Ultimate Cheatcode Engmanagement

Process of Management
Engineering Management
Module 1: Introduction to Engineering Management
Engineering
The profession in which a knowledge of the
mathematical and natural sciences gained by study,
experience, and practice is applied with judgment to
develop ways to utilize, economically, the materials and The 6’ms of Engineering Management (Basic
forces of nature for the benefit of mankind. (ABET) Resource)
Engineer: A person applying his/her mathematical and • Manpower • Money
science knowledge properly to solve practical problems.
• Machine • Materials
• Methodology • Market
Management
Fundamental Functions of Management
Is getting work done through others.
• Planning • Organizing
Requires a set of activities (including planning and
• Staffing • Directing
decision making, organizing, leading, and controlling)
• Controlling
directed at an organization’s resources (human,
financial, physical, and information), with the aim of PLAN FIRST
achieving organizational goals in an effective and • Planning as the first basic function
efficient manner. • Planning as a function of all managers
Management in all business and organizational activities • Planning for efficient organization
is the act of getting people together to accomplish Planning
desired goals and objectives using available resources • setting the objectives
efficiently and effectively.
• determining a course of action
By failing to prepare, you are preparing to failed –
What is Engineering Management? Benjamin Franklin
• Engineering management is a process of leading and Types of Planning
controlling a technical function/enterprise.
• Strategic Planning • Intermediate Planning
• Engineering management is similar to other definitions
• Operational Planning
of management, but with a slant toward technical issues
Organizing
• There are different types of Management Styles:
• Organizational structure
- Traditional Management
• Human resources
- Team Management
• Organizational Design
- Servant Management
• Social Networks
Traditional Management
• Culture
There is hierarchy of employees, low level management,
mid-level management, and senior management. In Staffing
traditional management systems, the manager sets out Filling and keeping filled with qualified people all
expectations for the employees who need to meet goals, positions in the business. Recruiting, hiring, training,
but the manager receives the reward of meeting those evaluating and compensating are the specific activities
goals. included in the function. In the family business, staffing
Team Management includes all paid and unpaid positions held by family
members including the owner/operators.
In a team management arrangement, the manager is a
guiding hand to help the members of the team work Directing/Leading
together to solve problems but doesn’t dictate policy and • Refers to the process of motivation, communication
the entire team receives the reward of meeting those and leadership
goals. • The purpose of directing is to channel the behavior of
Servant Management all personnel to accomplish the organization's mission
With this approach, the manager helps supply resources and objectives while simultaneously helping them.
the employees need to meet company goals. In servant • Leadership • Decision Making
leadership, the organization recognizes employees as • Communications • Group/Teams
experts in their field and work to help them work • Motivation
efficiently. Difference Between Boss and A Leader
No matter which type of management style is used by an

