Managerial Skills For Engineers

‫وما توفيقي إال باهلل‬
EMPC 04
Leadership Development & Engineering Project Teams
Business Managerial Skills For Engineers
Customer
Leadership & Satisfaction
Teamwork
Market
Strategic
“BUSINESS LEARNING AND EXPLORATION”
Dr. Attia Gomaa

Industrial Engineering Professor & Consultant
Engineering and Science Services - American University in Cairo
BM
Managerial Skills For Engineers
Course Objectives:
• Improve Business & Managerial Skills
• Improve Leadership & Teamwork Skills
• Improve HRM Skills
• Improve Negotiation & Communication Skills
Course Contents:
1. Business & Managerial Skills

2. Leadership & Teamwork
3. Time Management
4. Human Resource Management
5. Performance Appraisal Management
6. Negotiation Management
7. Body Language
8. Problem Solving & Decision Making
BM Managerial Skills For Engineers 2
Business & Managerial Skills
Mind Your Own Business

Start it . . . Grow it . . . Own it!
Business & Managerial Skills - Basic Skills
Management skills including
Leadership, teamwork, planning,
Managerial organization, loading, leading,
Skills motivation, controlling, ... etc.
Business Technical
Skills Skills
General Business skills including Sector Specific Knowledge

financial, value engineering, decision including scope of work, design,
making, communication, negotiation, BOQ, resources, QA/QC, safety,
problem solving, Strategic management, standards, ... etc.
... etc
What is Process Management?
• Management of business processes
• How to structure the processes and manage resources

to develop the appropriate capabilities to convert
inputs to outputs.
INPUT PROCESS OUTPUT
FEEDBACK

All Managers are Operations Managers
• All managers must transform inputs into outputs
• Example: Accounting Manager
– Inputs: data, information, labor

– Process: application of accounting principles and knowledge
– Outputs: accounting reports, knowledge of performance, ...
• All managers have an ―operation‖ to run

Business Process Map
Scope of Work
Management
Customer
Supplier Resources Final Product
Manpower Quality
OUTPUTS
INPUTS
Materials Delivery
Methods Process Time
Machines Price
Money

Right
Right Scope of Work
Price
Customer
Satisfaction
Right
Time Right
Quality

Promotion Products
Target
Market
Place Price
The target markets determine the production plan,

Not vise versa.

Material
Method Productivity
Productivity
Resource
Productivity
Manpower
Productivity Machine
Productivity
Optimize the Business Assets

= Value of things used in the business
Resource Productivity
Root Cause Analysis
Skills Method
Material Machine
Environmental Working
Conditions
Actions
Corrective Prevention Proactive

Policy Policy Policy
What is Business Management?
BM is a systematic approach to Optimize:
Customer Resource
Satisfaction Productivity
• Right Scope of Work Right Resources:

• Right Quality • Right Material
• Right Time • Right Machines
• Right Cost • Right Manpower
• Right Method
• Right Money
Business Long Term Continuous Improvement

The Critical Balance in Business Management

Product
Organization
Company
Business
Enterprise
The Key to Business Management Success

What Is Business Management?
Working with people and resources to accomplish the goals
of the Business

Business Management Process
It is a philosophy for long term continuous Improvement
It is a systemic approach for total productivity improvement

How to achieve the targets and overcome the constraints?
Current Situation
Gap Analysis
(1)
(6) Benchmarking (2)
Control Goals & Targets
Management
(5) (3)
Leading Planning
(4)
Organization

‫‪Current Situation‬‬
‫دراسة وتحليل الوضع الحالي‬
‫‪Gap Analysis‬‬
‫)‪(1‬‬
‫‪Benchmarking‬‬
‫مثال يحتذي به (قدوة)‬
‫)‪(6‬‬ ‫(مقارنة مرجعية)‬ ‫)‪(2‬‬
‫‪Control‬‬ ‫(أداء جيد سبق حدوثه‬ ‫‪Goals  Targets‬‬
‫)‪(Actual / Planned‬‬ ‫داخلي – خارجي)‬ ‫األهداف‬
‫التحكم‬ ‫(المستهدف تحقيقه‬
‫(المراقبة والتقويم)‬ ‫في المدي البعيد والمتوسط)‬
‫‪Management‬‬
‫العملية االدارية‬
‫)‪(5‬‬ ‫)‪(3‬‬
‫‪Leading‬‬ ‫‪Planning‬‬
‫التوجيه‬ ‫التخطيط‬
‫(المتابعة المستمرة‬ ‫(المخططات الزمنية لألنشطة‬
‫)‪(4‬‬ ‫والموارد والتكاليف)‬
‫وتوجيه األداء)‬ ‫‪Organization‬‬
‫التنظيم‬
‫(الهيكل التنظيمي والمسئوليات)‬
‫‪BM‬‬ ‫‪Managerial Skills For Engineers‬‬ ‫‪18‬‬
Business Planning & Control Cycle
Status Analysis
Benchmaking
Reporting
SMART
Objectives
Control Planning
Implementation

Benchmarking
Best of the best
External
Benchmarking
Internal
Benchmarking
Target Best
Practices,
Processes &
Current Products
“Until you take the first step, it will not be possible to see the next step”
Benchmarking
• Searching out and adopting best practices

is integral to effective implementation
• Benchmarking is the backbone of the process of

identifying, studying, and implementing best
practices
• Key tools to promote continuous improvement

– TQM
– Six sigma quality control
– Business process reengineering

Brainstorming, 1950:
Problem-solving Approach
Leadership & Team Work
Site
Leader
Design Quality
Mind maps
to arrange and develop ideas.
"Never cut what you can untie” Team size 9±3

© 1995 Corel Corp.
SMART Objectives  Goals & Targets
Plan Your Road Map
Writing down your goals creates the

roadmap to your success.

Goals should be SMART
Specific Measurable Applicable
Reliable Timely

SMART Objectives
Targets = Medium Term (<= year) SMART Objectives
Goals = Long Term (> year) SMART Objectives
SMART  Main 5 Parameters

S = Specific
(Scope of Work, Bill of Quantity, Quality, Performance, Cost, Tech. Standard, etc.)
M = Measurable
(Certain value, range, parameters, indicators, Specs., etc.)
A = Applicable
(Achievable, Flexible, Most likely, Working condition etc.)
(should be customized)
R = Reliable
(Reference, Accuracy, Assurance, Trust, Risk assessment, Positive, Convince, etc.)
T = Time frame
(Certain duration: Week, Month, Annual, 2 years)
(Certain date: Start date, Finish date)
Planning Levels Environmental
Forecasting
Long term – Medium term – Short term
Long range
Medium range Strategic Planning
Short
range
Very
Short
range
Management
Action
Now 2 months 1 Year 5 Year
Forecast Accuracy
Risk Tolerance (Most Likely, Most Common) Risk
 0 to 3%  3 to 5%  5 to 10%  10 to 25%
Day to week Week to 3 M 6 M to 1 Y 2 Y to 5 Y

Planning Levels
Management Targets Environmental
Action Goals Forecasting
Short Term Long Term

>= 3 Month <= 2 Year Years
Day
Medium Term
(6 to 12) Month
Operational Tactical Strategic

Planning Planning Planning
Action Plan
What
Should be
done?
Activities When?
Scope
Specific Schedule How?
Measurable Duration
Start Resources: Where?
Finish - Manpower
- Machines Location Responsibility?
- Materials Indoor
Outdoor Leader
- Method
Contractor Department
- Money
Manager
Engineer

Planning:
Inputs: Scope of work & BOQ
Normal
Planned Performance Plan
Constraints  a) Limited Res. b) Limited Time c) Limited Budget

Target
Plan
Planning:
Scope of work = 30,000 m3 Execution
Eq. Perf. 30 m3/hr

10 day 10 hr/day
10 + 20% = 12 Eq.
Normal
Plan
Eq. rate 1000 LE/day Planned Performance
10*12*1000 = 120,000 LE
Target
Constraints  a) 8 Eq. b) 8 day c) 100,000 LE Plan
Project Planning:
Scope of work:
Activity: Execution BOQ = 30,000 m3
Time Schedule:
Duration: 10 day
Resource Schedule:
Equipment Perf. 30 m3/hr Working condition: 10 hr/day
Number of Equipment = 10 + 20% = 12 Eq
Cost Schedule:
Equipment cost rate 1000 LE/day
Total Cost = 10*12*1000 = 120,000 LE
Constraints:
a) 8 Eq. b) 8 day c) 100,000 LE
Target Plan
Activity: Excavation BOQ= 30,000
Duration: 10 day Overtime: 3 hours
No. of Eq.: 8 Excavator
Total Cost: 100,000 LE
Project Planning:
Scope of work:
Activity: Execution BOQ = 30,000 m3
Time Schedule:
Duration: 10 day
Resource Schedule:
Equipment Perf. 30 m3/hr Working condition: 10 hr/day
Number of Equipment = 10 + 20% = 12 Eq
Cost Schedule:
Equipment cost rate 1000 LE/day
Total Cost = 10*12*1000 = 120,000 LE
Constraints:
a) 8 Eq. b) 8 day c) 100,000 LE
Target Plan
Activity: Excavation BOQ= 30,000
Duration: 8 day Overtime: 5 hours
No. of Eq.: 8 Excavator
Total Cost: 100,000 LE
Multi-Project Planning:
Scope of work: Design for 3 Projects (A, B & C)
A  500 man-hour B 600 man-hour C 800 man-hour
Time Schedule:
A  3 month Start: 1/5/2010 Finish: 30/7/2010
Resource Schedule:
Design Engineer  180 man-hour/month
Resource profile ???
Cost Schedule:
Labor cost rate = $10/man-hour for in-source & 15 for out-source
Labor Cost profile ???
Constraints:
Available No. of Engineers = 10 Outsourcing = ??
Target Plan

Leading

Control:
Actual Target
Performance Performance

Control:
Information Collection
Measure
Performance
Evaluate
Performance
Take Corrective
Action

Control Cycle

Business
Planning & Enterprise Chairman
Control Cycle
• Benchmarking
KPI Top
• SMART Objectives
(Key Performance Management
Indicators)
Middle • Targets
Performance • Plans
Evaluation Management
Operational Detailed
Feedback Management Plans
Work
Site  Implement Orders
Business Skills
• Leadership • Communications
• Team building • Problem solving
• Planning • Supporting
• Directing • Delegating
• Organizing • Negotiating
• Motivating • Managing conflict
• Controlling • Coaching
The skill set for a good general manager!!

