GROUP 2

CE 322 - ENGINEERING MANAGEMENT AND SAFETY

GROUP MEMBER:
DE GUZMAN, FATIMA MAYE
BAÑAGA, CHERRY MAE
ELEMEN, MIRAH
INDUCTIVO, JAKE
LAGMAN, DIANNA MAE
VALMADRID, MHERWIN
START NOW
 CHAPTER 2

DECISION -
MAKING
DECISION -MAKING

Managers of all kinds and types,

including the engineer manager,
are primarily tasked to provide
leadership in the quest for the
attainment of the organization’s
objectives. If he is to become
effective, he must learn the
intricacies of decision-making.
DECISION -MAKING
The engineer manager’s decision-
making skills will be very crucial to
his success as a professional. A
major blunder in decision-making
may be sufficient to cause the
destruction of any organization.
Good decisions, on the other hand,
will provide the right environment
for continuous growth and success
of any organized effort.
DECISION-MAKING AS A
MANAGEMENT RESPONSIBILITY
Decision-making is a responsibility of the
engineer manager. It is understandable for
managers to make wrong decision at times.
The wise manager will correct them as soon as
they are identified. The bigger issue is the
manager who cannot or do not want to make
decisions. Delaney concludes that this type of
managers are dangerous and “should be
removed from their position as soon as
possible”
 WHAT IS DECISION-MAKING?

Decision-making may be defined as “the process of

identifying and choosing alternative courses of action in a
manner appropriate to the demands of the situation

Decisions are made at various management levels (i.e., top,

middle, and lower levels) and at various management
functions (i.e., planning, organizing, directing and controlling)
Decision-making, according to Nickles and others, “is the
heart of all the management functions”
 Rational decision-making,
THE DECISION- according to David H.
MAKING PROCESS Holt, is a process involving
the following steps:

01 diagnose, problem
02 analyze environment
03 articulate problem or opportunity

04 develop viable alternatives

 Rational decision-making,
THE DECISION- according to David H.
MAKING PROCESS Holt, is a process involving
the following steps:

evaluate alternatives
05
06 make a choice

07 implement decision

08 evaluate and adapt decision results

 DIAGNOSE PROBLEM
If a manager wants to make an intelligent decision,
his first move must be to identify the problem. If the
manager fails in this aspect, it is almost impossible
to succeed in the subsequent steps

WHAT IS A PROBLEM?
A problem exists when there is a difference between
an actual situation and a desired situation
ANALYZE THE 1. LIMITED FUNDS ARE AVAILABLE FOR
ENVIRONMENT THE PURCHASE OF EQUIPMENT

THE OBJECTIVE OF
ENVIRONMENTAL ANALYSIS
2. LIMITED TRAINING ON THE PART OF
IS THE IDENTIFICATION OF EMPLOYEES
CONSTRAINTS, WHICH MAY
BE SPELLED OUT AS EITHER
INTERNAL OR EXTERNAL 3. III - DESIGNED FACILITIES
LIMITATIONS. EXAMPLE OF
INTERNAL LIMITATIONS ARE
AS FOLLOWS
ANALYZE THE 1. PATENTS ARE CONTROLLED BY
ENVIRONMENT OTHER ORGANIZATIONS

2.A VERY LIMITED MARKET FOR THE

EXAMPLE OF EXTERNAL
COMPANY’S PRODUCTS AND
LIMITATIONS ARE AS SERVICES EXISTS
FOLLOWS:
3. STRICT-ENFORCEMENT OF LOCAL
ZONING REGULATIONS
 01 02
INTERNAL EXTERNAL

COMPONENTS OF THE
ENVIRONMENT
COMPONENTS OF THE ENVIRONMENT

INTERNAL ENVIRONMENT
THE INTERNAL ENVIRONMENT REFERS TO
ORGANIZATIONAL ACTIVITIES WITHIN A FIRM
THAT SURROUNDS DECISION-MAKING
 COMPONENTS OF THE ENVIRONMENT

