Merged 1 6

Engineering Management
ENGG 1032
Joanne S. Dionela, ChE
Textbook:
Roberto G. Medina
1. Introduction to
Engineering
Management
Engineering Management 3
1. What is an Engineer? What does it mean to be an Engineer?
2. Why is Engineering called a Discipline?
3. What is a Manager?
4. What is the difference between an Engineer and an Engineer Manager?

What is Engineering? 4
➢ Engineering is the application of Science and Mathematics to solve problems.
➢ The American Engineers' Council for Professional Development (ECPD, the predecessor of ABET)
has defined "engineering" as:
“The creative application of scientific principles to design or develop structures, machines,

apparatus, or manufacturing processes, or works utilizing them singly or in combination; or to
construct or operate the same with full cognizance of their design; or to forecast their behavior
under specific operating conditions; all as respects an intended function, economics of operation
and safety to life and property.”
➢ The words engine and ingenious are derived from the same Latin root, ingenerare, which means
“to create.”
➢ The term engineering is derived from the Latin ingenium, meaning "cleverness" and ingeniare,
meaning "to contrive, devise".
What is an Engineer? 5
➢ Engineers are scientists, inventors, designers, builders and great thinkers. They improve the state
of the world, amplify human capability and make people's lives safer and easier. (Engineers
Australia, https://www.engineersaustralia.org.au/For-Students-And-Educators/Engineering-
Careers/What-Is-Engineering)
➢ The word engineer (Latin ingeniator) is derived from the Latin words ingeniare ("to create,
generate, contrive, devise") and ingenium ("cleverness“ or “genius”)
➢ Engineers or “engine-ers” are not merely “Problem-Solvers”, they are “Creators”.

Functions of Engineering 6
1. Research
2. Design and Development
3. Testing
4. Manufacturing
5. Construction
6. Sales
7. Consulting
8. Government
9. Teaching
10. Management
Note:
• These are just some of the functions or fields that an Engineer can take on. This is not an
exhaustive or complete list.
Engineering Levels & Organizations 7
1. Level 1 – Minimal engineering jobs required. Ex. Retailing firms
2. Level 2 – Moderate degree or amount of engineering jobs. Ex. Transport Companies.
3. Level 3 – High degree or amount of engineering jobs or activities. Ex. Construction firms,
Engineering Design firms, Manufacturing companies, Organizations that design and develop
products.
Management Skills by Engineering Level 8
Management Skills Requirement:
1. Level 1 – Engineer could be an Individual
Contributor or Subject Matter
Expert/Specialist, or a Supervisor. This
could be a Line Management
responsibility.
2. Level 2 – Engineer could be a

Department or Division Head. This is a
Middle Management responsibility.
3. Level 3 – Engineer could be a General

Manager or President. This is a Top
Management or Executive responsibility.
Engineering Management – Activity combining “technical knowledge with the ability to organize
and coordinate worker power, materials, machinery, and money.”
- A discipline or function requiring application of Engineering technical skills, “Soft” skills (People
and organizational skills), and Business skills (Money skills).
• Supervisory level is the first level of Management. An Engineer Supervisor has the responsibility to
lead his group or team to produce an output as expected.
• The Top position an engineer manager may hope to occupy is the General Managership or
Presidency of the organization. However, the higher an Engineer goes up into Management
position, the lesser technical engineering tasks are performed and the more management tasks.
What is Management? 10
Management may be defined as the “creative problem solving-process of planning, organizing,
leading, and controlling an organization’s resources to achieve its mission and objectives.”
The Management Process:

1. Planning Planning
2. Organizing
3. Leading (Directing)
4. Controlling
Controlling Organizing
Leading
The Engineer Manager 11
Question:
1. Does a good engineer make a good manager? Yes or No? Why?
2. What makes a good Manager?
The Successful Engineer Manager 12
3 General Preconditions to become a Successful Engineer Manager, according to Kreitner:
1. Ability
2. Motivation to manage
3. Opportunity
Ability
➢ Managerial ability refers to the capacity of an engineer manager
to achieve organizational objectives effectively and efficiently.
➢ Effectiveness – description of “whether objectives are

accomplished”. (Higgins)
• Quality of Output vs Expectation (Expectation vs Reality)
➢ Efficiency – description of the amount of resources used in

obtaining effectiveness. (Higgins)
• Input vs Output
Motivation to Manage
➢ Desire or internal drive to take charge or
lead others into achieving something.
➢ If one does not have the desire or

motivation to manage other people,
one will not be an effective manager.
➢ However, just because you are not or

do not want to be a manager, does not
mean you are a lesser person.
Opportunity
➢ 2 Requirements for Opportunity to be a successful Manager:
1. Suitable managerial job
• Whether by job application or promotion.
2. Supportive climate
• Characterized by the recognition of managerial talent through financial and non-
financial rewards.
Who wants to be an Engineer Manager?

