IntroductiontoEngineering Management€¦ · 3/10/1998 · Homemaking is not her cup of tea....

IntroductiontoEngineeringManagement

Lecture 5: Leading

Dr. Mohamed Mourad

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Table of Contents

• Leading - Deciding, Communicating, Motivating, Selecting and Developing

• Deciding - Rational Decision Making, Kepnor-Tregoe Method, Gut Instinct, Group Decisions

• Communicating - Asking, Telling, Listening and Understanding

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Contents (Cont’d)

• Motivating - Inspire, Encourage, Impel

Need-based strategy (Maslow Model)

• Selecting – Focus on hard and soft Skills

• Developing - Performance correction and personal growth

• Special Topics on Leading - Lead Changes, New Leader Strategy, Superior Leadership

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Leadership Style

• 1 - Nice Guy

• 2 - Loser

• 3 - Compromiser

• 4 - Task Master

• 5 - Ideal Manager

Task

4

2 1

3

5

People

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Use of Leadership Style

• No single style fits all situations

• A person’s dominant style is determined by personality traits

• Different leadership styles can be effective with different people at different times

• Advice to engineering managers: Vary style flexibly according to situation at hand in order to be effective

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Leading

• To cause people to take effective actions for attaining organizational goals (willingly)

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Question # 1

• The company’s product promised to a major customer is running late and there was intense pressure on the production team to deliver the product. The Direction of Production was eventually told by the company President to “deliver or else.” The Director therefore decided to ship the product, even though it had not gone through all its testing procedures. Members on the product team were angry by the uncertainty in the functionality and reliability of the shipped product. The Director however insisted: “We will just have to take that chance.” As the Director of Production, how would you act differently?

Response :• The Director should do the following:

• (1) Schedule overtime to conduct as much testing as possible before product shipment.

• (2) Ship the product on time.

• (3) Conduct a risk analysis to identify conceivable failure modes and their respective remedial solutions, based on the best understanding of the production team at this time.

• (4) Get the team prepared to respond to customer's service needs.

• (5) Review causes for product delays and initiate a program to speed up the product development process.

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Question # 2

• As advised by the company President, the Sales Department received a set of specific recommendations produced by an outside management firm to reorganize for maximum effectiveness. The Sales Manager has the hunch that several sales staff may disagree with the recommended changes. The Sales Manager himself is also not fully convinced of the merits of all recommendations. But he wants to implement them, at least in part. How should he proceed?

Response :The Sales Manager should proceed as follows:(1) He should call a staff meeting, explain the need of improving sales effectiveness, discuss the specific recommendations of the management consultants, and solicit the opinion of every one.(2) Discuss the advantages and disadvantages of the recommendations from the viewpoints of the sales staff.(3) Ask for ideas to improve sales effectiveness beyond the consultant's recommendations. Also ask for suggestions on metrics to measure sales effectiveness in order to monitor improvement (e.g., sales dollar per staff, sales growth rate per region, ratio of sales revenue to sales cost, number of sales visits per staff, etc.)(4) At the end of staff meeting, point out to all that a carefulevaluation will be done to include all inputs provided by the sales staff, that a decision on changes will be forthcoming, and that everyone is asked to cooperate in implementing the changes to be announced.(5) Make decisions on the changes to implement, either all or part of consultant's recommendation, with or without modifications based on staff inputs. Select the metrics to measure progress.(6) Report back to the company President and implement the changes.

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The Function of Leading

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Deciding

• To arrive at conclusions and judgements

• To assure that the quality of decisions made remains high

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Types of Decisions

• Spontaneous Decisions - Intuitive, hunch or gut instinct based

• Reasoned Decisions - Based on systematic studies and logical analyses (to the extend possible): (1) Assess facts and evaluate alternatives, (2) Use full mental resources, (3) Emphasize creative problem-solving, (4) Think consistently, (5) Minimize the probability of errors (downside risks)

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Why Decision Making is Difficult?

• Management Problems - Ill-defined, of wide scope, of constantly changing nature, involving people of unpredictable behavior

• Data/Facts - Insufficient, of poor quality, excessive, and not to be analyzed and interpreted in time and within budget

• Impact of decisions - Dependent on people’s opinion, which change in time

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Why Decision Making is Difficult (cont’d) ?

