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ES 27

ENGINEERING MANAGEMENT
PPT SLIDES FOR MODULE 1:
INTRODUCTION TO MANAGEMENT
Developed by:

RENAN S. MAGLASANG, MBA
Faculty
Department of Industrial Engineering
University of San Carlos

Rev 00/June 2013
Sources:
Jones G. R. and J.M. George. Contemporary Management, 6
th
Edition, McGraw Hill/Irwin, 2008
Bartol, K. M. and D.C. Martin, Management. McGraw-Hill Companies, Inc. 1998
WHICH WORD IS
LESS LIKELY A
BUSINESS WORD?
Conditioning Activity
PROFIT
INVESTMENT
SYNTAX
MARKET
ASSETS

INTERESTS
LIABILITIES
PERMUTATION
LOANS
INCOME

DEPRECIATION
CAPITAL
PAYBACK PERIOD
DEMAND
ASYMPTOTES

CARTESIAN
EFFECTIVENESS
LABOR
PRODUCTION
PRICE

SUPPLY
STOCKOUTS
INVENTORY
DNA
BUFFER

MACHINERIES
EARNINGS
PNEUMATICS
BALANCE SHEET
MANAGERS

EXPENSES
CAPACITANCE
COST
CUSTOMERS
LOSS

COMPANY
ORGANIZATIONS
SHAREHOLDER
PHYLUM
BOTTOMLINE

STANDARDS
MARKET
NET PROFIT
RISK
SALES

INVENTORY
MATERIAL
PRODUCT
TRUSSES
INCOME

Electrical and Electronics Engineer

Application Programmer
Avionics Engineer
Control Systems Engineer
Instrumentation and Control Engineer
Roadway Lighting Design Engineer
Television Systems Engineer

DESIGN, PLAN, RESEARCH, EVALUATE , AND
TEST
ENGINEERING CAREER
Computer Engineer

Computer Engineer
Hardware Development Engineer
Hardware Engineer
Network Test Engineer
Wireless Communications Network Engineer

DESIGN, PLAN, RESEARCH, DEVELOP AND
VERIFY
ENGINEERING CAREER
Civil Engineer

Bridge Engineer Sanitation Engineer
Civil Engineer Municipal Engineer
Construction Engineer Traffic Engineer
Environmental Engineer Structural Engineer
Highway Engineer Transportation Engineer


PLAN, RESEARCH, EVALUATE , AND MANAGE

ENGINEERING CAREER
You feel like people aren't
getting anything done, even
though you employ lots of
people, all of whom are smarter
than you and just as hard
working.
A MANAGEMENT PROBLEM
Employees burn out after
months. Team members work
increasingly less on average as
they spend more time at the
company.
A MANAGEMENT PROBLEM
Product A inventory are piling
in the stockroom for weeks while
demand for product B remain
unsatisfied for a week now.
A MANAGEMENT PROBLEM
The companys balance sheet has
been indicating so much cash on
hand for two years in a row
amounting to more than 2
million when all they need for
next years operation is 60% of it.
A MANAGEMENT PROBLEM
MANAGEMENT
An art
A science, too.

is the process of achieving
organizational goals
efficiently and effectively by
-engaging in management functions
-exercising management skills
-and playing management roles
MANAGEMENT
is a specialized form of management
aimed at applying engineering
principles to business practice.

ENGINEERING MANAGEMENT
Engineering professionals joining
manufacturing companies sometimes
become engineering managers by default
after a period of time.

They are required to learn how to manage
once they are on the job, though this is
usually an ineffective way to develop
managerial abilities.

ENGINEERING MANAGERS
THE EVOLUTION OF MANAGEMENT THEORIES
CONTINUOUS QUEST FOR EFFICIENCY
ARE YOU EFFICIENT OR EFFECTIVE?
SCIENTIFIC MANAGEMENT
INCREASING EFFICIENCY BY STUDYING PERSON-TASK MIX
Frederick Taylor believed
that the way to create the
most efficient division of
labour could best be
determined by means of
scientific management
techniques, rather than
intuitive or informal rule-
of-thumb knowledge.
Adam Smith concluded
that increasing the level of
job specialization
increases efficiency and
leads to higher
organizational
performance
Two prominent followers of
Taylor were Frank Gilbreth
(18681924) and Lillian
Gilbreth (18781972), who
refined Taylors analysis of
work movements and made
many contributions to time-
and-motion study.
Time and Motion Study.
The Gilbreths often filmed a
worker performing a particular
task and then separated the
task actions, frame by frame,
into their component
movements. Their goal was to
maximize the efficiency with
which each individual task
was performed so that gains
across tasks would add up to
enormous savings of time and
effort.
Henry Fords talented
team of production
managers pioneered the
development of the
moving conveyor belt
Fordism. When a conveyor
belt controls the pace of
work (instead of workers
setting their own pace),
workers can be pushed to
perform at higher levels
ADMINISTRATIVE MANAGEMENT
INCREASING EFFICIENCY BY STUDYING STRUCTURE OF ORGANIZATION
BEHAVIORAL MANAGEMENT
INCREASING EFFICIENCY BY STUDYING HOW MANAGERS
SHOULD BEHAVE AND TREAT EMPLOYEES
Mary Parker Follet on

