Engineering Management and Law

What are you as a sole trader?

Both and employee and employer

What are you as an equal partner in a company?

You could be both an employee and employer

What is a positive of technology?

Increased life expectancies

What are negatives of technology?

• Climate change

• Plastic pollution

• Global shortage of fresh water

• Rising sea temperature

• Renewable energy

• GenAI

What do the solutions for the issues created by technology include?

Both engineering and technology and politics

What is management?

1. the process of dealing with or controlling things people

2. the people managing a company or organisation

3. responsibility for or control of a company or organisation

What is organisation?

1. an organised group of people such as a business

2. the action of organising something

3. the way in which elements of a whole are arranged

What are the types of organisations

• Team / Group / Committee

• Profit Sharing Partnership / Private Company

• Publicly Traded Company (listed on a stock market)

• Government / Department / Agency

• Charity / Social Enterprise / University (‘Think Tanks’)

According to Giachetti & Marchi when is the potential for leadership changes in firms greater?

When undertaking ‘aggressive’ competitive actions and when ‘significant’ windows of

opportunity are open

What does management involve?

decision making,

planning,

implementation,

prioritisation,

efficient working,

building relationships,

motivating,

resourcing,

foresight,

leadership

What kind of models does Operations Research and Computational Economics use for management solutions?

mathematical ones, with algorithms

How many years has management been studied?

around 200 years

Why do diverse teams perform better?

• they focus more on facts (rather than

biases)

• they process those facts more carefully

• they are also more innovative

(avoid groupthink confirmation bias)

What does Kahneman explain in Thinking, Fast and Slow?

how decision making is affected by many unconscious biases

What does Systemic Deliberation help to avoid?

bias

What does UK-SPEC stand for and when was it first published?

UK Standard for Professional Engineering Competence, first published in 2003 (latest version 4, 2020).

What technical abilities must Chartered Engineers demonstrate?

Theoretical knowledge to solve problems, develop new techniques, deliver innovative products/services, and take responsibility for complex systems.

What non-technical aspects must Chartered Engineers demonstrate?

Financial/project planning, leadership/mentoring, communication, awareness of safety and sustainability.

What professional values must Chartered Engineers uphold?

Safety, sustainability, codes of conduct, CPD, ethical responsibilities, inclusivity/diversity, security-mindedness, active participation.

What does the Engineering Council do?

Publishes UK-SPEC, regulates protected titles (CEng, IEng, EngTech), maintains register of accredited engineers, partners with ~40 professional institutions.

What are the benefits of joining a professional engineering body?

Professional recognition, career guidance, technical events, publications, specialist groups, networking, legal/health advice.

Name key institutions and founding years.

Institution of Civil Engineers (1818), Mechanical Engineers (1847), Electrical Engineers → IET (1871, renamed 2006), BCS (1956).

What is the IET?

Institution of Engineering and Technology (150,000+ members worldwide), accredits EE/Info Eng degrees, runs Inspec, publishes journals, offers memberships.

What is the BCS?

British Computer Society (~60,000 members), Chartered IT Professional and Chartered Engineer titles, IT qualifications, journals, HQ in Swindon + global offices.

Why is degree accreditation important?

Shows academic requirements for CEng are met, simplifies application process, reviewed every 5 years by panels, listed in Engineering Council database.

List the 4 principles of the Engineering Council’s Statement of Ethical Principles

1) Honesty & integrity,

2) Respect for life, law, environment, public good,

3) Accuracy & rigour,

4) Leadership & communication.

What are the main US equivalents of IET and BCS?

IEEE (400,000+ members, publishes 30% of literature) and ACM (~100,000 members, publishes 50+ journals, runs Turing Award).

What is the Seoul Accord vs Washington Accord?

Seoul Accord – Computing/IT accreditation (8+ signatories, e.g. UK, US, Japan). Washington Accord – Engineering (21 signatories, e.g. UK, US, China).

What non-technical skills are currently most in demand in IT job adverts?

Social skills (#1), finance (#3), problem-solving (#10), mentoring (#23).

What are key skills for design engineers?

Maths, technical software skills, creativity/design, visual awareness, problem-solving, communication, commercial awareness, project/time management.

Compare key skills of I/S Managers and Production Managers.

