Lesson 1.

1: Introduction to Engineering
Management

Lesson Summary
This lesson introduces to students the definition of management; effectiveness and
efficiency as its basic requirement; the engineer as the manager, its role in the
organization and the management skills expected from a manager; the different levels
of managers, types of managers; the definition of the organization; and, the basic
principles of management and organization.

Learning Outcomes
1. Describe the meaning of management.
2. Identify the scope of management.
3. Recognize the importance of effectiveness and efficiency in the
organization.
4. Describe the characteristics of a manager.
5. Examine the levels of managers in the organization.
6. Compare the types of managers.
7. Examine the skills required in managing.
8. Identify the various roles of a manager.
9. Describe the nature of an organization.
10. Identify the basic principles of management and organization.

Motivation Question

What is Engineering Management?

Discussion

Introduction

Depending on their specialty and job level, engineers are expected to perform
a number of tasks. It is important that the engineer knows what is expected of him so
that he can perform his job efficiently and effectively. Since engineers are not trained
to deal directly with employees within an organization, their shortcomings are also
expected to be dependent on people-based skills. When they are appointed to hold
management positions, this difficulty would be more evident. It follows that some
exposure to engineering management activities is necessary if the engineering
manager wants to do his job well.
Mankind has benefited from the numerous instruments, machinery, and
projects built by engineers since prehistoric times. These contributions demonstrate
that engineers have become an important component of the world's occupations. Even
as engineers are currently developing solutions to many of the problems faced by
mankind, much is still demanded of them. Specifically, the functions of engineering
encompass the following areas:
1. Research – where the engineer is interested in the process of
learning about nature and codifying this information into ideas that
are usable.
2. Design and Development – where the engineer undertakes the task
of translating a concept of a product into a physical finished object.
3. Testing – where the engineer works in a unit where workability is
checked for new products or parts.
4. Manufacturing – where the engineer is directly in charge of
manufacturing staff or needs to take responsibility for the product.
5. Construction – this is where the building engineer (civil engineer) is
either solely responsible for the construction workers or may be
responsible for the efficiency of the construction process.
6. Sales – where the engineer helps the client of the company to meet
their needs, especially those needing technical expertise.
7. Consulting – where the engineer works as an advisor to any person
or organization requiring his services.
8. Government – where the engineer may find government
employment performing any of the different tasks in governing,
monitoring, and controlling the activities of various public or private
institutions.
9. Teaching – where the engineer is working in a school and named as
an engineering course instructor. Some become deans, vice
presidents, and presidents later on.
10. Management – where the engineer is assigned to oversee groups of
individuals carrying out particular tasks.

The Engineer in Various Types of Organization

From the engineer's point of view, organizations can be categorized

according to the degree of engineering work carried out:
1. Level One – those with minimal engineering jobs like retailing firms.
2. Level Two – those with a moderate degree of engineering jobs like
transportation companies.
3. Level Three – those with a high degree of engineering jobs like
construction firms.
The engineer would have a slim chance of becoming the general manager or
president of level one among the types of organizations, unless, of course, he owns
the company. The engineering manager might be assigned to lead the company's
limited engineering team, but there won't be too many companies that have this team.
The engineer may be assigned to head the engineering division in level two
firms. The engineering manager can now feel the need for management skills.
Level three firms provide an engineer with the greatest opportunity to
become the president or general manager. In this situation, without sufficient
management skills, the engineering manager can not work effectively.
What is Engineering Management?

Engineering Management refers to the operation that combines "technical

competence with the ability to organize and coordinate the control, materials ,
equipment, and money of employees."
He is already engaged in the first stage of engineering management when the
engineer is assigned to oversee the work of even a few individuals. His primary duty
is to lead his group to achieve a certain performance that is consistent with the
requirements needed.
The general management or presidency of any organization , large or small,
is the top role an engineering manager can hope to occupy. He notices that the further
he goes up, the less technical exercises he performs, and the more management duties
he accepts, as he climbs the leadership ladder. In this situation, it is, however,
appropriate that the management functions taught in pure leadership courses are well
understood by the engineer manager.

How One may become a successful engineer manager?