organization, the main objective of managers is to help
employees reach company goals and maintain company
standards and policies.
Controlling
• Set Standards
• Measure Performance
• Compare Performance
• Take Corrective Actions
Trends in Management
• Scrum and Agile Management Styles
• Scrum is defined as a feedback-driven empirical
approach that highlights transparency, inspection, and
adaptation. In terms of values, scrum discards traditional
hierarchy and promotes commitment, courage, focus,
openness, and respect in a team-oriented, objectives-
driven environment.
• Agile project management is an iterative approach to
delivering a project throughout its life cycle.
• Iterative or agile life cycles are composed of several
iterations or incremental steps towards the completion of
a project. Iterative approaches are frequently used in
software development projects to promote velocity and
adaptability since the benefit of iteration is that you can
adjust as you go along rather than following a linear
path. One of the aims of an agile or iterative approach is
to release benefits throughout the process rather than
only at the end. At the core, agile projects should exhibit
central values and behaviors of trust, flexibility,
empowerment and collaboration.
Engineering Management • The Political-legal Dimension: The government
Module 2: Decision-Making regulation of business and general relationship between
business and government.
• The International Dimension: The extent to which an
Decision Making
organization is involved in or affected by business in
The process of identifying and choosing alternatives
other countries.
course of action in a manner appropriate to demands of
The Task Environment
the situation
Competitor: competes for resources
Decision-making, according to Nickels and others,” is
the heart of all management function” Customer: whoever pays money to acquire an
organization’s products or services
The Decision-Making
Supplier: provides resources
1. Diagnose problem
Regulator: a unit that has the potential to control,
2. Diagnose environment
legislate, or otherwise influence the organization’s
3. Articulate problem or opportunity
policies and practices
4. Develop viable alternatives
Regulator Agency: an agency created by the
5. Evaluate government to regulate business activities
6. Make a choice Interest Group: a group formed to attempt to influence
7. Implement decision business
8. Evaluate and adapt decision result Strategic Ally: another organization working in a join
Diagnose Problem venture or a similar arrangement.
• Identify the problem Articulate Problem or Opportunity
• Problem exists when there is a difference between an A SWOT analysis might be part of this:
actual situation and desired situation. - strengths
• An expert once said “identification of the problem is - weaknesses
tantamount to having the problem half-solved.” - opportunities
Diagnose Environment - threats
Develop Viable Alternatives
1. Prepare a list of alternatives solution
2. Determining the viability of each solution
3. Revise the list by striking out those which are not
viable.
Evaluate Alternatives
• After determining the viable alternatives and revised
list has been made, evaluation of the remaining
alternatives is necessary.
• Souder suggest that “each alternative must be analyzed
and evaluated in terms of its value, cost and risk
characteristics.”
Make a choice
• Choice-making refers to the process of selecting among
alternatives representing potential solutions to a
External Environment problem.
Everything outside an organization that might affect it Implement Decision
• General Environment: The set of broad dimensions Implementation refers to carrying out the decision so
and forces in an organization’s surroundings that create that the objectives sought will be achieved.
its overall context Evaluate and Adapt Decision Results
• Task Environment: Specific organizations or groups • Feedback
that affect the organization. • Control
Internal Environment 2 Approaches in Decision-Making
The conditions and forces within an organization • Rational Approach
The General Environment • Organic Approach
• The Economic Dimension: The overall health of the
economic system in which the organization operates.
• The Technological Dimension: The methods available
for converting resources into products or services.
• The Sociocultural Dimension: The customs, mores,
values, and demographic characteristics of the society in
which the organization functions.
Principles of Taylor’s theory
Engineering Management • Rule of thumb should be replaced with science
Module 3: Evolution of Management Theory • There should be harmony, not discord ingroup actions.
• Cooperation, not individualism
Development of Management Thought • Maximum output, not restricted output
• Management thought refers to the theories that guide • Development of workers to their fullest capacity
management of people in the organizations Techniques of scientific management given by Taylor
• Initially, these theories developed out of practical • Time study
experience of managers in the industrial enterprises. • Motion study
Later on, they borrowed ideas from other fields of study
• Scientific task planning
like science, anthropology, sociology etc.
• Standardization and simplification
• Differential piece rate system
Management Theories
• Functional foremanship
Pre-scientific Theories
• High speed steel
Classical Theories
Evaluation of Taylor’s theory
• Taylor’s scientific management theory
• Better management through scientific methods
• Fayol’s administrative theory
• Discovered true capacity of workers
• Weber’s bureaucracy theory
• Scientific selection of workers
Behavioral Theories
• Mental revolution on the part of employers and
• Human relations theory
employees. In addition to Taylor, several other persons
• Behavioral science theory like Henry L Gantt, Harington Emerson, Frank Gilbreth
Modern Management Theories and Lillian Gilbreth also supported and contributed in
• Quantitative theory scientific management movement.
• Systems theory Limitations
• Contingency theory • Unrealistic assumptions
• Operational theory • Mechanistic approach
Pre-scientific Management Theories • Exploitation of labor
Important contributions are made by • Impracticable
• Charles Babbage • Narrow view
• James Montgomery Fayol’s Administrative theory
• Robert Owen • Fayol focused on managing the organization as a whole
• Andrew Ure rather than lower levels of organization only
• Charles Dupin • His theory revolves around
• Henry Robinson Towne - Activities of a business: Technical, commercial,
• James Watt and Mathew Robinson Boulton Watt financial, security, accounting and managerial
• Captain Henry Metcafe - Functions of a manager: Planning / organizing /
commanding /coordinating/ controlling.
These theories solved specific organizational problems
but these are not universally accepted theories that can - Abilities of managers: Physical, Mental, Moral,
be applied to all organizations General education, special knowledge and
Experience
Classical Theories
- Principles of management
• They represent early works on management and focus
on increasing industrial output by providing financial Principles of Management
incentives to employees. The classical approach was • Division of work
developed through three main streams: Scientific • Authority and responsibility
management, Administrative theory and Bureaucracy • Unity of command
Taylor’s Scientific Theory • Unity of direction
• Taylor developed his theory on the basis of his work • Discipline
experience in three companies: Midvale Steel works, • Subordination of individual interest to general interest
Simond Rolling mills and Bethlehem Steel company. He
• Remuneration
is regarded as Father of Scientific Management.
• Centralization
• He focused on finding the best way to do the job by
• Scaler chain
eliminating wastage of men and material. He developed
time and motion studies to find optimum time and nature • Order
of operations for successful completion of tasks. • Equity
• He also introduced differential wage rate system to pay • Stability of tenure of personnel
more to productive workers. • Initiative
• Espirit-de-corps
Evaluation of Fayol’s Theory • Hampers human creativity and innovativeness
• His principles are widely accepted in business and • Ignores the role of informal organizations
nonbusiness world. • Strict rules make the organizations procedure-oriented
• He pioneered in highlighting the principles of rather than goal-oriented
management • Written rules and regulations deny the benefits of open
Criticism communication
• Too formal • Views organizations as closed systems with little or no
• Vague interaction with the environment.
• Inconsistency Behavioral Theories
• Pro-management bias • These theories focus on organizational goals along with
• Historical value satisfaction of human needs.
Taylor and Fayol – A comparison • Shift in focus from workplace conditions to human side
of the organization
Basis of Taylor Fayol
• People- oriented approach substituted the production-
comparison
oriented approach
Aim To increase To increase
• Two important theories:
production at the overall production
shop level of the • Human relations theory
organization • Behavioral science theory
Focus On improving On improving Human Relations Theory
workers’ output overall • Elton Mayo, the father of Human relation approach
through work administration focuses on increasing organizational productivity by
simplification through general increasing the morale of workers
and principles
• Results were obtained through experiments:
standardization
• Test room studies
Management From bottom to From top to
View top bottom • Illumination experiment
• Relay assembly room experiment
Results Scientific Universal truths
observation and developed from • Interviewing studies
measurement personal • Observation studies
experiences Results of the experiment
Personality Scientist Practitioner • Informal groups are important complements to formal
Major Science of A systematic groups
Contribution industrial theory of • Social groups are more important than financial
management management incentives to motivate the workers
Perspective Narrow Wider • Worker is a social man rather than rational man
Aspects Micro aspect- Macro aspect- motivated by financial incentives
Studied management of management of • Work is considered as a group activity and not as
jobs total organization operations performed by individuals.
Max Weber’s Bureaucracy Theory • Social and psychological factors influence employee
Max Weber (1864-1920), a German sociologist behavior and productivity more than physical work
introduced the rational-legal authority system/model to conditions
manage the business organizations. His model is Evaluation of the Theory
characterized by • Focus on organizational efficiency through satisfaction
- Division of work of social and psychological needs of the workers
- Rules and regulations • Participative management is better than authoritarian
- Hierarchy of authority management.
- Technical competence • Design of the theory: social needs are secondary to
- Record keeping physiological needs
- Impersonal relations • Analysis of the theory: group dynamics may not be as
important as emphasized upon.
Evaluation of Weber’s Theory
• Interpretation of the theory: cordial relations are over
• Advantages of specialization
emphasized. Conflict of opinion also generates new
• Rationality leads to efficiency ideas.
• Leads to optimum utilization of resources • Human relations philosophy: informal relations are as
• Depersonalization leads to equal treatment of all the important as formal motivation, communication and
workers leadership styles
• Facilitates growth of large-scale organizations Behavioral Science Theory
Limitations • It applies scientific vision to human relations theory
• Ignores the sentiments of human beings
• Concepts from Psychology, Sociology and - Management science: it uses mathematical models
Anthropology are applied to study human behavior like PERT, CPM, Simulation etc. to solve business
• Psychology – Study of individual behavior problems.
• Sociology – Study of human behavior in groups - Operations management: It applies quantitative
• Anthropology - Study of human behavior as techniques of inventory management, statistical
individuals and members of groups quality control etc. to manage the production and
delivery of goods and services
• Concepts from various disciplines are tested before
applying them in business organizations. - Management information system: It uses computer-
based information to make business decisions
• Several sociologists and psychologists like Abraham
Maslow, Federick Herzberg, MC Gregor, Douglas, Evaluation of Quantitative Theory
Rensis Likert, Kurt Lewin, Keith Davis, Charles Angris, • It uses quantifiable data to frame mathematical models
George Homans and others have made significant and handles complex decision- making problems
contribution to the development of this approach. • It uses comprehensive information through computers
• This approach is an extension and improvement of which could not otherwise have been available
human relations movement. As this approach suggested Limitations
that individuals differ in their attitudes, perceptions, their • It cannot be applied to study human behavior as it
needs and goals also differ from organization’s needs cannot be predicted through mathematical equations
and goals. So, the need is to achieve fusion between
• The models may be used more for analyzing the results
organization’s goals and human needs.
than used for making decisions
Human relations theory and Behavioral science
• All the variables affecting the business decisions
theory – Comparison
cannot be quantified in numeric terms
Human Relations Behavioral Approach • It may land up making satisfying decisions rather than
Focus on individual Focus on groups and optimum decisions because of constraints of time and
behavior and needs group behavior cost to collect the relevant data.
Emphasizes on Emphasizes on group Systems Approach
interpersonal relationships • As per this approach organization is viewed from a
relationships systems point of view.
Views worker as ‘social Views worker as ‘self- • The main elements of systems approach are as follows:
man’ actualizing man’ • Organization as a purposeful system consisting of
Always view group Views group conflict as a several interconnected and interdependent parts.
conflict as a negative source of new ideas and • The parts or components of a system are called
force innovations sub- systems.
Views organization as Views organization as a • The position and function of each subsystem can
social system socio-technical system be analyzed and understood only in relation to the
Emphasis on motivation, Emphasis on group other sub-systems and to the organization as a
morale, and job dynamics and informal whole.
satisfaction organization structure • Synergy effect.
Narrow scope as based on Wide scope as based on • Every system has a boundary that separates it from
Howthrone experiment Human relations its environment.
movement
• Feedback is useful in evaluating and improving the
Modern Management Theories functioning of the system.
• These theories are responsive to environment changes
• They view organizations as dynamic open systems
having multiple objectives
• Management is multi-disciplinary and draws
knowledge from various fields to solve complex
business problems
• They forecast environment changes through scientific
techniques and discount them to the present business
situations
• These theories include:
• Quantitative theory
• Systems theory
• Contingency theory
• Operational theory
Quantitative theory
• It uses the services of quantitative specialists to apply
interdisciplinary techniques to solve business problems
• It includes:
- also known as supervisory / operative level of
Engineering Management management. It consists of supervisors, foreman, section
officers, superintendent etc.
Module 4: Planning
Strategic Plan (Top Management)
Strategic planning lays out the long-term, broad goals
Some important planning terms, from most general to
that a business or individual wants to achieve. Strategic
most specific, are:
plan provides the general idea of how to reach a goal.
- Vision: Nonspecific directional and motivational
Tactical Plan (Middle Management)
guidance for the entire organization. Top managers
normally provide a vision for the business. It is the most Tactical plan outlines the short-term steps and actions
emotional of the four. that should be taken to achieve the goals described in the
strategic plan.
- Mission: An organization’s reason for being. It is
concerned with scope of the business and what Operational Plan (Lower Management)
distinguishes this business form similar businesses. Operational Plan DOES present highly detailed
Mission reflects the culture and values of top information specifically to direct people to perform the
management. day-to-day tasks required in the running the
- Objectives: Ideas that refine the mission and address organization.
key issues within the organization such as market Planning Process
standing, innovation, productivity, physical and financial Setting Goals
resources, profitability, management, and worker -Provide a sense of direction
performance and efficiency. They are expected to be -Goals may be defined as “the precise statement of
general, observable, challenging, and untimed. results sought, quantified in time and magnitude, where
- Goals: Specific statements of anticipated results that possible”
further define the organization’s objectives. They are Developing Strategies/Tactics
expected to be SMART: Specific, Measurable,
-Ways to realize said goals
Attainable, Rewarding, and Timed.
-Strategy may be defined as “a course of action aimed at
- Tactics: Who, what, when, where and how activities
ensuring the organization will achieve its objectives”
will take place to accomplish a goal.
-Tactic is a short-term action taken by the management
to adjust negative internal or external influences
What is Planning?
Determining Resources Needed
The process of stating objectives and then determining
-To satisfy strategic requirements, a general statement of
the most effective activities or accomplishments
needed resources will suffice.
necessary to reach/achieve stated objectives
Setting Standards
Nature of Planning
-Standard may be defined as “a quantitative or
Contribution to Objectives
qualitative measuring device designed to help monitor
• Planning is goal oriented the performances of people, capital goods or process”
• It is a primary function Types of Plans
• It is a mental activity •Functional Areas
• It is forward looking •Time Horizon
• It is flexible •Frequency of Use
Primacy Among the Managers Task Functional Area Plans
• It involves choice Marketing Plan - business document outlining your
Pervasiveness marketing strategy and tactics.
• It is persuasive Production Plan - written document that states the
• It is an integrated process quantity of output the company must produce while
Efficiency of Resulting Plans maximizing the company’s resources.
• It is a continuous process Financial Plan- it summarizes the current financial
• It includes effective and efficient dimensions situation of the firm, analyzes financial needs and