BEST PRACTICE SOURCES
Company
Visits
Workshops Technology
& Meetings Vendors
Advanced
Conferences
Programs
BEST
Literature PRACTICES Corporate
Review Handbooks
Panel of Telephone
Experts Discussions
Consulting
Experience

Pricing for Profit
Profit = Revenue - Cost

The Role of Marketing:
Driving Revenue
Objectives:
Customer Oriented
Customer Satisfaction
Customer is the king of market
Customer Relationship Management (CRM)
Pricing for Profit
Average Production Quantity
Price
Value Added (Revenue)
Variable
Break-even
Costs
Fixed Total cost

Costs
Profit

Pricing for Profit
Average Production Quantity
Price
Value Added (Revenue)
External
Break-even
Costs
Internal Total cost

Costs
Profit

Pricing for Profit
Average Production Quantity = 1750 ton/day
Value Added Revenue

1,600,000 2,100,000
LE/day
Break-even External
1250 ton/day 500,000
Internal Total cost = 1,500,000

1,000,000
Profit
600,000

Business Goals Business Activities
Profitability
Financing Operating
Liquidity Investing

Assets
The economic resources owned by a business that can be
used for future operations
Fixed Assets: • Land

• Building
• Equipment
Current Assets:
• Cash
• Accounts Receivable
• Inventories
• Raw Materials
• Supplies
Business Value Chain
Research
and
Development Process
Service Design
Customer
Focus
Distribution
Production
Marketing

A Firm’s value offer
Brand Product
Store experience Services
Value offer
Promotion Price
Communication Customer relation

Business Strategic Management
(2) Strategic
(1) Benchmarking Planning
VALUE
VALUE
(3) Implementation

Strategic Planning
A Systematic Methodology to design the business future.
Present
Situation Strategic Vision
Where the
Plan
A B organisation wants
to go in the future?
B Vision
Based on
APresent Situation Future

Thinking
Business Strategic Management
Top Middle Management Operational Management
Change Management
Vision, Values
and Mission
Analysis
Strategic Control
Objectives
Strategy Implementation
Action
Plans
Strategic Strategic
Planning Control
Main Pillars:
1. Strong Leadership
2. Unified Teamwork
3. Consistent Benchmark
4. Right Information
5. Effective Brainstorming
Vision, Values and Mission
Vision
is a clear statement for future image (long term direction) across the business
What we are looking for future? Where the organization is headed?
Vision Should be:
Future oriented, Ambitious, SMART, Very short & To the point
Values:
What we believe in? A Guide for behavior.
How we treat each other? How we treat the customer?
Values Should be:
Change Management, Behavior Skills, Terms, (5 to 8)
Mission:
How to reach the vision? Why we exist? What is the core purpose?
Mission Should be:
Market focused, Inspiring, Short
Example, ABC Steel Company
Our Vision is to be
one of the best steel companies in Egypt & Middle East.
Values:
We believe that strong leadership, unified teamwork, highly skilled manpower,
customer satisfaction and customer relationship are the key to achieve our
goals.
Mission:
ABC’s core mission is to produce and supply the highest quality products to our
customers up to international standards in steel industry.
Comment:

Example, XYZ Consultant Company
Our Vision is to be
the number one consultant company in the construction projects
in Egypt & Middle East.
Values:
Strong leadership, Effective communications, Quality, Integrity, Customer
Service, Customer satisfaction, and Problem solving.
XYZ Mission
to provide high quality consultant services to our clients up to international
standards in construction projects.
Comment:

10 Deadly Mistakes of Business
1. Weak Leadership
2. Lack of Strategic Plan
3. Poor Control
4. Lack of Experience
5. Incorrect Estimation & Pricing
6. Improper Inventory Control
7. Limited Resources
8. Weak Marketing
9. Poor Location
10.Limited Budget

Putting Failure Into Perspective
If at first you don’t succeed, try, try again!

How to Avoid the Pitfalls
• Know Your Business in Depth
• Develop a Solid Business Plan
• Manage Financial Resources
• Understand Financial Statements
• Learn to Manage People Effectively
• Keep in Tune with Yourself
Stress!!!
Brain Storming
Group Size 2 to 3
Designing your Business Strategy

1. What is your business definition?
2. What is your business strategy?
3. What is the capability of your business to

implement your strategy?
4. What actions will you take to verify your

business strategy and capability plan?

MBA  Master of Business Administration
Human Resources
/Organizational
Behaviour
Marketing Finance
Management
People
Production / Processes
Functional Areas Accounting
Operations
Information Systems Strategic

Management

Business & Managerial Skills
Choose the most appropriate answer for each of the following questions:
1- Target is a ...
a) general objective
b) smart objective
c) measurable objective
2- Management process is a ...

a) systematic approach
b) production policy
c) information approach
3- Basic Managerial Function are …

a) human, financial, physical, and information
b) planning, organizing, leading, and controlling
c) targets, information, planning, and controlling

4- Business skills including …..
a) financial, value engineering, decision making, negotiation, problem solving, ... etc
b) leadership, teamwork, Planning, organization, motivation, controlling, ... etc.
c) scope of work, design, BOQ, resources, QC/QA, Safety, ... etc.
5- Project management skills including …..

6- Technical skills including …..

c) scope of work, design, BOQ, resources, QC/QA, Safety, ... Etc.

Leadership & Teamwork

Manager / Leader Skills
Training Program:
Project Skills Leadership, teamwork,
Planning, organization,
40% loading, motivation,
controlling, .. etc.
Relative weights
Financial indicators,
decision making,
communication, Technical Skills
negotiation,
20%
problem solving,.. etc Scope of work, Conceptual design,
BOQ, critical resources, QC/QA,
Safety, .. etc.
40%
Business Skills

Manager / Leader Skills
3) 2)
80% Teamwork Business
Skills Skills
4) Communication Skills
(6 Rights)
5) Technical Skills
20% Implementation Design Process
Scope of work, Design, BOQ, Resources, QC/QA, Safety, ... etc.

‫‪Manager / Leader Skills‬‬
‫)‪3‬‬ ‫)‪2‬‬
‫‪Teamwork‬‬ ‫‪Business‬‬
‫‪Skills‬‬
‫‪80%‬‬ ‫‪Skills‬‬
‫مهارات فريق العمل‬ ‫مهارات التعامل‬
‫المؤسسي‬
‫‪4) Communication Skills‬‬
‫)‪(6 Rights‬‬
‫مهارات االتصال مع مختلف المستويات‬
‫‪5) Technical Skills‬‬

‫‪20%‬‬ ‫مهارات النواحي الفنية والتنفيذية لمختلف نواحي العمل‬
‫مجال العمل‪ ،‬المواصفات المطلوبة‪ ،‬حجم األعمال‪ ،‬الموارد األساسية‪ ،‬جودة األعمال‪ ،‬دواعي السالمة‪ ،‬الخ‬

Communication Skills
(6 Rights)
Information Quality
Right By the Right

Information Cost
To Right Refer to
People Right
Reference
At the Right In the Right

Time Form
(6 Rights)
• Right Information  Measurable
• Right People  Management Level
• Right Form  Clear Information
• Right Time  Just In Time
• Right References  Source
• Right Cost  Resources

What is Communication?
Communication is a process of Transferring massage from sender to
receiver through channels.
Says what?
Massage
Who? Sender Receiver To whom?
Channels & means
In which channel?
Feedback
With what effect?

Communication Process

Communication Goals:
To change behavior
To get and give

To get action
Information
To persuade To ensure understanding

What are the most common ways we communicate?
Types of
Communications

Management
Support
Employee
Rewards Involvement Teamwork
Training

What is the difference between
Manager Leader
Manager: Leader:
• Focus on things • Focus on people
• Do things right • Do the right things
• Plan • Inspire
• Organize • Influence
• Direct • Motivate
• Control • Build
• Follows the rules • Shape entities

Manager Leader
Common Activities
• Planning
• Organizing
• Leading
• Controlling

Planning
Managers:
• Planning
• Budgeting
• Sets targets
• Establishes detailed steps
• Allocates resources
Leaders:
• Devise strategy
• Set direction
• Create vision

Organizing
Managers:
• Create structure
• Job descriptions
• Staffing
• Hierarchy
• Delegate
• Training Leaders:
• Get people on board for strategy
• Communication
• Networks

Leading & Directing
Managers:
• Solve problems
• Negotiate
• Bring to consensus
Leader:
• Empower people
• Cheerleader

Controlling
Managers:
• Implement control systems
• Performance measures
• Identify variances
• Fix variances
Leaders:
• Motivate
• Inspire
• Give sense of accomplishment

Managerial Leadership Styles
Most Common
Autocratic Style
Free-rein Style
Democratic Style
Contingency Approach
The appropriate style in any situation is contingent
on the unique elements of that situation

Dimensions of Leadership:
• Bright, lazy—staff officer

• Energetic, dull—frontline soldier
• Bright, energetic—field commander
• Lazy, dull—left to find their own level of effectiveness

Team Work
Not all groups are teams.
A Team is a group of people who collaborate
and interact to reach a common goal.
A Team is a collaborative group, not just people taking
orders and carrying them out.
When team members participate in setting a goal, they are

more committed to its accomplishments.
There is no “I” in “TEAMWORK”.

Group Team work
Traditional Work Groups Teams
Leader dominates & control The leader is a facilitator & coach
Goals set by organization Goals set by team members
Leader conduct meetings Meetings are participative discussions
Leader assigns work Team plan work assignments
Emphasis on individual performances Emphasis on team performance
Workers compete with one another Members work as cooperative units
Communication flows down from the Communication flows upward &
leader downward
Information is often hoarded Information is shared
Decisions made by leader Decisions made by the entire team
“There is no “I” in the teamwork”
Teamwork:
T Trust
E Effective communication
A A positive ―can-do‖ attitude
M Motivation to perform and improve
W We mentality
O Ownership of work
R Respect for everyone
K Keeping focused on customer goals

Keep in mind: Love your brother as yourself
Luke 10:27
" 'Love the Lord your God
with all your heart and
with all your soul and
with all your strength and
with all your mind' ; and,
'Love your neighbor as
Love your team as yourself yourself.' "

Team Process
BEGINNING
(Discovery)
Persons Needing Care

CARING BUILDING
(Organizing and Doing) A Team Approach (Support Team
Orientation)
Persons Who Care
CONNECTING
(Setting Expectations)
SUSTAINING (Keeping Teams Healthy)

Team work  Unified Team
(8) (10 Pillars) (1)
Love Leader
(9) (2)
Respect Vision &
(10) Mission
Inspire (3)
SMART
Targets
(4) Organization Structure (5) Responsibility

(6) Communication Management (7) Time Management

• That Mean How To Know Our Goals And How To Achieve It .
• And We Can Do It By :
Establish S.M.A.R.T Goals
S : Specific M: Measurable A :Ambitious
R :Reachable T :Time Bound

Establish S.M.A.R.T Goals :
Ask your Self 5 Simple Questions, and you Need 5 Strong

YES Answers
Do each of your members know exactly what they

need to do to achieve your Team Goals ??
YES ( ) NO( )

Can each Team Member find out at any Time,

How far they have come? &
How far they have to go ?
YES ( ) NO( )

Do your Team Goals Force each Member to

Stretch in order to Achievement?
YES ( ) NO( )

Are you Positive that the Goal is Within your

Team’s Reach ??
YES ( ) NO( )

Does your Goals Have an Absolute Deadline ??
YES ( ) NO( )

You can’t make People like each other, and
you can’t make someone feel like a Belong
Belonging is a choice, Each member miss

make. It’s an Attitude, and you can coach
Good Attitude
Start with you as a leader, Establish what we

call (TEAM MEMBER BILL OF RIGHTS)

Member’s Bill of Rights
• To be respected
• To be heard
• To try & fail
We suggest you keep Bill of Right Simple..But not Neglected,

Because if they Neglect it..
YOU WILL BE NEGLECTED AS A LEADER

Dangerous of the Go-Between
Example: If the leader notice some thing wrong between two
members from his team shouldn’t make this:
• Appear to take side

• Tempted to Exaggerate
• Wrong massage of responsibility

Solution: MEDIATING A DISPUTE
A leader must not resolve personal problems of
members of the team, but teach them how to
solve themselves.
1. Bring them together

2. Set the ground rules
3. Maintain control
4. Remain impartial
5. Gather solution (leader shouldn’t offer solutions)
6. Agree together & documentation
7. Schedule Follow up

Performance improvement :
Deal with performance not attitude
1- State what you’ve observed “ not what you feel”
2- Wait for response
3- Remind them of the goal
4- Ask for their specific solution
5- Agree together
6- Follow through

Leader & Teamwork
1- You can’t make your team like each other, but you can help them to ….
a) help each other
b) support each other
c) understand each other
2- To improve the team performance, deal with ….

a) attitude not performance
b) performance not attitude
c) actual performance not planned performance
3- Don’t go back home before show your team your ……..

a) smile
b) appreciation
c) respect

4- If you arrive at work in a bad mood, do you...?
a) try to avoid others
b) warn others to stay clear
c) leave it at the door
5- When offered a juicy bit of gossip at work, do u ...?

a) listen ,but keep it to yourself
b) get it all & pass it on
c) refuse to hear it
6- Do u do what u say u will do?

a) eventually
b) if it matters
c) always

7- If what i say offends u ...
a).. i'll wait until you're not around
b).. i'm just being real
c).. i'll stop
8- When it comes to sexual attraction at work..?

a) look ,but don’t touch
b) look ,if they want u to
c) don’t look ,don’t touch
9- Who ever said live & let live ..

a) .. was sincere but naive
b) .. had no strong beliefs
c) .. got it right
10- Always using please and thank u at work is ..

a) .. nice ,but impractical
b) .. annoying & fake
c) .. common courtesy

Brain Storming
Group Size 2 to 3
How to be a good leader?

