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Questions and Answers

What is the primary focus of job analysis in Human Resource Management?

Determining employee motivation strategies.

Creating performance appraisal reports.

Identifying the abilities and qualifications for a job. (correct)

Managing employee turnover rates.

What does human resource planning aim to achieve within an organization?

To increase employee motivation by setting career goals.

To improve employee performance through training.

To ensure that the right quantity of qualified people are in suitable jobs. (correct)

To evaluate employee performance annually.

Which activity involves selecting the most suitable candidate for a job vacancy?

Job analysis.

Performance appraisal.

Employee selection. (correct)

Employee recruitment.

Why is employee motivation important for organizations?

It leads to higher productivity and lower turnover rates. Signup and view all the answers

What is the main difference between training and development in HRM?

Training focuses on current job responsibilities while development prepares for future roles. Signup and view all the answers

What role does career planning play in HRM?

It identifies employee career goals and future opportunities. Signup and view all the answers

What does the performance appraisal process primarily involve?

Evaluating how well employees perform their jobs. Signup and view all the answers

Which of the following best describes Human Resource Development?

It is a systematic approach to providing necessary skills for current and future job demands. Signup and view all the answers

What is the primary purpose of a reward in Human Resource Management?

To assign value to a job or event Signup and view all the answers

Which of the following best describes the main focus of coaching in Human Resource Management?

Structured learning for explicit professional development Signup and view all the answers

What is the goal of human resource analysis in an organization?

To identify the size, skills, and future needs of employees Signup and view all the answers

How does recognition in Human Resource Management differ from a reward?

Recognition is an expression of feeling towards another person Signup and view all the answers

What is the role of mentoring in the Human Resource Management context?

To support individuals during significant career transitions Signup and view all the answers

What do the internal factors labeled as Weaknesses in a SWOT analysis primarily signify?

Factors that may prevent the exploitation of opportunities Signup and view all the answers

Which of the following factors contributes to the risk of entry by potential competitors according to Porter’s Five Forces Model?

Brand loyalty Signup and view all the answers

In Porter’s Five Forces Model, the bargaining power of buyers is highest under which condition?

Buyers purchase in large quantities. Signup and view all the answers

What defines the intensity of rivalry among established companies in an industry according to Porter’s model?

The industry's competitive structure and demand Signup and view all the answers

Which of the following weakens the position of a product in the market as described in the SWOT analysis?

Poorly managed external threats Signup and view all the answers

According to the Five Forces Model, which of the following indicates high bargaining power of suppliers?

Suppliers offer essential products with few alternatives Signup and view all the answers

What is affected most during the evolution of an industry as it progresses through its life cycle?

Market demand and competition intensity Signup and view all the answers

Which factor is NOT a barrier to entry for potential competitors in an industry?

Rapid innovation cycles Signup and view all the answers

What characterizes the growth stage in the industry life cycle?

Demand takes off and many new customers appear Signup and view all the answers

In which stage does competition begin to significantly drive prices down?

Mature Signup and view all the answers

What is a key factor that contributes to a company's competitive advantage?

Ability to create more value for customers than rivals Signup and view all the answers

During which stage of the industry life cycle is there a high level of rivalry among firms?

Shakeout Signup and view all the answers

Which strategy focuses on reducing cost to create value?

Low Cost Strategy Signup and view all the answers

In the decline stage of the industry life cycle, what typically causes growth to become negative?

Technology substitution and demographic changes Signup and view all the answers

What is primarily reduced due to market saturation in the mature stage?

Rate of growth Signup and view all the answers

Which economic principle is used by companies to increase productivity through larger production volumes?

Economies of Scale Signup and view all the answers

When will interference occur in assembled components?

When the shaft diameter is larger than the bearing diameter. Signup and view all the answers

What is assumed when applying the formulas for nonlinear functions in quality control?

The normal distribution of the quality characteristics. Signup and view all the answers

What does a control chart indicate when a process is operating in statistical control?

