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The engineer gets employment in an educational institution Minimal engineering jobs such as retailing firms.

The engineer have


and is assigned as a teacher of engineering courses. Some of a slim chance of becoming the general manager or president. Th
them later become deans, vice presidents, and presidents. engineer may be assigned to head a small engineering unit of the
firm.
The capacity of an engineer manager to achieve The process of choosing a specific procedure or course of action
organizational objectives effectively and efficiently. from
among several possible alternatives.
refers to the activity combining technical knowledge with The engineer undertakes the activity of turning a product concept
the ability to organize and coordinate worker power, to a finished physical item.
materials, machinery and money.
The information requirements for a given decision vary Operations research involves the application of quantitative
considerably depending on the complexity and scope of the methods to decision making. OR has been defined by Miller and
decision to be made. During this step, the decision maker Starr as “ Applied Decision Theory”, in which the decision maker
gathers information that may provide insight as to which seeks scientific, logical or mathematical means. Observation,
alternative to choose analysis, hypothesis formulation and experimentation are the
methods generally used in ORT
people are reasonably sure about what will happen when The ability to develop alternatives (by ingenuity, research, and
they make a decision. The information is reliable and is common sense), is often as important as being able to select
considered to be reliable, and the cause and effect correctly among them
relationships are known
3 MAJOR STEPS IN DECISION MAKING
Career that brings together the technological problem- The engineer may find employment in the government performing
solving savvy of engineering and the organizational, any of the various tasks in regulating, monitoring, and controlling
administrative, and planning abilities of management in the activities of various institutions, public or private.
order to oversee complex enterprises from conception to
completion.
In this step, the manager examines the ranking of The decision making process involves making a choice between two
alternatives and selects the most acceptable alternatives, or more alternatives. In this step, the decision maker identifies
which is often the top-ranked alternative. On occasion, alternative solutions that meet the constraints outlines in step 2. In
extending circumstances caused managers to look past the most cases, the alternatives are chosen because they provided a
highest-ranking alternative and select a lower-ranking solution to the problem, but often one of the alternatives is to do
alternative. Decisions, especially those made collectively by nothing.
several managers, are often the result of creativity
6 steps in the Decision Making Process
The manager needs help in this situation, as well as
assistance in choosing the best alternative, is found in the
concept of the limiting or strategic factor.
This method used mathematical techniques for balancing It is an accounting tool used for the interpretation of accounting
waiting lines and services provided. When there is irregular information. The basic financial ratios compare costs and revenue
demand, waiting lines occur and manager must decide how for a particular period. These ratios bring out a relationship
to handle the situation. If people are waiting in queues are between two financial aspects.
not going to be provided quick service, they may go
elsewhere.
The engineer assists the company’s customers to meet their A set of activities directed at an organization’s resources with the
needs, especially those that require technical expertise. aim of achieving organizational goals in an efficient and effective
manner.
people have only a meager database, they do not know An engineer manager must be motivated to manage other people
whether or not the data are reliable, and they very unsure so that they may contribute to the realization of the objectives of
about whether or not the situation may change the organization.
Managers sometime see decision making as their central are charged with the responsibility of implementing the objectives
job because they must constantly choose what is to be and policies set forth at the strategic level of management. To do
done, who is to do it, and when, where, and occasionally this, the manager identifies specific tasks that need to be
even how it will be done. accomplished.
Constraints in some way limit the decision maker’s choices. Scientific discipline, which designs, implements and/or develops
Constraints could be defined by legal, economic or political models, processes and systems by taking into account the
considerations. Decision constraints are sometimes engineering relationships between the management tasks of
presented in terms of desired specification or performance planning, organizing, leading and controlling and the human
standards. element in production, research, marketing, finance and other
services.
This is an interesting technique used in analyzing a decision. This technique involves the building of a model that represents a
Through a graphic illustration, the alternative solutions can real or an existing system. These models are useful in evaluating
be identified and probability estimates are assigned to these and selecting the best one. The blueprint of a proposed building is
alternatives and pay-offs relating to alternatives can be an example of simulation. In recent years, computers are being
determined. widely used in simulation techniques. Role playing or teaching 10
concepts through case studies are some form of simulation
techniques

