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Lesson 1 ► Consulting Introduction to Engineering Management ▪ Where the engineer works as consultant of any individual or organization requiring his services. “Engineers are often fa...

Lesson 1 ► Consulting Introduction to Engineering Management ▪ Where the engineer works as consultant of any individual or organization requiring his services. “Engineers are often faced with responsibilities ► Government requiring outputs that will depend on the individual ▪ Where the engineer may find employment in the accomplishments of subordinates. government performing any of the various tasks in regulating, monitoring, and controlling the activities Managing people, however, is one area where the of various institutions, public or private. engineer is expected to be least prepared. ► Teaching ▪ Where the engineer gets employment in a school Yet, many are hoping that organizations will and is assigned as a teacher of engineering continuously turn out useful and innovative courses. Some of them later become deans, vice products and services, unaware that many of these presidents, and presidents. organizations are under the direction of ► Management professional engineers.” – Roberto G. Medina ▪ Where the engineer is assigned to manage groups of people performing specific tasks. Functions of Engineers in Different Areas ►Production of more food for fast growing world population Lesson 2 ► Elimination of air and water pollution The Engineer in Various & Types of ► Solid waste disposal and materials recycling Organization ► Reduction of noise in various forms ► Supplying the increasing demand for energy The Engineer in Various Types of Organization ► Supplying the increasing demand for mobility ► Level One ► Preventing and solving crimes ▪ Those with minimal engineering jobs like retailing ► Meeting the increasing demand for firms. communication facilities ► Level Two ▪ Those with moderate degree of engineering jobs Areas of Specialization like transportation companies ► Research ► Level Three ▪ Where the engineer is engaged in the process of ▪ Those with high degree of engineering jobs like learning about nature and codifying this knowledge construction firms into usable theories. Design and Development Types of Organization and Management Skills – Where the engineer undertakes the activity of Required of Engineers turning a product concept to a finished physical item. Design for manufacturability and value engineering teams are charged with improvement of designs and specifications at the research, development, design, and production stages of product development. ► Testing ▪ Where the engineer works in a unit where new products or parts are tested for workability. ► Manufacturing ▪ Where the engineer is directly in charge of production personnel or assumes responsibility for the product. ► Construction ▪ This is where the construction engineer is either directly in charge of the construction personnel or may have responsibility for the quality of the construction process. ► Sales ▪ Where the engineer assists the company’s customers to meet their needs, especially those that require technical expertise. Types of Managers even has a "school of figure management. ► Mcfarland traces the meaning of the words "manage" and "management" as follows: ▪ The word manage seems to have come into English usage directly from the ltalian maneggiare, meaning "to handle," especially to handle or train horses. ▪ It traces back to the Latin word manus, "hand." ▪ In the early sixteenth century manage was gradually extended to the operations of war and used in the general sense of taking control, taking charge, or directing.... ▪ Management was originally a noun used to indicate the process for managing, training, or directing. Lesson 3 ▪ It was first applied to sports, then to What Is Engineering Management housekeeping, and only later to government and businesses. ► Engineering management refers to the activity ► McFarland continues by identifying "four combining "technical knowledge with the ability to important uses of the word management,: organize and coordinate worker power, materials, ▪ (1)an organizational or administrative process; machinery, and money. ▪ (2) a science, discipline, or art; ► When the engineer is assigned to supervise the ▪ (3) the group of people running an organization; work of even a few people, he is already engaged and in the first phase of engineering management. ▪ (4) an occupational career ► His main responsibility is to lead his group into producing a certain output consistent with the ▪ Sentences illustrating each of these in turn might required specifications. be: ► The top position an engineer manager may hope (1) "He practices good management"; to occupy is the general managership or presidency (2) "She is a management student"; of any firm, large or small. (3) "Management doesn't really believe in quality"; ► As he scales the management ladder, he finds (4) heard from innumerable college freshmen) “I that the higher he goes up, the less technical wanna get inta management.“ activities he performs, and the more management ► Of these four, most authors of management tasks he accepts. textbooks are referring to the first meaning (the ► In this case, it is proper that the management process) when they define "management." functions taught in pure management courses be ► According to some of these authors, well understood by the engineer manager. management is: ▪ The work of creating and maintaining What is MANAGEMENT? environments in which people can accomplish ► Since the engineer manager is presumed to be goals efficiently and effectively (Albanese) technically competent in his specialization, one may ▪ The process of achieving desired results through now proceed to describe more thoroughly the efficient utilization of human and material resources remaining portion of his job, which is management. (Bedeian) ► Management may be defined as the "creative ► The process of reaching organizational goals by problem solving-process of planning, organizing, working with and through people and other leading, and controlling: an organization's organizational resources (Certo) resources to achieve its mission and objectives. ► A set of activities (including planning and ► The Australian Edmund Young, in decision making, organizing, leading, and supplementary notes used in teaching, wrote that controlling) directed at an organization’s resources ▪ "Management" has been one of the most (human, financial, physical, and information) with abundant and misused words in the 20th century the aim of achieving organizational goals in an English language. efficient and effective manner (Griffin) ▪ It has been a "fad" word as well. ► The process by which managers create, direct, ▪ Civil engineers discuss river basin management maintain, and operate purposive organizations and costal management, doctors discuss disease through coordinated, cooperative human effort management and AIDS management, garbage (McFarland) collectors are now "waste management experts," ► The process of acquiring and combining human, and the glamorous Hollywood actress June Fonda financial, informational, and physical resources to attain the organization's primary goal of ► They are as follows: producing a product or service desired by some ► 1. ability segment of society (Pringle, Jennings and ► 2. motivation to change, and Longnecker) ► 3. opportunity. ► Albanese provides a set of definitions of the word "management" suggested by a sample of ► ABILITY business executives: ► Managerial ability refers to the capacity of an ▪ Being a respected and responsible representative engineer manager to achieve organizational of the company to your subordinates objectives effectively and efficiently, ▪ The ability to achieve willing and effective ► Effectiveness, according to Higgins, refers to a accomplishments from others toward a common description of "whether objectives are business objective accomplished", while efficiency is a description of ▪ Organizing and coordinating a profitable effort the relative amount of resources used in obtaining through good decision making and people effectiveness." motivation ▪ Getting things done through people ► MOTIVATION TO CHANGE ▪ The means by which an organization grows or ► Many people have the desire to work and finish dies specific tasks assigned by superiors, but not many ▪ The overall planning, evaluating, and enforcement are motivated to manage other people so that they that goes into bringing about "the name of the may contribute to the realization of the game"-profit organization's objectives. ▪ Keeping your customers happy by delivering a ► A management researcher, John B. Miner, quality product at a reasonable cost developed a psychometric instrument to measure ▪ Directing the actions