Introduction to Engineering Management 2

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    Introduction to EngineeringIntroduction to Engineering

    ManagementManagement

    By::By::Harsha KaurHarsha Kaur

    Faculty, IETEFaculty, IETE

    [email protected]@gmail.com

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    Definition of Engineering.Definition of Engineering.

    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 materialsand forces of the nature for the benefit of mankind.

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    What is Management?What is Management?

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    Is Management art or Science?Is Management art or Science?

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    There are several answers to the question,There are several answers to the question,

    and for a very good reason there is noand for a very good reason there is no

    single answer.single answer.

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    Neither or both!Neither or both!

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    ManagementManagement is the use of techniques,is the use of techniques,

    based on measures, artfully applied.based on measures, artfully applied.

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    There is a saying:There is a saying:

    there are those who do things(workers) andthere are those who do things(workers) and

    those who talk about things(managers)those who talk about things(managers)

    This is not trueThis is not true

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    A more accurate statement would be :A more accurate statement would be :

    there are those who do things and thosethere are those who do things and those

    who get things donewho get things done

    This is what is certainly the case in modernThis is what is certainly the case in modern

    industry.industry.

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    To young engineers or scientists,To young engineers or scientists,

    management is something they do,management is something they do,

    a world full of timea world full of time--wasting effort spentwasting effort spentmainly on covering up ones mistakes andmainly on covering up ones mistakes and

    stabbing peers in the back in a bid tostabbing peers in the back in a bid to

    reach the top of the corporate ladder.reach the top of the corporate ladder.

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    In their minds managers behave as shownIn their minds managers behave as shown

    in the flowchart.in the flowchart.

    The alternatives on the chart give theThe alternatives on the chart give the

    impression that mistakes are not toleratedimpression that mistakes are not tolerated

    in a modern organization, and that thein a modern organization, and that the

    opportunity to light a fire under a peeropportunity to light a fire under a peer

    must not be missedmust not be missed

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    Start

    Does itwork?

    Leave itAlone !

    Did you

    fiddlewith it?

    Idiot !

    Did

    AnyoneSee you?

    PhewRun for

    It !

    DidAnyone in yourDepartment

    Fiddle withit?

    Firehim !

    EvenBiggerIdiot !

    Can youTalk your way out

    Of it?Start

    Talking !Resign?

    Goodbye ! You areFired !

    Can youBlame it on a

    RivalDept.

    Go doIt !

    Tryanyway !

    Quit

    Yes

    Yes

    Yes

    Yes

    Yes

    Yes

    Yes

    No

    No

    No

    No

    No

    No

    No

    Impressions of Management Behavior

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    Needless to say,Needless to say,

    This impression of management is incorrect.This impression of management is incorrect.

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    But ThenBut Then

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    What is managementWhat is management

    andand

    how does one become a good manager?how does one become a good manager?

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    The one Golden rule about management isThe one Golden rule about management is

    ThatThat

    There are no Golden rules.There are no Golden rules.

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    There are no rights or wrongs inThere are no rights or wrongs in

    management.management.

    It is not an exact science, like engineering.It is not an exact science, like engineering.

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    In management one cannot predict theIn management one cannot predict the

    result of the sum of two numbersresult of the sum of two numbers

    Case StudyCase Study-- two plus two makestwo plus two makes

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    The History of ManagementThe History of Management

    The practices of engineering andThe practices of engineering and

    management may be considered to havemanagement may be considered to have

    grown hand in hand.grown hand in hand.

    However, as a profession, management isHowever, as a profession, management is

    relatively new.relatively new.

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    In the UK, the IEE set up a professional group onIn the UK, the IEE set up a professional group onEngineering Management in 1970, which was almostEngineering Management in 1970, which was almost

    one hundred years after the IEE itself was founded.one hundred years after the IEE itself was founded.Management theory was first popularized in the USAManagement theory was first popularized in the USAand spread slowly to Europe.and spread slowly to Europe.

    The first business school was founded at the UniversityThe first business school was founded at the Universityof Philadelphia in 1881 and a hundred years later thereof Philadelphia in 1881 and a hundred years later there

    were over 500 business schools in the USA.were over 500 business schools in the USA.By contrast the first two British business schools wereBy contrast the first two British business schools wereformed in 1965, in London and Manchester.formed in 1965, in London and Manchester.