# Skills Approach Comment
1
2
3
4
5
6
7
8
9
10

Brain Storming
Group Size 2 to 3
How to be a good leader?

T
E
A
M
L
E
A
D
E
R

Brain Storming
Group Size 2 to 3
How to be a Teamwork?
1
2
3
4
5
6
7
8
9
10

Brain Storming
Group Size 2 to 3
How to be a Teamwork?
T
E
A
M
W
O
R
K

Time Management

Time Concept:
Time is life Safety, Health, Environmental
If you waste your time, you waste your life
If you respect your time, you respect your life
If you master your time, you master your life
Time is money 
If you fail to plan, you plan to fail
If you overload, exhaust, stress 
You have bad time management
If you are not early, you are late
If you fail to control the events in your life,

They will control you!!
So, Make your time visual
Plan each day, each week, each month, .. etc.
What are your tasks? or
What did you do last week?
Hours Average %
Direct Activities:
• Processing (Job / Working) 3.0 30%
• Reworks (Bad quality) 1.0 10%
Indirect Activities:
• Phone calls 1.5 15%
• Meetings & Negotiation 1.5 15%
• Conflict & problem solving 1.0 10%
• Transportation 1.0 10%
• Others 1.0 10%
• Total 10 100%
What is your time productivity?

1996:
Egyptian  24 min/day = 24/(8*60) =5 %
Japanese  150 min/day = 150/(8*60) = 31 %  (1 : 6)
What are your tasks? or
What did you do last week?
Direct Activities: Hours Average %
• Processing (Job / Working) 2.0 25.0%
• Reworks (Bad quality) 0.5 7.5%
Indirect Activities:
• Phone calls 0.5 7.5%
• Meetings & Negotiation 1.0 12.5%
• Conflict & problem solving 0.5 7.5%
• Transportation 0.5 7.5%
• Others 3.0 37.5%
• Total 8.0 100%
• Utilization factor = 2/8 = 25%
• Unused capacity = 75 % (Losses/ Wasters)  Min. to 50%

Maintenance Time Analysis  (2004)
Idle/Breaks
Personal 10% Pick/Put Tools
5%
12%
Travel
15%
Work
25%
Waiting
12%
Work Rules
5%
Instruction
16%

Personal Idle/Breaks
5% 10%
Travel
10% Pick/Put Tools
8%
Waiting
6%
Work Rules
5%
Work
46%
Instruction
10%

Top Time Wasters
(Root Cause of time losses)
1. Interruptions: Telephone and drop-in visitors 17%
2. Reactive / Shifting priorities / Classification analysis 15%
3. Lack of goals, targets, priorities, and planning 14%
4. Attempting too much, and an inability to say ―No‖ 12%
5. Personal disorganization, Bad Visual Control 10%
6. Lack of self-discipline, unsafe acts, unsafe conditions 8%
7. Meetings, brainstorming, communication 7%
8. Incomplete or delayed information 6%
9. Paperwork and red tape 5%
10. Confused responsibility and authority 4%
Others 2%
What is Time Management?
Time Management is systematic approach to

achieve certain targets and overcome certain
constraints, through optimize:
the Right information,

to the Right people,
at the Right time,
in the Right forms

What is Time Management?
How to achieve Which way are you

your targets? going?
What to do?
What is your Schedule?
Time Management Cycle:
Objectives
1) Targets
2) Analyse
7) Revise 3) Activity list
6) Review 5) Implement 4) Time schedule

Classification Analysis (ABC Analysis)
 Rule 80/20  Priority rule  Class A

Level description Total Value % Total Item %
Level
A Critical >= 80 <= 20
B Medium 15 30
C Non-critical 5 50
 Important matrix:
Urgent Not urgent
(due soon) (not due soon)
Important A B
Not important B C
 Top (10, 5, or 3) items; based on the project size (>= 80% Value)
Wilfredo Pareto 1848-1923
• Italian Economist
• 1906- ―Pareto Optimality‖
• ―80/20‖ rule: 80% of the wealth is controlled

by 20% of the people.
• 80/20 rule believed to apply much more

widely

Classification Item list:
(Rule 80/20) Item Duration Annual
Code (Hour) Frequency
S11 10 1000
S12 40 100
S13 100 10
Top 2 Items S14 30 200
S15 20 500
S16 200 600
S17 100 40
S18 55 950
Based on this information, S19 80 30
classify & discuss these S20 100 20
items.

Item Duration Annual Annual
Code (Hour) Frequency Hours Annual
S11 10 1000 10000
S12 40 100 4000
S13 100 10 1000
S14 30 200 6000
S15 20 500 10000
S16 200 600 120000
S17 100 40 4000
S18 55 950 52250
S19 80 30 2400
S20 100 20 2000
Total 211650

Item Duration Annual Annual
Code (Hour) Frequency Hours
Sorting
S16 200 600 120000
S18 55 950 52250
S11 10 1000 10000
S15 20 500 10000
S14 30 200 6000
S12 40 100 4000
S17 100 40 4000
S19 80 30 2400
S20 100 20 2000
S13 100 10 1000
Total 211650

Item Duration Annual Annual Cumulative Cumulative Item
Code (Hour) Frequency Hours value $ % Level
S16 200 600 120000

S18 55 950 52250
S11 10 1000 10000
S15 20 500 10000
S14 30 200 6000
S12 40 100 4000
S17 100 40 4000
S19 80 30 2400
S20 100 20 2000
S13 100 10 1000
Total 211650

Item Duration Annual Annual Cumulative Cumulative Item
Code (Hour) Frequency Hours value $ % Level
S16 200 600 120000 120000 56.7% A1

S18 55 950 52250 172250 81.4% A2 A
S11 10 1000 10000 182250 86.1% B1
S15 20 500 10000 192250 90.8% B2
S14 30 200 6000 198250 93.7% B3 B
S12 40 100 4000 202250 95.6% C1
S17 100 40 4000 206250 97.4% C2
S19 80 30 2400 208650 98.6% C3
S20 100 20 2000 210650 99.5% C4
S13 100 10 1000 211650 100.0% C5 C
Total 211650

PARETO ANALYSIS
S16
S18
S11 S15
S14
S12 S17
S19
S20
S13
Item

PARETO ANALYSIS
S16
S18
S11 S15 S19

S14 S12 S20 S13
S17
PARETO ANALYSIS
Class
A
Class
C
Class
B
S16
S18
S11 S15 S19

S14 S12 S20 S13
S17
Activity List  Monthly
# Description Time Date # Description Time Date
1 11
2 12
3 13
4 14
5 15
6 16
7 17
8 18
9 19
10 20
Urgent (due soon) Not urgent (not due soon)

Important Urgent & Important Important Not Urgent
Do it Now Decide when to do it
Not Urgent Not Important Not Important Not Urgent
important Delegate it Dump it
Classification Analysis
A) Important and Urgent
What Who Time Date
B) Important
What Who Time Date
C) Urgent
What Who Time Date
D) To be Done
What Who Time Date

Time Schedule:  Monthly
Sat. Sun. Mon. Tues. Wed. Thurs. Fri.
Week
#1
Week
#2
Week
#3
Week
#4
Week
#5

Time Schedule:
Mon. Tues. Wed. Thurs. Fri. Sat. Sun.
Time
6am
7am
8am
9am
10am
11pm
12pm

Time Schedule:

Time Management Steps
1. Set written Goals for yourself

2. Break-down your tasks
3. Construct the task priority system
4. Determine task priority (A, B, C) and eliminate lesser important tasks
5. Define rule 80/20 task priority  Class (A)
6. Plan your time to sufficiently deal with important duties &
responsibilities
7. Develop master plan and action plans for time management
8. Plan - month, week, day (in line with your goals)
9. Start of what you & your team will achieve.
10. Review and update your plans
11. Evaluate performance
12. Don’t overestimate your time productivity
13. Take the corrective actions.

Project (Product / Service / Job) Time Management Steps
1- Scope 2- Main Activities 3- Priority Rules 4- Critical Activities
Definition (tasks) (Rule 80/20)
5- Critical Activities 9- Activity Sequencing

Description
7- Activity Definition 13- Schedule Development
10- Activity Duration

Estimating
6- Main Targets
(SMART Outputs)
11- Critical Resource 14- Cost Budgeting
8- Resource Allocation
15- Resource Plans

12- Cost Estimating
Development
16- Detailed Activities

18- Schedule Control 17- Schedule Review plans
19- Corrective Actions 20- Lessons Learned

Time Management
1- Rule 80/20 is a ……
a) classification tool
b) priority tool
c) analysis tool
2- Time management is systematic approach to achieve …..

a) certain targets
b) certain objectives
c) certain goals
3- Top time wasters are …….

a) Lack of self-discipline, meetings, paperwork and confused responsibility
b) Meetings, incomplete information, paperwork and confused responsibility
c) Interruptions, shifting priorities, lack of goals, attempting too much, and personal disorganization

Human Resource Management
Comment?
TURNOVER
MORALE
TURNOVER
MORALE
Satisfied Employees Are More Committed and Productive
• Job Satisfaction:
– Degree of enjoyment employees derive from their jobs
• High Morale:
– An overall positive employee attitude toward the workplace
• Low Turnover:
– A low percentage of employees leave each year
• Productivity
– Maximizing output from inputs
– Marginal cost = marginal benefit

Effective Motivation leads to desired behavior,
satisfaction, and performance
• Motivation:
– The set of forces that cause people to behave in certain ways
• So how do we do it already?
• Job Satisfaction
• High Morale
• Low Turnover
• High Productivity

Human Resource Management Process

Project Human Resource Management
Organization -
Structure
Job -
Description
Performance -
Appraisal
Training & -
Development
Motivation
Programs
Organization Structure
Key persons Managers
Top
Middle
Operational
Site
The Managerial Pyramid

Key persons Managers
Top
Company
Middle
Personnel R&D Marketing Production
Operational

Organization Structure (Key persons)
Project
Manager
Top
Design Resource Cost Planning Site

Middle
Manager Manager Manager Manager Manager
Operational
Operational management (engineers, etc.)

Chief Executive Officer
Organizational Charts

Top Organization Structure
Functional Organization
Managers
Supervisors
Engineers
Technicians Process Approach
1. Scope of Work
2. Organization Structure (Key persons)
3. Job Description
4. Information Flow Matrix
5. Reporting  Forms / Reports
(7 Rights)
Right
Right Forms
Person
Right Right
Position Time
Right Right
Responsibility Right Information
Job
description
Project Organization Structure
Project Top
Manager
Middle
Design Procurement Construction
Manager Manager Manager
Operational

Training & Development For Engineers
Engineer Skills (5 T . 5 M)
Technical Skills:
Customer & Scope of Work
Product Design, Quality & Safety
Process Design & Planning
Capital
Cost Estimation & Analysis
HSE Management
Human
Managerial Skills:
Leadership & Team work
Resource
Communication & Negotiation Management
Presentation & Technical Report Writing
Problem Solving & Decision Making
Customer Relationship Management

Process Engineer Skills
 Product Analysis  Choice of Machines and Equipment

 Function Analysis  Make/Buy Analysis
 Material Analysis  Facility Layout
 Customers Survey
 Process Planning
 Market Analysis  Gantt-Chart Techniques
 Production Control Techniques
 Operations Analysis  Storage and Purchase
Optimization
 Operations Process Charts
 Assembly  Organization
 Cost Estimation  Working Environment
 Time Measurement Techniques  Organization Theory
 Business Economy
 Product and Process Redesign
 Budget Techniques
 Creativity Techniques  Accountancy
 Design for Assembly
 Design for Manufacturing

Training Master Plan
Position: Production Engineer
Year Managerial Skills Technical Skills
2009 Management Systems Manufacturing Processes #1
Production Planning Manufacturing Processes #2
2010 Production Control Manufacturing Operations #1
Quality Management Manufacturing Operations #2
2011 Safety Management Advanced Technology #1
Market Study Advanced Technology #2

Master Training Schedule
Course Year / Month
Code 11 11 11 11 11 11 11 11 11 11 11 11 Total
01 02 03 04 05 06 07 08 09 10 11 12 2011
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
Total
Course
Total
Labor
Budget