of a group to accomplish objectively an individual's motivation to manage. a desired goal or objective in the most efficient manner ► The test is anchored to the following dimensions: ► 1. Favorable attitude toward those in positions of The Process of Management authority, such as superiors. ► Management is a process consisting of ► 2. Desire to engage in games or sports planning, organizing, directing (or leading), and competition with peers. controlling. ► 3. Desire to engage in occupational or work-related competition with peers. Requirements for the Engineer Manager’s Job ► 4. Desire to assert oneself and take charge. ► Depending on the type of products or services a ► 5. Desire to exercise power and authority over firm produces, the engineer manager must have others. the following qualifications: ► 6. Desire to behave in a distinctive way, which ▪ 1. a bachelor's degree in engineering from a includes standing out from the crowd. reputable school; In some cases, a master's degree ► 7. Sense of responsibility in carrying out the in engineering or business management is routine duties associated with managerial work. required; ▪ 2. a few years experience in a pure engineering ► High scores in the foregoing dimensions are job; associated with high motivation to manage. ▪ 3. training in supervision; ▪ 4. special training in engineering management. ► OPPORTUNITY ► These qualifications will be of great help to the ► Successful managers become possible only if engineer manager in the performance of the those having the ability and motivation are given various management functions. the opportunity to manage. ► The opportunity for successful management has How May One Become a Successful Engineer two requirements: Manager ▪ 1. Obtaining a suitable managerial job, and ; ► Successful engineer managers do not happen ▪ 2. Finding a supportive climate once on the job. as a matter of chance, although luck is a contributory factor. ► Newspaper advertisements abound with needs ► It is very important for the engineer manager to for engineer managers. know the various factors leading to successful management. ► It is a little difficult to determine if the firms ► Kreitner indicates at least three general requiring their services provide a supportive climate preconditions for achieving lasting success as a for effective and efficient management. manager. ► A supportive climate is characterized by the for their subordinates to get the resources they recognition of managerial talent through financial need or the rewards they have earned. and nonfinancial rewards. ► C. Decisional roles are of four kinds in this Managerial Roles-What Managers Do typology: ► Henry Mintzberg gives us another way to view ▪ 1. The entrepreneurial role of initiating change, the manager's job by examining the varied roles a assuming risk, and transforming ideas into useful manager plays in the enterprise. He divides them products. into three types: ▪ 2. The disturbance handler role of dealing with A. Interpersonal unforeseen problems or crises and resolving them. B. Informational The use of penalties is only one-and often the least C. Decisional roles. effective mechanism for handling disturbances. ▪ 3. The resource allocator role of distributing the ► A. Interpersonal roles are further divided into (normally scarce) resources of money, labor, three types, depending on the direction of the materials. and equipment where they will provide relationship: greatest benefit to the organization. 1. The figurehead role ▪ 4. The negotiator role of bargaining with It involves the ceremonial or legal actions of the suppliers or customers, or subordinates, peers, or symbolic head of an organization in welcoming superiors, to obtain agreements favorable to the dignitaries and signing official documents, largely enterprise (or at least the portion of it for which the outward relationships. Many such events lose manager is significance if they are delegated. responsible). 2. The leader role It is the widely recognized downward relationship Functions of Managers of selecting, guiding, and motivating subordinates. ► Henri Fayol, the famous French mining 3. The liaison role engineer and executive, divided managerial It consists primarily of the horizontal relationships activities into five "elements": with peers and people in other organizations that ▪ Planning are built and nurtured for mutual assistance. The ▪ Organizing modern term networking is much the same. ▪ Command ▪ Coordination ► B. Informational roles are also of three types, ▪ Control." depending on the direction of information now: 1. The monitor role Henri Fayol’s Management Principles It involves collecting information about both ► These elements, now called "functions of internal operations and external events. This is managers," have proven remarkably useful and done by reviewing activities and reading reports durable over the decades. internally, attending professional meetings or trade ► Although each management author has his or shows, and reading the professional and trade her favored set of functions, almost all include literature to monitor the external environment and planning, organizing, and controlling on their list. understand the trends that will affect the future of ►"Command“ became too authoritative a word in the enterprise. The researcher (often a supervisor) today’s participative society and has been replaced who performs this function is known as a by "leading," "motivating," or "actuating," and few gatekeeper. authors treat coordinating as a separate function. 2. The disseminator role ► Nonetheless, as the late management author It involves the transmission of information Harold Koontz concluded, internally to subordinates, superiors, and peers so ▪ "There have been no new ideas, research that everyone has the information they need to findings, or techniques that cannot readily be know to do their job. The manager here acts as a placed in these classifications." sort of "telephone switchboard“ in transmitting ► Koontz chose and (with co-author Heinz information. This role as the source of information, Weihrich) defined his favored list of the functions of if carefully handled, strengthens a manager's formal managers as follows: authority. 3.The spokesman [or spokespersons] role It is normally carried out by higher management. Involves speaking for the organization to the press, the public, and other external groups. In an internal version of this role, which might be called advocate, successful supervisors "carry the ball" ► Planning The Decision Making Process ▪ It involves selecting missions and objectives ► Rational decision making process according to and the actions to achieve them David H. Holt," is a process involving the following ▪ It requires decision making, that is. choosing steps: future courses of action from among alternatives. ▪ 1. diagnose problem ▪ 2. analyze environment ► Organizing ▪ 3. articulate problem or opportunity ▪ It is that part of managing that involves ▪ 4. develop viable alternatives establishing an intentional structure of roles for ▪ 5. evaluate alternatives people to fill in an enterprise. ▪ 6. make a choice ▪ 7. implement decision ► Staffing ▪ 8. evaluate and adapt decision results ▪ [included by most authors with Organizing] involves filling, and keeping filled, the positions in 1. Diagnose Problem the organization structure, ► If a manager wants to make an intelligent decision, his first move must to identify the ► Leading problem. If the manager fails in this aspect, it is ▪ It is influencing people to strive willingly and almost impossible to succeed in the subsequent enthusiastically toward the achievement of steps. An expert once said "identification of the organization and group goals. problem is tantamount to having the problem ▪ It has to do predominantly with the interpersonal half-solved.” aspect of managing. 