0% found this document useful (0 votes)
19 views82 pages

EM - Session 07

Uploaded by

Marc Efren Roxas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
19 views82 pages

EM - Session 07

Uploaded by

Marc Efren Roxas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 82

Engineering

Management
Class Session 03
04-23-2022

Internal
Specification

Internal
Engineering Management
Objectives:
• To know the basic functions of management.
• Describe the cultural setting within which managers
make decision and the moral framework of their
management philosophies.
• Describe the basic functions of manager.
• Learn the stages of strategic planning and to know
the hierarchy of plans and competitive strategies
• Describe and apply in case studies the elements and
the different types of leadership.
• Describe the structure of formal organization
• Describe the basic principles of controlling and the
essentials elements of a control system.
Internal
Engineering Management
Course Outline:
1. Evolution of Management Theory
2. Management and Functions
3. Planning
3.1 Mission Vision
3.2 Stages of Strategic Planning
3.3 Strategy Formulation
3.4 SWOT Analysis, PEST analysis and Poter’s Five
Forces Model
4. Leading
4.1 Leadership Across Cultures
4.2 Sources of power
4.3 Leadership Models
4.4 Kinds/Types of leaders
Internal
Engineering Management
Course Outline:
5. Organizing
5.1 Organization Design
5.2 Determinants of structure
5.3 Job Design and Job Characteristic Model
6. Controlling
6.1 Control System
6.2 Control Process
6.3 Types of Organizational Control Systems
7. Managing Product and Service operations
8. Managing the Marketing Function
9. Managing the Finance Function

Internal
Engineering Management
Management
• Is getting work done through others.
• Requires a set of activities (including planning and
decision making, organizing, leading, and controlling)
directed at an organization’s resources (human,
financial, physical, and information), with the aim of
achieving organizational goals in an effective and
efficient manner.

• An organization is a group of people working


together in a structured and coordinated fashion to
achieve a set of goals.

Internal
Engineering Management
What is Engineering?
The profession in which a knowledge of the
mathematical and natural sciences gained by study,
experience, and practice is applied with judgment to
develop ways to utilize, economically, the materials
and forces of nature for the benefit of mankind.

Engineer: A person applying his/her mathematical


and science knowledge properly to solve practical
problems.

Internal
Engineering Management

• Engineer Management is concerned with the design,


installation, and improvement of integrated systems of people,
material, information, equipment, and energy by drawing upon
specialized knowledge and skills in the mathematical, physical,
and social sciences, together with the principles and methods
of engineering analysis and design to specify, predict, and
evaluate the results to be obtained from such systems

• Scientific discipline, which designs, implements and/or


develops models, processes and systems by taking into account
the engineering relationships between the management tasks
of planning, organizing, leading and controlling and the human
element in production, research, marketing, finance and other
services.

Internal
Engineering Management

• Engineering management is the fusion of business and


engineering principles.
• By having knowledge of economics and management they
can forecast or can predict the utility, advantages,
disadvantages of the product. also get to know the scope
of the product and it's contribution in growth.
• Specialized form of management that is concerned with
the application of engineering principles to business
practice.
• Career that brings together the technological problem-
solving savvy of engineering and the organizational,
administrative, and planning abilities of management in
order to oversee complex enterprises from conception to
completion.
Internal
Engineering Management
Engineering Management Domain

Internal
Engineering Management
Example areas of engineering management
area are:

• Product development
• Manufacturing
• Construction
• Design engineering
• Industrial engineering
• Technology
• Production

Internal
Engineering Management

Successful engineering managers typically require


training and experience in business and engineering to:
• Operating effectiveness and efficiency is
• Problem solving and operations improvement

• Managers within the field of engineering are trained


to understand Human resource management,
finances, industrial psychology, quality control,
operations research and environmental
management.

Internal
Engineering Management

Internal
Engineering Management
FUNCTION OF ENGINEERS
Research – is where the engineer engaged in the process of
learning about the nature and codifying this knowledge into
usable theories
Design & Development – is where the engineer undertakes
the activity of turning the product concept to a finished
physical terms.

