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CEE ME CEE 108 Umbay&Donayre Rev1
CEE ME CEE 108 Umbay&Donayre Rev1
UNIVERSITY OF MINDANAO
College of Engineering Education
Mechanical Engineering Program
TABLE OF CONTENTS
PAGE
Cover Page ……………………………………………………………………………………………….. 1
Table of Contents………………………………………………………………………………………. 2
Course Outline…………………………………………………………………………………………... 6
Course Outline Policy………………………………………………………………………………… 6
Course Information…………………………………………………………………………………… 9
Topic/ Activity
Unit Learning Outcomes- Unit 1……………………………………………………………. 11
Big Picture in Focus: ULO-a…………………………………………………………………..…… 11
Metalanguage…………………………………………………………………………………. 11
Essential Knowledge………………………………………………………………………. 12
Self-Help………………………………………………………………………………………… 18
Let’s Check …………………………………………………………………………………… 19
Let’s Analyze…………………………………………………………………………………... 19
In a Nutshell…………………………………………………………………………………… 20
Q & A List ……………………………………………………………………………………..... 21
Keywords Index ……………………………………………………………………………. 21
Big Picture in Focus: ULO-b…………………………………………………………………..…… 22
Metalanguage…………………………………………………………………………………. 22
Essential Knowledge……………………………………………………………………….. 22
Self-Help………………………………………………………………………………………… 42
Let’s Check …………………………………………………………………………………… 43
Let’s Analyze…………………………………………………………………………………... 43
In a Nutshell……………………………………………………………………………………. 44
Q & A List ……………………………………………………………………………………….. 44
Keywords Index ……………………………………………………………………………. 45
Big Picture in Focus: ULO-c…………………………………………………………………..……. 46
Metalanguage………………………………………………………………………………….. 46
Essential Knowledge………………………………………………………………………... 46
2
College of Engineering Education
2nd Floor, B&E Building
Matina Campus, Davao City
Telefax: (082) 296-1084
Phone No.: (082)300-5456/300-0647 Local 131
PAGE
Self-Help…………………………………………………………………………………………. 51
Let’s Check ……………………………………………………………………………………. 52
Let’s Analyze…………………………………………………………………………………….. 52
In a Nutshell……………………………………………………………………………………... 52
Q & A List ……………………………………………………………………………………….. 53
Keywords Index ……………………………………………………………………………. 54
Big Picture in Focus: ULO-1d…………………………………………………………………..…... 55
Metalanguage…………………………………………………………………………………... 55
Essential Knowledge………………………………………………………………………… 56
Self-Help………………………………………………………………………………………….. 62
Let’s Check …………………………………………………………………………………….. 63
Let’s Analyze……………………………………………………………………………………. 63
In a Nutshell…………………………………………………………………………………….. 64
Q & A List ………………………………………………………………………………………... 65
Keywords Index ……………………………………………………………………………. 66
Unit Learning Outcomes- Unit 2…………………………………………………………….. 67
Big Picture in Focus: ULO-a…………………………………………………………………..…….. 67
Metalanguage…………………………………………………………………………………... 67
Essential Knowledge………………………………………………………………………… 67
Self-Help………………………………………………………………………………………….. 72
Let’s Check …………………………………………………………………………………….. 73
Let’s Analyze……………………………………………………………………………………. 73
In a Nutshell…………………………………………………………………………………….. 74
Q & A List ……………………………………………………………………………………...… 75
Keywords Index ……………………………………………………………………………. 76
Big Picture in Focus: ULO-b…………………………………………………………………..…….. 77
Metalanguage…………………………………………………………………………………… 77
Essential Knowledge………………………………………………………………………… 77
Self-Help………………………………………………………………………………………….. 88
3
College of Engineering Education
2nd Floor, B&E Building
Matina Campus, Davao City
Telefax: (082) 296-1084
Phone No.: (082)300-5456/300-0647 Local 131
PAGE
PAGE
In a Nutshell…………………………………………………………………………………….. 161
Q & A List ………………………………………………………………………………………... 162
Keywords Index ……………………………………………………………………………. 163
Big Picture in Focus: ULO-c…………………………………………………………………..….. 164
Metalanguage………………………………………………………………………………… 164
Essential Knowledge………………………………………………………………………... 165
Self-Help………………………………………………………………………………………….. 172
Let’s Check …………………………………………………………………………………….. 173
Let’s Analyze…………………………………………………………………………………….. 173
In a Nutshell…………………………………………………………………………………….. 174
Q & A List ……………………………………………………………………………………...… 175
Keywords Index ……………………………………………………………………………. 176
Course Schedule ………………………………………………………………………………………... 177
Keywords Index ……………………………………………………………………………. 114
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College of Engineering Education
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Telefax: (082) 296-1084
Phone No.: (082)300-5456/300-0647 Local 131
Assessment Task Submission The first assessment task (examination) shall be given on
the 3rd week subsequent to the first day of class. The
remaining assessment tasks shall be handed every after
two (2) weeks of each examination schedule. The
assessment paper shall be attached with a cover page
indicating the name of the course coordinator, date of
submission, and name of the student. The document should
be submitted on the same day through e-mail or Blackboard
LMS. It is also expected that you have already paid your
tuition and other fees before the submission of the
assessment task.
Since this course is included in the licensure examination
for engineers, you will be required to take the Multiple-
Choice Question exam inside the University as your final
exam. This should be scheduled ahead of time by your
course coordinator. This is non-negotiable for all licensure-
based programs.
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College of Engineering Education
2nd Floor, B&E Building
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Telefax: (082) 296-1084
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Penalties for Late The score for an assessment item submitted after the
Assignments/Assessments designated time on the due date, without an approved
extension of time, will be reduced by 5% of the possible
maximum score for that assessment item for each day or
part day that the assessment item is late.
Return of Assignments/ Assessment tasks will be returned to you two (2) weeks
Assessments after the submission with a mark and feedback. This will be
returned by email or via Blackboard portal.
For group assessment tasks, the course coordinator will
require some or few of the students for online or virtual
sessions to ask clarificatory questions to validate the
originality of the assessment task submitted and to ensure
that all the group members are involved.
Re-marking of Assessment Papers You should request in writing addressed to the program
coordinator your intention to appeal or contest the score
and Appeal
given to an assessment task. The letter should explicitly
explain the reasons/points to contest the grade. The
program coordinator shall communicate with the students
on the approval and disapproval of the request.
If disapproved by the course coordinator, you can elevate
your case to the program head or the dean with the original
letter of request. The final decision will come from the dean
of the college.
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College of Engineering Education
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Telefax: (082) 296-1084
Phone No.: (082)300-5456/300-0647 Local 131
Student Communication You are required to have your own umindanao email
account which is a requirement to access the
BlackBoard portal. Then, the course coordinator shall
enroll the students to have access to the materials and
resources of the course. All communication formats: chat,
submission of assessment tasks, requests etc. shall be
through the portal and other university recognized
platforms.
Contact Details of the Program Head Engr. Randy E. Angelia, MEP-ECE, MSCpE
Email: randy_angelia@umindanao.edu.ph
Phone: (082) 296-1084 local 133
Students with Special Needs Students with special needs shall communicate with the
course coordinator about the nature of his/her special
needs. Depending on the nature of the need, the course
coordinator with the approval of the program head may
provide alternative assessment tasks or extension of the
deadline of submission of assessment tasks. However, the
alternative assessment tasks should still be in the service
of achieving the desired course learning outcomes.
CEE:
Frida Santa O. Dagatan
Email: cee@umindanao.edu.ph
Phone: +63 9055 267834
GSTC:
Ronadora E. Deala, RPsy, RPm, RGC, LPT
Email: ronadora_deala@umindanao.edu.ph
Phone: +63 921 2122846
Silvino P. Josol
Email: gstcmain@umindanao.edu.ph
Phone: +63 906 0757721
9
College of Engineering Education
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Telefax: (082) 296-1084
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CC’s Voice: Hello students! I hope you are having a good day. Welcome to this course
CEE108 - Engineering Management! This subject will be focusing on how
you will build-up yourself in managerial workloads for the chosen industry.
By this time, I am positive that you really wanted to pursue your career in
the field of engineering and that you have envisioned yourself inventing,
designing, analyzing, building, and testing machines, complex systems,
structures, gadgets and materials for the benefit of humankind. After this
course you will be expected to show the following outcomes:
Let us begin!
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Big Picture
Week 1-3: Unit Learning Outcomes (ULO): At the end of the unit, you are expected to
a. Discuss the definition of engineering management and the terms used in this
course.
b. Understand the evolution of management through its principles.
c. Know the skills need to become a good manager and what is the roles of a
manager.
d. Learn about decision making and what is an internal organization and its different
types.
Metalanguage
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Essential Knowledge
To perform the aforesaid big picture (unit learning outcomes) for nine (9) weeks of
the course, you need to fully understand the following essential knowledge that will be laid
down in the succeeding pages. Please note that you are not limited to exclusively refer to
these resources. Thus, you are expected to utilize other books, research articles, and other
resources that are available in the university’s library e.g. library, search.proquest.com,
etc.
Engineering
A person who applies his/her knowledge of mathematics and science properly for
mankind. Based on their specialty and level of job they are supposed to perform a number
of tasks. It is very important that the engineer knows what is expected of him/her so that
he/she may be able to perform his/her job effectively and efficiently.
Engineers are also known for their great contributions to the development of the
world’s civilization and they may be found contributing their share in the various levels of an
organization.
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There are various problems that mankind is facing right now, and the engineers are
currently developing and producing concurrent solutions for those difficulties. More
specifically, the roles of engineering encompass in the following area:
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6. Sales- where the engineer assists the company’s customers to meet their needs,
especially those require technical expertise.
7. Manufacturing- where the engineer is directly in charge of production personnel
or assumes responsibility for the product.
8. Design and development- where the engineer undertakes the activity of turning
a product concept to a finished physical item. They are in charge of the
improvement of current design and specification at the research, development,
production, design, and production stages of the product development.
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10. Research- where the engineer is engaged in the process of learning about nature
and codifying this knowledge into usable theories.
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Management
It is a process consisting of planning, leading, organizing, and controlling, and these
sets of principles will be applied for harnessing financial, physical, informational, and human
resources more effectively and efficiently to accomplish an organization's goal.
Manager
A person in charge of running or managing all or part of a corporation or a related
organization.
Engineering Management
It refers to the activity which combines "technical knowledge" with the ability to plan
and manage labor power, machinery, money, and materials. The term also defined as a
specialized form of management that is required to successfully lead technical personnel
and projects.