ENGG 1032
Textbook:
Roberto G. Medina
2. Decision-Making
Decision-Making? 3
1. Why did you choose your Engineering discipline?
2. What process did you follow or used to come up to your decision?
3. What do you think of your decision? Was it right or wrong?
4. What were the pros and cons for taking your Engineering discipline?
5. What could have been the consequences if you did not take your Engineering
discipline?
What is Decision-Making? 4
➢ Decision-Making is a Management responsibility and accountability.
➢ Decision-Making may be defined as “the process of identifying and choosing

alternative courses of action in a manner appropriate to the demands of the
situation.”
➢ Engineer Manager must adapt a certain procedure, system, or way of working

designed to determine the best option or course of action to solve a problem.
➢ Decision-making is the “heart of all management functions”. It is inherent in all

Management Functions: Planning, Organizing, Leading, Controlling.
Decision-Making Process 5
David H. Holt’s Rational Decision-Making Steps:
Diagnose
1. Diagnose problem problem
2. Analyze environment
Evaluate and
3. Articulate problem or opportunity adapt decision
Analyze
environment
4. Develop viable alternatives results
5. Evaluate alternatives
6. Make a choice
7. Implement decision
8. Evaluate and adapt decision results
Implement Decision-Making Articulate
decision Process problem
Develop
Make a choice
alternatives
Evaluate
alternatives
1. Diagnose Problem 6
➢ What is a Problem?
- A problem exists when there is a difference between an actual situation and a desired
situation. A deviation from the desired event.
➢ Why diagnose a problem?

- If a manager wants to make an INTELLIGENT DECISION, the first move must be to IDENTIFY
THE PROBLEM.
- If a manager fails in precisely and accurately diagnosing a problem, the problem will not be
solved.
2. Analyze Environment 7
➢ What is the “Environment”?
- It is the setting, the situation or the context to where the company or organization is in
during the existence of the problem.
➢ Why analyze the (organizational) environment?

- To IDENTIFY CONSTRAINTS which may be spelled out as either INTERNAL or EXTERNAL
limitations.
➢ Components of the Environment:

1. Internal – Activities within the organization that surround, affect or influence decision-
making, which are under the direct control of the company or top management.
Examples: Budget (finances), Employee competency, Facilities.
2. External – Variables that are outside or transacted outside of the organization and not
typically within the short-run or direct control of the company or top management.
Examples: government transactions and regulations, local communities, patents, limited
market or customers.
2. Analyze Environment 8
3. Articulate Problem or Opportunity 9
➢ Define the Problems or Opportunities for each of the INTERNAL and EXTERNAL factors that affect
or influence decision-making.
➢ Assess if the factors help you SOLVE or WORSEN the problem.
➢ Examples of tools used in articulating Problem or Opportunities:

• Pros and Cons
• Risk Analysis
• SWOT Analysis
4. Develop Viable Alternatives 10
➢ In problem-solving there are many ways to solve a problem, but the tricky part is to determine or
choose the best solutions.
➢ The most cost-effective solutions are the best solutions.
➢ How to determine Viable alternatives or solutions:

1. List down solutions.
2. Determine the viability of each solution.
3. Revise the list of solutions by striking out or eliminating non-viable solutions.
➢ What is viable?
- The capability of being successful.
5. Evaluate Alternatives 11
➢ To determine the “best solution”, the viable solutions or alternatives must be evaluated.
➢ Factors in Evaluating Viable Alternatives:

1. Value – the benefits (quantitative and qualitative) that the solutions give.
2. Cost – the cost of the solution (capital and operational costs)
• Capital Expenses (CAPEX) – initial investments needed to materialize the solution.
• Operational Expenses (OPEX) – investment needed to operate and maintain the
solution in the business lifecycle.
3. Risks – The degree of harm, danger or damage that the solution may pose to the business.
• Is the solution worth the risks?
➢ A Cost-Benefit Analysis (CBA) is a common technique or tool used to evaluate solutions in order
to determine the best solution.
• A cost-benefit analysis is a systematic process that businesses use to analyze which decisions
to make and which to forgo. The cost-benefit analyst sums the potential rewards expected
from a situation or action and then subtracts the total costs associated with taking that
action. (https://www.investopedia.com/terms/c/cost-benefitanalysis.asp)
6. Make a Choice: The Decision 12
Now that you have the relevant information you need about
the different viable solutions, it’s time to choose the solution
you will implement.
➢ Choice-making – the process of selecting among the viable

