ES 27 ENGINEERING MANAGEMENT

PPT SLIDES FOR MODULE 1:

INTRODUCTION TO MANAGEMENT Developed by:

RENAN S. MAGLASANG, MBA

Faculty

Department of Industrial Engineering

University of San Carlos

Rev 00/June 2013

Sources:

Jones G. R. and J.M. George. Contemporary Management, 6th Edition, McGraw Hill/Irwin, 2008

Bartol, K. M. and D.C. Martin, Management. McGraw-Hill Companies, Inc. 1998

WHICH WORD IS

LESS LIKELY A

BUSINESS WORD?

Conditioning Activity

PROFIT

INVESTMENT

SYNTAX

MARKET

ASSETS

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INTERESTS

LIABILITIES

PERMUTATION

LOANS

INCOME

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DEPRECIATION

CAPITAL

PAYBACK PERIOD

DEMAND

ASYMPTOTES

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CARTESIAN

EFFECTIVENESS

LABOR

PRODUCTION

PRICE

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SUPPLY

STOCKOUTS

INVENTORY

DNA

BUFFER

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MACHINERIES

EARNINGS

PNEUMATICS

BALANCE SHEET

MANAGERS

EXPENSES

CAPACITANCE

COST

CUSTOMERS

LOSS

COMPANY

ORGANIZATIONS

SHAREHOLDER

PHYLUM

BOTTOMLINE

STANDARDS

MARKET

NET PROFIT

RISK

SALES

INVENTORY

MATERIAL

PRODUCT

TRUSSES

INCOME

Electrical and Electronics Engineer

Application Programmer

Avionics Engineer

Control Systems Engineer

Instrumentation and Control Engineer

Roadway Lighting Design Engineer

Television Systems Engineer

DESIGN, PLAN, RESEARCH, EVALUATE , AND

TEST

ENGINEERING CAREER

Computer Engineer

Computer Engineer

Hardware Development Engineer

Hardware Engineer

Network Test Engineer

Wireless Communications Network Engineer

DESIGN, PLAN, RESEARCH, DEVELOP AND

VERIFY

ENGINEERING CAREER

Civil Engineer

Bridge Engineer Sanitation Engineer

Civil Engineer Municipal Engineer

Construction Engineer Traffic Engineer

Environmental Engineer Structural Engineer

Highway Engineer Transportation Engineer

PLAN, RESEARCH, EVALUATE , AND MANAGE

ENGINEERING CAREER

You feel like people aren't

getting anything done, even

though you employ lots of

people, all of whom are smarter

than you and just as hard

working.

A MANAGEMENT PROBLEM

Employees burn out after

months. Team members work

increasingly less on average as

they spend more time at the

company.

A MANAGEMENT PROBLEM

Product A inventory are piling

in the stockroom for weeks while

demand for product B remain

unsatisfied for a week now.

A MANAGEMENT PROBLEM

The companys balance sheet has been indicating so much cash on

hand for two years in a row

amounting to more than 2

million when all they need for

next years operation is 60% of it.

A MANAGEMENT PROBLEM

MANAGEMENT

An art

A science, too.

is the process of achieving

organizational goals

efficiently and effectively by -engaging in management functions

-exercising management skills

-and playing management roles

MANAGEMENT

is a specialized form of management

aimed at applying engineering

principles to business practice.

ENGINEERING MANAGEMENT

Engineering professionals joining

manufacturing companies sometimes

become engineering managers by default

after a period of time.

They are required to learn how to manage

once they are on the job, though this is

usually an ineffective way to develop

managerial abilities.

ENGINEERING MANAGERS

THE EVOLUTION OF MANAGEMENT THEORIES

CONTINUOUS QUEST FOR EFFICIENCY

ARE YOU EFFICIENT OR EFFECTIVE?

SCIENTIFIC MANAGEMENT INCREASING EFFICIENCY BY STUDYING PERSON-TASK MIX

Frederick Taylor believed

that the way to create the

most efficient division of

labour could best be

determined by means of

scientific management

techniques, rather than

intuitive or informal rule-

of-thumb knowledge.

Adam Smith concluded

that increasing the level of

job specialization

increases efficiency and

leads to higher

organizational

performance

Two prominent followers of

Taylor were Frank Gilbreth

(18681924) and Lillian Gilbreth (18781972), who refined Taylors analysis of work movements and made

many contributions to time-

and-motion study.

Time and Motion Study.

