 4. Develop Viable Alternatives
 Teaching- gets employment in a school and 5. Evaluate alternatives
is assigned as a teacher of engineering 6. Make a choice- select among alternatives
courses representing potential solutions to the
 Management- assigned to manage groups of problem.
people performing specific tasks 7. Implementing decision- carry out the
decision
8. Evaluate & Adapt Decision Results
THE ENGINEER IN VARIOUS TYPES OF
ORGANIZATION APPROACHES IN SOLVING PROBLEMS

1. Level One- minimal engineering jobs like 1. Qualitative Evaluation- evaluation of

retailing firms alternatives using intuition and subjective
2. Level Two- with moderate degree of judgement
engineering jobs like transportation (Stevenson) Use when:
companies  The problem is fairly simple,
3. Level Three- with high degree of familiar, low cost, & immediate
engineering jobs like construction firms decisions are needed.
 2. Quantitative Evaluation- using any THE PLANNING PROCESS
technique in a group classified as rational
1. Setting Organizational, Divisional, or Unit
and analytical
Goals
 to provide sense of direction
Types of Quantitative Techniques
 goals- precise statement of results
1. Inventory models
sought, quantified in time and
2. Queuing theory- describes how to
magnitude, where possible
determine the number of service units
2. Developing Strategies or Tactics to Reach
that will minimize both customers
Goals
waiting time and cost of service
 ways to realize the goals are called
3. Network models- large complex tasks
strategies
are broken into smaller segments
 strategy is a course of action aimed
4. Forecasting- collection of past and
at ensuring that the organization will
current information to make predictions
achieve its objectives while tactic is
about the future
a short-term action taken by
5. Regression analysis- a forecasting
management to adjust to negative
method that examines the association
internal or external influences.
between two or more variables
3. Determining Resources Needed
6. Simulation- represent reality, on which
4. Setting Standards
conclusions about real-life problems can
 “a quantitative or qualitative
be used
measuring device designed to help
7. Linear programming- used to produce an
monitor the performances of people,
optimum solution within the bounds
capital goods, or processes.”
imposed by constraints upon the
decision
8. Sampling theory- samples of populations TYPES OF PLANS
are statistically determined
9. Statistical decision theory- “rational way 1. Functional Area Plans
to conceptualize, analyze, and solve  Marketing plan- written document or
problems in situations involving limited, blueprint for implementing and
or partial information about the decision controlling an organization’s
environment” marketing activities
 Production plan- a written document
that states the quantity of output a
Chapter 3: Planning Technical Activities company must produce
 Financial plan- summarizes the
PLANNING DEFINED
current financial situation of the firm
“The management function that involves  Human resources management plan-
anticipating future trends and determining the best indicates the human resource needs
strategies and tactics to achieve organizational of a company detailed in terms of
objectives.” (Nickles & others) quantity and quality
2. Plans with Time Horizon
PLANNING AT VARIOUS MANAGEMENT
 Short-range plans- plans intended to
LEVELS
cover a period of less than one year
1. Top management level  Long-range plans- plans covering a
o Responsible for strategic planning- time span of more than one year
process of determining the major 3. Plans according to Frequency of Use
goals of the organization  Standing plans- plans that are used
2. Middle management level again and again
o Responsible for intermediate  Policies
planning- process of determining the  Procedures
contributions that subunits can make  Rules
with allocated resources  Single-Use Plans- unique and are
3. Lower management level unlikely to be repeated
o Responsible for operational  Budgets
planning- process of determining  Programs
how specific tasks can best be  Projects
accomplished on time with available
resources
PARTS OF THE VARIOUS FUNCTIONAL Chapter 4: Organizing Technical Activities
AREA PLANS
ORGANIZING TECHNICAL ACTIVITIES
The Contents of the marketing Plan
Organizing Defined
(by William Cohen)
 A management function which refers
1. Executive Summary- presents the overall to the structuring of resources and
view of the marketing project activities to accomplish objectives in
2. Table of Contents an efficient and effective manner
3. Situational Analysis & Target Market  The arrangement or relationship of
4. Marketing Objectives and Goals positions within an organization is
5. Marketing Strategies called structure.
6. Marketing Tactics
THE PURPOSE OF THE STRUCTURE
7. Schedules and Budgets
8. Financial Data and Control  Defines the relationship between
tasks and authority
 Defines formal reporting
The Contents of the Production Plan
relationships, the number of levels in
1. Amount of capacity the company must the hierarchy of the organization
have  Defines the groupings of individuals
2. How many employees are required into departments and departments to
3. How much material must be purchased organization
 Defines the system to effect
coordination of effort in both vertical
The Contents of the Financial Plan
and horizontal directions.
1. Analysis of the firm’s current financial
