week2_introduction to engineering management.pdf

Chapter 1 – Introduction to Engineering Management ENEMAN20 – Engineering Management Learning Objectives At the end of the session, the students shall be able to: Discuss the 14 principles of management Explain the four (4) management functions Engineering Engineering is the profession in...

Chapter 1 – Introduction to Engineering Management ENEMAN20 – Engineering Management Learning Objectives At the end of the session, the students shall be able to: Discuss the 14 principles of management Explain the four (4) management functions Engineering Engineering is the profession in which a knowledge of the mathematical and natural sciences, gained by study, experience, and practice, is applied with judgment, to develop ways to utilize, economically, the materials and forces of nature for the benefit of mankind. Management The word “Management” originates from Old French ménagement “the art of conducting, directing”, and from Latin manuagere “to lead by the hand”) Management characterizes the process of leading and directing all or part of an organization, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible).  Engineering management refers to the functional management of technical professionals. Engineering Example areas of engineering are product development, manufacturing, construction, design engineering, industrial engineering, technology, Management production, or any other field that employs personnel who perform an engineering function. Henry Fayol (1841-1925) “managerial excellence is a technically ability and can be acquired” “management was a separate and distinct skill from other business function” This is the principle of specialization which applies to all kinds of work. The more people specialize, the more efficiently they can perform their work. Specialization increases output by making employees more efficient. According to Fayol responsibility is a corollary and a natural consequence of authority. Responsibility implies an obligation to perform the task in a satisfactory manner.  Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organization’s rules and the judicious use of penalties for violation of the rules. Every employees should receive order and instruction from only one superior. Dual command is a perpetual source of conflict. If a person receives order from more than one superior, it would lead to confusion and chaos.  This principle calls for one manager one plan for all operations having the same objectives. This principle when applied properly, ensure unity of action and facilitates coordination. The interest of the organization is above the individual and the group. This can be achieved when manager set an example through their exemplary behaviour. They must be prepared to sacrifice their personal Workers should be paid a fair wages for their service. The method of wage payment should provide maximum possible satisfaction to both employees and employer. Whether decision making is centralized (to management) or decentralized (to subordinates) is a matter of proper proportion. The graded chain of authority from top to bottom through which all communication flow is formed the “Scalar Chain”. People and material should be in the right place at the right time. A place for everything and everything in its place. Manager should be both friendly and fair to their subordinates. Employees should be justice and kindness promotes better relation between employees and employer. Management must implement practice which encourages long term commitment of employees. Instability of tenure can significantly affect the fortunes of a company. Employees must be encouraged to think and implement a plan of action even through some mistake may result. The opportunity to perform independently is an essential component of employee growth and development. This principle state that “Union is Strength”. Fayol defined esprit de corps as unity of effort through harmony of interest. Promoting team sprit will give the organization a sense of unity. Managers are responsible for achieving the goals and objectives of an organisation through managing its resources (human, financial, and operational). Management Functions Planning Organizing Staffing Directing/Leading Controlling Planning It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals.  Organizing It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. Organizing To organize a business involves determining and providing human and non-human resources to the organizational structure. Organizing as a process involves: Identification of activities Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships.  Staffing It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc.  The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. Staffing involves: Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place). Recruitment, selection & placement. Training & development. Remuneration. Performance appraisal. Promotions & transfer.  Directing / Leading It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction has following elements: Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation- means inspiring, stimulating or encouraging the sub- ordinates with zeal to work. Positive, negative, monetary, non- monetary incentives may be used for this purpose. Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction. Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.  Controlling It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards.  An efficient system of control helps to predict deviations before they actually occur. Therefore controlling has following steps: Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding out deviation if any. Corrective action. QUESTION?