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INTRODUCTION TO MANAGEMENT
What is an Engineer?
LATIN
INGENIUM
meaning: Skillful
Talented
Natural capacity or clever invention
OXFORD
designs, builds, and maintains engines, machines, and public works
has a scientific training
designs and builds complicated systems, structures, products, and machines
specializes in a branch of engineering
What is Management?
directs action of a group to achieving a goal in the most efficient manner
getting things done through other people
process of achieving a goal by working with and through other people and organizational resources
is a purposive activity, directs group efforts into attaining a predetermined goal
works with and through people to achieve an organizational goal with its limited resources in this changing world
THREE LEVELS OF MANAGEMENT
Top Level Management
Senior-most position holders responsible for taking decisions that will affect the firm thus impacting the overall growth and development of the organization
Positions
President
Executive Vice President
CEO
Project manager/project coordinator
Roles
Represents the whole enterprise
Responsible for defining the character, mission, and objectives of the enterprise
Establish and review the criteria for long-range plans
Evaluate the performance of major departments
Middle Level Management
Intermediary between the top level and lower level management
Responsible for effective implementation of plans and objectives set by the top level management
Positions
Project Engineer
Division head
Roles
Manage through other managers
Make plans of intermediate range to achieve long range goals set by top level management
Establish departmental policies, evaluate performance of subordinates and their managers
Provide; integrating and coordinating functions
Orchestrate decisions and activities of first line/lower level management
Lower Level Management
The bottom-most group of managers in an organizations
Responsible for managing work of non-managerial employees of the organization
Positions
Construction Foreman
Supervisor
Section Chief
Roles
Directly supervising the non-managerial employees
Carry out plans and objectives set by the higher management using personnel and resources assigned
Short-range operating plans governing what will be done tomorrow or next week, assign tasks to workers, supervise work, and evaluate performance
MANAGERIAL SKILLS
Interpersonal / Human Skills
Skills related to dealing with others and leading, motivating, or controlling them
Roles:
Figurehead
Leader
Liaison
Technical / Informational Skills
Specific subject-related skills such as engineering, accountancy, and others
Roles:
Monitor
Disseminator
Spokesperson
Conceptual / Decisional Skills
Ability to realize critical factors that determines the organization’s success or failure
Ability to see the forest in spite of the tree
Roles:
Entrepreneur
Disturbance handler
Resource Allocator
Negotiator
MAIN FUNCTION OF MANAGERS
Planning
Selecting missions and objectives.
Requires decision making
Organizing
Establishing the structure for the objective.
Staffing
Keeling filled the organization structure.
Leading
Influencing people to achieve the objective.
Controlling
Measuring and correcting the activities.
WHAT IS AN ENGINEERING MANAGEMENT?
Engineering Management
A specialized form of management that is required to successfully lead engineering and technical personnel
Applied to either functional management or project management
Engineering Managers
They use their training and experience to coach, mentor, and motivate technical personnel.
Engineering Manager’s Duties
Overseeing team members’ processes associated with engineering or construction projects
Providing management and leadership to a team of analysts or industrial engineers
Helping a company or organization in identifying cost and budget needs for a specific project in early planning
Delegating tasks and inspecting processes and project results for accuracy and quality
What Jobs can I get with an Engineering Management Degree?
Material Logistics Professional
Automation Engineer
Chemical Process Engineer
Firmware Engineer
Construction Project Engineer
Design Engineer
Technical Consultant
DECISION-MAKING IN MANAGEMENT
What is Decision Making?
The process of identifying and choosing an alternative course of action appropriate for the demands of the situation
The heart of all management functions
Three Levels of Management
Strategic Level
Long-term decisions
(TOP LEVEL MANAGEMENT)
Tactical Level
Medium-term decisions
(MEDIUM LEVEL MANAGEMENT)
Operational Level
Day-to-day decisions
(LOWER LEVEL MANAGEMENT)
FOR ALL LEVELS
Management must strive to choose the decision option as correctly as possible
Since they have the power, they are also responsible for the outcome their decision brings
The higher the management level, the bigger and more complicated decision-making becomes
Decision-Making Process
Diagnose the problem
Analyze the environment
Develop viable alternative
Evaluate alternative
Make a choice
Implement decision
Evaluate and adapt to decision results
APPROACHES IN PROBLEM SOLVING
Qualitative Evaluation
Evaluation of alternatives using intuition and subjective decision
Managers use this when:
problem is simple
problem is familiar
cost involved are not great
immediate decisions are needed
Quantitative Evaluation
Refers to the alternative using any technique in a group classified as rational or analytical
Evaluation method that yields numerical indices gathered primarily from formal (objective) methods of data collection, systematic and controlled observation, and prescribed research design
Quantitative Models for Decision Making
Inventory Models
consists of several types all designed to help the engineer manager make decisions regarding INVENTORY
Economic Order Quantity Model - used to calculate number of items that should be ordered at one time to minimize total yearly cost of placing orders and carrying items in inventory.