    The American Management Association (AMA) wasThe American Management Association (AMA) was

    founded in 1923 and in the UK the Institute offounded in 1923 and in the UK the Institute ofManagement (formerly the British Institute ofManagement (formerly the British Institute ofManagement) was formed in 1948.Management) was formed in 1948.

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    Management techniques have also changed over theManagement techniques have also changed over theyears, emphasis on different techniques being largelyyears, emphasis on different techniques being largelydictated by the industrial scene at the time.dictated by the industrial scene at the time.

    The postThe post--war period saw a steady expansion in thewar period saw a steady expansion in thedeveloped countries, and the emphasis was ondeveloped countries, and the emphasis was oncorporate planning for growth.corporate planning for growth.

    The techniques used were simplistic and assumed thatThe techniques used were simplistic and assumed thatthe future would continue to grow in a similar pattern tothe future would continue to grow in a similar pattern to

    the past.the past.This period also saw the application of operationalThis period also saw the application of operationalresearch (OR) techniques to many things.research (OR) techniques to many things.

    ShortShort--term payback became the key consideration,notterm payback became the key consideration,notlonglong--term growth.term growth.

    Recent years have shown characteristics that includeRecent years have shown characteristics that includethose of both the above periods, following the industrialthose of both the above periods, following the industrialcycles of growth and consolidation.cycles of growth and consolidation.

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    Management LevelsManagement Levels

    Management levels can be considered asManagement levels can be considered as

    those that are shown on organizationthose that are shown on organization

    charts; line and staff management; andcharts; line and staff management; and

    corporate and divisional management.corporate and divisional management.

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    The Management wheel of communications, showing theThe Management wheel of communications, showing theinteraction between various levels of managementinteraction between various levels of managementwithin an organization is :within an organization is :

    Own Manager

    Peers

    Own Subordinates

    Subordinates Subordinate

    Other Subordinates

    Peers

    Other Managers

    Managers Manager

    Self

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    Communication can occur to any number of levels up or down theCommunication can occur to any number of levels up or down theorganization, but the most frequent communication is limited to two levels.organization, but the most frequent communication is limited to two levels.

    Communication upwards also occurs with other managers who are at theCommunication upwards also occurs with other managers who are at thesame level as the persons own manager.same level as the persons own manager.

    There will be numerous peers, both within the same function and withinThere will be numerous peers, both within the same function and withindifferent functions.different functions.

    Similarly, down the chain there are likely to be subordinates andSimilarly, down the chain there are likely to be subordinates andsubordinates subordinate.subordinates subordinate.

    Communication radiate back and forth like spokes in the organizationalCommunication radiate back and forth like spokes in the organizationalwheel.wheel.

    All these interactions need to be managed, not only those that occurAll these interactions need to be managed, not only those that occur

    between a manager and a subordinate.between a manager and a subordinate.

    Usually, as managers progress up the corporate ladder, they will zigzagUsually, as managers progress up the corporate ladder, they will zigzagthrough the organization; very rarely does one move vertically upwards,through the organization; very rarely does one move vertically upwards,taking over ones managers job.taking over ones managers job.

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    Management StylesManagement Styles

    There are many different managementThere are many different management

    styles.styles.

    The style used is often determined by theThe style used is often determined by thepersonality of the manager concerned andpersonality of the manager concerned and

    this can vary through every shadethis can vary through every shade

    between black and white.between black and white.

    A manager often displays many of theA manager often displays many of the

    attributes of these styles.attributes of these styles.

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    Style 1 :Style 1 :-- AdministratorsAdministrators

    Administrators look to company rules and regulations for solving allAdministrators look to company rules and regulations for solving allproblems.problems.

    They live by the book and are usually very good employees.They live by the book and are usually very good employees.

    They show total loyalty to the organization and have probably been with theThey show total loyalty to the organization and have probably been with thecompany for many years.company for many years.

    They are very formal in their approach and work with strict lines ofThey are very formal in their approach and work with strict lines of

    demarcation between departments and functions.demarcation between departments and functions.They are usually not very good communicators, using the official companyThey are usually not very good communicators, using the official companychannels for all communications.channels for all communications.

