Managing Better than the

Best

A module in
Engineering Management

Engr. Ernest Paul Y. Sison Instructor

Introduction

This module is intended for the students to understand that being in the field of engineering doesn’t always
mean that they only master their majors. They should also know how to interact with people working with
them, how to manage and to be managed. In this module, the students will learn the history of managers with
their techniques, challenges and remedies. Also, they will have a chance to start an organization which is a
practice in building their own company and starting to manage a group of people. The purpose of this subject
is to bridge the gap of management and engineering that is why this subject was taught by an engineer that is
also in the field of management.

Objectives:
At the end of this module, you should be able to:
1. Explain the basic concepts of organization and management.
2. Understand the management process.
3. Know the management principles as applied on industrial operations.
4. Understand the different Pinoy Management.

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 Table of Contents
Page No.
Title Page 1
Introduction 2
Table of Contents 3
I. Introduction 5
A. Concept of Organization Management
B. Management Functions, Roles and Skills 9
C. Current Trends and Issues 12
D. Historical Foundations of Management 13
1. Classical Approaches 14
2. Human Resources Approaches 16
3. Quantitative Approaches 18
4. Contingency Approaches 18
5. System Approach 18
6. Learning Organization 18

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 7. Quality Management Approach 19
II. The Management Process 20
A. Planning – to set direction 20
1. Fundamentals of Planning 20
2. Approaches to planning 22
3. Techniques for assessing the environment 23
4. Forecasting Methods 23
5. Techniques for allocating resources 28
6. Scheduling Methods – Gantt Chart / PERT-CPM 28
7. Criticisms to planning 30
B. Organizing – to create structure 31
1. Fundamentals of Organizing 31
2. The Concept of Delegation and Empowerment 35
3. Organizational Designs 35
4. Organizational Design Challenges 37
5. Organizing trends in the modern workplace 37

C. Influencing – to inspire effort 38

1. Fundamentals of Influencing 38
2. Leadership 39
3. Contemporary views on Leadership 40
4. Leadership issues in the 21st century 41
5. Motivation 42
6. Groups, Teams and Corporate Culture 47
7. Communication 49
D. Controlling – to ensure results 54
1. Principles of Controlling 54
2. Organizational Control System 55
3. Potential barriers to successful controlling 60
4. Making control successful 61
III. Some Practice of Management 62

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 A. Human Resource Management Process 62
1. Defining Human Resource Management 62
2. Human Resource Management Process 62
B. Production/Operations Management 67
1. Defining Production and Production System 67
2. Capacity Planning 68
3. Evaluating Capacity Alternatives 69
4. Determinants of factors of production requirements 71
5. Scheduling and loading 72
IV. Pinoy Management 73
A. Pinoy Management Styles 73
B. Weapons for Managers 76
C. Pinoy Management Approaches 79

CHAPTER I - INTRODUCTION

It’s Now or Never

When Engr. Romeo Estabillo finished his Civil Engineering course at Mapua Institute of Technology, he
took the board examination and passed it in 1981. Wanting to start independently, he went back to his
hometown (Santiago City.) to organize his own construction firm. In his first few years of operation, he
accepted contracts for the construction of residential houses. As he gained experiences, his clients grew in
number, and even the most prominent persons in Province of lsabela availed of his services.
At the start, he hired two assistants to help him in his daily routine as a contractor. One of the two
assistants, Mr. Silvino Santiago, was a third year civil engineering student who had stopped schooling due to
financial difficulties. His task was as draftsman. His duty was to produce all documents relating to physical
requirements of the various contracts entered into by boss. Among the documents are the building plan,
specifications, bill of materials, building permit, etc. His additional duty was to assist Engineer Estabillo in
supervising the foremen and workers at the various construction sites.
The second assistant, Mr. Romulo Mamaril, was assigned to coordinate purchasing, bookkeeping, and
other related administrative activities. At the third year of operations, Engr. Estabillo was already directing
operations in his newly constructed office inside his residential compound. By this time, two more female
employees were hired to assist in the various tasks performed in the office.

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 By 1994, Engr. Estabillo reviewed his company’s payroll. It indicated that he has six fulltime civil
engineers, two draftsmen, ten administrative personnel, one messenger, and one security guard. The foremen
and laborers working at the various projects were contractual
By June, 1996, Engr. Estabillo felt that business was continuously growing, so he will have to secure the
services of four additional civil engineers on a full- time basis. As he was directly supervising all operations,
he now feels that he may not be able to perform his functions effectively if he will push through with the plan.
He wants to make a decision, but he is apprehensive. He thinks operations are now more complex. With this
thought, he pondered on how he will go about solving the problem.