Efficient engineer managers, while luck is a contributory factor, do not

happen as a matter of chance. It is very important for the engineering director to
consider the different factors that contribute to effective management.
Kreitner enumerate at least three general preconditions for achieving lasting
success as a manager. They are as follows:
1. Ability – refers to the capacity of an engineer manager to achieve
organizational objectives effectively and efficiently.
2. Motivation to manage - Many individuals have the ability to work
and accomplish specific tasks assigned by managers, but not many
are driven to handle other individuals so that they can contribute to
achieving the goals of the company.
(John B. Miner), developed a psychometric instrument to measure
objectively an individual’s motivation to manage. The test is
anchored to the following dimensions:
1. Favorable mindset towards those in top positions, such as
superior positions.
2. Desire to participate in games or athletic rivalry with peers.
3. Desire to participate with colleagues in workplace work-
related competition.
4. Desire to claim and take care of oneself.
5. The desire to exercise authority and power over others.
6. Desire to act in a unique manner, which involves standing
out from the crSense of responsibility in carrying out routine
duties associated with managerial work.
 7. Sense of duty in the execution of routine activities relevant to
managerial work.
3. Opportunity – successful managers become possible only if those
having the ability and motivation are given the opportunity to
manage which can be: obtaining a suitable managerial job and
finding a supportive climate once on the job.

Management and Organization

Organizations exist to satisfy human wants. Limited resources while

increasing the demand to meet the needs such as food, shelter, security, and other
necessities drive people to devise or find means to ensure that these needs are
satisfied through the right actions.
One way to do this is the adoption of a positive approach to effective and
efficient schemes related to management and organization. Firms and organizations
whether profit or non-profit should, manage their resources properly, or they will fail
in the attempt to contribute their share in the economic progress of the country. This
is one of the many importance of studying management and organization.

What is Management?

Management is characterized as attaining organizational goals through

persons and other resources. It consists of several functions, which are the following:
1. Decision-making is the mechanism by which a decision-maker decides
the alternative available and selects the best solution that fits a given
problem.
2. Planning is the process of establishing objectives and suitable courses of
action before taking action.
3. Organizing is the process of arranging an organization’s structure and
coordinating its managerial practices and use of resources to achieve its
goals.
4. Staffing refers to the process of recruiting, placing, training, and
developing personnel.
5. Communicating refers to transferring information from one
communicator to another.
6. Motivating refers to the act of giving employees reasons or incentives to
work in order to achieve organizational objectives.
7. Leading is the process of directing and influencing task-related activities
of organization members.
8. Controlling is the process of monitoring actual organizational activities
to see that they conform to planned activities and correcting deviations or
flaws.
The Basic Requirement of Management

An organization can only survive being successful and efficient in its

activities. It is the manager's duty to ensure his company achieves its goals efficiently
and consistently.
Effectiveness is a central element of the management process which is the
achievement of the firm’s objective. For example , a manufacturer selects a supplier
who delivers needed materials at the time and quantity necessary.
Efficiency is often a key factor in the management process that allows the
least amount of resources to be used to attain a goal.

What is a Manager?

A manager is one who, in the course of achieving the organizational goals,

plans, organizes, directs and controls other people. Managers are vested titles such as
president, head of department, dean, administrator, overseer, team leader, and the
like.
The manager is the one responsible for accomplishing the goals of his
specific unit, which may be a whole company, a particular department, or a work
group.
Managers are responsible for using materials and talents in the most
economical and productive manner. As such, they are regarded as very important, if
not the most important factor in the economic development of the nation.

The Levels of Managers

Managers function according to the levels they are in. In a small

organization, there would normally be just a single manager who is expected to
perform all the managerial roles and tasks.
The levels of managers depends on the size of the organization as presented
in the figure below.

Figure
1.1.a Levels of Managers
 Top managers are responsible for the overall performance of the
organization. They formulate strategies, provide leadership, evaluate and shape the
method of organizing, and control the direction of the organization in the effort to
accomplish the goals. They usually hold titles such as chief executive officer,
president, chairman or senior vice president.