    They protect their department and status and look after their staff.They protect their department and status and look after their staff.

    They are not good at resolving conflict, looking to company rules forThey are not good at resolving conflict, looking to company rules forresolving these.resolving these.

    Administrators expect everything to be black or white, nd for practicalAdministrators expect everything to be black or white, nd for practical

    situations to match theory.situations to match theory.They are very logical and practical and have good planning skills.They are very logical and practical and have good planning skills.

    In spite of their mechanistic approach, they are generally respected by theirIn spite of their mechanistic approach, they are generally respected by theirstaff, and by peers, for their organizational loyalty and knowledge.staff, and by peers, for their organizational loyalty and knowledge.

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    Style 2 :Style 2 :-- Time ServersTime Servers

    These are generally older managers, who have lost interest in their job andThese are generally older managers, who have lost interest in their job andenvironment, and are marking time until retirement or moving to another job.environment, and are marking time until retirement or moving to another job.

    They take all necessary actions to avoid stress, and maintain a low profileThey take all necessary actions to avoid stress, and maintain a low profilewithin the company.within the company.

    Their low personal motivation is reflected in the people who report to them.Their low personal motivation is reflected in the people who report to them.

    Although these managers are not generally lazy, their low motivation meansAlthough these managers are not generally lazy, their low motivation meansthat they do the minimum amount of work needed to hold down a job.that they do the minimum amount of work needed to hold down a job.Decisions are avoided since they could lead to mistakes.Decisions are avoided since they could lead to mistakes.

    Personal status is very important to them.Personal status is very important to them.

    Time servers usually have good management experience, and if motivatedTime servers usually have good management experience, and if motivatedcan become a very valuable asset to the organization.can become a very valuable asset to the organization.

    They understand people and can build an effective team if they try. TheyThey understand people and can build an effective team if they try. They

    often consider themselves to be father or mother figures.often consider themselves to be father or mother figures.They recognize achievements in others and are ready to acknowledgeThey recognize achievements in others and are ready to acknowledgethem.them.

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    Style 3 :Style 3 :-- ClimbersClimbers

    These managers are driven by extreme personal ambition and willThese managers are driven by extreme personal ambition and willsacrifice everything, including self and family, to get to the top of thesacrifice everything, including self and family, to get to the top of thecorporate ladder.corporate ladder.

    They want to achieve and to be seen to have achieved, especiallyThey want to achieve and to be seen to have achieved, especiallyby those in a superior position.by those in a superior position.

    Climbers will pursue personal advancement by fair means or foul.Climbers will pursue personal advancement by fair means or foul.However, they become demotivated if this does not show quickHowever, they become demotivated if this does not show quickresults, and this can eventually lead to stress.results, and this can eventually lead to stress.

    Personal knowledge is very important to them, as a means forPersonal knowledge is very important to them, as a means foradvancement, and they will learn from their staff, pushingadvancement, and they will learn from their staff, pushingthemselves at their staffs expense, if it suits them.themselves at their staffs expense, if it suits them.

    Climbers look after those reporting to them, knowing that they areClimbers look after those reporting to them, knowing that they aremeasured on the output from their department.measured on the output from their department.

    Self interests come before those of organization, and peers will beSelf interests come before those of organization, and peers will befought in order to gain an advantage and to build an empire.fought in order to gain an advantage and to build an empire.

    Status is important, but only as a sign of seniority.Status is important, but only as a sign of seniority.

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    Style 4 :Style 4 :-- GeneralsGenerals

    This is generally a younger person who exhibits lots of energy.This is generally a younger person who exhibits lots of energy.

    The General likes to rule and manipulate power, but is achievementThe General likes to rule and manipulate power, but is achievementoriented: power is used to get tasks done.oriented: power is used to get tasks done.

    Generals work extremely hard, driving themselves and those underGenerals work extremely hard, driving themselves and those underthem.them.

    Generals are sociable and mix well at all levels.Generals are sociable and mix well at all levels.They usually get their way with peers by overwhelming them,They usually get their way with peers by overwhelming them,although peers can resent this if it is done too often.although peers can resent this if it is done too often.

