Engineering Management (REVIEWER)
Module 1
Engineering means by which people make possible the
realization of human dreams by extending their reach in
the real world.
Engineers are the practitioners of the art of managing the
application of science and mathematics.
Management
• is a “creative problem-solving process of
planning, organizing, leading and controlling an
organization’s resources to achieve its mission
and objectives”.
• is a process consisting of planning, organizing,
directing (or leading), and controlling
• must seek to find out the objectives of the
organization, think of ways on how to achieve
them, decide on the ways to be adapted
First-line managers
• directly supervise non-managers.
• hold titles such as foreman, supervisor, or
section chief.
Middle managers
• carry titles such as plant manager, division head,
chief engineer, or
operations manager.
• Make plans of intermediate range.
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).
• responsible for defining the character, mission,
and objectives of the
enterprise.
Engineering manager
Distinguished from other managers because he [or she]
possesses both an ability to apply engineering principles
and a skill in organizing and directing people and
projects.
He is uniquely qualified for two types of jobs: the
management of technical functions (such as design or
production) in almost any enterprise, or the
management of broader functions (such as marketing or
top management) in a high-technology enterprise.
The five elements of the management process are
planning, organizing, coordination, motivation and
control.
Process management sometimes referred to as the
process performance measurement and management
system.
Ability capacity of an engineer to achieve organizational
objective effectively and efficiently.
Effectiveness is whether objectives are accomplished.
The degree to which objectives are achieved and the
extent to which targeted problems are solved.
Efficiency is the ability to avoid wasting materials,
energy, efforts, money, and time in doing something or
in producing a desired result.
Motivation to Manage favorable attitude toward those
in positions of authority, desire to engage in games or
sports competition with peers etc.
Opportunity Obtaining a suitable managerial job, finding
a supportive climate once on the job.
Decision Making
Module 2
Decision making may be defined as “the process of
identifying and choosing alternative courses of action in
a manner appropriate to the demands of the situation”.
Decision-making, according to Nickels and others, “is the
heart of all the management functions”.
Managerial decision making is the process of making a
conscious choice between two or more rational
alternatives in order to select the one that will produce
the most desirable consequences (benefits) relative to
unwanted consequences (costs).
Continuous and dynamic when one problem is solved
another arises and so on, such that the decision-making
process, as said earlier.
Well-Structured Problems and Programmed Decisions
▪ Problems are straight forward
▪ The goal of the decision maker is clear, the
problem is familiar, and information about the
problem is easily defined and complete.
Various types of programmed decisions are:
Organizational decisions taken in interest of the
organization.
Operational decisions are taken as a matter of routine. It
relates to daily operations and aims to achieve short-
term objectives of the firm.
Research decisions which involve regular survey of the
market are research decisions and decisions made under
situations of crisis or emergency are crisis — intuitive
decisions.
Opportunity decisions these decisions reflect
foresightedness. Managers forecast opportunities to
promote organizational growth.
Poorly Structured Problems and Nonprogrammed
Decisions
▪ Problems that are new or unusual and for which
information is ambiguous or incomplete.
▪ Decisions are taken in unstructured situations
which reflect novel, ill-defined and complex
problems.
Rational decision-making describes a series of steps that
decision makers should consider if their goal is to
maximize the quality of their outcomes.
Decision Making Process
1. Identify the problem or Diagnose the Problem
Decisions are made to solve problems. As a first step
to decision-making, therefore, managers identify the
problem. Problem is any deviation from a set of
expectations.
2. Analyze the environment the objective of
environmental analysis is the identification of
constraint which may be spelled out as either
internal or external limitations.
Internal environment refers to organizational activities
within the company that surrounds decision making.
External environment refers to variables that are outside
the organization and not typically within the short-run
control of top management.
3. Articulate problem or opportunity information
provides input for generating solutions. Information
may be quantitative or qualitative. It should be
reliable, adequate and timely so that right action can
be taken at the right time.
4. Develop viable alternatives in this step, the
engineer manager prepares a list of alternative
solutions, then determines the viability of each
solution.
▪ Alternatives means developing two or
more ways of solving the problem.
5. Evaluate Alternatives this is important since the
next step is about making a choice. Proper