alternatives or solutions to a problem.
➢ To make the selection process easier or objective, the

alternatives can be ranked from best to worst based on
Value or Benefits, Cost, and/or Risk.
➢ Note: the best solution should be the most cost-effective

solution.
7. Implement Decision 13
➢ After a decision has been made, the chosen solution must be executed. Time to turn your ideas
in reality.
➢ Implementation - carrying out the decision so that the objectives sought will be achieved: solve
the problem. To make the implementation effective or successful, a plan must be devised.
➢ At this stage, the resources must be made available so that the decision or solution may be
properly implemented or executed.
8. Evaluate and Adapt Decision Results 14
➢ In executing the decision or solution, the expected results may or may not happen. It is
important therefore, for the manager to use Control and Feedback mechanism to ensure results
and to provide information for future decisions.
➢ Feedback – process which requires checking at each stage of the process, execution, or
implementation to assure that the alternatives generated, the criteria used in evaluation, and
the solution selected are aligned with the goals and objectives originally specified.
➢ Control – actions made to ensure that activities performed match the desired activities or goals,
that have been set.
8. Evaluate and Adapt Decision Results 15
➢ In this last stage of decision-making process, the
Engineer Manager will find out whether or not the
desired result is achieved.
➢ If the desired results is achieved, one may assume

that the decision was right or good. Otherwise,
either you repeat the entire Decision-Making
process or repeat from Process Step 4 onwards.
See Figure 2.3
Problem-Solving Approaches 16
Depending on the COMPLEXITY of the problem, Managers can use different approaches to
evaluate alternatives or solutions to solve a problem.
Approaches in Problem Solving:

1. Qualitative Evaluation
- Evaluation of alternatives using intuition and judgement
- Qualitative Evaluation are used by Managers when:
a. The problem is fairly simple.
b. The problem is familiar.
c. The costs involved are not great, or low.
d. Immediate decisions are needed (“judgement call”).
2. Quantitative Evaluation
- Evaluation of alternatives using rational and analytical techniques.
Quantitative Models 17
Examples of Quantitative Models for Decision-Making:
1. Inventory Models
2. Queuing Theory
3. Network Models
4. Forecasting
5. Regression Analysis
6. Simulation
7. Linear Programming
8. Sampling Theory
9. Statistical Decision Theory
Inventory Models
➢ A mathematical model that helps business in determining the optimum level of inventories that
should be maintained in a production process, managing frequency of ordering, deciding on
quantity of goods or raw materials to be stored, tracking flow of supply of raw materials and
goods to provide uninterrupted service to customers without any delay in delivery.
➢ Inventory also referred as stocks are basically the goods and raw materials that any business
would hold and are ready or will be ready for sale.
Common Inventory Models:
1. Economic Order Quantity (EOQ) Model – used to
calculate the number of items that should be
ordered at one time to minimize the total yearly
cost of placing orders and carting (holding) the
items in the inventory.
2. Production Order Quantity – An Economic Order

Quantity Technique applied to production orders.
3. Backorder Inventory Model – Inventory model

used for planned shortages. This model is used for
orders that are not yet available.
4. Quantity Discount Model – Inventory model used

to minimize the total cost when quantity discounts
are offered by suppliers. The purpose of Quantity
discount is to induce large orders from customers.
Queuing Theory
➢ Describes how to determine the number of
service units that will minimize both customer
waiting time and cost of service.
➢ Studies how lines form, how they function,

and why they malfunction.
➢ Examines every component of waiting in line,

including the arrival process, service process,
number of servers, number of system places,
and the number of customers—which might
be people, data packets, cars, or anything
else.
Network Models
➢ These are models where large complex tasks are broken into smaller segments that can be
managed independently.
Two Most Prominent Network Models:

1. Program Evaluation Review Technique (PERT)
- Technique which enables engineer managers to schedule, monitor, and control large and
complex projects by employing three-point estimates for each activity.
- A PERT chart is a project management tool that provides a graphical representation of a

project's timeline. The Program Evaluation Review Technique (PERT) breaks down the
individual tasks of a project for analysis.
Sample PERT Chart
PERT: https://www.youtube.com/watch?v=i160aaBX7mE
2. Critical Path Method (CPM)
- Network technique using only one-time factor per activity that enables engineer managers
to schedule, monitor, and control large and complex projects.
Sample CPM Chart
CPM: https://www.youtube.com/watch?v=rxGcV0tuxRU&list=RDLVi160aaBX7mE&index=2
PERT-CPM: https://www.youtube.com/watch?v=-TDh-5n90vk&t=2s
Forecasting
➢ The collection of past and current information to make
predictions about the future.
➢ The engineer manager use forecasting technique to