• Nature of Decisions - Compromises among alternatives, with validity changing with time

• Decision Implementation - Affected by consensus and commitment of affected people

• Complexity of Decisions – Critically important decisions involve multiple management levels, thus requiring coordination

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Criteria for Good Decisions

• Achieve stated purpose - correct/change the situation which created the noted problem

• Be feasible to implement - meaningful with respect to resources required and the value created

• Have no or limited adverse consequences -not causing major disasters to unit or company in short- and long-term

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Guidelines for Decision Making

• Study management cases for acquiring close to real-world experience in decision making

• Prioritize problems in need of decisions, skip those with minor significance or impact

• Apply a rational process to guide the decision making process

• Involve those to be impacted by the decision -consensus building foster implementation

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Guidelines for Decision Making

• Make decisions based on incomplete/ uncertain information on hand, assumptions introduced

• Take the necessary risks

• Delay decision making until the last allowable moment, but within the applicable deadlines, avoid making no decision which is a sign of poor leadership

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Who is to Make What Decision?

• Staff

• Staff and Manager

• Manager

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Decisions by Staff

• Techniques to accomplish assigned tasks or projects

• Options to continuously improve current operations and work processes

• Social events - Group picnics, golf outings, Christmas parties, and others

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Decisions by Manager and Staff

• Development needs of staff - conference or seminar attendance, training needs, degree programs, etc.

• Policy and procedure involving staff interactions with other departments

• Team membership - workload balance, personality fit, working relationship, exposure and visibility, sets of skills, etc.

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Decisions by Manager

• Priority of tasks and projects, project or program objectives, budget allocation

• Personnel assignment, work group composition, evaluation, job action

• Administrative – policies, procedures, office space assignment, special exceptions

• Business confidential matters

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Rational Decision Making Process

Assess

Problem

Collect

Facts

Define Real

Problem

Develop

Alternatives

Select

Solution

Implement

Solution

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Rational Decision Making Process

• Assess the apparent problem - based on symptoms observed

• Collect facts - what, how, who, where, when, why, from people who have direct knowledge of the problem at hand : “Management by Walking Around”

• Define the real problem - deviation from norm, performance metrics to measure success

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Rational Decision Making Process (cont’d)

• Develop alternatives to achieve the desired resolution - brainstorming, innovation

• Select optimal solution (logical process, minimizing risks, maximizing probability of success)

• Set course of action to implement decision, by allocating resources, specifying action steps and define target dates of completion

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Kepnor-Tregoe Decision Analysis Tool

• Define decision criteria (necessary criteria and sufficiency criteria)

• Rank-order sufficiency criteria (from 1 to 10)

• Evaluate all options against each sufficiency criteria and eliminate those which flunk the necessary criteria

• Score each surviving option relatively with respect to each sufficiency criteria (from 1 to 10)

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Kepnor-Tregoe Decision Analysis Tool (cont’d)

• Compute a weighted score (multiplying the weight factor of the sufficiency criteria with the relative score of an option and summing up such numerical products for each option)

• Choose the option with the highest weighted score as the best solution to the problem at hand

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CRITERIA WEIGHT FACTOR OPTION A OPTION B OPTION C

Criteria 1 R Go Go Go

Criteria 2 10 4 8 10

Criteria 3 5 6 10 7

Criteria 4 8 10 6 8

Total Weighted Score 150 178 199

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• Decision criteria - both necessary and sufficiency- are externalized

• Relative importance of all sufficiency criteria are rank-ordered

• Chosen criteria are “Mutually Exclusive and Collectively Exhaustive”

• Decision - equitable, rational, comprehensive

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Decisions Not to Make

• Decisions - Not pertinent/applicable to problems at this time

• Decisions - Can not be implemented effectively (business priority, resources constraints, value created)

• Decisions - To be made by others

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Question # 4.3• You have been socially pretty active while in college. You know a few

people over the years. Among many friends, the following three stand out. Liza majors in literature, is very sociable and communicative, and has an average appearance. She does not hate homemaking. Julie, on the other hand, majors in computer engineering, has a very sharp intellect, and is rather strong willed. She is reasonably sociable and has a passable appearance. Homemaking is not her cup of tea. Debbie is the high school sweetheart, very adaptable and lovely, easy going, comfortable to be with, and has a superb appearance. Her social skills are so so. She likes homemaking which is a tradition of her family and she does it well. Your grandfather is getting old and your mother has been bugging you to make up your mind to get married. Time is running out and you need to make a choice. How would you go about deciding for one of these three candidates as a prospective mate.

Response:

• One good way to assist in decision making is to apply the Kepnor-Tregoe method as follows:

• (1) Select a set of decision criteria and assign weight factors to assess relative importance.

• (2) Assign relative scores to all options with respect to a given criteria and repeat the process for all criteria.

• (3) Compute the weighted scores for all options.

• (4) Go for the option with the highest weighted score.

