Engineering Management Lecture 6 PDF

‫كلية الهندسة – قسم الهندسة الكهربائية‬ ‫العام الدراسي‪2023 /2022 :‬م – الفصل الدراسي الثاني‬ ‫المقرر‪ :‬اإلدارة الهندسية‬ ‫الفرقة‪ :‬الرابعة‬ ‫رقم المحاضرة‪6 :‬‬ ‫عنوان المحاضرة‪ORGANIZING AND CONTR...

‫كلية الهندسة – قسم الهندسة الكهربائية‬ ‫العام الدراسي‪2023 /2022 :‬م – الفصل الدراسي الثاني‬ ‫المقرر‪ :‬اإلدارة الهندسية‬ ‫الفرقة‪ :‬الرابعة‬ ‫رقم المحاضرة‪6 :‬‬ ‫عنوان المحاضرة‪ORGANIZING AND CONTROLLING :‬‬ ‫‪Mr. MUBARAK MOHAMMED‬‬  SYLLABUS  Introduction to Engineering Management  Planning and Forecasting  Decision Making  Planning Production Activity  Organizing and Controlling  Leading Technical People  Engineering Project Management 2  OBJECTIVES  Identify the organizing  Review the key activities of organizing  Discussing the legal forms of organization  Explaining the organizational structures.  Discussing the types span of control  Review the factors which affecting the span of control  Discussing the types of companies.  Discussing the human aspects of organizing  Organizing  Organizing is:  Identification and classification of required Identifica tion activities.  Grouping of activities necessary to attain objectives. Coordinat Classifica  Assigning of each grouping to a manager with ion tion the authority necessary to supervise it. Organizing  Provision for coordination horizontally and vertically in the organization structure To work efficiently in a team, members need to know Assigning Grouping the parts to play (roles) and how these roles relate to one another. Designing and maintaining these systems of roles is called organizing.  Organizing  Key Activities of organizing:  They are the primary activities for which the organization exists.  These are the activities that answer the questions: 1. In what area is excellence required to obtain the company’s objectives? 2. In what areas would lack of performance endanger the results, if not the survival, of the enterprise? 3. What are the values that are truly important to us in the company? For each “key activity” we need to conduct decision analysis and relation analysis.  Organizing  Legal Forms of Organizations: 1. Sole Proprietorship  Owned and operated by one person  Simple to organize and shut down  Has few legal restrictions  Owner is free to make all decisions  Profit is taxed only once  Unlimited responsibility for debts  Difficult to raise capital for growth of business  Duration of business is limited to the life of proprietor  Organizing  Legal Forms of Organizations: 2. Partnership  Association of two or more partners  Has relatively few legal restrictions  Permits the pooling the managerial skills and judgements  Divided decision making and authority might cause problems  Partners have unlimited liability for debts  In a limited partnership, there must be at least one general partner  Limited partners are limited only to the extent of their investment Partnership is the most common form of business organization  Organizing  Legal Forms of Organizations: 3. Corporations  Legal entities owned by shareholders  Shareholder has no liability beyond loss of the value of stock  Have perpetual life as long as submitting necessary reports  Raising money for growth is easy  Easiness in transfer of ownership and change management  More difficult and expensive to organize  Subject to many rules and regulations  More taxing is applied Most large organizations are corporations  Organizing  Legal Forms of Organizations: 4. Cooperatives  Special type of organization owned by users or customers  Earnings are usually distributed tax free  Board members managing cooperative are elected by all members  Organizing  Legal Forms of Organizations: Form Owners Liability Comments  Simple to run Sole  Decisions made by owner 1 For all debt Proprietorship  Increasing capital is difficult  Lifespan = owner life  Wider pool to draw resources and For all debt, distributed Partnership >1 decisions ideas from. by share size  Divided decision making  Wider pool to draw resources from  Easier to change management Corporation >1 For investment  Longer life  Expensive and difficult to organize  Legally complex Cooperatives >1 Equal distribution  Tax free  Organizing  Organizational Structures:  Departmentalization: The division of organizations into smaller units.  The type of structure needed is dependent on the organization; its size, products, and market. Patterns of Departmentalization 1. Primitive Organization: 2. Functional Departmentalization 3. Product Departmentalization 4. Geographic Departmentalization Many larger organizations use a 5. Customer Departmentalization combination of these structures.  