Empowerment and
Self-managed teams
Mary Parker Follett proposed
that, Authority should go with
knowledge ... whether it is up
the line or down. In other
words, if workers have the
relevant knowledge, then
workers, rather than
managers, should be in control
of the work process itself, and
managers should behave as
coaches and facilitatorsnot as
monitors and supervisors.
MANAGEMENT SCIENCE
A CONTEMPORARY EXTENSION OF SCIENTIFIC MANAGEMENT
ORGANIZATIONAL ENVIRONMENT THEORY
-set of forces and conditions
that operate beyond an
organizations boundaries but
affect a managers ability to
acquire and utilize resources


ORGANIZATIONAL ENVIRONMENT THEORY
ORGANIZATIONAL ENVIRONMENT THEORY
claims that there is no best way to organize a
corporation, to lead a company, or to make decisions
because the optimal organization, leadership or
decision making style depends upon various internal
and external constraints.
LIMITATION OF THE EARLY PRACTICES
presumed that managers are
overseeing manual labor tasks
dehumanize workers
mainly on remuneration issues
heavily oriented toward efficiency at
the expense of attention to the
manager-as-leader



CONTEMPORARY PRINCIPLES
OF MANAGEMENT
Social Networking
Learning Organizations
Virtual Organizations
WHAT ARE THE BASIC MANAGEMENT FUNCTIONS?
Study Question:
The
P-O-L-C
FRAMEWORK
WHAT IS PLANNING AS A MANAGEMENT FUNCTION?
is a primary
function on
which all
others
depend
Study Question:
is the process of setting goals and
deciding how to best accomplish
them
goals
desired outcomes
plan
a statement of action steps
to be taken to accomplish
the objectives
HOW DO MANAGERS PLAN?
Study Question:
Who are we?
-Core Values /Ethics
-Principles
-Beliefs
Why are we here?
What do we want to contribute?
How can we change our
communicty/industry/world
What do we want to accomplish?
When do we want to accomplish it?
How do we get there?
Projects
Short-term goals
Staffing
operations management

HOW DO MANAGERS PLAN?
Study Question:
STRATEGIC PLANNING FLOWCHART
Sun impress Ltd is a
new company created in
October 2009 for the
purpose of helping to
reduce carbon emissions
by identifying best
practice and facilitating
knowledge transfer,
specifically in the
building and real estate
sectors.
EXAMPLES
PLANNING IN SERVICE BUSINESS
PLANNING IN MANUFACTURING BUSINESS
EXAMPLES
PLANNING IN
WAREHOUSING
AND
DISTRIBUTION
BUSINESS
EXAMPLES
PLANNING IN ICT BUSINESS
EXAMPLES
WHAT IS THE ROLE OF MISSION AND VISION IN PLANNING?
Vision:
A picture of the "preferred
future;" a statement that
describes how the future
will look if the
organization achieves its
ultimate aims.
Mission:
A statement of the
overall purpose of an
organization. It describes
what you do, for whom
you do it and the benefit
WHY WE
EXIST
WHAT WE
WANT TO BE


Nourishing and Nurturing
Families World Wide
By 2020, San Miguel Purefoods
Company, Inc. will be a P520
billion company with an income of
P42 billion
We will delight our Customers with products and
services of uncompromising quality, great taste and
value, and are easily within their reach.

We will create value and provide fair returns on our
Shareholders investments.

We will work hand-in-hand with our Suppliers and
other Business Partners, helping them grow with us
and assuring them of reasonable returns.

We will develop and motivate our Employees to
become best-in-class through cognitive and affective
programs, competitive compensation and benefits,
and diverse career growth opportunities.

We will help improve the quality of life in
Communities where we operate.