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CRITERIA

WEIGHT

FACTOR LISA JULIE DEBBIE

Physical Appearance

Intellect/Knowledge

Adaptability/Compatibility

Future Earning Power

Perceived Homemaking

Capability

Social Ability

Total Weighted Score

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CRITERIA

WEIGHT


Physical Appearance 9

Intellect/Knowledge 5

Adaptability/Compatibility 9

Future Earning Power 10


Capability 8

Social Ability 10


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CRITERIA

WEIGHT


Physical Appearance 9 5 8 10

Intellect/Knowledge 5

Adaptability/Compatibility 9

Future Earning Power 10


Capability 8

Social Ability 10


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CRITERIA

WEIGHT


Physical Appearance 9 5 8 10

Intellect/Knowledge 5 8 10 5

Adaptability/Compatibility 9 8 5 10

Future Earning Power 10 8 10 5


Capability 8 8 5 10

Social Ability 10 10 8 5

Total Weighted Score 401 387 385

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Other Decision Support Tools

• Forecasting (exponential smoothing, time series)

• Regression Analysis (single-variable, multi variables)

• Risk Analysis (Monte Carlo)

• What -if Solver

• Simulation Modeling

• Decision Trees

• Optimization (linear programming, integer/dynamic programming)

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Decision Making by Gut Instinct

• Spontaneous Decisions - Intuitive solution for complex and ambiguous problems defying systematic analyses (No data)

• Brain Activities - Left-side (logical, rational and conscious) versus right-side (intuitive, subconscious); Innovative ideas surface unexpectedly, due to accumulated “patterns and rules” derived from past experience

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Decision Making by Gut Instinct

• Intuitive decisions can be wrong from time to time, feedback from trusted sources is needed to “recalibrate” patterns and rules frequently

• If repeated, feedback-based learning tends to improve quality of intuitive decisions made in the future

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Decision Making in Teams

• Group dynamics

• Conflict, consideration, closure

• Criteria for good group decisions

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Decision Making in Teams

• Group dynamics - New dimensions to decision making: (1) Coalitions/alliances among team members - position-based advocacy, (2) Conflicts of interests, (3) Personality clash (fighting words, selective seeing, interruptions, personal friction)

• Leadership Role: (1) Managing conflict, (2) Consideration and (3) Closure

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Decision Making in Teams (Cont’d)

• (1) Minimize Conflict – Follow an Inquiry-focused solution-discovery process, not to conduct a position-fighting exercise: (A) Share information, (B) Think critically, (C) Debate ideas rigorously, (D) Check assumption relentlessly, (E) Apply rule of reasoning, and (F) Testing strengths among competing ideas (not competing positions)

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• (2) Show Consideration - Make sure that the “losers” perceive fairness of having their ideas heard and considered: (A) No predetermined solutions, (B) No personal preference of leaders, (C) Listen actively to all ideas - taking notes, asking questions, (D) Explain logic of final decision and why the views of the ‘losers’ were not accepted

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• (3) Manage Closure:

(A) Early Close (group think phenomena) as unstated objections will show up at implementation phase: leader to inject questions and promote additional debate,

(B) Late Closure (endless debate between warring factions, trying to resolve all trivialities just to be fair) - Leader to cut off debate and announce decision

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Decision Making in Teams (cont’d)

• Criteria for good group decisions -

(a) Multiple Alternatives to create

(b) Assumptions to check

(c) Decision criteria to externalize

(d) Dissent and debate to promote

(e) Perceived fairness to assure

Decision Theory

• A general approach to decision making that is suitable to a wide range of operations management decisions

– Capacity planning

– Product and service design

– Equipment selection

– Location planning

Characteristics of Suitable Problems

• Characteristics of decisions that are suitable for using decision theory

– A list of alternatives from which to choose

– A set of possible future conditions that will have a bearing on the results of the decision

– A known payoff for each alternative under each possible future condition

Decision Process• Steps:

1. Identify the problem

2. Specify objectives and criteria for a solution

3. Develop suitable alternatives

4. Analyze and compare alternatives

5. Select the best alternative

6. Implement the solution

7. Monitor to see that the desired result is achieved

• Errors– Failure to recognize the importance of each step

– Skipping a step

– Failure to admit mistakes

Decision Environments

• There are three general environment categories:

– Certainty

• Environment in which relevant parameters have known values

– Risk

• Environment in which certain future events have probable outcomes

– Uncertainty

• Environment in which it is impossible to assess the likelihood of various future events

Decision Making Under Uncertainty

• Decisions are sometimes made under complete uncertainty: No information is available on how likely the various states of nature are.

• At the time a decision is made, the decision maker is uncertain which states of nature will occur in the future and has no control over them.

• A state of nature is an actual event that may occur in the future.

Decision Making Under Uncertainty• Suppose a distribution company is considering

purchasing a computer to increase the number of orders it can process. If economic conditions remain good, the company will realize a large increase in profit; however, if the economy takes a downturn, the company will lose money.