Only chance causes of variation exist. Signup and view all the answers

Which of the following is NOT a source of assignable causes in a production process?

Natural variability. Signup and view all the answers

What is the role of a first order Taylor series in quality control for nonlinear functions?

To approximate the behavior of a nonlinear function near the mean values. Signup and view all the answers

What does it mean for a process to be 'out of control'?

There are assignable causes influencing the process. Signup and view all the answers

In terms of statistical independence, what does it imply for quality characteristics?

Characteristics can vary together without influencing each other. Signup and view all the answers

Why are control charts not designed to provide information about process conformity with specification limits?

They are solely intended for assessing stability over time. Signup and view all the answers

What indicates that a process is in control when using control charts?

A point that plots within the control limits Signup and view all the answers

Which component is NOT part of a control chart?

Minimum control limit (MCL) Signup and view all the answers

What is the general distance used for control limits from the center line?

3 Signup and view all the answers

Which type of control chart is used for measuring quality characteristics on a numerical scale?

X control chart Signup and view all the answers

What does it mean if a process is out of control according to control charts?

A point plots outside the control limits Signup and view all the answers

Which chart is specifically used for tracking the number of defects per unit?

u control chart Signup and view all the answers

Control charts help to identify abnormal conditions in a process. How can a process be characterized despite being out of control?

It adheres to specification limits Signup and view all the answers

What is the primary purpose of control charts in quality control?

To identify when a process is out of control Signup and view all the answers

Study Notes

Engineering Management

Engineering Management is concerned with the design, installation, and improvement of integrated systems.
It involves people, material, information, equipment, and energy.
It draws upon specialized knowledge and skills in mathematical, physical, and social sciences.
It applies engineering analysis and design principles to specify, predict, and evaluate results.
Scientific discipline designs, implements, and develops models, processes, and systems.
It considers engineering relationships between management tasks (planning, organizing, leading, controlling) and the human element.
It encompasses various services like production, research, marketing, finance, etc.
Engineering management is the fusion of business and engineering principles.
Specialized knowledge of economics and management helps forecast product utility, advantages, disadvantages, and growth contribution.
This field applies engineering principles to business practice.
It brings together technological problem-solving, organizational, administrative, and planning skills to manage complex enterprises.

Engineering Management Domain

Core areas include mathematics, operations research, statistics, manufacturing systems engineering, accounting, economics, strategy, project management, human resource management, and psychology.

Example areas of engineering management

Product development
Manufacturing
Construction
Design engineering
Industrial engineering
Technology
Production

Successful engineering managers

Require training and experience in business and engineering.
Need to operate effectively and efficiently for improved problem-solving and operational improvement
Need to understand human resource management, finances, industrial psychology, quality control, operations research, and environmental management

Engineering

The profession combining knowledge of mathematics and natural sciences.
Gained through study, experience, and practice.
Applied with judgment to develop ways to utilize materials and natural forces for mankind's benefit.

Management

A set of activities, including planning, decision-making, organizing, leading, and control.
Directed at an organization's resources (human, financial, physical, and informational).
Aiming to achieve the organization's goals efficiently and effectively.

Function of Manager

Planning
Organizing
Directing
Controlling

Planning

Managers must have objectives in mind.
Effective planning involves defining objectives.
Deciding what/when/how/who needs to be done.

Organizing

Gathering and allocating resources.
Coordinating organizational work.
Deliberate structuring regarding authority, communication flow, and task accomplishment.

Directing

Redirecting human behavior toward achieving objectives.
Motivating others to produce.
Influencing subordinates.

Controlling

Keeping things on track.
Steering performance toward desired goals.
Coordinating monitoring and adjusting performance.

Managerial Skills

Top management: Conceptual skills (solving long-term problems and viewing the entire organization as a system).
Middle management: Human relations skills (working effectively with others and ensuring harmony).
Supervisory management: Technical skills (using tools, applying knowledge, and managing processes).