recommends a direction for financial activities.
Levels of Management
Human Resource Management Plan - it indicates the
Refers to a line of demarcation between various
human resource needs of a company, detailed in terms of
managerial positions
quality and quantity and based on the company’s
Determines a chain of command, the amount of
strategic plans.
authority and status enjoyed by any managerial position
Contents of a Marketing Plan
Top Level of Management
The structure and content of a marketing plan vary
-board of directors, chief executive or managing director.
depending on the organizations that are adapting them.
Middle Level of Management
1. Executive Summary
- branch managers and departmental managers constitute
2. Table of Contents
middle level
3. Situational Analysis and Target Market
Lower Level of Management
4. Marketing Objectives and Goals Marketing Strategy
5. Marketing Strategies SWOT Analysis
6. Marketing Tactics - SWOT analysis is a strategic planning technique that
7. Schedules and Budgets provides assessment tools.
8. Financial Data and Control - The system combines information from the
Contents of a Production Plan environmental analysis and separates it into two
components: internal issues (strengths and weaknesses)
1. The amount of capacity a company must have
and external issues (opportunities and threats).
2. How many employees are required
Strengths: characteristics of a business which give it
3. How much material must be purchased
advantages over its competitors
Contents of a Financial Plan
Weaknesses: characteristics of a business which make it
1. An analysis of the firm’s current financial condition disadvantageous relative to competitors
2. Sales Forecast Opportunities: elements in a company’s external
3. Capital Budget environment that allow it to formulate and implement
4. Cash Budget strategies to increase profitability
5. A set of projected financial statements Threats: elements in the external environment that
6. The external financing plan could environment that could endanger the integrity and
Contents of a Human Resources Plan profitability of the business
1. Personnel requirements of the company Advantages of SWOT Analysis
2. Plans for recruitment and selection - Helps in identifying core competencies of the firm or
company.
3. Training plan
- It helps in building objectives for strategic planning.
4. Retirement plan
- It provides information that helps in synchronizing the
Plans with Time Horizon
firm’s resources and capabilities with the competitive
Short-Range Plans - plans which are intended to cover a environment in which the firm operates.
period of less than a year.
Limitations of SWOT Analysis
Long-Range Plans - plans which cover a time period of
- It may cause organizations to view circumstances as
more than a year.
very simple because of which the organizations might
Plans According to Frequency of Use overlook certain key strategic contact which may occur.
Standing Plans - plans which are used repeatedly - Categorizing aspects as strengths, weaknesses,
Single-Use Plans - plans that are developed to opportunities and threats might be very subjective as
implement courses of action which are relatively unique there is great degree of uncertainty in market.
and unlikely to be repeated SWOT Analysis of McDonalds
Standing Plans Strengths:
1. Policies – broad guidelines to aid managers at every 1. Successful Advertisement & Brand name
level in making decisions about recurring situations or 2. Collaboration with Coke
function. 3. Clean Environment & Play Space for Kids
2. Procedures – plans that give the exact series of actions 4. Professional Training for Employees
to be taken at a given situation. 5. Competitive Price
3. Rules – statements that either require or forbid a Weaknesses:
certain action. 1. Weak Product Development
Single-Use Plans 2. Management of Franchisee/Joint Venture
1. Budgets – a plan which sets forth projected Opportunities
expenditures for an activity and explains where the 1. Internationalization (Serving Only 1% of
required funds will come from. Population)
2. Program – single-use plan designed to coordinate a 2. Growing Dining out Market
large set of activities. Threats
3. Project – a plan which is usually more limited in 1. More Health-Conscious Customer
scope than a program and is usually prepared to support 2. Threat from local Competitor in different
a program. Countries
Parts of the Strategic Plan 3. Global economic recession
1. Company or Corporate Mission – refers to the 4. Playing in a mature and saturated Industry
strategic statement that identifies why an organization Assessment based from SWOT Analysis:
exists, its philosophy of management, and its purpose as I. Market Development Strategies
distinguished from other similar organizations in terms
- Explore new overseas market by intensive promotion.
of products, services, and market.
- Constantly reinforce brand recognition by emotional
2. Objectives or Goals
attachment strategy.
3. Strategies
II. Market Penetration Strategies
- Advertising and promotion collaboration with big - PEST analysis requires expertise and experience from
brands such as Coca-Cola to attract more consumers. the people involved in the study plus extensive research
- Setting prices according to different countries. and knowledge for the results to be accurate.
III. Product Development Strategies - PEST analysis is based on assumptions and predictions
- Switch to healthier product lines of coke (e.g. diet because it is not possible to collect all the necessary data
coke, minute maid) and analyze it and make decisions based on it.
- Change the menu in different countries and add some PEST Analysis of Airbus
food with local flavor. Political:
- Develop new product lines which focuses on organic 1. Adverse impact of Brexit due to uncertainty
and healthier food. 2. Heightened global security threats
PEST Analysis 3. Impact of US exit from Iran nuclear deal
- This tool helps you understand the "big picture" forces Economical:
of change that your business or company is exposed to, 1. Currency fluctuations
and, from this, take advantage of the opportunities that 2. Increase in air travel demand due to economic
they present. growth
- There will always be factors outside of your control Social:
affecting how your business operates. One method for 1. Shortage of skilled technology labor in
discovering and quantifying those factors is the PEST developed markets
analysis. 2. Far reaching corporate social responsibility
Political Factor – measures the degree of political initiatives
stability and government intervention in economy. Technological:
Economic Factor – economic policies and factors have 1. Digitalization of services for expansion
a great impact on businesses and their expansion 2. Technological innovation in space segment
Social Factor – Social factors have a great impact on the Porter’s Five Forces Model
buying patterns a behavior of a nation which determinant
for businesses
Technological Factor – includes factors like level of
R&D, automation, innovation and other related factors
PEST Analysis
Political
- The Political aspect of PEST Analysis focuses on the
areas in which government policy and/or changes in
legislation affect the economy, the specific industry, and
the organization in question.
Economic
- The Economic portion of the analysis targets the key
factors of interest and exchange rates, economic growth,
supply and demand, inflation and recession. - This model is a tool for analyzing competition for the
Social business. It is framed in a way to identify and analyze
- The Social factors that may be included in a PEST five competitive forces.
Analysis are demographics and age distribution, cultural - Used for understanding the competitiveness of the
attitudes, and workplace and lifestyle trends. business environment.
Technological 1. Competition in the Industry - This force refers to the
- The Technological component considers the specific number of competitors and their ability to undercut a
role and development of technologies within the sector company.
and organization, as well as the wider uses, trends and 2. Threats of New Entrants - The less time and money it
changes in technology. Government spending on costs for a competitor to enter a company's market and
technological research may also be a point of interest in be an effective competitor, the more a company's
this area. position may be significantly weakened.
Advantages of PEST Analysis 3. Power of Suppliers - This force addresses how easily
- Helps to spot business opportunities and gives suppliers can drive up the cost of inputs. It is affected by
advanced warning of significant threats. the number of suppliers of key inputs of a good or
service, how unique these inputs are, and how much it
- It reveals the direction of change within your business
would cost a company to switch from one supplier to
environment.
another.
- It helps you avoid starting projects that are likely to
4. Power of Customers - This specifically deals with the
fail, for reasons beyond your control.
ability that customers have to drive prices down.
Limitations of PEST Analysis
5. Threat of Substitutes - Substitute goods or services
- External factors change over time and need constant that can be used in place of a company's products or
attention and reviewing. services pose a threat.
Advantages of Porter’s Five Forces Model
- It can be used to make decisions such as to enter a
market or not, how to price a product, what are the
important routes to market or supply partnerships, and
who are the future likely competitors.
Limitations of PFFM
- Five Forces model should be used at the broader level
of an entire industry; it is not designed to be used at a
smaller group or market level.
- Porters model is inherently static, representing only
aspects of the present day
Porter’s Five Forces Model on Apple
Competition in the Industry: Apple is in direct
competition with companies such as Google, Inc., the
HewlettPackard Company, Samsung Electronics Co.,
Ltd. and Amazon, Inc. All of these companies expend
significant capital on research and development (R&D)
and marketing, just like Apple.
Power of Customers: The element of low switching
cost referred to above strengthens the bargaining power
of buyers as a key force for Apple to consider.
Threat of New Entrants: The threat of a new entrant to
the marketplace that could seriously threaten Apple's
market share is relatively low. This is primarily due to
two factors: the extremely high cost of establishing a
company within the industry and the additional high cost
of establishing brand name recognition.
Power of Suppliers: The bargaining power of suppliers
is a relatively weak force in the marketplace for Apple's
products. The bargaining position of suppliers is
weakened by the high number of potential suppliers for
Apple and the ample amount of supply.
Threat of Substitutes: This market force is relatively
low for Apple due to the fact that most potential
substitute products have limited capabilities compared to
Apple's products.
Making Plans Effective
(Strategy Formulation)
Planning may be successful if the following are
observed:
1. Recognize the PLANNING BARRIERS. The
planning barriers, according to Plunkett and Attner are
the following:
a. Manager’s inability to plan
b. Improper planning process
c. Lack of commitment to the planning process
d. Improper information
e. Focusing on the present at the expense of the future
f. Too much reliance on the planning department
g. Concentrating only on the controllable variables.
2. Use of aids to planning.
a. Gather as much information as possible
b. Develop multiple sources of information
c. Involve others in the planning process
Engineering Management Disadvantages
Module 5: Organizing Technical Activities • Communication and coordination between the
departments are often poor.
What is Organizing? • Decisions involving more than one department are
often delayed.
• The structuring of resources and activities to
accomplish objectives in an efficient and effective • Difficult to identify which group is responsible for
manner certain problem.
• The arrangement or relationship of positions within an • Limited organizational goals
organization is called structure • Limited general management training.
The Purpose of the Structure Product or Market Organization
The purpose of the structure defines the following: • Appropriate for a large corporation with many product
• The relationships between tasks and authority; lines in several related industries
• formal reporting relationships; Advantages
• groupings of individuals into departments and • Flexible and responsive to change
departments into organization; and • Provides high concern for customer’s needs.
• the system • Provides excellent coordination across functional
Concerns of the Engineer Manager departments.
• Division of labor • Easy pinpointing of responsibility for product
problems.
• Delegation of authority
• Emphasis on overall product and division goals.
• Departmentation
• The opportunity for the development of general
• Span control
management skills is provided.
• Coordination
Disadvantages
Formal Organization
• High possibility of duplication or resources.
• The structure that details lines of responsibilities,
• Less technical depth and specialization in divisions.
authority and position
• Less top management control
•Organizational chart
• Competition for corporate resources
•Organizational manual
Matrix Organization
• Policy manuals
•Is a structure with two or more channels of command,
Informal Organization
two lines of budget authority, and two sources of
• Members of an organization who spontaneously form a
performance and reward.
group of friendship as a principal reason for belonging
Advantages
•Vulnerable to expediency, manipulation and
• More efficient use of resources than the divisional
opportunism
structure.
Types of Organizational Structure
• Flexibility and adaptability to changing environment.
1. Functional Organization
• The development of both general and functional
2. Product or Market Organization
management are present
3. Matrix Organization
• There is interdisciplinary cooperation and any expertise
Reasons or Factors for Joining a group is available to all divisions.
A Typical Functional Organization chart of a • There are enlarged task for employees which motivate
Construction Company them better
President Disadvantages
Vice President Marketing • Frustration and confusion from dual chain of
Vice President Construction command.
Vice President Finance • High conflict between divisional and functional
Vice President Human Resources interest.
Functional Organization • More meetings and discussions than action.
Advantages • There is need for human relations training for key
• Permits economy employees and managers.
• Decision making is centralized • There is a tendency for power dominance by one side
• Communication and coordination between employees of the matrix.
are excellent Types of Authority
• Promotes high quality technical problem solving Line authority
• The organization is provided with in depth skill • A manager’s right to tell subordinates what to do and
specialization and development. then see that they do it.
• Employees are provided with career progress within Staff Authority
functional departments. • A staff specialist’s right to give advice to a superior
Functional authority
• A specialist’s right to oversee lower-level personnel
involved in that specialty
The Purpose of Committees
•A committee is usually formed to provide the necessary
line-up of expertise needed to achieve certain objectives.
Types of Committee
•Ad Hoc Committee
• Standing Committee
Engineering Management • The purpose of selection is to evaluate each candidate
Module 6: Staffing and to pick the most suited for the position available
Induction and Orientation
Staffing • In Induction, the new employee is provided with the
necessary information about the company.
• Function that determines human resource needs,
recruits, selects, trains and develops human resources for • In orientation, the new employee is introduced to the
jobs created by the company. immediate working environment and co-workers
• Engineering managers are responsible to assure that the Training and Development
chosen person is fit for the job • Training refers to the learning that is provided in order
Staffing Procedure to improve performance on the present job
• Human resource planning • Training programs consist of two general types
• Recruitment 1. Training programs for nonmanagers
• Selection 2. Training and educational programs for executives
• Induction and orientation Training Program for Nonmanagers
• Training and development • Directed to nonmanagers for specific increases in skill
and knowledge to perform a particular job.
• Employment decisions
• Four methods under this type:
• Separation
1. On the job training
Human Resource Planning
2. Vestibule school
• Systematic deployment of human resources at various
levels 3. Apprenticeship program
Three activities of Human Resource planning 4. Special courses
• Forecasting – assessment of future human resource Training Programs for Managers
needs in relation to the current capabilities of the • The training needs of managers may be classified into
organization four areas:
• Programming – translating the forecasted human 1. Decision-making skills
resource needs to personnel objectives and goals 2. Interpersonal skills
• Evaluation and Control – monitoring HR action 3. Job knowledge
plans and evaluating the success. 4. Organizational knowledge
Methods in Forecasting Performance Appraisal
Time series method Purposes of Performance Appraisal
-using historical data to develop forecast for the • To Influence, in a positive manner, employee
future performance and development.
Explanatory/Casual • To determine merit, pay increases.
-identifying major variables that caused past • To plan to future performance goals
conditions • To determine training and development needs
Monitoring • To assess promotional employees
-provide early warning signals of significant changes Methods of Appraising Performance
in the established patterns and relationship so that the
• Rating scale method
engineering manager can assess and make a plan.
• Essay method
Major Types of Explanatory method
• Management by objectives method
• Regression
• Assessment center method
• Econometric models
• Checklist Method
• Leading indicators
• Work standards method
Recruitment
• Ranking Method
• Attracting qualified persons to apply for vacant
• Critical incident method
positions so that the best suited to serve may be selected
Employment Decisions
Sources of applicants
After evaluating the performance of employees, the
• Current employees
management will now be ready to make employment
• Newspaper advertising
decisions
• Schools
• Monetary Rewards
• Referrals from employees
• Promotion
• Recruitment firms
• Transfer
• Competitors
• Demotion
Selection
Separation
• Act of choosing from those that are available the
Define as voluntary or involuntary termination of
individuals most likely to succeed on the job.
employee.
• Voluntary
If presence of a defect in the organization is determined,
corrective action is necessary.
• Involuntary
This is usually made after training efforts fail to produce
positive results.
Module 1
selection is the act of getting people together to accomplish desired