Testing – is where the engineer works in a unit where new


products or parts are tested for workability.

Manufacturing – is where the engineer directly in charge of


production personnel or assumes responsibility for the
products.
Internal
Engineering Management

Construction – is where the engineer (usually a civil


engineer) is either directly in charge of the construction
personnel or may have responsibility for the quality of the
construction process.

Sales – is where the engineer assists the company’s


customer to meet their needs especially those that requires
technical expertise.

Consulting – is where the engineer works as consultant of


any individual or organization requiring his/her services.

Internal
Engineering Management

Government – is where the engineer may find employment


in the government performing any various tasks in
regulating, monitoring, and controlling the activities of
various institutions.

Teaching – is where the engineer gets employment in the


school and is assigned as a teacher of engineering course.
Some of them later become deans, vice president and
presidents.

Management – is where the engineer is assigned to


manage groups of people performing specific tasks.

Internal
Engineering
Management
Class Session 04
04-28-2022

Internal
Engineering Management

Function of Manager

Leading

Internal
Engineering Management
Management is getting things through others,
Management needs:

• Objective
• Resources,
• Methods,
• Organization setting,
• People

Internal
Engineering Management
Planning
• Manager should have objective in mind
• Planning help manager to do the right
things
•Well planning needs the following
• Defining objectives,
• Deciding what/when/how/who
What is to be done,
- When it is to be done,
- How it is to be done,
- Who is to do it,

Internal
Engineering Management

Organizing
• Gathering and allocating resources,
• Coordinating the work of the organization,
• Deliberate creation a configuration that defines the
followings:
- How authority is structured,
- How communication flows,
- How tasks are accomplished

Internal
Engineering Management

Leading
• Redirecting human behavior to
achieve objectives
• Motivating others to produce,
• Influencing subordinates

Controlling
• Keeping things on track,
• Steering performance towards desired
goal,
• Coordinating monitoring and adjusting
performance
Internal
Engineering Management
Managerial skills

Internal
Engineering Management

Level Type of Job


 Directly supervise non-managers.
 Carry out the plans and objectives of higher management using
the personnel and other resources assigned to them.
First-line Managers  Short-range operating plans governing what will be done
tomorrow or next week, assign tasks to their workers, supervise
the work that is done, and evaluate the performance of individual
workers.
 Manage through other managers.
 Make plans of intermediate range to achieve the long-range goals
set by top management, establish departmental policies, and
evaluate the performance of subordinate work units and their
Middle Management managers.
 Provide and integrating and coordinating function so that the
short-range decisions and activities of first-line supervisory
groups can be orchestrated toward achievement of the long-range
goals of the enterprise.
 Responsible for defining the character, mission, and objectives of
the enterprise.
 Establish criteria for and review long-range plans.
Top Management
 Evaluate the performance of major departments, and they evaluate
leading management personnel to gauge their readiness for
promotion to key executive positions.
Internal
Engineering Management
Contrast between American and Japanese
organizations

Internal
Engineering Management
Difference Between Boss & Leader

Internal
PLANNING

Definition: Planning is the fundamental management


function, which involves deciding beforehand, what is to be
done, when is it to be done, how it is to be done and who is
going to do it. It is an intellectual process which lays
down an organisation’s objectives and develops various
courses of action, by which the organisation can achieve
those objectives. It chalks out exactly, how to attain a
specific goal.
Planning is nothing but thinking before the action takes
place. It helps us to take a peep into the future and decide
in advance the way to deal with the situations, which we
are going to encounter in future. It involves logical thinking
and rational decision making.
Internal
Characteristics
of Planning

Internal
Characteristics of Planning

1.Managerial function: Planning is a first and foremost


managerial function provides the base for other functions
of the management, i.e. organising, staffing, directing and
controlling, as they are performed within the periphery of
the plans made.
2.Goal oriented: It focuses on defining the goals of the
organization, identifying alternative courses of action and
deciding the appropriate action plan, which is to be
undertaken for reaching the goals.
3.Managerial function: Planning is a first and foremost
managerial function provides the base for other functions
of the management, i.e. organising, staffing, directing and
controlling, as they are performed within the periphery of
the plans made.
Internal
Characteristics of Planning
4. Continuous Process: Plans are made for a specific term, say
for a month, quarter, year and so on. Once that period is over,
new plans are drawn, considering the organization’s present
and future requirements and conditions. Therefore, it is an
ongoing process, as the plans are framed, executed and
followed by another plan.
5. Intellectual Process: It is a mental exercise at it involves the
application of mind, to think, forecast, imagine intelligently
and innovate etc.