Contrast between American and Japanese organizations

American: Mobile employees, personal decision-making, individual responsibility, rapid advancement, specialization in careers, explicit control mechanisms, focused concern for employees.
Japanese: Lifetime employment, collective decision-making, group responsibility, slow and systematic advancement, general career perspective, implicit control system, holistic concern for employees.

Difference Between Boss & Leader

Boss: Drives employees, depends on authority, inspires fear, blames for breakdowns, uses people, takes credit, commands, says "Go."
Leader: Coaches employees, relies on goodwill, generates enthusiasm, shows how to do things, develops people, gives credit, asks, says "Let's go."

Course Outline

Engineering Management
Marketing & Strategy
Organizational Model & Human Resource
Cost Management & Productivity
Project Management
Quality Control
Operations Research
Supply Chain
Industrial safety

Marketing

Market: A collection of buyers and sellers, interacting to determine product prices.
Buyers: Consumers purchasing goods and companies purchasing labor/inputs.
Sellers: Consumers selling labor, resource owners selling inputs, and firms selling goods.
Arbitrage: Buying a product at a low price and selling it for more in another location.
Product: Anything offered to satisfy a need or want.
Market Price: Transactions are exchanges of goods for a price.
Goods: Physical, tangible entities.

Core Market Concept

Needs, wants, and demands.
Markets
Core Marketing Concepts.
Exchange, transactions, and relationships
Value and satisfaction
Marketing offers: products, services, and experiences

Types of Markets

Perfectly Competitive Markets: Many buyers and sellers, no individual can influence price.
Example: Agricultural markets
Noncompetitive Markets: Individual producers can influence price.
Example: OPEC in the world oil market

The Supply Curve

Shows how much producers are willing to sell at a given price.
This relationship is shown by the equation Qs = Qs(P). Variables include labor, capital, and raw materials.

The Demand Curve

Shows how much consumers are willing to buy at a given price.
The relationship can be shown by the equation QD = QD(P). Variables include income, consumer tastes, price of related goods, substitutes, and complements.

The Market Mechanism

Supply and demand interact to determine market-clearing price.
When not in equilibrium, the market adjusts to eliminate shortages/surpluses and return to equilibrium.
Effective markets must be competitive.

Surplus

Market price is above equilibrium.
There's an excess supply.
Producers lower prices to increase demand.

Shortage

Market price is below equilibrium.
There's a shortage of supply.
Producers raise prices to decrease demand and increase supply.

Consumer Behavior

The explanation of how consumers allocate income to purchase goods/services.

The Consumer Decision Process

Need recognition: The buyer recognizes a problem or need.
Information search: The buyer searches for more information.
Evaluation of alternatives: The buyer evaluates alternative brands.
Purchase decision: The buyer purchases the product.
Post-purchase behavior: The buyer takes further action based on satisfaction/dissatisfaction.
Cognitive Dissonance: Buyer's discomfort after purchase.

Stages in Adoption Process

Awareness: The consumer becomes aware of a new product but lacks information.
Interest: The consumer seeks information about a new product.
Evaluation: The consumer considers whether trying the new product makes sense.
Trail: The consumer tries a new product on a small scale.
Adoption: The consumer decides to use the product regularly.

Individual Differences in Innovativeness

Innovators: Adventurous, try new ideas at risk.
Early Adopters: Guided by respect, community leaders, adopt new ideas early.
Early Majority: Deliberate, rarely leaders, adopt new ideas before the average person.
Late Majority: Sceptical, adopt innovation after most people have tried it.
Laggards: Tradition-bound, suspicious of changes, adopt innovation only when it becomes a tradition.

Difference between Market Segmentation, Targeting, and Positioning

Market Segmentation: Identify bases for segmenting the market.
Market Targeting: Develop measures of segment attractiveness.
Market Positioning: Develop positioning for each target segment.

Market Segmentation

Process of subdividing the total market into groups or segments of people/organizations with similar needs.
Enables planning a marketing mix to satisfy those needs.