Level of understanding
Training Time
Real
Project Real Project
Real Case
studies
Benchmarking
Details
Lecures Lecures
Overview
Lecure Time
Amount of time
Employee Absenteeism
• Voluntary absenteeism:
• Avoidable without justifiable cause (e.g., feigning illness)
• Involuntary absenteeism:
• Unavoidable with understandable cause (e.g., actual illness)

Controlling Absenteeism
Disciplinary Positive
approach reinforcement
Controlling
Absenteeism
Paid time-off Combination

(PTO) approach
“No fault”
policy

Employee Turnover
• The process in which employees leave an organization and have to be
replaced.
• Impact of Turnover:
– Inability to achieve business goals
– Loss of ―image‖ to attract other individuals
– High costs of turnover and replacement
Involuntary
Controllable Voluntary
Turnover
Uncontrollable Functional
Dysfunctional

Performance Appraisal Management
A systematic approach to measure, analysis, align and
improve the employee productivity for long term
continuous improvement.
Actual Performance “GAP” Optimal Performance

(Where you are) (Where you want to be)
Development Plan

Performance Management
Performance
Evaluation
Coaching and
Feedback
Performance
Planning

Performance Management
How to minimize this GAP?
35
30
25
GAP
20 Target
15
10
Actual
5
0
-5 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
-10
Months
-15
Current State Map Gap

Analysis
…
...
Future State Map

Managerial Levels
Top
Middle
Operational
Site
KPIs Skills

Performance Evaluation Levels
Staff
Appraisal Company
KPIs
Department Project
KPIs KPIs

Performance Appraisal For Engineers
SMART  Specific, Measurable, Applicable, Reliable, Time Frame
Appraisal Area Engineer Discipline
Site Design Safety Quality Planning Inventory
1- Safety 15 15 20 15 15 15
2- Quality 15 20 15 20 10 15
3- Performance 20 20 15 15 15 10
4- Resource Utilization 20 15 10 10 10 10
5- Documentation 10 10 20 20 20 20
6- Schedule & Follow-up 10 10 10 10 20 20
7- Communication 5 5 5 5 5 5
8- Attendance 5 5 5 5 5 5

Performance Appraisal For Site Engineer Year: 2011
Name: --------------------- ID: ----------- Department: --------------- Position: -------------
Appraisal Area Excellent Good Fair Poor Remarks
(10) (8) (6) (4)
1- Safety
2- Quality
3- Performance
4- Resource Utilization
5- Documentation
6- Schedule & Follow-up
7- Communication
8- Attendance
Overall Rating
Comment: Development Plan:  Training Plan
1- 1-
2- 2-
3- 3-
4- 4-

Star Diagram 2011
Safety
Quality
Attendance
Communication Performance
Schedule &
Follow-up Resource Utilization
Documentation
Name: xxxxxxx ID: xxxxxx Department: yyyyyy Position: zzzz
(10) (8) (6) (4)
1- Safety x
2- Quality x
3- Performance x
4- Resource Utilization x
5- Documentation x
6- Schedule & Follow-up x
7- Communication x
8- Attendance x
Overall Rating x

1- Needs Safety Awareness 1- OSHA Program
2- Needs Trouble Shooting Skills 2- Root Cause Failure Analysis
3- Needs Management Skills 3- Maintenance Planning & Control
4- 4-

Star Diagram 2010
Safety
Quality
Attendance
Communication 10 6 0 6 10 Performance
Schedule &
Documentation
Star Diagram 2011 / 2010
Safety
Quality
Attendance
Schedule &
Documentation
Star Diagram 2012 / 2011 / 2010
Safety
Quality
Attendance
Schedule &
Documentation
Performance Appraisal For Design/Quality Engineer Year: 2010
(10) (8) (6) (4)
1- Safety
2- Quality
3- Performance
5- Documentation
7- Communication
8- Attendance
Overall Rating
1- 1-
2- 2-
3- 3-
4- 4-

Performance Appraisal For Design Engineer Year: 2010
(10) (8) (6) (4)
1- Safety X
2- Quality X
3- Performance X
4- Resource Utilization X
5- Documentation X
6- Schedule & Follow-up X
7- Communication X
8- Attendance X
Overall Rating X
1- Management Skills 1- Advanced Planning & Control
2- 2-
3- 3-
4- 4-

Performance Appraisal For Safety Engineer Year: 2010
(10) (8) (6) (4)
1- Safety
2- Quality
3- Performance
5- Documentation
7- Communication
8- Attendance
Overall Rating
1- 1-
2- 2-
3- 3-
4- 4-

Department Control  Client Point of View
Financial: User / Customer:

- Number of Projects  6 - Number of Users
- Project Values  4 M$ - Number of Claims
- Cost Variance Ratio (+/- 10%) - Claim Rate
Process: (Time, Quality, Safety, etc) Engineers Skills:

-Time Schedule - Number of Engineers
- Schedule Variance Ratio (+/- 10%) - Engineer Productivity
- Quality Rate -
- Safety Level (Hazard. Unsafe, ..)

Project Control  Client Point of View
Financial: User / Customer:

- Project Value - Number of Claims
- Cost Variance Ratio (+/- 10%) - Claim Rate
Process: (Time, Quality, Safety, etc) Engineers Skills:

- Work Breakdown Structure (WBS) - Number of Engineers
- Time Schedule - Engineer Productivity
- Schedule Variance Ratio (+/- 10%) -
- Quality Rate
- Safety Level (Hazard. Unsafe, ..)

KPI Report
Overall Performance Trend Strength Points
Weakness Points Recommendations:

KPI Report – One Page Management
Short description:
Client: xxxx Project ID: xxxxx
Gas Pipeline 5 Km – Planned duration: 60 day - Lump-Sum Contract
Total Value 2,000,000 LE Actual Profit = 11 % < 18% Margin factor 140%< 150%
Losses Weakness Points:

37%
Total 1 – Estimation & Planning
Performance
2 – Feedback & Documentation
63%
3 – Critical Resources Productivity
Recommendations:
Strength Points:
1 – Standard Rates
1 – Duration 55 day (- 8%)
2 – Complete feedback (weekly)
2 – Quality rate (Very good)
3 – Welding Training plan
3 – Safety level (Very good)
Performance Management Process

Relationship of Performance Standards To Job
Analysis and Performance Appraisal
Job Analysis Performance Performance

Standards Appraisal
Translate job
Describes work and Describes the job-
requirements into
personal requirements relevant strengths and
levels of acceptable/
of a particular job weaknesses of each
unacceptable
individual
performance

Employee Performance Management Steps:
(2) Performance (3) Performance

(1) Job Analysis
Standards Appraisal
Describes work and Translate job Describes the job-
personal requirements requirements into relevant strengths and
of a particular job levels of acceptable/ weaknesses of each
unacceptable individual
performance
4) Rating Scale: • What to measure?
1. Work output (quality and quantity)
4 - Excellent (Exceeds Standards)
2. Personal competencies
3 - Good (Fully Meets Standards)
3. Goal achievement
2 – Acceptable (Usually Meets Standards) 4. Attendance
1 – Unsatisfactory (Fails to Meet Standards)
Employee Appraisal
5) Feedback Manager Appraisal
Face to Face Meeting
6) Update Signatures
A Graphic Rating Scale with Unclear Standards
Note: For example, what exactly is meant by

―good,‖ ―quantity of work,‖ and so forth?

Graphic Rating Scale with Space for Comments

Motivation Programs

Organizational Reward Systems
• Main objectives of reward programs
– Getting qualified people to join the organization
– Keeping employees coming to work
– Motivating employees to achieve high levels of performance
• Any reward package should be…

– Sufficient to satisfy basic needs
– Considered equitable
– Individually oriented

The Equity Comparison Process
• Equity theory describes the equity comparison

process in terms of an input-to-outcome ratio.
Outcomes (self) Outcomes (other)

compared with
Inputs (self) Inputs (other)

Negative and Positive Inequity
An Equitable Situation
Other
Self
$2 $4
= $2 per hour = $2 per hour
1 hour 2 hours

Negative Inequity
Self
Other
$2 $3
= $2 per hour = $3 per hour
1 hour 1 hour

Positive Inequity
Other
Self
$3
= $3 per hour $2
1 hour = $1 per hour
1 hours

The Reward Process
Intrinsic
Ability rewards
and
skill
Motivation Performance Performance
to exert results: Satisfaction
evaluation
effort individual
Experience Extrinsic
rewards
Feedback

Extrinsic and Intrinsic Rewards
• Extrinsic Rewards
– Salary, wages, fringe benefits
– Interpersonal rewards
– Recognition and promotions
• Intrinsic Rewards
– Completion
– Achievement
– Personal growth
– Autonomy

Does money motivate?
Yes, but ….
• How much money?

• For what?
• How easy or difficult will it be?
• When do I get paid?
• Does my work lead to the results?
• What else could affect the results?
• What do I give up to get the rewards?
• Do I want the reward?

Motivation according to managers
• Pay more,
• Give them a bonus,
• Introduce an incentive scheme,
• Develop a gainsharing plan,
• Introduce commissions
• What about a profit sharing scheme
All of which are difficult and very expensive

The best motivators you can find
Thank you
Well done
That was an excellent job
That was really useful
I/we appreciate the work you did

Employee Performance Management
1- Employee performance management is a systematic approach to …..

a) increase the work productivity.
b) measure, analysis, align and improve the employee productivity.
c) maximize the employee performance.
2- The main parameters for employee performance evaluation are …

a) Work output, Personal competencies, Goal achievement, and Attendance
b) Attendance, Planning skills, Job achievement, and Relations
c) Attendance, Planning skills, Job achievement, and Documentation
Design & Discuss a performance evaluation form for each one of the following:
a) Production engineer
b) Technical worker
c) Managerial employee

Negotiation Skills For Project Engineers
‫مهارات التفاوض والتفاهم لمهندسي المشاريع‬
Negotiation is often central to our lives.

How to create a roadmap for successful negotiation?

Negotiation Skills  Life Skills
KEEP AN OPEN MIND!

Negotiation is a Life Skill
Sales Workplace
Customers
Interviews
Negotiation Claims
scenarios
Job offers Family
Salary Friends
Problem
Solving

What is Negotiation ?
Negotiation is interaction process
between two or more parties to
achieve certain targets.
A communication process in which

two or more parties attempt to
agree on certain points about
different needs.
Confer and discuss to reach an

agreement
Negotiation is a part of our life

Negotiation is a key skill for life
Negotiation Pillars
‫أركان التفاوض‬
Needs Tolerance
‫احتياجات‬ ‫تسامح‬
Dialogue Convection
‫حوار‬ ‫إقناع‬
Understanding
‫تفهم الحتياجات األخر‬

Negotiation Styles:
IF you give me a bit of what I want

THEN I can give you a bit of what you want
Negotiation Styles:
Win / Win
Relationship Status / Orientation

Owner Contractor
Good & Long term Win Win
(Compromise orientation) 50 50
Lose Win
Bad & Short term Win Lose
Lose Lose

Negotiation Skills
How we can move
from this situation To this one
Conflict WIN-WIN situation
Negotiation Is The Process Of Using

Power, Information and Conviction
To Affect Behavior Within A Web Of Tension
Levels of Communication:
High Effective
Communication
Trust level
Low
LOW High
Cooperation level
Levels of Communication:
High Win/Win (Synergistic )
Compromise (Respectful)
Trust level
Win/Lose (Defensive )
Low
LOW High
Cooperation level
Site
Leader
Design Quality
Mind maps

© 1995 Corel Corp.
Brainstorming
Team Roles & Responsibilities
• Main Speaker
• Only Member permitted to make
– Signals
• Leader (Facilitator) – Movement
• Recorder
• Analyst
• …. • Monitors overall team strategy
• Monitors other teams strategy
• Identifies areas of Common Ground
• Monitors Movement

How people make decisions
Logic Emotion
justify decide
Effective Communication  Logic & Emotion

Three Types of Negotiation
in Organizations
1. Day-to-day/ Managerial Negotiations
2. Commercial Negotiations
3. Legal Negotiations

Three Types of Negotiation in Organizations
Day-to-day/ Managerial Negotiations
Parties Involves:
– Different levels of Management
– In between colleagues
– Trade unions
– Legal advisers
Examples, Negotiation For:

– Terms and working conditions.
– Description of the job responsibility.
– Increasing resource productivity.
– Increase production rates.
– Increase market sales, … etc.

