ENM REVIEWER 7.

Evaluate and Adapt Decision Results - Use control and feedback mechanisms
CHAPTER 2: DECISION-MAKING to ensure results and to provide information for future decisions.
 DECISION-MAKING AS A MANAGEMENT RESPONSIBILITY  Feedback - process which requires checking at each stage of the process to
- The higher the management level is, the bigger and the more assure that the alternatives generated
complicated decision-making becomes  Control - made to ensure that activities performed match the desired activities
 WHAT IS DECISION-MAKING? or goals, that have been set.
- Decision-making may be defined as “the process of identifying and choosing  APPROACHES IN SOLVING PROBLEMS
alternative courses of action in a manner appropriate to the demands of the  Qualitative evaluation
situation. - Evaluation of alternatives using intuition and subjective judgment.
- The definition indicates that the engineer manager must adapt a certain ° the problem is fairly simple ° the problem is familiar
procedures designed to determine the best option available to solve certain ° low cost ° immediate decisions are needed
problems.  Quantitative evaluation
 THE DECISION-MAKING PROCESS - Evaluation of alternatives using any technique in a group classified as
1. Diagnose Problem - “identification of the problem is tantamount to having the rational and analytical.
problem half-solved.” A problem exists when there is a difference between an  QUANTITATIVE MODELS FOR DECISION MAKING
actual situation and a desired situation. a) Inventory Models
2. Analyze the Environment - The objective of environmental analysis is the  Economic order quantity model – calculate the number of items that should be
identification of constraints, which may be spelled out as either internal or ordered at one time to minimize the total yearly cost of placing orders and
external limitations. carrying the items in inventory
 Example of internal limitations (organizational activities within a firm)  Production order quantity model - an economic order quantity technique
 Limited funds available for the purchase of equipment. applied to production orders.
 Limited training on the part of employees.  Back order inventory model - used for planned shortages
 III-designed facilities.  Quantity discount model - used to minimize the total cost when quantity
 Examples of external limitations (outside the organization and not typically discounts are offered by suppliers.
within the short-run control of top management) b) Queuing Theory - Determine the number of service units that will minimize
 Patents are controlled by other organizations. both customer waiting time and cost of service.
 A very limited market for the company’s products and services exists. c) Network Models - models where large complex tasks are broken into smaller
 Strict enforcement of local zoning regulations segments that can be managed independently.
3. Develop Viable Alternatives  The Program Evaluation Review Technique (PERT) - Engineer managers can
 Prepare a list of alternative solutions. schedule, monitor, and control large and complex projects using a technique
 Determine the viability of each solutions. that employs three time estimates for each activity.
 Revise the list by striking out those which are not viable.  The Critical Path Method (CPM) – using only one time factor per activity that
4. Evaluate Alternatives - The evaluation of alternatives depends on the enables engineer managers to schedule, monitor, and control large and
problem's nature, firm's objectives, and presented alternatives. Proper complex projects.
evaluation simplifies solution selection by analyzing value, cost, and risk d) Forecasting - Collection of past and current information to make predictions
characteristics. about the future.
5. Make a choice -process of selecting among alternatives representing potential e) Regression Analysis - Regression analysis is a forecasting method that uses data
solutions to a problem. Identify all significant consequences of each choice. from previous periods to predict future events, varying in complexity depending
6. Implement Decision - Carrying out the decision so that the objectives sought on the number of independent variables involved.
will be achieved
f) Simulation - a model constructed to represent reality, on which conclusions a) SETTING ORGANIZATIONAL, DIVISIONAL OR UNIT GOALS
about real-life problems can be used, mathematical model of the system under - Provide “Sense of direction”.
consideration. b) DEVELOPING STRATEGIES OR TACTICS TO REACH THOSE GOALS
g) Linear Programming - used to produce an optimum solution within the bounds  Strategy - A course of action aimed at ensuring that the organization will
imposed by constraints upon the decision achieve its objectives.
h) Sampling Theory - samples of populations are statistically determined to be  Tactics- A short-term action taken by management to adjust to negative
used for a number of processes, such as quality control and marketing research. internal or external influences.
i) Statistical Decision-Theory- “rational way to conceptualize, analyze, and solve c) DETERMINING RESOURCES NEEDES
problems in situations in solving limited, or partial information about the d) SETTING STANDARDS
decision environment.  TYPES OF PLANS
 Bayesian analysis - revise and update the initial assessments of the event 1. Functional Area Plans - Plans can be developed based on the specific
probabilities generated by the alternative solutions requirements of various functional areas.