Market Segmentation Variables

Geographic (global, national, etc., climate, urban/rural)
Demographic (age, family size, gender, marital status)
Psychographic (attitudes, interests, lifestyles)
Behavioural (usage rates, brand loyalty)
Socioeconomic (income, education, occupation, religion)
Lifestyle, personality

Market Targeting

Organizations target their products among the various segments once markets are segmented.
Marketing plans and schemes assist in targeting.

Market Positioning

Creating and maintaining a product concept in prospective buyers' minds, considering competing products.
A company positions a new product with the characteristics most desired by the target market.

New Product Development Process

New product strategy
Idea generation
Idea screening
Concept development and testing
Business analysis
Test marketing
Marketing strategy
Commercialization

Product Life-Cycle

The progression of a product's sales and profits over its lifetime.
Stages include product development, introduction, growth, maturity, and decline.

Product Life-Cycle (Stages Breakdown)

Introduction: Low sales, high cost per customer, negative profits, innovators as customers, few competitors, create product awareness and trial.
Growth: Rapidly rising sales, average cost per customer, rising profits, early adopters, growing number of competitors, maximize market share.
Maturity: Peak sales, low cost per customer, high profits, middle majority, stable number of competitors, maximize profit while defending market share.
Decline: Declining sales, low cost per customer, declining profits, laggards as customers, declining number of competitors, reduce expenditure and milk the brand.

Strategy

A set of actions managers take to increase company performance relative to industry rivals.
A strategy is implemented to create a competitive advantage over other companies.
A company has a competitive advantage when its profitability exceeds industry averages – this advantage is considered 'sustained' if it persists over time.
Strategy lies in creating tomorrow's competitive advantage faster than competitors can imitate it.

Stakeholders

Individuals or groups with an interest, claim, or stake in the company's performance.
Anyone in an exchange relationship with the company.

Corporate Governance

Mechanisms to monitor managers, ensuring they pursue strategies beneficial to stakeholders.

Internal Stakeholders

Stockholders
Employees
Executives and managers
Board members

External Stakeholders

Customers and suppliers
Creditors
Governments
General public

The Mission Statement

Establishes guiding principles for strategic decision-making, encompassing mission, vision, values, and corporate goals.
A key indicator of how an organization views stakeholder claims.

The Mission

Describes what the company does, potentially being product-oriented or customer-oriented.

The Vision

Outlines what the company aspires to achieve, setting ambitious yet realistically attainable goals that motivate employees.

Major Goals

Precise and measurable future states that a company strives to achieve.
The goals should: be precise and measurable, address important issues, be challenging yet realistic, have a specified time period.

Industry

A group of companies offering products or services that are close substitutes for one another.

SWOT Analysis

Distilling the findings of internal and external audits.
Highlighting strengths, weaknesses, opportunities, and threats facing a company.
Analysis is crucial for identifying strategic actions.

Porter's Five Forces Model

Risk of entry by potential competitors: Height of barriers to entry (economies of scale, brand loyalty, absolute cost advantage, superior production operations, control of particular inputs, access to cheaper funds, customer switching costs, government regulation)
Intensity of rivalry among established companies: Competitive struggles (industry's structure, demand)
Bargaining power of buyers: The ability to drive prices down/quality up (size of buyers, number of suppliers, cost to have many suppliers)
Bargaining power of suppliers: Ability of suppliers to increase industry costs (substitutes, importance of the industry to the supplier)
Threat of substitutes: Other products satisfying similar needs.

Stages in the Industry Life Cycle

Embryonic: Industry development is slow, buyers are unfamiliar with product, and prices are high.
Growth: Demand takes off, many new customers, relatively low competition, entry barriers relatively low.
Shakeout: Growth slows, demand approaches saturation levels, few potential first-time buyers, high rivalry.
Mature: Market is totally saturated, limited replacement demand, growth is low/zero, barriers increase, competition drives down prices.
Decline: Falling demand, excess capacity, growth becomes negative, technology substitution/demographics.