Collectively, we will give and do what is right and
become proponents of good stewardship.
Study Question:
WHAT IS ORGANIZING AS A MANAGEMENT FUNCTION?
The process of
arranging people
and other resources
to work together to
accomplish a goal.
the organizational
structure and design
is the heart of this function

Study Question:
O
R
G
A
N
I
Z
I
N
G


O
R
G
A
N
I
Z
I
N
G

ORGANIZATIONAL STRUCTURE
It is the formal framework in which
the organization defines how tasks
are divided, resources are deployed,
and departments
are coordinated.
A process of developing or
changing an organization's
structure.
ORGANIZATIONAL DESIGN
HOW ARE ORGANIZATIONS ORGANIZED?
Study Question:

O
R
G
A
N
I
Z
I
N
G

6 KEY ELEMENTS OF
ORGANIZATIONAL DESIGN
Work
specialization
Departmentalization
Chain of
Command
Span of
Control
Centralization and
Decentralization Formalization

O
R
G
A
N
I
Z
I
N
G

RELATIONSHIP TO
LEADING FUNCTION

O
R
G
A
N
I
Z
I
N
G

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?
Study Question:
FUNCTIONAL STRUCTURE
ADVANTAGES:
Economies of scale.
Task assignments
consistent with expertise
and training.
High-quality technical
problem solving
In-depth training and skill
development.
Clear career paths within
functions.

O
R
G
A
N
I
Z
I
N
G

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?
Study Question:
DISADVANTAGES:
Difficulties in pinpointing
responsibilities.
Functional chimneys
problem.
Sense of cooperation and
common purpose break
down.
Narrow view of
performance objectives.
Excessive upward referral of
decisions.
FUNCTIONAL STRUCTURE

O
R
G
A
N
I
Z
I
N
G

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?
Study Question:
DIVISIONAL
STRUCTURE
ADVANTAGES:

More flexibility in
responding to
environmental changes.
Improved coordination.
Clear points of
responsibility.
Expertise focused on
specific customers,
products, and regions.
Greater ease in
restructuring.

O
R
G
A
N
I
Z
I
N
G

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?
Study Question:
DISADVANTAGES:

Duplication of
resources and efforts
across divisions.
Competition and poor
coordination across
divisions.
Emphasis on divisional
goals at expense of
organizational goals.
DIVISIONAL
STRUCTURE

O
R
G
A
N
I
Z
I
N
G

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?
Study Question:
MATRIX STRUCTURE
ADVANTAGES:

Better cooperation across
functions.
Improved decision making.
Increased flexibility in
restructuring.
Better customer service.
Better performance
accountability.
Improved strategic
management.

O
R
G
A
N
I
Z
I
N
G

WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?
Study Question:
MATRIX STRUCTURE
DISADVANTAGES:

Two-boss system is
susceptible to power
struggles.
Two-boss system can create
task confusion and conflict
in work priorities.
Team meetings are time
consuming.
Team may develop
groupitis.
Increased costs due to
adding team leers to
structure.

O
R
G
A
N
I
Z
I
N
G

WHAT ARE THE NEW DEVELOPMENTS IN ORGANIZATION STRUCTURE?
Study Question:
Horizontal structures:
Focus the organization around processes, not functions.
Put people in charge of core processes.
Decrease hierarchy and increase the use of teams.
Empower people to make decisions critical to
performance.
Utilize information technology.
Emphasize multi-skilling and multiple competencies.
Teach people how to work in partnership with others.
Build a culture of openness, collaboration, and
performance commitment.

O
R
G
A
N
I
Z
I
N
G

WHAT ARE THE NEW DEVELOPMENTS IN ORGANIZATION STRUCTURE?
Study Question:
Team structures
Extensively use permanent and temporary
teams to solve problems, complete special
projects, and accomplish day-to-day tasks.
Often use cross-functional teams.
LEADING
is influencing and motivating people to
work effectively and willingly towards
company goals.
guiding, inspiring, overseeing, and
instructing
Gates passion and empowerment
Kelleher leadership is the job of
every employee

High EQ are: Self-awareness; self-
regulation; motivation; empathy; and social
skills
THE HERSEY-
BLANCHARD
SITUATIONAL
LEADERSHIP
The theory states
that instead of using
just one style,
successful leaders
should change their
leadership styles
based on the
maturity of the
people they're
leading and the
details of the task.
CONTROLLING
Controlling is a process of checking actual
performance against the standards or plans.

