INTRODUCTION TO

ENGINEERING MANAGEMENT
MANagement is…
• Getting things done through people.
• The process of achieving organizational goals by
engaging in the four major functions of planning &
decision-making, organizing & staffing,
directing/leading, and controlling.
• Identifying a “force”/group of people whose job is to
direct the effort and activities of other people
towards a common organizational objective.
• The performance of conceiving and achieving desired
results by means of group effort consisting of utilizing
resources, that will determine the success and failure
of an organization.
A Chinese Proverb

“If you are planning for one

year – plant rice. If you are
planning for ten years – plant
trees. But if you are planning
for 100 years – plant people!”
Engineering Management is…

• The process of designing and maintaining an

environment in which, individuals, working together
in groups, efficiently accomplish organizational
goals/objectives.
Management applies to any kind of organization.
It applies to all managers at all organizational levels.
The aim of all managers is the same; to create a
surplus.
Managing is concerned with productivity, which
implies effectiveness and efficiency.
Functions of Management
• Planning & Decision-Making
 Involves selecting goals and objectives, as well as the
actions to achieve them; it requires decision-making, that is
choosing the “best” from among alternatives.
• Organizing
 Involves establishing an intentional structure of roles for
people to fill in an organization.
 The process of allocating and arranging human and non-
human resources so that plans can be carried out
successfully.
• Staffing
 Involves filling, and keeping filled, the positions in the
organization structure.
 Process by which managers select, train, promotes, and
retires subordinate.
Functions of Management
• Directing/Leading
 Influencing people so that they will contribute to
organizational and group goals.

• Controlling
 Measuring and correcting individual and organizational
performance to ensure that events conform to plans

 Facilitates the accomplishment of plans.

 The process of regulating organizational activities so that

actual performance conforms to expected organizational
standards.
Managerial Levels

Strategic Managers who are ultimately responsible

for the entire organization. Typical titles include
CEO, COO, CFO, “President”, “Executive Vice
TOP President”, “Executive Director”, “Senior Vice
President”, or “Vice President”.

Tactical Managers located beneath the top

levels of the hierarchy who are directly
MIDDLE responsible for the work of managers at lower
levels. Titles include “Manager”, “Director of”,
“Chief”, “Department Head”, and “Division Head”.

FIRST-LINE Operational Managers at the lowest level of

the hierarchy who are directly responsible for
the work of operating (non-managerial)
employees. Often have titles that include the
word “Supervisor”.
Management Skills and Levels

Top Management

Conceptual
and design
skills
Middle
Management
Human
skills

Technical
skills

Supervisors Percentage of job

What Managers Actually Do?
• Unrelenting Pace
 Managers began working the moment they arrived at the office in the
morning and kept working until they left at night. (e.g. Rather than
taking coffee breaks they usually drink their coffee while they attended
meetings, lunches were almost eaten in the course of formal or
informal meetings.

• Brevity, Variety, and Fragmentation

 Managers handled a wide variety of issues throughout the day. (e.g.
Awarding a retirement plaque to discussing the bidding on a multi-
million-dollar contract.

• Verbal Contacts and Networks

 Managers showed a strong preference for verbal communication and
relied heavily on networks. A network is a set of cooperative
relationships with individuals whose help is needed in order for a
manager to function effectively.
Other Management Aspects

• Characteristics of excellent and most admired

managers.

• Productivity, Effectiveness, and Efficiency.

• Managing – Science or Art?

• History/Evolution of Management Thought.

Excellent managers are/have

good communicator
acquire the skills of listening, speaking, reading, and writing
integrity
flexible “living it myself before leading others”
multi-tasker, imaginative and innovative

focused
try to see the “big picture” within the forest of details

committed
willing to do whatever it takes attain organizational success

people-oriented
knows that people’s feelings are important
gratitude
“give credit where it is due”
Productivity, Effectiveness, and
Efficiency

Productivity is an index that measures output (goods

and services) relative to the input (labor, materials,
energy, and other resources) used to produce them.
Effectiveness means the capability of producing an
effect. (doing the "right" things)
Efficiency is a measure of how well a certain aspect is
performing. (doing the things “right”)
Is Management a Science or an Art?