IA. The concept of organization management

Organization – Collection of people working together to achieve a
common purpose. Based on this definition, an organization has the
following characteristics: Distinct Deliberate
 Distinct purpose Purpose Structure
-Goal or set of goals that it hopes to accomplish
-Goal: to produce goods and/or render service
 People
People
-Group of individuals working together with the
same goal
 Structure
-Policies, guidelines, regulations etc. that defines
member’s work relationships.

Traditional Organization vs. Contemporary Organization

Traditional Organization Contemporary Organization

 Stable  Dynamic
 Inflexible  Flexible
 Job-focused  Skills-focused
 Work is defined by job positions  Work is defined in terms of tasks to be
 Individual oriented done Team oriented
 Permanent jobs  Temporary jobs
 Command oriented  Involvement oriented
 Managers always make decisions  Employees participate in decision
 Rule oriented  making
 Relatively homogeneous workforce Customer oriented
 Workdays defined as 9 to 5  Diverse workforce
 Hierarchical relationships  Workdays have no time boundaries
 Work at organizational facility during  Lateral and networked relationships
specific hours 
 Work anywhere, anytime

Management:
-Process of reaching organizational goals by working with and through people and other
organizational resources. Hence, it has the following three main characteristics:
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 1. It is a process or series of continuing and related activities.
2. It involves and concentrates on reaching organizational goals
3. It reaches these goals by working with and through people and other organizational
resources.

As managers use their resources, they must strive to be both effective and efficient.
Managerial Effectiveness refers to management use of organizational resources in
meeting organizational goals. It is often described as “doing the right things” – that is doing
those work activities that will help organization reach its goals.
Managerial Efficiency is the degree to which organizational resources contribute to
productivity. It refers to getting the most output from the least amount of inputs.

Efficiency and Effectiveness in Management

Effectiveness vs Efficiency
Efficient (most resources Not reaching goals and not Reaching goals and not
contribute to production) wasting resources wasting resources
RESOURCE USE

Inefficient
(few resources contribute to Not reaching goals and Reaching goals and
production) wasting resources wasting resources

Ineffective Effective
(little progress toward (substantial progress
organizational goals) toward organizational
goals)
GOAL ATTAINMENT

The Universality of Management

 Management is universally needed in all organizations. Organizations that are well managed develop
a loyal customer base, grow and prosper.
 By studying management, one will be able to recognize poor management and work to get it
corrected.
 In addition, one will be able to recognize good management and encourage it, whether it is an
organization with which one is simply interacting or whether it is an organization in which one is
employed.

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Managers
- Someone who coordinates and oversees the work of other people so that organizational goals can be
accomplished. Serving in positions with a wide variety of titles, they mobilize people and resources
to accomplish the work of organizations and their subunits.
- A manager’s job is not about personal achievement – it’s about helping others do their work
Types of Manager in a traditionally structured organization

President Top
Managers
CEO, COO Divisionl/ Regional
VP’s Head/Plant
Middle Manager
Managers
Supervisor
Team Leader
First-Line Managers Worker
Line Manager
Operators
Laborer
Non-managerial Employees

Upside-down view of organization

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 Client/Customer is at the top of
the organization which signify
that the company values them
first and foremost

What do Managers do?

 Describing what managers do isn’t easy or simple. Just as no two organizations are alike, no two
managers’ jobs are alike. Despite this fact, management researchers have, after many years of study,
developed three specific categorization schemes to describe what manager do: functions, roles and
skills

IB. Management Functions, Roles and Skills

Management Functions
Planning – defining goals, establishing strategy and developing plans to integrate and coordinate
activities.
Organizing – determining what needs to be done, how it will be done and who is to do it.
Influencing – motivating, leading and any other actions involved in dealing with people.
Controlling – monitoring activities to ensure that they are accomplished as planned

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Management Roles
 Refers to specific categories of managerial behavior. (Think of the different roles you play – student,
employee, student group member, sibling and so forth – and the different behaviors you’ve expected
to play in these roles).

Mintzberg’s Managerial Roles:

 Interpersonal roles – involve people (subordinates and persons outside the organization) and other
duties that are ceremonial and symbolic in nature

 Informational roles – involve collecting, receiving and disseminating information

 Decisional roles – entail making decisions or choices; involve using information to make decisions to
solve problems or address opportunities

Mintzberg’s Managerial Roles

Role Description Examples of Identifiable Activities
Interpersonal

Figurehead Symbolic head; obliged to perform a number of Greeting visitors; signing legal documents
routine duties of a legal or social nature.

