Engineering Management

2 Management Levels

 Management is normally classified into three levels: first-line, middle, and

top.
 Managers at these three levels need many of the same skills, but they use
them in different proportions.
 The higher the management level is, the further into the future a manager’s
decisions reach, and more resources placed at risk.
3 First-line managers
 First-line managers directly supervise nonmanagers.
 They hold titles such as foreman, supervisor, or section chief.
 Generally, they are responsible for carrying out the plans and objectives of
higher management, using the personnel and other resources assigned to
them.
 They make short-range operating plans governing what will be done
tomorrow or next week, assign tasks to their workers, supervise the work that
is done, and evaluate the performance of individual workers.
 First-line managers may only recently have been appointed from among
the ranks of people they are now supervising.
 They may feel caught in the middle between their former coworkers and
upper management, each of which feels the supervisor should be
representing them.
 Indeed, they must provide the linking pin between upper management
and the working level, representing the needs and goals of each to the
other.
4 First-line managers

 Many engineers who go into a production or construction environment

quickly find themselves assigned as a foreman or supervisor.
 The engineer may find such an assignment a satisfying chance to make
things happen through his or her own actions and decisions.
 Doing so effectively, while according the workers the courtesy and respect
merited by their years of experience, requires tact and judgment.
 If the engineer can achieve this balance, he or she may be surprised to find
that the team members are respectful in return and are helpful to the
engineer in learning his or her job.
5 Middle managers
 Middle managers carry titles such as plant manager, division head, chief
engineer, or operations manager.
 Although there are more first-line managers than any other in most
organizations, most of the levels in any large organization are those of
middle management.
 Even the lowest middle manager (the second-line manager, who directly
supervises first-line managers) is an indirect manager and has the
fundamentally different job of managing through other managers.
 Middle managers make plans of intermediate range to achieve the long-
range goals set by top management, establish departmental policies, and
evaluate the performance of subordinate work units and their managers.
 Middle managers also integrate and coordinate the short-range decisions
and activities of first-line supervisory groups to achieve the long-range goals
of the enterprise.
6 Middle managers

 A major management movement of the 1990s, driven by the need to

become more competitive, has been the drastic reduction in the number
of middle managers—often leading to the elimination of half the
management levels between supervisor and top manager.
 This has become possible in part because modern computer-based
management information systems bring decision-making information
directly to higher levels of management that previously had to be
summarized in turn by each level of middle management, and in part
because nonmanagers are now better educated and are often organized
into teams empowered to make some of the decisions previously reserved
for lower management.
7 Top managers

 Top managers bear titles such as chairman of the board, president, or

executive vice president; the top one of these will normally be designated
chief executive officer (CEO).
 In government, the top manager may be the administrator (of NASA,ISRO),
secretary (of state or commerce), governor, or mayor. While they may
report to some policymaking group (the board of directors, legislature, or
council), they have no full-time manager above them.
 Top managers are responsible for defining the character, mission, and
objectives of the enterprise. They must establish criteria for and review long-
range plans.
 They evaluate the performance of major departments, and evaluate
leading management personnel to gauge their readiness for promotion to
key executive positions.
8 Administration

 The administration is a systematic process of administering the

management of a business organization, an educational institution like
school or college, government office or any nonprofit organization.
 The main function of administration is the formation of plans, policies, and
procedures, setting up of goals and objectives, enforcing rules and
regulations, etc.
 Administration lays down the fundamental framework of an organization,
within which the management of the organization functions.
9 Difference between Management and
Administration
 Management is a systematic way of managing people and things within
the organization. The administration is defined as an act of administering
the whole organization by a group of people.
 Management is an activity of business and functional level, whereas
Administration is a high-level activity.
 While management focuses on policy implementation, policy formulation is
performed by the administration.
 Functions of administration include legislation and determination.
Conversely, functions of management are executive and governing.
 Administration takes all the important decisions of the organization while
management makes decisions under the boundaries set by the
administration.
10 Difference between Management and
Administration
 A group of persons, who are employees of the organization, is collectively
known as management. On the other hand, administration represents the
owners of the organization.
 Management can be seen in the profit making organization like business
enterprises. Conversely, the Administration is found in government and military
offices, clubs, hospitals, religious organizations and all the non-profit making
enterprises.
 Management is all about plans and actions, but the administration is
concerned with framing policies and setting objectives.
 Management plays an executive role in the organization. Unlike administration,
whose role is decisive in nature.
 The manager looks after the management of the organization, whereas
administrator is responsible for the administration of the organization.
 Management focuses on managing people and their work. On the other hand,
administration focuses on making the best possible utilization of the
organization’s resources.
11 Henri Fayol 14 Principles of
Management
 Henry Fayol, also known as the ‘father of modern management theory’
gave a new perception of the concept of management.
 He introduced a general theory that can be applied to all levels of
management and every department.
 The Fayol theory is practiced by the managers to organize and regulate
the internal activities of an organization. He concentrated on
accomplishing managerial efficiency.
12 Henri Fayol 14 Principles of
Management
 Division of work: Specialization allows the individual to build up experience, and
to continuously improve the skills, thereby he/she can be more productive.
 Authority: The right to issue commands, along with which must go the balanced
responsibility for its function.
 Discipline: Employees must obey, but this is two sided: employees will obey
orders if management play their part by providing good leadership.
 Unity of command: Each worker should have only ONE boss with no other
conflicting lines of command.
 Unity of direction: People engaged in the same kind of activites must have the
same objectives in a single plan. This is essential to ensure unity and
coordination in the enterprise. Unity of command does not exist without unity of
direction but does not necessarily flows from it.
13 Henri Fayol 14 Principles of
Management
 Subordination of individual interest: Management must see that the goals of the
firms are always paramount.
 Remuneration: Payment is an important motivator although by analysing a
number of possibilities, Fayol points out that there is no such thing as a perfect
system.
 Centralization: In any company, the management or any authority responsible
for the decision-making process should be neutral. However, this depends on
the size of an organization. Henri Fayol stressed on the point that there should
be a balance between the hierarchy and division of power.
 Scalar Chain (Line of Authority): Fayol on this principle highlights that the
hierarchy steps should be from the top to the lowest. This is necessary so that
every employee knows their immediate senior also they should be able to
contact any, if needed.
 Order: A company should maintain a well-defined work order to have a
favorable work culture. The positive atmosphere in the workplace will boost
more positive productivity.
14 Henri Fayol 14 Principles of
Management
 Equity: All employees should be treated equally and respectfully. It’s the
responsibility of a manager that no employees face discrimination.
 Stability: An employee delivers the best if they feel secure in their job. It is
the duty of the management to offer job security to their employees.
 Initiative: The management should support and encourage the employees
to take initiatives in an organization. It will help them to increase their
interest and make then worth.
 Esprit de Corps: It is the responsibility of the management to motivate their
employees and be supportive of each other regularly. Developing trust and
mutual understanding will lead to a positive outcome and work
environment.