Middle managers direct the activities of other managers and sometimes those
of operating employees. They work with top managers and coordinate with peers to
develop and implement action plans to accomplish organizational objectives.
Examples of middle managers are the dean of the business school in a university, the
plant manager in a manufacturing firm, and the branch manager of a trading firm.
Lower level managers are responsible for leading employees in the day-to-
day tasks, which contribute to the organization’s goals. Of the various levels of
managers, they are the ones in direct contact with the employees. Because of this,
they are also referred to as “first line” or “front line” managers. Apart from
performing the other managerial functions of planning, directing, and organizing,
their tasks include correcting errors or solving problems directly related to the
production of goods and services.

Types of Managers

Managers may be different from one another in terms of the work they do.
They may be as follows:
1. Line managers are directly concerned with accomplishing the goals of the
organization. The decisions they make concerning operations are expected to
be final and must be implemented. For example, the university president, the
dean, and the department heads all have line responsibilities.
2. Staff managers are in charge of units that provide support to the line units. In
doing their work, they use special expertise to advise the line workers. The
director of personnel and the controller are examples of staff managers.
3. Administrators are managers working in government or in nonprofit
organizations. Examples include school administrators, provincial
administrators, and hospital administrators.

Management Skills

The successful performance of management functions is possible if the

manager if equipped with the necessary management skills which are the following:
1. Technical skills refer to the abilities to use special proficiencies or expertise
in performing specific tasks with the use of tools, techniques, and specialized
knowledge. Examples of specialized skills are the following: an accountant
preparing a financial report, an architect working on a building plan, and a
professor writing a book.
2. Human skills refer to the abilities to work well in cooperation with other
persons; whether they are subordinates, peers, or superiors. A person with
good human skills will have a high degree of self-awareness and a capacity
for understanding or empathizing with the feelings of others.
 Some of the human skills necessary for managers are effective oral
and written communications, creating positive attitude toward others and in
the work setting, developing cooperation among group members, and
motivating subordinates.
Human skills is a difficult one to master. Emotionally sound
managers perform this skill better than those who are not.
3. Conceptual skills refer to the ability of the manager to see the organization as
a whole and to solve problems in ways that benefits the total system.
Specifically, the manager who possesses these skills is expected to analyze
and solve complex problems. Thus, the manager with good conceptual skills
will have the mental capacity to perform the following:
a. Identify problems and opportunities;
b. Gather and interpret relevant information; and
c. Execute problem-solving decisions that serve the organization’s
purpose.
Examples of situations that require include the promulgation of a
new law. In company, a manager’s conceptual skills are required in decisions
such as those that affect the selling procedures of the organization in
choosing where to establish a branch of the company.

Required Management Skills at Different Levels of Management

The application of various management skills differ from level to level in the
management hierarchy. As shown in Figure 1.1.2, first line manager need less
conceptual skills in the performance of work, and more human technical skills.
Middle managers need more conceptual skills, the same degree of human
skills as that of first line managers, but less on technical skills.
Top managers main concern is on conceptual skills; the same degree of
human skills as these of first line and middle managers, and with the least concern
about technical skills.
Figure1.1.b Management Skills Needed at Different Levels of Management