2. Analyze the Environment ► Controlling ► The environment where the organization is ▪ It is the measuring and correcting of activities situated plays a very significant role in the success of subordinates to ensure that events or failure of such an organization. conform to plans. ► It is, therefore, very important that an analysis of the environment be undertaken. LESSON 4 DECISION MAKING ► The objective of environmental analysis is the identification of constraints, which may be spelled ► Decision-making is a responsibility of the out as either internal or external limitations. engineer manager. ► It is understandable for managers to make ► Example of internal limitations are as follows: wrong decisions at times. ▪ 1. Limited funds available for the purchase of ► The wise manager will correct them as soon as equipment. they are identified. ▪ 2. Limited training on the part of employees. ►Delaney concludes that this type of managers ▪ 3. Ill-designed facilities. are dangerous and "should be removed from their position as soon as possible.” ► Examples of external limitations are as follows: ▪ 1. Patents are controlled by other organizations. What is Decision Making ▪ 2. A very limited market for the company's ► Decision-making may be defined as "the process products and services exists. of identifying and choosing alternative courses of ▪ 3. Strict enforcement of local zoning regulations. action in a manner appropriate to the demands of the situation”. ► Components of the Environment ► The definition indicates that the engineer ► The environment consists of two major manager must adapt a certain procedure designed concerns: to determine the best option available to solve ► The internal environment refers to certain problems. organizational activities within a firm that surrounds ► Decisions are made at various management decision making." Shown in Figure 2.1 are the levels (i.e.,top, middle, and lower levels) at various important the internal environment. management functions (i.e., planning, organizing, The external environment refers to variables that directing, and controlling. are outside the organization and not typically within ► Decision-making, according to Nickels and the short-run control of top management. others "is the heart of all the management functions”. ► Important aspects of the internal environment  among alternatives representing potential solutions to a problem. 7. Implement Decision ► After a decision has been made, implementation follows. ► This is necessary, or decision-making will be an exercise in futility. excision results ► Implementation refers to carrying out the decision so that the objectives sought will be achieved. ► To make implementation effective, a plan must be devised. ► At this stage, the resources must be made available so that the decision may be properly implemented. ▪ 3. articulate problem or opportunity ► Those who will be involved in implementation, 3. Develop Viable Alternatives according to Aldag and Stearns, must understand ► Oftentimes, problems may be solved by any of and accept the solution. the solutions offered. ► The best among the alternative solutions must 8. Evaluate and Adapt Decision Results be considered by managements ► In implementing the decision, the results expected may or may not happen. ► The list of solutions prepared by the engineering ► It is, therefore, important for the manager to use manager shows the following alternative courses of control and feedback mechanisms to ensure results action: and to provide information for future decisions. ▪ 1. improve the capacity of the firm by hiring more ► Feedback refers to the process which requires workers and building additional facilities; checking at each stage of the process to assure ▪ 2. secure the services of subcontractors; that the alternatives generated, the criteria used in ▪ 3. buy the needed additional output from another evaluation, and the solution selected for firm; implementation are in keeping with the goals and ▪ 4. stop serving some of the company's customers; objectives originally specified. ▪ 5. delay servicing some clients, ► Control refers to actions made to ensure that activities performed match the desired activities or 4. Evaluate Alternatives goals, that have been set. ► After determining the viability of the alternatives ► In this last stage of the decision-making process, and a revised list has been made, an evaluation of the engineer manager will find out whether or not the remaining alternatives is necessary. the desired result is achieved. ► Proper evaluation makes choosing the right ► If the desired result is achieved, one may solution less difficult. assume that the decision made was good. ► How the alternatives will be evaluated will ► If it was not achieved, Ferrell and Hirt suggest depend on the nature of the problem, the objectives that further analysis is necessary. of the firm, and the nature of alternatives presented. APPROACHES IN SOLVING PROBLEMS ► Souder suggests that "each alternative must be analyzed and evaluated in terms of its value, cost, ► In decision-making, the engineer manager is and risk characteristics. faced with problems which may either be simple or ► The value of the alternatives refers to benefits complex. that can be expected. ► To provide him with some guide, he must be ► The risk characteristics refer to the likelihood familiar with the following approaches: of achieving the goals of the alternatives. ► Qualitative Evaluation 6. Make a Choice ► This term refers to evaluation of alternatives ► After the alternatives have been evaluated, the using intuition and subjective judgment. decision- maker must now be ready to make a ► Stevenson states that managers tend to use the choice. This is the point where he must be qualitative approach when: convinced that all the previous steps were correctly ► 1.The problem is fairly simple. undertaken. ► 2. The problem is familiar. ► Choice-making refers to the process of selecting ► 3. The costs involved are not great. ► 4. Immediate decisions are needed. limitations at plants, warehouse, or market areas are constraints upon the system. ► Quantitative Evaluation ► This term refers to the evaluation of alternatives Regression Analysis using any technique in a group classified as rational ► The regression model is a forecasting method and analytical. that examines the association between two or more QUANTITATIVE MODELS FOR DECISION variables. MAKING ► It uses data from previous periods to predict ► The types of quantitative techniques which may future events. be useful in decision-making are as follows: ► Regression analysis may be simple or multiple depending on the number of independent variables Inventory Models present. ► Inventory models consist of several types all ► When one independent variable is involved, it designed to help the engineer manager make is called simple regression; when two or more decisions regarding inventory. They are as follows: independent variables are involved, it is called ► 1. Economic Order Quantity Models multiple regression. ▪ this one is used to calculate the number of items that should be ordered at one time to minimize the Simulation total yearly cost of placing orders and carrying the ► Simulation is a model constructed to represent items in inventory. reality, on which conclusions about real-life ► 2. Production Order Quantity Model problems can used. ▪ This is an economic order quantity technique ► It is a highly sophisticated tool by means of applied to production orders which the decision maker develops a mathematical ► 3. Backorder inventory model model of the system under consideration. ▪ This is an inventory model used for planned shortages Linear Programming ► 4. Quantity Discount Model ► Linear programming is a quantitative technique ▪ An inventory model used to minimize the total cost that is used to produce an optimum solution within when quantity discount are offered by suppliers the bounds imposed by constraints upon the ► 4. Queuing Theory decision. ► The queuing theory is one that describes how to ► Linear programming is very useful as a determine the number of service units that will decision-making tool when supply and demand minimize both customer waiting time and cost of limitations at plants, warehouse, or market areas service. are constraints upon the system. Network Models Sampling Theory ► These are models where large complex tasks ► Sampling theory is a quantitative technique are broken into smaller segments that can be where samples of populations are statistically managed independently. determined to be used for a number of processes, such as quality control and marketing research. ► The two most prominent network models are: ► 1. The Program Evaluation Review Technique Statistical Decision Theory (PERT) ▪ a technique which enables engineer ► Decision theory refers to the "rational way to managers to schedule, monitor, and control large conceptualize, analyze, and solve problems in and complex projects by employing three time situations involving limited, or partial information estimates for each activity. about the decision environment. ► 2. The Critical Path Method (CPM) ▪ this is a ► A more elaborate explanation of decision theory net work technique using only one time factor per is the decision making process presented at the activity that enables engineer managers to beginning of this chapter. schedule, monitor, and control large and complex ► What has not been included in the discussion on projects. the evaluation of alternatives, but is very important, is subjecting the alternatives to Bayesian analysis. Forecasting ► The purpose of Bayesian analysis is to revise ► There are instances when engineer managers and update the initial assessments of the event make decisions that will have implications in the probabilities generated by the alternative solutions. future. ► Forecasting may be defined as 'The collection of ► When the decision-maker is able to assign past programming is very useful as a probabilities to the decision rule, called the Bayes decision-making tool when supply and demand criterion, becomes possible. ► The Bayes criterion selects the decision consider all alternatives or all the facts about any alternative having the maximum expected payoff, or alternative. the minimum expected loss if he is working with a ▪ A manager "must operate under conditions of loss table. bounded rationality, taking into account only those few factors of which he or she is aware, ► Types of Decisions understands, and regards relevant." 