4 Requirements for the Engineer Manager’s Job The engineer is assigned to manage groups if people performing
specific tasks.
In this step, the decision maker evaluates each alternative. something that stands in the way of accomplishing a desired
A decision can be rendered based on available information. objective

The engineer is directly in charge of production personnel Specialized form of management that is concerned with the
or assumes responsibility for the product. application of engineering principles to business practice.
This technique is used in decisions involving the allocation This involves selecting the best strategy, taking into consideration
of resource or limited resources to reach a particular one’s actions and action of one’s competitors. Thus, it is a “conflict
objective such as, least cost, highest margin and so on. of interest” situation where one individual tries to win. McDonald
When these resources have several alternative uses. This contends that the strategic situation is the theory which lies in the
methods is used for solving simple, complex and routine instruction between two or more individuals, each of whose actions
problems. In order to is based on an expectation concerning the actions of others over
apply this method, the situation must involve two or more whom he has no control. When one individual wins, the other
activities competing for limited resources and all losses. Minimizing the maximum loss and maximizing the
relationships in the situation must be linear. minimum gain are two concepts used in the game theory.

Moderate degree of engineering jobs such as transportation This is the point of ultimate decision making, although decisions
companies. The engineer in this level may be assigned to must also be made in the other steps of planning—in selecting
head the engineering division and will feel the need for goals, in choosing critical premises, and even in selecting
management skills. alternatives

complete specific tasks as directed by the tactical-level A plan cannot be said to exist unless a decision–a commitment of
managers resources, direction, or reputation–has been mad

This tool is used in decision making to figure out how much factual information may exist, but it may be incomplete. To improve
more output will result if one or more variable (worker) is decision making, one may estimate the objective probability of an
added. Samuelson defines a marginal product as the extra outcome by using, for example, mathematical models. On the other
product or output added by one extra unit of that factor. hand, subjective probability, based on judgment and experience,
While other factors are being held constant. This technique may be used.
is particularly useful for evaluating alternatives in the
decision making process.

The engineer works as consultant of any individual or A set of activities directed at an organization’s resources with the
organization requiring his services. aim of achieving organizational goals in an efficient and effective
manner.

The principle of the limiting factor states that, by determine long-term strategies and se corporate objectives and
recognizing and overcoming those factors that stand policy consistent with these objectives
critically in the way of a goal, the best alternative course of
action can be selected
This is another tool which enable a manager to see the effects of
alternatives available based on price, fixed cost, and variable cost
per unit. With this tool it is possible to determine what will be the
break-even point for a company as a whole or any of its product. At
break-even point, total revenue equals total cost and there is no
profit.

Can be determined by non-quantitative means, such as The engineer is engaged in the process of learning about nature and
intuition, facts, experiences and opinions codifying this knowledge into usable theories.

The engineer is either directly in charge of the construction The Possibility of becoming a successful manager can only be
personnel or may have responsibility for the quality of the achieves if those with the ability and motivation are given the
construction process. opportunity to manage.
It is defined as the selection of a course of action from among
alternatives; it is at the core of planning

The fusion of business and engineering principles. The engineer works in a unit where new products or parts are
tested for work ability.
The profession in which a knowledge of the mathematical High degree of engineering jobs such as construction firms. provide
and natural science gained by study, experience, and the biggest opportunity for an engineer to become the president or
practice is applied with judgement to develop ways to general manager. The engineer manager needs adequate
utilize, economically, the materials and forces of nature for management skills in order to function effectively in level three
the benefit of mankind. firms.

Can also be determined by quantitative means such as operations


research, linear programming, simulation, Monte Carlo, gaming and
program evaluation review technique.
This is another tool in decision making used for estimating The existence of a problem implies the need for a decision maker to
the profitability of an investment, calculating the payback make at least one decision, and typically a series of decisions, to
period, and analyzing cash inflows and outflows. Investment resolve a problem. In the first step, the decision maker sets the
alternatives can be evaluated using a discounted peso objectives for the decision.
analysis of cash inflows and outflows.

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