• I/S Manager: strong technical + analytical skills, teamwork, organisation, communication, leadership.

• Production Manager: confidence, technical + IT/numerical skills, project/people management, efficiency, problem-solving.

Who should manage engineering teams?

Debate between engineers, managers, or those with both engineering & management expertise.

Why should engineers understand finance?

Essential for project planning, running companies, or career changes; includes financial analysis, budgeting, and investment appraisal.

What are the 5 stages of development identified by Topchik?

• Attention getting – lacks knowledge, mistakes, missed deadlines.

• Flying blind – busy, works late, fears admitting weakness.

• Steadiness – completes assignments, little interest in developing.

• On the rise – high-quality work, trustworthy, eager to learn.

• Doing – work early, respected, ambitious.

What do Harter et al. (2002) and Zenger et al. (2011) suggest about personal growth?

Doing what you do best daily increases productivity and success, but to reach the top you must develop complementary skills.

What motivated Steve Jobs?

Loving what he did kept him going.

What increases effectiveness according to Zenger et al.?

Having a range of strengths – no strengths = 34th percentile, 5 strengths = 91st percentile.

Give examples of important strengths.

Honesty/integrity, expertise, problem-solving, innovation, communication, teamwork, motivating others.

What is “flow” in psychology?

A state of immersion and focus, forgetting self, leading to achievement and happiness.

Why is multi-tasking harmful?

It reduces effectiveness by splitting focus.

What does Topchik’s “committee of people” refer to?

Internal distractions/noise in your head.

What are the principles of Crystal Clear (Cockburn 2005)?

Small teams (2–7 developers), information radiators, access to expert users, minimal distractions, deliver usable code every 1–2 months, reflect and adjust.

What does the Eisenhower Matrix categorise?

Tasks into:

• Important & Urgent → Do it now.

• Important, Not Urgent → Schedule it.

• Not Important, Urgent → Delegate it.

• Not Important, Not Urgent → Ask why you’re doing it.

What are the personal habits in Seven Habits by Covey 1989?

Be proactive, start with the end in mind, put first things first, sharpen the saw.

What are the interpersonal habits in Seven Habits by Covey 1989?

Think win-win, seek first to understand then be understood, synergise (1+1 > 2)

What is the core idea of habits according to Covey?

Habits = intersection of knowledge (what/why), skills (how), and desire (want to).

What is the purpose of self-management questionnaires?

To reflect on strengths/weaknesses, plan improvements; based on psychology, not personality

Name the self-management strategies in Houghton & Neck (2002).

• Behaviour-focused: self-goal setting, self-reward, self-punishment, self-observation, self-cueing.

• Constructive thought: natural rewards, visualising success, self-talk, evaluating beliefs/assumptions.

What are the 6 stages of Gibbs’ Reflective Cycle?

Description, Feelings, Evaluation, Analysis, Conclusion, Action Plan.

What does SMART stand for?

Specific, Measurable, Achievable (Assignable), Realistic (Relevant), Time-bounded.

What are the 5 components of emotional intelligence?

Self-awareness, self-management, motivation, empathy, social skills.

How can you improve emotional intelligence?

Reflect, empathise, align passion with mission, manage tasks (Eisenhower grid), put phone away, be humble, keep learning, use SMART goals.

What is a company?

An institution aimed at generating profit 

What do a shares represent?

a fixed fraction of the firm

Can shares of a public company be bought?

Yes via stock exchange

Do companies have to publish their accounts?

Yes

Public companies sharing accounts vs private ones

Yes, they must provide more detailed accounts than private ones as any member of the public might buy shares based on this information

What are the stages of a company life cycle?

Start up, Rapid growth, Maturity, Decline, Rebirth or Death

What is entrepreneurship? 

Starting your own company, comes with more control and possibly more funds and wealth

What is an intrapreneurship?

Starting a mini business within a company where the employer funds the work. This is less risky, has a richer pool of talent but comes with less control and potential reward

What happens in the start up phase for a company?

Start Up Founders initially own the company

They may seek funding from business angels or venture capitalists

To persuade investors there should be a business model and plan

Startups may pivot or change plans

What happens in the Rapid Growth phase of a company?