1. Routine and nonroutine decisions ▪ Administrators must satisfice by accepting a ▪ Pringle et al. classify decisions on a continuum course of action that is satisfactory or “good ranging from routine to nonroutine, depending on enough,” and get on with the job rather than the extent to which they are structured. searching forever for the "one best way.” ▪ They describe routine decisions as focusing on well-structured situations that recur frequently, 3. Level of Uncertainty involve standard decision procedures and entail a ▪ Decisions may also be classified as being made minimum of uncertainty. under conditions of certainty, risk, or uncertainty, ▪ Nonroutine decisions, on the other hand, “deal depending on the degree with which the future with unstructured situations or a novel, environment determining the outcome of these nonrecurring nature”, often incomplete knowledge, decisions is known. high uncertainty, and the use of subjective judgment or even intuition, where “no alternative TOOLS FOR DECISION MAKING can be proved to be the best possible solution to the particular problem.” ► Categories of Decision Making ► 2. Objective versus bounded rationality ▪ Decision making under certainty ▪ Simon defines a decision as being “objectively’ Implies that we are certain of the future state of rational if in fact it is the correct behavior for nature (or assume we are). Linear programming maximizing given values in a given situation.” is a tool for the decision making under certainty. This means:- the probability of pj of future Nj is 1 ▪ Such rational decisions are made by and all other futures have zero probability (a) viewing the behavior alternatives prior to ►Linear Programming decision in panoramic [exhaustive (thorough)] ►One common techniques for decision making fashion under certainty ►In this method, a desired benefit (b) considering the whole complex of (such as profit) can be expressed as a consequences that would follow on each choice, mathematical function (the value model or objective (c) with the system of values as criterion singling function) of several variables out one from the whole set of alternatives. ▪ Decision making under risk ▪ Rational decision making, therefore, consists of -- Expected value optimizing, or maximizing, the outcome by - Decision trees choosing the single best from among all possible - Queuing theory ones, which is the approach in the - and Simulation planning/decision making model. ►Nature of Risk ▪ Simon believes that actual behavior falls short, in ►In decision making under risk one assumes that at least three ways, of objective rationality: there, This means: Each Nj has a known (or 1. Rationality requires a complete knowledge and assumed) probability of pj and there may not be anticipation of the consequences that will follow on one state that results best outcome each choice. In fact, knowledge of consequences is Expected Values (Ei) : given the future states of always fragmentary. nature and their probabilities, the solution in 2. Since these consequences lie in the future, decision making under risk is the alternatives Ai imagination must supply the lack of experienced that provides the highest expected value Ei, which feeling in attaching value to them. But values can is defined as the sum of the products of each be only imperfectly anticipated. outcome Oij times the probability pj that the 3. Rationality requires a choice among all possible associated state of nature Nj occurs alternative behaviors. In actual behavior, only a few ►Decision trees provide another technique used of these possible alternatives ever come to mind. in finding expected value. ►They begin with a single decision node (normally represented by a ▪ Managers, under pressure to reach a decision, square or rectangle), from which a number of have neither the time nor other resources to decision alternatives radiate. ►Each alternative ends in a chance node, normally represented by a ▪ It is deciding what will be done, who will do it, circle. where, when and how it will be done, and the ►Risk as variance ►Another common meaning standards to which it will be done of risk is variability of outcome, measured by the variance or (more often) its square root, the ►For our purpose, it will suffice to define planning standard deviation as: ▪ Decision making under uncertainty ▪ selecting the best course of action so that the - Game Theory desired result may be achieved. It must be stressed that the desired result takes first priority and the Lesson 5 Function of Management: Planning / course of action chosen is the means to realize Coordinating the goal Nature of Planning The Planning/Decision-Making Process ►There are many instances when managers are overwhelmed by various activities which at times be cloud his judgment. ►This must be expected since anybody who is confronted by several situations happening simultaneously will loose sight of the more important concerns. ►To minimize mistakes in decision-making, planning is undertaken. ►A plan, which is the output of planning, provides a methodical way of achieving desired results. ►In the implementation of activities, the plan serves as a useful guide. ►Without the plan, some minor tasks may be afforded major attention which may, later on, hinder the accomplishment of objectives A Challenge in Planning: ►The management of an engineering firm was able to identify the need to hire additional three employees. ►The manager proceeded to invite applicants, screen them, and finally hired three of them. ►When the hiring expense report was analyzed, it involved more than double the amount spent by other firms in hiring the same number of people PLANNING AT VARIOUS MANAGEMENT What is PLANNING? LEVELS ►According to Nickels and others: ►Since engineer managers could be occupying ▪ It refers to "the management function that involves positions in any of the various management levels, anticipating future trends and determining the best it will be useful for them to know some aspects of strategies and tactics to achieve organizational planning undertaken at the different management objectives." levels. ► This definition useful because it relates the future to what could be decided now ►Planning activities undertaken at various levels are as follows: ►According to Aldag and Stearns: ►1. Top management level ▪ strategic planning ▪ It is the selection and sequential ordering of tasks ►2. Middle management level ▪ intermediate required to achieve an organizational goal. planning ► This definition, centers accomplish the ►3. Lower management level ▪ operational goals on the activity required to planning ►According to Cole and Hamilton: Strategic Planning  ►The term strategic planning refers to the process of determining the major goals of the organization ►The external opportunities and threats may be in and the policies and strategies for obtaining and some of the following areas: using resources to achieve those goals. ▪ Customers ►The top management of any firm is involved in ▪ Competition this type of planning. ▪ New technologies ►In strategic planning, the whole company is ▪ Government policies considered, specifically its objectives and current resources. ►The output of strategic planning is the ►Once the SWOT review is complete, the future strategic plan which spells out "the decision about strategy may be readily apparent, or as is more long-range goals and the course of action to likely the case, a series of strategies or achieve these goals. combinations of tactics will suggest themselves. ►Use theSWOTsto help identify possible strategies as follows: ▪ Build on Strengths ▪ Resolve Weaknesses ▪ Exploit Opportunities ▪ Avoid Threats ►The resulting strategies can then be modeled to form the basis of a realistic strategic plan. ►The SWOTs identified will assist in the planning, as well as in determining, the gap analysis. ►A gap analysis is a technique used to analyze/assess where you currently are with respect to where you would like to be in the future ►A vision statement describes in graphic terms where the goal setters want to position themselves in the future. ►A