EXTERNAL ENVIRONMENT
THE EXTERNAL ENVIRONMENT REFERS TO
VARIABLES THAT ARE OUTSIDE THE
ORGANIZATION AND NOT TYPICALLY WITHIN THE
SHORT-RUN CONTROL OF TOP MANAGEMENT
 DEVELOP VIABLE ALTERNALTIVES

OFTENTIMES, PROBLEMS MAY BE SOLVED BY ANY OF THE

SOLUTIONS OFFERED. THE BEST AMONG THE ALTERNATIVES
SOLUTIONS MUST BE CONSIDERED BY MANAGEMENT. THIS IS
MADE POSSIBLE BY USING A PROCEDURE WITH THE FOLLOWING
STEPS:

1. PREPARE A LIST OF ALTERNATIVE SOLUTIONS

2. DETERMINE THE VIABILITY OF EACH SOLUTIONS
3. REVISE THE LIST BY STRIKING OUT THOSE WHICH ARE NOT
VIABLE
EVALUATE ALTERNATIVES
HOW THE ALTERNATIVES WILL BE EVALUATED WILL
DEPEND ON THE NATURE OF THE PROBLEM, THE
OBJETIVES OF THE FIRM, AND THE NATURE OF
ALTERNATIVES PRESENTED. SOUNDER SUGGESTS THAT
“EACH ALTERNATIVES MUST BE ANALYZED AND
EVALUATEED IN TERMS OF ITS VALUE, COST, AND RISK
CHARACTERISTICS”
MAKE A CHOICE

CHOICE -MAKING REFERS TO THE

PROCESS OF SELECTING AMONG
ALTERNATIVES REPRESENTING
POTENTIAL SOLUTIONS TO A
PROBLEM
IMPLEMENT DECISION

IMPLEMENTATION REFERS TO CARRYING

OUT THE DECISION SO THAT THE
OBJECTIVES SOUGHT WILL BE ACHIEVED.
TO MAKE IMPLEMENTATION EFFECTIVE, A
PLAN MUST BE DEVISED.

AT THIS STAGE, THE RESOURCES MUST BE

MADE AVAILABLE SO THAT THE DECISION
MAY BE PROPERLY IMPLEMENTED
EVALUATE AND ADAPT DECISION RESULTS

IN IMPLEMENTING THE DECISION, THE RESULTS EXPECTED MAY

OR MAY NOT HAPPEN. IT IS, THEREFORE, IMPORTANT FOR THE
MANAGER TO USE CONTROL AND FEEDBACK MECHANISMS TO
ENSURE RESULTS AND TO PROVIDE INFORMATION FOR FUTURE
DECISIONS
EVALUATE AND ADAPT DECISION RESULTS

FEEDBACK REFERS TO THE PROCESS WHICH REQUIRES

CHECKING AT EACH STAGE OF THE PROCESS TO ASSURE THAT
THE ALTERNATIVES GENERATED, THE CRITERIA USED IN
EVALUATION, AND THE SOLUTION SELECTED FOR
IMPLEMENTATION ARE IN KEEPING WITH THE GOALS AND
OBJECTIVES ORIGINALLY SPECIFIED
EVALUATE AND ADAPT DECISION RESULTS
CONTROL REFERS TO ACTIONS MADE TO ENSURE THAT
ACTIVITIES PERFORMED MATCH THE DESIRED ACTIVITIES OR
GOALS, THAT HAVE BEEN SET
IF THE DESIRED RESULT IS ACHIEVED, ONE MAY ASSUME THAT
THE DECISION MADE WAS GOOD. IF IT WAS NOT ACHIEVED,
FERRELL AND HIRT SUGGEST THAT FURTHER ANALYSIS IS
NECESSARY
 01 02
QUALITATIVE QUANTITATIVE
EVALUATION EVALUATION