Which of the following is a part of the function of management?
goals and objectives using available resources efficiently and
planning
effectively. false
Which of the following is part of the 6m of engineering which of the following is a part of the function of management?
management? machine directing
which of the following is a part of controlling? Taking corrective

actions Plannings purpose is to channel the behavioral of all personnel to
accomplish the organization mission and objectives while
simultaneously helping them. false
which of the following is part of the 6m of engineering

management? Manpower
there's no difference from being a boss and a leader – No, there’s a
difference
He said that “ by falling to prepare – Benjamin franklin
staffing refers to the process of motivation communication and

leadership. false
which of the following is a strength for modern engineering which of the following is a strength for modern engineering
managers stated in the presentation? responsibility managers stated in the presentation? decision making
which of the following is one of the ten attributes of a good

engineer manager? advocate for change to seek positive in phone which of the following is one of the ten attributes of good engineer
constant manner manager? emotional intelligence
which of the following is one of the ten attributes of good engineer which of the following is a part of an internal environment?
manager? ability to work with departments outside of engineering owners
which of the following is one of the ten attributes of good engineer which is a part of decision making process? diagnosing
manager? ability to establish trust environment
which of the following is one of the ten attributes of good engineer

in general environment the government regulation of business and
manager? Cohesion with company culture
general relationship between business and government. political
legal dimension
which is a part of decision making process? implementing a which of the following is a part of a task environment? strategic
decision partners
which of the following is a part of a task environment? customers

in a general environment the extent to which an organization is
involved in or affected by business in other countries. international
dimension
which of the following is a part of the swot analysis? strengths
the set of broad dimension and forces in an organizations

surroundings that create its overall context. general environment
which of the following is an approach in decision making? organic

approach
in diagnosing a problem one must identify the problem? true
which of the following is a part of developing viable alternatives?