• possible decisions are:

– to purchase the computer and

– to not purchase the computer.

• The states of nature are:

– good economic conditions and

– bad economic conditions.

Decision Making Under Uncertainty• Decision Criteria:

– Maximin

• Choose the alternative with the best of the worst possible payoffs

– Maximax

• Choose the alternative with the best possible payoff

– Laplace

• Choose the alternative with the best average payoff

– Minimax regret

• Choose the alternative that has the least of the worst regrets

Example – Payoff Table

Possible Future Demand

Alternatives Low Moderate High

Small Facility $10 $10 $10

Medium Facility 7 12 12

Large Facility (4) 2 16

• A decision is being made concerning which size facility should be constructed

• The present value (in millions) for each alternative under each state of nature is expressed in the body of the above payoff table

Payoff Table: A table used to show the payoffs that can result from decisions under various states of nature

Example – Maximin CriterionPossible Future Demand





•The worst payoff for each alternative isSmall facility: $10 millionMedium facility $7 millionLarge facility -$4 million

•Choose to construct a small facility

Example – Maximax CriterionPossible Future Demand





•The best payoff for each alternative isSmall facility: $10 millionMedium facility $12 millionLarge facility $16 million

•Choose to construct a large facility

Example – Laplace CriterionPossible Future Demand





•The average payoff for each alternative isSmall facility: (10+10+10)/3 = $10 millionMedium facility (7+12+12)/3 = $10.33 millionLarge facility (-4+2+16)/3 = $4.67 million

•Choose to construct a medium facility

Example – Minimax RegretPossible Future Demand





•Construct a regret (or opportunity loss) table•The difference between a given payoff and the best payoff for a state of nature

Regrets




Large Facility 14 10 0

Example – Minimax RegretRegrets





•Identify the worst regret (i.e. maximum value) for each alternative

•Small facility $6 million•Medium facility $4 million•Large facility $14 million

•Select the alternative with the minimum of the maximum regrets

•Build a medium facility

Decision Making Under Risk

• Decisions made under the condition that the probability of occurrence for each state of nature can be estimated

• A widely applied criterion is expected monetary value (EMV)

– EMV

• Determine the expected payoff of each alternative, and choose the alternative that has the best expected payoff

– This approach is most appropriate when the decision maker is neither risk averse nor risk seeking

Example– EMV Possible Future Demand

Alternatives Low (.30) Moderate (.50) High (.20)




EMVsmall = .30(10) +.50(10) +.20(10) = 10EMVmedium = .30(7) + .50(12) + .20(12) = 10.5EMVlarge = .30(-4) + .50(2) + .20(16) = $3

Build a medium facility

Decision Tree

• Decision tree

– A schematic representation of the available alternatives and their possible consequences

– Useful for analyzing sequential decisions

Decision Tree– Composed of

• Nodes– Decisions – represented by square nodes

– Chance events – represented by circular nodes

• Branches– Alternatives– branches leaving a square node

– Chance events– branches leaving a circular node

– Analyze from right to left• For each decision, choose the alternative that will yield the

greatest return

• If chance events follow a decision, choose the alternative that has the highest expected monetary value (or lowest expected cost)

Format of a Decision Tree

Decision

Events(State of nature)

Example– Decision Tree

• A manager must decide on the size of a video arcade to construct. The manager has narrowed the choices to two: large or small. Information has been collected on payoffs, and a decision tree has been constructed. Analyze the decision tree and determine which initial alternative (build small or build large) should be chosen in order to maximize expected monetary value.

1

2

2

$40

$40

$50

$55

($10)

$50

$70

Overtime

Example– Decision Tree

1

2

2

$40

$40

$50

$55

($10)

$50

$70

Overtime

EVSmall = .40(40) + .60(55) = $49EVLarge = .40(50) + .60(70) = $62

Build the large facility

Expected Value of Perfect Information

• Expected value of perfect information (EVPI)

– The difference between the expected payoff with perfect information and the expected payoff under risk

– Two methods for calculating EVPI• EVPI = expected payoff under certainty – expected payoff under

risk

• EVPI = minimum expected regret

Expected payoff under certainty is calculated by identifying the best payoff under each state of nature, then combining these by weighing each payoff by the probability of that state of nature and adding the amounts.