Engineering Managers
They are required to have training and experience in the field of general management
and the specific engineering disciplines that will be used by the engineering team to be
managed. They must have skills needed for coaching, mentoring, and inspiring technical
professionals, that are often very different from those necessary for individuals in other
fields.
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Self-Help: You can also refer to the sources below to help you further
understand the lesson:
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Let’s Check
Activity 1
Provide a list of ten engineers who became the president or general manager of a
large company. Please write the details of their success.
Let’s Analyze
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In a Nutshell
As of today, engineers are greatly known for their contributions to the development
of the world’s civilization and modernization. There are a lot of areas where engineers are
necessary like in research, sales, construction, government, teachings, testing,
manufacturing, consulting, and management. Engineers may be found contributing their
share in the various level of organization. Engineering activities should be managed and
engineers are must be placed in a position where they have to learn management skills. We
always consider all the qualifications required to become an engineer manager. One may
become one if he/she carries the ability, motivation to manage, and opportunity to manage
are met.
In this activity, you will draw a projection of yourselves 10 years from now. You need
to state all the contributions that you have as an engineer in your chosen field and explain
every detail in your drawing.
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
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Q&A List
If you have any questions regarding continuity, kindly write down on the table
provided.
QUESTIONS ANSWERS
1.
2.
3.
4.
Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
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Metalanguage
In this section, the history of engineering management, the different theories form
as it evolves, and to demonstrate ULO(b) will be tackled. These are the terms that you will
come across as we go through curriculum review.
1. Scientific Management. Scientific is more focused on the methods to develop an
improvement in productivity.
2. Classical Management. Classical management is based on the belief that workers
only have physical and economic needs.
3. Administrative Management. Administrative management tests the organizations
as total entities and emphasizes the ways to make them more efficient and
effective.
Essential Knowledge
One of the keys to good management is the ability to recognize and apply
conventional management concepts and techniques. To plan efficiently and intelligently,
managers need to develop an in-depth knowledge of past and current models, hypotheses,
and processes. The contemporary practice of management is common in all facets of human
life across all forms of organizations.
Basic management strategies have been traced back to the city of Ur (Iraq) in 3000
BC where Sumerian priests were the first to keep track of business transactions as a way to
document them. Early Egyptian Papyri texts, dating back to 1300 BC, acknowledged the
role of organization and administration in bureaucratic states. Similar documents for Ancient
China were found. Moses is credited as managing consultant to hire his father-in-law, Jethro.
Jethro helped develop the organization by which Moses controlled the Hebrews in the
wilderness.
authority and the chain of command. Even though the management records of ancient
Rome are incomplete, the nature of the operation influenced managerial techniques in their
development. The city of Rome effectively grew to an empire using the scalar concept and
the delegation of authority.
Attila the Hun, king over the royal tribe about 433 AD, successfully unified all
independent Hunni tribes into one nation. Attila called leadership a privilege. He took full
responsibility for shaping others' efforts toward achieving the organization's goals. He
assigned responsibility for successes and setbacks at different levels and with agreed
accountability. His leadership values are still firm in modern governance today.
The early Roman Catholic Church used many organizational methods such as scalar
territorial structure, a hierarchical chain of command, and set out the division of duties for its
pope, clergy, and citizens. The early Church is also attributed to specialization, job
descriptions, personnel independence, and compulsory staff service.
Classical Management
This principle is the most widely use and the oldest managerial thought. This
management method emerged between 1885 and 1940 in an attempt to provide
enough management of organizations with a rational and empirical basis. Its origins derive
from the Industrial Revolution when people were brought together to work in factories as
opposed to the handicraft method under which people worked in small shops or homes. The
industrialization has created a need for strategic planning, coordination, power, and
regulation over all work activities.
a. Scientific Management
It is more focused on the methods to develop an improvement in productivity.
Here are some examples of the people who made use of this principle.
In 1796 the inventors and developers of the steam engine founded the Soho
Engineering Foundry in Great Britain. The management of the foundry was handed
over to the sons, James Watt Jr and Matthew Robinson Boulton, who introduced
management strategies systematically including:
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Watt and Boulton, the managers of the company, created and maintained
comprehensive statistical records and sophisticated control systems in accounting.
and cost analysis, from which they were able to measure costs and profits for each
computer-generated by each department. Watt and Boulton developed worker and
executive training and development programs for their workers, job-study programs
leading to the payment of outcomes based on work reports, management experience,
and other welfare services such as a sickness benefit plan carried out by an elected
workers committee.
Robert Owen
Charles Babbage
Charles Babbage, best known for his book on the division of labor, On the
Economy of Machinery and Factories, published in 1832, argued that there should
be shared interests between workers and factory owners. Babbage strongly
supported a system of income sharing whereby employees could benefit from their
productivity.
Henry Varnum Poor, editor of American Railroad Journal concluded that efficient
management was what the railroads wanted. Bad created a management framework
with an organizational structure clearly defined so that individuals could be held
accountable. The system would also incorporate a top-down communication
reporting system across the organization.
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Frederick W. Taylor
below the company's mark asset. There was simply no guarantee of regular wage
rates, or minimum wages, as we now learn, before Taylor's later programs.
The entire philosophy of Taylor was predicated on the premise that management
and the worker's primary interests are the same. If the goal of management was lower
labor costs, then the goal of higher salaries for the workers could easily be achieved
as their work was considered tangible. It was also Taylor's belief that once the staff
realized the great advantages of scientific management, they would develop a better
mental attitude towards management and one another immediately, thereby
removing the need for constructive feedback and complaints.
Henry L. Gant
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techniques to show relationships between planned and completed work on one axis
and time spent on the other.
Here are some examples of the people who made use of this principle.
Henri Fayol
A Frenchman called Henri Fayol introduced "systematic management theory"
into the management world around the turn of the century. From 1888 until he died
in 1915, Fayol was an executive and mining engineer and played an important role
in the management field. According to Fayol, every manager's basic functions
included planning, arranging, directing, managing, and controlling. Fayol proposed
that all activities involving industrial projects could be divided into six parts:
1. Technical which involved the production.
2. The commercial included buying, selling, and exchange.
3. Financial which increased the search for, and optimum use of capital.
4. Security which protected property
5. Accounting which included statistical analysis.
6. Managerial which encompassed planning, organization, command,
coordination, and control.
proposed daily meetings with department heads and liaison officers to enhance
organizational operational cohesion.
Max Weber
Max Weber, the father of bureaucratic management, established a structure
in which a set of primary occupations and 63 management experience duties were
assigned to the employee within an office. After a formal division of labor that followed
organizational goals and objectives, each lower office was accountable to the next
higher one. People employed in each office were selected based on their
qualifications for their job. Their main duties were the primary occupations or
classifications that were allocated to them after hiring. Promotions have been
structured to reward seniority, success, or both. Promotions were not influenced by
political maneuvers, according to Weber's strategy.
Charles I. Barnard
Chester I. Barnard is regarded as a significant transformative figure who
attempted to connect scientific management with human relations. Barnard described
an organization as a network of a discerning individual or coordinated activities or
powers. Barnard introduced a theory concerning the acceptance of authority based
on free will and outside forces. The acceptance theory of authority maintained that
employees considered the validity of a superior’s orders and then decided
consciously whether to accept them or not. A directive was accepted by the employee
if he understood it, was able to follow it, and he believed it appropriate as it related to
his understanding of organizational goals.
Luther Gulick
Gulick added the concept of span of control, which addressed the factors
limiting the number of people a manager could supervise. He also recommended
unity of command because he felt that people should know to whom they were
responsible. His homogeneity of work centered on the fact that an organization
should not combine dissimilar activities in single agencies. This was the basis of
Gulick’s major contribution in the area of departmentalization.
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Lyndall Urwick
James Mooney
Coordination was considered the first principle and it contained the other two.
It involved individuals performing activities together to obtain a common goal. The
scalar principle was second and it was described as the rating of the duties involved
for different members of the organization according to the degrees of authority and
corresponding responsibility. The functional principle was defined as the
differentiation between various kinds of duty.
The major limitations of the classical management movement are that it assumes that
each worker is an economic man and will, therefore, work harder to make more money; it is
most suitable for uncomplicated and relatively stable organizations, whereas most of today’s
organizations are complex and aggressive; it does not deal with the relationship between an
organization and its environment, and most classical theorists regard employees as tools to
be used to achieve organizational goals rather than as valuable resources.
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Physiological Needs
These needs are fundamental to human life, and thus include food, water,
clothing, air, shelter, and life necessities. These needs relate to the survival of human
life and its maintenance. They have a tremendous impact on human behavior. Such
needs must be addressed at least partially in the first place before higher-level needs
arise. When physiological needs are satisfied, man is no longer driven by them.
Safety Needs
The next needs that are felt after fulfilling the physiological needs are called
health and protection needs. These needs find expression in priorities such as
economic security and physical hazard safety. Meeting those needs requires more
money and, thus, causes the person to work more. Like physiological needs, once
they are fulfilled these become inactive.
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Social Needs
Humans are social beings. Therefore, he has an interest in social contact,
companionship, belonging, etc. It is this socialization and belonging that is why
people tend to work in groups and particularly older people go to work.
Esteem Needs
Such needs include self-esteem and respect for oneself. They include those
needs that indicate self-confidence, accomplishment, ability, experience, and
freedom. Meeting the needs of integrity contributes to self-confidence, resilience, and
the desire to be successful within the organization. However, the failure to fulfill these
needs contributes to feelings of inferiority, vulnerability, and helplessness.
Self-actualization Needs
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The responses were deemed very interesting and relatively consistent when
evaluated. The answers respondents gave were substantially different when they felt
positive about their work than the answers provided when they felt bad. Good feelings
reported were generally associated with work satisfaction while bad feelings were
associated with work dissatisfaction. Herzberg named motivators for work satisfiers
and he identified hygiene or maintenance reasons for work dissatisfies. The
motivators and hygiene considerations, taken together, have become known as
Herzberg's two-factor motivation theory.
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He found that people who acquire a particular need behave differently from those
who do not have. His theory focuses on the following:
That is the drive to succeed, to meet a set of goals, and to aspire for success.
Or put it another way, the desire for accomplishment is conduct directed at the
competition with a level of excellence. McClelland found that people with a high need
for achievement perform better than those with a moderate or low need for
achievement and observed variations in regional/national motivation for
achievement.
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The need for control is about influencing others, the need to impact others, the
ability to transform people, and the desire to make a difference in life. Those who
need power are those who want to monitor people and events. This leads to ultimate
human satisfaction.
Those characteristics of people with a strong need for the association are:
1. Humans are indolent by definition. That is, they like the minimum possible amount
of work.