Definitions according to Webster's College

Dictionary:

Art – “skill in conducting any human activity”

Science – “any skill or technique that reflects a
precise application of facts or a principle”
The Evolution of Management Theory

• Began in the industrial revolution in the late

19th century as:
- Managers of organizations began seeking ways to
better satisfy customer needs.
- Large-scale mechanized manufacturing began to adopt
small-scale craft production in which goods were
produced.
- Social problems were developed in the large groups of
workers employed under the factory system.
- Managers began to focus on increasing the efficiency of
the worker-task mix.
The Evolution of Management Theory
The Evolution of Management Theory

• Adam Smith (18th century economist)

– Observed that firms manufactured pins in one of
two different ways:
• Craft-style - each worker did all steps.
• Production - each worker specialized in one step.
– Realized that job specialization resulted in much
higher efficiency and productivity
• Breaking down the total job allowed for the division of
labor in which workers became very skilled at their
specific tasks.
The Evolution of Management Theory

• Frederick Winslow Taylor

– “Father "of Scientific Management (systematic
study of the relationships between people and
tasks for the purpose of redesigning the work
process for higher efficiency”) in the late 1800’s to
replace informal rule of thumb knowledge.

– Taylor sought to reduce the time a worker spent

on each task by optimizing the way the task was
done.
The Evolution of Management Theory

Taylor’s Four Principles of Scientific Management

1. Scientifically study each part of a task and develop the
best method for performing it.
2. Carefully select workers and train them to perform the
task using the scientifically developed method.
3. Cooperate fully with workers to ensure that they use
the proper method.
4. Divide work and responsibility so that management is
responsible for planning work methods using scientific
principles and workers are responsible for executing
the work accordingly.
The Evolution of Management Theory

• Frank and Lillian Gilbreth

– Refined Taylor’s work and made many
improvements to the methodologies of time and
motion studies.
– Time and motion studies
• Breaking up each job action into its components.
• Finding better ways to perform the action.
• Reorganizing each job action to be more efficient.
– Also studied worker-related fatigue problems
caused by lighting, heating, and the design of tools
and machines.
The Evolution of Management Theory

• Max Weber
– Developed the concept of bureaucracy as a formal
system of organization and administration
designed to ensure efficiency and effectiveness.
The Evolution of Management Theory

Weber’s Five Principles of Bureaucracy

1. Authority is the power to hold people accountable for their
actions.
2. Positions in the firm should be held based on performance,
not social contacts.
3. Position duties are clearly identified so that people know
what is expected of them.
4. Lines of authority should be clearly identified such that
workers know who reports to who.
5. Rules, standard operating procedures (SOPs), and norms
guide the firm’s operations.
The Evolution of Management Theory

• Henri Fayol

– Synthesized various tenets or principles of

organization and management

– He published "The Principles of Scientific

Management" in the USA in 1911
The Evolution of Management Theory

Fayol’s 14 Principles of Management

1. Division of work – divide work into specialized tasks
and assign responsibilities to specific individuals.
2. Authority – delegate authority along with
responsibility.
3. Discipline – make expectations clear and sanction
violations.
4. Unity of command – each employee should be
assigned only to one supervisor.
5. Unity of direction – employees’ efforts focused on
achieving organizational objectives.
The Evolution of Management Theory

6. Subordination of individual interest to the general

interest – the general interest must predominate.
7. Remuneration – systematically reward efforts that
supports the organization’s direction.
8. Centralization – determine the relative importance
of superior and subordinate roles.
9. Scalar chain – keep communications within the
chain of command.
10. Order – order jobs and material so they support
the organization’s direction.
The Evolution of Management Theory

11. Equity – managers should be kind and fair to their

subordinates .
12. Stability of tenure – management should provide
orderly personnel planning and ensure that
replacements are available to fill vacancies.
13. Initiative – employees who are allowed to originate
and carry out plans will exert high levels of effort .
14. “Esprit de corps” – promoting team spirit will build
harmony and unity within the organization.
Approaches to Management

1. Empirical or Case Approach

 Studies experience through cases.
 Identifies successes and failures.
Approaches to Management

2. Contingency or Situational Approach

 Managerial practice depends on circumstances (i.e., a
contingency or a situation).
 Contingency theory recognizes the influence of given
solutions on organizational behavior patterns.
Approaches to Management