Example – EVPIPossible Future Demand





• EVwith perfect information = .30(10) + .50(12) + .20(16) = $12.2• EMV = $10.5 (see slide no. 19)• EVPI = EVwith perfect information – EMV• = $12.2 – 10.5• = $1.7• You would be willing to spend up to $1.7 million to obtain perfect

information

Example– EVPI (using the expected regret approach)Regret Table: Regrets





• Expected Opportunity Loss• EOLSmall = .30(0) + .50(2) + .20(6) = $2.2• EOLMedium = .30(3) + .50(0) + .20(4) = $1.7• EOLLarge = .30(14) + .50(10) + .20(0) = $9.2

• The minimum EOL is associated with the building the medium size facility. This is equal to the EVPI, $1.7 million

Self study Lecture

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Communicating

• To create understanding and acceptance by conveying facts, viewpoints, impression and/or feelings

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Guidelines for Communication

• Communicate with a clear purpose

• Select proper form to communicate - face-to-face talk, phone conversation, emails, video-conference, staff meeting, written memos, web-posting, net-meeting

• Be honest and open, welcome suggestions, offer pertinent information to dispel fears

• Keep communications channels open

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How to Communicate?

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Asking

• Asking open-ended insightful questions to gain knowledge and to improve understanding of the situation at hand

• Quality of questions is an clear indication of the questioner’s grasp of the situation at hand

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Telling

• Offer information to keep people (peers, employees, bosses, supply chain partners, customers) informed about matters of concern to them

• Judgement is needed as to what to tell and what not (“Need to Know” paradigm), seek balance between (1) trust-creation and no surprise versus (2) control over information

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Listening

• Remain focused in listening to the subtext and true meaning of the exchange

• Maintain eye contact

• Exercise self-discipline to control own urge to talk and avoid interrupting others

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Understanding

• To hear by the head and to feel by the heart

• Assess the degree of sincerity - verbal intonation, facial expression, body language

• Recognize shared meaning (emotional and logical)

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Common Barriers to Communications

• Semantics

• Selective Seeing

• Selective Listening

• Emotional Barriers

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Common Barriers to Communications

• Interpretation of Semantics (words/terms may have multiple meanings)

• Selective Seeing - See only what one wants to see

• Selective Listening - Hear only what one wants to hear (screen out ideas divergent to own opinion or self-interest)

• Emotional Barriers (strong attitude and feelings, personal biases)

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Techniques of Communicating

• Know what one wants to say and say what one means (some people want to impress others, not to express themselves) - “The answer is definitely a maybe” “It is not probable, but still possible”

• Know the audience (tailoring to the receiver’s frame of mind - belief, background, attitudes, experience and vocabulary)

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Techniques of Communicating (cont’d)

• Get favorable attention - Taking into account of receiver’s interest and emotional standing

• Get understanding - Leading the exchange from present to future, familiar to unfamiliar, and agreeable to disagreeable

• Get retention - Repeat the ideas (Rule of Four)

• Get feedback - Asking questions

• Get action to enhance communications

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Question # 3• Marketing needs to submit a proposal to a global customer and called a review

meeting next morning. By the time Bill Taylor, Design Manager, was so informed in the late afternoon, all his design staff had left and there was no one available. Bill Taylor decided to work on a proposal himself throughout the night so that he can talk with all his design staff in the next morning, one hour before the Marketing Review meeting. All staff agreed with the proposed design, except Henry King, a senior staff, who is recognized as the most experienced and best designer in the group. His objections were that the current design is too complex and that it would take another week to improve on the design for assuring its functional performance. In order to pacify him, Bill Taylor invited Henry King to come along to the Marketing Review meeting so that he would feel the pressure Marketing is exerting on Design. Unexpectedly, Henry King stood up and re-iterated all his design objections at the Marketing Review meeting, causing a tremendous embarrassment to Bill Taylor and his boss, Stanley Clark, the Design Director. Bill Taylor became furious. What should Bill Taylor and Stanley Clark do?

• Situation like this happens in industry due to some narrow-minded righteous people with strong technical background and no sense of Perspective, who may also have a hidden agenda to upstage his boss. Managers need to deal with these people.

• (1) Bill should ask Stanley to reprimand Henry for his righteous and untactful technical disputes before Marketing, the internal customer.

• (2) Stanley should call Henry in and explain to Henry the following points: (a) Design was under a severe time constraint to respond. (b) A reasonably good design is much better than no design at all to (b) satisfy Marketing, an internal customer to Design. (c) He is proud of Bill, who was able to work through the night and come up with a design at such a short notice. (d) Being one of the best designers on staff, Henry may have a technical point in questioning the design simplicity and performance expectation of the current design. (e) Questions on design differences and performance levels are readily resolved in time, even after the proposal is

• made to customer. (f) Henry should have kept things in perspective and refrained from citing his technical disagreement with management, especially after his points were already made beforehand. (g) Henry should avoid repeating such mistake in the future. (h) Henry should apologize to Bill for the untactful airing of technical disagreements before customers.

• (i) Stanley has full confidence in Bill, who is doing a very good job. If Henry has had other motives in mind, besides an untimely disclosure of technical disagreement, he should better forget about them.