Internal
Characteristics of Planning
6. Futuristic: In the process of planning we take a sneak
peek of the future. It encompasses looking into the future,
to analyse and predict it so that the organization can face
future challenges effectively.

7. Decision making: Decisions are made regarding the


choice of alternative courses of action that can be
undertaken to reach the goal. The alternative chosen should
be best among all, with the least number of the negative
and highest number of positive outcomes

Internal
Importance of Planning

•It helps managers to improve future performance, by


establishing objectives and selecting a course of action, for
the benefit of the organization.

•It minimizes risk and uncertainty, by looking ahead into


the future.

•It facilitates the coordination of activities. Thus, reduces


overlapping among activities and eliminates unproductive
work.
•It states in advance, what should be done in future, so it
provides direction for action.

Internal
Importance of Planning
•It uncovers and identifies future opportunities and
threats.

•It sets out standards for controlling. It compares actual


performance with the standard performance and efforts are
made to correct the same.

Planning is present in all types of organizations, households,


sectors, economies, etc. We need to plan because the
future is highly uncertain and no one can predict the future
with 100% accuracy, as the conditions can change anytime.
Hence, planning is the basic requirement of any
organization for the survival, growth and success.
Internal
Internal
Engineering
Management
Class Session 05
05-05-2022

Internal
Types of Plans

 Strategic Plan – covers the major goals of the entire


organization. It is a long-range plan that is normally
initiated by the top level managers

 SWOT Analysis– strategic planning that scans the internal


and external environment factors:

1. Strengths
2. Weaknesses
3. Opportunities
4. Threats

Internal
 Tactical Plan – is concerned in the developing very
detailed strategies about what needs to be done, who
should do it, how it should done. Middle-level managers
often engage in tactical planning

 Operational Plan – is the one that a manager uses to


accomplish his or her job responsibilities. This is developed
to support tactical plans. Usually, it is the lower level
management involved in operational planning. Operational
plan can be single-use plan or ongoing plan.

Internal
 Single-use Plan – are specifically develop to implement
courses of actions that do not recur or repeat.

- Program – integrated plans achieving specific goals

- Project – specific action plan to complete a program

- Budget – plan that explains sources of income and


how much are used for certain activity.

Internal
 Ongoing Plan – are plans that are used repeatedly,
usually focusing on managerial situations.

Policies – broad guidelines for managers to follow in handling


routine management responsibilities.

Procedures – step-by-step directions that explains how


activities or task are to be carried out.

Rules – statements that tell what actions are required and


forbidden.

Internal
 Contingency Plan – involves alternative courses of action
when the original plans that have been developed do not
achieve the goals of the organization.

Time Horizons of Plans


Short-term plans – less than one year

Intermediate-term plans – 1- 5 years

Long-term plans – more than 5 years

Internal
Engineering
Management
Class Session 06
05-12-2022

Internal
Organizational Model

Internal
Organization

Internal
Organizational Model
Any collection of persons, materials, procedures, ideas or
facts so
managed & ordered that in each case the combination of
parts makes a meaningful whole that at achieving
organization objectives.
• In other words the process of organization implies the
arrangement of human & nonhuman resources to make a
meaningful whole that accomplishes organizational
objectives.

• Every employee must be informed of what is expected of


him
(responsibility) & what is within his power (authorities), This
is usually found in the "job description".
Internal
Organizational Model
1.Line Organizational Model is a very simple
hierarchal structure that could have the CEO over the
Operations Director and the Administrative Director.
Those two are lateral equivalents, meaning they don't
respond to each other but have the same level of
influence in the company's structure. Under each
would be designated area managers each with their
own team. It's very clear that one person is on top with
a flow of delegation and management going down.
This tends to be a more rigid operational model.