    Status is important to Generals, but for the luxury associated with it,Status is important to Generals, but for the luxury associated with it,not as a symbol of seniority.not as a symbol of seniority.

    They are strongThey are strong--willed individuals, often with the samewilled individuals, often with the same

    characteristics as a selfcharacteristics as a self--made entrepreneur.made entrepreneur.Usually they are optimistic about the future, sometimes wrongly.Usually they are optimistic about the future, sometimes wrongly.

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    Style 5 :Style 5 :-- SupportersSupporters

    Supporters maintain a balanced view about the world, the organization, subordinatesSupporters maintain a balanced view about the world, the organization, subordinatesand themselves.and themselves.

    They are usually experienced managers who are knowledgeable in managementThey are usually experienced managers who are knowledgeable in managementtechniques and apply them where they can.techniques and apply them where they can.

    Supporters work through people in achieving their aims.Supporters work through people in achieving their aims.

    They are good at delegation and develop their subordinates by giving themThey are good at delegation and develop their subordinates by giving themresponsibility.responsibility.

    The people working under them are highly motivated.The people working under them are highly motivated.

    Supporters personal technical knowledge is usually lacking, but this is compensatedSupporters personal technical knowledge is usually lacking, but this is compensatedfor by the support they themselves receive from the specialists within theirfor by the support they themselves receive from the specialists within theirdepartment.department.

    Supporters are good facilitators and very good at managing change.Supporters are good facilitators and very good at managing change.

    They are achievement and reward it.They are achievement and reward it.

    They are deep thinkers and have excellent imagination.They are deep thinkers and have excellent imagination.

    Often this can lead to a clash between the goals of the organization and what theyOften this can lead to a clash between the goals of the organization and what they

    believe to be right.believe to be right.However, Supporters are good compromisers and exhibit effective intuition.However, Supporters are good compromisers and exhibit effective intuition.

    They are flexible but very persistent in carrying out tasks which they believe need toThey are flexible but very persistent in carrying out tasks which they believe need tobe done.be done.

    They can handle stress.They can handle stress.

    Supporters tend to be loners and do not mix well with peers. This means that theySupporters tend to be loners and do not mix well with peers. This means that theycan often miss out on information from the grapevine, so that they are not always wellcan often miss out on information from the grapevine, so that they are not always wellbriefed on organizational matters.briefed on organizational matters.

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    Style 6 :Style 6 :-- Nice GuysNice Guys

    These managers are usually weakThese managers are usually weak--willed and are more interested inwilled and are more interested inbeing liked, by peers and subordinates, than in achieving targets.being liked, by peers and subordinates, than in achieving targets.

    They do not criticize their subordinates, even when they are poorThey do not criticize their subordinates, even when they are poorperformers, and may in fact support them too much, soperformers, and may in fact support them too much, so

    unconsciously retarding their development.unconsciously retarding their development.

    The productivity of the group under the Nice guy is low and conflictThe productivity of the group under the Nice guy is low and conflictoften simmers under the surface, waiting to burst out. When it doesoften simmers under the surface, waiting to burst out. When it doesthe manager does not know how to handle it.the manager does not know how to handle it.

    Very few decisions are made and usually they are very poor, sinceVery few decisions are made and usually they are very poor, sincethe manager is ready to yield to pressure from almost any source.the manager is ready to yield to pressure from almost any source.

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    Style 7 :Style 7 :-- BossesBosses

    These managers are bullies !These managers are bullies !They like to have their own way and bully their staff in order to enhance their ownThey like to have their own way and bully their staff in order to enhance their ownsense of power.sense of power.

    They are a living example of the effect of power on people.They are a living example of the effect of power on people.

    Bosses occur at every level, often quite low within the organization.Bosses occur at every level, often quite low within the organization.

    They operate in Administrative mode, playing things by book where it suits them.They operate in Administrative mode, playing things by book where it suits them.

    They use the power of their position, real and imaginary.They use the power of their position, real and imaginary.

    They drive the people under them but not themselves.They drive the people under them but not themselves.Thy expect recognition from peers, but often do not get it.Thy expect recognition from peers, but often do not get it.

    Bosses are extremely inflexible and are often mistaken for strongBosses are extremely inflexible and are often mistaken for strong--minded people.minded people.

