PPT Slides for ES27 Module 1 Introduction to Management
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Transcript of PPT Slides for ES27 Module 1 Introduction to Management
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ES 27 ENGINEERING MANAGEMENT
PPT SLIDES FOR MODULE 1:
INTRODUCTION TO MANAGEMENT Developed by:
RENAN S. MAGLASANG, MBA
Faculty
Department of Industrial Engineering
University of San Carlos
Rev 00/June 2013
Sources:
Jones G. R. and J.M. George. Contemporary Management, 6th Edition, McGraw Hill/Irwin, 2008
Bartol, K. M. and D.C. Martin, Management. McGraw-Hill Companies, Inc. 1998
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WHICH WORD IS
LESS LIKELY A
BUSINESS WORD?
Conditioning Activity
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PROFIT
INVESTMENT
SYNTAX
MARKET
ASSETS
yook
yook
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INTERESTS
LIABILITIES
PERMUTATION
LOANS
INCOME
yook
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DEPRECIATION
CAPITAL
PAYBACK PERIOD
DEMAND
ASYMPTOTES
yook
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CARTESIAN
EFFECTIVENESS
LABOR
PRODUCTION
PRICE
yook
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SUPPLY
STOCKOUTS
INVENTORY
DNA
BUFFER
yook
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MACHINERIES
EARNINGS
PNEUMATICS
BALANCE SHEET
MANAGERS
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EXPENSES
CAPACITANCE
COST
CUSTOMERS
LOSS
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COMPANY
ORGANIZATIONS
SHAREHOLDER
PHYLUM
BOTTOMLINE
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STANDARDS
MARKET
NET PROFIT
RISK
SALES
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INVENTORY
MATERIAL
PRODUCT
TRUSSES
INCOME
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Electrical and Electronics Engineer
Application Programmer
Avionics Engineer
Control Systems Engineer
Instrumentation and Control Engineer
Roadway Lighting Design Engineer
Television Systems Engineer
DESIGN, PLAN, RESEARCH, EVALUATE , AND
TEST
ENGINEERING CAREER
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Computer Engineer
Computer Engineer
Hardware Development Engineer
Hardware Engineer
Network Test Engineer
Wireless Communications Network Engineer
DESIGN, PLAN, RESEARCH, DEVELOP AND
VERIFY
ENGINEERING CAREER
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Civil Engineer
Bridge Engineer Sanitation Engineer
Civil Engineer Municipal Engineer
Construction Engineer Traffic Engineer
Environmental Engineer Structural Engineer
Highway Engineer Transportation Engineer
PLAN, RESEARCH, EVALUATE , AND MANAGE
ENGINEERING CAREER
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You feel like people aren't
getting anything done, even
though you employ lots of
people, all of whom are smarter
than you and just as hard
working.
A MANAGEMENT PROBLEM
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Employees burn out after
months. Team members work
increasingly less on average as
they spend more time at the
company.
A MANAGEMENT PROBLEM
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Product A inventory are piling
in the stockroom for weeks while
demand for product B remain
unsatisfied for a week now.
A MANAGEMENT PROBLEM
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The companys balance sheet has been indicating so much cash on
hand for two years in a row
amounting to more than 2
million when all they need for
next years operation is 60% of it.
A MANAGEMENT PROBLEM
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MANAGEMENT
An art
A science, too.
-
is the process of achieving
organizational goals
efficiently and effectively by -engaging in management functions
-exercising management skills
-and playing management roles
MANAGEMENT
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is a specialized form of management
aimed at applying engineering
principles to business practice.
ENGINEERING MANAGEMENT
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Engineering professionals joining
manufacturing companies sometimes
become engineering managers by default
after a period of time.
They are required to learn how to manage
once they are on the job, though this is
usually an ineffective way to develop
managerial abilities.
ENGINEERING MANAGERS
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THE EVOLUTION OF MANAGEMENT THEORIES
CONTINUOUS QUEST FOR EFFICIENCY
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ARE YOU EFFICIENT OR EFFECTIVE?
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SCIENTIFIC MANAGEMENT INCREASING EFFICIENCY BY STUDYING PERSON-TASK MIX
Frederick Taylor believed
that the way to create the
most efficient division of
labour could best be
determined by means of
scientific management
techniques, rather than
intuitive or informal rule-
of-thumb knowledge.
Adam Smith concluded
that increasing the level of
job specialization
increases efficiency and
leads to higher
organizational
performance
Two prominent followers of
Taylor were Frank Gilbreth
(18681924) and Lillian Gilbreth (18781972), who refined Taylors analysis of work movements and made
many contributions to time-
and-motion study.
Time and Motion Study.
