ENGINEERING MANAGEMENT

LECTURE 1
HUMA FAWAD
FEB –JUNE 2016
MANAGEMEMT
Management: The process of achieving organizational
goals by using its resources by four functions of
management

Organizations: People working together, coordinating

their actions to achieve specific goals.
Goal: A desired future target that an organization seeks to
achieve.
ENGINEERING MANAGEMENT
 Engineering Management is a specialized form
of management that is concerned with the
application of engineering principles to business
practice.

 Areas: Product development, manufacturing,

construction, industrial engineering, technology
and business unit which deals with employees
who perform an engineering or management
function and covers wide variety of fields like
accounting, economics, mathematical modeling,
project management, six sigma and management
principles etc.
 ORGANIZATIONAL OBJECTIVE
 Efficiency: Level of performance where you can
get maximum output with least input – doing
things rightly.

 Effectiveness: A measure of the appropriateness

of the goals chosen and the degree to which they
are achieved – doing the right thing
MANAGEMENT PROCESS
PLANNING
Planning is the process used by managers to
identify and select appropriate goals and how to
achieve these goals.

Feasibility analysis, business plans, programs ,

projects, budgets, policies, rules, standard operating
procedure

Planning Process:

GOAL
MISSION GOALS PLANS ATTAINMENT
ORGANIZING
 This function focuses on allocating and arranging
resources both human and non humans so as
plans can be implemented

 Create the structure of working relationships

between organizational members that best allows
them to work together and achieve goals.
 Managers will group people into departments
according to the tasks performed.
 Managers will also lay out lines of authority and
responsibility for members.
 All non human resources would be arranged and
made available
 LEADING
 The process of influencing others to engage in work
behaviour necessary to achieve organizational
goals.
 Managers determine direction, state a clear vision
for employees to follow, and help employees
understand the role they play in attaining goals.
 Leadership involves a manager using power,
influence, vision, persuasion, and communication
skills.
 The outcome of the leading function is a high level
of motivation and commitment from employees to
the organization.
 CONTROLLING
 Process of regulating organizational activities so that
actual performance confirmd to expected standards
and goals.
 Managers will monitor individuals, departments, and
the organization to determine if desired performance
has been reached
 Managers evaluate how well the organization is
achieving its goals and takes corrective action to
improve performance.
 The outcome of the controlling function is the
accurate measurement of performance and regulation
of efficiency and effectiveness.
 MANAGERIAL LEVEL
 Organizations often have 3 levels of managers:
First-line Managers: responsible for day-to-day
operation. They supervise the people performing
the activities required to make the good or
service.
Middle Managers: Supervise first-line managers.
They are also responsible to find the best way to
use departmental resources to achieve goals.
Top Managers: Responsible for the performance of
all departments and have cross-departmental
responsibility. They establish organizational goals
and monitor middle managers.
MANAGERIAL LEVELS

Top
Top
Managers
Managers
Middle
Middle
Managers
Managers
First-line
First-lineManagers
Managers

Non-management
 MANAGERIAL SKILLS
Three skill sets that managers need to perform
effectively.
1. Conceptual skills: the ability to analyze and
diagnose a situation and find the cause and
effect.
2. Human skills: the ability to understand,
alter, lead, and control people’s behavior.
3. Technical skills: the job-specific knowledge
required to perform a task. Common examples
include marketing, accounting, and
manufacturing.
All three skills are enhanced through formal
training, reading, and practice
MANAGERIAL SKILLS REQUIRED

Top
Managers

Middle
Managers

Line
Managers

Conceptual Human Technical

MANAGERIAL FUNCTIONS AT
MANAGERIAL LEVELS
MANAGERIAL ROLE BY MINTZBERG
MANAGEMENT THEORIES
PRECLASSICAL VIEWPOINT
 Robert Owen – Advocate Concern for the
working and living conditions of workers –
British entrepreneur
 Charles Babbage – English Mathematician –
built first mechanical calculator and prototype of
modern computer predicted the specialization of
mental work and suggested profit sharing
 Henry R Towne – A mechanical engineer, her
outlined the importance of management as a
science and called for the development of
management principles.
CLASSICAL VIEWPOINT
 Scientific Management – This approach focuses on
scientific study of work methods to improve worker
efficiency. Frederik Winslow Taylor, Gilberths, Henry
Gantt were main contributors
 Bureaucratic management – This approach saw the
need of an organization to operate rationally rather than
relying on the arbitrary whims of owners and managers
and this approach owes its contributions to the famous
German Sociologist Max Weber.
 Administrative Management – This approach focused
on principles for managers to co-ordinate organizations
internal activities. Henry Fayol- French Industrialist,
Chester Barnard –a statistician
CLASSICAL CONTRIBUTORS -
TAYLOR
CLASSICAL CONTRIBUTORS -
WEBER
 Specialization of Labour – Jobs are broken
down into well defined tasks to let members
know what is expected of them
 Formal Rules and Procedures – Written rules
ensuring uniformity
 Impersonality
 Well-defined Hierarchy – confirms reporting
relationship within the organization
 Career advancement based on merit
CLASSICAL CONTRIBUTORS-
FAYOL
 BEHAVIOURAL VIEWPOINT
 Early behaviorist – Hugo Musterberg a German Psychologist,Follet
advocated power sharing and the process of working together
 The Hawthrone Studies-Group of individuals were tested in Relay
Assembly Test Room
 Human Relations movement -Abraham Maslow a doctorate in
Psychology and Douglas Mc Gregor a doctorate in Industrial
management
 The Behavioral science approach uses scientific approach to
develop theories on human behavior in organizations; it showed
workers as social creature with varied needs to be met on the job.
 QUANTITATIVE VIEWPOINT
 Management Science – increases decisions
effectiveness by using mathematical models and
statistical methods and most commonly named as
Operations research
 Operation Management – responsible for
managing production and delivery management of
products and services. This task covers inventory
management, works scheduling, production
planning, facility location, design and quality
assurance.
 Management Information System - Focussed on
designing and implementing computer based
information systems for use by management.
CONTEMPORARY
 System Theory – approach based in the idea that organizations can
be visualized as systems while a system is a set of interrelated parts
working as a whole in pursuit of common goals. According to this
approach an organization has four major components input,
transformational processes, outputs and feedback from environment.
 Contingency Theory – that appropriate managerial
actions depends on the particular parameters of different
situations & no universal single solution can be applied.
 Theory Z, Japanese Management Approach increasing
managerial effectiveness like giving workers security,
making them part of decision making, emphasizing group
responsibilities, raising quality, setting up gradual
advancement policies, more informal control and
increased concerns for employees both work/non work.
Applied at Ford Motor Company, Hewlett Pickard and
Intel.
 The Total Quality Philosophy – collective responsibility
for product/service quality and encouraging individuals
to work together to improve quality.
MAIN CONTRIBUTIONS BY DIFFERENT
THEORIES