PRELIM: ENGINEERING MANAGEMENT
FUNCTION/S OF AN ENGINEER:
1. Research - engaged in the process of learning
about nature and codifying that knowledge into
functional theories.
2. Design and Development - undertakes the task
of transforming the idea of the product into
finished physical objects.
3. Testing - works in a unit where the workability of
new products or parts is tested.
4. Manufacturing - is solely responsible for the
production workers or is responsible for the
product.
5. Construction - directly in charge of the
construction personnel or can be responsible for
the quality of building process.
6. Sales - assists customers in meeting their needs,
in particular those requiring technical expertise.
7. Consulting - the consultant of any person or
organization requiring his professional expertise.
8. Government - employed in the government
performing any of the different tasks in
regulating, monitoring, and controlling the
activities of several institutions, public or private.
9. Teaching - a position at the school and is trained
as an engineering teacher. Some are deans,
directors, presidents, and chairman.
10. Management - assigned to handle groups of
individuals carrying out different tasks.
MANAGEMENT as “the act or art of managing: the
conducting or supervising of something (such as a
business).”
ENGINEERING as “the application of science and
mathematics by which the properties of matter and
the sources of energy in nature are made useful to
people.”
ENGINEERING MANAGEMENT is “a field that
concentrates on the application of engineering
principles for the effective planning and efficient
operations of managing manufacturing or industrial
operations.”
BECOMING AN EFFECTIVE ENGINEER MANAGER:
1. Managerial ability refers to the potential of an
engineer to accomplish operational objectives
successfully and efficiently.
2. Motivation to manage - some employees believe
that they are much more effective working alone
but there are others who wants to work with
group of people in achieving the organization’s
goal.
3. Opportunity - successful management can only
be realize if the engineer is suited to the
management position and its working
environment is supportive.
DECISION as “a determination arrived at after
consideration.” Decision happens when a manager
selects from available options.
DECISION MAKING is a process of finding, selecting
alternative courses of action to resolve the problem
in a manner appropriate to the need of the situation.
CATEGORIES OF MANAGEMENT DECISION:
1. Programmed Decision - a decision taken in
response to a recurring problem experienced
by the organization.
2. Non-Programmed Decision - a decision
taken in response to unique or unique
problem which has a great impact on the
organization.
DECISION - MAKING MODELS
1. Classical Model
- based on the concept that managers should
make rational decisions in the best economic
interests of the organization.
- uses a normative approach, which explains how
decision-maker should decide, it provides
direction on how to achieve organization’s goal.
- effective for programmed decisions and those
with less risk and information’s are certain.
2. Administrative Model
- also known as bounded rationality model
- a model of decision-making explaining how
managers make decisions in circumstances
marked by non-programmed decisions.
- this model recognizes limitations on resources
and environment that affect the degree to which
managers make decision.

3. POLITICAL MODEL
- is useful in making non-programmed decisions
where circumstances are unclear, knowledge is
scarce, and managers disagree about what target
to achieve or what course of action to take.
- represents the actual environment in which
engineer managers make complex decisions.
DECISION-MAKING PROCESS:
1. Recognition of the criteria for decision
Problem - occurs when your desired outcome is not
like the existing situation.
Opportunity - exists when managers see a potential
achievement that exceeds the specified current
objectives.
2. Analyzing Cause/s
3. Development and evaluation of feasible
solutions
 Value - refers to the expected outcome.
 Cost - refers to the money involve in
implementing the solution.
 Risk Characteristics - refers to the probability of
achieving the expected outcome All
consequences that each of the alternatives may
encounter should be consider in the evaluation.
4. Selecting desirable option
5. Implementing decision
6. Result review and evaluation
IN DECISION - making, engineer managers don’t
always resolve the issue directly, even how smart he
is. They may sometimes make wrong decisions.
MANAGERS CAN AVOID THE FACTORS CAUSING BAD
DECISIONS BY BEING AWARE OF THE FOLLOWING
SIX BIASES:
 Being influenced by initial impressions
 Justifying past decisions
 Seeing what you want to see
 Perpetuating the status quo
 Being influenced by problem framing
 Overconfidence
APPROACHES IN SOLVING PROBLEMS
1. QUALITATIVE EVALUATION - refers to the
assessment of alternatives using previous
experiences and intuition.
2. QUANTITATIVE EVALUATION - refers to the
evaluation of alternatives using any method
defined as analytical and logical.