The Gilbreths often filmed a
worker performing a particular
task and then separated the
task actions, frame by frame,
into their component
movements. Their goal was to
maximize the efficiency with
which each individual task
was performed so that gains
across tasks would add up to
enormous savings of time and
effort.
Henry Fords talented team of production
managers pioneered the
development of the
moving conveyor belt
Fordism. When a conveyor
belt controls the pace of
work (instead of workers
setting their own pace),
workers can be pushed to
perform at higher levels
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ADMINISTRATIVE MANAGEMENT INCREASING EFFICIENCY BY STUDYING STRUCTURE OF ORGANIZATION
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BEHAVIORAL MANAGEMENT INCREASING EFFICIENCY BY STUDYING HOW MANAGERS
SHOULD BEHAVE AND TREAT EMPLOYEES
Mary Parker Follet on
Empowerment and
Self-managed teams
Mary Parker Follett proposed
that, Authority should go with knowledge ... whether it is up
the line or down. In other words, if workers have the
relevant knowledge, then
workers, rather than
managers, should be in control
of the work process itself, and
managers should behave as
coaches and facilitatorsnot as monitors and supervisors.
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MANAGEMENT SCIENCE A CONTEMPORARY EXTENSION OF SCIENTIFIC MANAGEMENT
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ORGANIZATIONAL ENVIRONMENT THEORY
-set of forces and conditions
that operate beyond an
organizations boundaries but affect a managers ability to acquire and utilize resources
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ORGANIZATIONAL ENVIRONMENT THEORY
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ORGANIZATIONAL ENVIRONMENT THEORY
claims that there is no best way to organize a
corporation, to lead a company, or to make decisions
because the optimal organization, leadership or
decision making style depends upon various internal
and external constraints.
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LIMITATION OF THE EARLY PRACTICES
presumed that managers are
overseeing manual labor tasks
dehumanize workers
mainly on remuneration issues
heavily oriented toward efficiency at
the expense of attention to the
manager-as-leader
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CONTEMPORARY PRINCIPLES
OF MANAGEMENT
Social Networking
Learning Organizations
Virtual Organizations
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WHAT ARE THE BASIC MANAGEMENT FUNCTIONS?
Study Question:
The P-O-L-C
FRAMEWORK
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WHAT IS PLANNING AS A MANAGEMENT FUNCTION?
is a primary function on which all others depend
Study Question:
is the process of setting goals and deciding how to best accomplish them
goals desired outcomes
plan
a statement of action steps
to be taken to accomplish
the objectives
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HOW DO MANAGERS PLAN? Study Question:
Who are we?
-Core Values /Ethics
-Principles
-Beliefs
Why are we here?
What do we want to contribute?
How can we change our communicty/industry/world
What do we want to accomplish?
When do we want to accomplish it?
How do we get there?
Projects
Short-term goals
Staffing
operations management
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HOW DO MANAGERS PLAN? Study Question:
STRATEGIC PLANNING FLOWCHART
-
Sun impress Ltd is a
new company created in
October 2009 for the
purpose of helping to
reduce carbon emissions
by identifying best
practice and facilitating
knowledge transfer,
specifically in the
building and real estate
sectors.
EXAMPLES
PLANNING IN SERVICE BUSINESS
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PLANNING IN MANUFACTURING BUSINESS
EXAMPLES
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PLANNING IN WAREHOUSING AND DISTRIBUTION BUSINESS
EXAMPLES
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PLANNING IN ICT BUSINESS EXAMPLES
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WHAT IS THE ROLE OF MISSION AND VISION IN PLANNING?
Vision:
A picture of the "preferred
future;" a statement that
describes how the future
will look if the
organization achieves its
ultimate aims.
Mission:
A statement of the
overall purpose of an
organization. It describes
what you do, for whom
you do it and the benefit
WHY WE EXIST
WHAT WE WANT TO BE
Nourishing and Nurturing
Families World Wide
By 2020, San Miguel Purefoods
Company, Inc. will be a P520
billion company with an income of
P42 billion
We will delight our Customers with products and
services of uncompromising quality, great taste and
value, and are easily within their reach.
We will create value and provide fair returns on our
Shareholders investments.
We will work hand-in-hand with our Suppliers and
other Business Partners, helping them grow with us
and assuring them of reasonable returns.
We will develop and motivate our Employees to
become best-in-class through cognitive and affective
programs, competitive compensation and benefits,
and diverse career growth opportunities.
We will help improve the quality of life in
Communities where we operate.
Collectively, we will give and do what is right and
become proponents of good stewardship.
Study Question:
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WHAT IS ORGANIZING AS A MANAGEMENT FUNCTION?