come up with decisions that will have implications or
impacts in the future.
Regression Analysis
➢ Regression analysis is a set of statistical methods used for
the estimation of relationships between a dependent
variable and one or more independent variables.
➢ It can be utilized to assess the strength of the relationship

between variables and for modeling the future
relationship between them.
Simulation
➢ A model constructed to represent reality on which conclusions about real-life problems can be
used.
➢ It is a highly sophisticated tool by means of which the decision-maker develops a mathematical

model of the system under consideration.
Linear Programming
➢ This technique used to produce an optimum solution within the bounds or limitations imposed by
constraints upon the decision.
➢ It is very useful as a decision-making tool when supply and demand limitations at plants,
warehouse, or market areas are constraints upon the system.
Sampling Theory
➢ Technique where samples of populations are statistically determined to be used for a number of
processes, such as quality control and marketing research.
Statistical Decision Theory
➢ Refers to the rational way to conceptualize, analyze, and solve problems in situations involving
limited, or partial information about the decision environment.
➢ Managers use this approach to first determine the probabilities of an outcome using available
information. They can even rely on their subjective judgment for this purpose. Next, they use this
data of probabilities to make their decisions. They often use ‘decision trees’ or pay-off matrices
for this purpose.
Bayesian Analysis
➢ Used as a tool in Statistical Decision process. The purpose of Bayesian analysis is to revise and
update the initial assessments of the event probabilities generated by the alternative solutions.
➢ When the decision-maker is able to assign probabilities to the various events, the use of
probabilistic decision rile, called Bayes criterion, becomes possible.
➢ The Bayes criterion selects the decision alternative having the maximum payoff, or the minimum
expected loss if he is working with a loss table.
Sample Decision Tree Sample Payoff Matrix

Questions?
Activity 30
1. Class Activity: Individual and Group
2. Group Assignment:
2.1 Apply the Decision-Making Process in your given Scenario.
ENGG 1032
Textbook:
Roberto G. Medina
3. Planning
Planning 3
➢ Managers who plan are afforded with the opportunity to carefully analyze
situations which directly contribute to effective decision-making.
➢ The Engineer Manager, regardless of his management level, will have to devote
some of his time to planning.
➢ The higher the management level the engineer manager is in, the more
sophisticated his planning activity becomes.
➢ A Plan, which is the output of Planning, provides a methodical way of achieving

desired results. In the implementation or execution of activities, the Plan serves
as a useful guide.
What is Planning? 4
➢ Nickels, et. Al : Planning refers to the management function that involves
anticipating future trends and determining the best strategies and tactics to
achieve organizational objectives.
➢ Aldag and Stearns: Planning is the selection and sequential ordering of tasks
required to achieve an organizational goal.
➢ Cole and Hamilton: Planning is deciding what will be done, who will do it, where,
when, and how it will be done, and the standards to which it will be done.
➢ Planning – selecting the best course of action so that the desired result may be
achieved. The desired result takes first priority and the course of action chosen is
the means to realize the goal.
Planning by Management Level 5
1. Top Management Level – Strategic Planning
2. Middle Management Level – Intermediate Planning
3. Lower or Line Management Level – Operational Planning

Strategic Planning
➢ Process of determining the major goals of the organization and the policies and strategies for
obtaining and using resources to achieve these goals.
➢ The whole company is considered, specifically its objectives and current resources.
➢ The output of Strategic Planning is the Strategic Plan which spells out the decision about the
long-range goals and the course of action to achieve these goals.
Intermediate Planning
➢ Refers to the process of determining the contributions that sub-units can make with allocated
resources.
➢ The goals of a sub-unit are determined and a plan is prepared to provide a guide to the
realization of the goals.
➢ The intermediate plan is designed to support the Strategic Plan.

Operational Planning
➢ The process of determining how specific tasks can best be accomplished on time with available
resources.
➢ This type of planning is a responsibility of lower management.
➢ It must be performed in support of the Strategic Plan and Intermediate Plan.