MANAGERIAL ROLES

The manager is expected to lead his unit or department in achieving its

objectives. As such, he is bound to interact with people and deal with processes. In
the attempt to produce results, the manager assumes roles as varied as the following:
1. Interpersonal Roles. These are roles the manager plays when he interacts
with others. The specific roles under this category are:
a. Figurehead. When the manager performs this role, he acts as the
symbolic head of the organization and as a result, he is expected to
perform a number of duties of a legal or social in nature. For
example, when a manager cuts the ceremonial ribbon of a company-
sponsored project such as a school building.
b. Leader. This role makes the manager responsible for the motivation
and activation of subordinates. As such, he is responsible for actions
in staffing, training, and other associated duties. He performs the role
of leader in virtually all managerial activities involving subordinates.
c. Liaison. In assuming the liaison role, the ,manager makes contacts
with individuals in and out of the organization to facilitate the
accomplishment of work in his department. Examples of such
activities are acknowledgement of mail, eternal board work, and
other activities involving outsiders.
2. Informational Roles. In this role, the manager receive and communicate
information to his subordinates that is vital to his decision-making tasks. He
assumes three specific roles briefly described below:
a. Monitor. In making the right decisions concerning the various
aspects of an organization, the manager is to collect information that
 will be useful in performing his job and then shared with other
members of the organization whenever they are needed. Such as
handling mails and contacts, primarily receiving information from
sources like news bulletin, special magazines, and other
observational documentaries.
b. Disseminator. There are some types of information which the
manager can find useful to his subordinates. When receiving such
knowledge from outsiders or from subordinates, he passes it on to the
organization's concerned members. Some of this may be empirical,
and some may include interpretation and integration. As a
disseminator of information, the manager aims to ensure that specific
incoming information is adequately exchanged with subordinates.
c. Spokesperson. There are occasions when outsiders seek information
about the organization and the manager, as spokesperson
accordingly. He also serves as expert on organization’s industry. To
effectively perform the role of spokesperson, the manager sees to it
that his views are heard on occasions requiring his presence such as
board meetings. He also maintains contact with outsiders and
provides information when they are required.
3. Decisional Roles. The major part of the manager’s job is to make decisions.
As such, he must use the information he processes to make decisions that
solve problems. As decision maker, the manager assumes the following roles:
a. Entrepreneur. In acting this role, the manager searches the
organization and its environment for opportunities and initiates
projects to bring about positive change. He also supervises the design
of certain projects. His role as entrepreneur requires his participation
in strategy and review sessions involving initiative or design of
projects to improve performance.
b. Disturbance Handler. Sometimes, organizations face important but
unexpected disturbances such as striking employees dissatisfied with
the compensation scheme, a disagreement among middle managers
involving questions of jurisdiction, and the sudden decrease in sales
of the different branches of the organization. As disturbance handler,
the manager is expected to respond to such unwelcome pressures by
formulating strategies and reviewing such disturbances.
c. Resource Allocator. The manager is responsible for the allocation of
organizational resources of all kinds such as personnel, funds,
machines, or building and facilities to individual employees or units.
As such, he is expected to be actively involved in scheduling, acting
on requests for authorization, budgeting, and the programming of
subordinates’ work.

WHAT IS AN ORGANIZATION?

An organization is a collection of people working together to achieve a

common purpose. It is the means used by people to achieve certain objectives. In
order to do this, people in a group must interact, use knowledge and techniques, and
work together in patterned relationships. These relationships depend on the types of
organization as illustrated in Figure 1.1.3.
Figure1.1.c Types of Organizations

The Function of Organizations

There are certain objectives that the individual will find hard, if not,
impossible to achieve. The mass production of appliances like television sets and
cellular phones, for instance, will be impossible for a single person to undertake.
Even if many persons perform the job, if they act independently, such activity will be
very difficult and costly. The variety of specialized tasks would be enough to
overwhelm the individual worker if he is required to do all of them. The elimination
of such kinds of difficulties provides a rationale for the existence of organizations. In
addition, a fully organized group offers some advantages, which cannot be derived
from an unorganized group pf people. Even wild animals know the value of
organizing themselves for survival. Scientists observed that when carnivores like
lions and hyenas hunt for food, these animals find it easier to catch a prey if they do it
as an organized group.

Characteristics of Organization

The following are the four characteristics commonly shared by organizations:

1. Coordination and Effort. When properly directed, persons working in
coordination with others will produce better outputs than when they work
independently. Studies indicate that persons who cooperate with one another
in an organized manner will produce better output than when they don’t.
2. Common Goal or Purpose. In order to make employees work with proper
direction, they must be provided with common goal or purpose.
Organizations that do not make their goals or purposes clear run the risk of
failure.
3. Division of Labor. When the total job is divided into manageable parts,
workers will be more familiar with their assignments, making them more
proficient.
4. Hierarchy of Authority. In controlling the behavior of employees, positions
are established and linked by a chain of command in a continuous branching
out so that multiple layers exist in the hierarchy.
BASIC PRINCIPLES OF MANAGEMENT AND ORGANIZATION