2. Individuals lack motivation, fear accountability, and want others to lead them.
3. People are generally self-centered and oblivious to the needs and goals of the
organization.
4. People are usually gullible, and bright and not very sharp.
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With his theory X and Y, what McGregor sought to dramatize is to illustrate the
extremes to draw the fencing through which the organizational man is generally seen
to be acting. The reality remains that neither theory X nor the theory Y will belong to
any organizational individual. In reality, he/she shares the characteristics of both.
What happens is that man swings with shifts in his mood and intentions in changing.
the environment from one set of property to the next.
Urwick’s Theory Z
Much after McGregor's theoretical propositions X and Y, the three theorists
Urwick, Rangnekar, and Ouchi-propounded the third theory called Z theory.
The above two, in Urwick's opinion, make people prepared to act positively to
achieve both organizational and individual goals. Ouchi's Theory Z has, however,
drawn significant interest from both management practitioners and researchers. It
should be remembered that Z stands for nothing, is the last letter in the English
language.
care for workers, etc.) In India, the postulates of the theory Z refer to Maruti-Suzuki,
Hero-Honda, etc.
Argyris’s Theory
Argyris formulated his theory of motivation based on the premise that
management activities influence individual behavior and development. In his opinion,
the seven changes in a human personality make him / her mature. In other words, an
individual's personality evolves.
He mentions that such a condition will not only fulfill their physiological and
safety needs but will also inspire them to be prepared to make better use of their
physiological and protection needs. But it will also inspire them to plan and make
better use of their ability to achieve organizational goals.
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1. Valence
According to Vroom, Valence means the interest or importance one puts on a
given result or reward.
2. Expectancy
Efforts contribute to success.
3. Instrumentality
Vroom means by instrumentality, the assumption that success is linked to
rewards.
Thus, the motivation of Vroom can also be expressed as follows in the form of an
equation: Motivation = Valence x Expectation x Instrumentality
Being the multiplicative model in nature, all three variables must have high
positive values to mean the motivated choice of output. If either of the variables
reaches zero amounts, the probability of the output so inspired also touches zero.
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Within Porter and Lawler's model, what is the key argument is that effort or
motivation does not explicitly lead to results. It is intact, influenced by skills and
characteristics and expectations of the position. In the end, success brings
satisfaction.
Performance
The effort one puts into his / her results. All may or may not be similar. The
level of success is therefore dictated by the amount of work and the employee's skill
and job understanding. Therefore, if an employee has less skill and/or makes
misperception of his / her position, his / her performance may be low despite his / her
great efforts.
Satisfaction
Success contributes to complacency. The level of satisfaction depends on how
many bonuses one obtains. If the actual amount of rewards matches or exceeds the
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expected equal incentives, then the employee should feel happy. In the region,
he/she will be dissatisfied if the actual rewards fall short of the perceived ones.
By these facts, the managers should carefully reassess their reward system
and structure. The effort-performance-reward-satisfaction should be made integral to
the entire system of managing men in the organization.
Modern management
The "modern movement of management" continues to develop through the
introduction of theories. Modern management approaches include system
approach, system approach, contingency approach, and strategic management
approach. Classical, behavioral, and quantitative processes are combined along
with structures and crisis management theory to form the basis of the new process
of management.
System approach
Programming method developed in the late 1960s. Herbert A. Simon is the
founding father of machine theory. A system is defined as a component set that
interacts regularly or interdependently, creating as a whole unit. The framework
description lets one see the critical variables and constraints, and their interactions.
Contingency Approach
It understands the circumstances as a tactic too. It is established in the
1980s as a platform for effective management. This approach embraces the
complexities and nuances of the company's structure. An entity is affected by its
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climate, and its laws consist of physical resources, atmosphere, people, conditions
of the society, culture, and business.
The fundamental principles discussed in greater details will provide the framework
that will be required by successful future managers in terms of understanding strategies,
organizational cultures, and theories. Of course, there are advantages and disadvantages
associated with each one. Management's knowledge and ability to adopt a variety of
management ideas and strategies as the company is continuously evolving are crucial to
achieving and retaining a competitive edge over others.
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Self-Help: You can also refer to the sources below to help you further
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Let’s Check
Activity 1. For group discussion, you need to prepare a PowerPoint presentation about
the evolution of management theory.
Activity 2. Draw a timeline about the evolution of management theory and state the details
about these theories.
Let’s Analyze
2. How can be improved, updated the management theory, training, and practice
using recent scientific discoveries?
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In a Nutshell
The discussion above stated about the evolution of management and its principle.
In this activity, you need to make an essay about if you will become an engineer manager
in 10 years, what principle will apply in handling your people?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Q&A List
If you have any questions regarding continuity, kindly write down on the table
provided.
QUESTIONS ANSWERS
1.
2.
3.
4.
5.
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Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
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Big Picture in Focus: ULOc. Know the skills, you need to become a
good manager and what are the roles of a manager
Metalanguage
For you to demonstrate ULOc, you will need to have an operational understanding
of the following terms below. Please note that you will also be required to refer to the
previous definitions found in ULOa section and you should be equipped with the concept
about management principles that were also discussed in ULOb. These are the terms that
you will come across as we go through curriculum review.
Essential Knowledge
Engineering Manager’s Role
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The top position an engineer manager may hope to occupy is the general
managership or presidency of any firm, small or large. As he scales the management ladder,
he finds that the higher he goes up, the less technical activities he performs, and the more
management tasks he accepts.
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According to Robert Kreitner, there are at least three general preconditions for
achieving lasting success as a manager.
1. Ability
Managerial ability refers to the capacity of an engineer manager to achieve
organizational objectives effectively and efficiently.
For example:
If a civil engineer was asked by his superiors to finish a 100-kilometer road
cementing project within eight months, he said to be effective if he finished the job
within the required period. On the other hand, his efficiency is measured by the
inputs (labor and materials) he poured into the project about the actual output. If the
same output is made with fewer inputs, the more efficient the civil engineer
becomes.
2. Motivation to manage
Many people have the desire to work and finish specific tasks assigned by
superiors, but not many are motivated to manage other people so that they may
contribute to the realization of the organization’s objectives.
John B. Miner developed a psychometric instrument to measure objectively
an individual’s motivation to manage. The test is anchored to the following
dimensions.
1. Desire to assert oneself and take charge
2. Desire to engage in games or sports competition with peers
3. Favorable attitude toward those in positions of authority, such as superior
4. Desire to engage in occupational or work-related competition with peers
5. Desire to exercise power and authority over others
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3. Opportunity
Successful managers become possible only if they have the ability and
motivation to manage. The opportunity for successful management has two
requirements:
1. Finding a supportive climate once on the job
2. Obtaining a suitable managerial job
Engineering managers must have the soft skills to be efficient and effective.
For a manager, technically adeptness has never been enough. You also have to excel
in soft skills. Soft skills are the attributes of personality, attitudes, habits, and actions that
you display while interacting with others.
1. Dependability
2. Work Ethic
3. Communication Skill
4. Community and Teamwork
5. Time Management Skills
6. Goal Setting
7. Mental Ability
8. Takes Direction Well
For a manager, technically adeptness has never been enough. You also have to excel
in soft skills. Soft skills are the attributes of personality, attitudes, habits, and actions that
you display while interacting with others. According to Jitesh, there are five strategies for
successful engineering management. These are the following:
• Manage Resources Well
The engineering manager should make the most of the strengths already in
place. The most experienced engineer should be appointed as project leader if their
strength is leadership, they should offer management role such as scheduling,
project planning, etc. If an engineering department is responsible for more than a
few large projects, project managers may handle projects with maximum
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engineering manager. The right consultant may also serve as a coach and trainer.
Not only does a successful coach help managers and employees build skills, but he
will also provide advice to alleviate tension and boost overall work satisfaction.
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Self-Help: You can also refer to the sources below to help you further
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Let’s Check
Activity 1. Make a PowerPoint presentation about the discussion above. You need to
emphasize the qualities of a good manager.
Let’s Analyze!
Answer the following questions.
3. What do you think the common way you see people fail as a manager?
4. If you will be the engineer manager, how will you handle your mistake in the
workplace?
In a Nutshell
Since there is an urgent need for better management, what will you do to become a
better manager, and what are the things that you will be implementing for the expansion of
your chosen firm?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
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Q&A List
If you have any questions regarding continuity, kindly write down on the table
provided.
QUESTIONS ANSWERS
1.
2.
3.
4.
5.
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Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
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Big Picture in Focus: ULOd, learn about decision making and what is
an internal organization and its different types
Metalanguage
In this section, the most essential discussion about decision-making, the definition of
the internal organization, and to demonstrate ULOd, will be discussed. Please note that
you will also be required to refer to the previous definitions found in ULOa section and you
should be equipped with the concept of management principles and the essential
knowledge about the qualities of a good manager that were also discussed in ULOb and
ULOc, respectively. These are the terms that you will come across as we go through
curriculum review.
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Essential Knowledge
DECISION-MAKING
All kinds of managers are mainly tasked to provide leadership in the quest for the
attainment of the organization’s objectives. An effective manager knows the intricacies of
decision-making. He will encounter different situations wherein there are numerous options
and with every option that he will take, there will have different effects or outcomes.
The engineer manager’s decision-making skills will be very crucial to his success as
a professional. A major mistake in decision-making might ruin any organization. However,
good decisions will provide the right environment for continuous growth and success of any
organized effort.
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The production manager must now make a decision. His choice, however, must be
based on sound arguments for he will be held responsible, later on, if he made the wrong
choice.
WHAT IS DECISION-MAKING?
Decision-making is the process of identifying and choosing alternative courses of
action in a manner appropriate to the demands of the situation. This means that the engineer
manager must adopt a certain procedure designed to determine the best option available to
solve certain problems.
Moreover, according to Nickels and others, decision-making is the heart of all the
management functions (i.e., planning, organizing, directing, and controlling).
Diagnose problem
If a manager wants to make an intelligent decision, his first move must be to identify
the problem. If the manager fails in this aspect, it is almost impossible to succeed in the
subsequent steps. An expert once said identification of the problem is tantamount to having
the problem half-solved.
What is the problem?
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A problem exists when there is a difference between an actual situation and the
desired situation. Consider this example: The management of a construction company
accepted a contract to build a 25-story building on a certain site. The actual situation of the
firm is that it has not yet constructed the building. The desired situation is the finished 25-
story building. In this case, the actual situation is different from the desired situation. The
company has a problem, that is, the construction of the 25-story building.
When making decisions, you consider the internal and external, limitations. This may
be costly, later on, to alter a decision because of a constraint that has not been previously
identified.
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Making a Choice
Choice-making is the process of selecting among alternative representing potential
solutions to a specific issue or problem.