preparing a list alternative solution
which of the following is a part of a task environment? suppliers

which of the following is a part of controlling? comparing
performance
which of the following is a part of the swot analysis? threats
which of the following is a part of the functions of management?

staffing
Which of the following is a part of the swot analysis? weaknesses
which of the following is a type of planning? strategic planning
Which of the following is a part of the swot analysis? opportunities
it is frequently used in software development projects- iterative
which of the following is a part of 6m of engineering management?

money
which of the following is a strength for modern engineering

managers stated in the presentation? Leadership
a process of leading and controlling a technical function/

enterprise. engineering management
which of the following is one of the ten attributes of a good which of the following is a strength for modern engineering
engineer manager? ability to manage the teams motivation managers stated in the presentation? attention to detail
which of the following is a part of a task environment? competitors

engineer manager? ability to manage conflict
which is a part of decision making process? diagnosing the problem

engineer manager? technical literacy
which is a part of decision making process? Evaluating a situation
which of the following is a strength for modern engineering

managers stated in the presentation? Communication
everything outside an organization the might affect it. External

environment
in the task environment these are those who competes for is weaknesses part of the swot analysis? yes
resources. competitors
is strength part of the swot analysis? yes
which is a part of decision making process? developing viable

alternatives
is opportunities part of the swot analysis? yes
the process of identifying and choosing alternative course of action

in a manner appropriate to demands of the situation. decision
making
is threats part of the swot analysis. yes
which of the following is a part of developing viable alternatives?

determining the viability of each solution
Module 2
which of the following has an important theory in pre scientific

management theory? charles babbage
management theory? james watt
which of the following is a part of a behavioral theory? behavioral

science theory
Which of the following is a technique of scientific management
given by taylor. functional foremanship
which of the following is a part of management theory?

contingency theory

management theory? charles dupin

management theory? henry towne
which of the following is a part of management theory?
operational theory
which of the following has an important theory in pre scientific which of the following is a characteristic of max weber's
management theory? robert owen bureaucracy theory? technical competence
which of the following is an evaluation of human relations theory? which of the following contributed in the behavioral science
design of the theory social needs are secondary to physiological theory? rensis likert
needs
which of the following is an evaluation of weber's theory?

which of the following is an evaluation of weber's theory ignores the sentiments of human beings
facilities growth of large-scale organizations limitations
study of human behavior as individuals and members of groups.

Anthropology
witch of the following is an evaluation of weber's theory?
strict rules make the organizations procedure oriented rather than

goal oriented
who among the following are members of lower level management?
ignores the role of informal organizations superintendent
which of the following is a type of a functional area plan? human

resource management plan
which of the following contributed in the behavioral science

theory? george homans
who among the following are members of a top level management?

chief executives
which of the following is a result of human relations theory?
social and physiological factors influence employee behavior and

productivity more than physical work condition
the process of stating objectives and then determining the most

effective activities or accomplishment necessary to reach/ achieve
stated objectives. Planning
managing director
board of directors which of the following is an advantage of swot analysis? it provides
information that helps in synchronizing the firm's resources and
capabilities with the competitive environment in which the firm
operates
which of the following is a part of the planning process?

determining resources needed
which of the following is a factor of pest analysis? economic factor
which of the following is a type of plan? functional area
an assessment based from swot analysis which constantly

reinforces brand recognition by emotional attachment strategy.
market development strategies
which of the following is a type of functional area plan? production

plan
a factor in pest analysis which targets the key factors of interest

and exchange rates economic growth supply and demand inflation
and recession. economic
an assessment based from swot analysis which explores new
overseas market by intensive promotion. market development a factor in pest which considers the specific role and development
strategies of technologies within the sector and organization - technological
which of the following is a part of swot analysis? threats

characteristic of the business which make it disadvantageous
relative to competitors. threats
is the statement a limitation of pest analysis? external factors

changed over time and need constant attention and reviewing. yes

management theory? henry metface
elements in the external environment that could endanger the

integrity and profitability of the business. weaknesses
which of the following is not a part of modern management theory?

lithium theory
which of the following is a part of a classical during? weber's
bureaucracy theory
which of the following is a part of management theory? systems
theory
which of the following is a characteristic of max weber's

the classical approach was developed through three main streams
bureaucracy theory? division of work
scientific management administrative theory and bureaucracy.
classical
which of the following is a technique of scientific management

given by taylor. time study
advantages of specialization
which of the following contributed in the behavioral science theory?
which of the following contributed in the behavioral science keith davies
theory? charles angris
which of the following contributed in the behavioral science

theory? abraham maslow
which of the following is an evaluation of weber's theory? views

organization as closed systems with little or no interaction with
the environment
which of the following is a type of plan? time horizon
which of the following is a result of human relations theory? social

and physiological factors influence
who among the following are members of middle level of
management? branch managers which of the following is a limitation of swot analysis? categorizing
aspect as strength weaknesses
which of the following is a factor of pest analysis? technological

factor
which of the following is a type of a functional area plan? financial
plan
which of the following is not a part of swot analysis?
rendered hours
on the pest analysis discussed for an airbus the statement: impact

of us exit from iran nuclear deal. can be classified as: political
which of the following is a part of swot analysis? strength
On the pest analysis discussed for an airbus the statement: far

reaching corporate social responsibility initiatives can be classified
as: social
which of the following is a part of swot analysis? weaknesses
which of the following is a factor of pest analysis? social factor
Characteristics of a business which give it advantages over its

competitors. strength
Staffing
MODULE VI
STAFFING
• Understand the meaning, significance and nature of staffing as a function of
management;
• Categorize staffing into different kinds;
• Know the staffing process;
• Describe the different stages in the staffing process;
• Develop procedures for effective strategic staffing
Staffing
• Function that determines human resource needs, recruits, selects, trains
and develops human resources for jobs created by the company.
• Engineering managers are responsible to assure that the chosen person
is fit for the job
Staffing Procedure
• Human resource planning
• Recruitment
• Selection
• Induction and orientation
• Training and development
• Employment decisions
• Separation
Human Resource Planning
• Systematic deployment of human resources at various levels
Three activities of Human Resource planning

• Forecasting – assessment of future human resource needs in relation to the
current capabilities of the organization
• Programming – translating the forecasted human resource needs to personnel
objectives and goals
• Evaluation and Control – monitoring HR action plans and evaluating the
success.
• Methods in Forecasting
Time series method
-using historical data to develop forecast for the future
Explanatory/Casual
-identifying major variables that caused past conditions
Monitoring
-provide early warning signals of significant changes in
the established patterns and relationship so that the engineering
manager can assess and make a plan.
Major Types of Explanatory method
• Regression
• Econometric models
• Leading indicators
Recruitment
• Attracting qualified persons to apply for vacant positions so that the
best suited to serve may be selected
Sources of applicants
• Current employees
• Newspaper advertising
• Schools
• Referrals from employees
• Recruitment firms
• Competitors
Selection
• Act of choosing from those that are available the individuals most likely
to succeed on the job.
• The purpose of selection is to evaluate each candidate and to pick the
most suited for the position available
Induction and Orientation
• In Induction, the new employee is provided with the necessary
information about the company.
• In orientation, the new employee is introduced to the immediate
working environment and co-workers
Training and Development
• Training refers to the learning that is provided in order to improve
performance on the present job
• Training programs consist of two general types
1. Training programs for nonmanagers
2. Training and educational programs for executives
Training Program for Nonmanagers
• Directed to nonmanagers for specific increases in skill and knowledge to
perform a particular job.
• Four methods under this type:
1. On the job training
2. Vestibule school
3. Apprenticeship program
4. Special courses
Training Programs for Managers
• The training needs of managers may be classified into four areas:
1. Decision-making skills
2. Interpersonal skills
3. Job knowledge
4. Organizational knowledge
Performance Appraisal
Purposes of Performance Appraisal
• To Influence, in a positive manner, employee performance and
development.
• To determine merit pay increases.
• To plan to future performance goals
• To determine training and development needs
• To assess promotional employees
Methods of Appraising Performance
• Rating scale method
• Essay method
• Management by objectives method
• Assessment center method
• Checklist Method
• Work standards method
• Ranking Method
• Critical incident method
Employment Decisions
After evaluating the performance of employees, the management will
now be ready to make employment decisions
• Monetary Rewards
• Promotion
• Transfer
• Demotion
Separation
Define as voluntary or involuntary termination of employee.
• Voluntary
If presence of a defect in the organization is determined,
corrective action is necessary.
• Involuntary
This is usually made after training efforts fail to produce
positive results.
END.
All rights belong to its respective owners.
Activity
The activity will be posted thru