 Bayes criterion - selects the decision alternative having the maximum expected  Marketing Plan - Written document or blueprint for implementing and
payoff, or the minimum expected loss if he is working with a loss table controlling an organization’s marketing activities related to a particular
CHAPTER 3: PLANNING TECHNICAL ACTIVITIES marketing strategy.”
 NATURE OF PLANNING  Production Plan - Written document that states the quantity of output a
- requiring planning to minimize mistakes in decision-making. company must produce in broad terms and by product family.
 Plan  Financial Plan - Summarizes the current financial situation of the firm,
- methodical way - intention or decision analyzes financial needs, and recommends a direction for financial
- useful guide - prevent/ avoid activities.
 FOUR PRINCIPLES  Human Resource Management Plan - Document that indicates the human
- PRIMACY OF PLANNING - CONTRIBUTION OF OBJECTIVES resource needs of a company detailed in terms of quantity and quality and
- PERVASIVENESS OF PLANNING - EFFICIENCY OF PLANNING based on the requirements
 “PLANNING” DEFINED 2. Plans with Time Horizon
- Management involves anticipating future trends, determining  Short-range plan - designed to address a timeframe of under one year.
strategies, selecting tasks, deciding on tasks, assigning roles, and setting  Long-range plans – cover a duration that exceeds a single year, extending
standards for achieving organizational goals, and selecting the best over multiple years.
course of action for desired results. 3. Plans According to Frequency of Use
 Planning at Various Management Levels  Standing plans – used again and again, focused on managerial situations
 TOP MANAGEMENT (Strategic Planning) a) Policies – broad guidelines, about recurring situations or function.
- The process of determining the major goals of the organization and the b) Procedures – plan that describe the exact series of actions to be taken in
policies and strategies for obtaining and using resources to achieve situation
these goals. c) Rules – statements that either require or forbid a certain action.
 MIDDLE MANAGEMENT (Intermediate Planning)  Single-use plans – unique and are unlikely to be repeated.
- The process of determining the contributions that subunits can make a) Budgets – projected expenditure for a certain activity and explains where
with allocated resources. It is designed to support the strategic plan. the required funds will come
 LOWER MANAGEMENT (Operational Planning) b) Programs – designed to coordinate a large set of activities.
- The process of determining how specific tasks can best be c) Projects – limited in scope, sometimes prepared to support a program.
accomplished on time with available resources.  Parts of the Strategic Plan
 PLANNING PROCESS
  Company or corporate’s mission – strategic statement that identifies  Leading indicators – refers to time series that anticipate business cycle
why an organization exists turns.
 Objectives and goals *Strategies c) Monitoring methods -provide early warning signals of significant changes
 MAKING PLANNING EFFECTIVE in established patterns and relationships so that the engineer manager can
- Recognize the planning barriers - use of aids to planning assess the likely impact and plan responses if required.
 PLANNING BARRIERS 2. RECRUITMENT
1. Manager’s inability to plan - Recruitment refers to attracting qualified persons to apply for vacant
2. Improper planning process positions in the company so that those who are best suited to serve the
3. Lack of commitment to the planning process company may be selected.
4. Improper information  Source of Applicants
5. Focusing on the present at the expense of the future - When management wants to fill up certain vacancies the following
6. Too much reliance on the planning department sources may be tapped:
7. Concentrating on only the controllable variables  The organization’s current employees
 AMONG THE AIDS TO PLANNING THAT MAY BE USED ARE  Newspaper advertising.
1. Gather as much information as possible  Schools
2. Develop multiple sources of information  Referrals from employees.
3. Involve others in the planning process.  Recruitment firms
CHAPTER 5: STAFFING THE ENGINEERING ORGANIZATION  Competitors
 WHAT STAFFING IS 3. SELECTIONS
- Staffing is undertaken to meets people with jobs so that the realization - selecting the most likely candidates from an available pool, requiring the
of the organization’s objectives will be facilitated preparation of a list to ensure an adequate pool of candidates. The purpose
 THE STAFFING PROCEDURE of selection in to evaluate each candidate and to pick the most suited for
1. HUMAN RESOURCE PLANNING the position available. Selection procedures may be simple or complex
a) Forecasting- assessment of future human resource needs in relation to the depending on the costs of a wrong decision.