Implement Decision
Implementation is to carry out the decisions so that the goal sought will be achieved.
To have an effective implementation, a plan must be devised. The resources must be made
available so that the decision may be properly executed.
Control is the actions made to ensure that activities are performed to match the
desire goals.
Internal Organization
A firm's internal organization is the way it is organized for carrying out its different
activities. There has to be a lot of commitment to the structure. The framework must be
defined by the priorities of the company and the communications networks to be set up
internally and externally. A consumer-focused company, for example, can need a framework
based on meeting the needs of various consumer groups. A manufacturing business may
require a specific production line-based structure.
divided into broad sectors with, for example, marketing, accounts, or human
resources, each having its particular specialism or function.
2. By product. It may be useful to create an organizational structure based on product
lines when a large company generates a variety of different items.
3. By process. When a product needs a series of processes, it will set up divisions to
execute each process.
4. By geographical area. Many companies will have branches spread across the
country and occasionally overseas. Multiple retailers are a good example of this.
5. By customer. Organizations often set up various structures for dealing with different
sets of customers.
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Self-Help: You can also refer to the sources below to help you further
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Let’s Check
Activity 1. Make a PowerPoint presentation about the decision-making and internal
organization of management that were being discussed above.
Let’s Analyze
Answer the following questions.
3. What are the components of the environment from the point of view of the decision-
make? What do they consist of?
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In a Nutshell
In every field, decision-making plays a vital function in being a manager. His/ Her
company will rise or fall depending on the outcomes of his/her decision. With this, it is very
necessary for the manager to develop skills in decision making. In this activity, you will
make a case study about the scenario found on pages 40-41 on Dr. Robert Medina’s book,
Engineering Management.
Your case study is composed of the following:
1. Introduction
2. Background Information
3. Alternatives
4. Solution
5. Recommendation
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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Q&A List
If you have any questions regarding continuity, kindly write down on the table
provided.
QUESTIONS ANSWERS
1.
2.
3.
4.
5.
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Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
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Big Picture
Week 4-5: Unit Learning Outcomes (ULO): At the end of the unit, you are expected to:
Metalanguage
Essential Knowledge
Nature of Planning
A plan is the output of planning which will provide a methodical way of achieving
desired results. This serves as a useful guide to achieve the company’s goal.
According to Nickels and others, planning is a management function that involves
anticipating future trends and determining the best strategies and tactics to achieve the
organizational goals. According to Cole and Hamilton, planning helps us to decide who will
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do it, what will be done, when, where, and how it will be done, and the standards to which it
will be done.
Strategic Planning
This is the process of determining policies and strategies for obtaining and using
resources to complete an objective and classifying the major goals of the organization. In
this level, we need to consider the whole company more specifically, its current resources
and objectives. A strategic plan is the output of strategic planning which means this is the
decision about long-range goals and the course of action to achieve these goals.
Intermediate Planning
It refers to the process of determining the contribution that sub-units can make with
allocated resources. The objectives of a sub-unit are plan and determined which will provide
to the realization of the goal. Intermediate planning is a layout to support the strategic plan.
Operational Planning
It refers to the process of determining how certain tasks can best be achieved on time
with available resources. Operational planning is designed to support the intermediate plan
and strategic plan.
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Strategic
Planning
Chief Executive
Offcer, Presiden,
V. President, Gen.
Manager, Division
Heads
(One to ten years)
Intermediate Planning
Functional Managers, Product-line
Managers, Department Heads
(six months to two years)
Operational Planning
Unit Managers, First-line Supervisor
(one week to one year)
Planning Process
The management level that performs the planning of task is consist of different
steps. Generally, planning involves the following:
1. Setting Organizational, Divisional, or Unit Goals
The first task is the engineer manager should provide a sense of direction in
accomplishing the objectives of the company. A goal is the precise statement of
result sough, quantified in time and magnitude, where possible. It is very essential to
set-up goals that will provide an answer to the said company’s concern.
The strategy is implemented, it may help the development firm realize substantial
savings within the fabric and supply necessities used in
their development exercises. The firm will also have greater control within the timing
of conveyances of materials and supplies.
3. Setting Standard
The standards for measuring execution may be set at the planning stage.
When real execution does not coordinate with the arranged execution, corrections
may be made, or fortifications have given." A standard may be defined as “a
quantitative or subjective measuring gadget planned to assist screen the
performances of individuals, capital products, or processes.”
Types of Plan
Plans are of various types. They may be classified in terms of functional ranges,
time skyline, and frequency of utilize.
2. 1. Short-range plans — these are plans envisioned to cover less than one year. First-
line supervisors are generally concerned with these plans.
2. 2. Long-range plans - these are plans to cover more than one year. These are
mostly attempted by the center and the best management.
1. Standing Plans. This is more focused on the managerial situations that deal with
repeatedly.
Standing plans may be encouraged classified as follows:
• Approaches — these are wide rules to aid managers at each level in making
decisions about repeating circumstances or function.
• Methods — these are plans that depict the exact arrangement of activities to be
taken in a given situation.
• Rules — these are explanations that either require or restrict a certain action.
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Company of 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.
Self-Help: You can also refer to the sources below to help you further
understand the lesson:
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Let’s Check
Activity 1. Interview a general manager of a firm or in any engineering field. Inquire about
the planning activities undertaken by his/her company. Prepare a presentation about your
interview.
Let’s Analyze
1. What is planning?
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In a Nutshell
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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Q&A List
If you have any questions regarding continuity, kindly write down on the table
provided.
QUESTIONS ANSWERS
1.
2.
3.
4.
5.
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Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
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Metalanguage
In this section, the opportunities offered by skillful organizing, to provide him with
some background and insights into organizing, and to demonstrate ULOb, will be tackled.
Also, in this discussion, you are required to recall and be equipped with the knowledge from
the previous sections.
To help you with that, these are the following terms that you need to know in this
section:
Formal organization. It is the structure that details lines of responsibilities, authority, and
position.
Informal group. There are instances when members of an organization spontaneously form
a group with friendship as a principal reason for belonging.
Essential Knowledge
ORGANIZING DEFINED
positive effect of business success becomes more pronounced when they come as a result
of international operations. International businesses, however, cannot hope to make huge
profits unless they are properly organized to implement their plans.
The structure serves some very useful purposes. They are the following:
1. It defines the relationships between tasks and authority for individuals and
departments.
2. It defines the formal reporting relationships, the number of levels in the hierarchy of
the organization, and the span of control.
3. It defines the groupings of individuals into departments and departments into the
organization.
4. It defines the system to effect coordination of effort in both vertical (authority) and
horizontal (tasks) directions.
When structuring an organization, the engineer manager must be concerned with the
following:
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. A 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.
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INFORMAL ORGANIZATION
Formal organizations require the formation of formal groups that will be assigned to
perform specific tasks aimed at achieving organizational objectives. The formal group Is a
part of the organizational structure.
There are instances when members of an organization spontaneously form a group
with friendship as a principal reason for belonging. This group is called an informal group. It
is not a part of the formal organization and it does not have a formal performance purpose.
Informal groups are oftentimes very useful in the accomplishment of major tasks,
especially if these tasks conform to the expectations of the members of the informal group.
The informal organization, useful as it is, is vulnerable to expediency, manipulation, and
opportunism according to Valentine. Its low visibility, Valentine added, makes it difficult for
management to detect these perversions, and considerable harm can be done to the
company.”
The engineer manager s, therefore, warned that he must be on the lookout for the
possible difficulties that the informal groups may do to the organization. It will be in his best
interest if he could make the informal groups work for the organization.
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FRIENDSHIP
PROXIMITY
NEED SATISFACTION
which are derived from WHICH PROPEL
unions, cultural PEOPLE
societies. fraternities, TO
etc.
FORM
AN
COLLECTIVE POWER INFORMAL
GROUP
which are derived from JOIN
unions, fraternities,
etc.
GROUP GOALS
which attract
individuals like:
consumer society,
sports club, etc.
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PRESIDENT
Functional Organization
Functional organization structures are very effective in smaller firms, -especially
“single-business firms where key activities revolve around well-defined skills and areas of
specialization."
Functional organizations have certain advantages. They are the following:
1. The grouping of employees who perform a common task permit economy of
scale and efficient resource use.
2. Since the chain of command converges at the top of the organization, decision-
making is centralized, providing a unified direction from the top.
3. Communication and coordination among employees within each department are
excellent.
4. The structure promotes high-quality technical problem-solving.
5. The organization is provided with in-depth skill specialization and development.
6. Employees are provided with career progress within functional departments."
The disadvantages of the functional organization are the following:
1. Communication and coordination between the departments are often poor.
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2. Decisions involving more than one department pile up at the top management
level and are often delayed.
3. Work specialization and division of labor, which are stressed in a functional
organization, produce routine, nonmotivating employee tasks.
4. It is difficult to identify which section or group is responsible for certain problems.
5. There is a limited view of organizational goals by employees.
6. There is limited general management training for employees.
Product or Market Organization
The product or market organization, with its feature of operating by divisions, is
appropriate for a large corporation with many product lines in several related.
industries.
The advantages of a product or market organization are as follows:
1. The organization is flexible and responsive to change.
2. The organization provides a high concern for customer’s needs.
3. The organization provides excellent coordination across functional departments.
4. It is easy pinpointing responsibility for product problems.
5. There is an emphasis on overall product and division goals.
6. The opportunity for the development of general management skills is provided.
The disadvantages of the product or market organization are as follows:
1. There is a high possibility of duplication of resources across divisions.
2. There is less technical depth and specialization in divisions.
3. There is poor coordination across divisions.
4. There is less top management control.
5. There is competition for corporate resources.
Matrix Organization
A matrix organization, according to Thompson and Strickland, “is a structure with two (or
more) channels of command, two lines of budget authority, and two sources of performance
and reward." Higgins declared that “the matrix structure was designed to keep employees
in a central pool and to allocate them to various projects in the firm according to the length
of time they were needed?"
The matrix organization is afforded with the following advantages:
1. There is more efficient use of resources than the divisional structure.
2. There are flexibility and adaptability to a changing environment.
3. The development of both general and functional management skills is present.
4. There is interdisciplinary cooperation, and any expertise is available to all divisions.
5. There are enlarged tasks for employees which motivate them better.
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The matrix organization has some disadvantages, however. They are the following:
1. There are frustration and confusion from a dual chain of command.
2. There is a high conflict between divisional and functional interests.
3. There are many meetings and more discussion than action.
4. There is a need for human relations training for key employees and managers.
5. There is a tendency for power dominance by one side of the matrix.
PRESIDENT
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PRESIDENT
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TYPES OF AUTHORITY
The delegation of authority is a requisite for effective organizing. It consists of three
types. They are as follows:
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 advise a superior.