• (2) If Henry exhibits a rebellious/defying attitude, and refuses to apologize to Bill, then Stanley should make arrangement to transfer Henry out of Design. Bill and Stanley will no longer have trust in Henry and his continued presence in Design Department will cause group morale to deteriorate.

• (3) Stanley should call Marketing to reaffirm the use of the current design for the job at hand. Marketing should proceed with its proposal to customer, noting that additional design modifications may further improve the performance for the benefit of the customer at no extra charge. Also inquire what the Market Review was called so late, preventing Design to do a thorough job in the first place.

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Conclusions

• Engineering Managers should pay attention to:

(1) Making decisions under uncertainty (not suffering from paralysis by analysis),

(2) Motivating other engineers with proper motivators,

(3) Communicating by proactive asking and intensive listening,

(4) Selecting to focus on soft skills,

(5) Developing people using personal examples.

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Motivating

• To motivate is to apply a force that excites and drives an individual to act, in ways preferred by the manager/leader.

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How to Motivate

• Inspire - Infuse a spirit of willingness (By work done, leadership traits, examples set)

• Encourage - Stimulate through praise, approval and help

• Impel - Force (Coercion, compulsion, punishments)

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Techniques to Enhance Motivation

• Participation - Promoting ownership of idea, project, task and program

• Communication - Objectives, metrics

• Recognition - Fair appraisals inducing loyalty and confidence

• Delegated Authority - Convey trust

• Reciprocated Interest - Show interest in Results

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Keys for Successful Motivation

• Accept people as they are, not try to change them -personal preference, values and standards

• Recognize that other have drives to fulfill own needs - self-actualization, recognition, ego, self-esteem, group association, etc..

• Motivate by addressing the unsatisfied needs -Maslow Need Hierarchy Model

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Maslow Hierarchy Need Model

• Self Actualization - Self-development and realization of own potential

• Esteem - Ego, recognition

• Social - Peer acceptance, group affiliation

• Safety - Job security

• Physiological Needs - Food & shelter

Physiological Needs

Safety

Social

Esteem

Self A

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Maslow Hierarchy Need Model

• A higher level need only arises when lower ones are already satisfied

• A satisfied need no longer dominates the individual’s behavior, the next higher need takes over

• An unsatisfied need acts as a motivator - Central to need-based motivation strategy

• The top level needs are never fully satisfied

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Motivating Factors for Professionals

• Scope of self expression and creativity, having room for making decision, choosing methods and utilizing own talents fully

• Independence with minimum supervision

• Recognition for achievements

• Variety of challenging work is motivating

• Pay and benefits are minor motivators

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Selecting

• By selecting people, managers gain staff with right skills, dedication, value systems, personality, and win their loyalty over time

• Associate themselves with the right mentors and leaders

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Standard Procedure of Employee Selection Process

• Define needs

• Define qualifications

• Get applicants

• Review and pre-screen applicants

• Conduct interviews - Asking good questions

• Decide on job candidates

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Skills Assessment

• Hard skills - Technical capabilities readily assessed (transcripts, reports and references)

• Soft skills - Behavior in team work, interpersonal skills, leadership quality, cooperative attitude, mental flexibility and adaptability - all related to personality - psychological profile, value systems and deep-rooted beliefs are difficult to evaluate

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Challenges of Selecting

• Managers are not trained to assess soft skills -major sources of job-related problems and key factors for career failures

• Candidates are polished to “Talk the talk and walk the walk,” masking their true long-term personal behavior

• Selecting people remains a major challenge to all managers

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A Best Practice in Selecting

• Companies: Mazda Motor, Flat Rock, Michigan and Diamond-Star Motor, Normal, Illinois

• Selection Criteria: (1) Interpersonal skills to get along with people, (2) Aptitude for teamwork, (3) Personal flexibility, (4) Drive to improve continuously

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A Best Practice in Selecting (cont’d)

• Selection Process: (1) Multiphase process involving tests, exercises, and role playing in group activities, (2) Pick the best (based on soft skills) employees and train them well technically

• Results: Got 1300 people out of 10,000 applicants at $13,000/person hiring expenses

• (Source: Williams J. Hampton, “How Does Japan Inc. Pick its American Workers?” Business Week, October 3, 1998)

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Developing

• Purpose: To improve knowledge, attitude and skills of employees

• Knowledge: Cognizance of facts, truths and other information

• Attitude: Customary dispositions toward people, things, situations and information

• Skills: Ability to perform specialized work with recognized competence

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How to Develop People

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Guidelines for Employee Development

• Emphasize employee’s role in development (good for the individual and company)

• Appraise present performance and future potential

• Counsel for improvement (to induce self-improvement, set example)