3. Mathematical or “Management Science” Approach

 Sees managing as mathematical processes, concepts,
symbols, and models.
 Looks at management as a purely logical process,
expressed in mathematical symbols and relationships.
Approaches to Management

4. Decision Theory Approach

 Focuses on the making of decisions, persons or groups
making decisions, and the decision-making process.
Approaches to Management

5. Re-engineering Approach
 Concerned with fundamental re-thinking, process
analysis, radical re-design, and dramatic results.
Approaches to Management

6. Systems Approach
 Systems have boundaries but they also interact with the
external environment; that means organization are open
systems.
 Recognizes the importance of studying interrelatedness
of planning, organizing, and controlling in an organization
as well as in the many subsystems.
Approaches to Management

7. Socio-technical Approach
 Technical system has a great effect on the social system
(personal attitudes, group behavior).
 Focuses on production, office operations, and other areas
with close relationships between the technical system and
people.
Approaches to Management

8. Group Behavior Approach

 Emphasizes behavior of people in groups and primarily
studies group behavior patterns; based on sociology and
social psychology.
 The study of large groups is often called organizational
behavior.
Approaches to Management

9. Interpersonal Behavior Approach

 Focuses on interpersonal behavior, human relations,
leadership, and motivation.
 Based on individual psychology.
Approaches to Management

10. Cooperative Social Systems Approach

 Concerned with both interpersonal and group behavioral
aspects leading to a system of cooperation.
 Expanded concept includes any cooperative group with a
clear purpose.
Approaches to Management

11. McKinsey’s 7-S Framework

 (1) strategy, (2) structure, (3) systems, (4) style, (5) staff,
(6) shared values, and (7) skills.
Approaches to Management

12. Total Quality Management Approach

 Focuses on providing dependable, satisfying products
and services (Deming) or products or services that are fit
for use (Juran), as well as conforming to its quality
requirements (Crosby).
Approaches to Management

13. Management Process or Operational Approach

 Draws together concepts, principles, techniques, and
knowledge from other fields and managerial
approaches.
Approaches to Management

14. Managerial Roles Approach

 Original study consisted of observations of five chief
executives.
 On the basis of this study, ten managerial roles were
identified and grouped into interpersonal, informational,
and decision roles.
The Managerial Roles Approach:

• Managerial Roles
1. Interpersonal Roles – grow directly out of the
authority of a manager’s position and involve
developing and maintaining positive relationships
with significant others.

2. Informational Roles – pertain to receiving and

transmitting information so that manager can serve
as the nerve centers of their organizational units.

3. Decisional Roles – involve making significant decisions

that affect the organization.
10 Specific Managerial Roles

Interpersonal Roles

Role Description

Figurehead Performs symbolic duties of a legal

or social nature.
Leader Builds relationships with
subordinates and communicates
with help and information.
Liaison Maintains networks of contacts
outside work unit who provide help
and information.
10 Specific Managerial Roles

Informational Roles

Role Description

Monitor Seeks internal and external

information about issues that can
affect organization.
Disseminator Transmits information internally
that is obtained form either internal
or external sources.
Spokesperson Transmits information about the
organization to outsiders.
10 Specific Managerial Roles

Decisional Roles

Role Description
Acts as initiator, designer, and encourager of
Entrepreneur change and innovation.
Takes corrective action when organization
Disturbance Handler faces important, unexpected difficulties.
Distributes resources of all types including
Resource Allocator time, funding, equipment, and human
resources.
Represents the organization in major
Negotiator negotiations affecting the manager’s areas
of responsibility.
Management Styles

• Administrators
 Look to company rules and regulations for solving all
problems; live by the book and are usually very good
employees; show total loyalty to the organization and
have probably been with the company for many years.
 Generally respected by their staff, and by peers for their
organizational loyalty and knowledge.
 Usually not very good communicators, using the official
company channels for all communications, which are often
limited to one level upwards and downwards.
 Not good in resolving conflict, looking to company rules
for resolving these in spite of their rather mechanistic
approach.
Management Styles