3. Functional authority — a specialist’s right to oversee lower-level personnel involved
in that specialty, regardless of where the personnel is in the organization.
Line departments perform tasks that reflect the organization's primary goal and mission.
ln a construction firm, the department that negotiates and secures con-
tracts for the firm are a line department. The construction division is also a line function.
Staff departments include all those that provide specialized skills in support of line
departments. Examples of staff departments include those which perform strategic planning,
labor relations, research, accounting, and personnel.
Staff Officers may be classified into the following:
1. Personal staff — those individuals assigned to a specific manager to provide needed
staff services.
2. Specialized staff — those individuals providing needed staff services for the whole
organization.
Functional authority is one given to a person or a workgroup to make decisions related
to their expertise even if these decisions concern other departments. This authority is given
to most budget officers of organizations, as well as other officers.
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Self-Help: You can also refer to the sources below to help you further
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Let’s Check
Activity 1. Make an organization chart of a large engineering firm showing line and staff
relationships.
Activity 2. Let us have a group discussion about the topic in ULOb. Make a PowerPoint
presentation about organizing as one of the functions of management.
Let’s Analyze
1. What is organizing?
2. Why is it very essential for the engineer manager to have the skills in organizing?
5. What should be the concern of the engineer manager when structuring the
organization?
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In a Nutshell
Your Turn
2. __________________________________________________________________
________________________________________________________________
3. __________________________________________________________________
________________________________________________________________
4. __________________________________________________________________
________________________________________________________________
5. __________________________________________________________________
________________________________________________________________
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Q&A List
If you have any questions regarding continuity, kindly write down on the table
provided.
QUESTIONS ANSWERS
1.
2.
3.
4.
5.
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Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
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Big Picture in Focus: ULO(c) Learn and analyze the different functions of
management more specifically in staffing
Metalanguage
After setting up the organizational structure that has been chosen to best serve
the interest of a certain firm, the following move that must be made is to fill up the identified
positions with the foremost qualified people accessible. Engineering organizations
are exceptionally delicate to whatever staffing mistakes are made. Setting the off-
base individual in a profoundly specialized position like quality control, for the occasion, may
bring untold harm to the firm. However, this alludes to a single blunder as it were.
Essential Knowledge
Staffing
The engineer manager must be concerned with putting the right people in different
positions inside his area of concern. Although a few of the vital aspects of staffing may be
assigned to the human asset office, the building director accept a great duty in assuring
that the proper people are relegated to positions that fit their qualifications.
Staffing may be defined as “the administration function that decides human asset
needs, recruits, trains, selects, and creates human assets for the employments made by an
organization.” Staffing is embraced to coordinate individuals with occupations so that the
realization of the organization’s goal will be encouraged.
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STAFFING PROCEDURE
Series of steps are involved in staffing:
procedures may be simple or complex depending on the costs of a wrong decision. If the
management picks the wrong person and the subsequent effect on the organization is
negligible, then the selection process is made simple. This is true in the case of construction
laborers where a review of their applications is done. Within a few days or even a few hours,
the applicants are informed of the decision.
4. Induction and orientation
After an applicant is finally selected from among the various ones and then
subsequently is hired, the next steps undertaken are induction and orientation. In induction,
the new employee is provided with the necessary information about the company. His duties,
responsibilities, and benefits are relayed to him. Personnel and health forms are filled up,
and passes are issued. The company's history, its products and services, and the
organization structure are explained to the new employee. In orientation, the new employee
is introduced to the immediate working environment and co-workers. The following are
discussed: location, rules, equipment, procedures, and training plans. Performance
expectations are also discussed. The new employee also undergoes the “socialization
process" by pairing him with an experienced employee and having a one-on-one discussion
with the manager.
5. Training and development
If the newly hired (or newly promoted) employee is assessed to be lacking the
necessary skills required by the job, training becomes a necessity. Training refers to the
“learning that is provided to improve performance on the present job.” Training programs
consist of two general types, namely.’
1. training programs for nonmanagers, and
2. training and educational programs for executives.
6. Performance Appraisal
Performance appraisal is the measurement of employee performance. The purposes for
which performance appraisal is made are as follows.
• To influence, in a positive manner employee performance and development
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7. Employment Decisions
After evaluating the performance of employees (managerial or otherwise), the management
will now be ready to make employment decisions. These may consist of the following:
7.1. Monetary rewards -— these are given to employees whose performance is at
par or above standard requirements.
7.2. Promotion — this refers to a movement by a person into a position of higher pay
and greater responsibilities and which is given as a reward for competence and
ambition.
7.3. Transfer — this is the movement of a person to a different job at the same or
similar level of responsibility in the organization. Transfers are made to provide
growth opportunities for the persons involved or to get rid of a poor performing
employee.
7.4. Demotion — this is a movement from one position to another which has less
pay or responsibility attached to it. Demotion is used as a form of punishment or as
a temporary measure to keep an employee until he is offered a higher position.
8. Separation
Separation is either a voluntary or involuntary termination of an employee. When
made voluntarily, the organization's management must find out the real reason. If the
presence of a defect in the organization is determined, corrective action is necessary.
Involuntary separation (or termination) is the last option 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 efforts fail to produce
positive results.
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Let’s Check
Activity 1. Make a poster slogan, it could be a digital or a handmade poster, which shows
the importance of staffing as a function of management.
Let’s Analyze
4. What is the implication of the cost of the “wrong decision” in the selection process?
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In a Nutshell
Engineering organizations are not immune to the difficulties of filling with qualified
persons the various positions identified in the organizing stage. As outputs of engineering
firms are produced by people under the supervision of engineer managers, errors in the
performance of jobs may not be easily discernible. As such, staffing must be treated with
serious concern. Staffing deals with the determination of human resources needs
recruitment, selection, training, and development. For your activity, you need to research
and prepare a forecast of the human resource needs of an engineering firm.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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Q&A List
If you have any questions regarding continuity, kindly write down on the table
provided.
QUESTIONS ANSWERS
1.
2.
3.
4.
5.
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Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
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Big Picture
Week 6-7: Unit Learning Outcomes (ULO): At the end of the unit, you are expected to:
a. Assess and evaluate knowledge about communication as one of the functions of
management in an organization.
b. Explain the value of change and develop skills to lead successfully.
c. explain the objectives of control and describe the controlling process.
Metalanguage
the course. Please refer to these definitions in case you will encounter difficulty in
understanding the concepts.
1. Communication. It is a process of sharing information through symbols,
including words and messages.
2. Information function. Information provided through communication maybe.
used for decision-making at various work levels in the organization.
3. Verbal. Verbal communications are transmitted through hearing or sight.
4. Barrier. A barrier is an obstacle that prevents access to effective communication.
5. Non-verbal communication. It is a means of conveying messages through body
language, as well as the use of time, space, touch, clothing, appearance, and
aesthetic elements.
Essential Knowledge
Communication
Morris Philip Wolf and Shirley Kuiper define communication as “a process of sharing
information through symbols, including words and message." Communication may happen
between superior and subordinate, between peers, between a manager and a client or
customer, between an employee and a government representative, etc. It may be done face-
to-face, or printed materials, or through an electronics device like the telephone, etc. In
management, communication must be made for a purpose and because it has a cost
attached to it, it must be used effectively.
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Function of Communication
SENDER
develops idea
encodes
RECEIVER
who receives
message
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decodes
accepts or
rejects
Then provides feedback to
Develop an Idea
The most important step in effective communication is developing an idea. The idea
to be conveyed must be useful or of some value.
Encode
The next step is to encode the idea into words, illustrations, figures, or other symbols
suitable for transmission. The method of transmission should be determined in advance so
that the idea may be encoded to conform with the specific requirements of the identified
method.
Transmit
After encoding, the message is now ready for transmission through the use of an
appropriate communication channel. Among the various channels used include the spoken
word, body movements, the written word, television, telephone, radio, an artist’s paint,
electronic mail, etc.
Proper transmission is very important so the message sent will reach and hold the
attention of the receiver. To achieve this, the communication channel must be free of
barriers, or interference (sometimes referred to as noise).
Receive
The next step is the communication process is the actual receiving of the message
by the intended receiver.
Decode
The next step, decoding, means translating the message from the sender into a form
that will have meaning to the recipient. If the receiver knows the language and terminology
used in the message, successful decoding may be achieved.
Accept
The next step is for the receiver to accept or reject the message. Sometimes,
acceptance (or rejection) is partial. An example is provided as follows: A newly-hired
employee was sent to a supervisor with a note from his superior directing the supervisor to
accept the employee into his, unit and to provide the necessary training and guidance.
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Use
The next step is for the receiver to use the information. If the message provides
information of importance to a relevant activity, then the receiver could store it and retrieve
it when required. If the message requires a certain action to be made, then he may do so,
otherwise, he discards it as soon as it is received. All of the above-mentioned options will
depend on his perception of the message.
Provide Feedback
The last step in the communication process is for the receiver to provide feedback to
the sender. Depending on the perception of the receiver, however, this important step may
not be made. Even if the feedback is relayed, it may not reach the original sender of the
message. This may be attributed, to the effects of any of the communication barriers.
FORMS OF COMMUNICATION
Communication consists of two major forms:
1. Verbal
Verbal communications are transmitted through hearing or sight. These
modes of transmission categorize verbal communication into two classes: oral and
written. Oral communication mostly involves hearing the words of the sender,
although sometimes, opportunities are provided for seeing the sender's body
movements, facial expression, gestures, and eye contact. Sometimes, feeling,
smelling, tasting, and touching are involved. The written communication, however,
has limitations, and to remedy these, some means are devised. Perfume advertisers,
for instance, lace their written message with the smell of their products.
2. Nonverbal
Nonverbal communication is a means of conveying messages through body
language, as well as the 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.
Various factors may impede the efficient flow of communication. Any, or all, of these
factors, may, at any point, derail the process. Even if the message is transmitted by the
channel, the timing and the meaning of the message may be affected by the factors.
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2. Physical Barriers
Physical barriers refer to interferences in ineffective communication occurring in the
environment where the communication is undertaken. The very loud sound produced by a
passing jet temporarily drowns out the voice of a guest delivering a speech. Such distraction
does not allow a full understanding of the meaning of the entire message and is an example
of a physical barrier. Physical barriers include distances between people, walls, a noisy
jukebox near a telephone, etc. An office that is mo. tidy may sometimes inhibit a person from
meeting the occupant of the office face-to-face. A menacing pet dog (or secretary) posted
near the door may also prevent a person from directly communicating with the object person
behind the door.