Internal
Organizational Model

Internal
Organizational Model
2. The Functional Organizational Model looks similar to the
Line model except instead of subordinates only reporting to
the manager directly above them, they report to two or
more managers. This model is designed to help keep all
pertinent parties engaged with the right information by
getting all of the information from subordinate employees. It
also prevents over-specialization of any one job to keep the
company nimble in changing times.

Internal
Organizational Model

Internal
Organizational Model
3. The Line and Staff Model is a structure that functions the
same way that the Line model does except each managerial
level has an added dynamic of its own staff. So directors
report to the CEO but may do so via the CEO's personal staff.
Directors may share a staff that are not the subordinate
teams in the structure but instead support the
administrative needs of the Directors.

Internal
Organizational Model

Internal
Organizational Model
4. Project-Based Models become much more dynamic
compared to the three varieties of line models defined above.
When any company is highly project-oriented, it usually
designates teams of similar job functions to provide each
team with specialty resources. The resources become
immediately available rather than accessible outside of the
team in a different department. For example, an internet
technology company developing several new software
packages might have a team for each new package that
includes its own set of coders, developers, designers, analysts
and testers.

Internal
Organization

Internal
Organizational Model
5. The Matrix Model is the most dynamic operational model
and quite effective for companies that are simultaneously
running multiply product launches, marketing campaigns
and development. Managers oversee the role of their
department leads within a team while keeping a pulse on all
the teams progress. This allows for managers to combine
resources that individual teams might not see in their own
microcosm of the project. For example, a company Matrix
structure might have a Marketing, Operations, Finance and
HR Manager overseeing multiple projects. Each project has
representatives in at least one team. If the marketing
manager sees that Team A and Team C have products that
can be launched as a package, he can direct resources to
leverage budgets and combine graphics and design
resources.
Internal
Organizational Model

Internal
Organizational Model
The Matrix Organizational Structures

• Attempts to maximize the strengths and minimize the


weaknesses of both the functional and product bases.

• Superimpose a horizontal structure of authority,


influence, and communication on the vertical structure.

• Facilitates the utilization of highly specialized staff and


equipment

Internal
Organizational Model
Managers decide how to

 Divide the overall task into successively smaller jobs


 Decide the bases by which to group the jobs
 The appropriate size of the group reporting to each
superior
 Distribute authority among the jobs

• After deciding on the major operating units &


departments the required resources must be acquired &
fitted in the right place.

Internal
Organizational Model
• Formal relationship between people in various positions in
theorganization.

• They shown who supervises whom & how various jobs &
departments are linked together to make achieve
coordinated system.

• Main channels of communication (downward, upward ,


horizontal, and diagonal)

Internal
Organizational Model
• Organization structure designates formal reporting
relationships, including the number of levels in the hierarchy
and the span of control of managers and supervisors.

• Organization structure identifies the grouping together of


individuals into departments and of departments into the
total organization.

• Organization structure includes the design of systems to


ensure effective communication, coordination, and
integration of effort across departments.

Internal
Organizational Model
Elements Organization Structure

• Division of Labor
• Departmentalization
• Span of Control
• Delegation of Authority

Internal
Organizational Model
Division of Labor
• It is the process of dividing work into relatively
specialized jobs to achieve advantages of specialization.
• Subdivision of work into separate jobs assigned to
different people
• Division of Labor Occurs in Three Different Ways:
1. Personal specialties
e.g., accountants, software engineers,
graphic designers, scientists
2. Natural sequence of work
e.g., dividing work in a manufacturing plant
into fabricating and assembly (horizontal
specialization)
Internal
Organizational Model
 Division of Labor
3. Vertical plane
e.g., hierarchy of authority from lowest
level manager to highest-level manager
 Coordination
• Coordination means assembling & synchronizing
work efforts so that they function harmoniously to
attain organizational objectives.

Internal
Organizational Model
Departmentalization
• Departmentalization is the (horizontal) differentiation of
the organization in departments. Departments are
organizational units that share a common supervisor and
common resources, are jointly responsible for performance,
and tend to identify and collaborate with one another.

