Engineering Management

What is Management?
• is a creative problem solving process of achieving the organization’s
objectives through planning, organizing, staffing, leading, and
controlling.
What is Engineering Management?
• is a specialized form of management that combines engineering
principles with the organization and coordination of people,
materials, machineries and money.
Functions of Engineers:
Research Consulting
Design and Development Government
Testing Teaching
Manufacturing Management
Construction
Sales
Functions of Management:
Planning
Organizing
Staffing
Directing
Controlling
Level of Management:
• Top Management (Decision Level)
consists with CEO, General Managers and Directors
responsible for overall organizational management
Establish goals, objective and policies

• Middle Management (Strategic Level)

responsible for implementation of the policies made by the top management
planning short-term strategies for the achievement of short-term objectives.

• First Line Management (Action Level)

involved in operations like works schedules, organizing teams, identifying training
needs, motivating the team, assigning functions, supervising and performance
management.
Management Skill
• skills that a manager must have or possessed before playing the
duties of a manager and various responsibilities.

1. Technical Skill – requires experience and skill in knowledge or

proficiency.
2. Human Skill – ability to successfully communicate with men,
interact with the employees and work with them.
3. Conceptual Skill – concepts to be formulated, understand complex
relationships, generate concepts and create
solutions to problems.
Management Roles
• Interpersonal - relating to relationships or communication between
people.
Figurehead
Leader
Liaison

• Informational - relating to or characterized by facts about something;

providing information.
Monitor / Gatekeeper
Disseminator
Spokesman
• Decisional - pertaining to decisions. Having the power or authority to
make decisions.
Entrepreneurial
Disturbance Handler
Resource Allocator
Negotiator

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Decision-making
• the process of identifying and choosing alternate courses of action in
a manner appropriate to the demands of the situation.

• the process of identifying and choosing alternatives based on the

values and preferences of the decision maker. Making decision
implies that there are alternatives to be considered.
Kinds of Decision
• Decisions Whether
these are the ‘yes or no’ decisions that must be made before proceeding
with the selection of an alternative. These are made by weighing the pros and
cons.
• Decision Which
are decisions that involve a choice of one or more alternatives from a set of
possibilities. The choice is made based on how well each alternative
measures up to a set of predefined criteria.
• Contingent Decisions
decisions that have been made but put on hold until some condition is met.
Decision-making Strategies
• Optimizing
strategy of choosing the best possible solution to the problem, discovering as many
alternatives as possible and choosing the very best.
Satisficing
the first satisfactory alternative is chosen rather than the best alternative.
coined by combining ‘satisfactory’ and ‘sufficient’.
Maximax
‘maximize the maximums’; strategy that focus on evaluating and then choosing the
alternatives based on their maximum possible payoff.
Maximin
‘ maximize the minimums’; the worst possible outcomes of each decision is
considered and the minimum is chosen.
Decision-Making Process
1) Diagnose the Problem
2) Analyze the Environment
3) Articulate Problem or Opportunity
4) Develop a Viable Alternatives
5) Evaluate Alternatives
6) Make a Decision
7) Implement Decision
8) Evaluate and Adapt Decision results.
Under Step 8
o Feedback
refers to a process that requires checking at each stage of the process to
ensure that the alternatives generated, the criteria used in the assessment
and the solution chosen for implementation are in line with the objectives
and objectives originally set.

o Control
o refers to steps taken to ensure that the tasks carried out are in line with the
intended objectives or goals set.
Approaches in Solving Problems
1) Qualitative Evaluation – refers to assessing alternatives by intuition
and subjective judgement.
❑ Tend to be used when (Stevenson):
a) The problem is fairly simple
b) The problem is familiar
c) The cost involved is not great
d) Immediate decision are needed

2) Quantitative Evaluation – refers to alternatives which use any

technique classified and analytical in a group.
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