3. Semantic Barriers
Semantics is the study of meaning as expressed in symbols. Words, pictures, or
actions are symbols that suggest certain meanings. When the wrong meaning has been
chosen by the receiver, a misunderstanding occurs. Such error constitutes a barrier to
communication. A semantic barrier may be defined as an interference with the reception of
a message that occurs when the message is misunderstood even though it is received
exactly as transmitted.
• Downward Communication
Downward communication refers to message flows from higher levels of
authority to lower levels. Among the purposes of downward communication are:
1. to give instructions
2. to provide information about policies and procedures
3. to give feedback about performance
4. to indoctrinate or motivate
Among the techniques used in downward communication are as follows:
letters, meetings, telephones, manuals, handbooks, and newsletters.
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• Upward Communication
Upward communication refers to messages from persons in lower-level
positions to persons in higher positions. The messages sent usually provide
information on work progress, problems encountered, suggestions improving output,
and personal feelings about work and non-work activities. Among the techniques
used in upward communication are formal grievance procedures, employee attitude,
and opinion surveys, suggestion systems, door policy, informal gripe sessions, task
forces, and interviews.
• Horizontal Communication
Horizontal communication refers to messages sent to individuals or groups
from another of the same organizational level or position. The purposes of
horizontal communication are:
1. to coordinate activities between departments
2. to persuade others at the same level of organization
3. to pass on information about activities or feelings.
Among the techniques which deal with horizontal communication are
memos, meetings, telephones, and other social affairs.
Manufacturing
Finance Marketing
MANAGEMENT
INFORMATION SYSTEM
Engineering Personnel
Research and
Development
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Wheelen and Hunger enumerate the various reasons for establishing MIS:
1. provide a basis for the analysis of early warning signals that can originate both
externally and internally.
2. to 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.
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Self-Help: You can also refer to the sources below to help you further
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Let’s Check
Activity 1. Now that you know the most essential terms in the study of leading. Let us try to
check your understanding of these terms. In the space provided, write the term/s being
asked in the following statements:
_________1. It refers to message flows from higher levels of authority to lower levels.
_________2. It is defined by Boone and Kurtz as an organized method of providing past,
past, present, and projected information on the internal operation and external intelligence
for use in decision-making.
_________3. It is defined by Boone and Kurtz as an organized method of providing past,
past, present, and projected information on the internal operation and external intelligence
for use in decision-making.
_________4. It may happen between superior and subordinate, between peers, between a
manager and a client or customer, between an employee and a government representative,
etc.
_________5. It is the study of meaning as expressed in symbols.
_________6. It involves hearing the words of the sender, although sometimes, opportunities
are provided for seeing the sender's body movements, facial expression, gestures, and eye
contact.
_________7. It refers to messages sent to individuals or groups from another of the same
organizational level or position.
_________8. This is the step where the communication process is the actual getting the
message by the intended receiver.
_________9. It is defined as an interference with the reception of a message that occurs
when the message is misunderstood even though it is received exactly as transmitted.
_________10. It is a barrier that refers to interferences in ineffective communication
occurring in the environment where the communication is undertaken.
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Let’s Analyze
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In a Nutshell
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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Q&A List
If you have any questions regarding continuity, kindly write down on the table
provided.
QUESTIONS ANSWERS
1.
2.
3.
4.
5.
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Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
Communication Receiver
Management Semantic
Information System
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Big Picture in Focus: ULO(b) Explain the value of change and develop
skills to lead successfully.
Metalanguage
In this section, the most essential terms relevant to the study of leading and to
demonstrate ULO(b) will be operationally defined to establish a common frame of reference
as to how the texts work in your chosen field or career. You will encounter these terms as
we go through the study of the leading Please refer to these definitions in case you will
encounter difficulty in understanding terms.
Essential Knowledge
To perform the aforesaid big picture (unit learning outcomes) for nine (9) weeks of
the course, you need to review essential principles in engineering management necessary
that will be laid down in the succeeding pages. Please note that you are not limited
to exclusively refer to these resources. Thus, you are expected to utilize other books,
research articles, and other resources that are available in the university’s library e.g.,
ebrary, search.proquest.com etc.
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Leading
2. Reward Power
When a person can give rewards to anybody who follows orders or requests,
the is said to have reward power.
3. Coercive Power
When a person compels another to comply with orders through threats or
punishment, he is said to coercive power.
4. Referent Power
When a person can get compliance from another because the latter would
want to be identified with the former, that person is said to have referent power.
5. Expert Power
Experts provide specialized information regarding their specific lines of
expertise.
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3. Personal Integrity
A person who is well-regarded by others as one who has integrity possesses one
trait of a leader.
4. Self Confidence
The activities of leaders require moves that will produce the needed outputs.
5. Analytical Ability
Leaders are, oftentimes, faced with difficulties that prevent the completion of
assigned tasks.
7. Charisma
When a person has sufficient personal magnetism that leads people to follow his
directives, this person is said to have charisma.
8. Creativity
Ronnie Millevo defines creativity as “the ability to combine existing data,
experience, and preconditions from various sources in such away.
9. Flexibility
People differ in the way they do their work. One will adopt a different method from
another person’s method.
Leadership Skills
Leaders need to have various skills to be effective. They are:
1. Technical Skills
These are skills a leader must possess to enable him to understand and make
decisions about processes, activities, and technology.
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2. Human Skills
These skills refer to the ability of a leader to deal with people, both inside and
outside the organization.
3. Conceptual Skills
These skills refer to “the ability to think in abstract terms, to see how parts fit
together to form the whole”.
2. Participative Leaders
When a leader openly invites his subordinates to participate or share in decisions,
policymaking, and operation methods, he is said to be a participative leader.
3. Free-Rein Leaders
Leaders who set objectives and allow employees or subordinates relative freedom
to do whatever it takes to accomplish these objectives are called free-rein leaders.
2. Task Orientation
A leader is said to be task-oriented if he places stress on production and the
technical aspects of the job and the employees are viewed as the means of getting
the work done.
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Self-Help: You can also refer to the sources below to help you further
understand the lesson:
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Let’s Check
Activity 1. Now that you know the most essential terms in the study of leading. Let us try to
check your understanding of these terms. In the space provided, write the term/s being
asked in the following statements:
_________1. One of the traits of effective leaders on which a person who is well-regarded
by others as one who has integrity possesses one trait of a leader.
_________2. This refers to a person who occupies a higher position has legitimate power
over persons in lower positions within the organization.
_________3. One of the traits of effective leaders on which a person with drive is those
identified as willing to accept responsibility, possess vigor, initiative, persistence, and health.
_________4. This is when a person can get compliance from another because the latter
would want to be identified with the former, that person is said to have referent power.
_________5. This refers to a management function which “involves influencing others to
engage in the work behaviors necessary to reach organizational goals.
_________6. One of the traits of effective leaders on which the leaders are, oftentimes,
faced with difficulties that prevent the completion of assigned tasks.
_________7. This is when a person can give rewards to anybody who follows orders or
requests, the is said to have reward power.
_________8. One of the traits of effective leaders on which some persons have all the
qualifications for leadership.
_________9. This is when a person compels another to comply with orders through threats
or punishment, he is said to coercive power.
_________10. This is where the experts provide specialized information regarding their
specific lines of expertise.
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Let’s Analyze
3. Why is it important for a leader to have “the desire to lead”? What happens if the said
desire is not present?
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In a Nutshell
Engineer managers should be equipped with good leadership skills. Leading, as a
management function, involves influencing others to engage in the work behaviors
necessary to reach the organization’s goal. Leaders should have technical, human, and
conceptual skills to be effective. For this activity, you need to identify an engineer of your
choice and describe his/her leadership style. Are there important changes that have to be
made in his/her style? What are those? List down the suggested character change
applicable.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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Q&A List
In this section, list down all emerging questions or issues. These questions may be raised
in the LMS or other modes. You can write the answers after clarification.
1.
2.
3.
4.
5.
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Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
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Big Picture in Focus: ULO(c) explain the objectives of control and describe the
controlling process.
Metalanguage
For you to demonstrate ULO(j), you will need to have an operational understanding
of the following principles below. Please note that you will also be required to refer to the
previous principles found in the ULO(i) section.
Please proceed immediately to the “Essential Knowledge” part since the first
lesson is also a definition of essential terms.
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Essential Knowledge
To perform the aforesaid big picture (unit learning outcomes) for the first three (3)
weeks of the course, you need to review essential principles in machine elements 2
necessaries that will be laid down in the succeeding pages. Please note that you are
not limited to exclusively refer to these resources. Thus, you are expected to utilize
other books, research articles, and other resources that are available in the university’s
library e.g., ebrary, search.proquest.com etc.
Controlling
Importance of Controlling
When controlling is properly implemented, it will help the organization achieve its goal
most efficiently and effectively possible. Deviations, mistakes, and shortcomings happen
inevitably. When they occur in daily operations, they contribute to unnecessary expenditures
which increase the cost of producing goods and services.
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Types of Control
Control consists of three distinct types, namely:
1. Feedforward control
2. Concurrent control
3. Feedback control
Feedforward Control
When management anticipates problems and prevents their occurrence, the type of
control measure undertaken is called feedforward control.
Concurrent Control
When operations are already ongoing and activities to detect variances are made,
concurrent control is said to be undertaken. It is always possible that deviations from
standards will happen in the production process.
Feedback Control
When information is gathered about a completed activity, and so that evaluation
and steps for improvement are derived, feedback control is undertaken.
Strategic Plans
It provides the basic control mechanism for the organization. When there are
indicators that activities do not facilitate the accomplishment of strategic goals, these
activities are either set aside, modified, or expanded.
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Performance Appraisals
Performance appraisal measures employee performance. As such, it provides
employees with a guide on how to do their jobs better in the future.
Statistical Reports
Statistical reports pertain to those that contain data on various developments within
the firm. Among information which may be found in a statistical report pertains to the
following:
1. Labor efficiency rates
2. Quality control rejects
3. Accounts receivable
4. Accounts payable
5. Sales reports
6. Accident reports
7. Power consumption report
Strategic Control Systems
To be able to assure the accomplishment of the strategic objectives of the company,
strategic control systems become necessary. These systems consist of the following:
1. Financial analysis
2. Financial ratio analysis
Financial Analysis
The success of most organizations depends heavily on its financial performance. It is
just fitting that certain measurements of financial performance be made so that whatever
deviations from standards are found out, corrective actions may be introduced.