Announcements.
REFERENCES
• https://www.betterteam.com/
• https://www.cprime.com/
• https://www.americasjobexchange.com/engineering-manager-job-description
• https://devops.com/how-to-become-a-great-engineering-manager/
• https://onlinemasters.ohio.edu/blog/6-strengths-for-modern-engineering-managers/
• https://www.iedunote.com/
• https://ugcportal.com/raman-files/Developement-of-Management-Thoughts.pdf
• https://www.investopedia.com/
• https://www.business.com/articles/human-relations-management-theory-basics/
• https://www.yourarticlelibrary.com/organization/what-are-the-important-steps-involved-in-
staffing-process-5-steps/8677
• https://upraise.io/blog/types-performance-appraisal/
• Management by Stephen P. Robbins & Mary Coulter
• Publisher: 2010 Pearson Education
• https://www.slideshare.net/NardiinObada/ch-5-social-responsibility-and-managerial-ethics
Communicating
MODULE VII
COMMUNICATING
• Define what is communicating

• Identify the purpose and function of communicating;
• Apply the managerial functions of communicating
What is
COMMUNICATING?
• the act of transferring

information from one
place, person or group to
another.
FORMS OF COMMUNICATION
COMMUNICATION PROCESS
Functions of COMMUNICATION
 INFORMATION FUNCTION
 MOTIVATION FUNCTION
Functions of COMMUNICATION
 CONTROL FUNCTION
 EMOTIVE FUNCTION
BARRIERS TO
COMMUNICATION
1. PERSONAL BARRIERS
2. PHYSICAL BARRIERS
3. SEMANTIC BARRIERS
1. PERSONAL BARRIERS
• factors that are personal to the
sender and receiver and act as a
hindrance in the communication
process.
• Factors: life experiences,

emotions, attitudes, behavior that
hinders the ability of a person to
communicate.
2. Physical Barriers
Due to the nature of the

environment
example: noise in environment

(air vibration, people talking,
equipment sounds)
SEMANTIC Barriers
• refers to the misunderstanding between the sender and receiver

arising due to the different meanings of words, and other symbols
used in the communication.
Overcoming barriers to communication
1. Eliminating differences in perception

2. Use of Simple Language
3. Reduction and elimination of noise levels
4. Active listening
5. Emotional State
6. Simple Organizational Structure
7. Avoid Information Overload
8. Give Constructive Feedback
9. Proper Media Selection
10. Flexibility in meeting the targets
Communication Flows in an Organization
Downward Communication
Definition: Refers to message flows from higher levels of authority to lower

levels.
Techniques: Letters, meetings, telephones, manuals, handbook and

newsletters.
Areas of Concern: Implementation of goals, job instructions, procedures

UPWARD COMMUNICATION
• Definition: Refers to messages from persons in higher positions.
• Techniques: Employee Attitude, opinion surveys, open door policy, informal

gripe sessions, task forces and exit interviews
• Areas of Concern: Work progress, Financial and accounting information,

Grievances and disputes
HORIZONTAL Communication
Definition: Refers to message sent to individuals or groups from another of the same
organizational level or position.
Techniques: memos, meetings, telephones, dinners and other social affairs
Areas of Concern: Interdepartmental coordination, Interdepartmental problem-solving and staff

advice to the departments
END.
Activity

Announcements.
REFERENCES
Motivating
MODULE IX
MOTIVATING
• Define what motivation is

• Identify the factors contributing to motivation
• Identify the different theories of motivation; and
• Apply the different techniques of motivation
What is motivation?
External and internal factors that stimulate desire and energy in people
to be continually interested and committed to the particular objective.
Types of Motivation
• Positive and Negative

• Extrinsic and Intrinsic
Factors contributing to motivation
• Salary
• Non-monetary incentives
• Relationship with colleagues
• Company’s culture
• Personal life
• Performing meaningful work
Theories of Motivation
• Maslow’s Hierarchy of Needs
• Herzberg’s Two-Factor Theory/Motivator-Hygiene
• McGregor’s X and Y Theories
• Urwick’s Theory Z
• McClelland’s Need Achievement Theory
• Argyris’s Theory
• Vroom’s Expectancy Theory
• Porter -Lawler’s Expectancy Theory
Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of Needs
Physiological Needs
• These needs are basic to human life and, hence, include food, clothing, shelter, air, water and necessities of life. These needs relate to
the survival and maintenance of human life.
Safety Needs
• These needs find expression in such desires as economic security and protection from physical dangers
Social Needs
• It is this socializing and belongingness why individuals prefer to work in groups and especially older people go to work.
Esteem Needs
• These needs refer to self-esteem and self-respect. They include such needs which indicate self-confidence, achievement, competence,
knowledge and independence.
Self-Actualisation Needs
• Need for self-actualization. This refers to fulfillment.
Herzberg’s Two-Factor Theory/Motivator-Hygiene
https://ebrary.net/2839/management/herzbergs_motivation_hygiene_theor
y
McGregor’s X and Y Theories
The first basically negative, labeled Theory X, and the other basically positive, labeled Theory Y.
McGregor’s X and Y Theories
Theory X is based on the following assumptions:
• People are by nature indolent. That is, they like to work as little as possible.
• People lack ambition, dislike responsibility, and prefer to be directed by others.
• People are inherently self-centered and indifferent to organisational needs and goals.
• People are generally gullible and not very sharp and bright.
On the contrary, Theory Y assumes that:
• People are not by nature passive or resistant to organisational goals.

• They want to assume responsibility.
• They want their organisation to succeed.
• People are capable of directing their own behaviour.
• They have need for achievement.
Urwick’s Theory Z
The two propositions in Urwicks’s theory are that:
• Each individual should know the organizational goals precisely and the
amount of contribution through his efforts towards these goals.
• Each individual should also know that the relation of organizational
goals is going to satisfy his/her needs positively.
McClelland’s Need Achievement Theory
• Need for Achievement:
This is the drive to excel, to achieve in relation to a set of standard, and to strive to succeed. In other words, need for achievement is a
behaviour directed toward competition with a standard 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 noted regional / national differences in achievement
motivation.
• Need for Power:
The need for power is concerned with making an impact on others, the desire to influence others, the urge to change people, and the
desire to make a difference in life. People with a high need for power are people who like to be in control of people and events. This
results in ultimate satisfaction to man.
• Need for Affiliation:
The need for affiliation is defined as a desire to establish and maintain friendly and warm relations with other people’. The need for
affiliation, in many ways, is similar to Maslow’s social needs.
McClelland’s Need Achievement Theory
https://ebrary.net/2840/management/mcclellands_need_theory
Argyris’s Theory
Argyris states that such situation will satisfy not only their physiological and safety needs, but also will motivate
them to make ready to make more use of their physiological and safety needs. But also will motivate them to
make ready to make more use of their potential in accomplishing organisational goals.
Vroom’s Expectancy Theory
It is a cognitive process theory of motivation. The theory is founded on the basic notions that people will be motivated to exert
a high level of effort when they believe there are relationships between the effort they put forth, the performance they achieve,
and the outcomes/ rewards they receive.
Vroom’s Expectancy Theory
Thus, the key constructs in the expectancy theory of motivation are:
1. Valence:
• Valence, according to Vroom, means the value or strength one places on a particular outcome or
reward.
2. Expectancy:
• It relates efforts to performance.
3. Instrumentality:
• By instrumentality, Vroom means, the belief that performance is related to rewards.

