ENGMAN MIDTERMS MOD 3 PART 1

Human Resource Management

It is concerned with obtaining and maintaining of a satisfactory and satisfied workforce.

Human Resource Management

It is a specialized branch of management concerned with Man Management.

Human Resource Management

It’s objective is to create and promote team spirit among workers and managers.

Production Management

It refers to planning, organizing, direction, coordination, and control of production function.

a. Product planning and development

b. Plant location, layout and maintenance

c. Production systems and machines

d. Management of purchase and storage of materials

e. Ensuring effective production control.

Production Management Involves the following:

Office Management

Defined as the organization of an office in order to achieve a specified purpose and to make the best use of the personnel by using the most appropriate machines and equipment.

Financial Management

It is the study of relationship between the raising of funds and the development of funds.

\- Capital budgeting cost of capital

\- Portfolio management

\- Dividend policy

\- Short and long term sources of finance.

Financial Management Subject matter

Top-Level Managers

The board of directors, president, vice-president, and CEO

Top-Level Managers

Responsible for controlling and overseeing the entire organization.

Top-Level Managers

play a significant role in the mobilization of outside resources.

Top-Level Managers

Develop goals, strategic plans, company policies, and make decisions on the direction of the business.

Top-Level Managers

accountable to the shareholders and general public.

Middle-Level Managers

General managers, branch managers, and department manager.

\- Executing organizational plans

\- Defining and discussing information and policies

\- Inspiring and providing guidance

Middle-Level Manager Roles:

\- Designing and implementing effective group work.

\- Defining and monitoring group-level performance indicators

\- Diagnosing and resolving problems

\- Designing and implementing reward systems

Middle-Level Manager Functions:

Low-Level Managers

Supervisors, section leads, and foremen

\- Assigning employees tasks

\- Guiding and supervising employees

\- Ensuring the quality and quantity of production

\- Making recommendations and suggestions

\- Up-Channeling employee problems

Low-Level Manager Responsibility:

\- Basic supervision

\- Motivation

\- Career planning

\- Performance Feedback

\- Staff supervision

Low-Level Manager Functions:

It is the most important activity in managing an organization.

Planning

Provides a methodological way of achieving desired results

Planning

Involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives.

Planning

Selection and sequential ordering of tasks required to accomplish the goals.

Planning

Selecting the best course of action so that the desired result may be achieved.

Top management level

Middle management level

Lower management level

Planning activities undertaken at various levels

Top management level

strategic planning

Middle management level

intermediate planning

Lower management level

operational planning.

Strategic Planning

Process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals

Intermediate Planning

Process of determining the contributions that sub-units can make with allocated resources

Operational Planning

Process of determining how specific tasks can be accomplished on time with available resources

Goal

Precise statement of results sought, quantified in time and magnitude, where possible

STEP 1. SETTING ORGANIZATIONAL, DIVISIONAL OR UNIT GOALS

The first task of the engineer manager is to provide a sense of direction to his firm, division, or unit.

STEP 2. DEVELOPING STRATEGIES OR TACTICS TO REACH GOALS

Devise some means to realize the goals.

Strategies

Ways to realize goals

Strategies

\- Course of action aimed at ensuring the organization will achieve its objectives

Tactic

Short-term action taken by management to adjust to negative internal or external influences

STEP 3. DETERMINING RESOURCES NEEDED

Process of determining the human and non human resources required by such.

STEP 4. SETTING STANDARDS

Standards for measuring performance may be set at the planning stage.

Standard

Quantitative or qualitative measuring device designed to help monitor the performances of people, capital goods, or processes.

Marketing Plan

Document for implementing and controlling an organization’s marketing activities related to a particular marketing strategy.

Production Plan

Document that states the quantity of output a company must produce in broad terms and by product family.

Financial Plan

Document that summarizes the current financial situation of the firm, analyzes financial needs, and recommends a direction for financial activities.

Human Resource Management Plan

Document that indicates the human resource needs of a company detailed in terms of quantity and quality.

Short-range plans

these are plans intended to cover a period of less than one year. First-line supervisors are mostly concerned with these plans.

Long-range plans

these are plans covering a time span of more than one year. These are mostly undertaken by middle and top management.

Standing plans

are plans that are used again and again, and they focus on managerial situations that recur repeatedly. i.e., Policies, Procedures and Rules.

Single-use plans

plans are specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated. i.e., Budgets, Programs, and Projects

Organizing

It is undertaken to facilitate the implementation of plans.

Organizing

Refers to the structuring of resources and activities to accomplish objectives in an efficient and effective manner.

Structure

Arrangement or relationship of position within an organization.

Formal Organization

An organization is formed after a plan is adapted in order to carry out the activities indicated in the plan.

\- Organization Chart

\- Organizational Manual

\- Policy Manuals

Formal Structure is described by management through

Formal Organization

The structure that details lines of responsibilities, authority, and position

Informal Groups

There are instances when members of an organization spontaneously form a group with friendship as a principal reason for belonging.

Informal Groups

Vulnerable to expediency, manipulation, and opportunism

Informal Groups

Spontaneously form a group with friendship as a principal reason for belonging.