Leader Responsible for the motivation of subordinates; Performing virtually all activities that involve
staffing, training, and associated duties. subordinates

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Liaison Maintains self-develop network of outside Acknowledging mail; doing external board work;
contacts and informers who provide favors and performing other activities that involve outsiders
information.

Negotiator Responsible for representing the Participating in union contract negotiations

organization at major negotiations
Informational

Monitor Seeks and receives wide variety of internal and Reading periodicals and reports; maintaining personal
external information to develop thorough contacts
understanding of organization and environment.

Disseminator Transmit information received from outsiders or Holding informational meetings; making phone calls to
from subordinates to members of the relay information
organization.
Spokesperson Transmits information to outsiders on Holding board meeting; giving information to the media
organization’s plans, policies, actions, results,
etc.
Decisional

Entrepreneur Searches organization and its environment for Organizing strategy and review sessions to develop new
opportunities and initiates “improvement programs
projects” to bring about changes.

Disturbance Handler Responsible for corrective action when Organizing strategy and review sessions that involve
organization faces important, unexpected disturbances and crises
disturbances.
Resource Allocator Responsible for the allocation of organizational Scheduling; requesting authorization; performing any
resources of all kinds – making or approving all activity that involves budgeting and the programming
significant of subordinates’ work
organizational decisions

Management Skills
- A skill is an ability to translate knowledge into action that results in desired performance.
- The most important managerial skills are those that allow managers to help other become more
productive in their work. Robert L. Katz concluded that managers needed the following three
essential skills:

 Technical Skill – job-specific knowledge and techniques needed to proficiently perform specific
tasks; expertise that could initially be acquired through formal education and are further developed by
training and job experience. These skills tend to be more important for lower level of managers
because they typically are managing employees who are using tools and techniques to produce
organization’s products or service the organization’s customers.

 Human Skill – ability to work well with other people individually and in a group. It emerges in the
workplace as a spirit of trust, enthusiasm and genuine involvement in interpersonal relationships.
These skills are consistently important across all levels of management because managers deal
directly with people. Manager with good human skills are able to get the best out of their people.
They know how to communicate, motivate, lead and inspire enthusiasm and trust. A manager with
good human skills will have a high degree of self-awareness and a capacity to understand or
empathize with the feelings of others

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  Conceptual Skill – ability to think and formulate (conceptualize) about abstract and complex
situations; it involves the ability to break down problems into smaller parts, to see and analyze the
relations between parts and to recognize the implications of any one problem for other to solve
complex problems. Using these skills managers must see the organization as a whole, understanding
the relationships among various subunits and visualize how organization fits into broader
environment. These skills are most important at the top management level.

Thought to ponder…
 In today’s demanding and dynamic workplace, employees who want to be a valuable assets to an
organization must be willing to constantly upgrade their skills and take on extra work outside their
own specific job area. There’s no doubt that skills will continue be an important way of describing
what a manager does. .

How the Manager’s Job is changing?

- Managers have always had to deal with changes taking place inside and outside their organization.

IC. Current Trends and Issues

 Globalization
- Working with people from different cultures
- Coping with anti-capitalist backlash
- Movement of jobs to countries with low cost labor
 Ethics and Social Responsibility
- concerns for the environment, ethical and social responsibility issues, behavior of employees
and the changing needs of an increasingly global economy  Workforce Diversity
- A worker force that is heterogeneous in terms of gender, race, ethnicity, age and other
characteristics that reflect differences
 Employment Values and Human Rights

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 - Employees’ right to privacy, due process protection against job discrimination and freedom
from sexual harassment
 Information and Technological Change
- Impact of emerging information and computer technology and the age of “knowledge worker”
 Careers and Career Portfolios
- “portfolio of skills” that must be up-to-date and valuable to potential employers

The Reality of Work

 Another reason for studying management is the reality that for most of us, once we graduate from
college and begin our career, one will either manage or be managed. For those who plan to be
managers, an understanding of the management process forms the foundations upon which to build
your management skills. On the other hand, for those of us who don’t see himself managing, one is
likely to have to work with managers. Also, assuming that we will have to work for a living and
recognizing that we are very likely to work in an organization, one probably have some managerial
responsibilities even if one is not a manager.