• Thus, Vroom’s motivation can also be expressed in the form of an equation as follows: Motivation =
Valence x Expectancy x Instrumentality
Porter -Lawler’s Expectancy Theory
• In fact, Porter and Lawler’s theory is an improvement over Vroom’s expectancy theory. They
posit that motivation does not equal satisfaction or performance. The model suggested by them
encounters some of the simplistic traditional assumptions made about the positive relationship
between satisfaction and performance. They proposed a multi-variate model to explain the
complex relationship that exists between satisfaction and performance.
• What is the main point in Porter and Lawler’s model is that effort or motivation does not lead
directly to performance. It is intact, mediated by abilities and traits and by role perceptions.
Ultimately, performance leads to satisfaction,. The same is depicted in the following
Porter -Lawler’s Expectancy Theory
Three main elements in the model
• Effort:
Effort refers to the amount of energy an employee exerts on a given task. How much effort an employee will put in a task is
determined by two factors-
(i) Value of reward and
(ii) Perception of effort-reward probability.
• Performance:
One’s effort leads to his/her performance. Both may be equal or may not be. However the amount of performance is determined
by the amount of labour and the ability and role perception of the employee. Thus, if an employee possesses less ability and/or
makes wrong role perception, his/her performance may be low in spite of his putting in great efforts.
• Satisfaction:
Performance leads to satisfaction. The level of satisfaction depends upon the amount of rewards one achieves. If the amount of
actual rewards meet or exceed perceived equitable rewards, the employee will feel satisfied. On the country, if actual rewards
fall short of perceived ones, he/she will be dissatisfied.
Motivation Techniques
• Motivation through Job Design
• This includes: Job Enlargement
Job Enrichment
Job Rotation
Job Simplification
• Motivation through Rewards
• Two types of Rewards: Intrinsic and Extrinsic
• Motivation through employee's participation
• Quality of work life programs
• Such as: Flexible work schedules and Family support services
END.
Activity

Announcements.
REFERENCES
Leading
MODULE IX
LEADING
• Define what is leading;

• Understand the functions of leadership;
• Identify the types of leaders and the different leadership styles; and
• Apply the different leadership theories
Presentation Timeline
1. Introduction
2. How Leaders Influences Others
3. Bases of Power
4. Nature of Leadership
5. Traits of Effective Leader
6. Leadership Skills
7. Behavioral Approaches to Leadership Styles
8. Contingency Approaches to Leadership Styles
Introduction
What is LEADING?
Leading is influencing or prompting the member of

the organization to work together with the interest
of the organization.
What is LEADERSHIP?
Leadership refers to the process while Leading

refers to the function.
Introduction
Boss vs. Leader
How Leaders Influences Others
Managers are expected to maintain effective
workforces. To be able to do so, they are required to
perform leadership roles. Leaders are said to be able to
influence others because of the power they possess.
Power refers to the ability of a leader to exert force on
another.
Bases of Power
1. Legitimate power
2. Reward Power
3. Coercive Power
4. Referent Power
5. Expert Power
Nature of Leadership
One cannot expect a unit or division to achieve
objectives in the absence of effective leadership. Even
if a leader is present, but if he is not functioning
properly, no unit or division objectives can be expected
to be achieved.
Traits of Effective Leader
1. A High Level of Person
2. The Desire to Lead
3. Person Integrity
4. Self-Confidence
5. Analytical ability or Judgement
6. Knowledge of the company, industry or
technology
7. Charisma
8. Creativity
9. Flexibility
Leadership Skills
1. Technical Skills
2. Human Skills
3. Conceptual Skills
Behavioral Approaches to Leadership Styles
According to ways leaders how approach

people motivate them
1. Positive Leadership
2. Negative Leadership
According to the way the leader uses

power
1. Autocratic Leaders
2. Participative Leaders
2. Free-Rein Leaders
According to the leader’s orientation towards

tasks and people
1. Employee Orientation
2. Task Orientation
Contingency Approaches to Leadership Styles
1. Fiedler’s Contingency Model

2. Hersey and Blanchard’s Situational
Leadership Model
3. Path-Goal Model of Leadership
4. Vroom’s Decision Making Model
Leadership Styles Appropriate for Various Maturity Level
1. Directing
2. Coaching
3. Supporting
4. Delegating
END.
Activity

Announcements.
REFERENCES
Controlling
MODULE 10
CONTROLLING
• Identify the need for control;

• Understand the control process;
• Identify the types of control
• Learn the characteristics of an effective control system; and
• Know the different control types
What is Controlling?
Controlling refers to the “process of ascertaining whether
organizational objectives have been achieved; if not, why
not; and determining what activities should then be taken to
achieve objectives better in the future.”
Importance of Controlling
When controlling is properly implemented, it will help the

organization achieve its goal in the most efficient and most
effective manner.
Steps in the
Control Process
Establishing Performance Objectives and
Standards
In controlling, what has to achieved must first be determined.
Examples of such objectives and standards are as follows:
• Sales targets
• Production targets
• Worker attendance
• Safety record
• Supplies used
ESTABLISH PERFORMANCE
OBJECTIVES AND STANDARDS
MEASURE ACTUAL
PERFORMANCE
DO NOTHING
DOES THE ACTUAL

PERFORMANCE
MATCH THE
STANDARDS? YES
NO
TAKE
CORRECTIVE
ACTION
Measuring Actual Performance
There is a need to measure actual performance so that
when shortcomings occur, adjustments could be made.
The adjustments will depend on the actual findings.
Comparing Actual Performance to

Objectives and Standards
Once actual performance has been determined, this will be
compared with what the organization seeks to achieve.
Taking Necessary Action
The purpose of comparing actual performance
with the desired result is to provide management
with the opportunity to take corrective action
when necessary.
Types of Control
PRE-
CONCURRENT
OPERATIONS
CONTROL
PHASE
ACTUAL
FEEDFORWAR
OPERATIONS
D CONTROL
PHASE
POST
FEEDBACK
OPERATIONS
CONTROL
PHASE
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.
Feedback Control
When information is gathered about a completed activity,
and in order that evaluation and steps for improvement are
derived, feedback control is undertaken.
Components of
Organizational Control
System
Strategic Plans
A strategic plan provides the basic control mechanism for
the organization. When there are indications that activities
do not facilitate the accomplishment of strategic goals,
these activities are either set aside, modified or expanded.
The Long-Range Financial Plan
The financial plan recommends a direction for financial
activities. If the goal does not appear to be where the
firm is headed, the control mechanism should be made
to work.
The Operating Budget
An operating budget indicates the expenditures, revenues,
or profits planned for some future period regarding
operations.
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. Performance appraisals also
function as effective checks on new policies and programs.
Statistical Reports
Statistical reports pertain to those that contain data on
various developments within the firm. Among the
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 report
6. Accident reports
7. Power consumption reports
Policies and Procedures
Policies refer to the “framework within which the objectives
must be pursued. A procedure is ”a plan that describes the
exact series of actions to be taken in a given situation.
Strategic Control
Systems
Financial Analysis
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.
Financial Ratio Analysis
Under this method, one account appearing in the financial
statement is paired with another to constitute a ratio. The
result will be compared with a required norm which is
usually related to what other companies in the industry
have achieved, or what the company has achieved in the
past.
Financial ratios may be categorized into the
following types:
1. Liquidity Ratios – these ratios assess the ability of a

company to meet its current obligations.
2. Efficiency Ratios – these ratios show how effectively
certain assets or liabilities are being used in the
production of goods and services.
3. Financial Leverage Ratios – this is a group of ratios
design to assess the balance of financing obtained
through debt and equity sources.
4. Profitability Ratios – these ratios measure how much
operating income a company can generate in relation to
its assets, owner’s equity and sales.
Identifying Control Problems
When operations become complex, the engineer manager
must consider useful steps in controlling. Kreitner
mentioned three approaches:
1. Executive Reality Check
2. Comprehensive Internal Audit
3. Symptoms of Inadequate Control
END.
Activity

Announcements.
REFERENCES
Management Ethics
MODULE 11
Management Ethics
• Define Ethics and Business Ethics;