The Gilbreths often filmed a

worker performing a particular

task and then separated the

task actions, frame by frame,

into their component

movements. Their goal was to

maximize the efficiency with

which each individual task

was performed so that gains

across tasks would add up to

enormous savings of time and

effort.

Henry Fords talented team of production

managers pioneered the

development of the

moving conveyor belt

Fordism. When a conveyor

belt controls the pace of

work (instead of workers

setting their own pace),

workers can be pushed to

perform at higher levels

ADMINISTRATIVE MANAGEMENT INCREASING EFFICIENCY BY STUDYING STRUCTURE OF ORGANIZATION

BEHAVIORAL MANAGEMENT INCREASING EFFICIENCY BY STUDYING HOW MANAGERS

SHOULD BEHAVE AND TREAT EMPLOYEES

Mary Parker Follet on

Empowerment and

Self-managed teams

Mary Parker Follett proposed

that, Authority should go with knowledge ... whether it is up

the line or down. In other words, if workers have the

relevant knowledge, then

workers, rather than

managers, should be in control

of the work process itself, and

managers should behave as

coaches and facilitatorsnot as monitors and supervisors.

MANAGEMENT SCIENCE A CONTEMPORARY EXTENSION OF SCIENTIFIC MANAGEMENT

ORGANIZATIONAL ENVIRONMENT THEORY

-set of forces and conditions

that operate beyond an

organizations boundaries but affect a managers ability to acquire and utilize resources

ORGANIZATIONAL ENVIRONMENT THEORY

ORGANIZATIONAL ENVIRONMENT THEORY

claims that there is no best way to organize a

corporation, to lead a company, or to make decisions

because the optimal organization, leadership or

decision making style depends upon various internal

and external constraints.

LIMITATION OF THE EARLY PRACTICES

presumed that managers are

overseeing manual labor tasks

dehumanize workers

mainly on remuneration issues

heavily oriented toward efficiency at

the expense of attention to the

manager-as-leader

CONTEMPORARY PRINCIPLES

OF MANAGEMENT

Social Networking

Learning Organizations

Virtual Organizations

WHAT ARE THE BASIC MANAGEMENT FUNCTIONS?

Study Question:

The P-O-L-C

FRAMEWORK

WHAT IS PLANNING AS A MANAGEMENT FUNCTION?

is a primary function on which all others depend

Study Question:

is the process of setting goals and deciding how to best accomplish them

goals desired outcomes

plan

a statement of action steps

to be taken to accomplish

the objectives

HOW DO MANAGERS PLAN? Study Question:

Who are we?

-Core Values /Ethics

-Principles

-Beliefs

Why are we here?

What do we want to contribute?

How can we change our communicty/industry/world

What do we want to accomplish?

When do we want to accomplish it?

How do we get there?

Projects

Short-term goals

Staffing

operations management

HOW DO MANAGERS PLAN? Study Question:

STRATEGIC PLANNING FLOWCHART

Sun impress Ltd is a

new company created in

October 2009 for the

purpose of helping to

reduce carbon emissions

by identifying best

practice and facilitating

knowledge transfer,

specifically in the

building and real estate

sectors.

EXAMPLES

PLANNING IN SERVICE BUSINESS

PLANNING IN MANUFACTURING BUSINESS

EXAMPLES

PLANNING IN WAREHOUSING AND DISTRIBUTION BUSINESS

EXAMPLES

PLANNING IN ICT BUSINESS EXAMPLES

WHAT IS THE ROLE OF MISSION AND VISION IN PLANNING?

Vision:

A picture of the "preferred

future;" a statement that

describes how the future

will look if the

organization achieves its

ultimate aims.

Mission:

A statement of the

overall purpose of an

organization. It describes

what you do, for whom

you do it and the benefit

WHY WE EXIST

WHAT WE WANT TO BE

Nourishing and Nurturing

Families World Wide

By 2020, San Miguel Purefoods

Company, Inc. will be a P520

billion company with an income of

P42 billion

We will delight our Customers with products and

services of uncompromising quality, great taste and

value, and are easily within their reach.

We will create value and provide fair returns on our

Shareholders investments.

We will work hand-in-hand with our Suppliers and

other Business Partners, helping them grow with us

and assuring them of reasonable returns.

We will develop and motivate our Employees to

become best-in-class through cognitive and affective

programs, competitive compensation and benefits,

and diverse career growth opportunities.

We will help improve the quality of life in

Communities where we operate.

Collectively, we will give and do what is right and

become proponents of good stewardship.

Study Question:

WHAT IS ORGANIZING AS A MANAGEMENT FUNCTION?