APPROACHES IN
SOLVING PROBLEMS
 QUALITATIVE EVALUATION
THIS TERM REFERS TO EVALUATION OF
ALTERNATIVES USING INTUITION AND
SUBJECTIVE JUDGEMENT. STEVENSON STATES
THAT MANAGERS TEND TO USE THE QUALITATIVE
WHEN:
1. THE PROBLEM IS FAIRY SIMPLE.
2. THE PROBLEM IS FAMILIAR.
3. THE COSTS INVOLVED ARE NOT GREAT/ LOW
COSTS.
4. IMMEDIATE DECISIONS ARE NEEDED
 QUANTITATIVE EVALUATION

THIS TERM REFERS TO THE EVALUATION OF

ALTERNATIVE USING ANY TECHNIQUE IN A
GROUP CLASSIFIED AS RATIONAL AND
ANALYTICAL.
QUANTITATIVE MODELS FOR DECISION MAKING

The types of quantitative technique which may be useful in

decision-making are as follows:

01 Inventory Models 06 Simulation

02 Queuing Theory 07 Linear Programming
03 Network Models 08 Sampling Theory
04 Forecasting 09 Statistical Decision Theory
05 Regression Analysis
 Inventory Models consists
of several types all
INVENTORY designed to help the
MODELS engineer manager make
decisions regarding
inventory. They are as
follows:
 ECONOMIC ORDER PRODUCTION ORDER
QUANTITY MODEL QUANTITY MODEL

THIS ONE IS USED TO THIS IS AN ECONOMIC ORDER

CALCULATE THE NUMBER QUANTITY TECHNIQUE APPLIE
OF ITEMS THAT SHOULD TO PRODUCTION ORDERS.
BE ORDERED AT ONE TIME
TO MINIMIZE THE TOTAL
YEARLY COST OF
PLACING ORDERS AND
CARRYING THE ITEMS IN
INVENTORY.
 BACK ORDER QUANTITY DISCOUNT
INVENTORY MODEL MODEL

THIS IS AN INVENTORY AN INVENTORY MODEL

MODEL USED FOR USED TO MINIMIZE THE
PLANNED SHORTAGES. TOTAL COST WHEN
QUANTITY DISCOUNTS ARE
OFFERED BY SUPPLIERS.
 ONE THAT DESCRIBES
HOW TO DETERMINE THE
QUEUING NUMBER OF SERVICE
THEORY UNITS THAT WILL
MINIMIZE BOTH
CUSTOMERS WAITING
TIME AND COST OF
SERVICE.
 THESE ARE MODELS
WHERE LARGE COMPLEX
NETWORK TASKS ARE BROKEN INTO
MODELS SMALLER SEGMENTS THAT
CAN BE MANAGED
INDEPENDENTLY. THESE
TWO PROMINENT MODELS
ARE:
1. THE PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
A TECHNIQUE WHICH ENABLES ENGINEER MANAGERS TO
SCHEDULE, MONITOR, AND CONTROL LARGE AND
COMPLEX PROJECTS BY EMPLOYING THREE TIME
ESTIMATES FOR EACH ACTIVITY.

2. THE CRITICAL PATH METHOD

THIS IS NETWORK TECHNIQUE USING ONLY ONE TIME
FACTOR PER ACTIVITY THAT ENABLES ENGINEER
MANAGERS TO SCHEDULE, MONITOR, AND CONTROL
LARGE AND COMPLEX PROJECTS.
 There are instances when
engineer managers make
decisions that will have
FORECASTING implications in the future.

