ENGINEERING PROJECT & RESOURCE MANAGEMENTECM 5271

©Sheila Belayutham

ENGINEERING The American Engineers’ Council for Professional

Development has defined engineering as follows:

“ The creative application of scientific principles to design or developstructures, machines, apparatus, or manufacturing processes, orworks utilizing them singly or in combination; or to construct oroperate the same with full cognizance of their design; or to forecasttheir behavior under specific operating conditions; all as respects anintended function, economics of operation and safety to life andproperty.”

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PROJECT PMBOK GUIDE:

Project, as defined in the field of project management, consists of atemporary endeavor undertaken to create a product or service.

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RESOURCESAmerican Heritage® Dictionary

Something that can be used for support or help The total means available for economic and political

development, such as mineral wealth, labor force, and armaments.

The total means available to a company for increasing production or profit, including plant, labor, and raw material; assets.

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MANAGEMENT

Management in business and human organization activity, in simple terms means the act of getting people together to accomplish desired goals

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COURSE LEARNING OUTCOMES

At the conclusion of this course, the student should be able to: Acquire and apply management concept in the work

environment. Utilize the system approach to develop basic and

comprehensive project plans. Develop and implement effective project monitoring

and control system in work environment. Understand the activities to be carried out and

undertake problem identification and solution during a project closing.

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COURSE LEARNING OUTCOMES(CONTINUED) At the conclusion of this course, the student should

be able to: Understand how the construction industry operates,

its products, the sectors involved and their functions. Communicate effectively with the community at

large by understanding the social, cultural, global and environment responsibilities of a professional engineer.

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TOPICS

Introduction to management concepts History and current developments in project

management. Project management in Malaysia Project management definition Project planning Project monitoring and control Project closure Engineering economics Decision making strategies under various

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TODAY’S LESSONINTRODUCTION TO MANAGEMENT CONCEPTS9

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LESSON LEARNING OUTCOMES

At the conclusion of this lesson, the student should be able to: Relate the significance of studying management to

work performance Appreciate and understand the role and

responsibility of a manager Understand the management process Begin developing skills necessary for holding

management positions

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WHAT IS WORK?

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WHAT IS WORK?

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Definition of Work in Physics

When a force acts to move an object, we say that Work was done on the object by the Force.

Work = Force X Distance Travelled

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WHAT IS WORK?

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Work (in management) is an activity that produces value for

other people

The need for work to be done well enough that people, organizations, and society as a whole may prosper is what makes the study of “managers” and “management” so meaningful.

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WHAT IS MANAGEMENT?

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Management is the process of planning, leading, and

controlling the use of resources to accomplish performance

goals

Henry Mintzberg (management theorist) – It is the manager who determines whether our social institutions serve us well or whether they squander our talents and resources

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WHAT IS MANAGEMENT?

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“The art of getting things done through people”

[M. P. Follett, quoted in Daft 1993]

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WHAT IS MANAGEMENT?

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“The Manager’s job can be broadly defined as deciding what should be done and getting other people to do it.”

[Rosemary Stewart quoted in Mullins 1999]

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WHAT IS MANAGER?

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A manager is a person in an organization who is responsible for the work performance of one

or more other persons

Managers serve in positions with wide variety of titles, such as supervisor, team leader, division head, administrator, vice president and so on. Managers are persons to whom others report

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WHAT IS A MANAGER?

Someone whose primary responsibility is to carry out the management process

Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources

[Griffin 2003]

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WHAT DO MANAGERS DO? Effective managers utilize organizational

resources in ways that result in the following: High performance outcomes

Performance effectivenessPerformance efficiency

High levels of satisfaction among people doing the workQuality of work life

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Performance effectiveness – output measure of task or goal accomplishment

Performance efficiency – a measure of the resource cost associated with goal accomplishment

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WHAT DO WE MEAN BY… Effectiveness?

The degree to which goals are achieved Making the right decisions and successfully

implementing them Doing the right things in the right way at the

right times Efficiency?

Using minimal resources to produce the desired volume of output

Using resources wisely and in a cost-effective way Operating in such a way that resources are not

wasted

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PERFORMANCE EFFECTIVENESS ANDPERFORMANCE EFFICIENCY

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Effective but not efficient:

Some resources wasted

Neither effective nor efficient:

Goals not achieved; resources wasted in the process

Efficient but not effective:No wasted resources, but goals not achieved

Effective and efficient:Goals achieved and resources well utilized; area of high performance

High

GoodPoor

Poor

Goal

attainment

Resource Utilization

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A HIGH QUALITY OF WORKLIFE OFFERS SUCH THINGS AS

Adequate and fair pay for a job well done Safe and healthy working conditions Opportunity to learn and use new skills Room to grow and progress in a career Protection of individual rights Pride in the work itself and the organization

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THE MANAGERS CHALLENGE

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Manager’s Boss

Production Manager

Manager’s Subordinates

Work Unit performance:

Effectiveness and Efficiency

Accountability

Dependency

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KEY CONCEPTS OF MANAGEMENT

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The four functions of management• Planning• Organizing• Leading• ControllingSometimes a fifth is added:• Staffing