• Time Servers
 Generally older managers who have lost interest in their
job and environment and are marking time until retirement
or moving to another job; take all necessary action to avoid
stress and maintain a low profile within the company.
 Their low motivation means that they do the minimum
amount of work needed to hold down a job; decisions are
avoided since they could lead to mistakes.
 Have good management experience and if motivated can
become a very valuable asset to the organization; often
consider themselves to be “father or mother figures”.
 They understand people and can build an effective team if
they try; they recognize achievements in others and are
ready to acknowledge them. Personal status is very
important to them.
Management Styles

• Climbers
 These managers are driven by extreme personal ambition
and will sacrifice everything, including self and family, to
get to the top of the corporate ladder.
 They want to achieve and to be seen to have achieved,
especially by those in a superior position; they will pursue
personal advancement by fair means or foul. However,
they become de-motivated if this does not show quick
results and this can eventually lead to stress.
 Self interests come before those of the organization, and
peers will be fought in order to gain an advantage and to
build an empire.
 Status is important but only as a sign of seniority.
Management Styles

• Generals
 Usually a younger person who exhibits lots of energy.
 They like to rule and manipulate power, but is
achievement oriented: power is used to get tasks done;
work extremely hard, driving themselves and those
around them.
 They are sociable and mix well at all levels; they usually
get their way with peers by overwhelming although peers
can resent this if it is done too often.
 Status is important to them but for the luxury associated
with it, not as a symbol of seniority.
 They are strong-willed individuals often with the same
characteristics as a self-made entrepreneurs; they are
optimistic about the future, sometimes wrongly.
Management Styles
• Supporters
 They maintain a balanced view about the world, the organization,
subordinates, and themselves; they are usually experience managers
who are knowledgeable in management techniques and apply them
where they can.
 They work through people in achieving their aims; are good at
delegation and develop their subordinates by giving them
responsibility.
 The people working under them are highly motivated.
 Supporters’ personal technical knowledge is usually lacking, but this is
compensated for by the support they themselves receive from the
specialists within their department.
 They are good facilitators and are very good in managing change;
recognize achievement and reward it.
 They tend to be loners and do not mix well with peers; they often miss
out on information from the grapevine, so that they are not always
well-briefed on organizational matters.
Management Styles

• Nice Guys
 These managers are usually weak-willed and are more
interested in being liked by peers and subordinates, than
in achieving targets.
 They do not criticize their subordinates, even when they
are poor performers and may in fact support too much, so
unconsciously retarding their development.
Management Styles

• Bosses
 Bosses are extremely inflexible and are often mistaken for
strong-minded people; they are only strong talkers and
hide behind abusive language; they try to terrorize
subordinates and peers, creating conflict to emphasize
their own power.
 Managers in the boss category are often brought into a
company to act as “Hatchet Men”.
 In the short-term they can show results, but in long-term
they are very destructive, causing more harm than good.
 They are insecure in themselves and get security by
humiliating others in public.
 They advance by pointing out the mistakes of others, and
not by their own achievements.
Five Filipino Styles of Management

1. Managers by “Kayod”
 “Kayod” is a Filipino term which means “to sweat it out or to give oneself to hard work”.
 This manager is action-hungry, highly dedicated, but his manners are rather formal and
that of an introvert.
 He is a serious worker and will not give in to bribing or any anomalous deals.
2. Managers by “Lusot”
 “Lusot” is another Filipino word which means “capitalizing on a loophole”.
 Thus, this manager will be always on the lookout for loophole of anything and will use
them to avoid too much work, or shortcuts and to do unconventional or even illegal ways
to attain objectives. Generally, an extrovert.
 He deals with people informally.
3. Managers by “Libro”
 “Libro” in English, book.
 This type of manager operates by the dictates of the book.
 What the manuals other formal documents say.
 He is systematic and analytical.
 He usually has adequate formal training in management.
Five Filipino Styles of Management

4. Managers by “Oido”
 This manager leaves his managerial skills by oido or by ear.
 He has a vast field of practical experiences to compensate for his lack of
formal management education.
 He is the opposite of the “Libro” manager.
5. Managers by “Ugnayan”
 He is a hybrid of all type of managers.
 Hence, he is one type of manager now, and different in another time,
depending on the situation.
 He is a gifted reconciler of all philosophers and beliefs held by various types
of managers.
 He integrates various styles of management depending on the need and
conditions of his organization.
 He is participatory and coordinative.