Forecasting may be defined as

the “collection of past and
curent information to make
predictions about the future.”
 The regression model is a
forecasting method that examines
REGRESSION the associations between two or
more variables. It uses data from
ANALYSIS previous periods to predict future
events.
Regression analysis may be simple
or multiple depending on the
number of independent variables
present.
 A model constructed to represent
reality, on which conclusions about
real-life problems can be used. It is a
SIMULATION highly sophisticated tool by means
of which the decision maker
develops a mathematical model of
the system under consideration. It
does not guarantee an optimum
solution, but it can evaluate the
alternatives fed into the process by
the decision-maker.
 It is a quantitative technique that
is used to produce an optimum
LINEAR solution within the bounds
imposed by constraints upon the
PROGRAMMING decision. Linear programming is
very useful as a decision-making
tool when supply and demand
limitations at plants, warehouse,
or market areas are constraints
upon the system.
 Sampling Theory is a quantitative
technique where samples of
populations are statistically
SAMPLING determined to be used for number
THEORY of processes, such as quality
control and, marketing research.
When data gathering is expensive,
sampling provides an alternative.
Sampling, in effect, saves time and
money.
 Decision theory refers to the
STATISTICAL “rational way to conceptualize,
DECISION analyze, and solve problems in
situations involving limited or
THEORY partial information about the
decision environment.”
 STATISTICAL DECISION THEORY
A more elaborate explanation of decision theory is the
decision making process presented at the beginning of this
chapter. What has not been included in the discussion on the
evaluation of alternatives, but it is very important, is subjecting
the alternatives the Bayesian analysis.
The purpose of Bayesian Analysis is to revise and update
the initial assessment of the event probabilities generated by
the alternative solutions. This is achieved by the use of
additional information.
When the decision-maker is able to assign probabilities to
the various events, the use of probabilistic decision rule, called
the Bayes criterion, become possible. The Bayes criterion
selects the decision alternative having the maximum expected
payoff, or the minimum expected loss if he is working with a
loss table.
 CHAPTER 3

PLANNING
TECHNICAL
ACTIVITIES
THE NATURE OF
PLANNING

a plan, which is the output of

planning, provides a methodical
way of achieving desired results.
In the implementation of
activities, the plan serves as a
useful guide.
PLANNING AT VARIOUS
MANAGEMENT LEVELS
Planning activities undertaken at various levels are as follows:

TOP MIDDLE LOWER

MANAGEMENT MANAGEMENT MANAGEMENT
LEVEL LEVEL LEVEL
- - -
strategic intermediate operational
planning planning planning
THE TERM STRATEGIC PLANNING
REFERS TO THE PROCESS OF STRATEGIC
DETERMINING THE MAJOR GOALS
OF THE ORGANIZATION AND THE
PLANNING
POLICIES AND STRATEGIES FOR
OBTAINING AND USING
RESOURCES TO ACHIEVE THOSE
GOALS
 INTERMEDIATE PLANNING
REFERS TO “THE PROCESS
INTERMEDIATE OF DETERMINING THE
PLANNING CONTRIBUTIONS THAT
SUBUNITS CAN MAKE
WITH ALLOCATED
RESOURCES”
THE TERM OPERATIONAL
PLANNING REFERS TO “THE OPERATIONAL
PROCESS OF DETERMINING
PLANNING
HOW SPECIFIC TASKS CAN
BEST BE ACCOMPLISHED ON
TIME WITH AVAILABLE
RESOURCES”
THE PLANNING
PROCESS

01 SETTING ORGANIZATIONAL, DIVISIONAL, OR

UNIT GOALS

02 DEVELOPING STRATEGIES OR TACTICS TO

REACH THOSE GOALS

03 DETERMINING RESOURCES NEEDED

04 SETTING STANDARDS
 SETTING DEVELOPING
ORGANIZATIONAL, STRATEGIES OR
DIVISIONAL, OR UNIT TACTICS TO REACH
GOALS GOALS
A STRATEGY MAY BE DEFINED AS
“A COURSE OF ACTION AIMED
TO ENSURING THAT THE
GOALS MAY BE DEFINED AS
ORGANIZATION WILL ACHIEVE
THE “PRECISE STATEMENT
ITS OBJECTIVES”
OF RESULTS SOUGHT,
QUANTIFIED IN TIME AND A TACTIC IS A SHORT-TERM
MAGNITUDE, WHERE ACTION TAKEN BY MANAGEMENT
POSSIBLE” TO ADJUST TO NEGATIVE
INTERNAL OR EXTERNAL
INFLUENCES
 DETERMINING SETTING
RESOURCES NEEDED STANDARDS