There are certain principles that should be considered in the study of

management and organization of business enterprises. These principles are
enumerated below.
1. Management Principles. The various management principles applicable to
managing a business enterprise are as follows:
a. Division of Labor. This means breaking a job into specialized tasks
to increase productivity. For example, the total job of financing
appliance sales may be divided into tasks such as credit investigation,
collection, sales, and accounting.
b. Authority. This is the right of a person in position to give orders and
the power to exact obedience. For example, a sales manager has the
right to expect from the sales supervisors the required volume of
sales for a given period.
c. Discipline. This provides uniform application of behavior to certain
activities; the outcome of which is readily predicted. If discipline is
not practiced, objectives will be very hard to achieve.
d. Unity of command. This means that each employee must have only
one supervisor. Reporting directly to more than one superior creates
problems and reduces productivity.
e. Unity of direction. This means that the effort of everyone in the
organization must be coordinated and focused on the same direction.
It will be hard to achieve an organizational objective if some
components of the organization are not moving toward the identified
objective.
f. Subordination of the Individual Interests to the general Interest. This
means that the goal of the organization should take precedence over
individual goals. When the reverse happens, it will be difficult for the
organization to succeed because its goals will always be set aside.
g. Remuneration. Employees should be paid fairly in accordance with
their contribution to the organizational effort. This must be applied to
salaries, bonuses, and benefits.
h. Centralization. Power and authority must be centralized as much as
practicable. Decentralization must be instituted, however, when the
firm grows to a considerable size.
i. Scalar Chain. This means that subordinates should observe the
official chain of command unless authorized by their respective
superiors to communicate with each other.
j. Order. This means that human and non-human resources must be in
their proper places. The production manager, for example, must hold
office at the production site.
k. Equity. This is the result of kindliness and justice and is a principle to
guide management and employee relations.
l. Stability of Tenure. High employee turnover is counterproductive. To
motivate employees to stay with the company, effective manpower
planning and implementation are necessary.
 m. Initiative. Management should encourage employees to act on their
own volition when confronted with an opportunity to solve a
problem.
n. Esprit de Corps. This means that management should emphasize
teamwork by building harmony and a sense of unity among
employees. Harmony breeds high morale and is more productive than
discord.
2. Principles of Organization. Knowledge of the basic principles of
organization is a useful guide in organizing business enterprises. These
principles are as follows:
a. Principle of Objective. The objective of the organization must first be
determined and laid out clearly, before any activity is undertaken.
The objective will serve as the guide in determining whether a certain
activity is required or not. If the company’s objective, for example, is
to sell financing services, then the entire organization must be built
around that objective, and every employee of the company must
think and act in terms of selling financing services.
b. Principles of Analysis. Managers in organization must be able to
break a problem down into its components, analyze these
components, and then come up with a feasible solution. In the
attempt to achieve objectives, the analytical ability of managers and
employees will be crucial.
c. Principle of Functionalization. Business firms are not supposed to be
organized to accommodate individuals. Rather, it should be built
around the main functions of the business. For example, if the
company’s objective is to sell financing services, the functions
should be related to such objectives like credit department, collection
department, financial planning department, sales, and so forth.

EDUCATING MANAGERS

A very important concern in management is training managers. Business

firms should make sure that their managers are well qualified to handle the jobs
assigned to them. The skills required of managers in the effective performance of
their jobs are those referred to as technical, human, and conceptual.
Among the three skills, technical is said to be the easiest to acquire. It can be
acquired through education in management courses, usually offered at the graduate
and undergraduate levels. Another way of acquiring technical skills is through
company sponsored training programs.
Human skills are more difficult to teach and learn. This is so because human
relations involve many complex emotional elements, and it is not easy to convince
students that a particular interpersonal approach is superior to one another.
Nevertheless, schools attempt to teach human skills by requiring business students to
take subjects in psychology, human behavior, and public relations. For the most part,
however, the prospective manager can acquire human skills through more direct
means like on-the-job training and observation hours.
Conceptual skills appears to be the most difficult to teach because it involves
mental habits that have to be developed early in life. As conceptual skills constitute a
large part of the managerial skills needed by top managers, executive development
programs were designed for them.

Assignment 1.1
PART I. ESSAY
1. Briefly explain the importance of studying management.
2. Contrast effectiveness with efficiency.
3. Construct a table showing the amount of skills required in each level of
management.
4. Choose one principle of management and provide specific business situation
where it can be used.
5. Choose a particular business or industry and rank the roles of managers
frequently being used.
6. Prepare a list of ten (10) engineers who became president or general manager
of a large company.