Commercial Negotiations
Parties Involves:
– Procurement & Financial Management
– Suppliers
– Vendors
– Customers
– Trade unions
– Legal advisors
– Government
Examples, Negotiation For:

– Contract Terms
– Contract Claims
– Price and quality of goods to be purchased.
– Bonus / Penalty, … etc.

Legal Negotiations
Parties Involves:
– Management
– Customers
– Suppliers / Vendors
– Government
Examples:
- Claims / Disputes
- Adhering to the laws of the local and national
government, … etc.

Brainstorming:
Brainstorming Issue: Top 3 Contract Claims
# Claim Root Causes

Negotiation Process
1- Preparation
2- Objectives &
Planning
5- Control &
Assessment
3- Face-to-Face
FACE-TO-FACE
Discussion
DISCUSSIONS
4- Final
Action

Negotiation Preparation
Sometimes you just have to

know yourself
…and know who you are
dealing with

Step #1:
Know, What you want?
Step #2:
Know, when to walk away?
Step #3:
Determine, What the other side wants?
Step #4:
Know, How the other side negotiates?
Step #5:
Practice with someone who takes the other side

“In negotiation, you must Identify your best deal, fair deal, walk-away
point, consequence of disagree, and the negotiation approach”
Negotiation Issue:
Item Your Team The Other Team

Best deal
Fair deal (Win / Win)
Walk-away Points
Consequence of disagree
Negotiation Approach
Conclusion

Brainstorming
Negotiation Issue:

Best deal
Fair deal
(Win / Win)
Walk-away
Points
Consequence
of disagree
Negotiation
Approach
Conclusion

Negotiation Rules
Rule #1:
Never agree to any ground rules before beginning
Rule #2:
Negotiate only with someone who has authority to make a deal
Rule #3:
Agree on what you will discuss
Rule #4:
Maintain a neutral expression
Rule #5:
Clarify all offers
Rule #6:
Do not let the other side introduce new issues
Rule #7:
Avoid making disclosures
Rule #8:
Keep your options open
Set your limits ‫البديل االفضل التفاق تفاوضي‬
BATNA Make sure you know your true limits…
The Best Alternative To a Negotiated Agreement;
The lowest acceptable value to an individual for a negotiated agreement.
How to Max. Strength points & Min. Weakens points ?

Owner-Contractor Objective Alignment
Disagreements Resulting from Incompatible Objectives
The Owners
Contractors
Bargaining Objectives
Objectives
Area
Contractors Owners
Objectives GAP Objectives

The Negotiators Exit Prices Overlap
100 110 120

Buyer’s negotiating range
Settlement
range
Seller’s negotiating
110 range 130
The Bargaining Area

100 110 120
Buyer
Seller
110 120 130
Negotiation Management is a powerful systematic
methodology to achieve certain targets
between two or more parties.
Through:
• Define the scope of work
• Define the targets, bottom lines, and constraints.
• Information collection, estimation & analysis.
• Brainstorming, planning and target plan.
• Consequence estimation and risk analysis.
• Face to face discussion
• Motivation and direction
• Implementation
• Control & corrective Actions
• Learned lessons
• Close out report

Contract Negotiation
(1) (5)
Design Price
Points
(4)
(2) Payment
Technical Conditions
Points
(3)
Time
Points

Design Negotiation
Technical
Constraints
? Resource
Quality
Environmental Design Price

Conditions
Points
Time
Safety
Conditions Contract
Terms

Quality Negotiation
Price
Technical
Constraints Time
Working Quality Resource

Conditions Quality
Points
Contract
Safety terms
Conditions Design

Safety Negotiation
Price
Technical
Constraints Time
Working Safety Resource

Conditions Quality
Points
Contract
Quality terms
Conditions Design

Master Plan Negotiation
Resource
Availability
Experience
Technical
Constraints
Contact Master Working

type Conditions
Plan
Payment
Conditions
Budget
Availability Environmental
Conditions

Payment Conditions Negotiation
Contract
type
Contract
Terms Budget
Availability
Payment Payment External

Rules Resource
Conditions
Mobilization
Reliability
Time

Price Negotiation
Product
type
Miscellaneous
contracting Technical
elements Parameters
Customer Resources
Obligations Price
Schedule
Contract
type Payment
Condition

Contract Claims Analysis

Contract Claim Analysis
Objectives:
• Understand the sources of claims
and disputes on construction
projects
• Know how to prepare and

process the claims
• Understand the dispute resolution

techniques
• Know how to prevent the clams

Successful Contract
• Right Scope
• Right Quality
• Right Time
• Right Payment
• Right Cost

Successful Contract
Cost Quality
Right Right
Cost Quality
Right
Time
Time
What is a Claim? What is a Dispute?
CLAIMS - Cause of action based in law
Claim is a written demand for something supposed to be due
A claim is a tool used by contractors to request more time

and/or money.
More than 80% of the contracts are suffered form the Claims
‫السبب الرئيسي للمطالبة هو عدم وضوح‬

• Claims for Additional Cost ‫العقد وبنوده وعدم التزام الطرفين بما جاء‬
• Claims for Additional Time
.‫به‬
‫المطالبات هي نتيجة حتمية لثغرة تعاقدية‬
• Claims for Payment ‫باإلمكان لمعد وثائق العطاء أن يمنع‬
.‫حدوثها‬
DISPUTES - Unresolved conflicts / claims

Project Stages:
Claims
Ability to govern
Planning Design Procurement Construction Close Out

What are Common Project Risks?
Some of the most common types of project risks include:
1. Scope Change
2. Estimation errors • Design Errors
3. Incomplete data • Method Errors
• Estimation Errors
Planning
Close-out Project Design

1. Cost Variance
2. Time Variance Stages
3. Claims
Construction Procurement
1. Change Orders 1. Incomplete bid documents

2. Poor contracting strategy
2. Delays 3. Insufficient competition
3. Quality concerns

Contract Claims Conditions
‫الظروف التي يمكن أن يطالب فيها بالتعويضات‬
Before Contract During Contract Due to Contract

Award Administration Termination / Breach
‫قبل ترسيت العطاء‬ ‫في مرحلة إدارة العطاء التنفيذ‬ ‫في حالة إنهاء أو فسخ العقد‬
•Bad Tender Evaluation • Design Errors

•Bidding Mistakes • BOQ Variation
•Contract Document • Change Orders
Mistakes • Method Change

Claims Types:
Extra
Work
Process
Delay
Losses
Claim /
Dispute
Defective
Payment
work
Damage

TIME CLAIMS
(35 %)
COST CLAIMS
CLAIMS (40 %)
PAYMENT CLAIMS
(25 %)
TIME Review
Proactive COST Review
PAYMENT Review
Construction Claims
• Contractor usually claims one or more of the following:
− Compensation for extra work performed
− Compensation and/or schedule relief for acceleration, delay and/or
disruption
− Payment and interest
− Blocking draw of performance bond
• Owner usually claims one or more of the following:

− Damages (usually liquidated) for delay, or for poor performance
(plant not at specification)
− Correction or compensation for defective work (under warranties)
− Draw on performance bond

Claims Rout Causes:
Estimation
Errors
Force Planning
Majeure Errors
Claim /
Dispute
Material Design
Cost Change Errors
Change
Orders

Root Causes of Claims (Average of 100 contract in Egypt)
1. Estimation Errors 20 %
2. Planning & Scheduling Errors 18%
3. Errors or Incomplete Documentation 15%
4. Design Errors 13 %
5. Change Orders 10%
6. Materials Price Change 8%
7. Site Conditions 7%
8. Force Majeure 5%
9. Others 4%
Dr. Attia Gomaa, 2011
Contract Claims Management
A proactive systematic approach to
minimize the risk of claims.
Contract Claim Management

 No Risk + No Claims + No Disputes

Analysis
Planning Estimation
Proactive Tools:
• Contract Estimation
• Contract Planning
• Contract Risk Planning
• Contract Safety Planning Reactive Tools:
• Contact Documentation Planning • Negotiation Management
• Contract Terms • Problem Solving Approach
• Tender Evaluation • Dispute Management
• Variance Analysis • Conflict Management
Main Techniques:
Contract
Negotiation
Value Problem
Engineering Solving
Claim /
Dispute
Earned Dispute
Value Analysis Resolution
Contract
Risk Plan

Strategy to Avoid Claims
• Read the contract • Risk Management

– Identify the risk
• Read the contract – Measure the risk
• Read the contract – Account for the risk
Together we can manage the claims

Strategy to Avoid Claims
Contract Terms
How To Avoid
Risk Plan
CLAIMS
Earned Value Analysis

Case Study #1:
Project: Construction Project Contract Type: Lump Sum Contract
Original Bid Detail Actual Work Order
Duration (day) 100 Duration (day) 140
Concrete Process: Concrete Process:
BOQ (m3) 1000 BOQ (m3) 1200
Cost per m3 Cost per m3
Concrete Supply $100.00 Concrete Supply $120.00
Labor Cost Rate $50.00 Labor Cost Rate $60.00
Direct Cost Rate $150.00
Margin Factor (50%)
Unit Price $225.00
Total Price $ 225000.00

Brainstorming,
Claim Preparation & Negotiation
• Divide into 2 groups (contractor & Client)
• Analysis & Estimation
• Prepare the claim sheet
• Negotiation Process
Contractor: Client:

Analysis :
Project: Construction Project Contract Type: Lump Sum Contract
Original Bid Detail Actual Work Order
Duration (day) 100 Duration (day) 140
Concrete Process: Concrete Process:
BOQ (m3) 1000 BOQ (m3) 1200
Cost per m3 Cost per m3
Concrete Supply $100.00 Concrete Supply $120.00
Labor Cost Rate $50.00 Labor Cost Rate $60.00
Direct Cost Rate $150.00 Direct Cost Rate $180.00
Margin Factor (50%) Margin Factor (50%)
Unit Price $225.00 Unit Price $270.00
Total Price $ 225000.00 Total Price $ 324000.00
Cost Variance = 324-225 = $ 99000 ( + 44 %)

Schedule Variance = 140 – 100 = 40 day (+ 40 %)
Network Diagram
Procure
formwork
Lay out Excavate Forms and Erect

Mobilize
footings footings concrete steel
Procure
Steel

Claim Estimation:
Project: Construction Project Scope of work: Concrete Process
Contract Type: Lump Sum Contract

Negotiation Issue:

Best deal
Fair deal
(Win / Win)
Walk-away
Points
Consequence
of disagree
Negotiation
Approach
Conclusion

Case Study #2:
Project: Treated Water Plant
Scope of work: Construction Building (Civil & E/M)
Contract Type: Lump Sum (8000,000 LE) Planned Duration: 24 Week
Planned Unit price Item Price Duration
# WBS (Main Items) Unit Quantity LE/unit LE Day
1 Excavation m3 11600 28 324800 77
2 Displacement m3 6700 92 616400 53
3 P.C. (250 kg cement/m3) m3 1050 508 533400 3
4 Steel Ton 650 5600 3640000 14
5 R.C. (350 kg cement/m3) m3 3700 780 2886000 9
Total 8000000 24 week
0 77
1 103
Item 2 50 106
3 127
4 113 136
5
0 -- -- -- -- -- 130 144 day

Actual Performance:
Project: Treated Water Plant
Scope of work: Construction Building (Civil & E/M)
Contract Type: Lump Sum (8000,000 LE) Planned Duration: 33 Week
Actual Unit price Item Price Duration
# WBS (Main Items) Unit Quantity LE/unit LE Day
1 Excavation m3 13000 30 390000 82
2 Displacement m3 7000 100 700000 65
3 P.C. (250 kg cement/m3) m3 1100 520 572000 5
4 Steel Ton 800 6000 4800000 20
5 R.C. (350 kg cement/m3) m3 4000 850 3400000 20
Total 9862000 33 week
10 92
1 135
Item 2 140
70
3 170
4 150 190
5
10 -- -- -- -- -- 130 200 day