The process of
arranging people
and other resources
to work together to
accomplish a goal.
the organizational
structure and design
is the heart of this function
Study Question: OR
GA
NIZ
ING
-
OR
GA
NIZ
ING
ORGANIZATIONAL STRUCTURE
It is the formal framework in which
the organization defines how tasks
are divided, resources are deployed,
and departments
are coordinated.
A process of developing or
changing an organization's
structure.
ORGANIZATIONAL DESIGN
HOW ARE ORGANIZATIONS ORGANIZED? Study Question:
-
OR
GA
NIZ
ING
6 KEY ELEMENTS OF ORGANIZATIONAL DESIGN
Work
specialization
Departmentalization
Chain of
Command
Span of
Control
Centralization and
Decentralization Formalization
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OR
GA
NIZ
ING
RELATIONSHIP TO
LEADING FUNCTION
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OR
GA
NIZ
ING
WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?
Study Question:
FUNCTIONAL STRUCTURE ADVANTAGES:
Economies of scale.
Task assignments consistent with expertise and training.
High-quality technical problem solving
In-depth training and skill development.
Clear career paths within functions.
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OR
GA
NIZ
ING
WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?
Study Question:
DISADVANTAGES: Difficulties in pinpointing responsibilities. Functional chimneys problem. Sense of cooperation and common purpose break down. Narrow view of performance objectives. Excessive upward referral of decisions.
FUNCTIONAL STRUCTURE
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OR
GA
NIZ
ING
WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE?
Study Question:
DIVISIONAL
STRUCTURE
ADVANTAGES:
More flexibility in responding to environmental changes. Improved coordination. Clear points of responsibility. Expertise focused on specific customers, products, and regions. Greater ease in restructuring.
-
OR
GA
NIZ
ING
WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE? Study Question:
DISADVANTAGES:
Duplication of resources and efforts
across divisions.
Competition and poor coordination across
divisions.
Emphasis on divisional goals at expense of
organizational goals.
DIVISIONAL
STRUCTURE
-
OR
GA
NIZ
ING
WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE? Study Question:
MATRIX STRUCTURE
ADVANTAGES:
Better cooperation across
functions.
Improved decision making.
Increased flexibility in
restructuring.
Better customer service.
Better performance
accountability.
Improved strategic
management.
-
OR
GA
NIZ
ING
WHAT ARE THE MAJOR TYPES OF ORGANIZATION STRUCTURE? Study Question:
MATRIX STRUCTURE DISADVANTAGES:
Two-boss system is susceptible to power
struggles.
Two-boss system can create task confusion and conflict
in work priorities.
Team meetings are time consuming.
Team may develop groupitis.
Increased costs due to adding team leers to
structure.
-
OR
GA
NIZ
ING
WHAT ARE THE NEW DEVELOPMENTS IN ORGANIZATION STRUCTURE? Study Question:
Horizontal structures: Focus the organization around processes, not functions.
Put people in charge of core processes.
Decrease hierarchy and increase the use of teams.
Empower people to make decisions critical to
performance.
Utilize information technology.
Emphasize multi-skilling and multiple competencies.
Teach people how to work in partnership with others.
Build a culture of openness, collaboration, and
performance commitment.
-
OR
GA
NIZ
ING
WHAT ARE THE NEW DEVELOPMENTS IN ORGANIZATION STRUCTURE? Study Question:
Team structures
Extensively use permanent and temporary
teams to solve problems, complete special
projects, and accomplish day-to-day tasks.
Often use cross-functional teams.
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LEADING is influencing and motivating people to
work effectively and willingly towards company goals.
guiding, inspiring, overseeing, and instructing
Gates passion and empowerment
Kelleher leadership is the job of
every employee
High EQ are: Self-awareness; self-regulation; motivation; empathy; and social skills
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THE HERSEY-
BLANCHARD
SITUATIONAL
LEADERSHIP
The theory states
that instead of using
just one style,
successful leaders
should change their
leadership styles
based on the
maturity of the
people they're
leading and the
details of the task.
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CONTROLLING Controlling is a process of checking actual
performance against the standards or plans.
Control activities and techniques Authorization
Review and approval
Verification
Reconciliation
Physical security of assets
Performance planning and evaluation
Quality management
Without controlling functions, planning is useless.
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ORGANIZATIONAL HIERARCHY AND MANAGEMENT FUNCTIONS
RELATIVE AMOUNT OF TIME THAT MANAGERS
SPENT ON FOUR MANAGEMENT FUNCTIONS
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MANAGEMENT SKILLS
Technical
Human
Conceptual
Are you proficient in your own field?
Can you get things done through others?