The process of

arranging people

and other resources

to work together to

accomplish a goal.

the organizational

structure and design

is the heart of this function

Study Question: OR

GA

NIZ

ING

OR

GA

NIZ

ING

ORGANIZATIONAL STRUCTURE

It is the formal framework in which

the organization defines how tasks

are divided, resources are deployed,

and departments

are coordinated.

A process of developing or

changing an organization's

structure.

ORGANIZATIONAL DESIGN

HOW ARE ORGANIZATIONS ORGANIZED? Study Question:

OR

GA

NIZ

ING

6 KEY ELEMENTS OF ORGANIZATIONAL DESIGN

Work

specialization

Departmentalization

Chain of

Command

Span of

Control

Centralization and

Decentralization Formalization

OR

GA

NIZ

ING

RELATIONSHIP TO

LEADING FUNCTION

OR

GA

NIZ

ING

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?

Study Question:

FUNCTIONAL STRUCTURE ADVANTAGES:

Economies of scale.

Task assignments consistent with expertise and training.

High-quality technical problem solving

In-depth training and skill development.

Clear career paths within functions.

OR

GA

NIZ

ING

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?

Study Question:

DISADVANTAGES: Difficulties in pinpointing responsibilities. Functional chimneys problem. Sense of cooperation and common purpose break down. Narrow view of performance objectives. Excessive upward referral of decisions.

FUNCTIONAL STRUCTURE

OR

GA

NIZ

ING

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?

Study Question:

DIVISIONAL

STRUCTURE

ADVANTAGES:

More flexibility in responding to environmental changes. Improved coordination. Clear points of responsibility. Expertise focused on specific customers, products, and regions. Greater ease in restructuring.

OR

GA

NIZ

ING

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE? Study Question:

DISADVANTAGES:

Duplication of resources and efforts

across divisions.

Competition and poor coordination across

divisions.

Emphasis on divisional goals at expense of

organizational goals.

DIVISIONAL

STRUCTURE

OR

GA

NIZ

ING

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE? Study Question:

MATRIX STRUCTURE

ADVANTAGES:

Better cooperation across

functions.

Improved decision making.

Increased flexibility in

restructuring.

Better customer service.

Better performance

accountability.

Improved strategic

management.

OR

GA

NIZ

ING

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE? Study Question:

MATRIX STRUCTURE DISADVANTAGES:

Two-boss system is susceptible to power

struggles.

Two-boss system can create task confusion and conflict

in work priorities.

Team meetings are time consuming.

Team may develop groupitis.

Increased costs due to adding team leers to

structure.

OR

GA

NIZ

ING

WHAT ARE THE NEW DEVELOPMENTS IN ORGANIZATION STRUCTURE? Study Question:

Horizontal structures: Focus the organization around processes, not functions.

Put people in charge of core processes.

Decrease hierarchy and increase the use of teams.

Empower people to make decisions critical to

performance.

Utilize information technology.

Emphasize multi-skilling and multiple competencies.

Teach people how to work in partnership with others.

Build a culture of openness, collaboration, and

performance commitment.

OR

GA

NIZ

ING

WHAT ARE THE NEW DEVELOPMENTS IN ORGANIZATION STRUCTURE? Study Question:

Team structures

Extensively use permanent and temporary

teams to solve problems, complete special

projects, and accomplish day-to-day tasks.

Often use cross-functional teams.

LEADING is influencing and motivating people to

work effectively and willingly towards company goals.

guiding, inspiring, overseeing, and instructing

Gates passion and empowerment

Kelleher leadership is the job of

every employee

High EQ are: Self-awareness; self-regulation; motivation; empathy; and social skills

THE HERSEY-

BLANCHARD

SITUATIONAL

LEADERSHIP

The theory states

that instead of using

just one style,

successful leaders

should change their

leadership styles

based on the

maturity of the

people they're

leading and the

details of the task.

CONTROLLING Controlling is a process of checking actual

performance against the standards or plans.

Control activities and techniques Authorization

Review and approval

Verification

Reconciliation

Physical security of assets

Performance planning and evaluation

Quality management

Without controlling functions, planning is useless.

ORGANIZATIONAL HIERARCHY AND MANAGEMENT FUNCTIONS

RELATIVE AMOUNT OF TIME THAT MANAGERS

SPENT ON FOUR MANAGEMENT FUNCTIONS

MANAGEMENT SKILLS

Technical

Human

Conceptual

Are you proficient in your own field?

Can you get things done through others?

Can you visualize the organization as a

whole and its interrelationships among

parts?

Decision

Making

Can you analyze information and reach

good decisions?

