EIM2301 Engineering Management Lecture 04 PDF

10/30/2024 EIM2301 Engineering Management Lecture 04 The Functions of Engineering Management: The Organizing Function 1 Outline Introduction and Definitions 1 Activities of Organizing...

10/30/2024 EIM2301 Engineering Management Lecture 04 The Functions of Engineering Management: The Organizing Function 1 Outline Introduction and Definitions 1 Activities of Organizing 2 Enhancing Corporate Performance by Organizing: 3 Examples EIM2301 Engineering Management 2 Noha M. Galal, Ph.D. 2 1  10/30/2024 Introduction Planning Controlling Organizing Management Functions Leading Staffing EIM2301 Engineering Management 3 Noha M. Galal, Ph.D. 3 Introduction Organizing means arranging and relating work so that it can be done efficiently by the appropriate people. Designing the organizational structure and defining the working relationships for attaining the company’s objectives will: Ensure that important Form the basis for work gets done in Provide continuity wage and salary Aid delegation priority order administration Encourage teamwork Facilitate Promote growth and by minimizing Stimulate creativity communication diversification personality conflicts and other problems EIM2301 Engineering Management 4 Noha M. Galal, Ph.D. 4 2  10/30/2024 Introduction (cont.) Dedicated people can make any organization work. However, dedicated people in well-organized units can get outstanding work done. “Too little liberty brings stagnation and too much brings chaos.” Bertrand Russel (1872-1970) EIM2301 Engineering Management 5 Noha M. Galal, Ph.D. 5 Definitions (1 of 4) Span of control: the number of people supervised by a manager or supervisor. It may be small (a few people) or large (20 or 30 people). Size depends on workforce diversity, task volume, and complexity of work, as well as on the geographic dispersion of workers. The current trend is moving toward larger span of control, increasing from 7 to 20 or more, due to: a. Reduction of middle management levels b. Enhanced communication tools c. Empowered knowledge workers, allowing decision-making at lower levels by people with more applicable knowledge d. Improved morale, productivity, and profitability, made possible by less detailed supervision, particularly over professional workers EIM2301 Engineering Management 6 Noha M. Galal, Ph.D. 6 3  10/30/2024 Definitions (2 of 4) Organization types: The line organization (e.g., a profit center) performs activities directly related to the company’s main goals Examples include business management, product management, sales and marketing, product design, and engineering, production, and customer services. On the other hand, the staff organization (e.g., a cost center) provides advice and comments in support of the line organization’s work. Examples include research and development, financial and accounting, information services, procurement, legal affairs, public relations, and facility engineering. EIM2301 Engineering Management 7 Noha M. Galal, Ph.D. 7 Definitions (3 of 4) Overlap and duplication of responsibility: a situation where two or more people do the same work and make the same decisions. Such undesirable situations are to be avoided in any organization, as they represent sources of conflicts and wastes. Specialization: the increased degree of skill concentration in narrow technical domains. Specialization of work leads to improved efficiency. However, overspecialization may cause monotony, fatigue, disinterest, and inefficiency on the part of the worker. Work arrangement: The logical arrangement of work promotes task accomplishments and enhances personal satisfaction for more workers over a longer period of time. EIM2301 Engineering Management 8 Noha M. Galal, Ph.D. 8 4  10/30/2024 Definitions (4 of 4) Authority: the legal or rightful power of a person, by assignment or by being associated with a position, to command, act, or make decisions—this is the binding force of an organization Responsibility: the duty to perform work assumed by a position holder in an efficient and professional manner Accountability: an upward-directed obligation to secure the desired results of the assigned work. EIM2301 Engineering Management 9 Noha M. Galal, Ph.D. 9 Activities of Organizing 1. Organizing one’s own workplace for productivity 2. Developing organizational structure 3. Delegating 4. Establishing working relationships EIM2301 Engineering Management 10 Noha M. Galal, Ph.D. 10 5  10/30/2024 Organizing One’s Own Workplace for Productivity How well is the office of a typical engineering manager organized? 1 Use an online calendar that indicates time slots blocked out for important tasks. 2 Maintain a “to-do” list 3 File papers based on “access,” or use a logical keyword system under which to find the document later. 4 Implement a system for keeping track of names and phone numbers 5 Cultivate the use of the phone. Prepare notes before placing calls and make the calls brief (e.g., by standing up). EIM2301 Engineering Management 11 Noha M. Galal, Ph.D. 11 Developing Organizational Structure The identification and assortment of work so that it can be done efficiently by qualified people in teams, task forces, committees, departments, and other suitable arrangements. The purpose is to help ensure that important work related to the key objectives of the unit or department is performed. Good organization structure: eliminates or minimizes the overlap and the duplication of responsibilities. Ensures utilization of available talents, encourages mutual support among workers, provides technological foci, and facilitates problem solving. EIM2301 Engineering Management 12 Noha M. Galal, Ph.D. 12 6  10/30/2024 Types of Organizational Structure Product/Region- Functional Discipline-Based Based Organization Organization Organization Matrix Team Network Organization Organization Organization EIM2301 Engineering Management 13 Noha M. Galal, Ph.D. 13 Functional Organization EIM2301 Engineering Management 14 Noha M. Galal, Ph.D. 14 7  10/30/2024 Functional Organization (1) manufacturing operations, process industries, and other organizations with limited product diversity or high relative stability of workflow; (2) start-up companies; (3) companies with a narrow product range, simple marketing pattern, and few production sites; and (4) companies following the lead of their competitors. EIM2301 Engineering Management 15 Noha M. Galal, Ph.D. 15 Functional Organization (1) permits a hierarchy of skills to be (1) encouraging excessive centralization, developed and maintained, (2) delaying decision-making due to (2) facilitates specialization in order barriers created by the departmental to achieve high levels of