mission statement resembles a vision statement, but has a more immediate business focus with a time horizon. ►The mission statement sets forth what the company is attempting to do, and is usually what the public sees. ►The role of an organization’s mission and vision is to align work toward meeting customer expectations. ►Not all companies have both a ►The basic vision, purpose, or mission of an mission and vision. organization must next be interpreted in terms of ►It is difficult to develop future strategies for the goals and objectives. business without knowing the current status and ►Goals give purpose and direction to accomplish their success at this point. ►At this time, an the mission of an organization. analysis of the status needs to be made. ►The goal statement answers the following ►One tool that is often used is the SWOT questions: What do we do; why do we do it; and for (Strengths, Weaknesses, Opportunities, and whom do we do it? It is used as a continual point of Threats) analysis. reference regarding the scope or purpose. ►This analysis should address all factors that are ►The objectives further clarify the goal and key to the organization’s future success. answer the question, How do we go about it? ►There may be several goals, and each goal may ►Strengths and weaknesses are basically internal have several objectives. to an organization and may include the following: ►Strategies are statements about the way ▪ Management objectives are to be achieved. ▪ Marketing ►They are relevant only to the extent that they ▪ Technology help meet the objectives ▪ Research ►Different organizations may interchange the ▪ Finances words vision and mission, and goals and ▪ Systems objectives. ►The importance is not in the words, ►4. Physical and Financial Resources but in the meaning ▪ An enterprise needs to establish goals for the resources (plant, equipment, inventory, and capital) ►One must distinguish between two types of it needs to perform effectively. goals that often coexist: the official goals that management says it is pursuing in its public ►5. Manager Performance and Development statements, and the operative goals that it actually ▪ Since good management is the key to enterprise is pursuing. success, effective firms plan carefully to assure that ►Managers of rural electric cooperatives in the managers will be available in the years ahead in United States, when asked by this author for their the quality and quantity needed for the organization underlying goals, often replied, to provide the best to prosper. possible service at the lowest possible cost. ▪ Supporting goals are then developed in areas ►This is hardly an operative goal, since best such as recruitment, training, and evaluation service implies a high level of staffing of maintenance and repair crews, and “lowest cost” ►6. Worker Performance and Attitude implies a lesser level. ►Only by examining the ▪ Peters and Waterman found that respect for the level actually being maintained could one deduce individual employee was a common thread running the operative goal. through America’s most successful businesses. ▪ Personnel are crew members at McDonald’s, ►Peter Drucker believes that objectives need to “hosts” at Disneyland, “ambassadors” at Six Flags, be established in and associates at J.C. Penney stores. An all areas on which the organization’s survival unfortunate outcome of Frederick Taylor’s scientific depends. He management revolution was, the division of work distinguishes eight such key result areas: into deciding how to do it (by management) and ►1. Market share. doing as you are told (by the workers). ▪ Market share is the ratio of dollar sales of an ▪ Today’s more educated workforce has much to enterprise in a particular market to the total sales of offer the company that knows how to motivate and all competitive products and services in that challenge them effectively market. ▪ Firms with a small market share usually are less ►7. Profitability profitable because they have fewer sales over ▪ The profitability of an enterprise is essential to its which to spread the fixed costs of operation, and continuation, and the desired level should be set managers often decline to enter or remain in a explicitly as an objective against which to measure specific market unless they can either achieve a enterprise success satisfactory market share or can define a smaller “market segment” in which they can be a leader ►8. Social Responsibility ▪ Every enterprise has responsibilities as a ►2. Innovation. corporate citizen that extend beyond the legal and ▪ Most successful companies, especially in the economic requirements. areas of technology where most engineers will ▪ These include responsibilities to customers, work, are continually searching for new products employees, suppliers, community, and society as a and services. whole. ▪ 3M, for example, requires of its 40-odd divisions ▪ The organization that does not at least take that at least 25 percent of sales be of products responsibility for its effect on the environment introduced in the last five years. deserves to be penalized by society ▪ Nonetheless, some successful companies deliberately choose to be followers and to provide Intermediate Planning low-cost, high-volume products without the high expense of being first ►Intermediate planning refers to "the process of ►3. Productivity and Quality determining the contributions that sub-units can ▪ Productivity measures an organization’s ability to make with allocated resources." produce more goods and services per unit of input ►This type of planning is undertaken by middle (labor, materials, and investment). management ▪ In recent years, quality has been added as a ►Under intermediate planning, the goals of a related and essential area for setting objectives. sub-unit are determinedand a plan is prepared to ▪ The two are not inconsistent, since higher quality provide a guide to the realization of the goals. usually leads to lower scrap and rework losses, ►The intermediate plan is designed to support fewer returns, and greater customer satisfaction, the strategic plan. increasing productivity and profitability. Operational Planning ►The setting of goals provide an answer to the said concern. ►If everybody in the firm (or division ►The term operational planning refers to the or unit, as the case may be) is aware of the goals, process of determining how specific tasks can best there is a big chance that everybody will contribute be accomplished on time with available resources. his share in the realization of such goals ►This type of planning is a responsibility of lower management. ►What is a “GOAL”? ►It must be performed in support and the ►It may be defined as the "precise statement of intermediate plan. results sought, quantified in time and magnitude, where possible." Types of Planning Example of Goals, by Organizational Levels ►After determining the goals, the next task is to devise some means to realize them. ►The ways to realize the goals are called strategies and these will be the concern of top management. ►The middle and lower management will adapt their own tactics to implement their plans. ►A strategy may be defined as "a course of action aimed at ensuring that the organization will achieve its objectives." Examples of Strategy THE PLANNING PROCESS ►The decision of a construction firm's ►The process of planning consists of various steps management to diversify its business by engaging depending on the management level that performs also in the trading of construction materials and the planning task. Generally, however, planning supplies. involves the following: ►When the above mentioned strategy is ▪ 1. setting organizational, divisional, or unit goals implemented, it may help the construction firm ▪ 2. developing strategies or tactics to reach those realize substantial savings in the material and goals supply requirements used in their construction ▪ 3. determining resources needed and 66 activities. ►The firm will also have greater control ▪ 4. setting standards in the timing of deliveries of materials and supplies Setting Organizational, Divisional, or Unit Goals ►A tactic is a short-term action taken by ►The first task of the engineer manager is to management to adjust to negative internal or provide a sense of direction to his firm (if he is the external influences. ►They are formulated and chief executive), to his division (if he heads a implemented in support of the firm's strategies. division), or to his unit (if he is a supervisor). ►The decision about short-term goals and the marketing' activities related to a particular courses of action are indicated in the tactical plan. marketing strategy. ►An example of a tactic is the hiring of contractual workers to augment the company's current ►Production plan workforce ▪ this is a written document that