    Usually, however, they are only strong talkers, and hide behind abusive language.Usually, however, they are only strong talkers, and hide behind abusive language.

    They try to terrorize subordinates and peers, creating conflict to emphasize their ownThey try to terrorize subordinates and peers, creating conflict to emphasize their ownpower.power.

    Managers in the Bosses category can show shortManagers in the Bosses category can show short--term results, but in longterm results, but in long--term theyterm theyare very destructive, causing more harm then good.are very destructive, causing more harm then good.

    They are insecure in themselves and get security by humiliating others in public.They are insecure in themselves and get security by humiliating others in public.They advance by pointing out the mistakes of others, and not by their ownThey advance by pointing out the mistakes of others, and not by their ownachievements.achievements.

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    Seven Styles of ManagementSeven Styles of Management

    AdministratorsAdministrators

    Time ServersTime Servers

    ClimbersClimbersGeneralsGenerals

    SupportersSupporters

    Nice GuysNice GuysBossesBosses

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    Management ResponsibilitiesManagement Responsibilities

    The functions that a manager performs areThe functions that a manager performs arecomplex, which is partly why it is so difficult tocomplex, which is partly why it is so difficult todefine and record them accurately.define and record them accurately.

    This is not surprising, since managers areThis is not surprising, since managers arepeople whose main task is to deal with otherpeople whose main task is to deal with otherpeople, and human behavior is complex andpeople, and human behavior is complex anddifficult to predict.difficult to predict.

    Generally, managers operate in an environmentGenerally, managers operate in an environmentin which they voluntarily accept certainin which they voluntarily accept certainresponsibilities as part of their jobs, while beingresponsibilities as part of their jobs, while beingconstrained by other factors.constrained by other factors.

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    Management Responsibilities andManagement Responsibilities and

    ConstraintsConstraints

    Shareholders

    Management

    Employees

    Community

    Suppliers

    Customers

    Competitors

    Creditors

    Pressure

    Groups

    Governments

    Natural

    Environment

    Labour

    Market

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    ShareholdersShareholders

    Mangers have responsibility to the shareholders of the organization inMangers have responsibility to the shareholders of the organization inwhich they work. These shareholders have invested their money inwhich they work. These shareholders have invested their money in

    the corporation and they expect to receive a return for this,the corporation and they expect to receive a return for this,measured in terms of dividends and growth.measured in terms of dividends and growth.

    EmployeesEmployees

    Employees of the company are also the managers responsibility, evenEmployees of the company are also the managers responsibility, eventhough managers are themselves employees of the samethough managers are themselves employees of the same

    organization. Employees expect rewards for their labour, goodorganization. Employees expect rewards for their labour, goodworking conditions, and a job that meets their career aspirations.working conditions, and a job that meets their career aspirations.

    CustomersCustomers

    It is customers who make it possible for the organization to exist.It is customers who make it possible for the organization to exist.Customers expect to receive the goods they need at the right priceCustomers expect to receive the goods they need at the right price

    and at right time.and at right time.

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    Types of CustomersTypes of Customers

    There are two distinct and important type of customers::There are two distinct and important type of customers::

    ExternalExternal

    External customers are those who buy the companys products, andExternal customers are those who buy the companys products, andare the ones usually thought of when the term customer is used.are the ones usually thought of when the term customer is used.

    InternalInternal

    Internal customers are those who depend on the manager and his orInternal customers are those who depend on the manager and his orher department to provide a product or service to which they canher department to provide a product or service to which they canadd value before it reaches the external customer.add value before it reaches the external customer.

    For exampleFor example Manufacturing is dependent on Marketing for productManufacturing is dependent on Marketing for product

    related information, and Marketing requires product manufacturingrelated information, and Marketing requires product manufacturingcosts from the Manufacturing dept.costs from the Manufacturing dept.

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    SuppliersSuppliers

    Managers also have the responsibility of ensuring that the suppliers areManagers also have the responsibility of ensuring that the suppliers arekept fully informed of the companys future plans and requirements,kept fully informed of the companys future plans and requirements,so that they can plan their workload as the relationship between theso that they can plan their workload as the relationship between theorganization and its suppliers is also very vital. In addition, suppliersorganization and its suppliers is also very vital. In addition, suppliersexpect prompt payment for their goods or services; they also have toexpect prompt payment for their goods or services; they also have togenerate profits and growth for their own shareholders.generate profits and growth for their own shareholders.