• Develop Successors - Career Planning Plan of Some Progressive Companies

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Special Topics on Leading

• Leading Changes (Eight-step processes to create and sustain changes)

• New Leaders (Strategy for First 6 months)

• Advice for Superior Leadership (Eight attributes and more)

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Leading Changes

• Changes take time to set in and there are eight critical steps to follow:

• (1) Establish a sense of urgency - Identify marketing and other factors supporting the urgent need for change, getting 75% of corporate leaders on board

• (2) Form a powerful guiding coalition - Secure

shared commitment of top leaders

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Leading Changes (Cont’d)

• (3) Create a vision - Have an easy-to-communicate vision to direct the change efforts

• (4) Communicate the vision - Using all means available to spread the words

• (5) Empower others to act on the vision -Encourage risk taking and removal of systems/ people resisting change

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Leading Changes (Cont’d)

• (6) Plan for short-term wins - Select projects to achieve wins within the first one to two years, in order to keep momentum

• (7) Consolidate improvements - modify systems and promote people in favor of changes

• (8) Institutionalize new approaches - Ensure leadership development/succession

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Corporate Transformational Changes

Corporate Transfromational Changes

0

1

2

3

4

5

6

7

8

9

1 2 3 4 5 6 7

Year

# C

hang

es

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Advice for New Leaders

• New Leaders - Sailing through dense fog in first 6 months (short visibility ahead)

• Seven-rule strategy to follow:

• (1) Leverage the time before entry - Study the new situation (SWOT analysis), prepare questions

• (2) Organize to learn - Technical, cultural and political arenas

106

Advice for New Leaders (Cont’d)

• (3) Secure early wins - Get some wins in first 6 months

• (4) Lay foundation for major improvements -Initiate pilot programs to try out new technology tools, Change ways to measure performance, Introduce new ways of operating and viewing business, Promote positive examples, and Envision new mechanism to do business

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Advice for New Leaders (Cont’d)

• (5) Create a personal vision - linking to core value and be compatible with top-priority projects

• (6) Build winning coalitions - linking with powerful groups in top-management, middle management and working groups

• (7) Manage own time and stress, Secure technical, political and personal advisement

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Achieve

Prioritized

Projects

Securing

Early Wins

Laying the

Foundation

Learning Visioning Coalition

Building

Source: Michael Watkins, “Seven Rules for New Leaders,” Harvard Business

School Notes # 9-800-288, June 8, 2001.

The Transition Pyramid

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Guidelines for Superior Leadership

• (1) Maintain absolute integrity

• (2) Be Knowledgeable

• (3) Declare expectations

• (4) Show uncommon commitment

• (5) Get out in front

• (6) Expect Positive results

• (7) Take care of people

• (8) Put duty before self-interests

110

Profile of Successful Leaders

• Strong drive for responsibility and task completion

• Vigor and persistence in pursuit of goals

• Venturesomeness and originality in problem-solving

• Drive to exercise initiative in social situation

• Self-confidence and sense of personal identity

• Willingness to accept consequence of decision and action

• Readiness to absorb interpersonal stress

• Willingness to tolerate frustration and delay

• Capacity to structure social interaction systems to the purpose at hand

111

Once again- Conclusions

• Engineering Managers should pay attention to:

(1) Making decisions under uncertainty (not suffering from paralysis by analysis),

(2) Motivating other engineers with proper motivators,

(3) Communicating by proactive asking and intensive listening,

(4) Selecting to focus on soft skills,

(5) Developing people using personal examples.

112

References• 3-1. John P. Kotter, “What Leaders Really Do,” Harvard Business Review, pp. 03-11 (May-

June 1990).

• 3-2 L. R. Bittel, “Leadership – The Key to Management Success,” Franklin Watts (1984).

• 3-3 W. C. Geigold, “Practical Management Skills for Engineers and Scientists,” Lifetime Learning Publications (1982).

• 3-4 C. Margerison and R. McCann, “How to Lead a Winning Team,” MCB (1985).

• 3-5 C. Meyer, “How the Right Measures Help Team Excel,” Harvard Business Review, pp. 95-103 (May-June 1994).

• 3-6 W. G. Pagonis, “The Work of the Leader,” Harvard Business Review, pp. 118-126 (November-December 1992).

• 3-7 A. Zaleznik, “Managers and Leaders: Are They Different?” Harvard Business Review, pp. 126-135 (march-April 1992).

• 3-8 Cliff Ragsdale, “Spreadsheet Modeling and Decision Analysis,” Third Edition, South Western College Publishing (June 2000).

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References (cont’d)

• 3-9 D. M. Geogoff and R. Murdick, “Manager’s Guide to Forecasting,” Harvard Business Review, pp. 110-20 (January-February 1986).