condition
When structuring an organization, the engineer
2. Sale forecast
manager must be concerned with the following:
3. Capital budget
4. Cash budget Division of labor- the scope of work and
5. Set of pro forma how it is combined in a job
6. External financing plan Delegation of authority- assigning various
degrees of decision-making authority to
subordinate
Contents of the Human Resources Plan
Departmentation- the grouping of related
1. Personnel requirements jobs
2. Plans for recruitment and selection Span of control- the number of people who
3. Training plan report directly to a given manager
4. Retirement plan Coordination- the linking of activities in the
PARTS OF THE STRATEGIC PLAN organization that serves to achieve a
common goal
1. Company or corporate mission
2. Objectives or goals
3. Strategies FORMAL ORGANIZATION
- “The structure that details lines of
MAKING PLAN EFFECTIVE responsibilities, authority, and position”
- Described by management through:
1. Recognize the planning barriers a.) Organization Chart- a diagram of the
The planning barriers (Plunkett & Attner): organization’s official positions and
Manager’s inability to plan formal lines of authority
Improper planning process b.) Organizational Manual- written
Lack of commitment descriptions of authority
Improper information relationships, details the functions of
Focusing on the present at the major organizational units, and job
expense of the future procedures
Too much reliance on the planning c.) Policy Manual- describe personnel’s
department activities and company policies.
2. Use of aids to planning INFORMAL GROUPS
Gather as much as information as
possible - Members of an organization
Develop multiple sources of spontaneously form a group with
information
 friendship as a principal reason for  Many meetings and more discussions than
belonging. action
TYPES OF ORGANIZATIONAL STRUCTURES
TYPES OF AUTHORITY
Organizations are classified into three: 1. Line Authority- a manager’s right to tell
1. Functional organization- everyone is subordinates what to do
engaged in one functional activity 2. Staff Authority- a staff specialist’s right to
2. Product or Market Organization- brings give advice to superior
together all those involved with a certain 3. Functional Authority- a specialist’s right to
type of product or customer oversee lower-level personnel involved in
3. Matrix organization- each employee reports that specialty
to both a functional or division manager and Staff officers are classified into:
to a project or group manager 1. Personal staff- individuals assigned to a
specific manager
Functional Organization 2. Specialized staff- individuals providing
ADVANTAGES needed staff services for the whole
 Permits economies of scale and efficient organization
resource use
 Decision-making is centralized TWO CLASSIFICATIONS OF COMMITTEE
 Excellent communication and coordination 1. Ad hoc committee- created for a short-term
among employees within each department purpose
 Provides in depth skill specialization and 2. Standing committee- permanent committee
development that deals with issues on an ongoing basis.
DISADVANTAGES
 Communication and coordination between Chapter 5: Staffing the Engineering
departments are often poor Organization
 Decisions are often delayed Staffing- the management function that determines
 Produce routine, nonmotivating employee human resource needs, recruits, selects, trains and
task develop human resources for jobs created by
 Difficult to identify which section is organization.
responsible for a certain problem
THE STAFFING PROCEDURE
Product or Market Organization 1. Human resources planning- the planned
output will require a systematic deployment
ADVANTAGES of human resources at various levels
 Forecasting
 Flexible and responsive to change
 Programming
 Provides a high concern for customer’s
 Evaluation and control
needs
2. Recruitment- attracting qualified persons to
 Excellent coordination across functional
apply vacant positions in the company so
departments
that those who are best suited to serve the
 Easy pinpointing of responsibility
company will be selected
DISADVANTAGES
Source of applicants:
 High possibility of duplication of resources
a. The organization’s current employees
 Less technical depth and specialization
b. Newspaper advertising
 Poor coordination across divisions
c. Schools
 Less top management control
d. Referrals from employees
 Competition for corporate resources
3. Selection- refers to the act of choosing from
those that are available individuals most
Matrix Organization
likely to succeed on the job.
ADVANTAGES
4. Induction and Orientation- employee is
 More efficient use of resources
provided with the necessary information
 Flexible & adaptive
about the company and is introduced to the
 The development of both general and
immediate working environment.
functional management skills is present
5. Training & Development- learning that is
 There is interdisciplinary cooperation
provided to improve performance on the
 There are enlarged tasks for employees
present job
which motivate them
6. Performance Appraisal- measurement of
DISADVANTAGES
employee’s performance
 Frustration and confusion from dual chain of
7. Employment Decisions
command
 Monetary rewards
 High conflict between divisional and
 Promotion
functional interests
  Transfer - To give feedback about performance
 Demotion - To motivate