states the quantity of output a company must produce in broad terms Determining Resources Needed and by product family ►When particular sets of strategies or tactics have been devised, the engineer manager will, then, ►Financial plan determine the human and nonhuman resources ▪ it is a document that summarizes the current required by such strategies or tactics. financial situation of the firm, analyzes financial ►Even if the resource requirements are currently needs, and recommends a direction for financial available, they must be specified. activities. ►The quality and quantity of resources needed must be correctly determined. ►Human resource management plan ►Too much resources in terms of either quality or ▪ it is a document that indicates the human quantity will be wasteful. resource needs of a company detailed in of quantity ►Too little will mean loss of opportunities for and quality and based on the requirements of the maximizing income company's strategic plan. ►To satisfy strategic requirements, a general statement of needed resources will suffice. Plans With Time Horizon ►The specific requirements will be determined by the different units of the company. ►Short range plans ▪ these are plans intended to cover a period of less Illustration: than one year. ►Suppose the management of a construction firm ▪ First-line supervisors are mostly concerned with has decided, in addition to its current undertakings, these plans to engage in the trading of construction materials and supplies. ►Long-range plans ▪ these are plans covering a time span of more than Setting Standards one year. ►The standards for measuring performance may ▪ These are mostly undertaken by middle and top be set at the planning stage. When actual management. performance does not match with the planned performance, corrections may be made or Plans According to Frequency of Use reinforcements given. ►1. standing plans ►A standard may be defined as "a quantitative or ▪ These are plans that are used again and again, qualitative measuring device designed to help and they focus on managerial situations that recur monitor the performances of people, capital goods repeatedly. or processes”. ►An example of a standards is the minimum ►Classification of Standing Plans number of units that must be produced by a worker ►1. Policies ▪ they are broad guidelines to aid per day in a given work situation managers at every level in making decisions about recurring situations or function. TYPES OF PLANS ►2. Procedures ▪ they are plans that describe the ►They may in terms of: exact series of actions to be taken in a given ▪ functional areas situation. ▪ time horizon ►3. Rules ▪ they are statements that either require ▪ use or forbid a certain action. Functional Area Plans ►2. single-use plans ►Plans may be prepared according to the needs of ▪ These plans are specifically developed to the different functional areas. implement courses of action that are relatively ►Among the types of functional area plans are the unique and are unlikely to be repeated following: ►Marketing plan ►Classification of Single-Use Plans ▪ this is the written document or blueprint for ►1. budgets ▪ A budget, according to Weston and implementing and controlling an organization's Brigham, is "a plan which sets forth the projected expenditure for a certain activity and explains ►5. Marketing Strategies ►6. Marketing Tactics where the required funds will come from. ►7. Schedules and Budgets ►8. Financial Data and Control ►2. programs ▪ It is a single-use plan designed to coordinate a large set of activities PARTS OF THE STRATEGIC PLAN ►1. Company or corporate mission ► 3. projects ▪ It is a single-use plan that is usually ►2. Objectives or goals more limited in scope than a program and is ►3. Strategies sometimes prepared to support a progra MAKING PLAN EFFECTIVE ►Planning may be made successful if the following are observed: ►1. recognize the planning barriers ►2. use of aids to planning ►The planning barriers, according to Plunkett and Attner: ▪ 1. manager's inability to plan ▪ 2. improper planning process ▪ 3. lack of commitment to the planning process ▪ 4. improper information ▪ 5. focusing on the present at the expense of the future ▪ 6. too much reliance on the planning department ▪ 7. concentrating on only the controllable variables ►Aids to Planning: ▪ 1. Gather as much information as possible ▪ 2. Develop multiple sources of information ▪ 3. Involve others in the planning process Lesson 6 Functions 0f Management –Organizing PARTS OF THE VARIOUS FUNCTIONAL AREA Reasons for Organizing PLANS ►Organizing is undertaken to facilitate the implementation of plans. ►The engineer manager may be familiar with ►In effective organizing, steps are undertaken to engineering plans, knowing the details from breakdown the total job into more manageable beginning to end. man-size jobs ►However, the ever present possibility of moving from one management level to the next and from What is ORGANIZING? one functional area to another presses the engineer manager to be familiar as well with other functional ►Organizing a management function which refers area plans. to “the structuring of resources and activities to accomplish objectives in an efficient and effective The Contents of the Marketing Plan manner." ►The structure and content of marketing plans ►Weihrich and Koontz believe that people “will vary depending on the nature of the organizations work together most effectively if they know the adapting them. parts they are to play in any team operation and ►William Cohen maintains that the following must how their roles relate to one another.... Designing be included in the marketing plan: and maintaining these systems of roles is basically ►1. The Executive Summary ▪-which presents an the managerial function of organizing.” They overall view of the marketing project and its continue: potential. ►2. Table of Contents ►For an organizational role to exist and be ►3. Situational Analysis and Target Market meaningful to people, it must incorporate ►4. Marketing Objectives and Goals ▪ (1) verifiable objectives, which... are a major ►5. Coordination ▪ the linking of activities in the part of planning; organization that serves to achieve a common goal ▪ (2) a clear idea of the major duties or activities or objective involved; and ▪ (3) an understood area of discretion or authority, The FORMAL ORGANIZATION so that the person filling the role knows what he or she can do to accomplish goals. ►After a plan is adapted, management will ►In addition, to make a role work out effectively, proceed to form an organization to carry out the provision should be made for supplying needed activities indicated in the plan. information and other tools necessary for performance in that role. ►The formal organization is “the structure that details lines of responsibilities, authority, and ►It is in this sense that we think of organizing as position.”. ▪ (1) the identification and classification of required activities, ►What is depicted in the organization chart is the ▪ (2) the grouping of activities necessary to attain formal organization. objectives, ►It is “the planned structure” and it “represents ▪ (3) the assignment of each grouping to a manager the deliberate attempt to establish patterned with the authority (delegation) necessary to relationships among components that will meet supervise it, and the objectives effectively.” ▪ (4) the provision for coordination horizontally (on the same or similar organizational level) and ►The formal structure is described by vertically (for example, corporate headquarters, management through: division, and department) in the organization structure. 