    CommunityCommunityManagers have a responsibility to the community in which theirManagers have a responsibility to the community in which their

    company operates. This is especially the case if it is a largecompany operates. This is especially the case if it is a largeorganization and, as such, the major employer in the region. Theorganization and, as such, the major employer in the region. Theorganization must ensure that all the environment is protected andorganization must ensure that all the environment is protected andthe employment balance maintained. In addition, managers shouldthe employment balance maintained. In addition, managers should

    look at other ways in which the community can be supported, suchlook at other ways in which the community can be supported, suchas staff visits to local colleges and community work.as staff visits to local colleges and community work.

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    Factors that impede managers in their tasksFactors that impede managers in their tasks

    are ::are ::

    CompetitorsCompetitors

    CompetitorActivity can result in loss of market share and revenues, althoughCompetitorActivity can result in loss of market share and revenues, althoughcompetition can sometimes have the effect of forcing the organization tocompetition can sometimes have the effect of forcing the organization tobecome more efficient to meet this threat. Competitors can also help tobecome more efficient to meet this threat. Competitors can also help togrow a market, so that although market share falls the actual revenue maygrow a market, so that although market share falls the actual revenue mayincrease.increase.

    GovernmentsGovernments

    Governments act as a constraints in two ways :Governments act as a constraints in two ways :-- direct and indirect action.direct and indirect action.Direct action covers regulations imposed on the company such as by healthDirect action covers regulations imposed on the company such as by healthand safety acts; by the taxes on profits, etc. Indirect action is the effect thatand safety acts; by the taxes on profits, etc. Indirect action is the effect thatthe government has on currency fluctuations and on interest rates.the government has on currency fluctuations and on interest rates.

    Labour marketLabour marketThe labour market can be a severe constraint, especially as there is so often aThe labour market can be a severe constraint, especially as there is so often a

    shortage of skilled staff just when a manager is trying to get a new projectshortage of skilled staff just when a manager is trying to get a new projectoff the ground.off the ground.

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    Pressure groupsPressure groups

    There are many pressure groups, all of whom strive to influence the manager so that theThere are many pressure groups, all of whom strive to influence the manager so that theaims of their members are met. These include environmental groups, which act out ofaims of their members are met. These include environmental groups, which act out of

    community spirit, and trade and user organizations, which re concerned withcommunity spirit, and trade and user organizations, which re concerned withobtaining the best products, services and prices for their members.obtaining the best products, services and prices for their members.

    Natural EnvironmentNatural Environment

    The manager has very little control over natural environment, the acts of God, the fireThe manager has very little control over natural environment, the acts of God, the firethat closes down production for a week, or the rain which disrupts the traffic andthat closes down production for a week, or the rain which disrupts the traffic andprevents workers from reaching their workplace. However, the natural environmentprevents workers from reaching their workplace. However, the natural environmentalso presents opportunities, such as the unexpected cold peiod that increases thealso presents opportunities, such as the unexpected cold peiod that increases thesale of electric heaters.sale of electric heaters.

    CreditorsCreditors

    Finally, most organizations fund part of their growth or operations by borrowing on theFinally, most organizations fund part of their growth or operations by borrowing on themarket and are restricted by their creditors, who wish to obtain shortmarket and are restricted by their creditors, who wish to obtain short--term returns onterm returns ontheir loans. In addition, a company has indirct creditors, such as the payment it owestheir loans. In addition, a company has indirct creditors, such as the payment it owesto its supplier for goods already received and invoiced.to its supplier for goods already received and invoiced.

    The importance of all these constraints changes with time.

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    Management Tasks/FunctionsManagement Tasks/Functions

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    Management as a processManagement as a process

    MEN

    MATERIALS

    MACHINERY

    MONEY

    GOODS

    SERVICES

    PROFIT

    PRODUCTIVITY

    CUSTOMER

    SATISFACTIONCONTROLLING

    PLANNING ORGANIZING STAFFING DIRECTING

    In the early part of 20th century, a French industrialist wrote that all managers

    perform five main management functions : They plan, organize, command,

    Coordinate and control.