current capabilities of the organization.  Ways of Determining the Qualifications of a Job Candidate
b) Programming - translating the forecasted human resource needs to personnel  Application blanks. - provides essential information about an individual,
objectives and goals. such as age, marital status, address, education, experiences, and special
c) Evaluation and control - monitoring human resource action plans and interest, which the evaluator uses to evaluate the applicant.
evaluating their success.  References - Statements from previous employers, co-workers, teachers,
- Methods of Forecasting. and club officers can provide crucial information about the applicant's
a) Time series methods - use historical data to develop forecasts of the future. character.
b) Explanatory, or causal models - attempts to identify the major variables that  Interviews - asking a series of relevant questions to the job candidate
are related to or have caused particular past conditions and then use current  Testing - evaluation of the future behavior or performance of an individual.
measures of these variables to predict future conditions.  Types of Tests
- The three major types of explanatory models are as follows: a) Psychological - an objective, standard measure of a sample behavior”.
 regression models  aptitude test - measure a person’s capacity or potential ability to learn.
 econometric models - a system of regression equations estimated from past  Performance test – measure person’s current knowledge of a subject
time-series data and used to show the effect of various independent variables  Personality test- measure personality traits as dominants, sociability and
on various dependent variables. conformity
 Interest test - measure a person’s interest in various fields of work
b) Physical examination - type of test given to access the physical health of an c) Sensitivity training - under this method, awareness and sensitivity to
applicant. behavioral patterns of oneself and others are developed.
4. INDUCTION AND ORIENTATION d) Transactional analysis - to help individuals not only understand themselves
- In induction, new employees learn company duties, responsibilities, and others but also improve their interpersonal communication skills.
benefits, personnel and health forms, and organization structure, filling out  Methods in acquiring knowledge about the actual job.
forms and issuing passes. a) On-the-job experience - offers trainees valuable opportunities to learn
- Orientation introduces new employees to the working environment, various skills while actively performing a job.
discussing rules, equipment, procedures, training plans, and performance b) Coaching - The senior manager's assistance to a lower-level manager
expectations. Socialization involves pairing with experienced employees involves teaching skills, providing direction, advice, and criticism, requiring
and one-on-one discussions with the manager. their own skills and education for effectiveness.
5. TRAINING AND DEVELOPMENT c) Understudy – A manager serves as an assistant to a higher-level manager,
- learning that is provided in under to improve performance on the present participating in planning and managerial functions until the manager is
job. ready to assume the position.
 Training Program for Nonmanagers  To enhance trainee knowledge of the organization:
- Increase in skill and knowledge to perform a particular job a) Position rotation -the manager is given assignments in a variety of
a) On-the-job training - The trainer is placed in a real work situation under departments. The purpose is to expose him to different functions of the
their supervisor's guidance, which strongly motivates the trainee to learn. organization.
b) Vestibule school - The trainee is placed in a similar workplace environment b) Multiple management- The method involves creating a junior board of
with machines, materials, and time constraints, with full-time training directors to prepare junior executives for higher management positions,
providing adequate attention. encouraging a broad business outlook rather than focusing on their
c) Apprenticeship program - The trainee is provided with a combination of specialized areas.
on-the-job training and classroom instruction in specific subjects. 6. PERFORMANCE APPRAISAL
d) Special course - provide more emphasis on education rather than training. - measurement of employee performance. The purposes for performance
 Training Programs for Managers appraisal:
- decision-making skills, interpersonal skills, job knowledge, and a) To influence, in a positive manner, employee performance and
organizational knowledge development,
a) In-basket - trainee is given a set of notes, messages, and reports related to b) To determine merit pay increase
a company situation, and is expected to handle it within 1 or 2 hours. c) To plan for future performance goals,
b) Management games - training method involves trainees undergoing a d) To determine training and development needs
simulated situation and making continuous decisions about it. e) To assess the promotional potential of employees
c) Case studies - focuses on real-world organizational situations, enhances  Ways of Appraising Performance
communication skills, offers mystery-solving rewards, provides illustration a) Rating scale method - rates an individual based on their level of possession
quality, and connects theory with practice. of a specific trait or characteristic, represented by a line or scale.
