Engineering Management – Core Vocabulary

A set of 75 vocabulary flashcards summarizing essential terms and concepts from the Engineering Management lecture, covering management functions, motivation, leadership, operations, marketing, finance and risk.

Engineering Management

The activity that combines technical knowledge with the ability to organize and coordinate people, materials, machinery and money to achieve organizational objectives.

Management

The creative problem-solving process of planning, organizing, leading and controlling an organization’s resources to accomplish its mission and goals.

Planning

Selecting the best course of action so that desired results are achieved; deciding what, who, when, where and how tasks will be done.

Organizing

Structuring resources and activities, defining relationships and assigning authority so objectives can be met efficiently and effectively.

Leading

Influencing others to engage in the work behaviours necessary to reach organizational goals.

Controlling

Ascertaining whether objectives are achieved, comparing actual results with standards and taking corrective action.

Decision Making

The process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation.

Technical Skills

Specialized knowledge and proficiency needed to perform specific engineering or production tasks.

Human Skills

The ability to work with, motivate and communicate with other people individually or in groups.

Conceptual Skills

The capacity to see the organization as a whole and understand how its parts fit together.

Maslow’s Hierarchy of Needs

Theory that human needs form a five-level hierarchy: physiological, security, social, esteem and self-actualization.

Physiological Needs

Basic biological requirements such as food, water, rest and shelter; first level in Maslow’s hierarchy.

Security Needs

The need for safety, stability and freedom from harm or financial worry; second level in Maslow’s hierarchy.

Social Needs

The human desire for friendship, belonging and love; third level in Maslow’s hierarchy.

Esteem Needs

Needs for status, respect, recognition and self-respect; fourth level in Maslow’s hierarchy.

Self-Actualization Needs

The need to realize one’s full potential and become what one is capable of being; top level in Maslow’s hierarchy.

Herzberg’s Two-Factor Theory

Motivation theory stating that job satisfaction is influenced by motivators (satisfiers) and job dissatisfaction by hygiene factors (dissatisfiers).

Hygiene Factors

Workplace elements such as salary, supervision and policies that prevent dissatisfaction but do not motivate when present.

Motivation Factors

Achievement, recognition, responsibility and growth factors that create job satisfaction and motivate higher performance.

Expectancy Theory

View that motivation depends on the belief that effort will lead to good performance and desirable rewards.

Valence

The value or attractiveness an individual places on a reward or outcome.

Goal-Setting Theory

Concept that specific, challenging and accepted goals coupled with feedback lead to higher performance.

Feedforward Control

A preventive control that anticipates problems and ensures resources are in place before operations begin.

Concurrent Control

Monitoring activities as they occur to ensure they conform to standards and making adjustments in real time.

Feedback Control

Gathering information about completed activities to evaluate results and improve future performance.

Functional Organization

Structure that groups employees by specialized functions such as engineering, marketing or finance.

Product/Market Organization

Structure that groups activities around specific products, customers or geographic markets.

Matrix Organization

Dual-authority structure where employees report to both functional and project managers.

Line Authority

A manager’s right to direct subordinates and make decisions related to core activities.

Staff Authority

Right of specialists to advise and support line managers without direct command over operations.

Functional Authority

Specialist’s right to issue directives over activities related to their expertise across departments.

Job Shop

Manufacturing process producing custom products in small lots with general-purpose equipment and process layout.

Batch Flow

Process that produces own-designed products in medium lots with flexible equipment and process layout.

Worker-Paced Assembly Line

Line-flow production where the speed of work is set by operators rather than machines.

Machine-Paced Assembly Line

High-volume, standardized production line where machines set the pace of operations.

Continuous Flow

Process producing highly standardized items in very large volumes with rapid, uninterrupted flow.

Service Factory

Service operation offering a limited mix of services to many customers, emphasizing speed and low cost.

Service Shop

Service operation providing a diverse mix of customized services with moderate customer interaction.

Mass Service

Service system that serves a large number of customers simultaneously with low variability and limited customization.

Professional Service

Specialized, high-contact service such as engineering consulting, accounting or legal advice.

Product Mix

The complete set of products or services offered by a firm to satisfy customer needs.

Price

The money or other consideration exchanged for the purchase or use of a product, service or idea.

Promotion

Communication activities—advertising, publicity, personal selling, sales promotion—designed to influence attitudes and behaviour.

Place (Distribution)

The set of decisions that make a product or service available to customers when and where they want it.

Target Market

A specific group of customers whose needs a company selects to serve with a tailored marketing mix.

Marketing Mix

The blend of product, price, place and promotion strategies used to satisfy a chosen target market.

Short-Term Financing

Funding that must be repaid within one year, typically from trade credit, bank loans or commercial paper.

Long-Term Financing

Funds obtained for periods longer than one year, including term loans, bonds and equity capital.

Trade Credit

Short-term financing in which suppliers allow buyers to purchase now and pay later.

Commercial Paper

Unsecured short-term promissory note issued by large firms to raise working-capital funds.

Term Loan

Bank loan with a maturity of two to 30 years, often used for plant, equipment or working capital.

Debenture

Long-term bond that is not secured by specific collateral but relies on the issuer’s general credit.

Retained Earnings

Portion of corporate profits reinvested in the business instead of being paid as dividends.

Collateral

Assets pledged by a borrower to secure a loan and reduce the lender’s risk.

Liquidity Ratio

Financial metric that measures a firm’s ability to meet short-term obligations as they come due.

Current Ratio

Liquidity ratio equal to current assets divided by current liabilities; shows short-term debt-paying ability.

Acid-Test Ratio

Stringent liquidity ratio computed as (current assets – inventories) divided by current liabilities.

Inventory Turnover

Efficiency ratio that shows how many times inventory is sold or used during a period.

Debt-to-Total-Assets Ratio

Leverage ratio expressing total debt as a proportion of total assets; indicates financial risk.

Return on Equity

Profitability ratio measuring net income as a percentage of owners’ equity invested in the firm.

Risk Management

Organized strategy for protecting and conserving assets and people through identification and handling of risks.

Pure Risk

Risk that involves only the possibility of loss or no loss; insurable.

Speculative Risk

Risk that involves a chance of either loss or gain; generally uninsurable.

Self-Insurance

Planned risk retention in which a firm sets aside funds to cover potential losses instead of buying insurance.

Hedging

Risk-shifting technique involving offsetting commitments so that losses on one transaction are balanced by gains on another.

Quality Control Circle

Small group of employees who meet regularly to identify, analyze and solve work-related quality problems.

Self-Managed Team

Autonomous work group that takes on traditional managerial tasks such as scheduling and quality control.

Management Information System (MIS)

Organized method of providing past, present and projected information for decision-making via written and electronic means.

Span of Control

Number of subordinates who report directly to a manager.

Delegation of Authority

Process of assigning decision-making power and responsibility to lower-level employees.

Job Enlargement

Horizontal expansion of a job by adding similar tasks to increase variety and reduce boredom.

Job Enrichment

Vertical expansion of a job by adding responsibilities that give employees more control and growth.

Just-in-Time (JIT)

Inventory philosophy that seeks to eliminate excess stock by receiving goods only as they are needed in production.

Economic Order Quantity (EOQ)

Inventory model that calculates the optimal order size to minimize total ordering and holding costs.

Work-Flow Layout

Physical arrangement of equipment and activities that establishes the path materials follow through the production process.