• The process of grouping activities into units for purposes


of administration.

• It can be grouping by services, location, or by geographic


area.

Internal
Organizational Model
Departmentalization

Internal
Organizational Model
Span of Control
• Number of individuals who report
to a specific manager.

• Number of people directly


reporting to the next level.

Internal
Organizational Model
Span of Control

Internal
Organizational Model
Delegation of Authority
• Process of distributing authority downward in an
organization.
• Managers decide how much authority should be delegated
to each job to each jobholder.

• Three Forms of Authority:


- Line authority flows up and down the chain of
command
- Staff authority is based on expertise that usually
involves
counseling and advising line managers
- Committee and team authority is granted to
committees or work teams Internal
involved in a firm’s daily
Organizational Model
Centralization and Decentralization

• Refers to the level at which most or the operating decisions will be


made.
• The greater the number of decisions made lower down the
management.
Hierarchy the greater the degree of decentralization.

• Generally speaking, it is advisable that decisions concerning day- today


matters should be pushed down the organization structure and not be
handled by top management.

Internal
Organizational Model
Advantages of Decentralization

• Quick action regarding specific problems.


• Facilitates adaptation of decisions according to local needs.
• Relieves top management from involvement in routine decisions thus
saving time and energy.
• Increases flexibility of action as junior staff are allowed to make
Prompt decisions without having to wait for approval from to
management.
• Effective in developing the junior staff to hold top management
Positions.

Internal
Organizational Model
Advantages of Centralization

• Uniformity of policy and action.


• Enables maximum use of the skills and knowledge of centralized Staff.
• Fosters better control of the organizations activities.
• Enables the use of not highly skilled subordinates since every little
detail is set by the top management.
• Unity of Command – The classical principle of command suggested
that each individual in the Organization should be directly responsible
to, and receive orders from, Only ONE supervisor and through this
ultimately answerable to the head Of the organization.

Internal
Organizational Model

Dimensions of Structure
• Formalization – the extent to which expectations regarding the
means and ends of work are specified, written, and enforced.

• Centralization – the location of decision-making authority in the


hierarchy.

• Complexity – the direct outgrowth of dividing work and creating


departments.

Internal
Organizational Model
Mechanistic vs. Organic Structures

Internal
Organizational Model
Mechanistic vs. Organic Structures

Internal
Organizational Model

Internal
Organizational Model
Functional Organizational Structure
• Organizes employees around skills or other resources (marketing,
production)
• Create subordinate goals.

Internal
Organizational Model
Functional Organizational Structure
• Benefits
- Supports professional identity and career paths
- Permits greater specialization
- Easier supervision --similar issues
- Creates an economy of scale --common pool of talent

• Limitations
- More emphasis on subunit than organizational goals;
failure to develop broad understanding of the business
- Higher dysfunctional conflict because emphasized
differences across subunits
- Poorer coordination -- requires more controls

Internal
Organizational Model
Divisional Organizational Structures
• Organizes employees around outputs, clients, or geographic areas

Internal
Organizational Model
Divisional Organizational Structures

• Benefits
- Building block structure -- accommodates growth
- Better coordination in diverse markets
• Limitations
- Duplication and inefficient use of resources
- Specializations are dispersed, creating silos of
knowledge

Internal
Organizational Model
The Matrix Organizational Structures

• Employees are temporarily assigned to a specific project


team and have a permanent functional unit

Internal
Organizational Model
Hybrid Organizational Structures
• Parts are combined to maintain balance of power and
effectiveness across functional, product, geographic and client
focused units.

Internal
Organizational Model
Organizational Culture
• A system of shared values, assumptions, beliefs, and norms
that unite the members of an organization.
• Reflects employees’ views about “the way things are done”
• The culture specific to each firm affects how employees feel
and act and the type of employee hired and retained by the
company

Internal
Organizational Model
Characteristics of Organization Culture

• It is distinctive
• It is based on certain Norms
• It promotes Stable values
• It leads to common behavioral aspects
• It shapes philosophy and rules
• Its strength varies

Internal
Strategy

Internal

You might also like