TO SATISFY STRATEGIC
A STANDARD MAY BE DEFINED
REQUIREMENTS, A GENERAL
AS “ A QUANTITATIVE OR
STATEMENT OF NEEDED
QUALITATIVE MEASURING
RESOURCES WILL SUFFICE
DEVICE DESIGNED TO HELP
MONITOR THE PERFORMANCES
THE QUALITY AND
OF PEOPLE, CAPITAL GOODS, OR
QUANTITY OF RESOURCES
PROCESSES”
NEEDED MUST BE
CORRECTLY DETERMINED
 TYPES OF PLANS

FUNCTIONAL PLANS WITH PLANS WITH VARIED

AREA PLANS TIME HORIZON FREQUENCY OF USE

MARKETING SHORT - STANDING PLAN

PLAN RANGE POLICIES
PLAN PROCEDURES
PRODUCTION
PLAN
RULES
LONG-RANGE
FINANCIAL PLAN PLAN SINGLE-USE PLAN
BUDGET
HUMAN PROGRAM
RESOURCE PLAN PROJECTS
 PLANNING IS DONE SO THAT SOME DESIRED
MAKING PLANNING RESULTS MAY BE ACHIEVED. PLANNING MAY
EFFECTIVE BE SUCCESFUL IF THE FOLLOWING ARE
OBSERVED:

01 RECOGNIZE THE PLANNING BARRIERS

02 USE OF AIDS TO PLANNING

 THE PLANNING BARRIERS, ACCORDING TO
MAKING PLANNING
PLUNKETT AND ATTNER, ARE AS FOLLOWS:
EFFECTIVE

01 MANAGER’S INABILITY TO PLAN

02 IMPROPER PLANNING PROCESS

03 LACK OF COMMITMENT TO THE PLANNING PROCESS

04 IMPROPER INFORMATION

05 FOCUSING ON THE PRESENT AT THE EXPENSE OF THE FUTURE

06 TOO MUCH RELIANCE ON THE PLANNING DEPARTMENT

07 CONCENTRATING ON ONLY THE CONTROLLABLE VARIABLES

MAKING PLANNING AMONG THE AIDS TO PLANNING THAT MAY BE
USED ARE:
EFFECTIVE

01 02 03
GATHER AS DEVELOP INVOLVE
MUCH MULTIPLE OTHERS IN THE
INFORMATION SOURCES OF PLANNING
AS POSSIBLE INFORMATION PROCESS
 CHAPTER 4

ORGANIZING
TECHNICAL
ACTIVITIES
REASON FOR
ORGANIZING
ORGANIZING IS UNDERTAKEN TO
FACILITATE THE
IMPLEMENTATION OF PLANS. IN
EFFECTIVE ORGANIZING, STEPS
ARE UNDERTAKEN TO
BREAKDOWN THE TOTAL JOB
INTO MORE MANAGEABLE MAN-
SIZE JOBS.
 ORGANIZING DEFINED
Organizing is a management function which
refers to "the structuring of resources and
activities to accomplish objectives in an
efficient and effective manner.”
 1. DIVISION OF LABOR - DETERMINING THE SCOPE
OF WORK AND HOW IT IS COMBINED IN A JOB.

THE 2 DELEGATION OF AUTHORITY - THE PROCESS OF

PURPOSE ASSIGNING VARIOUS DEGREES OF DECISION-
MAKING AUTHORITY TO SUBORDINATES.
OF THE
3. DEPARTMENTATION - THE GROUPING OF
STRUCTURE RELATED JOBS, ACTIVITIES, OR PROCESSES INTO
MAJOR ORGANIZATIONAL SUBUNITS.