evaluation makes choosing the right solution less
difficult.
6. Make a choice after the alternatives have been
evaluated, the decision maker must now be ready to
make a choice.
▪ Choice-making refers to the process of
selecting among alternatives representing
potential solutions to a problem.
7. Implement Decision implementation refers to
carrying out the decision so that the objectives
sought will be achieved.
8. Evaluate and adapt decision results in
implementing the decision, the results expected may
or may not happen.
Certainty the ideal situation for making decisions is one
of certainty, that is, a situation in which a manager can
make accurate decisions because the outcome of very
alternative is known.
▪ One common technique for decision
making under certainty is called linear
programming. In this method, a desired
benefit (such as profit) can be expressed as
a mathematical function (the value model
or objective function) of several variables.
Risk a far more common situation is one of risk, those
conditions in which the decision maker is able to
estimate the likelihood of certain alternatives or
outcomes.
Uncertainty sometimes a decision maker cannot assess
the probability of occurrence for the various states of
nature. In such condition of uncertainty, the decision
maker can choose among several possible approaches
for making the decision.
Optimistic manager –maximax choice (maximizing the
maximum possible payoff)
Pessimistic manager –maximin choice (maximizing the
minimum possible payoff)
Decision maker –principle of insufficient reason; all
states of nature are equally likely (highest average)
Minimax approach –opportunity loss (regret)
Decision making is a very important and complex
process. In order to aid decision makers, make the right
choice, different tools and techniques are used to
improve the overall quality of decision making.
Decision Trees are tools that help choose between
several courses of action or alternatives. They are
represented as tree-shaped diagram used to determine
a course of action or show a statistical probability.
Delphi Technique
▪ Group process using written responses
▪ Series of questionnaires
Nominal Group Technique
▪ Write down ideas, Data gathering, Discussions /
clarifications, Voting for favorite ideas
Payback Analysis
▪ Generally used in financial management
▪ Break-even point analysis
▪ Objective: choose alternative with quickest
payback of initial cost
Marginal Analysis
▪ Weighs benefits of an input or activity against
the costs
▪ Emphasis on ROI
SWOT
Strength – things your companies does well
Weaknesses - things your companies lack
Opportunities – underserved markets for specific
products.
Threats – Emerging competitors.
Decision Matrix. When dealing with multiple choices
and variables, a decision matrix can bring clarity to the
disarray. A decision matrix is similar to a pros/cons list,
but it allows decision maker to place a level of
importance on each factor.
Pareto Analysis. It is a statistical technique in decision
making that is used for the selection of a limited number
of tasks that produce significant overall effect.
▪ It uses the Pareto Principle (also known as the
80/20 rule).
CHAPTER 3: PLANNING / COORDINATING TECHNICAL
ACTIVITIES
PLANNING
▪ Selecting the best course of action in
anticipation of future trends so that the desired
result may be achieved.
▪ the selection and sequential ordering of tasks
required to achieve an organizational goal.
TYPES OF PLANNING
Strategic Planning
Operational Planning
PLANNING TASKS
Time Management
Projects and Programs
Corporate know-how
Other Proactive tasks
Proactive Tasks Utilizing new technologies to simplify
and enhance the products and services of the company.
Proactive Tasks (continued) Initiating new programs to
promote healthy customer relationships.
Technology forecasting is of critical importance to those
companies whose products are composed of high-
technology components.
The term product life cycle refers to the length of time a
product is introduced to consumers into the market until
it's removed from the shelves. The life cycle of a product
is broken into four stages—introduction, growth,
maturity, and decline.
Identify: Critical factors with significant effect on
profitability
Determine: forecasting horizon (short term,
intermediate term, long term)
Select: the forecasting method to use.
CHAPTER 4: ORGANIZING
LEGAL FORMS OF ORGANIZATION
Sole Proprietorship - owned by one person.
Partnership - Association of two or more partners.
Limited Liability Company - Owners have
limited personal liability for the debts.
Corporations - Legal entity owned by shareholders.
Cooperatives - Special type of organization owned by
members or customers.
Organizing is the establishment of effective authority
relationships among selected work, persons and work
places in order for the group to work together efficiently.
Hierarchical organization is an organizational structure
where every entity in the organization, except one, is
subordinate to a single other entity.
Functional organization – this is a form of
departmentalization in which everyone engaged in one
functional activity, such as engineering or marketing, is
grouped into one unit.
Product or market organization – this refers to the
organization of a company by divisions that bring
together all those involved with a certain type of product
or customer.