1. The organization chart is a diagram of the organization's official positions and formal lines of ►The arrangement or relationship of positions authority. within an organization is called the structure. ►The result of the organizing process is the 2. The organizational manual provides written structure descriptions of authority relationships, details the functions of major organizational units, and The Purpose of the STRUCTURE describes job procedures. ►1. It defines the relationships between tasks and 3. The policy manual describes personnel authority for individuals and departments. activities and company policies. ►2. It defines formal reporting relationships, the number of levels in the hierarchy of the INFORMAL GROUPS organization, and the span of control. ►3. It defines the groupings of individuals into ►Formal organizations require the formation of departments and departments into organization. formal groups which will be assigned to perform ►4. It defines the system to effect coordination of specific tasks aimed at achieving organizational effort in both vertical (authority) and horizontal objectives. (tasks) directions. ►The formal group is a part of the organization structure. ►When structuring an organization, the engineer ►There are instances when members of an manager must be concerned with the following: organization spontaneously form a group with friendship as a principal reason for belonging. ►1. Division of labor ▪ determining the scope of ►This group is called an informal group. It is not work and how it is combined in a job. a part of the formal organization and it does not ►2. Delegation of authority ▪ the process of have a formal performance purpose. assigning various degrees of decision-making ►Informal groups are oftentimes very useful in authority to subordinates. the accomplishment of major tasks, especially if ►3. Departmentation ▪ the grouping of related these tasks conform with the expectations of the jobs, activities, or processes into major members of the informal group organizational subunits. ►The informal organization, useful as it is, is ►4. Span of control ▪ the number of people who “vulnerable to expediency, manipulation, and report directly to a given manager. opportunism,” according to Valentine. ►“Its low visibility makes it difficult for management to detect these misrepresentations, and considerable harm can be done to the company” Advantages of Functional Organization according to Valentine ►1. The grouping of employees who perform a common task permit economies of scale and ►The engineer manager is, therefore, warned that efficient resource use. he must be on the lookout for the possible ►2. Since the chain of command meets at the top difficulties that the informal groups may do to the of the organization, decision making is centralized, organization. providing a unified direction from the top. ►It will be to his best interest if he could make the ►3. Communication and coordination among informal groups work for the organization. employees within each department are excellent. ►4. The structure promotes high-quality technical Reasons or Factors for Joining or Forming a problem-solving. Group ►5. The organization is provided with in depth skill specialization and development. ►6. Employees are provided with career progress within functional departments. Disadvantages of Functional Organization ►1. Communication and coordination between the departments are often poor. ►2. Decisions involving more than one department pile up at the top management level and are often delayed. ►3. Work specialization and division of labor, which are stressed in a functional organization, produce routine, non motivating employee tasks. ►4. It is difficult to identify which section or group is responsible for certain problems. ►5. There is limited view of organizational goals by employees. ►6. There is limited general management training for employees Product or Market Orgnization ►The product or market organization, with its Types of Organizational Structures feature of operating by divisions, is “appropriate for a large corporation with many product lines in ►1. Functional organization ▪ this is a form of several related industries.” departmentalization in which everyone engaged in one functional activity, such as engineering or Advantages of Product or Market Organization marketing, is grouped into one unit. ►1. The organization is flexible and responsive to change. ►2. Product or market organization ▪ this refers ►2. The organization provides a high concern for to the organization of a company by divisions that customer's needs brings together all those involved with a certain ►3. The organization provides excellent type of product or customer. coordination across functional departments. ►4. There is easy pinpointing of responsibility for ►3. Matrix organization ▪ an organizational product problems is provided. structure in which each employee reports to both a ►5. There is emphasis on overall product and functional or division manager and to a project or division goals. group manager. ►6. The opportunity for the development of general management skills Functional Organization ►Functional organization structures are very Disadvantages of a Product or Market effective in smaller firms, especially “single Organization business firms where key activities revolve around ►1. There is a high possibility of duplication of well-defined skills and areas of specialization”. resources across divisions. ►2. There is less technical depth and specialization in divisions. ►3. There is poor coordination across divisions. ►STAFF DEPARTMENTS include all those that ►4. There is less top management control. provide specialized skills in support of line ►5. There is competition for corporate resources. departments. ▪ Examples : those which perform strategic Matrix Organization planning, labor relations, research, accounting and personnel. ►A matrix organization, according to Thompson and Strickland, “is a structure with two ►Staff officers may be classified as: (or more) channels of command, two lines of budget authority, and two sources of performance ►1. Personnel Staff ▪ Those individuals assigned and reward.” to a specific manager to provide needed staff and services. ►Higgins declared that “the matrix structure was designed to keep employees in a central pool and ►2. Specialized Staff ▪ Those individuals to allocate them to various projects in the firm providing needed staff services for the whole according to the length of time they were needed.” organization Advantages of Matrix Organization ►FUNCTIONAL AUTHORITY is one given to a ►1. There is more efficient use of resources than person or a work group to make decisions related the divisional structure. to their expertise even if these decisions concern ►2. There is flexibility and adaptability to changing other departments. environment. ►This authority is given to most budget officers of ►3. The development of both general and organizations, as well as other officers. functional management skills are present. ►4. There is interdisciplinary cooperation and any Line and Staff Organization expertise is available to all divisions. ►5. There are enlarged tasks for employees which motivate them better Disadvantages of Matrix Organization ►1. There is frustration and confusion from dual chain of command. ►2. There is high conflict between divisional and functional interests. ►3. There are many meetings and more discussion than action. ►4. There is a need for human relations training for key employees and managers. ►5. There is a tendency for power dominance by one side of the matrix. Types of AUTHORITY ►1. Line authority ▪ a manager's right to tell The Purpose of COMMITTEE subordinates what to do and then see that they do ►When certain formal groups are deemed it. inappropriate to meet expectations, committees are ►2. Staff authority ▪ a staff specialist's right to oftentimes harnessed to achieve organizational give advice to a superior goals. ►Many organizations, small or large, make use of ►3. Functional Authority ▪ A specialist’s right to committees. oversee lower level personnel involved in that specialty, regardless of where the personnel are in ►A COMMITTEE is a formal group of persons the organization. formed for a specific purpose. ►Product Planning committee is often staffed by ►LINE DEPARTMENTS performs tasks that reflect top executives from marketing, production, the organization’s primary goal and mission. research, engineering, and finance who work part time to evaluate and approve product lines - Millevo ►Committees are very useful most especially to engineering and manufacturing firms. ►When a certain concern, like product development, is under consideration, a committee is usually formed to provide the necessary line-up of expertise needed to achieve certain objectives Classification of Committees ►1. Ad Hoc Committee ▪ One created for a short-term purpose and have a limited life. ▪ Example: committee created to manage the anniversary festivities of a certain firm. ►2. Standing Committee ▪ It is relatively permanent committee that deals with issues on an ongoing basis. ▪ Example : Grievance Committee set up to handle initially complaints from employees of the organization LESSON 7 Functions of Management STAFFING STAFFING PROCEDURE Human Resource Planning Selection Induction and Orientation -It refers to the act of choosing from those that are available, the individuals most likely to succeed on the job. A requisite for effective selection is the preparation of a list indicating that an adequate pool of candidates is available  Training and Development Training refers to the “learning that is provided in order to improve performance on the present job. Types of Training Progrmams 1. For nonmanagers 2. Training and educational programs for executives Training Program for Nonmanagers 1. On-the-job training Where the trainer is placed in an actual work situation under the direction of his Types of tests immediate supervisor, who acts as trainer. Psychological Tests Which is “an objective, This situation motivates strongly the trainee to standard measure of a sample behavior. learn CLASSIFICATION: 2. Vestibule School Where the trainee is placed in a situation almost exactly as the workplace A. Aptitude test – one used to measure a where machines, materials, and time constraints person’s capacity or potential ability to learn. are present. As the trainer works full time, the trainee is B. Performance test– one used to measure a assured of sufficient attention from him. person’s current knowledge of a subject. 