Company Profitability

Amount of value customers place on products/services determines profitability (and competitive advantage).
A company's price is often lower than the customer-perceived value.

Company Profitability (Ways to Improve)

Economies of scale (increase efficiency of production as the number of goods increases).
Spread fixed costs across large product volumes.
Greater specialization of labor.

Value Creation

Two key strategies for creating value:
Low cost: Driving down cost structure
Differentiation: Creating uniqueness.

Building Competitive Advantage

Efficiency, Innovation, Quality, and Customer Responsiveness are the foundational factors.

Efficiency

Outputs per unit of input.
Factors such as employee productivity and capital productivity are crucial.

Innovation

The act of developing new products or processes.
Includes product and process innovation.

Quality

Customers perceive qualities better than competitors' attributes.
Types of quality include excellence and reliability (products consistently perform intended functions).
Designing for quality should include factors like style, aesthetic appeal, features, and level of service.

Customer Responsiveness

Providing superior customer needs identification and fulfillment.
High customer satisfaction leads to differentiation and a stronger competitive advantage.

Strategic Change

Shifting a company from its current state to a desired future ideal in order to improve competitive advantage and profitability.
Key mechanisms include reengineering (focus on processes) and restructuring (simplifying structures and streamlining operations).

The Change Process

Determining the need for change, identifying gaps in performance.
Identifying obstacles to change and managing those obstacles accordingly.
Evaluating change effectively.

Project Management

The art of directing and coordinating resource allocation (human/material) throughout a project to achieve defined objectives (scope, cost, time, quality, and participation satisfaction.)
Planning, monitoring, and control of project people, processes, and events are crucial to its success.
Application of knowledge, skill, tools, and techniques to achieve stakeholder needs.

Project Management (Key Components):

Defining: Initial phase, involves feasibility analysis, establishing project goals, tasks and responsibilities, and assigning a project manager.
Planning: Scheduling tasks, budgeting, identifying and managing resource requirements (personnel, equipment, etc.), potential threats and risks.
Executing: Implementation of plans in action, utilizing most of the resources, and monitoring/managing the project's progress.
Delivering: Closing the project (before its normal end if feasible), releasing resources and staff, and documenting lessons learned.

Precedence Diagramming Method (PDM)

Method for constructing a project schedule network diagram, using boxes (nodes) to represent activities and arrows demonstrating dependencies.
It is also referred to as Activity-on-Node (AON) and the method of choice by most management software packages. Precedence relationships include Finish-to-Start, Finish-to-Finish, Start-to-Start, and Start-to-Finish).

Critical Path Method

Mathematically-based algorithm for scheduling project activities.
Establishing a project model includes identifying tasks, duration of tasks, and dependencies between tasks.
Calculation of the longest path enables determining a project's earliest and latest completion times.

S-Curve Concept

Used for tracking progress and growth during a project lifecycle.
Compares projected man hours/costs against actual numbers/costs in the same timeframe.
Provides a graphical representation of progress, and the baseline data enable detailed comparisons.

Supply Chain Management

All facilities, functions, and activities concerning the flow and transformation of goods/services from raw materials to the end-user.
Includes associated flows of information.
Integrated processes for sourcing, making, and delivering products.

Supply Chain Management (Keys to Effectiveness):

Managing information flow through the chain.
Responding to uncertainties in demand without creating costly excess inventory.
Creating effective supply chain inventory control systems.
Building information communication and trust among related entities.

Inventory Control

Inventory management is used to balance product availability and inventory costs.
It is crucial when supply/demand is variable and unpredictable.
Systems include continuous/fixed-order-quantity methods and periodic/fixed-time-period methods.
Types of inventory: raw materials, purchased parts/supplies, work-in-process (WIP) products, items in transport, tools/equipment.
Costs related to inventory include carrying costs (storage, handling, etc.), ordering costs, and shortage costs (lost sales from insufficient stock).
The ABC classification system groups items by sales volume (high volume are 'A', medium volume ‘B’, and low volume ‘C’ to effectively manage inventory).

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