The Planning Process 10
The Planning Process Steps:
1. Setting organizational, divisional, or unit goals.
2. Developing strategies or tactics to reach those goals.
3. Determining resources needed, and,
4. Setting standards.
Setting organizational, divisional, or unit goals
➢ The first task of the Engineer Manager is to provide

a sense of direction.
➢ The setting of goals provide an answer to the said

concern.
➢ Goals – defined as the precise statement of results

sought, quantified in time and magnitude, where
possible.
Developing strategies or tactics to reach those goals
➢ The ways to realize the goals are called Strategies and these will be the concern of top
management. The middle and lower management will adapt their own tactics to implement
their plans.
➢ A Strategy may be defined as a course of action aimed at ensuring that the organization will
achieve its objectives.
➢ A Tactic is a short-term action taken by management to adjust to negative internal or external

influences. They are formulated in support of the organization’s strategies. The decision about
short-term goals and the courses of action are indicated in the Tactical Plan.
Determining Resources Needed
➢ The Engineer Manager will determine human and non-human resources required by such
strategies of tactics.
➢ To satisfy strategic requirements, a general statement of needed resources will suffice. The
specific requirements will be determined by the different units of the company.
Setting Standards
➢ Standards are set or defined to measure performance. These should be established right at the
planning stage. When actual performance does not match with the planned or expected
performance, corrections may be made or reinforcement given.
➢ A standard may be defined as a quantitative or qualitative measuring device designed to help

monitor the performances of people, capital goods, or processes.
Types of Plans 14
1. Functional Area Plans
Examples:
• Marketing Plan
• Production Plan
• Financial Plan
• Human Resource Management Plan
2. Plans with Time Horizon (Time-based Plans)

• Short-range plans
• Long-range plans
3. Plans according to Frequency of Use

• Standing Plans (Examples: Policies, Procedures, Rules)
• Single-use Plans (Examples: Budgets, Programs, and, Projects)
STRATEGIC PLAN 15
Parts of Strategic Plan:
1. Company or corporate Vision, Mission and Core
Values
2. Objectives or Goals
3. Strategies
Company or Corporate Mission refers to the strategic

statement that identifies why an organization exists, its
philosophy of management, and its purpose as
distinguished from other similar organizations in terms of
products, services, and markets.
VISION
MISSION
CORE VALUES
Making Planning Effective 16
Planning may be successful if the following are observed:
1. Recognize the planning barriers
2. Use of aids to planning
The Planning Barriers, according to Plunkett and Attner:

1. Manager’s inability to plan
2. Improper planning process
3. Lack of commitment
4. Improper information
5. Focusing on the present at the expense of the future.
6. Too much reliance on the planning department
7. Concentrating only on the controllable variables
Aids to Planning:
1. Gather as much information as possible.
2. Develop multiple sources of information.
3. Involve others in the planning process.
Questions?
ENGG 1032
Textbook:
Roberto G. Medina
4. Organizing
Organizing 3
➢ Organizing is undertaken to facilitate the implementation of plans.
➢ Organizing is a management function which refers to the structuring of

resources and activities to accomplish objectives in an efficient and effective
manner.
➢ The arrangement of relationship of positions within an organization is called the

structure.
The Purpose of the Structure 4
1. Defines the relationship between tasks and
authority for individuals and departments.
2. Defines formal reporting relationships, the

number of levels in the hierarchy of the
organization, and the span of control.
3. Defines the groupings of individuals into

departments and departments into
organization.
4. Defines the system to effect coordination of

effort in both vertical (authority) and
horizontal (tasks) directions.
Factors in Structuring an Organization 5
1. Division of labor
➢ Determining the scope of work and how it is combined in a job.
2. Delegation of authority
➢ The process of assigning various degrees of decision-making authority to
subordinates.
3. Departmentation
➢ The grouping of related jobs, activities, or processes into major
organizational subunits.
4. Span of Control
➢ The number of people who report directly to a given manager.
5. Coordination
➢ The linking of activities in the organization that serves to achieve a common
goal or objective.
Formal Organization 6
➢ The Formal Organization is the structure that details lines of responsibilities,
authority, and position.
➢ The formal structure is described through:

1. Organizational chart
2. Organizational manual
3. Policy manuals
Informal Groups 7
➢ Informal groups are not official part of the
organization structure but a group of people
based on their sense of belonging (e.g. friends)
➢ Engineer manager should be on the lookout for

the possible difficulties that informal groups may
do to the organization.
Types of Organizational Structures 8
1. Functional Organization
➢ A form of departmentalization in which everyone engaged in one
functional activity, such as engineering or marketing, is grouped into one
unit.
2. Product or market organization

➢ Refers to the organization of a company by divisions that brings together all
those involved with a certain type of product or customer.
3. Matrix organization
➢ Organizational structure in which each employee reports to both a
functional or division manager and to a project or group manager.
Functional Organization 9
Product/Market Organization 10
Matrix Organization 11
Types of Authority 12
3 Types of Delegated Authority:
1. Line Authority
➢ A manager’s right to tell subordinates what to do and then see that they do
it.
2. Staff Authority
➢ A staff specialist’s right to give advice to a superior.
3. Functional Authority
➢ A specialist’s right to oversee lower level personnel involved in that specialty,
regardless of where the personnel are in the organization.
Line & Staff 13
➢ Line Departments perform tasks that reflect the organization’s primary goal and
mission.
➢ Staff Departments include all those that provide specialized skills in support of
line departments include those which perform strategic planning, labor
relations, research, accounting, and personnel.
Classifications of Staff Officers:

1. Personal Staff – individuals assigned to a specific manager to provide
needed staff services.
2. Specialized Staff – individuals providing needed staff services for the whole
organization.
Line & Staff Organization 14
Committees 15
➢ Committees are used as a supplement to the existing formal organization.
➢ Committees are formed to perform specific tasks.
Common classifications of Committees:

1. Ad hoc Committee
➢ For Short-term or occasional purpose. Example: event committee; covid-19
committee.
2. Standing Committee
➢ For Long-term purpose that deals with issues on an on-going basis. Example:
Safety and Health Committee; Grievance Committee.
Questions?
ENGG 1032
Textbook:
Roberto G. Medina
5. Staffing
What is Staffing 3
➢ The Engineer Manager must be concerned with putting the right persons in
various positions within his area of concern (responsibility).
➢ Staffing may be defined as the management function that determines human

resources needs, recruits, selects, trains, and develops human resources for jobs
created by an organization.
➢ Staffing is undertaken to match people with jobs so that the realization of the
organization’s objectives will be facilitated.
The Staffing Procedure 4
1. Human Resources Planning
2. Recruitment
3. Selection
4. Induction and orientation
5. Training and Development
6. Performance Appraisal
7. Employment decisions (monetary rewards,
transfers, promotions, and demotions), and
8. Separations
Human Resource Planning 5
1. Forecasting
➢ An assessment of future human resources needs in relation to the current
capabilities of the organization.
2. Programming
➢ Appropriating or translating the forecasted human resources needs to
personnel (HR) objectives and goals.
3. Evaluation and Control

➢ Monitoring human resources action plans and evaluating their success.
Methods of Forecasting 6
1. Time series methods
➢ Use historical data to develop forecasts of the future.
2. Explanatory, or causal models

➢ Attempts to identify the major variables that are related to or have caused
particular past conditions and then use current measures of these variables to
predict future conditions.
➢ 3 Major Types of Explanatory Models:
a. Regression Models
b. Economic Models – As system of regression equations estimated from past
time-series data and used to show the effect of various independent
variables on various dependent variables.
c. Leading Indicators – refers to time series that anticipate business cycle turns.
3. Evaluation and Control

➢ Provide early warning signals of significant changes in established patterns and
relationships so that the engineer manager can assess the likely impact and
plan responses if required.
Recruitment 7
Recruitment refers to attracting qualified persons to apply for vacant positions in the
company so that those who are best suited to serve the company may be selected.
Source of Applicants:
1. Current employees
2. Advertising
3. Schools
4. Referrals from employees
5. Recruitment firms or agencies
6. Competitors
Selection 8
Selection refers to the act of choosing from those that are available the individuals most
likely to succeed on the job.
The purpose of selection is to evaluate each candidate and to pick the most suited for
the position available.
Ways of Determining Qualifications of Job Candidates:

1. Application blanks
2. References
3. Interviews
4. Testing
Types of Tests 9
1. Psychological tests – an objective standard measure of a sample behavior.
a. Aptitude Test – used to measure capacity or potential ability to learn.
b. Performance Test – to measure current knowledge of a subject.
c. Personality Test – to measure personality traits as dominance, sociability, and
conformity.
d. Interest Test – to measure interest in various fields of work.
2. Physical Examination – test given to assess the physical health of an applicant. It is

given to assure that health of the applicant is adequate to meet the job
requirements.
Induction and Orientation 10
Induction
➢ New employee is provided with the necessary information about the company. His
duties, responsibilities, and benefits are relayed to him.
Orientation
➢ New employee is introduced to the immediate working environment and co-workers.
Training and Development 11
Training refers to the learning that is provided in order to improve performance on the
present job.
2 General Types of Training Programs:

1. Training program for non-managers
2. Training and educational programs for executives
Training Program for Non-managers 12
1. On-the-job Training (OJT)
➢ Trainee (note typo error “trainer” in the textbook) is placed in an actual work
situation under the direction of an immediate supervisor, who acts as a trainer.
2. Vestibule School
➢ A schooling facility organized within an industrial plant to teach specific skills to
trainee workers.
3. Apprenticeship Program
➢ Combination of OJT and experiences with classroom instruction in particular
subjects.
4. Special Courses
➢ Provide more emphasis on education rather than training.
Training Program for Managers 13
1. Decision-making skills 3. Job Knowledge
• In-basket • On-the-job experience
• Management Games • Coaching/Mentoring
• Case Studies • Understudy
2. Interpersonal skills 4. Organizational knowledge