Analysis:
Planned Performance: Actual Performance:
Duration: 144 day Duration: 200 day
Steel cost = 3800 LE/ton Steel cost = 4200 LE/ton
Cement cost = 420 LE/ton Cement cost = 450 LE/ton
Delay Responsibility Analysis

Delay Type Responsibility Day
Access Delay Owner 10
Differing Site Conditions Owner 5
Re-design Owner 18
Lack of Progress Contractor 10
Re-work Contractor 10
Others Contractor 3
Brainstorming,
Claim Preparation & Negotiation
• Divide into 2 groups (contractor & Client)
• Analysis & Estimation
• Prepare the claim sheet
• Negotiation Process
Contractor: Client:

Claim Estimation:
Project: Treated Water Plant Scope of work: Construction Building
Contact Type: Lump Sum

Negotiation Issue:

Best deal
Fair deal
(Win / Win)
Walk-away
Points
Consequence
of disagree
Negotiation
Approach
Conclusion

Problem Solving & Decision Making

Site
Leader
Design Quality
Mind maps

© 1995 Corel Corp.
SARA Approach to Problem-Solving
Scanning
• The identification of a cluster of similar, related, or recurring incidents through a
preliminary review of information, and the selection of this crime/disorder
problem, among competing priorities, for future examination.
Analysis
• The use of several sources of information to determine why a problem is
occurring, who is responsible, who is affected, where the problem is located,
when it occurs, and what form the problem takes.
Response
• The execution of a tailored set of actions that address the most important
findings of the analysis phase. Responses typically focus on at least two of the
following: (1) preventing future occurrences by deflecting offenders; (2)
protecting likely victims; or (3) making crime locations less conducive to problem
behaviors.
Assessment
• The measurement of the impact(s) of the responses on the targeted
crime/disorder problem using information collected from multiple sources, both
before and after the responses have been implemented.
BM
Source:
Managerial Skills For Engineers
Office of Community Oriented Policing Services
279
279
Problem Solving
How to manage the problems?
5. Follow up
to see if problem is solved
4. Put plan into action
3. Select one or more alternatives
2. Search for solutions
1. Define the problem

Problem Solving
Clarify Define the Assess/

the issue problem Analyze
Consider
solutions
Follow Plan Select

up for change the best

Plan-Do-Check-Act (PDCA) Circle
Problem-solving process
Deming Wheel, 1950

10 Problem Solving Steps
10- Continuous
1- Recognize Problem
improvement
9- Ensure 2- Form Teamwork
performance
ACT
3- Define Problem
8- Evaluate 4- Analyze Problem

CHECK PLAN
Solution
5- Determine Possible
Causes
DO
6- Identify Possible
Solutions
7- Implement Solution

Shewart Cycle
Continuous Improvement (PDCA)
Try improvement
What’s the next problem? Small test
What can we do?
Plan Do
Adopt new process Act Check Gather data

And analyze

Brain Storming:
Select a Problem:
Problem Solving:
How to Manage?

Brainstorming: Thank You
For Your
Identify a problem: ---------------------------------------------------------------------------------------------------
Participation
Internal Factors External Factors
• 1. • 1.
• 2. • 2.
• 3. • 3.
• 4. • 4.
• 5. • 5.
Main Factor Probability Root Cause

Conflict Management

Conflict
• Conflict Defined
– Is a process that begins when one party perceives that another party
has negatively affected, or is about to negatively affect, something that
the first party cares about.
• Is that point in an ongoing activity when an interaction ―crosses

over‖ to become an interparty conflict.
– Encompasses a wide range of conflicts that people experience in

organizations
• Incompatibility of goals
• Differences over interpretations of facts
• Disagreements based on behavioral expectations

Transitions in Conflict Thought
Traditional View of Conflict

The belief that all conflict is harmful and must be
avoided.
Causes:
• Poor communication
• Lack of openness
• Failure to respond to
employee needs

Transitions in Conflict Thought )cont’d(
Human Relations View of Conflict

The belief that conflict is a natural and inevitable
outcome in any group.
Interactionist View of Conflict

The belief that conflict is not only
a positive force in a group but that
it is absolutely necessary for a
group to perform effectively.

Types of Conflict
Task Conflict
Conflicts over content and
goals of the work.
Relationship Conflict
Conflict based on
interpersonal relationships.
Process Conflict
Conflict over how work gets done.

Managing Conflict

12 Conflict Resolution Skills
1. Think Win/Win
2. Creative responses that transform problems into creative
opportunities
3. Build empathy by using active listening to clarify understanding
4. Apply assertiveness strategies to attack the problem and not the
person
5. Eliminate ―power over‖ to build ―power with‖ others
6. Manage emotions by expressing fear, anger, hurt, and frustration
wisely to effect change
7. Name personal issues that cloud the picture
8. Map the conflict by defining issues of common needs and concerns
9. Design creative solutions together
10. Plan and apply effective negotiation strategies to reach agreement
11. Help conflicting parties move towards solution through mediation
12. Broaden perspectives to evaluate problems in a broader context

Body Language
Understanding non-verbal
communication

Body Language
First-Impression Basics
55% of the Impression you Make
Reading body
language is
an important skill!
Verbal & Visual 45%
Body Language
55%

Your words tell me a story but your body tells me
the whole story

How to Read Body Language
1. Body
2. Gestures
3. Facial Expression
1. Micro expression – expressions that come
out before you think
2. Facial Coding
4. Voice

Body Language  55 %
1. Facial Expressions  Emotions ‫معالم الوجه‬
2. Body Message ‫رسالت الجسد‬
3. Hand Gesture ‫إشارة اليد‬
4. Shake Hands ‫أسلوب التصافح‬

Facial Expressions Convey Emotions
1- Neutral )‫محايد (عادي‬
2- Happiness ‫مبتهج‬
3- Surprise ‫مندهش‬
4- Fear ‫خائف‬
5- Sadness ‫حزين‬
6- Anger ‫غضبان‬
7- Disgust ‫إشمئزاز‬

Guess which emotion I’m feeling now!
1 2 3 4 5 6
Facial Expressions Convey Emotions
Guess which emotion

I’m feeling now!
Neutral
Surprise
Happiness
Fear
Sadness
Anger
1 2 3 4 5 6
1. Happy/joy
2. Anger
3. Sadness
4. Scared
5. Surprise
Main Messages
‫صادق‬ ‫متواضع‬ ‫هادئ‬ ‫واثق‬ ‫متعاون‬

Honest Humble Calm Confident Helpful
‫كذاب‬ ‫متكبر‬ ‫عصبي‬ ‫متردد‬ ‫غير متعاون‬

Unhonest Arrogant Nervous Hesitant Unhelpful

‫السلوك ( تعبيرات الوجه او الوقوف ) او ( حركات اليدين او غيرها )‬ ‫الرسالة عبر لغة الجسد‬
‫‪ -‬وجه مبتسم‬
‫‪ -‬فك ازرار الجاكت‬ ‫‪ -‬عدم مقاطعة االرجل‬
‫‪ -‬التحرك بالقرب من الشخص االخر‬ ‫‪ -‬عدم تحريك اليدين بشكل مستمر‬ ‫متعاون‬
‫‪ -‬عدم مقاطعة االيدي علي الصدر‬ ‫‪ -‬استخراج اليدين من الجيوب‬
‫‪ -‬وجه هادئ‬
‫‪ -‬الوقوف باستقامة‬ ‫‪ -‬عدم تحريك اليدين بالقرب من الوجه‬ ‫واثق‬
‫‪ -‬ثبات االرجل‬ ‫‪ -‬نظرة ثابتة للمقابل‬
‫‪ -‬وجه شارد‬
‫‪ -‬التأفف‬ ‫‪ -‬حركة اليدين اتناء الحديث بشكل غير منتظم‬ ‫عصبي‬
‫‪ -‬التدخين بشكل متزايد‬ ‫‪ -‬تضخيم نبرة الصوت‬
‫‪ -‬وجه مستعلي‬
‫‪ -‬االشارة باألصابع نحو المقابل‬ ‫‪ -‬النظر من فوق النظارات‬ ‫متكبر‬
‫‪ -‬الوقوف خلف المكتب‬ ‫‪ -‬العبث بطيه البدلة اثناء الحديث‬

Main Gestures
OK be quiet ! It is not good Peace
Pointing
Yes No

Main Gestures

Shake Hands
Three basic attitudes are transmitted through the handshake:
Dominance
Submission
Equality
Hand clenching not next to body is a signal of
frustration or negativity.

Showing Respect

Types of Body Language
• Positive - Usually creates a non-threatening, bonded, mutual

relationship between parties involved in a confrontational
situation.
• Negative - Usually intensifies the already present emotional

negativity found in most confrontational situations.
• Neutral - Usually has little or no effect on conflicted parties in a

confrontational situation.

Body Language Top Ten Quick List for Sports Officials
Positive Body Language Neg. Body Language

• Head Level • Look Down
• Eye Contact • Look Away
• Hands Down • Step Back (Exception)
• Palms Open • Touch mouth, nose, throat
• Feet Shoulder Width • Clench Fist
• Head Cocked • Cross Arms
• Arm fold with Chin Touch • Hands on Hips
• Lean in • Point (Exception)
• Nod head • Hands in front of chest
• Rub Hands to end • Hands behind back

Positive Body Language Details
• Head Level = I will not be intimidated - I will be treated as an
equal or superior.
• Eye Contact = I have nothing to hide. I am not fearful. (Beware

of prolonged eye contact. This becomes a stare-down and
escalates into a power struggle. Maintain eye contact for a few
seconds, then look at the nose or cheek then back to the eyes.
Do not drop your eyes!!)
• Hands Down = I am not aggressive toward you at this time. I

do not feel threatened by you yet.
• Palms Open = I am presently receptive to your concerns.

• Feet Shoulder Width = I am ready to take any physical
position which is most advantageous to our confrontation.
• Head Cocked = I am presently interested in what you are doing
and saying.
• Arm fold with chin touch = I am evaluating the physical and
verbal comments you are giving me.
• Lean In = I am comfortable with who I am and the situation I
am facing. I am not intimidated.
• Nod Head = I am interested in what you are presenting and
understand that you have a concern. (Be careful here. Do not
nod your head when the other person makes a false or
accusatory statement.
• Rub Hands to End = Once you have made a decision and
have decided to end the confrontation, state what your decision
is while rubbing your hand softly in front of you in a non-
threatening manner.
Negative Body Language Details
• Look Down = I am submissive to you and your confrontational
attitude. You physically and emotionally dominate me.
• Look Away = I am uncomfortable with the situation. I can’t

look at you because you have more power. (Looking away and
also looking down at the same time is also a sure sign of sexual
dominance.)
• Step Back = I am afraid of you, the situation, or both.

(Remember, there is an exception to this rule which will be
discussed later)

• Touch Mouth or Nose or Threat =
Mouth = I do not approve of you and I am afraid to speak
openly. I am not sure of myself.
Nose = I am nervous about this confrontation. I am not sure
what is going to happen.
Throat = I am frightened by you and the situation I am in.
• Clench Fists = I am very angry at you and want to punish you
for placing me in this situation. I am more powerful than you. I
am in control.
• Cross Arms = I am defensive. I have made up my mind. I
resist any attempt by you to communicate with me.
• Hands on Hips = I am in authority here and you are
subservient to my position. You have little or no standing with
me. I am going to be confrontational to you.

• Point = I challenge you to disobey me. You are subservient
and must do as I say. I am your master. (Remember that there
is an exception to this rule which will be explained later.)
• Hands in Front of Chest (Palms Out) = This gesture is when

the hands are close to the body. It is universally interpreted as
meaning I am not responsible for what happened or is
happening. Someone else is to blame. I do not have control
since its not my fault.
• Hands Behind Back = I am angry and have something to hide

from you. You can’t see the real me.