3. Apprenticeship program Where a combination C. Personality test– one used to measure of on-the-job training and experiences with personality traits as dominance, sociability, and classroom instruction in particular subjects are conformity provided to trainees. D. Interest test – one used to measure a person’s 4. Special courses Are those taken which interest in various fields of work provide more emphasis on education rather than training. Examples are those which concern Physical examination A type of test given to specific uses of computer like computer aided assess the physical health of an applicant. It is design and building procedures. given “to assure that the health of the applicant is adequate to meet the job requirments. Training Program for Managers 1. Decision Making Skills INDUCTION AND ORIENTATION a. In-basket In induction , the new employees is provided b. Management Games with the necessary information about the company. c. Case Studies His duties, responsibilities, and benefits are relayed to him. 2. Interpersonal Skills Personnel and health forms are filled up, and a. Role-playing passes are issued. b. Behavior modelling The company history, its product and services, c. Sensitivity training and the organization structure are explained to the d. Transactional analysis new employee. 3. Job Knowledge In orientation , the new employee is introduced a. On-the-job experience to the immediate working environment and b. Coaching co-workers. c. Understudy Discuss: location, rules, equipment, procedures, and training plans. 4. Organizational Knowledge Performance expectations are also discussed. a. Position rotation The new employees also undergoes the b. Multiple Management “socialization process” by pairing him with an experienced employee and having a one-on-one 1. Decision Making Skills discussion with the manager a. In-Basket Where the trainee is provided with a set of notes, messages, telephone calls,, letters, and reports, all pertaining to a certain company department. The purpose is to expose him to situation. He is expecyed to handle the situation different functions of the organization. within a given period of 1 0r 2 hours. B. Multiple Management This method is b. Management Games It is a training method premised on the idea that junior executives must be where “trainees are faced with a simulated situation provided with means to prepare them for higher and are required to make an ongoing series of management positions. To achieve this, a junior decisions about that situation.” board of directors is created consisting of junior executives as members.. The board is given the 3. Case Studies This method presents actual authority to discuss problems that the senior board situations in organizations and enable one to could discuss. The members are encouraged to examine successful and unsuccessful operations. take a brod business outlook rather than It emphasizes “the manager’s world, improves concentrating on their specialized lines of work. communication skills, offers rewards of solving a mystery, possesses the quality of illustration, and Performance Appraisal establishes concrete reference points for connecting theory with practice.” PURPOSE 1. To influence, in a positive manner, employee 2. Interpersonal Skills performance and development. 2. To determine merit pay increases. A. Role Playing The purpose of this method is to 3. To plan for future performance goals. improve the skill of the trainees in human relations, 4. To determine training and development needs. supervision and leadership. 5. To assess the promotional potential of B. Behavior Modelling It attemps to influence the employees. trainee by “showing model persons behaving effectively in a problem situation”. Ways of Appraising Performance C. Sensitivity Training Awareness and sensitivity 1. Rating Scale – where each trait or to behavioral patterns of oneself and othrs are characteristics to be rated is represented by a line developed or scale on which the rater indicates the degree to D. Transactional Analysis It is intened to help which the individual possesses the trait or individulas not only understand themselves and characteristics others but also improve their interpersonal 2. Essay – where the evaluator composes communication skills statements that best describe the person evaluated 3. Job Knowledge 3. Management by objective where specific goals are set collaboratively for the organization as a A. On-the-job Experience This method provides whole, for various subunits, and for each individual valuable opportunities for the trainee to learn member. Individuals, are, then, evaluated on the various skills while actually engaged in the basis of how ell they have achieved the results performance of the job. specified by the goals. B. Coaching This method requires a senior manager to assist a lower-level manager by 4. Assessment Center – where one is evaluated teaching him the needed skills and generally by persons other than the immediate superior. This providing directions, advice, and helpful criticism. method is used for evaluating managers. The senior manager must be skilled himself and have the ability to educate, otherwise the method 5. Checklist – where the evaluator checks will be ineffective. statements on a list that are deemed to C. Understudy Under this method, a manager characterize an employee’s behavior or works as assistant to a higher-level manager and performance. particiaptes in planning and other managerial functions until he is ready to assume such position 6. Works standards – where standards are set for himself. Once in a while the assistant is allowed to the realistic worker output and later on used in take over evaluating the performance of nonmanagerial employees. 4. Organizational Knowledge 7. Ranking – where each evaluator arranges A. Position Rotation Under this method, the employees in rank order from the best to the manager is given assignment in a variety of poorest. \  8. Critical-incident – where the evaluator recalls ►Normally, the letter begins by identifying the and writes down specific (but critical) incidents that position or type of work you are applying for and, if indicate the employee’s performance. A critical appropriate, where you heard of the opening. incident occurs when employee’s behavior results ►A second paragraph can state why that in an unusual success or failure on some parts of company and position interests you, and describe the job. concisely (a sentence or two) the education, experience, and other abilities that have prepared Employment Decision Separation you for the position you seek. ►A closing paragraph can refer to the attached 1. Monetary Rewards These are given to résumé, thank the recipient for his or her employees whose performance is at par or above consideration of it, and (if appropriate) indicate that standard requirements you will call within a specified time to inquire about a possible interview. 2. Promotion This refers to a movement by a ►A quality cover letter should encourage the person into a position of higher pay and greater recipient to give your résumé fair consideration; responsibilities and which is given as a reward for with a poor one, your résumé may not be read. competence and ambition ►Employment Application 3. Transfer This is the movement of a person to a ►If the résumé leads to further interest from a different job at the same or similar level of potential employer, the applicant will typically have responsibility in the organization. Transfers are to fill out (neatly, of course) much of the same made to provide growth opportunities for the information on an employment application, persons involved or to get rid of a poor performing arranged in a standard form familiar to interviewers employee. from that organization. 4. Demotion This is the movement from one ►Campus Interview position to another which has less pay or ►The newly graduating engineer typically makes responsibility attached to it. Demotion is used as a the first contact with potential employers in the form of punishment or as a temporary measure to campus placement interview. ►Interview outcomes keep an employee until he is offered a higher are a complex dynamic of the attributes of the position. applicant, o