• Role-playing • Position rotation
• Behaviour Modeling • Multiple management
• Sensitivity training
• Transactional analysis
Performance Appraisal 14
➢ Performance Appraisal is the measurement of employee performance.
Purposes of Performance Appraisal:

1. Influence, in a positive manner, employee performance and development.
2. To determine merit pay increases
3. To plan for future performance goals.
4. To determine training and development needs
5. To assess the promotional potential of employees.
Ways of Appraising Performance 15
1. Rating scale method
➢ Each trait to be rated is represented by a
line or scale on which the rater indicates
the degree to which the individual
possesses the trait or characteristic.
2. Essay Method
➢ Evaluator composes statements that best
describe the person evaluated.
3. Management by Objectives (MBO) Method

➢ Specific goals are set collaboratively for
the organization as a whole, for subunits,
and for each individual member.
➢ Individuals are evaluated on the basis of
how well they achieved the results
specified by the goals.
Ways of Appraising Performance 16
4. Assessment center method
➢ Employee is evaluated by other people aside from immediate superior. This is
usually applied to managers. Ex. “365-degree evaluation”
5. Checklist method
➢ Evaluator checks statements on a list that are deemed to characterize an
employee’s behavior or performance
6. Work standards method

➢ Standards for worker’s output is set and used in evaluating performance of non-
managerial employees. Ex. Productivity target, or quota.
7. Ranking method
➢ Evaluator arranges employees in rank order from best to poorest performer.
8. Critical-incident method
➢ Evaluator recalls and writes down specific but critical incident that indicates
employee’s performance, whether describing success or failure.
Employment Decisions 17
After Performance Evaluation, the management will now be ready to make
employment decisions:
1. Monetary rewards
2. Promotion
3. Transfer
4. Demotion
5. Separation
Separation 18
Two Types of Separation:
1. Voluntary – Resignation of employee
➢ Management is possible, should find out the real reason why an employee
resigns.
➢ If the presence of a defect in the organization is determined, corrective action is
necessary.
2. Involuntary – Termination of employee

➢ This is the last resort that the management exercises when an employee’s
performance is poor or when he/she committed an act violating the company
rules and regulations.
➢ This is usually made after training and development efforts fail to produce
positive results or expected outcome.
Questions?
ENGG 1032
Textbook:
Roberto G. Medina
6. Communication
Communication 3
➢ A process of sharing information through symbols, including words and message
(Morris Philip Wolf & Shirley Kuiper).
➢ In management, communication must be made for a purpose, and because it

has a cost, it must be used effectively and efficiently.
Functions of Communication 4
1. Information function
➢ Information provided through communication may be used for decision-
making ta various work levels in the organization.
2. Motivation function
➢ Communication is used as a means to motivate employees to commit
themselves to the organization’s objectives.
3. Control function
➢ Communication is used to control processes or functions to achieve
organization’s objectives. Examples of communications with control function
are reports, policies, authorities and responsibilities.
4. Emotive function
➢ When feelings are repressed in the organization, employees are affected by
anxiety, which, in turn, affects performance.
The Communication Process 5
1. Develop an Idea
2. Encode – Form of the message
3. Transmit – Convey the message through various
channels (spoken or written word, body
movement, tv, phones, radio, art, electronic
forms, etc.). Channels must be free of barriers or
interferences (sometimes referred to as noise)
4. Receive
5. Decode – Meaning of the message
6. Accept/Reject
7. Use
8. Provide feedback – receiver provides feedback
to sender.
Forms of Communication 6
1. Verbal
➢ Communications transmitted through hearing or sight.
➢ Two classes of Verbal Communication:
a. Oral
b. Written
2. Nonverbal
➢ Conveying message through body language, use of time, space, touch,
clothing, appearance, and aesthetic elements.
➢ Body language consists of gestures, bodily movement, posture, facial expression,
and mannerisms of all kinds.
➢ Nonverbal communications may convey many shades and it is to the
advantage of the communicator to understand what messages are relayed
The Barriers to Communication: “Noise” 7
1. Personal barriers
➢ Hindrances arising from communicator’s characteristics as a person, such as
emotions, values, poor listening, habits, sex, age, race, socioeconomic status,
religion, education, etc.
2. Physical barriers
➢ Interferences occurring in the environment where the communication is
undertaken.
3. Semantic barriers
➢ Semantics is the study of meaning as expressed in symbols.
➢ Semantic barrier may be defined as interference with the reception of a
message that occurs when the message is misunderstood even though it is
received exactly as transmitted.
➢ Misunderstanding occurs when the receiver chose the wrong meaning of
communication forms.
➢ It’s important to understand the meaning in its context.
Overcoming Barriers 8
1. Use feedback
➢ to facilitate understanding and increase the potential for appropriate action.
2. Repeat messages
➢ in order to provide assurance that they are properly received.
3. Use multiple channels