• 3-10 S. Wheelwright and S. Makridakis, “Forecasting Methods for Management,” John Wily and Sons, New York (1985).

• 3-11 R. R. Blake and J. S. Mouton, “The Managerial Grid,” Gulf Publishing (1964).

• 3-12 G. k. Cheves, “Characteristics of Effective Leaders in System,” A Supplement to Industrial Management, p. 4 (July-August 1992).

• 3-13 C. Argyris, “Good Communications That Blocks Learning,” Harvard Business Review, pp. 77-85 (July-August 1994).

• 3-14 R. Bolton, “People Skills,” Prentice Hall (1979).

• 3-15 J. Fast, “Body Language,” Pocket Books, New York (1971).

• 3-16 M. Young and I. E. Post, “How Leading Companies Communicate withEmployees,” IEEE Engineering Management Review, pp. 24-31 (Spring 1994).

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Question # 4

• The Engineering Director of the company is asked to send one engineer abroad to assist in the installation of equipment. There are three qualified candidates, each working for a different manager under the Director. The Director knows that all three engineers will want to go, but their bosses will not, for fear of losing time in doing their own very critical projects. How should the Director make the choice?

Response:• The Director should follow the steps listed below to make a choice:• (1) Talk with the three managers separately and inquire about (a) how their

projects are coming along, (b)how their projects will be adversely impacted, should one of their engineers be pulled away for one month for a critical overseas installation job, and (c) how would they manage to substitute staff to fill in the gap from behind?

• (2) Listen carefully to understand the perceived adversary impact and assess its significance from the departmental stand point, as what is important to the mangers may not be as important to the Director, who oversees the entire department.

• (3) Assess the relative feasibility of the recommended steps to substitute support.

• (4) Tell the managers that he will review their inputs and make a decision soon.• (5) Compare the relative impact and feasibility of three options, and choose

one with the least impact, from the departmental viewpoint, with the most feasibility for rearranging substitution.

• (6) Inform all managers of the decision and name the engineer who should be sent to assist.

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Question # 5

• What are some of the important characteristics of effective leaders? Which of these characteristics are more difficult than others for engineers to acquire?

Reposne:• Cheves (1992) has published the following list of characteristics of effective

leaders:

1. Communicate and listen well (clarity in instructions and listen for good ideas and feedback)2. Approachable (receptive and pay undivided attention to people)3. Delegate work (broaden responsibilities, develop and motivate people)4. Lead by example ("walk the talk")5. Read situation and people well (use right style, being tactful)6. Teach well (challenge followers to learn)7. Care about people (show sincere interest in people, courtesy, give recognition)8. Fair, honest and consistent9. Give constructive criticism.10. Know how to accept criticism and learn from it

• Among the above, some engineers may have difficulty to become proficient in Delegation (3), Read situation and people well (5), How to criticize (8) How to accept criticism (10), Care for people (7) and Communicate (1).

Leading Technical People

Objectives

• Explain the difference between leaders and managers

• Describe the nature of leadership and its significance to an organization

• Address the application of servant leadership in current organizations

• Recognize the different views of motivation

If your actions inspire others to dream more, learn more, do more and become more, you are a leader.

–John Quincy Adams

Leadership

Managers Leaders

Administer Innovate

Ask how and when Ask what and why

Focus on systems Focus on people

Do things right Do the right things

Maintain Develop

Short term perspective Longer term perspective

Imitate Originate

Are a copy Are original

Leadership

• Nature of Leadership– It is the ability to get people to do what they don’t want

to do and like it

• Leadership Traits– Physical Qualities

– Personal Attributes

– Character Attributes

– Intellectual Qualities

Leadership Continuum (Range)

• Autocratic

• Diplomatic

• Consultative

• Participative

Leadership Examples

• Jack Welch

• Shackleton

• Rudy Giuliani

• Oprah Winfrey

• Bill Gates

• George Washington

• Hsun Tzu

• Bill Swanson

Servant Leadership

• Practical philosophy which supports people who choose to serve first

• Then lead as a way of expanding service to individuals and institutions.

Motivation

Motivation

Dale Carnegie states that “there is only one way under high heaven to get anybody to do anything. And that is by making the other person want to do it.”

Assignment- Prepare and discuss with practical examples the Motivation Theories

• McGregor

• Maslow

• Herzberg

Course Info

Books• C. M. Chang, “Engineering Management: Challenges in the New

Millennium”, Prentice Hall.

• L.C. Morse, and D. L. Babcock, “Managing Engineering and Technology’, Pearson.

• Contact :[email protected]

• Website : https://cloudecampus.org/

https://cloudecampus.org/

Thank You!

IntroductiontoEngineering Management€¦ · 3/10/1998 · Homemaking is not her cup of tea....

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