Functional Organization

This is a form of departmentalization in which everyone engaged in one functional activity, such as engineering or marketing, is grouped into one unit.

Product or Market Organization

This refers to the organization of a company by divisions that brings together all those involved with a certain type of product or customer.

Matrix Organization

An organizational structure in which each employee reports to both a functional or division manager and to a project or group manager.

Functional Organization

Very effective in smaller firms especially in single-business firms where key activities revolve around well-defined skills and areas of specialization.

● Grouping of employees who perform a common task permit economies of scale and efficient resource use.

● Decision-making is centralized, providing a unified direction from the top.

● Communication and coordination among employees within each department are excellent.

● Promotes high-quality technical problem-solving.

● Organization is provided with in depth skill specialization and development.

● Employees are provided with career progress within functional departments.

FUNCTIONAL ORGANIZATION **ADVANTAGES**

● Communication and coordination between the departments are often poor.

● Decisions involving more than one department pile up at the top management level and are often delayed

● Work specialization and division of labor,Difficult to identify which section or group is responsible for certain problems.

● limited view of organizational goals by employees.

● limited general management training for employees.

FUNCTIONAL ORGANIZATION DISADVANTAGES

Product or Market Organization

Appropriate for a large corporation with many product lines in several related industries.

● Flexible and responsive to change.

● Provides a high concern for customer’s needs.

● Provides excellent coordination across functional departments.

● Emphasis on overall product and division goals.

● Opportunity for the development of general management skills is provided.

PRODUCT OR MARKET ORGANIZATION ADVANTAGES

● High possibility of duplication of resources across divisions.

● Less technical depth and specialization in divisions.

● Poor coordination across divisions.

● Less top management control.

● Competition for corporate resources.

PRODUCT OR MARKET ORGANIZATION DISADVANTAGES

Matrix Organization

A structure with two or more channels of command, two lines of budget authority, and two sources of performance and reward.

Matrix Organization

Designed to keep employees in a central pool

● Efficient use of resources than the divisional structure.

● Flexibility and adaptability to changing environment.

● Development of both general and functional management skills

● Interdisciplinary cooperation and any expertise is available to all divisions.

● Enlarged tasks for employees which motivate them better.

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MATRIX ORGANIZATION ADVANTAGES

● Frustration and confusion from dual chain of command.

● High conflict between divisional and functional interests.

● Many meetings and more discussion than action. 4.

● Need for human relations training for key employees and managers.

● Tendency for power dominance by one side of the matrix.

MATRIX ORGANIZATION DISADVANTAGES

Line Authority

Staff Authority

Functional Authority

TYPES OF AUTHORITY

Line Authority

a manager’s right to tell subordinates what to do and then see that they are doing their tasks.

Staff Authority

a staff specialist’s right to give advice to a superior.

Functional Authority

a specialist’s right to oversee lower level personnel involved in that specialty,

Line Department

Perform tasks that reflect the organization’s primary goal

Staff Departments

All those that provide specialized skills in support of line departments.

Personal Staff

Individuals assigned to a specific manager to provide needed staff services.

Specialized Staff

Individuals providing needed staff services for the whole organization.

Functional Authority

Given to a person or a work group to make decisions related to their expertise.

Staffing

Upon establishment of an organizational structure, the next step is to fill up the identified positions with the most qualified persons available.

Effective Staffing

places the engineering organization on a competitive stance.

Staffing

Management function that determines human resources needs, recruits, selects, trains, and develops human resources for jobs created by an organization

1\. Human Resource Planning

2\. Recruitment

3\. Selection

4\. Induction and Orientation

5\. Training and Development

6\. Performance Appraisal

7\. Employment Decisions

8\. Separations

Staffing Procedure

STEP 1. HUMAN RESOURCE PLANNING

Planned output of any organization will require a systematic deployment of human resources at various levels.

Forecasting

Assessment of future human resource needs

Programming

Translating the forecasted human resource needs to personnel objectives and goals.

Evaluation and Control

Monitoring human resource action plans and evaluating their success.

Time Series Methods

Use historical data to develop forecasts of the future.

Explanatory or Causal Methods

attempts to identify the major variables that are related to or have caused particular past conditions

Regression Models

Econometric Models

Leading Indicators

Types of Explanatory, or Causal Methods

Monitoring Methods

Provide early warning signals of significant changes

STEP 2. RECRUITMENT

Refers to attracting qualified persons to apply for vacant positions.

STEP 3. SELECTION

Act of choosing from those that are available the individuals most likely to succeed on the job.

● Psychological Tests

● Physical Examination

Types of Selection Test

STEP 4. INDUCTION AND ORIENTATION

After an applicant is finally selected and subsequently hired

Induction

New employee is provided with the necessary information about the company

Orientation

New employee is introduced to the immediate working environment and co-workers.

STEP 5. TRAINING AND DEVELOPMENT

Refers to the learning that is provided in order to improve performance on the present job.

Training Programs for Non-managers

To increase skill and knowledge to perform a particular job

Training and Educational Programs for Executives

Decision-making Skills, Interpersonal Skills, Job Knowledge, and Organizational Knowledge.