➢ so that the accuracy of the information may be enhances
4. Use simplified language

➢ To be easily understood and eliminate the possibility of people getting mixed-up
with meanings.
➢ Drop the jargons if possible.
Techniques for Communications 9
1. Downward Communication
➢ Management cascading communications downstream to employees.
2. Upward Communication
➢ Employees communicating to management
• Formal Grievance procedures
• Employee attitude and opinion surveys
• Suggestion Systems
• Open-Door Policy
• Informal Gripe Sessions
• Task Forces
• Exit interviews
3. Horizontal Communication
➢ Same level communications
Techniques for Communications 10
Management Information System (MIS) 11
➢ An organized method of providing past,
present, and projected information on
internal operations and external
intelligence for us in decision-making.
➢ The MIS consists of written and

electronically-based systems for sending
reports, memos, bulleting, and the like.
➢ The system allows managers of the

different departments within the firm to
communicate with each other.
➢ Examples of MIS: Safety Management

Software, HR/Payroll software, CRM, ERP
software.
Purpose of MIS 12
1. Provide a basis for the analysis of early warning signals that can originate both
externally and internally.
2. Automate routine clerical operations like payroll 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 non-
programmed decisions.
Questions?

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Engineering Management

Joanne S. Dionela, ChE

1. What is an Engineer? What does it mean to be an Engineer?

2. Why is Engineering called a Discipline?

4. What is the difference between an Engineer and an Engineer Manager?

“The creative application of scientific principles to design or develop structures, machines,

➢ Engineers or “engine-ers” are not merely “Problem-Solvers”, they are “Creators”.

1. Level 1 – Minimal engineering jobs required. Ex. Retailing firms

2. Level 2 – Moderate degree or amount of engineering jobs. Ex. Transport Companies.

2. Level 2 – Engineer could be a

3. Level 3 – Engineer could be a General

The Management Process:

➢ Effectiveness – description of “whether objectives are

➢ Efficiency – description of the amount of resources used in

➢ If one does not have the desire or

➢ However, just because you are not or

Who wants to be an Engineer Manager?

Joanne S. Dionela, ChE

1. Why did you choose your Engineering discipline?

2. What process did you follow or used to come up to your decision?

3. What do you think of your decision? Was it right or wrong?

➢ Decision-Making may be defined as “the process of identifying and choosing

➢ Engineer Manager must adapt a certain procedure, system, or way of working

➢ Decision-making is the “heart of all management functions”. It is inherent in all

➢ Why diagnose a problem?

➢ Why analyze the (organizational) environment?

➢ Components of the Environment:

➢ Assess if the factors help you SOLVE or WORSEN the problem.

➢ Examples of tools used in articulating Problem or Opportunities:

➢ The most cost-effective solutions are the best solutions.

➢ How to determine Viable alternatives or solutions:

➢ Factors in Evaluating Viable Alternatives:

➢ Choice-making – the process of selecting among the viable

➢ To make the selection process easier or objective, the

➢ Note: the best solution should be the most cost-effective

➢ If the desired results is achieved, one may assume

Approaches in Problem Solving:

2. Production Order Quantity – An Economic Order

3. Backorder Inventory Model – Inventory model

4. Quantity Discount Model – Inventory model used

➢ Studies how lines form, how they function,

➢ Examines every component of waiting in line,

Two Most Prominent Network Models:

- A PERT chart is a project management tool that provides a graphical representation of a

Sample CPM Chart

➢ The engineer manager use forecasting technique to

➢ It can be utilized to assess the strength of the relationship

➢ It is a highly sophisticated tool by means of which the decision-maker develops a mathematical

Sample Decision Tree Sample Payoff Matrix

Joanne S. Dionela, ChE

➢ A Plan, which is the output of Planning, provides a methodical way of achieving

2. Middle Management Level – Intermediate Planning

3. Lower or Line Management Level – Operational Planning

➢ The intermediate plan is designed to support the Strategic Plan.

➢ This type of planning is a responsibility of lower management.

➢ It must be performed in support of the Strategic Plan and Intermediate Plan.

➢ The first task of the Engineer Manager is to provide

➢ The setting of goals provide an answer to the said

➢ Goals – defined as the precise statement of results

➢ A Tactic is a short-term action taken by management to adjust to negative internal or external

➢ A standard may be defined as a quantitative or qualitative measuring device designed to help

2. Plans with Time Horizon (Time-based Plans)