excellence, boundaries, (3) simplifies coordination as (3) compounding communication line experts in various functional areas loss, are logically grouped together, and (4) restricting the development of (4) allows the use of current managerial skills of employees, and technologies and state-of-the-art (5) limiting employee growth because of equipment. constrained exposure to professional experience outside of the departments. EIM2301 Engineering Management 16 Noha M. Galal, Ph.D. 16 8  10/30/2024 Discipline-Based Organization Universities, governmental laboratories, and some contract research firms EIM2301 Engineering Management 17 Noha M. Galal, Ph.D. 17 Product/Region-Based Organization EIM2301 Engineering Management 18 Noha M. Galal, Ph.D. 18 9  10/30/2024 Product/Region-Based Organization Large companies may produce and market products/services of various types to different customers in geographically dispersed locations. More often than not, each of these products/services may require different production, sales, and business strategies to achieve success in the marketplace. EIM2301 Engineering Management 19 Noha M. Galal, Ph.D. 19 Product/Region-Based Organization (1) focuses on end products/service (1) costs may be high due to layers and or geographical regions for autonomous or duplicated facilities, improved local adaptation, (2) it may require added management (2) facilitates companywide talents, coordination, (3) specialists may easily become obsolete (3) encourages management due to a lack of focus and dedication, and development of employees, (4) changes are slow to implement (4) provides for decentralization, because of the complex organizational and bureaucracy. (5) opens ways for unlimited growth EIM2301 Engineering Management 20 Noha M. Galal, Ph.D. 20 10  10/30/2024 Matrix Organization EIM2301 Engineering Management 21 Noha M. Galal, Ph.D. 21 Matrix Organization a short-term arrangement for specific projects and tasks involving both functional group employees and project managers. Managers of functional groups supervise technical contributors who have valuable skills and know-how. Project managers are those entrusted by upper management with the responsibilities of managing specific projects, such as capital projects, the design of new products to specifications, and the creation of business entry strategies. Project managers have resources—money, time, facilities, and management support—and they “borrow” employees from the functional groups to accomplish the work EIM2301 Engineering Management 22 Noha M. Galal, Ph.D. 22 11  10/30/2024 Matrix Organization project managers focus on schedule - requires participating employees to and cost, whereas functional report to two bosses (dual reporting), thus managers concentrate on work violating the “unity command” principle. quality and expertise. -When employees are assigned to work on This arrangement offers a balance several projects, they may be subjected to of workload, and it is excellent for marching orders issued by several participating employees to achieve superiors. wide exposure within the company - Conflicts between the functional and by interacting with those outside of project managers are frequent and severe, their special domains of expertise mostly with respect to task priority, manpower assignment, interests, quality versus urgency, performance appraisal, employee promotion, and other issues. EIM2301 Engineering Management 23 Noha M. Galal, Ph.D. 23 Example: Project and Functional Managers Once the functional manager and project manager agree on a project schedule, who is responsible for getting the work performed? Who is accountable for getting the work performed? Why the difference, if any? EIM2301 Engineering Management 24 Noha M. Galal, Ph.D. 24 12  10/30/2024 Example: Project and Functional Managers Responsibility and accountability are two different management concepts. In a matrix organization, the project manager delegates tasks to the functional manager, who in turn assigns specific tasks to individual employees in his or her functional group. The functional manager remains responsible for getting the work performed, whereas the project manager is accountable for the results of the work that has been delegated to and done by the functional manager (or his or her people). EIM2301 Engineering Management 25 Noha M. Galal, Ph.D. 25 Example: Project and Functional Managers The project manager is accountable for achieving specific project objectives. He or she defines the pertinent tasks to be accomplished. If the tasks are defined improperly, causing the project objectives to be impossible to attain, the project managers are accountable for such mistakes. The functional manager, on the other hand, is responsible only for supplying the right people with the proper skills and dedication to accomplish the stated tasks. The functional manager is responsible for accomplishing the agreed-upon tasks efficiently and professionally. EIM2301 Engineering Management 26 Noha M. Galal, Ph.D. 26 13  10/30/2024 Team Organization EIM2301 Engineering Management 27 Noha M. Galal, Ph.D. 27 Team Organization A team is composed of members who are “on loan” from their respective functional departments and are thus assigned to work full- time for the team leader in tackling high-priority, short-duration tasks or projects. Since all team members report to the team leaders only, conflicts arising from dual reporting are eliminated. Examples of team organization include product development teams and special task forces. EIM2301 Engineering Management 28 Noha M. Galal, Ph.D. 28 14  10/30/2024 Network Organization https://cms.boardmix.com/images/articles/network- structure.png EIM2301 Engineering Management 29 Noha M. Galal, Ph.D. 29 Network Organization Companies form alliances, create business networks, and establish supply chains with regional companies to manufacture, assemble, market, deliver, and service products for specific regional markets. At the nodes of such networks are knowledge workers who manage relationships with others (e.g., suppliers, customers, functional groups within an organization, and other such partners). EIM2301 Engineering Management 30 Noha M. Galal, Ph.D. 30 15  10/30/2024 Unique Features of Network Organizations 1. All members are independent, flexible, and empowered. They behave responsibly, free of the traditional top-down command-and- control structures. 2. Members tend to self-organize themselves by ways of intensive interactions between the members and to form self-directed network organizations. 3. The flexible organizational form fosters creativity and innovation of empowered members. EIM2301 Engineering Management 31 Noha M. Galal, Ph.D. 31 16