DIFFERENT TYPES OF QUANTITATIVE TECHNIQUES:
1. Inventory models - consists of several types, all
designed to assist the engineer manager in
making inventory decisions.
2. Queuing Theory - is one that explains how to
assess the number of service units that will
reduce both waiting time and service costs for
customers.
3. Network Models - these are models in which
large complex tasks are divided into smaller
segments which can be handled independently.
4. Forecasting - defined as the collection of past
information and current knowledge to predict
the future.
5. Regression Analysis - is a forecasting method
which examines the links between two or more
variables.
6. Simulation - used for theoretical modelling of
natural systems or human processes to gain
insight into how they operate.
7. Linear Programming - is a quantitative
methodology used to generate an optimal
solution within the limits placed on the decision
by constraints.
8. Sampling Theory - a quantitative methodology
that statistically establishes samples of
populations to be used in various systems, such
as quality assurance and marketing analysis.
9. Statistical Decision Theory - refers to a logical
way of conceptualizing, evaluating and
addressing issues in circumstances involving
minimal or incomplete information of the issue.
A GOAL is “the end toward which effort is directed.”
Goals are important, they are identified and specified
for the operations to exist.
PLANNING is “the systematic development of action
programs aimed at reaching agreed upon business
objectives by the process of analyzing, evaluating
and selecting among the opportunities which are
foreseen.”
TYPES OF PLANS
1. Functional Area Plans - prepared by the different
functional areas who needs it.
A. Marketing Plan – is a written
document for the implementation and
control of the marketing activities of an
organization in relation to a particular
marketing strategy.
 B. Production plan – is a written
document that states the number of outputs
a company must produce in accordance with
the customers’ requirements.
C. Financial Plan – is a document
summarizing the current financial status of
the organization, assessing its financial need,
and recommending activities to improve it.
D. Human resource plan – it is a
document showing a company's human
resources needs, based on the criteria of the
company's strategic plan such as quantity
and quality of the workers.
2. Plans With Time Horizon
A. Short-range plans – are plans to
cover a period of less than a year.
Operational plan can also be considered as
short-range plan.
B. Long-range plans – these are plans
which cover a period of more than one year.
These are carried out mostly by middle and
top management.
3. Plans According to Frequency Use
A. Standing Plans - these are plans that
are used again and again and they focus on
repeatedly recurring managerial situations.
STANDING PLANS ARE CLASSIFIED AS
FOLLOWS:
 Policies – they are broad guidelines
to help managers decide on recurring
situations or functions at all levels.
 Procedures – these are plans which
describe the exact set of measures to be
taken in each situation.
 Rules – they are regulations that
either allow or forbid a certain action.
B. Single-Use Plans - these plans are designed
primarily to incorporate steps that are fairly new
and unlikely to be replicated.
SINGLE-USE PLANS MAY BE FURTHER
CLASSIFIED AS FOLLOWS:
 Budget - is a plan that sets out the projected
expenditure for a given activity and explains
where the required funds will come from.
 Program - is a single use plan designed to
coordinate a wide range of activities.
 Project - a temporary effort to produce a
unique product, service, or outcome.
PLANNING PROCESS
1. Setting Plan / Organizational Goal
 Planning process begins with the goal setting.
The engineer manager clearly defines the
mission, vision, target, and direction of the firm.
When setting up the goal the engineer manager
must consider the following:
 Specific and measurable
 Defined time period
 Cover key result areas
 Challenging but realistic
 Linked to rewards
2. Strategy and Tactics Development
 Strategical map and tactical plans are carried out
in these processes. Contingency plan is also
created to effectively respond to an unforeseen
circumstance.
3. Determining Resources Needed
 Factors needed for goal realization are identified,
this may include the human and non-human
resources. Resources should be properly
determined (quantity and quality) to avoid
excess or shortage cost in implementing the
strategies and tactics.
4. Implementation of Plan
 After resources are identified, the next step is to
implement the plan. Tools to execute the
strategy include management by objective,
results dashboards, and unified transparency
Many companies have adapted management by
objectives in in the implementation goals,
because they believe that they are well-oriented
when they use it.
5. Review and Monitor
 Lastly, managers frequently review plans to learn
from outcomes and change plans as necessary as
possible if needed. Planning and operational
reviews are normally done during this process.

MAKING PLANNING EFFECTIVE:
To make planning successful, the engineer manager
should observe the following:
1. Know the different barriers to planning.
 Manager’s planning ability is not suitable
 Planning process is incorrect
 Members are not engaged to the planning
process
 Gathered information are inappropriate
 Too much focus on the present at the cost of the
future
 Dependent on the planning department
 More focused on the controllable variable
2. Use of aids to planning
- Planning aids may include but not limited to,
involving member in the planning process,
gathering of more and appropriate information
and to develop different information sources.