Control activities and techniques
Authorization
Review and approval
Verification
Reconciliation
Physical security of assets
Performance planning and evaluation
Quality management

Without controlling functions,
planning is useless.
ORGANIZATIONAL
HIERARCHY
AND
MANAGEMENT
FUNCTIONS
RELATIVE AMOUNT OF TIME THAT MANAGERS
SPENT ON FOUR MANAGEMENT FUNCTIONS
MANAGEMENT SKILLS
Technical
Human
Conceptual
Are you proficient in your own field?
Can you get things done through others?
Can you visualize the organization as a
whole and its interrelationships among
parts?
Decision
Making
Can you analyze information and reach
good decisions?
Relative Importance of types of skills
to levels of management
Managerial Roles
by Henry Mintzberg
A role is an
organized set of
behaviors
associated with a
particular office
or position
Positions usually
entail multiple
roles.
Henry Mintzbergs
10 Managerial Roles
STUDENT ANSWERS OF
SOME ESSAY QESTIONS
FROM PREVIOUS EXAMS
A:
PRODUCT INNOVATION- STRATEGIC (5 POINTS)
This is a strategic plan since it may require a
couple of years from conceptualization up to
introduction of the improved product to the desired
market. This project would require extensive top
level participation in planning the major tasks to
be allocated to the middle management and then
distribute sub-tasks to the lower level
management in the fulfillment of the plan.
Q:
CHOOSE ONE PLAN FROM THE LIST. CLASSIFY AND
EXPLAIN IT AS STRATEGIC, TACTICAL, OR OPERATIONAL .
A:
KNOWING THE TARGET OUTPUT OF THE
WEEK. OPERATIONAL (5 POINTS)
This is an operational plan because it can be
achieved on a short period of time and this plan
could achieve more bigger plans if done a lot of
times with short time intervals.
Q:
CHOOSE ONE PLAN FROM THE LIST. CLASSIFY AND
EXPLAIN IT AS STRATEGIC, TACTICAL, OR OPERATIONAL .
Q:
HOW DOES BUREAUCRATIC/ADMINISTRATIVE MANAGEMENT
HELPED COMPANIES NOWADAYS? (5 POINTS)
A:
Bureaucratic/administrative management helped
companies nowadays because in this type of
management authority is key. Authority enables the
managers to give orders to their subordinates in
order for them to do their job efficiently and
effectively in order to achieve the organizational
goals. When authority is present within the company
in the context where they are specified, they are
hierarchical in form, the company works well
together with no confusion, order is attained, rules
and SOPs are established and goals are achieved in
the long run.
Q:
HOW DOES BUREAUCRATIC/ADMINISTRATIVE MANAGEMENT
HELPED COMPANIES NOWADAYS? (5 POINTS)
A:
Bureaucratic management has simplified the
landscape of company management. In a very
large company where roles and functions are not
well-defined, anarchy would occur. Not to mention,
there would be no person accountable if that
happens. Bureaucratic management makes
running an organization easier.

Q:
WHAT ARE STRATEGIC PLANS? (10 POINTS)
A:
Strategic plans is on top of the planning pyramid.
This plan usually lasts greater than a year.
Examples of these are expanding market or
customers and product innovation. Usually it takes
conceptual skills of the CEO or the top level
managers to oversee where the company will be
going.
Q:
WHAT ARE STRATEGIC PLANS? (10 POINTS)
Q:
Strategic plans are those plans that are long term
goal and could cover from 1-5 years or more for it
to realize. These plans are considered visions of
the company that was formulated by the top level
individuals mostly. These are plans that most
companies are trying to realize as years go by. Like
the Microsoft, their vision is to put every home a
windows to use. Its like every house uses the
windows their tool or OS in the PC.
Q:
WHEN AND HOW DO MANAGERS BECOME
EFFECTIVE. (10 POINTS)
A:
Managers become effective by exercising the
management skills in the scope of his/her position.
By not being content of what he/she can only do
but by practicing and developing weaker skills for
improvement. A manager is effective if his subjects
are on the same page with him and unity is
present for a better team the delievers the desired
output. He has the capability to lead the workers
and behaves like a leader. Roles is being played
and carried out depending on what is needed in his
particular position.
Q:
EXPLAIN THE RELATIONSHIP OF MANAGEMENT
SKILLS TO THE LEVELS OF MANAGEMENT. (5 POINTS)
A:
All levels of the management hierarchy must
possess all management skills to become effective
managers. Each level, however has a greater for
one of these skills. Top level managers require
great conceptual skills because they are the ones
who see the organization in a bigger picture. First-
line level managers require great technical skills
because they are at the frontlines of the technical
employees who need their communication,
monitoring, and consultation. All levels require
human skills because all managers fulfill
interpersonal relations.
Q:
WHEN AND HOW DO MANAGERS BECOME
EFFECTIVE. (10 POINTS)
A:
Managers become effective by exercising the
management skills in the scope of his/her position.
By not being content of what he/she can only do
but by practicing and developing weaker skills for
improvement. A manager is effective if his subjects
are on the same page with him and unity is
present for a better team the delievers the desired
output. He has the capability to lead the workers
and behaves like a leader. Roles is being played
and carried out depending on what is needed in his
particular position.

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