8. Separation- either voluntary or involuntary 2. Upward Communication- messages from

termination of an employee persons in lower-level positions to persons
in higher positions. The techniques used in
Chapter 6: Communicating this communication includes:
Communication- “a process of sharing information Formal grievance procedures-
through symbols, including words and message” provides a system for employees to
(Morris Philip Wolf) air their grievances
Employee Attitude and Opinion
FUNCTIONS OF COMMUNICATION Surveys- finding out what the
1. Information function- information through employees think about the company
communication may be used for decision- through surveys
making at various work levels Suggestion systems- suggestion
2. Motivation function- used as a means to from employees
motivate employees to commit themselves Open-Door policy
to the organization’s objectives Informal Gripe Sessions
3. Control function Task forces
4. Emotive function- provides a means to 3. Horizontal Communication- messages sent
decrease the internal pressure affecting the to individuals or groups from another of the
individual same organization level or position.

COMMUNICATION PROCESS Management Information System (MIS)

1. Develop and idea - An organized method of providing past,
2. Encode present, and projected information on
3. Transmit internal operations and external
4. Receive intelligence for use in decision-making
5. Decode
6. Accept Chapter 7: Motivating
7. Use Motivation- refers to the act of giving employees
8. Provide feedback reasons or incentives to work to achieve
organizational objectives.
FORMS OF COMMUNICATION
a. Verbal- transmitted through hearing or sight FACTORS CONTRIBUTING TO MOTIVATION
b. Non-verbal- conveying message through 1. Willingness to do a job
body languages, as well as the use of time, 2. Self-confidence
space, touch, clothing, appearance, and 3. Needs satisfaction
aesthetic elements.
THEORIES OF MOTIVATION
BARRIERS TO COMMUNICATIONS 1. Maslow’s Needs Hierarchy Theory- human
Personal barriers- arises from the communicator’s beings have five basic needs:
characteristics as a person, such as emotions, values, physiological (food, water, sleep, sex),
poor listening habits, etc. security(freedom from harm),
Physical barriers- occurs in the environment where social(friendship, belonging, love),
the communication is undertaken such as noise. esteem(status, respect, prestige), and
Semantic barriers- the message is misunderstood self-actualization(self-fulfillment)
even though it is received exactly as transmitted 2. Herzberg’s Two-Factor Theory- by
Frederick Herzberg which indicates that a
OVERCOMING BARRIERS TO satisfied employee is motivated from within
COMMUNICATION to work harder and that a dissatisfied
1. Use feedback to facilitate understanding employee is not self-motivated
2. Repeat messages 3. Expectancy Theory- assumes that an
3. Use multiple channels individual will work depending on his
4. Use simplified language perception of the probability of his
expectations to happen
TECHNIQUES FOR COMMUNICATING IN 4. Goal Setting Theory- by Edwin Locke, the
ORGANIZATIONS process of improving performance with
1. Downward communication- messages flows objectives, deadlines or quality standards
from higher levels of authority to lower
levels
- To give instruction
TECHNIQUES MOTIVATION BEHAVIORAL APPROACHES TO
1. Motivation through job design- a person will LEADERSHIP STYLES
be highly motivated to perform if he is
1. Ways Leaders Approach People- a leader
assigned a job he likes
may approach people to motivate them in
2. Through rewards
two ways, either positive or negative
3. Through employee participation
approach
4. Other Motivation techniques such as flexible
2. Ways Leaders Use Power- autocratic
work schedules, family support services, &
leaders make decisions on their own while
sabbaticals
participative leaders openly invite his
subordinate to participate in decisions
Chapter 8: Leading
3. Leaders Orientation Toward Tasks and
Leading- a management function which involves People- a leader maybe employee oriented
influencing others to engage in the work behaviors or task oriented
necessary to reach organizational goals
CONTINGENCY APPROACHES TO
HOW LEADERS INFLUENCE OTHERS
LEADERSHIP STYLE
Bases of Power 1. Fiedler’s Contingency Model- leadership is
effective when the leader’s style is
1. Legitimate power- a person who occupies a
appropriate to the situation