Body Language
Don’t forget to consider body language
 Avoid Negotiating Over The Phone
 Be Careful With Anything Other Than A Straight Handshake
 If You Are Negotiating With Two Other People Make An Effort
Not To Be Seated Between Them
 It Is Better To Disperse The Negotiation If You Are
Outnumbered

Notes:
Notes:

Notes:

Image is Important
Notes:

Notes:

Notes:

Notes:

(1) (2) (3)
(4) (5) (6)

(1) (2) (3)
(4) (5) (6)

(1) (2) (3)
(4) (5) (6)

(1) (2)
(3) (4)
YES Gestures
• Opening Palms
• Leaning Forward
• Smiling
• Direct Body Orientation
• Head Nodding
• Enhanced Eye Contact

NO Gestures
• Folding Arms
• Drumming
• Hand holding the chin
• Feet and trunk pointed oppositely
• Hand covering the mouth
• Increased fidgeting
• Squinting

Openness
• Do not cross your arms and legs

• The act of opening
• Open hands – nothing is concealed
(vs. clutched fists – nerves)
• Relaxed, prolonged
eye contact
• Mirror

ok
stop
well done
silent

Is this….
a. Guarded?
b. Relaxed?
a. Thoughtful?
b. Relaxed?

Is this…..
a. Angry?
b. Relaxed?
a. Animated?
b. Calming?

Is this?
a. Flirting?
b. Confused?
a. defensive?
b. inviting?

Is this……
a. Bored?
b. Interested?
a. At ease?
b. Anxious?

Is this……
a. Aggressive?
b. Explaining?
a. Shy?
b. Confident?

Human Resource Management
Comment?
TURNOVER
MORALE
TURNOVER
MORALE
Satisfied Employees Are More Committed and Productive
• Job Satisfaction:
– Degree of enjoyment employees derive from their jobs
• High Morale:
– An overall positive employee attitude toward the workplace
• Low Turnover:
– A low percentage of employees leave each year
• Productivity
– Maximizing output from inputs
– Marginal cost = marginal benefit

Effective Motivation leads to desired behavior,
satisfaction, and performance
• Motivation:
– The set of forces that cause people to behave in
certain ways
• So how do we do it already?
• Job Satisfaction
• High Morale
• Low Turnover
• Productivity

Equity Theory
• Employees evaluate their treatment relative to the treatment

of others
– Inputs: Employee contributions to their jobs
– Outputs: What employees receive in return
• The perceived ratio of contribution to return determines

perceived equity.
• Workers will attempt to adjust
their inputs and/or outputs
until they feel their perceived
equity is….. equitable.

Equity Theory: Situation Outcomes
• I will do my best work possible next time

• I will work less next time
• I will steal from the company
• I will sabotage the quality of the product

1) That test was way too easy. We are all going to get A’s.
2) That test was way too hard, I’ll never be able to get an ―A‖.
3) That test was hard, but it was because I just didn’t study
enough.
4) My boss just won’t pay me as much as I am worth.
5) My boss took all the credit for that production process

suggestion I made.
6) Whew, I barely got an ―A‖. That studying paid off!

Situational Approach to Leadership
The Four Square model
High Skill Low
High
Basically leave them Provide strong coaching
alone. light motivation
Motivation
Provide light coaching Provide strong coaching

Low and strong motivation and strong motivation

Decoding Personality
Popular Powerful
+ Enthusiastic, spontaneous, + Lead, meets goals, strong-willed,
creative ME
- Loud, too-happy, forgetful, not - Bossy, know it all, deny failure

believable
Peaceful Perfect
+ Calm, steady, listens, + Analytical, serious, finish
compassionate everything
- Worrier, slow starter, seems - Overly critical, over-plan,

indifferent unforgiving
1) Where do conflicts happen? 2) Can any type lead?
4) What makes each type happy? 3) What types make strong teams?

Reinforcement / Behavior Modification
Punishment
When negative consequences are
attached directly to undesirable
behavior.
Positive Reinforcement
When rewards are tied directly to
performance.
No one is apathetic except in the pursuit of

someone else’s goals. - Anonymous
Participative Management, Empowerment & Teams
“There is no “I” in team”
• Increasing job satisfaction by encouraging participation
• Team management represents a growing trend.

Job Enrichment and Job Redesign
• Job Enrichment:
– Adding one or more motivating factors to job
activities
• Job Redesign:
– Designing a better fit between workers and
their jobs
• Combining tasks
• Forming natural work groups
• Establishing client relationships

Strategic Human Resource Management
• Human Resource Management (HRM)
– Activities that managers engage in to attract and retain employees and to
ensure that they perform at a high level and contribute to the accomplishment
of organizational goals.
• HRM activities
– Recruitment and selection
– Training and development
– Performance appraisal and feedback
– Pay and benefits
– Labor relations
• Strategic Human Resource Management
– The process by which managers design the components of a human
resource system to be consistent with each other, with other elements of
organizational structure, and with the organization’s strategy and goals.
• The objective of strategic HRM is the development of an HRM
system that enhances the organization’s efficiency, quality,
innovation, and responsiveness to customers.

Human Resource Process
Recruitment Hiring Benefits

Cost Planning
& Reporting Training
Employee Travel
Development Time Reporting
Payroll
& Shift Planning

The Staffing Process
Human Recruitment Selection Orientation

resources
planning
Movement
Promotion 
Demotion 
Transfer 
Replacement Vacancy Separation

Sources of Recruitment
Electronic
Advertisements Job fairs Educational
recruitment
institutions
sites
Public Employee Private

Unsolicited
employment referrals employment
applications
service service

Sources of Information Used in Selection Decision
Job
Assessment
applications
centers
Résumés Interviews Tests
Realistic Reference
job previews checks

Common Training Methods
Job
rotation
Interactive Programmed
media instruction
Role-playing Videos
Simulation

Model of Strategic Human Resource Management
External Forces
Internal Forces
Social
Structure
Economic
Culture
Technological
Politics
Business
Strategy
Political
Human Resource
Management
Planning, Staffing,
Appraising, Compensating
Training and development

A Definition of Culture
Shared
Socialization assumptions 
Rites and
values 
activities norms  ceremonies
Language Symbols

Some Items from the Organizational Culture Profile
Low level
Flexibility Autonomy
of conflict
Informality Risk taking
Working Being
Tolerance
long hours analytical
Source: Adapted from C. A. O’Reilly III, J. A. Chatman, and D. F. Caldwell. People and organizational culture: A
،34 ،profile of comparison approach to assessing the person–organization fit. Academy of Management Journal
, p. 516.1991

Dimensions for Describing Industry Cultures
Employee-oriented: Results-oriented:
Concern focuses on people  Concern focuses on 
achievement of goals
Parochial: Professional:
Employees identify with  Employees identify with 
organization type of work or profession
Open system: Closed system:
Many types of people feel  Type of person who fits is 
comfortable in organization narrowly specified
Loose Control: Tight Control:
Codes of conduct allow for  Written and unwritten rules 
much variation among exert tight control over
employees behavior

Framework of Types of Cultures
Flexible
Clan Entrepreneurial
Formal Control Orientation

culture culture
Bureaucratic Market
culture culture
Stable
Internal External
Focus of Attention
Sources: Adapted from Hooijberg, R., and Petrock, F. ―On cultural change: Using the competing values framework to help leaders
; Quinn, R.E. Beyond Rational Management: 50–29 ,32 ,1993execute a transformational strategy.‖ Human Resource Management,
Mastering the Paradoxes and Competing Demands of High Performance. San Francisco: Jossey-Bass, 1988.

Organizational Goals for Managing Diversity
Legal
Compliance
Positive Creating
Organizational Economic
Culture Value

Phases of Diversity Management Change Efforts
Understanding the
goals to be achieved
Assessing the current organization

and understanding its history
Articulating and communicating

a vision for the Future
Designing a strategic plan
Implementing targeted
change efforts
Monitoring change and

making adjustments

Components of Texaco’s Cultural Change Initiatives
Recruitment
and Hiring
Identifying and Ensuring Fair
Developing Treatment
Talent
Holding Improving
Relationships
managers
with External
accountable Stakeholders
Source: Adapted from V. C. Smith. Texaco outlines comprehensive initiatives . Human Resource Executive. February 1997, p.
13; A. Bryant. How much has Texaco changed? A mixed report card on anti-bias efforts. New York Times, November 2, 1997,
pp. 3-1, 3-16, 3-17; and Texaco’s workforce diversity plan, as reprinted in Workforce, March 1997 (suppl.).

Exam:
1- Management process is a ...
a) systematic approach
b) process approach
c) information approach
2- Basic managerial functions are …
a) human, financial, physical, and information
b) planning, organizing, leading, and controlling
c) targets, information, planning, and controlling
3- Time management is systematic approach to …..
a) minimize time wasters
b) increase the profit
c) decrease cost elements
4- SWOT analysis is ….
a) a systematic tool for strategic planning
b) a systematic tool for objective analysis
c) a systematic tool for competition analysis
5- Goal is a ...
a) short term objective
b) medium term objective
c) long term objective
6- Rule 80/20 is a ……
a) classification tool
b) priority tool
c) analysis tool
7- Target is a ...
a) general objective
b) smart objective
c) smart goal

8- To improve the team performance, deal with ….
a) attitude not performance
b) performance not attitude
c) actual performance not planned performance
9- Project management skills including …..
a) financial, value engineering, decision making, negotiation, problem solving, ..
10- Top time wasters are …….
a) lack of self-discipline, meetings, paperwork and confused responsibility
b) meetings, incomplete information, paperwork and confused responsibility
c) interruptions, shifting priorities, lack of goals, and attempting too much
11- Employee performance management is a systematic approach to …..
a) increase the work productivity.
b) measure, analysis, align and improve the employee productivity.
c) maximize the employee performance.
12- The main parameters for employee performance evaluation are …
a) work output, personal competencies, goal achievement, and attendance
b) attendance, planning skills, job achievement, and relations
c) attendance, planning skills, job achievement, and documentation
13- SWOT stands for
a) Strengths – Weaknesses – Operation - Threats
b) Strengths – Weaknesses – Opportunities - Threats
c) Strengths – Weaknesses – Opportunities - Tender
14- You can’t make your team like each other, but you can help them to ….
a) help each other
b) support each other
c) understand each other
15- Don’t go back home before show your team your ……..
a) smile
b) appreciation
c) respect
16- Business skills including …..
a) financial, value engineering, decision making, negotiation, problem solving, ..

17- QC/QA stands for
a) Quantity control / quantity Auditing
b) Quality control / quality auditing
c) Quality control / quality assurance
18- Technical skills including …..
a) financial, value engineering, decision making, negotiation, problem solving, .
19- BOQ stands for
a) Business offer quantity
b) Bill of quantity
c) Business order quantity
20- Productivity indicator is computed as …
a) Outputs - Inputs
b) Outputs * Inputs
c) Outputs / Inputs
21- Long range is …
a) more than one year
b) more than one month
c) more than one week
22- A leader should be …
a) a smile man
b) a strong man
c) a facilitator & coach
23- Three characteristics to become a good leader…..
a) flexibility, diagnoses, and continues improvement
b) planning, analysis, and evaluation
c) planning, analysis, and control
24- The leader focus on …
a) plan
b) people
c) performance
25- If you waste your time, you …..
a) plan to fail
b) waste your money
c) waste your life

26- The leader do …
a) the right plan
b) things right
c) the right things
27- The good leadership style is ….
a) autocratic style
b) democratic style
c) free-rein style
28- PARETO analysis is …
a) a method for identifying the vital few from the trivial many
b) important items
c) ABC analysis
29- If you fail to plan, you …..
a) plan to fail
b) waste your money
c) waste your life
30- A team is a group of people who….
a) work together in the office
b) collaborate and interact to reach a common goal
c) work together to achieve certain job
31- Classification analysis is …
a) a method for identifying the vital few from the trivial many
b) important items
c) ABC analysis
32- The time productivity for the Arabian worker is ….
a) 24 min/day
b) 54 min/day
c) 150 min/day
33- Team Member’s Bill of Rights are …
a) to be respected - to be heard - to try & fail
b) to be respected - to be love - to try & fail
c) to be respected - to be work - to try & fail
34- In ABC analysis technique, Class A is …
a) 80 % volume
b) 80 % value
c) 80 % demand