The business model now works

More staff, sites, and other assets are needed

Cash flow can be a problem

The company may list with a stock market and offer shares to the public (IPO) to raise cash

What happens in the maturity phase of a company?

Growth has stabilised

The business is established in its market

Its focus is optimising its profits

Shareholders expect regular dividends as the share price is stable

What happens in the decline phase of a company?

Market or market share is shrinking

It’s time to cut costs, staff, …, and plan a rebirth/innovate

Dividends may be cut or stopped

Share buy-backs may support the share price

What happens in the rebirth stage of a company?

The company improves its products or services

Or switches to a new line of business

What happens in the death stage of a company?

Acquisition

Merger

Bankruptcy

Liquidation

What is Gibrat’s law?

Growth of a business occurs in random shocks

• there are no systematic determinants of business growth

What size firms does Gibrat’s law hold up better for?

Larger firms as smaller firms generally have a size and growth that is inversely proportional.

What is the Penrose effect?

Fast growing firms will have higher operating costs than their slower growing counterparts but will make more benefit and componsate for it

According to Robin Marris how can managers ensure an optimum rate of growth for a firm?

Choosing the growth rate that maximizes the price of shares and also gives satisfactory dividends to shareholders

What are the roles of the state?

Regulation and legislation

Public goods and services

Economic savery

Social welfare

Market failures

What are the five stages to business decline?

Blinded

Inaction

Faulty action

Crisis

Dissolution

What is the fundamental accounting equation?

Assets = Liabilities + Equity

How is the fundamental accounting equation maintained?

By double entry booking, every transaction is entered twice and these must balance ensuring the new values also satisfy the equation

What are the two main branches of accounting?

Financial accounting and management accounting

What does financial accounting consist of?

• annual reports of the company’s situation

• these are published to shareholders and the public

• must be audited to confirm their correctness

• used by investors to decide whether to buy, hold or sell shares

What does management accounting consist of?

• provides additional and more up to date information

• typically include data which is company confidential

• used to monitor, measure and manage performance

• and support management decision making

What does a balance sheet show?

assets, liability and equity at a defined moment

What does a profit and loss report show?

income and expenses

What does an equity statement show?

Retained earnings

What does a cash flow statement report on?

operating costs, investing & finances

What are the fundamental qualitative characteristics of financial information as stated by IFRS?

relevance

faithful representation

What are the enhancing qualitative characteristics of financial information as stated by IFRS?

• comparability

• verifiability

• timeliness

• Understandability

What does IFRS stand for?

International Financial Reporting Standard

What is Market Capitalisation (market cap)?

share price × number of shares

What is earnings Per Share (EPS)?

profit ÷ number of shares

What is beta in terms of financial analysis?

a measure of volatility compared with the rest of the market

What is the definition of management accounting?

analysing information to advise

business strategy and drive sustainable business success

What are the three budgeting approaches?

Top-down approach

Bottom-up approach

Participatory approach

How does a top-down budgeting approach work?

• senior managers tell lower levels what is expected, leave them to work out details

• emphasises strategy over operations

How does a bottom-up budgeting approach work?

• lower levels tell senior managers what they can achieve, what resources they need

• emphasises operations over strategy

How does a participatory approach work?

• the budget is negotiated between different levels in the organisation

• may lead to compromises

What are the five main benefits of budgets to a business? 

They promote forward thinking and identification of short-term problems

They Motivate managers to better performance

They provide a basis for a system of control

They Help co-ordinate the various sections of the business

They Provide a system of authorisation

What is a cost center?

an identifiable part of an organisation to which costs can be assigned and aggregated

Give examples of a cost centre in a manufacturing setting?

• a particular department or activity, e.g. marketing, assembly, inspection

• a machine or group of machines

• an individual or group of individuals

Why should cost be measured?

• To help in determining the selling price

• To help in production planning

• To maintain management control

• To support management decision making

What is the Cost Accounting and Profit Model

π = pq – (F + wq)

where

π is profit

p is sales price

q is quantity sold

F is fixed costs

w is variable costs per unit sold

What is the Diverted Profits Tax (DPT)

A tax introduced in the UK in 2024 designed to counter aggressive tax planning by some multinationals to divert profits from the UK

• used to counter profit shifting