Reward and Challenges of Being a Manager

Rewards Challenges

 Create a work environment in which  Do hard work

organizational members can work to the best of  May have duties that are more clerical than
their ability managerial
 Have opportunities to think creatively and use  Have to deal with a variety of personalities
imagination  Often have to make do with limited resources
 Help others find meaning and fulfillment in Motivate workers in chaotic and uncertain
work  situations
 Support, coach and nurture others Successfully blend knowledge,
 Work with a variety of people  skills, ambitions and experiences of a
 Receive recognition and status in organization diverse work group
and community Success depends on others’ work
Play a role in influencing organizational performance.
 
outcomes
 Receive appropriate compensation in form of
salaries, bonuses and stock options Good
 managers are need by organizations
 Managers often may have to deal with a variety of personalities and often have to make to with
limited resources. It can be a challenge to motivate workers in the face of uncertainty and chaos.
Managers may find it difficult to effectively blend the knowledge, skills, ambitions and experiences of
a diverse work group.
 Finally, as a manager, you’re not in full control of your destiny. Your success typically is dependent
upon, others’ work performance.

Becoming a Manager:
 Keep up with current business news.
 Read books about good and bad examples of managing.
 Remember that one of the things good managers do is to discover what is unique about each person
and capitalize on it.
 Keep in mind the simple advice that “management is about people” from Peter Drucker.

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  Work on your “soft” skills – work ethics, communications, information gathering and people skills.
These are what employers cite as the most important factors for getting jobs.
 Observe managers and how they handle people and situations.
 Talk to actual managers about their experiences – good and bad.
 Get experience in managing by taking on leadership roles in student organizations  Start thinking
about whether you’d enjoy being a manager.

ID. HISTORICAL BACKGROUND OF MANAGEMENT

“Learning the past, makes it easier for us to understand the present and visualize the future”

Learning Objectives
 To understand how management theories develop
 To understand the impact of the environment to management thinking
 To gain insights into new management approach

The historical context of management thinking can be described in the following framework:
- The classical approaches
- The human resource/behavioral approaches
- The quantitative approaches
- The contingency approaches
- The system approach
- The learning organization approach
- The Quality Management approach

Early Management Thought

 Early ideas about management strategy
◦ Sun Tzu (770-476 B.C.), The Art of War
 Early ideas about leadership
◦ Nicolò Machiavelli (1469-1527), The Prince
 Early ideas about the design and organization of work
◦ Adam Smith, The Wealth of Nations
 division of labor
Sun Tzu, Art of War
“Shang Chang Ru Zhan Chang”
“The marketplace is a battlefield”

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Management Approaches and the Environment

1. The Classical Approach

The classical approach (ca 1890) to management is a management approach that emphasizes
organizational efficiency to increase organizational success. Environment in ca 1890
• Industrial revolution
• Autocratic management was the norm
• “Science" as a solution to the inefficiencies and injustices of the period • Idea of
interchangeable parts

The Classical Approach

 Scientific Management
◦ Frederick W. Taylor
◦ Frank and Lillian Gilbreth
◦ Henry Gantt
 Bureaucratic Management
◦ Max Weber
 Administrative Management
◦ Henri Fayol

Scientific Management
 Advocates the use of scientific method to define the “one best way” to do a job
 Involve a job science (job study) of how a job was perform to determine the ways to
improve it and find the best possible way to accomplish the work

Fredrick W. Taylor
 Mechanical engineer who had noticed that the cause of inefficiency in their company
(Midvale & Bethlehem Steel Company) is the used of different techniques to do the same
job. Workers did their jobs their own way without clear and uniform specifications which
leads to loose efficiency and performed below their own capacities.

Taylor’s Four Principles of Scientific Management

1. Scientifically study each part of a task and develop the best method of performing the task.

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 2. Carefully select workers and train them to perform the task by using the scientifically
developed method.
3. Cooperate fully with workers to ensure that they use the proper method.
4. Divide work and responsibility so that management is responsible for planning work methods
using scientific principles and workers are responsible for executing the work accordingly.

Frank & Lilian Gilbreth

 Introduce the concept of motion study which evaluate and analyze workers’ movement
and motion to eliminate unnecessary and/or redundant motions.

Bureaucratic Organization
 Rational and efficient form of organization founded on logic, order and legitimate
authority.
 Advocates applying rules rigidly within an administrative system to remedy the prevalent
deficiencies of the organization at that time that people were in the position of authority
not because of their job-related capabilities but because of their social standing or
privileged status in the society

Key Characteristics of Weber’s Ideal Bureaucracy

 Division(Specialization) of labor

 Formal rules and procedures

 Formal Selection

 Impersonality

 Well-defined hierarchy

 Career advancement based on merit (career orientation)

Administrative Principles

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  Advocates documenting and understanding the experiences of successful manager as basis
to describe what good management practice is.