 The interpersonal competence of the manager: b) Essay method - evaluator composes statements that best describe the
a) Role-playing - Trainees are assigned roles in a case incident, provided with person evaluated.
a script or description, to enhance their skills in human relations, c) Management by objectives method - Collaboratively setting goals for the
supervision, and leadership. organization, subunits, and individual members, and evaluating their
b) Behavior modeling - aims to teach trainees by demonstrating effective performance based on their achievement of these goals.
problem-solving behavior of model persons, requiring them to adapt and d) Assessment center method - one is evaluated by persons other than the
use the model's behavior in future situations. immediate superior. This method is used for evaluating managers
e) Checklist method - the evaluator checks statements on a list that are deemed d) Emotive function - when feelings are repressed in the organization,
to characterize an employee’s behavior or performance. employees are affected by anxiety, which, in turn, affects performance.
f) Work standards method - standards are set for the realistic worker output and  THE COMMUNICATION PROCESS
later on used in evaluating the performance of non- managerial employees. 1. Develop an Idea- Effective communication involves developing ideas that
g) Ranking method - each evaluator arranges employees in rank order from the are useful or valuable to convey.
best to the poorest. 2. Encode - The next step involves encoding the idea into appropriate symbols
h) Critical- incident method - evaluator records critical incidents indicating an for transmission, ensuring the method is determined beforehand to meet
employee's performance, indicating unusual success or failure in certain job specific requirements.
areas due to their behavior. 3. Transmit - The massage is transmitted through various communication
7. EMPLOYMENT DECISIONS channels, ensuring effective and retaining the receiver's attention, requiring
a) Monetary rewards - given to employees whose performance is at par or above a free-flowing channel free of barriers or noise.
standard requirements. 4. Receive - The next step involves the receiver receiving the message,
b) Promotion - a movement by person into a position of higher pay and greater ensuring they are ready to receive it, either by a machine or a person.
responsibilities and which is given as a reward for competence and ambition. 5. Decode - translating the message from the sender into a form that will have
c) Transfer - the transfer of employees to different positions within an meaning to the recipient.
organization, aimed at providing growth opportunities or eliminating 6. Accept – the receiver to accept or reject the message.
underperforming employees.  The factors that will affect the acceptances or rejection of a message:
d) Demotion – a temporary move from a lower-paying position to a higher one,  The accuracy of the message
often used as a punishment or temporary measure to retain employees.  Whether or not the sender has the authority to send the message and/or
8. SEPARATIONS require action
- refers to the voluntary or involuntary termination of an employee, with  The behavioral implications for the receiver.
management determining the reason and corrective action needed if a 7. Use - The receiver uses the information based on its relevance to their
defect is identified. activity, whether it requires action or discards it immediately, depending
- Involuntary separation or termination is a management decision made on their perception of the message.
after poor performance or violation of company rules, often after 8. Provide Feedback - receiver to provide feedback to the sender.
unsuccessful training efforts.  FORMS OF COMMUNICATION
CHAPTER 6: COMMUNICATING 1. VERBAL – are those transmitted through hearing or sight.
- Morris Philip Wolf and Shirley Kuiper “a process of sharing information  Oral communication - involves hearing the sender's words, but may also
through symbols, including words and message. involve body movements, facial expressions, gestures, eye contact, and
- Communication, whether face-to-face or electronic, helps reduce sensations like feeling, smelling, tasting, and touching.
internal pressure and emotions, affecting performance and employee  Written communication - is often preferred over oral communication due
satisfaction, and can be conducted between different levels within an to time and cost constraints, but it has limitations and some methods are
organization. developed to address these issues.
 FUNCTIONS OF COMMUNICATION 2. Nonverbal Communication - Body language, including gestures, posture,
a) Information function - Information provided through communication may be facial expressions, and mannerisms, conveys messages through various
used for decision-making at various work levels in the organization. elements, while nonverbal cues help communicators understand the
b) Motivation function - Communication motivate employees to commit intended message.
themselves to the organization’s objectives  THE BARRIERS TO COMMUNICATION
c) Control function - Effective control is facilitated when reports, policies, and  Personal barriers – are hindrances to effective communication arising from
plans are communicated effectively a communicators characteristics as a person, such as emotions, values,
 poor listening habits, sex, age, race, socioeconomic status, religion, 2. UPWARD COMMUNICATION
education, etc. - Upward communication involves sending messages from lower-level
 Physical barriers –interfere with effective communication in the employees to higher-level ones, containing information on work progress,
environment, and overloading a communication channel can prevent problems, suggestions for improvement, and personal feelings about work
important information from reaching the intended user. Another physical and non-work activities.