Can you visualize the organization as a
whole and its interrelationships among
parts?
Decision
Making
Can you analyze information and reach
good decisions?
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Relative Importance of types of skills
to levels of management
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Managerial Roles by Henry Mintzberg
A role is an
organized set of
behaviors
associated with a
particular office
or position
Positions usually
entail multiple
roles.
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Henry Mintzbergs 10 Managerial Roles
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STUDENT ANSWERS OF
SOME ESSAY QESTIONS
FROM PREVIOUS EXAMS
-
A:
PRODUCT INNOVATION- STRATEGIC (5 POINTS)
This is a strategic plan since it may require a
couple of years from conceptualization up to
introduction of the improved product to the desired
market. This project would require extensive top
level participation in planning the major tasks to
be allocated to the middle management and then
distribute sub-tasks to the lower level
management in the fulfillment of the plan.
Q:
CHOOSE ONE PLAN FROM THE LIST. CLASSIFY AND
EXPLAIN IT AS STRATEGIC, TACTICAL, OR OPERATIONAL .
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A:
KNOWING THE TARGET OUTPUT OF THE
WEEK. OPERATIONAL (5 POINTS)
This is an operational plan because it can be
achieved on a short period of time and this plan
could achieve more bigger plans if done a lot of
times with short time intervals.
Q:
CHOOSE ONE PLAN FROM THE LIST. CLASSIFY AND
EXPLAIN IT AS STRATEGIC, TACTICAL, OR OPERATIONAL .
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Q:
HOW DOES BUREAUCRATIC/ADMINISTRATIVE MANAGEMENT
HELPED COMPANIES NOWADAYS? (5 POINTS)
A:
Bureaucratic/administrative management helped companies nowadays because in this type of management authority is key. Authority enables the managers to give orders to their subordinates in order for them to do their job efficiently and effectively in order to achieve the organizational goals. When authority is present within the company in the context where they are specified, they are hierarchical in form, the company works well together with no confusion, order is attained, rules and SOPs are established and goals are achieved in the long run.
-
Q:
HOW DOES BUREAUCRATIC/ADMINISTRATIVE MANAGEMENT
HELPED COMPANIES NOWADAYS? (5 POINTS)
A:
Bureaucratic management has simplified the
landscape of company management. In a very
large company where roles and functions are not
well-defined, anarchy would occur. Not to mention,
there would be no person accountable if that
happens. Bureaucratic management makes
running an organization easier.
-
Q:
WHAT ARE STRATEGIC PLANS? (10 POINTS)
A: Strategic plans is on top of the planning pyramid.
This plan usually lasts greater than a year.
Examples of these are expanding market or
customers and product innovation. Usually it takes
conceptual skills of the CEO or the top level
managers to oversee where the company will be
going.
-
Q:
WHAT ARE STRATEGIC PLANS? (10 POINTS)
Q:
Strategic plans are those plans that are long term
goal and could cover from 1-5 years or more for it
to realize. These plans are considered visions of
the company that was formulated by the top level
individuals mostly. These are plans that most
companies are trying to realize as years go by. Like
the Microsoft, their vision is to put every home a
windows to use. Its like every house uses the
windows their tool or OS in the PC.
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Q:
WHEN AND HOW DO MANAGERS BECOME
EFFECTIVE. (10 POINTS)
A:
Managers become effective by exercising the
management skills in the scope of his/her position.
By not being content of what he/she can only do
but by practicing and developing weaker skills for
improvement. A manager is effective if his subjects
are on the same page with him and unity is
present for a better team the delievers the desired
output. He has the capability to lead the workers
and behaves like a leader. Roles is being played
and carried out depending on what is needed in his
particular position.
-
Q:
EXPLAIN THE RELATIONSHIP OF MANAGEMENT
SKILLS TO THE LEVELS OF MANAGEMENT. (5 POINTS)
A:
All levels of the management hierarchy must possess all management skills to become effective managers. Each level, however has a greater for one of these skills. Top level managers require great conceptual skills because they are the ones who see the organization in a bigger picture. First-line level managers require great technical skills because they are at the frontlines of the technical employees who need their communication, monitoring, and consultation. All levels require human skills because all managers fulfill interpersonal relations.
-
Q:
WHEN AND HOW DO MANAGERS BECOME
EFFECTIVE. (10 POINTS)
A:
Managers become effective by exercising the
management skills in the scope of his/her position.
By not being content of what he/she can only do
but by practicing and developing weaker skills for
improvement. A manager is effective if his subjects
are on the same page with him and unity is
present for a better team the delievers the desired
output. He has the capability to lead the workers
and behaves like a leader. Roles is being played
and carried out depending on what is needed in his
particular position.