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Recognizing the need for control is one thing, implementing it is another. When
operations become complex, the engineer manager must consider useful steps in
controlling. Kreutner mentions three approaches:
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Self-Help: You can also refer to the sources below to help you further
understand the lesson:
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Let’s Check
Activity 1. Now that you know the most essential terms in the study of control. Let us try to
check your understanding of these terms. In the space provided, write the term/s being
asked in the following statements:
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Let’s Analyze
Answer the following questions.
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In a Nutshell
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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Q&A List
In this section, list down all emerging questions or issues. These questions may be raised
in the LMS or other modes. You can write the answers after clarification.
1.
2.
3.
4.
5.
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Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
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Week 8-9: Unit Learning Outcomes (ULO): At the end of the unit, you are expected to:
a. Acknowledge the ideas about how engineering managers manage the product and
service operation.
b. Demonstrate a comprehensive understanding about how should engineering
managers manage the marketing function.
c. Show a comprehensive understanding about how should engineering managers
manage the finance function.
Metalanguage
For you to demonstrate ULO(a), you will need to have an operational understanding
of the following principles below.
1. Operation. Operations refer to any process that accepts inputs and uses resources
to change those inputs in useful ways.
2. Efficiency. Efficiency is related to “the cost of doing something, or the resource
utilization involved.
3. Effectiveness. Effectiveness refers to goal accomplishment.
4. Manufacturing. Manufacturing processes are those that refer to the making of
products by hand or with machinery.
5. Job shop. A job shop is one whose production is based on sales orders for a variety
of small lots.
6. Batch Flow. The batch flow process is where lots of generally own designed products
are manufactured. It is further characterized by the following:
7. Assembly line. An assembly line refers to a production layout arranged in a
sequence to accommodate the processing of large volumes of standardizing products
or services.
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Please proceed immediately to the “Essential Knowledge” part since the first
lesson is also a definition of essential terms.
Essential Knowledge
To perform the aforesaid big picture (unit learning outcomes) for the first three (3)
weeks of the course, you need to review essential principles in machine elements 2
necessaries that will be laid down in the succeeding pages. Please note that you are
not limited to exclusively refer to these resources. Thus, you are expected to utilize
other books, research articles, and other resources that are available in the university’s
library e.g., ebrary, search.proquest.com, etc.
OPERATION
Operations refer to any process that accepts inputs and uses resources to change
those inputs in useful ways.
Examples of final goods and services are as follows:
1. Industrial chemicals like methylene chloride, borax powder, phosphoric acid, etc.,
which are produced by chemical manufacturing firms.
2. Services like those for the construction of ports, high-rise buildings, roads, bridges,
etc., which are produced by constructions firms.
3. Electrical products like transformers, circuit breakers, switch gears, power capacitors,
etc., which are produced by electrical manufacturing firms.
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OPERATION MANAGEMENT
Operations is an activity that needs to be managed by competent persons. Aldag and
Stearns accurately defined operations management as “the process of planning, organizing,
and controlling operations to reach objectives efficiently and effectively. “As the terms
“planning”, “organizing”, and ‘controlling’ have already been discussed in the previous
section, elaborations on the terms “efficiency“ and “effectiveness' will be made.
Efficiency is related to “the cost of doing something, or the resource utilization
involved." When a person performs a job at a lesser cost than when another person performs
the same job, he is more efficient than the other person.
Effectiveness refers to goal accomplishment. When one is able to reach his
objectives, say produce 10,000 units in one month, he is said to be effective.
Operations management must be performed in coordination with the other functions
like those for marketing and finance. Although the specific activities of the operations
divisions of firms slightly differ from one another, the basic function remains the same, i.e.,
to produce products or services.
OPERATIONS AND THE ENGINEER MANAGER
The engineer manager is expected to produce some output at whatever management
level he is. If he is assigned as the manufacturing engineer, his function is to determine and
define the equipment, tools, and processes required to convert the design of the desired
product into reality in an efficient manner.
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MANUFACTURING PROCESSES
Manufacturing processes are those that refer to the making of products by hand or
with machinery.
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Jab Shop. A job shop is one whose production is based on sales orders for a variety
of small lots. Job shops are very useful components of the entire production effort since they
manufacture products in small lots that are needed by but cannot be produced economically
by many companies. Depending upon the customer's needs, a job shop may produce a lot
consisting of 20 to 200 or more similar parts.
Job shops produce custom products, in general. Products may be manufactured
within a short notice. The equipment used is of the general-purpose type.
The type of layout used by job shops in the process layout, where similar machines
are grouped. The typical size of the operation is generally small. Job shops are labor-
intensive, and machines are frequently idle. Figure 10.4 shows a process flow diagram for
a job shop.
Batch Flow. The batch flow process is where lots of generally own designed products
are manufactured. It is further characterized by the following:
1. There is flexibility to produce either low or high volumes.
2. Not all procedures are performed on all products.
3. The type of equipment used is mostly for general purposes.
4. The process layout is used.
5. The operation is labor-intensive, although there is less machine idleness.
6. The size of the operation is generally medium-sized.
Examples of factories using the large batch flow a winery, scrap-metal reduction
plants, and road-repair contractors.
Worker-Paced Assembly Line. An assembly line refers to a production layout
arranged in a sequence to accommodate the processing of large volumes of standardizing
products or services.
The quality and quantity of output in a worker-paced assembly line depend to a great
extent to the skill of the labor utilized. Examples of worker-paced assembly lines are food
marts like McDonald's and Shakeys.
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Professional service firms 0fi'er a diverse mix of services. There is a lower utilization
of capital equipment compared to the service factory and the service shop. The process
pattern used is very loose. The process layout used is identical to the job shop.
Professional service firms are, oftentimes, faced with delivery problems brought
about by nonuniform demand. Strategies that may be used "depending on the situation are
as follows:
1. The use of staggered work-shift schedules.
2. The hiring of part-time staff.
3. Providing the customer with the opportunity to select the level of service.
4. Installing auxiliary capacity or hiring subcontractors.
5. Using multiskilled floating staff.
6. Installing customer self-service.
4. inventory control
5. work flow layout
6. quality control
Product Design
Customers expect that the products they buy would perform according to assigned
functions. A good product design assures that this will be so. Customers avoid buying
products with poor product design. An example is a certain brand of ball pen which fails to
write after one or two days of actual use. This happens because of poor product design.
Product design refers to the process of creating a set of product specifications
appropriate to the demands of the situation.
Companies wanting to maintain or improve their market share keeps a product design
team composed of engineers, manufacturing, and marketing specialists.
Production Planning and Scheduling
Production planning may be defined as “forecasting the future sales of a given
product, translating this forecast into the demand it generates for various production facilities
and arranging for the procurement of these facilities."
Production planning is a very important activity because it helps management to
make decisions regarding capacity. When the right decisions are made, there will be fewer
opportunities for wastages.
Scheduling is the “phase of production control involved in developing timetables that
specify how long each operation in the production process takes. Efficient scheduling
assures the optimization of the use of human and nonhuman resources.
Purchasing and Materials Management
Firms need to purchase supplies and materials required in the various production
activities. The management of purchasing and materials must be undertaken with a high
degree of efficiency and effectiveness especially in firms engaged in high volume
production. The wider variety of supplies and materials needed adds to the necessity of
properly managing and purchasing of materials.
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Inventory Control
Inventory control is the process of establishing and maintaining appropriate levels of
reserve stocks of goods. “As supplies and materials are required by firms in the production
process, these must be kept available when they are needed. ‘Ibo much reserves of stocks
will penalize the firm in terms of high storage costs and other related risks like obsolescence
and theft. Too little reserves, on the other hand, may mean lost income opportunities if
production activities are hampered. A balance between the two extremes must be
determined.
There are ways of achieving proper inventory control. They are as follows:
1. determining reorder point and reorder quantity
2. determining economic order quantity
3. the use of just-in-time (JIT) method of inventory control
4. the use of the material requirement planning (MRP) method of planning and
controlling inventories.
Work-Flow Layout
The work-flow layout is the process of determining the physical arrangement of the
production system. In the transformation process, the flow of work may be done either
haphazardly or orderly.
The job of the operations manager is to assure that a cost-effective work-flow layout
is installed. A good workflow layout will have the following benefits:
1. Minimize investment in equipment.
2. Minimize overall production time.
3. Use existing space most effectively.
4. Provide for employee convenience, safety, and comfort.
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Quality Control
Quality control refers to the measurement of products or services against standards
set by the company. Certain standard requirements are maintained by the management to
facilitate production and to keep customers satisfied.
Poor quality control breeds customer complaints, returned merchandise, expensive
lawsuits, and huge promotional expenditures.
Self-Help: You can also refer to the sources below to help you further
understand the lesson:
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Let’s Check
Activity 1. You need to research the transformation process of an existing company. Site
some part on the transformation process where improvements in the flow could be
introduced.
Let’s Analyze
1. What do you mean by” operation”? Does this term cover production of farm product?
2. What are the types of transformation process? In what way are they similar and different?
5. What types of services are offered by professional service firms? What production
problems do these firms encounter?
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In a Nutshell
You have already known how essential to know about how engineering mangers manage
the product and service operation. Also, it tackles the different organizational units of a
company. This time, I will provide you my perspective, and you continue the remaining.
Your Turn
3. __________________________________________________________________
________________________________________________________________
4. __________________________________________________________________
________________________________________________________________
5. __________________________________________________________________
________________________________________________________________
6. __________________________________________________________________
________________________________________________________________
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Q&A List
In this section, list down all emerging questions or issues. These questions may be raised
in the LMS or other modes. You can write the answers after clarification.
1.
2.
3.
4.
5.
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Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
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Metalanguage
For you to demonstrate ULO(l), you will need to have an operational understanding
of the following principles below.
Please proceed immediately to the “Essential Knowledge” part since the first
lesson is also a definition of essential terms.
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Essential Knowledge
To perform the aforesaid big picture (unit learning outcomes) for the first three (3)
weeks of the course, you need to review essential principles in machine elements 2
necessaries that will be laid down in the succeeding pages. Please note that you are
not limited to exclusively refer to these resources. Thus, you are expected to utilize
other books, research articles, and other resources that are available in the university’s
library e.g., ebrary, search.proquest.com, etc.
The Product
In the marketing sense, the term “product” includes the tangible (or intangible) item
and its capacity to satisfy a specific need. When a customer buys a car, he is actually buying
the comfortable ride he anticipates deriving from the car. This is not to mention the
psychological benefits attached to the ownership of a car.
The services provided by the engineer manager will be evaluated by the client on the
basis of whether or not his or her exact needs are met. When a competitor comes into the
picture and sells the same type of service, the pressure to improve the quality of services
sold will be felt. When improvement is not possible, “extras” or “bonuses” are given to clients.
An example is the construction company that provides “free estimates” on whatever inquiries
on construction are received.