Fayol’s 14 Principles of Administrative Management

1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to the general interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability and tenure
13. Initiative
14. Esprit de corps

2. The Human Resource (Behavioral) Approach to Management

The behavioral approach (ca 1910) to management is a management approach that
emphasizes increasing organizational success by focusing on human variables (human needs,
work groups and the role of social factors in the workplace) within the organization.

Mary Parker Follet

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  Advocates that organization should be based on a group ethic rather than individualism
which means that managers’ job was to harmonize and coordinate group efforts. Manager
and workers should view themselves as partners.

Hawthorne Effect:
The discovery that paying special attention to employees motivates them to put
greater effort into their jobs. (From the Hawthorne management studies, performed from 1924
– 1932 at Western Electric Company’s plant near Chicago)

Maslow’s Hierarchy of Needs

Self - Actualization Implies that managers who can help

his subordinates satisfy their
important need at work
will achieve productivity
Need for Self -Esteem

Need for Social Relations

Need for Security

Physiological Needs

McGregor’s Theory X and Theory Y

 Leaders and managers who hold Theory X assumptions believe that employees are
inherently lazy and lack ambition.
◦ A negative perspective on human behavior.
 Leaders and managers who hold Theory Y assumptions believe that most employees do
not dislike work and want to make useful contributions to the organization.
◦ A positive perspective on human behavior.

Argyris’s Theory of Personality and Organization

 Belief that managers who treat people positively and as a responsible adults will achieve
productivity\
 Advice to expand job responsibilities, allow more task variety and adjust supervisory
styles to allow more participation and promote better human relations.

3. The Quantitative (Management) Science Approach

The management science approach (ca 1940) is a management approach that emphasizes the
use of the scientific method and quantitative techniques to increase organizational success.
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 Environment in ca 1940
• Application of OR in solving complex problems in warfare (WWII)
• Significant technological and tactical breakthroughs
• Interest in manufacturing and selling after WWII

4. The Contingency Approach

The contingency approach (ca 70’s) to Management is a management approach that
Emphasizes that what managers do in practice depends on a given set of circumstances--a
situation.
Environment in ca1970’s”
• Emergence of new companies “Apple”
• Emergence of new products, “IBM PC”

5. The System Approach

The system approach (ca 50’s-60’s) to management is a management approach based on
general system theory--the theory that to understand fully the operation of an entity, the entity
must be viewed as a system. This requires understanding the interdependence of its parts.
Environment in ca1950’s to 60’s”
• Growing quality consciousness
• Total Quality Management

6. The Learning Organization Approach

The learning organization approach to management is the management approach based on an
organization anticipating change faster than its counterparts to have an advantage in the
market over its competitors.

Managerial Approach to Learning Organization

 Managers must create an environment conducive to learning
 Managers encourage the exchange or information among organization members
 Managers promote
◦ systematic problem solving
◦ Experimentation
◦ learning from experiences and past history
◦ learning from experience of others
◦ transferring knowledge rapidly throughout the organization

Building a Learning Organization

 System Thinking
◦ Every organization member understands his or her own job and how the jobs fit
together to provide finals products to the customer
 Shared vision
◦ All organization members have a common view of the purpose of the
organization and a sincere commitment to accomplish the purpose
 Challenging of the mental models
◦ Organization members routinely challenge the way business is done and the
thought processes people use to solve organizational problems
 Team learning

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 ◦ Organization members work together, develop solution to new problems together,
and apply the solutions together.
◦ Working as teams rather than than individuals will help the organization gather
collective force to achieve organizational goals
 Personal mastery
◦ All organization members are committed to gaining a deep and rich understanding
of their work
◦ Such an understanding will help organizations to reach important challenges that
confront them From “The Fifth Discipline” by Peter Senge, 1990

Learning Organization Approach

System thinking

Building a
Personal mastery
Learning Shared Vision
Organization
Team Learning Challenging of
Mental models
7. Quality Management Approach
Focused on consistently meeting customer requirements and enhancing their satisfaction. It is
aligned with an organization's purpose and strategic direction (ISO9001:2015). It is expressed
as the organizational goals and aspirations, policies, processes, documented information and
resources needed to implement and maintain it.

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