35- Origin of SWOT ….
a) probably more than 20 years
b) probably more than 200 years
c) probably more than 2000 years
36- Strengths such as ….
a) more competition
b) new markets
c) strong leadership
37- Threats such as
a) more competition
b) new markets
c) strong leadership
38- The time productivity for the Japanese worker is ….
a) 24 min/day
b) 54 min/day
c) 150 min/day
39- Manager / Leader Skills should be 20: 40 : 40 % …
a) Project management: Business management: Technical management
b) Business management: Project management: Technical management
c) Technical management: Project management: Business management:
40- Time horizon can be classified into ….
a) daily, weekly, and monthly
b) long term, medium term, and short term
c) monthly, quarter, and annual
Good Luck for all – Dr. Attia Gomaa

EMPC 04 - Leadership Development & Engineering Project Teams
Project Outline
1. Company / Department / Process / Product / Project Overview
2. Organization Structure & Job description
3. Planning and Control Cycle
4. Action Plan
5. Leader & Teamwork Description
6. Time Analysis
7. Performance Evaluation Report
8. Staff Appraisal System
9. Motivation System
10. Claims Analysis
11. Problem Solving Approach
Product
Organization
Company
Business
Enterprise
Project Organization Structure
Project Top
Manager
Middle
Design Procurement Construction
Manager Manager Manager
Operational

The Key to Business Management Success

Top Organization Structure
Functional Organization
Managers
Supervisors
Engineers
Technicians Process Approach
1. Scope of Work
2. Organization Structure (Key persons)
3. Job Description
4. Information Flow Matrix
5. Reporting  Forms / Reports
What Is Business Management?
Working with people and resources to accomplish the goals
of the Business

Business Management Process
It is a philosophy for long term continuous Improvement
It is a systemic approach for total productivity improvement

How to achieve the targets and overcome the constraints?
Current Situation
Gap Analysis
(1)
(6) Benchmarking (2)
Control Goals & Targets
Management
(5) (3)
Leading Planning
(4)
Organization

Action Plan
What
Should be
done?
Activities When?
Scope
Specific Schedule How?
Measurable Duration
Start Resources: Where?
Finish - Manpower
- Machines Location Responsibility?
- Materials Indoor
Outdoor Leader
- Method
Contractor Department
- Money
Manager
Engineer

Idle/Breaks
Personal 10% Pick/Put Tools
5%
12%
Travel
15%
Work
25%
Waiting
12%
Work Rules
5%
Instruction
16%

Activity List  Monthly
# Description Time Date # Description Time Date
1 11
2 12
3 13
4 14
5 15
6 16
7 17
8 18
9 19
10 20
Urgent (due soon) Not urgent (not due soon)

Important Urgent & Important Important Not Urgent
Do it Now Decide when to do it
Not Urgent Not Important Not Important Not Urgent
important Delegate it Dump it
Performance Evaluation Levels
Staff
Appraisal Company
KPIs
Department Project
KPIs KPIs

KPI Report – One Page Management
Short description:
Client: xxxx Project ID: xxxxx
Gas Pipeline 5 Km – Planned duration: 60 day - Lump-Sum Contract
Total Value 2,000,000 LE Actual Profit = 11 % < 18% Margin factor 140%< 150%
Losses Weakness Points:

37%
Total 1 – Estimation & Planning
Performance
2 – Feedback & Documentation
63%
3 – Critical Resources Productivity
Recommendations:
Strength Points:
1 – Standard Rates
1 – Duration 55 day (- 8%)
2 – Complete feedback (weekly)
2 – Quality rate (Very good)
3 – Welding Training plan
3 – Safety level (Very good)
Name: xxxxxxx ID: xxxxxx Department: yyyyyy Position: zzzz
(10) (8) (6) (4)
1- Safety x
2- Quality x
3- Performance x
4- Resource Utilization x
5- Documentation x
6- Schedule & Follow-up x
7- Communication x
8- Attendance x
Overall Rating x

1- Needs Safety Awareness 1- OSHA Program
2- Needs Trouble Shooting Skills 2- Root Cause Failure Analysis
3- Needs Management Skills 3- Maintenance Planning & Control
4- 4-

Star Diagram 2010
Safety
Quality
Attendance
Schedule &
Documentation
Graphic Rating Scale with Space for Comments

Contract Claims Conditions
‫الظروف التي يمكن أن يطالب فيها بالتعويضات‬
Before Contract During Contract Due to Contract

Award Administration Termination / Breach
‫قبل ترسيت العطاء‬ ‫في مرحلة إدارة العطاء التنفيذ‬ ‫في حالة إنهاء أو فسخ العقد‬
•Bad Tender Evaluation • Design Errors

•Bidding Mistakes • BOQ Variation
•Contract Document • Change Orders
Mistakes • Method Change

Claims Types:
Extra
Work
Process
Delay
Losses
Claim /
Dispute
Defective
Payment
work
Damage

Claims Rout Causes:
Estimation
Errors
Force Planning
Majeure Errors
Claim /
Dispute
Material Design
Cost Change Errors
Change
Orders

Brainstorming:
Brainstorming Issue: Top 3 Contract Claims
# Claim Root Causes

Plan-Do-Check-Act (PDCA) Circle
Problem-solving process
Deming Wheel, 1950

10 Problem Solving Steps
10- Continuous
1- Recognize Problem
improvement
9- Ensure 2- Form Teamwork
performance
ACT
3- Define Problem
8- Evaluate 4- Analyze Problem

CHECK PLAN
Solution
5- Determine Possible
Causes
DO
6- Identify Possible
Solutions
7- Implement Solution

References
• Stevenson, William J. (1992). Production / Operations Management, 4th Edition
• Allen, Tim (2003). Strategic Management. Prentice Hall
• Bonacorsi, Steven (2006). SWOT Analysis. Advanced Integrated Technologies
Group
The fundamentals of executing a SWOT, BusinessBalls.com:-

• http://www.businessballs.com/swotanalysisfreetemplate.htm
Regain Your Focus with SWOT Analysis, Carnegie Mellon:-

• http://www2.cio.com/higher/report3307.html
Managing ITIL Change (Example SWOT included):-

• http://www.retailsystems.com/communitycenters/rhdcc/managingitilchange.pdf
Top 10 Search results for “SWOT + ITIL” at IT Service Today.com:-

• http://www.itservicetoday.com/search/cgi-
bin/it/articles_search.cgi?search=SWOT+%2B+itil
• http://www.uleth.ca/hum/performancemanagement/

Suggested Readings: Problem Analysis
 Boba, R. (2003). Problem analysis in policing. Washington DC: Police
Foundation.*
 Boba, R. (2003). ―Problem analysis in policing: An executive summary.‖
Crime Mapping News Special Issue. Volume 5, Issue 1.*
 Bynum, T. (2001). Using analysis for problem-solving: A guidebook for
law enforcement. Washington DC: Office of Community Oriented
Policing Services.*
 Crime Mapping News. (2002, Spring).Volume 4, Issue 2.*
 Eck, J.E. (2001). Assessing responses to problems: An introductory
guide for police problem solvers. Washington, DC: Office of Community
Oriented Policing Services.*
 Scott, M. & Sampson, R. (2001). Problem-oriented guides for police
series. Washington DC: US Department of Justice, Office of Community
Oriented Policing Services.*
 Scott, M. (2000). Problem-oriented policing: Reflections on the first 20
years. Washington DC: Office of Community Oriented Policing
Services.*

References
• Ailes, Roger. You Are the Message. New York. Doubleday, 1988.
• Bazerman, Max H. Smart Money Decisions, Wiley & Sons, 1999
• Cialdini, Robert B. Influence: The Psychology of Persuasion, Harper Collins, 2007
• Cohen, Herb. You Can Negotiate Anything. Secaucus, N.J.: Lyle Stuart, 1980
• Covey, Stephen R. The 7 Habits of Highly Effective People. New York: Simon & Schuster,
1989.
• Dayton, Doug. Selling Microsoft. Holbrook, MA., Adams Media Corporation, 1997.
• Fisher, Roger and William Ury. Getting to Yes. New York: Viking Penguin, Inc., 1981.
• Forsyth, Patrick. The Negotiator's Pocketbook. London: Alresford Press Ltd., 1993.
• Johnson, Spencer. The One Minute Sales Person. William Morrow, N.Y, 1984.
• Karrass, Chester L. Give and Take. New York: Harper Collins, 1993.
• Karrass, Chester L. The Negotiating Game. New York: Harper Collins, 1992.
• Koch, Charles G., The Science of Success, Wiley & Sons, 2007.
• Kozicki, Stephen. The Creative Negotiator. Pyrmont, Australia: Gower, 1993.
• Lewicki, Roy J., et.al. Negotiation. 2nd Edition., Irwin, 1994.
• Lewicki, Roy J., et. Al. Essential of Negotiation, 4th Ed. McGraw Hill, 2007
• Nierenberg, Gerald 1. The Art of Negotiating. New York: Barnes & Noble, 1995.
• Paul, Richard. Critical Thinking. Santa Rosa, CA: Foundation for Critical Thinking, 1993.
• Schoonmaker, Alan N. Negotiate to Win: Gaining the Psychological Edge. Englewood Cliffs,
N.J.: Prentice Hall, 1989.

Conflict Resolution and Negotiation:
References
• 1 Osland, J.S., Kolb, D.A., & Rubin, I. M. (2001) The

Organizational Behavior Reader (7th ed.). Englewood
Cliffs, NJ: Prentice Hall.
• 2 Osland, J.S., Kolb, D.A., & Rubin, I.M. (2001).
Organizational Behavior (7th ed.). Englewood Cliffs,
NJ: Prentice Hall.
• 4 http://nadabs.tripod.com/team/conflictguide.html
• 5 http://ecu3.msh.org/quality/ittools/itnegot.cfm

Thank you for your attention!
Discussion
Useful Science For the

Sake of Allah
Suggestions Comments
Questions
Copyrights & More Information:

Dr. Attia Hussien Gomaa
Industrial Engineering Professor & Consultant We’re here to help you!

Managerial Skills For Engineers

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Managerial Skills For Engineers

Uploaded by

Copyright:

Available Formats

‫وما توفيقي إال باهلل‬

“BUSINESS LEARNING AND EXPLORATION”

Dr. Attia Gomaa

1. Business & Managerial Skills

Mind Your Own Business

General Business skills including Sector Specific Knowledge

• Management of business processes

• How to structure the processes and manage resources

INPUT PROCESS OUTPUT

BM Managerial Skills For Engineers 5

• All managers must transform inputs into outputs

• Example: Accounting Manager

– Inputs: data, information, labor

• All managers have an ―operation‖ to run

BM Managerial Skills For Engineers 6

BM Managerial Skills For Engineers 7

BM Managerial Skills For Engineers 8

The target markets determine the production plan,

BM Managerial Skills For Engineers 9

Optimize the Business Assets

Root Cause Analysis

Corrective Prevention Proactive

• Right Scope of Work Right Resources:

Business Long Term Continuous Improvement

BM Managerial Skills For Engineers 13

BM Managerial Skills For Engineers 15

BM Managerial Skills For Engineers 16

It is a systemic approach for total productivity improvement

BM Managerial Skills For Engineers 17

BM Managerial Skills For Engineers 19

• Searching out and adopting best practices

• Benchmarking is the backbone of the process of

• Key tools to promote continuous improvement

– Six sigma quality control

– Business process reengineering

BM Managerial Skills For Engineers 21

Leadership & Team Work

"Never cut what you can untie” Team size 9±3

Writing down your goals creates the

BM Managerial Skills For Engineers 23

Specific Measurable Applicable

BM Managerial Skills For Engineers 24

SMART  Main 5 Parameters

Day to week Week to 3 M 6 M to 1 Y 2 Y to 5 Y

BM Managerial Skills For Engineers 26

Short Term Long Term

Operational Tactical Strategic

BM Managerial Skills For Engineers 28

Constraints  a) Limited Res. b) Limited Time c) Limited Budget

Eq. Perf. 30 m3/hr

BM Managerial Skills For Engineers 33

BM Managerial Skills For Engineers 34

BM Managerial Skills For Engineers 35

BM Managerial Skills For Engineers 36

BM Managerial Skills For Engineers 37

The skill set for a good general manager!!

BM Managerial Skills For Engineers 40

BM Managerial Skills For Engineers 41

Profit = Revenue - Cost

Fixed Total cost

BM Managerial Skills For Engineers 43

Internal Total cost

BM Managerial Skills For Engineers 44