higher position has legitimate power over
2. Hersey and Blanchard Situational
persons in lower positions
Leadership Model- suggests that the most
2. Reward power- when a person has the important factor affecting the selection of a
ability to give rewards to anybody who
leader’s style is the development level of
follows orders or request
subordinate
3. Coercive power- a person compels another 3. Path-Goal Model of Leadership- leadership
to comply with orders through threats or
can be made effective because leaders can
punishment
influence subordinate’s perceptions of their
4. Referent power- a person can get
work goals, personal goals, and paths to goal
compliance from another because the latter
attainment.
would want to be identified with the former
4. Vroom’s Decision-Making Model-
5. Expert power- provide specialized
prescribes the proper leadership style by
information regarding their specific lines of
focusing on the appropriate degrees of
expertise delegation of decision-making authority
THE NATURE OF LEADERSHIP
Chapter 9: Controlling
Leadership- the process of influencing and Controlling- the process of ascertaining whether
supporting others to work enthusiastically toward
organizational objectives have been achieved; if not,
achieving objectives
why not; and determining what activities should
then be taken to achieve objectives better in the
Traits of Effective Leaders
future.
1. A high level of personal drive- willing to
accept responsibility
STEPS IN THE CONTROL PROCESS
2. The desire to lead
1. Establishing performance objectives and
3. Personal integrity standards- what has to be achieved must first
4. Self- confidence be determined
5. Analytical Ability
2. Measuring actual performance- this step is
6. Knowledge of the company, industry or important in the sense that when
technology
shortcomings occur, adjustments could be
7. Charisma
made
8. Creativity
3. Comparing actual performance to objectives
9. Flexibility
and standards, and
4. Taking necessary action based on the results
Leadership Skills
of the comparisons
 Technical skills- specialized knowledge
needed to perform a job
 Human skills- the ability to deal with people
 Conceptual skills- the ability to think in
abstract terms, to see how parts fit together
to form the whole
TYPES OF CONTROL Kreitner has listed some of the common symptoms
1. Feedforward control- when management
1. Unexplained decline in revenues and profits
anticipates problems and prevents their
2. Degradation of service
occurrence
3. Employee dissatisfaction
2. Concurrent control- when operations are
4. Cash shortages caused by bloated
already ongoing and activities to detect
inventories
variances are made, this control is
5. Idle facilities or personnel
undertaken
6. Disorganized operations
3. Feedback control- when information is
7. Excessive costs
gathered about a completed activity, and in
8. Evidence of waste and efficiency
order that evaluation and steps for
improvement are derived
COMPONENTS OF ORGANIZATIONAL
CONTROL SYSTEMS
1. Strategic plan
2. The long-range financial plan
3. The operating budget
4. Performance appraisals
5. Statistical reports
6. Policies and procedures
STRATEGIC CONTROL SYSTEM
1. Financial analysis- fitting certain
measurements of financial performance be
made
2. Financial Ratio Analysis- one account is
paired with another to constitute a ratio. This
may be categorized as follows:
a. Liquidity- assess the ability of a
company to meet its current obligations
b. Efficiency- show how effectively certain
assets or liabilities are being used in the
production of goods and services
c. Financial leverage- group of ratios
designed to assess the balance of
financing obtained through debt and
equity sources
d. Profitability- measure how much
operating income or net income a
company is able to generate in relation to
its assets, owner’s equity, and sales

IDENTIFYING CONTROL PROBLEMS

1. Executive reality check- the engineer
manager could, once in a while, perform the
work of one of his laborers so he will be
able to see things that he never sees inside
the confines of his air-conditioned office
2. Comprehensive internal audit- this is
undertaken to determine the efficiency and
effectivity of the activities of an
organization
3. Symptoms of Inadequate control- If a
comprehensive internal audit cannot be
availed of for some reasons, the use of a
checklist for symptoms of inadequate
control may be used