Matrix organization – an organizational structure in
which each employee reports to both a functional or
division manager and to a project or group manager.
Span of control
▪ also called span of management, is the term
used in business management, particularly
human resource management. The term refers
to the number of subordinates or direct reports
a supervisor is responsible for.
▪ number of subordinates under the managers
control.
Narrow Span of Control / Wide Span of Control
Organizational culture includes an organization’s
expectations, experiences, philosophy, as well as the
values that guide member behavior, and is expressed in
member self-image, inner workings, interactions with
the outside world, and future expectations.
Culture is based on shared attitudes, beliefs, customs,
and written and unwritten rules that have been
developed over time and are considered valid.
Formulate a clear strategic vision. This vision gives the
intention and direction for the future culture change.
Display top-management commitment. The top of the
organization must favor the culture change in order to
actually implement the change in the rest of the
organization.
Model culture change at the highest level. The behavior
of the management needs to symbolize the kinds of
values and behaviors that should be realized in the rest
of the company.
Modify the organization to support organizational
change. This includes identifying what current systems,
policies, procedures and rules need to be changed so
alignment with the new values and desired culture can
be achieved.
Select and socialize newcomers and terminate deviants.
Encouraging employee motivation and loyalty to the
company will create a healthy culture.
Develop ethical and legal sensitivity. This step can
identify obstacles of change and resistant employees,
and acknowledge and reward employee improvement,
encouraging continued change and involvement.
CHAPTER 5: STAFFING
Staffing is a significant function of the management
which involves manning the organization structure
through proper and effective selection, appraisal and
development of the personnel to fill the roles assigned in
the workforce in order to make positive impacts on the
effectiveness of the organization.
HUMAN RESOURCE PLANNING Also called as Manpower
Planning is the process of forecasting the future human
resource requirements of the organization and
determining as to how the existing human resource
capacity of the organization can be utilized to fulfill these
requirements.
Recruitment is the process of searching prospective
employees and stimulating them to apply for the jobs in
the organization.
Selection refers to the process of choosing the most
suitable person for the current position or for future
position from within the organization or from outside
the organization.
TRAINING AND DEVELOPMENT Training refers to the
“learning that is provided in order to improve
performance on the present job”.
Performance appraisal is the judgment of an employee’s
performance in a job.
Monetary Reward – this is given to employees whose
performance is at par or above standard requirements.
Promotion – this refers to a movement by a person into
a position of higher pay and greater responsibilities and
which is given to a reward for competence and ambition.
Transfer – this is the movement of the person to a
different job at the same or similar level of responsibility
in the organization.
Demotion – this is a movement from one position to
another which has less pay or responsibility attached to
it. This is also a form of punishment.
LISTENING SKILLS – VERBAL FOLLOWING The comments
you make should be in line with what the speaker is
saying and that you do not start any new subjects.
Minimal encouragers are short verbal reactions intended
to stimulate the speaker to talk by showing him that he
is being listened to.
Personal Barriers. These are hindrances to effective
communication arising from the communicator’s
characteristics as a person, including emotions, values,
poor listening habits, sex, age, race, socioeconomic
status, religion, education, and so on.
Physical Barriers. These are interferences to effective
communication occurring in the environment where the
communication is undertaken.
Semantic Barriers. Semantics is the study of meaning as
expressed in symbols. Words, pictures, or actions are
symbols that suggest certain meanings.
Management information system (MIS) may be defined
as an organized means of providing past present, and
projected information on the company’s internal
operations and external intelligence for use in decision
making.
GOODLUCKKK ENGR.!!!!!!!!!!

EMPLOYEE SEPARATION
▪ it is the last step in the process of staffing.
▪ It means separating the employees from their
job.
▪ Separation is either a voluntary or involuntary
termination of an employee.

CHAPTER 6: COMMUNICATION IN ORGANIZATION

Communication is the process of sharing information

through verbal and nonverbal means, including words,
messages, and body movements.

REGULATING SKILLS
▪ Opening a conversation / Setting goals
▪ Goal Evaluation
▪ Closing conversation
LISTENING SKILLS Not only is it important to have a good
structure in a conversation, but it is also important to let
your conversational partner know that he is being
listened to.
LISTENING SKILLS – NON-VERBAL BEHAVIOR
▪ Facial Expression
▪ Eye Contact
▪ Body Posture
▪ Encouraging Gestures