    Today we have four : PLANNING, ORGANIZING, LEADING and

    CONTROLLING.

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    PLANNINGPLANNING

    The Planning functionThe Planning functionencompasses ::encompasses ::

    defining andefining anorganization goals,organization goals,

    establishing anestablishing anoverall strategy foroverall strategy forachieving those goals,achieving those goals,

    and developing aand developing acomprehensive set ofcomprehensive set ofplans to integrate andplans to integrate andcoordinate activities.coordinate activities.

    Plan ofAction

    Individual goals

    Departmental goals

    Divisional goals

    Corporate goals

    Strategic Plan

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    Two of the key items to be covered in planning phase are::Two of the key items to be covered in planning phase are::The to changeThe to change

    And the process for changeAnd the process for change

    A business must continually adapt to a changingA business must continually adapt to a changingenvironment, such as changing in the political scene, inenvironment, such as changing in the political scene, inlegislation and even in its own goals.legislation and even in its own goals.

    Furthermore, it is essential that the manager is proactive,Furthermore, it is essential that the manager is proactive,

    foreseeing change and taking early action, rather thanforeseeing change and taking early action, rather thanreacting to change.reacting to change.

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    ORGANIZINGORGANIZING

    Managers are also responsible for designing anManagers are also responsible for designing anorganizations structure . We call this function organizingorganizations structure . We call this function organizing. It includes determining what tasks are to be done , who. It includes determining what tasks are to be done , whois to do them , how the tasks are to be grouped , whois to do them , how the tasks are to be grouped , who

    reports to whom , and where decisions are to be made .reports to whom , and where decisions are to be made .Jobs and responsibilities need to be clearly defined .Jobs and responsibilities need to be clearly defined .

    The organization needed to carry out the plan of action isThe organization needed to carry out the plan of action issetup; people are recruited , teams established and teamsetup; people are recruited , teams established and teamleaders appointed .leaders appointed .

    Effective delegation is important in this phase as it is inEffective delegation is important in this phase as it is inevery other phase of a managers activity .every other phase of a managers activity .

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    INTEGRATINGINTEGRATING

    The integration phase normally occupies the longestThe integration phase normally occupies the longesttime . During the phase the plan of action is carried outtime . During the phase the plan of action is carried outto achieve the companys goal .to achieve the companys goal .

    It is important that , in spite of the pressures on their timeIt is important that , in spite of the pressures on their time, managers are able to see the whole picture ,, managers are able to see the whole picture ,differentiating the wood from the trees , so that correctdifferentiating the wood from the trees , so that correctdecisions can be made . The problem is obtainingdecisions can be made . The problem is obtainingaccurate information on which to base a decision .accurate information on which to base a decision .

    Throughout the implementation phase the managerThroughout the implementation phase the managerneeds to ensure that the eventual goals are keptneeds to ensure that the eventual goals are kept

    continually in front of the team and they are motivated tocontinually in front of the team and they are motivated toachieve them . Their teams are the most valuableachieve them . Their teams are the most valuableresource that managers have and they must ensure andresource that managers have and they must ensure andthey must ensure their maximum efficiency .they must ensure their maximum efficiency .

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    MONITORINGMONITORING

    The final function managers perform is controlling . To ensure thatThe final function managers perform is controlling . To ensure thatthings are going as they should , management must monitor thethings are going as they should , management must monitor theorganizations performance . Actual performance must be comparedorganizations performance . Actual performance must be comparedwith the previously set goals . If there are any significant deviations ,with the previously set goals . If there are any significant deviations ,its managements job is to get the organization back on track . Thisits managements job is to get the organization back on track . Thismonitoring , comparing and potential correcting is what is meant bymonitoring , comparing and potential correcting is what is meant by

    the controlling function .the controlling function .Several items need t be monitored and controlled during the life ofSeveral items need t be monitored and controlled during the life ofthe project such as:the project such as:

    The costs , which include salaries , expenses and capital .The costs , which include salaries , expenses and capital .

    The use of skills and specialized equipment .The use of skills and specialized equipment .

    Progress on the project , measured on a timeProgress on the project , measured on a time--scale .scale .

    The quality of the product .The quality of the product .