Introduction to Engineering Management

Introduction to Engineering Management

• Engineering Management is the combination of technical expertise with organizational and coordination skills.
• Engineering managers are uniquely qualified to manage technical functions or broader functions in high-technology enterprises.
• The five elements of the management process are planning, organizing, coordinating, motivating and controlling.

Decision Making

• Decision making is choosing a course of action from multiple alternatives.
• The heart of all management functions revolves around decision making.
• Decision making is a continuous process influencing organizational activities.
• Decisions are made to address problems or capitalize on opportunities.

Types of Decisions

• Programmed Decisions are routine and repetitive.
• Nonprogrammed Decisions are unique and nonrecurring.

Decision Making Process

• The rational decision-making process involves diagnosing the problem, analyzing the environment, articulating the problem or opportunity, developing viable alternatives, evaluating alternatives, making a decision, developing an implementation plan, and monitoring the implementation.

Characteristics of Successful Engineer Managers

• Managerial ability is the capacity to achieve organizational objectives efficiently and effectively.
• Effectiveness measures the extent to which objectives are achieved and problems are solved.
• Efficiency measures the relative resources used to achieve effectiveness.
• Motivation to Manage is a psychological trait measured by John B. Miner's psychometric instrument.

Planning

• Planning is the process of setting objectives and determining how to achieve them.
• Planning provides a framework for action and helps allocate resources effectively.
• The planning process includes setting goals, identifying strategies and tactics, determining resource needs, setting standards, and developing functional area plans.
• Strategic Planning focuses on long-term goals and involves analyzing the environment, setting objectives, and formulating strategies.
• Operational Planning aims to solve problems effectively and includes identifying opportunities to achieve goals, specifying resource requirements, setting standards, and developing functional area plans.

Importance of Planning

• Planning is essential for achieving organizational objectives.
• Planning provides a framework for action and helps to prevent waste and reduce uncertainty.
• Planning ensures that all organizational activities are coordinated and focused on achieving common goals.

Planning

• Planning outlines the future of the organization, serving as a blueprint for achieving desired outcomes.
• Strategic Planning sets the long-term direction while Operational Planning focuses on day-to-day tasks.
• Intermediate Planning bridges the gap between strategic and operational, involving contributions from sub-units.
• Short-Range Plans cover periods less than a year, often used by first-line supervisors, while Long-Range Plans extend beyond a year and are primarily handled by higher management.
• Standing Plans are recurring plans for repetitive situations, like policies, procedures, and rules.
• Single-Use Plans address unique scenarios, such as budgets, programs, and projects.
• Forecasting helps anticipate potential obstacles and opportunities and involves Mechanical Projection (future based on past), Analytical Projection (statistical extrapolations), adjustments, ensuring understanding, and acceptance.
• Common Planning Barriers include managerial inability, flawed process, lack of commitment, inadequate information, prioritizing short-term goals, over-reliance on the planning department, and focusing solely on controllable variables.

Organizing

• Organizing establishes the framework for efficient and effective collaboration within an organization.
• It involves defining verifiable objectives, clearly defining major duties and activities, and establishing areas of discretion and authority.
• Sole Proprietorship is a single owner with full control.
• Partnership involves two or more individuals with fewer legal restrictions.
• Corporations are legal entities owned by shareholders with limited liability.
• Limited Liability Company (LLC) offers limited liability and management flexibility with pass-through taxation.
• Cooperatives are owned by customers or users with earnings distributed proportionally.
• Hierarchical Organization has a clear chain of command where everyone reports to a single superior.
• Departmentation structures an organization by grouping people based on function, product, geography, or a mix.
• Span of Control refers to the number of subordinates a manager oversees.
• Narrow Span of Control is expensive, with multiple management levels potentially slowing down decision-making.
• Wide Span of Control can overload managers and limit subordinate access to guidance.
• Organizational Structures include Functional (grouping by common tasks, centralized decision-making), Product or Market (based on specific products or customers, allowing for flexibility and responsiveness), and Matrix (employees report to both a functional and project manager, fostering adaptability and skill development).
• Workplace Cultures vary, with Person Culture valuing individuals, Market Culture focusing on results, Adaptive Culture prioritizing change, Adhocracy Culture encouraging innovation, Power Culture centralized under a leader, Role Culture structured with defined jobs, Hierarchy Culture emphasizing efficiency, Clan Culture fostering a family-like environment, and Task Culture forming teams for problem-solving.
• Line Functions execute the core objectives of the organization, while Staff Functions provide support services or advice.
• Authority types include Line Authority (direct control over subordinates), Staff Authority (advisory role), Functional Authority (specialist oversight regardless of location).
• Personnel Staff provide services to a specific manager, while Specialized Staff do so for the whole organization.
• Committees are formal groups formed for specific goals, including Ad Hoc for temporary purposes and Standing for ongoing issues.

Staffing

• Staffing is the process of finding, evaluating, and developing personnel to fill organizational roles.
• Human Resource Planning involves forecasting future personnel needs, analyzing current workforce, and developing employment and training programs.
• Recruitment involves attracting potential candidates, using internal sources like promotions and succession planning, and external sources such as advertising, recruitment agencies, referrals, and direct recruitment.
• Selection involves choosing the most suitable candidates through application review, interviews, reference checks, tests, and a final decision.
• Introduction and Orientation helps newcomers understand the organization's goals, values, and expectations.
• Performance Appraisal evaluates an employee's performance through various methods: ranking, rating scales, essays, management by objectives, assessment centers, checklists, work standards, grading, and 360-degree appraisals.
• Employee Performance Decisions involve monetary rewards, promotion, transfer, demotion, and separation.
• Employee Separation can be voluntary (retirement, resignation, transfer by request), involuntary (termination, suspension, retrenchment, layoff, transfer).

Communicating

• Communication involves sharing information through verbal, written, and nonverbal means.
• Effective communication within any organization is vital for collaboration, task execution, managing relationships, and implementing change.
• The Communication Process involves developing an idea, encoding it, transmitting it, receiving it, decoding it, accepting it, using it, and providing feedback.
• Communication Skills include setting clear goals, preparing agendas, and using proper closing techniques.
• Listening Skills involve observing non-verbal cues, following the speaker's train of thought, avoiding personal opinions and using minimal encouragers.
• Barriers to Communication can be personal (like emotions and values), physical (noise, distractions), or semantic (misunderstandings due to differing interpretations of symbols).
• To Overcome Barriers to Communication, use feedback, repeat messages, utilize multiple channels, and employ simplified language.
• Communication Types include verbal, written, and nonverbal.
• Management Information System (MIS) provides information on internal operations and external intelligence for decision-making, assisting in both routine (scheduling, inventory) and strategic (non-programmed) decisions.