Attainment of organizational goals in an effective & efficient manner

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FOUR FUNCTIONS DEFINED

Planning Setting an organization’s goals and selecting a

course of action from a set of alternatives to achieve them [Griffin 2003]

Deciding in advance what to do, how to do it, when to do it, and who is to do it

Organizing Determining how activities and resources are

grouped [Griffin 2003]

Determining the composition of work groups and the way in which work and activities are to be coordinated

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FOUR FUNCTIONS DEFINED

Leading The set of processes used to get organizational

members to work together to advance the interests of the organization [Griffin 2003]

Motivating and communicating with the organization’s human resources to ensure goals are attained

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FOUR FUNCTIONS DEFINED

Controlling Monitoring organizational progress towards goals

[Griffin 2003] The process of comparing results and expectations

and making the appropriate changes And that pesky fifth one: Staffing

The recruitment, selection, assignment, training, development, evaluation and compensation of staff

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MANAGEMENT LEVELS (TYPICAL)

28SOURCE: Adapted from Thomas V. Bonoma and Joseph C. Lawler, “Chutes and Ladders: Growing the General Manager,” Sloan Management Review (Spring 1989), 27-37.

/CIO

CTO

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MANAGEMENT LEVELS DEFINED

First line Managers directly responsible for day-to-day operations supervise and coordinate the activities of

operating employees Middle Managers

work in the middle levels of the organization responsible for sections or departments supervise and coordinate the activities of

lower-level managers responsible for implementing the policies and

plans of top managers

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MANAGEMENT LEVELS DEFINED

Top (or Senior) Managers usually form a team manage the organization’s overall goals, strategy,

and operating policies responsible for the entire enterprise

Middle and top managers may also be: Functional Managers

responsible for a distinct function in the enterprise

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HORIZONTAL DIFFERENCES

Functional managers Responsible for departments that perform a single

functional task General managers

Responsible for several departments that perform different functions

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MANAGERS BY AREA

Marketing Managers Work in areas related to getting consumers and

clients to buy the organization’s products or services Financial Managers

Deal primarily with an organization’s financial resources

Operations Managers Concerned with creating and managing the systems

that create organization’s products and services May be IT managers in IT businesses (but even

then are primarily focused on production)[Griffin 2003]

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MANAGER BY AREA

Human Resource Managers Human resource planning, recruiting and selection,

training and development, designing compensation and benefit systems, formulating performance appraisal systems

Administrative Managers Generalists familiar with all functional areas of

management and who are not associated with any particular management specialty

Other Kinds of Managers Specialized managerial positions directly related to

the needs of the organization May include IT management

[Griffin 2003]

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KEY MANAGERIAL ROLES

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Informational Interpersonal Decisional

•Monitor•Disseminator•SpokespersonPositions the manager so as to facilitate the sending and receiving of information

•Figurehead•Leader•LiaisonInvolves the manager in relationships with other individuals both inside and outside the firm

•Entrepreneur•Disturbance handler•Resource allocator•NegotiatorThe manager uses the available information to make important decisions

SOURCE: Adapted from Van Fleet, David D., Contemporary Management, Second Edition, Houghton Mifflin 1991[Munsterberg]

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CHARACTERISTICS OF MANAGEMENT

Managerial activities involve variety fragmentation brevity large volume of work performed quickly

To illustrate: First line managers in an industrial firm may

average over 500 incidents a day [Handy 1995] In a study of 100 managers over four weeks, each of

them had on average only nine periods of half an hour without interruption [Rosemary Stewart]

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MANAGEMENT SKILLS

Management skills required by management levels

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Top Managers

Middle Managers

First-Line Managers

Non-managers (Personnel)

Conceptual Skills “People” Skills Technical Skills

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FUNDAMENTAL MANAGEMENTSKILLS Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal Ability to communicate with, understand, and

motivate both individuals and groups Conceptual

Ability to think in the abstract and to see the organization as a complete unit and to integrate and give direction to its diverse activities so that objectives are achieved

[Griffin 2003]

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FUNDAMENTAL MANAGEMENTSKILLS Diagnostic

Ability to visualize the most appropriate response to a situation

Communication Abilities both to convey ideas and information

effectively to others and to receive ideas and information effectively from others

Decision-Making Ability to recognize and define problems and

opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

[Griffin 2003]

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FUNDAMENTAL MANAGEMENTSKILLS

Time-Management Ability to prioritize work, to work efficiently, and to

delegate appropriately[Griffin 2003]

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CHAPTER CHECKOUT1. For most organisations, top

management consists of ___________ .a. any manager above the level of foreman.b. the chief executive officer, the president, and his vice president.c. the chief executive officer only.d. the chief executive officer and the president only.

2. The management functions are _______.a. planning, organising, staffing, leading controlling.b. organising, selling, accounting, leading, controlling.c. planning, accounting, leading, controlling, organising.d. planning, organising, selling, leading, controlling.

3. The categories of management roles are _______ .

a. figurehead, leader, liaison.b. monitor, disseminator, spokesperson.c. interpersonal, decisional, entrepreneur.d. interpersonal, informational, decisional.

4. The skills that all managers need are ________ .

a. planning, organising, controlling.b. conceptual, technical, human.c. effectiveness, efficiency, planning.d. interpersonal, decisional, informational.

Answers 1.b 2.a 3.d 4.b

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