Production Order Quantity Model - economic order quantity technique applied to production order.
Back Order Inventory Model - used for planned shortages.
Quantity Discount Model - used to minimize total cost when quantity discounts are offered by suppliers.
Queuing Theory
describes how to determine the number of service units that will minimize both customer waiting time and cost of service
Queuing theory is applicable for companies where waiting lines are common situations
Network Models
Models where large complex tasks are broken into small segments that can be managed independently
Program Evaluation Review Technique - enables engineer managers to schedule, monitor, and control large and complex projects by employing three time estimates for each activity
Critical Path Method - network technique using only one time factor per activity that enables engineer managers to schedule, monitor and control large and complex projects
Forecasting
There are instances where engineer managers make decisions that will have implications in the future
Forecasting is a decision-making tool used by many businesses to help in budgeting, planning, and estimating future growth.
Forecasting is the attempt to predict future outcomes based on past events and management insights.
Regression Analysis
regression is a forecasting method that examines the association between two or more variables.
Simple Regression - one independent variable is involved
Multiple Regression - two or more variables are involved
Simulation
model constructed to represent reality, on which conclusions about real-life problems can be used
A highly sophisticated tool by which the decision-maker develops a mathematical model of the system under consideration
Linear Programming
quantitative technique that is used to produce an optimum solution within the bounds imposed by constraints upon the decision
a very useful decision-making tool when supply and demand limitations at plants, warehouses, or market areas are constraints upon the system
Sampling Theory
quantitative technique where samples of populations are statistically determined to be used for a number of processes, such as quality control and marketing research
when data gathering is expensive, sampling provides an alternative. Sampling saves time and money
Statistical Decision Theory
refers to the rational way to conceptualize, analyze, and solve problems in situations involving limited or partial information about the decision environment
focuses on the investigation of decision-making when uncertainty can be reduced by information acquired through experimentation
SEVEN FUNCTIONS OF MANAGEMENT
Planning
determining the long and short term objectives (ends) of the institution or unit and the actions (means) that must be taken to achieve these objectives.
Purpose of Planning
Gives direction to the organization
Improves efficiency
Eliminates duplication of efforts
Concentrates resources on important services
Reduces guesswork
Improves communication and coordination of activities
Planning Heirarchy
Strategic Planning
- Top Level Managers
- formulate long term strategic planning to reinforce the firm’s mission (mission clarifies organizational purpose)
- strategic plans are specified for five years period or more; but circumstances dictate the planning horizon
Tactical Planning
- Middle Management
- responsible for translating strategies onto shorter term tactics
- tactical plans are often specified in one-year increments
- translating strategic plans into measurable tactical objectives is important because most strategic objective is rather vague
Operational Planning
- First Line Managers (Lower Level)
- More concerned with budget, quotas, and schedules
- Refinements of tactical objectives in which work is defined and results are measured in small increments
- time horizon for operational planning is very short. most reflect operational cycles.
Establish Objectives
Every plan has the primary purpose of helping the organization succeed through effective management. Success is defined as achieving organizational objectives. These are performance targets, the end results that managers seek to achieve.
Characteristics of Objectives:
Specific
Measurable, Realistic, and Challenging
Defined time period
Organizing
defined as the arranging of component parts into functioning wholes.
purpose of organizing is to coordinate activities so that a goal can be achieved.
planning and organizing are often used synonymously. planning is the determination of what is to be accomplished, and organizing is the determination of how it will be accomplished.
Six Steps in the Organizing Process
Establish overall objectives
Formulate supporting objectives, policies, and plans
Identify and classify activities necessary to accomplish the objectives
Group the activities in light of the human and material resources available and the best way of using them under the circumstances
Delegate to the head of each group and the authorities necessary to perform the activities
Tie the groups together horizontally and vertically, through authority relationships, and information systems