Organizing  Organizational Structures: 1. Primitive Organization: Used for very small companies. Usually sole owner with very few employees. Owner Employee 1 Employee 2 Employee 3  Organizing  Organizational Structures: 2. Functional Departmentalization: As company grows and there is a need for specialized individuals we start developing departments formed around specific functions. President Finance Production Sales Designer Manager Manager Manager  Organizing  Organizational Structures: 3. Product Departmentalization : For companies with products requiring distinctly different production or marketing methods, then it can divide along product line. President Finance Production Marketing R&D Product 1 Product 2 Account Account Production Production Marketing Marketing  Organizing  Organizational Structures: 4. Geographic Departmentalization : When sales regions are widespread and diverse, an organization can develop a Geographic structure. President Finance Production Marketing R&D Eastern Western Region Region Account Account Production Production Marketing Marketing  Organizing  Organizational Structures: 5. Customer Departmentalization : Departmentalization along “customer” type is used when company has distinct customers requiring distinct marketing and sales approaches. President Finance Production Marketing R&D Customer 1 Customer2 Account Account Production Production Marketing Marketing  Organizing  Organizational Structures: 6. Mix Departmentalization : used for very large organizations. President Finance Production Marketing R&D Product 1 Product 2 Eastern Sales Western Sales Parts Industry Sales Assembly Customer Sales Finishing  Controlling  Span of Control:  Span of Control defines the number of employees reporting to a single manager or supervisor.  The less number of span means more levels and the greater number of span means less level. CEO M M M M M M M M M M M M M M M M M M M M W W W W W W W W W W W W W W W W Control of Span for 4 (needs 20 managers)  Controlling  Factors affecting span: 1. Subordinate training: Better trained subordinates means less supervision required. 2. Nature of jobs supervised Simple, similar, or physically close jobs means less supervision required Complex, dissimilar, distant jobs means more supervision is required 3. Rate of change of activities and personnel: Rapidly changing situations and personnel require greater supervision. 4. Clarity of instruction and delegation: Clearly defined, described, and delegated work requires less supervision. 5. Staff Assistance: The existence of support staff and their ability affect level of required supervision.  Controlling  Larger Spans of Control (20 – 30 subordinates) leads to:  Reduction in administrative costs  More effective and efficient organization communication  Faster decisions and interaction between organizational levels  Increased requirement for better training, communication, and education at all levels.  Better leadership at all levels.  Controlling  Classification of Companies: Type Production Volume Worker Skill Equipment Management Stages or small Small General Unit High skill level Organic batches quantities equipment Many stages, Large Moderate skill Specialized Mass Mechanistic large batches quantities level equipment Continuous Large Process High skill level High automation Organic process volume  Controlling  Required Skills of Worker and Employee 1. Visualization: (ability to manipulate mental patterns) 2. Conceptual Thinking (or abstract reasoning) 3. Understanding of processes such as machine fundamentals and machine and material interactions. 4. Statistical understanding (trends, and meaning of data) 5. Oral and Visual Communication 6. Attentiveness 7. Individual Responsibility Little future in industry for the uneducated employee or worker  Human Aspects of Organizing  Staffing: Is the process of finding, attracting, and keeping personnel of the quality and quantity needed to meet organizational goals. The processes to follow are: 1. Identify the nature and number of people needed. a. Job descriptions b. First time staffing c. Replace attrition or hire for new needs: New hires = need – personnel on hand + attrition 2. Plan how to get them.  Human Aspects of Organizing  Staffing: 3. Select the best applicants a. Selection criteria i. Required experience ii.Needed qualifications iii.Needed skills b. Selection tests c. Interviews 4. Orient and train them. a. Orient on basic organizational activities and processes b. Train according to job needs c. Train for development  Human Aspects of Organizing  Staffing: 5. Evaluate their performance a. Performance Management and Appraisal: Based on organizational needs i. End of year ii.Continuous iii.For promotion iv.For pay increase v.For development 6. Compensate adequately a. Financial b. Promotion  Human Aspects of Organizing  Power: There are essentially 5 sources of power: 1. Legitimate Power: Stemming from one’s position as leader. 2. Reward Power: Stemming from one’s ability to “reward” others for their cooperation. 3. Coercive or Punishment Power: Stemming from the fear of one’s ability to punish. 4. Expert Power: Stemming from an individual’s capability and reputation. 5. Referent Power: Stemming from the charisma of an individual, or the desire to emulate a specific trait or behavior in that person.  Human Aspects of Organizing  Delegation:  Assignment: Whereby a task or activity is assigned to a subordinate.  Delegation: Whereby the authority to perform the task or activity is given to the subordinate.  Accountability: Whereby the subordinate is held accountable for fulfilling his assigned tasks or activities. 28 29