The Price
Price refers to “the money or other considerations exchanged for the purchase or use
of the product, idea, or service.” Some companies use price as a competitive tool or as a
means to convince the customer to buy. When products are similar in quality and other
characteristics, price will be a strong factor on whether or not a sale will be made. This does
not hold true, however, in the selling of services and ideas. This is because of the
uniqueness of every service rendered or every idea generated.
When a type of service becomes standardized, price can be a strong competitive tool.
When a construction firm, for instance, charges a flat 10 percent service fee for all of its
construction services, a competitor may charge a lower rate. Such action, however, will be
subject to whether or not the industry will allow such practice.
The Place
If every factor is equal, customers would prefer to buy from firms easily accessible to
them. If time is of the essence, the nearest firm will be patronized.
It is very important for companies to locate in places where they can be easily
reached by their customers. Not every place is the right location for any company.
When a company cannot be near the customers, it uses other means to eliminate or
minimize the effects of the problem. Some of these means are:
1. hiring sales agents to cover specific areas.
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Advertising. Nylen defines advertising as “a paid message that appears in the mass
media for the purpose of informing or persuading people about particular products, services,
beliefs, or action.” The mass media referred to include television, radio, magazines, and
newspapers. If the engineering manager wants to reach a large number of people, he may
use any of the mass media depending on his specific needs and his budget. Each of the
public advertising carriers, i.e., radio, television, magazines, and newspapers, has their own
specific audiences and careful analysis must be made if the engineering manager wants to
pick the right one.
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Publicity. The promotional tool that publishes news or information about a product,
service, or idea on behalf of a sponsor but is not paid for by the sponsor is called publicity.
The mass media is also the means used for publicity. If the engineer manager knows how
to use it, publicity is a very useful promotional tool. His message may be presented as a
news item, helpful information, or an announcement.
Personal Selling. A more aggressive means of promoting the sales of a product or
service is called personal selling. It refers to the “oral presentation in a conversation with
one or more prospective purchasers for the purpose of making a sale.”
Personal selling may be useful to the marketing efforts of the engineer manager. If,
for instance, he is the general manager of a firm manufacturing spare parts, he may assign
some employees to personally seek out spare-parts dealers and big trucking companies to
carry their product lines.
Sales Promotion. Any paid attempt to communicate with the customers other than
advertising, publicity, and personal selling, may be considered sales promotion. This
includes displays, contests, sweepstakes, coupons, trading stamps, prizes, samples,
demonstrations, referral gifts, etc.
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common needs and which will respond similarly to a marketing action. Figure 11.5 shows
an example of the various segments of a given market.
An analysis of the various segments of the chosen market will help the company
decide on whether to serve all or some of the segments. The segment or segments chosen
to become the target market.
In selecting a target market, the following steps are necessary:
1. Divide the total market into groups of people who have a relatively similar product or
service needs.
2. Determine the profit potentials of each segment.
3. Decide on which segment or segments will be served by the company.
As shown in Figure 11.5, a company may choose any or all of the residential,
industrial, and government segments. This decision will depend, however, on the profit
potentials of each segment and the capability of the firm.
A smaller company may find it most profitable to supply only the construction material
needs of the residential segment. A bigger company, however, may find it more profitable
to perform actual construction in addition to selling construction materials.
Factors Used in Selecting a Target Market. A target market must have the ability to
satisfy the profit objectives of the company. In selecting a target market, the following factors
must be taken into consideration:
1. the size of the market, and
2. the number of competitors serving the market.
The total demand for the product or service in a given area must be determined first
if the company wants to serve that particular market. If there are existing businesses serving
the market, the net demand must be considered. illustrates an example of the relationship
between demand and supply of a particular product.
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Self-Help: You can also refer to the sources below to help you further
understand the lesson:
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Let’s Check
Activity 1. Choose an engineering firm of your choice. You need to make sure that this
firm is with an existing marketing unit. Draw the organization chart of the firm showing
the marketing unit and its relationship with other units.
Let’s Analyze
2. How may the engineer manager meet the threat of a competitor’s product?
4. How may the engineer manager convince the buyer or client to patronize the firm?
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In a Nutshell
You have already known how essential to know about how engineering mangers manage
the marketing function of a company. Also, it tackles the different organizational units of a
company. This time, I will provide you my perspective, and you continue the remaining.
1. Part of the task of any company is to market their products and services that they can
offer to their customer.
2. The responsibility of an engineer manager is to convince customers to patronize their
products and services which is the proper managing of the marketing function.
Your Turn
3. __________________________________________________________________
________________________________________________________________
4. __________________________________________________________________
________________________________________________________________
5. __________________________________________________________________
________________________________________________________________
6. __________________________________________________________________
________________________________________________________________
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Q&A List
In this section, list down all emerging questions or issues. These questions may be raised
in the LMS or other modes. You can write the answers after clarification.
1.
2.
3.
4.
5.
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Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
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Metalanguage
For you to demonstrate ULO(m), you will need to have an operational
understanding of the following principles below.
1. Finance Function. The finance function is an important management
responsibility that deals with the procurement and administration of funds with the
view of achieving the objectives of business.
2. Financing Daily Operations. The day-to-day operations of the engineering firm
will require funds to take care of expenses as they come.
3. Cash sales. Cash is derived when the firm sells its products or services.
4. Collection of Accounts Receivables. Some engineering firms extend credit to
customers. When these are settled, cash is made available.
5. Loans and Credits. When other sources of financing are not enough, the firm
will have to resort to borrowing.
6. Sale of assets. Cash is sometimes obtained from the sale of the company’s
assets.
7. Ownership contribution. When cash is not enough, the firm may tap its owners
to provide more money.
8. Advances from customers. Sometimes, customers are required to pay cash
advances on orders made. This helps the firm in financing its production activities.
Please proceed immediately to the “Essential Knowledge” part since the first
lesson is also a definition of essential terms.
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Essential Knowledge
To perform the aforesaid big picture (unit learning outcomes) for the first three (3)
weeks of the course, you need to review essential principles in machine elements 2
necessaries that will be laid down in the succeeding pages. Please note that you are
not limited to exclusively refer to these resources. Thus, you are expected to utilize
other books, research articles, and other resources that are available in the university’s
library e.g., ebrary, search.proquest.com, etc.
2. rent
3. taxes
4. power and light
5. marketing expenses like those for advertising, entertainment, travel expenses,
telephone and telegraph, stationery and printing, postage, etc.
6. administrative expenses like those for auditing, legal, services, etc
Sources of Funds
To finance its various activities, the engineering firm will have to make use of its cash
inflows coming from various sources, namely:
1. Cash sales. Cash is derived when the firm sells its products or services.
2. Collection of Accounts Receivables. Some engineering firms extend credit to customers.
When these are settled, cash is made available.
3. Loans and Credits. When other sources of financing are not enough, the firm will have to
resort to borrowing.
4. Sale of assets. Cash is sometimes obtained from the sale of the company‘s assets.
5. Ownership contribution. When cash is not enough, the firm may tap its owners to provide
more money.
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6. Advances from customers. Sometimes, customers are required to pay cash advances on
orders made. This helps the firm in financing its production activities.
Advantages of Short-Term Credits. When the engineering firm avails of short-term credits,
the following advantages may be derived:
1. They are easier to obtain. Creditors maintain the view that the risk involved in
short-term lending is also short-term.
2. Short-term financing is often less costly. Since short-term financing is favored by
creditors, they make it available at less cost.
3. Short-term financing offers flexibility to the borrower. After the borrower has
settled his short-term debt, he may consider other means of financing, if he still
requires it. Long-term financing.
Trade creditors refer to suppliers extending credit to a buyer for use in manufacturing,
processing, or reselling goods for profit.
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3. income
4. control
5. timing
6. other factors like collateral values, flotation costs, speed, and exposure.
Flexibility
Some fund sources impose certain restrictions on the activities of the borrowers. An
example of a restriction is the prohibition on the issuance of additional debt instruments by
the borrower.
Risk
When applied to the determination of fund sources, risk refers to the chance that the
company will be affected adversely when a particular source of financing is chosen.
Income
The various sources of funds, when availed of, will have their individual effects in the
net income of the engineering firm. When the firm borrows, it must generate enough income
to cover the cost of borrowing and still be left with sufficient returns for the owners.
Control
When new owners are taken in because of the need for additional capital, the current
group of owners may lose control of the firm. If the current owners do not want this to happen,
they must consider other means of financing.
Timing
The financial market has its ups and downs. This means that there are times when
certain means financing provide better benefits than at other times. The engineer manager
must, therefore, choose the best time for borrowing or selling equity.
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Risk defined.
Risk refers to the uncertainty concerning loss or injury. The engineering firm is faced
with a long list of exposure to risks, some of which are as follows:
1. Fire
2. Theft
3. Floods
4. Accidents
5. Nonpayment of bills by customers (bad debts)
6. Disability and death
7. Damage claims from other parties.
Type of Risk
Risks may be classified as either pure or speculative. Pure risk is one in which “there
is only a chance of loss.” This means that there is no way of making gains with pure risks.
An example of pure risk is the exposure to loss of the company’s motor car due to theft.
Pure risks are insurable and may be covered by insurance.
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Self-Help: You can also refer to the sources below to help you further
understand the lesson:
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Let’s Check
Activity 1. Now that you know the most essential terms in the study about managing the
finance function. Let us try to check your understanding of these terms. In the space
provided, write the term/s being asked in the following statements:
Let’s Analyze!
1. Determination of fund requirements are? Describe each.
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In a Nutshell
In this chapter, simple yet proven analysis, procedures, and technologies have been
described to improve matrix or risk management. What are the methods of dealing with
risk? Describe each.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
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Telefax: (082)296-1084
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Q&A List
In this section, list down all emerging questions or issues. These questions may be raised
in the LMS or other modes. You can write the answers after clarification.
1.
2.
3.
4.
5.
175
College of Engineering Education
2nd Floor, BE Building
Matina Campus, Davao City
Telefax: (082)296-1084
Phone No.: (082)300-5456/300-0647 Local 131
Keywords Index
This section includes concepts (a word or phrase), ideas, theories, names of people, and
other vital terms to remember.
176
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Telefax: (082)296-1084
Phone No.: (082)300-5456/300-0647 Local 131
177
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Telefax: (082)296-1084
Phone No.: (082)300-5456/300-0647 Local 131
178
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Telefax: (082)296-1084
Phone No.: (082)300-5456/300-0647 Local 131
179
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Telefax: (082)296-1084
Phone No.: (082)300-5456/300-0647 Local 131
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____________________________
Name of Program Head
Approved by:
____________________________
Name of Dean
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