barrier to communication is wrong timing.  Formal Grievance Procedures - Grievances are a crucial aspect of an
 Semantic barriers – Semantic studies meaning expressed through symbols, organization's operations, allowing employees to voice their concerns
such as words, pictures, or actions. about a perceived labor agreement violation. These grievances serve as an
- A semantic barrier refers to the interference with the reception of a open communication channel for suggestions to management, and can vary
message that occurs when the message is misunderstood even when it is in size and nature depending on the company's nature.
received as transmitted.  Employee Attitude and Opinion Surveys - Employee feedback is crucial for
 OVERCOMING BARRIERS TO COMMUNICATION a company's success, but requires expertise and may not be feasible. If
- To eliminate problems due to noise, the following are recommended: large enough, it should be done with outside research assistance.
1. Use feedback to facilitate understanding and increase the potential for  Suggestion Systems. - Employee suggestions are crucial for cost-saving and
appropriate action. production enhancement, and acknowledging them can boost employee
2. Repeat messages in order to provide assurance that they are properly morale, even if most aren't feasible.
received.  Open-Door Policy - provides the management with an opportunity to act
3. Use multiple channels so that the accuracy of the information may be on difficulties before they become full-blown problems.
enhanced.  Informal Gripe Sessions - Effective management can utilize informal gripe
4. Use simplified language that is easily understandable and which eliminates sessions to address company issues, as employees feel comfortable
the possibility of people getting mixed-up meanings discussing their concerns without fear of punishment.
 TECHNIQUES FOR COMMUNICATING IN ORGANIZATIONS  Task Forces - Task forces, composed of management and non-management
1. DOWNWARD COMMUNICATION – refers to message flows from higher personnel, address specific problems, fostering integration, teamwork,
levels of authority to lower to lower levels. Purposes: creativity, and interpersonal skills through enhanced collaboration and
a) To give instructions creativity.
b) To provide information about policies and procedures  Exit Interviews - Exit interviews can help management understand the
c) To give feedback about performance reasons behind employee departures, potentially uncovering negative
d) To indoctrinate or motivate developments within the organization that management may not be aware
- Among the techniques used in downward communication are as follows: of.
 Letters are suitable for complex directives, while meetings and telephones 3. HORIZONTAL COMMUNICATION
are suitable for simple orders requiring employee morale and personal - Horizontal communication refers to messages sent to individuals or groups
interaction, even if distant. from another of the same organizational level or position.
 Manuals are valuable sources of information on company policies, - The purposes of horizontal communication are:
procedures, and organization, as they are readily available and accessible. a) To coordinate activities between departments
 Handbooks provide more specific information about the duties and b) To persuade others at the same level of organization
privileges of the individual worker. It has also the advantage of being c) To pass on information about activities or feelings
available whenever needed. - Among the techniques appropriate for horizontal communication are:
 Newsletters offer a blend of personal, social, and work-related information, memos, meetings, telephones, picnics, dinners, and other social affairs.
including articles about new hires, promotions, employee birthdays, and  MANAGEMENT INFORMATION SYSTEM
work-related questions and answers.
- This means that a way must be devised to allow the organization to absorb
information necessary for effective decision-making. In this regard,
companies of various sizes have organized systems to gather information
that will be useful to management.
- Management information system (MIS) is defined by Boone and Kurtz as
“an organized method of providing past, present, and projected
information on internal operations and external intelligence for use in
decision- making”
- The MIS currently used by corporate firms consists of “written and
electronically based systems for sending reports, memos, bulletins, and the
like.” The system allows managers of the different departments within the
firm to communicate with each other.
 The Purposes of MIS
- The MIS is established for various reasons. Wheelen and Hunger enumerate
them as follows
1. To provide a basis for the analysis of early warning signals that can originate
both externally and internally.
2. To automate routine clerical operations like pay- roll and inventory reports.
3. To assist managers in making routine decisions like scheduling orders,
assigning orders to machines, and reordering supplies.
4. To provide the information necessary for management to make strategic or
nonprogrammed decisions.