Relative Importance of types of skills

to levels of management

Managerial Roles by Henry Mintzberg

A role is an

organized set of

behaviors

associated with a

particular office

or position

Positions usually

entail multiple

roles.

Henry Mintzbergs 10 Managerial Roles

STUDENT ANSWERS OF

SOME ESSAY QESTIONS

FROM PREVIOUS EXAMS

A:

PRODUCT INNOVATION- STRATEGIC (5 POINTS)

This is a strategic plan since it may require a

couple of years from conceptualization up to

introduction of the improved product to the desired

market. This project would require extensive top

level participation in planning the major tasks to

be allocated to the middle management and then

distribute sub-tasks to the lower level

management in the fulfillment of the plan.

Q:

CHOOSE ONE PLAN FROM THE LIST. CLASSIFY AND

EXPLAIN IT AS STRATEGIC, TACTICAL, OR OPERATIONAL .

A:

KNOWING THE TARGET OUTPUT OF THE

WEEK. OPERATIONAL (5 POINTS)

This is an operational plan because it can be

achieved on a short period of time and this plan

could achieve more bigger plans if done a lot of

times with short time intervals.

Q:

CHOOSE ONE PLAN FROM THE LIST. CLASSIFY AND

EXPLAIN IT AS STRATEGIC, TACTICAL, OR OPERATIONAL .

Q:

HOW DOES BUREAUCRATIC/ADMINISTRATIVE MANAGEMENT

HELPED COMPANIES NOWADAYS? (5 POINTS)

A:

Bureaucratic/administrative management helped companies nowadays because in this type of management authority is key. Authority enables the managers to give orders to their subordinates in order for them to do their job efficiently and effectively in order to achieve the organizational goals. When authority is present within the company in the context where they are specified, they are hierarchical in form, the company works well together with no confusion, order is attained, rules and SOPs are established and goals are achieved in the long run.

Q:

HOW DOES BUREAUCRATIC/ADMINISTRATIVE MANAGEMENT

HELPED COMPANIES NOWADAYS? (5 POINTS)

A:

Bureaucratic management has simplified the

landscape of company management. In a very

large company where roles and functions are not

well-defined, anarchy would occur. Not to mention,

there would be no person accountable if that

happens. Bureaucratic management makes

running an organization easier.

Q:

WHAT ARE STRATEGIC PLANS? (10 POINTS)

A: Strategic plans is on top of the planning pyramid.

This plan usually lasts greater than a year.

Examples of these are expanding market or

customers and product innovation. Usually it takes

conceptual skills of the CEO or the top level

managers to oversee where the company will be

going.

Q:

WHAT ARE STRATEGIC PLANS? (10 POINTS)

Q:

Strategic plans are those plans that are long term

goal and could cover from 1-5 years or more for it

to realize. These plans are considered visions of

the company that was formulated by the top level

individuals mostly. These are plans that most

companies are trying to realize as years go by. Like

the Microsoft, their vision is to put every home a

windows to use. Its like every house uses the

windows their tool or OS in the PC.

Q:

WHEN AND HOW DO MANAGERS BECOME

EFFECTIVE. (10 POINTS)

A:

Managers become effective by exercising the

management skills in the scope of his/her position.

By not being content of what he/she can only do

but by practicing and developing weaker skills for

improvement. A manager is effective if his subjects

are on the same page with him and unity is

present for a better team the delievers the desired

output. He has the capability to lead the workers

and behaves like a leader. Roles is being played

and carried out depending on what is needed in his

particular position.

Q:

EXPLAIN THE RELATIONSHIP OF MANAGEMENT

SKILLS TO THE LEVELS OF MANAGEMENT. (5 POINTS)

A:

All levels of the management hierarchy must possess all management skills to become effective managers. Each level, however has a greater for one of these skills. Top level managers require great conceptual skills because they are the ones who see the organization in a bigger picture. First-line level managers require great technical skills because they are at the frontlines of the technical employees who need their communication, monitoring, and consultation. All levels require human skills because all managers fulfill interpersonal relations.

Q:

WHEN AND HOW DO MANAGERS BECOME

EFFECTIVE. (10 POINTS)

A:

Managers become effective by exercising the

management skills in the scope of his/her position.

By not being content of what he/she can only do

but by practicing and developing weaker skills for

improvement. A manager is effective if his subjects

are on the same page with him and unity is

present for a better team the delievers the desired

output. He has the capability to lead the workers

and behaves like a leader. Roles is being played

and carried out depending on what is needed in his

particular position.