• Understand dimensions of Ethics;
• Identify Ethical Principles responsible for Decision-Making
Social Obligation
The obligation of a business to meet its economic and legal responsibilities
and nothing more.
Social Responsiveness
When a firm engages in social actions in response to some popular social
need.
Social Responsibility
A business’s intention, beyond its legal and economic obligations, to do the
right things and act in ways that are good for society.
How Organizations Go
Green
• Legal approach
This approach is also known as the light green approach. Under this approach, organizations simply do
what is required legally. They exhibit little environmental sensitivity. They obey laws, rules, and
regulations without legal challenge. This approach illustrates social obligation.
• Market approach
As an organization becomes more sensitive to environmental issues, it may adopt this approach. Here,
organizations respond to the environmental preferences of their customers. Whatever customers demand
in terms of environmentally-friendly products is what the organization provides. This approach
illustrates social responsiveness.
• Stakeholder approach
Here, the organization works to meet the environmental demands of multiple stakeholders such as
employees, suppliers, or community. This approach also illustrates social responsiveness.
• Activist approach
If an organization pursues this approach, it looks for ways to protect the earth's natural resources. It is
also known as the dark green approach. This approach reflects the highest degree of environmental
sensitivity and illustrates social responsibility.
Source: Management, 11e (Robbins/Coulter)
Green Approaches
Source: Based on R.E. Freeman. J. Pierce, and R. Dodd. Shades of Green: Business
Ethics and the Environment (New York: Oxford University Press, 1995).
ETHICS
• At its simplest, ethics is a system of moral principles. They affect how people make decisions and lead their
lives.
• Ethics is concerned with what is good for individuals and society and is also described as moral philosophy.
• The term is derived from the Greek word ethos which can mean custom, habit, character or disposition.
• Ethics covers the following dilemmas:

o how to live a good life
o our rights and responsibilities
o the language of right and wrong
o moral decisions - what is good and bad?
Our concepts of ethics have been derived from religions, philosophies and cultures. They infuse debates on topics
like abortion, human rights and professional conduct.
http://www.bbc.co.uk/ethics/introduction/intro_1.shtml
Factors That Determine Ethical and Unethical Behaviour
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Factors That Affect Employee Ethics
Moral Development
¬ A measure of independence from outside influences
ϖ Levels of Individual Moral Development
– Preconventional level
– Conventional level
– Principled level
¬ Stage of moral development interacts with:
ϖ Individual characteristics
ϖ The organization’s structural design
ϖ The organization’s culture
ϖ The intensity of the ethical issue
https://studylib.net/doc/9622373/factors-that-affect-employee-ethics
Copyright © 2010 Pearson Education, Inc. Publishing as

Prentice Hall
Stages of Moral Development
Source: Based on L. Kohlberg, “Moral Stages and Moralization: The Cognitive- Development
Approach,” in T. Lickona (ed.). Moral Development and Behavior: Theory, Research, and
Social Issues (New York: Holt, Rinehart & Winston, 1976), pp. 34–35.

Prentice Hall
Individual Characteristics
¬ Values
ϖ Basic convictions about what is right or wrong.
¬ Personality
ϖ Ego strength - A personality measure of the strength of a person’s
convictions
ϖ Locus of Control
– A personality attribute that measures the degree to which people believe
they control their own life.
– Internal locus: the belief that you control your destiny.
– External locus: the belief that what happens to you is due to luck or chance.

Prentice Hall
• Structural Variables
¬ Organizational characteristics and mechanisms that
guide and influence individual ethics:
ϖ Performance appraisal systems
ϖ Reward allocation systems
ϖ Behaviors (ethical) of managers

Prentice Hall
• Organization’s Culture
¬ Values-Based Management
ϖ An approach to managing in which managers establish and uphold an
organization’s shared values.
¬ The Purposes of Shared Values
ϖ Guiding managerial decisions
ϖ Shaping employee behavior
ϖ Influencing the direction of marketing efforts
ϖ Building team spirit
¬ The Bottom Line on Shared Corporate Values
ϖ An organization’s values are reflected in the decisions and actions of
its employees.
• Intensity of the Ethical Issue

Prentice Hall
Determinants of Issue Intensity
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ten Principles of the United Nations
Human Rights
Principle 1: Support and respect the protection of international human rights within their
sphere of influence.
Principle 2: Make sure business corporations are not complicit in human rights abuses.
Labor Standards
Principle 3: Freedom of association and the effective recognition of the right to collective
bargaining.
Principle 4: The elimination of all forms of forced and compulsory labor.
Principle 5: The effective abolition of child labor.
Principle 6: The elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Support a precautionary approach to environmental challenges.
Principle 8: Undertake initiatives to promote greater environmental responsibility.
Principle 9: Encourage the development and diffusion of environmentally friendly
technologies.
Principle 10: Businesses should work against corruption in all its forms, including extortion
and bribery.
Source: Courtesy of Global Compact.

Prentice Hall
Codes of Ethics
Cluster 1. Be a Dependable Organizational Citizen Cluster 3. Be Good to Customers
1. Comply with safety, health, and security regulations. 1. Convey true claims in product advertisements.
2. Demonstrate courtesy, respect, honesty, and fairness. 2. Perform assigned duties to the best of your ability.
3. Illegal drugs and alcohol at work are prohibited. 3. Provide products and services of the highest quality.
4. Manage personal finances well.
5. Exhibit good attendance and punctuality.
6. Follow directives of supervisors.
7. Do not use abusive language.
8. Dress in business attire.
9. Firearms at work are prohibited.
Cluster 2. Do Not Do Anything Unlawful or Improper That

Will Harm the Organization
1. Conduct business in compliance with all laws.
2. Payments for unlawful purposes are prohibited.
3. Bribes are prohibited.
4. Avoid outside activities that impair duties.
5. Maintain confidentiality of records.
6. Comply with all antitrust and trade regulations.
7. Comply with all accounting rules and controls.
8. Do not use company property for personal benefit.
9. Employees are personally accountable for company funds.
10. Do not propagate false or misleading information.
11. Make decisions without regard for personal gain.
Source: F. R. David, “An Empirical Study of Codes of Business Ethics: A Strategic Perspective,” paper
presented at the 48th Annual Academy of Management Conference, Anaheim, California, August 1988.

Prentice Hall
Use of a Code of Ethics
Twelve Questions Approach
1. Have you defined the problem accurately?
2. How would you define the problem if you stood on the other side of the fence?
3. How did this situation occur in the first place?
4. To whom and to what do you give your loyalty as a person and as a member of the
corporation?
5. What is your intention in making this decision?
6. How does this intention compare with the probable results?
7. Whom could your decision or action injure?
8. Can you discuss the problem with the affected parties before you make the decision?
9. Are you confident that your position will be as valid over a long period of time as it
seems now?
10. Could you disclose without qualm your decision or action to your boss, your chief
executive officer, the board of directors, your family, society as a whole?
11. What is the symbolic potential of your action if understood? If misunderstood?
12. Under what conditions would you allow exceptions to your stand?
Source: Reprinted by permission of Harvard Business Review. An exhibit from “Ethics Without the Sermon,” by L. L. Nash.
November–December 1981, p. 81. Copyright © 1981 by the President and Fellows of Harvard College. All rights reserved.

Prentice Hall
END.
Activity

Announcements.
REFERENCES

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Process of Management

No matter which type of management style is used by an

selection is the act of getting people together to accomplish desired

which of the following is a part of controlling? Taking corrective

which of the following is part of the 6m of engineering

He said that “ by falling to prepare – Benjamin franklin

staffing refers to the process of motivation communication and

which of the following is one of the ten attributes of a good

which of the following is one of the ten attributes of good engineer

which of the following is a part of a task environment? customers

which of the following is a part of the swot analysis? strengths

the set of broad dimension and forces in an organizations

which of the following is an approach in decision making? organic

in diagnosing a problem one must identify the problem? true

which of the following is a part of developing viable alternatives?

which of the following is a part of a task environment? suppliers

which of the following is a part of the functions of management?

Which of the following is a part of the swot analysis? weaknesses

which of the following is a type of planning? strategic planning

Which of the following is a part of the swot analysis? opportunities

it is frequently used in software development projects- iterative

which of the following is a part of 6m of engineering management?

which of the following is a strength for modern engineering

a process of leading and controlling a technical function/

which of the following is a part of a task environment? competitors

which is a part of decision making process? diagnosing the problem

which of the following is one of the ten attributes of a good

which is a part of decision making process? Evaluating a situation

which of the following is a strength for modern engineering

everything outside an organization the might affect it. External

is strength part of the swot analysis? yes

which is a part of decision making process? developing viable

is opportunities part of the swot analysis? yes

the process of identifying and choosing alternative course of action

is threats part of the swot analysis. yes

which of the following is a part of developing viable alternatives?

which of the following has an important theory in pre scientific

which of the following is a part of a behavioral theory? behavioral

which of the following is a part of management theory?

which of the following has an important theory in pre scientific

which of the following has an important theory in pre scientific

which of the following is an evaluation of weber's theory?

study of human behavior as individuals and members of groups.

strict rules make the organizations procedure oriented rather than

which of the following is a type of a functional area plan? human

which of the following contributed in the behavioral science

who among the following are members of a top level management?

which of the following is a result of human relations theory?

social and physiological factors influence employee behavior and

the process of stating objectives and then determining the most

which of the following is a part of the planning process?

which of the following is a factor of pest analysis? economic factor

which of the following is a type of plan? functional area

an assessment based from swot analysis which constantly

which of the following is a type of functional area plan? production

a factor in pest analysis which targets the key factors of interest

which of the following is a part of swot analysis? threats