PLANNING TOOLS:
1. FORECASTING - is the method of forecasting
potential environmental conditions that will
affect the activity of the organization.
Types of Forecasting:
 Qualitative - Jury of executive opinion,
Salesforce Estimation.
 Quantitative - Moving Average, Regression.
2. SCHEDULING - process of drawing up a
comprehensive list of the tasks to be carried out
to achieve the objective, the allocation of the
resources required to achieve the objective, and
the development and follow-up of timetables for
the achievement of the objective.
Scheduling Techniques:
 Gannt Charts - Normally used for resource
scheduling resources such as human resources
and machines
 PERT (Program Evaluation and Review
Technique) - is a scheduling method that
stresses the interrelationship of tasks.
ORGANIZING is define as “a management function
which refers to the structuring of resources and
activities to accomplish objectives in an efficient and
effective manner."
ORGANIZING PROCESS
ORGANIZATIONAL STRUCTURE
TYPES OF STRUCTURE:
1. Formal Structure - is defined as the relationships
between organizational resources as outlined by
management. This structure is represented by an
organizational chart, organizational manual, or
policy manual.
 Organization Chart - is a diagram of the official
positions and formal lines of authority of the
organization.
 Organizational Manual - details the outline of the
relationships between the authorities, describes
the roles of the major organizational units, and
explains the work procedures.
 Policy Manuals - describes the organizational
practices and strategies of the company.
Purpose of the formal structure:
 It determines the relationships for individuals
and departments between tasks and authority.
 It describes hierarchical reporting relationships,
the number of levels in the organization's
hierarchy and the scope of controls.
 It describes organizational groupings of
individuals into divisions and departments.
 It specifies the framework for effecting effort
coordination in both vertical (authority) and
horizontal (task) directions.

2. Informal Structure - defines as the formation of
relationships that grows because of the informal
activities of members in the organization. This is
normally formed because of the following
factors:
- Friendship
- Common Interest
- Proximity
- Collective Power
- Group Goals
Informal structure can be useful if engineer manager
could utilize it properly but could also be destructive
if neglected.
FACTORS TO CONSIDER WHEN STRUCTURING AN
ORGANIZATION:
1. Division of labor – determines the type and
scope of work and how they are integrated into a
job. This is also called work specialization, where
many believes that tasks can be perform
efficiently if the work is specialized.
2. Delegation of authority – the method of
allocating subordinates to varying degrees of
decision-making authority. It is also called the
chain of command, an unbroken line of authority
connecting all individuals within an entity and
showing who reports to whom.
Types of authority:
 LINE AUTHORITY – a manager's right to tell his
employees what to do and then see them doing
it.
 STAFF AUTHORITY – specialist’s or experts right
to advice to superior
 FUNCTIONAL AUTHORITY – the right of a
professional to supervise the lower level of
personnel engaged in that discipline, regardless
of where the worker is in the organization.
3. Departmentalization – grouping similar
employees, tasks, or processes into main
organizational sub-units.
TYPES OF DEPARTMENTALIZATION:
 Departmentalization based on Function -
organization structure is based on the function
of work, example marketing, finance, operation,
etc.
 Departmentalization based on Product or
Service- structure is based on the different
products produced or services provided by the
firm.
 Departmentalization based on Geography -
structure is based on the territorial assignment
of where the work is done.
 Departmentalization based on Customer -
structure is based on the different customers
catered by the company.
 Departmentalization based on Matrix -
structure is based on the combination of two
structures, in which the worker reports to both
the functional or division manager and to the
project manager. This structure normally
borrows workers from other divisions.
4. Span of Control – the number of workers directly
reporting to a certain manager or head. This
characteristic of structure determines how
closely a supervisor can monitor subordinates.
Factors Influencing Span of Control:
- Similarity of function
- Geographic Contiguity
- Complexity of function
- Coordination
- Planning
5. Coordination – the linking of activities within an
organization that serve a shared goal or purpose.
COMMITTEE
Committee - is a structured group of individuals
organized for a particular purpose.
CLASSIFICATION OF COMMITTEES:
1. AD-HOC COMMITTEE – type of committee which
is developed for a short-term purpose and with
limited life.
2. STANDING COMMITTEE – is a defined as a
systematic committee which constantly deals
with issues.