WHEN STRUCTURING AN 4. SPAN OF CONTROL - THE NUMBER OF PEOPLE

ORGANIZATION, THE WHO REPORT DIRECTLY TO A GIVEN MANAGER.
ENGINEER MANAGER
MUST BE CONCERNED
5. COORDINATION - THE LINKING OF ACTIVITIES IN
WITH THE FOLLOWING:
THE ORGANIZATION THAT SERVES TO ACHIEVE A
COMMON GOAL OR OBJECTIVE.
 After a plan is adapted,
THE FORMAL management will proceed to form
an organization to carry out the
ORGANIZATION activities indicated in the plan.

The formal structure is described by management through:

01 02 03
ORGANIZATION ORGANIZATION POLICY
CHART MANUAL MANUAL
THE FORMAL The formal structure is described by
management through:
ORGANIZATION

01 ORGANIZATION 02 ORGANIZATION 03 POLICY

CHART MANUAL MANUAL
It is a diagram of It provides written It describes
the organization's descriptions of personnel activities
official positions authority and company
and formal lines of relationships, policies.
authority. details the functions
of major
organizational units,
and describes job
procedures.
 INFORMAL GROUPS
There are instances when members of an
organization spontaneously form a group
with friendship as a principal reason for
belonging. This group is called an informal
group.
 TYPES OF ORGANIZATIONAL
STRUCTURES

FUNCTIONAL PRODUCT OR MATRIX

ORGANIZATION MARKET ORGANIZATION
ORGANIZATION
TYPES OF ORGANIZATIONAL STRUCTURES
FUNCTIONAL
ORGANIZATION

This is a form of
departmentalization
in which everyone
engaged in one
functional activity,
such as engineering
or marketing, is
grouped into one
unit.
TYPES OF ORGANIZATIONAL STRUCTURES
PRODUCT OR
MARKET
ORGANIZATION
This refers to the
organization of a
company by
divisions that brings
together all those
involved with a
certain type of
product or
customer.
TYPES OF ORGANIZATIONAL STRUCTURES

MATRIX
ORGANIZATION

An organizational
structure in which
each employee
reports to both a
functional or
division manager
and to a project or
group manager.
TYPES OF AUTHORITY
THE DELEGATION OF AUTHORITY IS A
REQUISITE FOR EFFECTIVE 2. STAFF AUTHORITY
ORGANIZING. IT CONSISTS OF THREE a staff specialist's right to
give advice to a superior.
TYPES. THEY ARE AS FOLLOWS:

1. LINE AUTHORITY 3. FUNCTIONAL AUTHORITY

a manager's right to tell a specialist's right to oversee
subordinates what to do lower-level personnel involved
in that specialty, regardless of
and then see that they do
where the personnel are in the
it.
organization.
Corsen-Tallows Builders 2020
THE PURPOSE OF
COMMITTEES
When certain formal groups are
deemed inappropriate to meet
expectations, committees are
oftentimes harnessed to
achieve organizational goals.
Many organizations, large or
small, make use of committees.
COMMITTEE CLASSIFICATION

Ad hoc committee - one created for a short-

01 term purpose and have a limited life. An

example is the committee created to manage
the anniversary festivities of a certain firm.

Standing committee - it is a relatively

02 permanent committee that deals with issues on

an ongoing basis. An example is the grievance
committee set up to handle initial complaints
from employees of the organization.
 THANK YOU!
CE 322 - ENGINEERING MANAGEMENT AND SAFETY

GROUP MEMBER:
DE GUZMAN, FATIMA MAYE
BAÑAGA, CHERRY MAE
ELEMEN, MIRAH
INDUCTIVO, JAKE
LAGMAN, DIANNA MAE
VALMADRID, MHERWIN
END