Page |1

MODULE 2
DECISION MAKING

OVERVIEW

In this module, we will discuss how decision affects the entire construction project.

LEARNING OUTCOMES

At the end of this module, you should be able to:

1. Fathom the field of construction engineering

2. Develop industrial engineering skills, knowledge and expertise, alongside knowledge of business
and management techniques, strategies and concerns.
3. Dissimilate effective decisions in the field.

Effective Decision

Decision making is the fundamental process of management. Only executive make decisions, it is
his authority. Decision-making is only one of the manager’s task. It is but a small fraction of his time.
Decision is a judgement. It is a choice between alternatives. It is a choice of right or wrong.
Managers who make effective decisions know that one does not start with a fact, one start with opinions.
However, opinions are nothing, but untested hypothesis and as such, is worthless unless tested against
reality.
Effective manager knows that unless a decision has degenerated into work, it is not a decision; it
is at best good intention. While the decision itself is based on the highest level of conceptual
understanding, the action to carry it out should be as close as possible to the working level and as simple
as possible.
Right decisions are made in the conflict and arguments between opinions and competing
alternatives. Effective managers, encourages opinions. But he insists that people who has voice out must
also take responsibility for defining what factual findings can be expected and should be looked for.

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 Page |2

The main task of a manager is not administration. It is the making of policy, the making of the
right decision. The first rule in decision making is “one does not make decision unless there is
disagreement”. Right decision demands adequate disagreement first.

Effective Manager

Effective managers are supposed to make effective decisions with significant impact on the entire
organization, its performance and results, defines the manager. The manager does not make great
decisions. He focuses on the important one. He tries to make a few important decisions on the highest level
of conceptual understanding. he is not overly impressed by the speed in making decisions.

Effective decisions must be based on the principle and should be made on the merits of the case.
They should know that the intricate decision is that between the right and wrong compromise and have
learned to distinguish one from the other. They know that the most consuming step in the process is not
the making of decision but how to put it into effect.

Effective managers insist on alternatives, so that he can choose the appropriate one. Unless one
has considered alternatives, one has a closed mind. They constantly monitor the result of the decision to
ascertain that the desired objectives have been achieved. If they have not, the decision maker may have
to restart the entire process, or perhaps a review of the situation may reveal the following:

1. An error in the actual implementation

2. An error in calculation

Decision Process

Effective decisions are made through a systematic process defining clearly the elements in a
distinct sequence of steps. Most successful decision follows a process that consist of the following steps:

1. Identify the problem

2. Specify objectives and decision criteria
3. Develop alternatives
4. Analyze and compare alternatives
5. Select the best alternatives
6. Implement the chosen alternative
7. Monitor results to ensure the desired results are achieved.

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 Page |3

Identify the Problem. It is the focal point of the process. Solution must address the basic problem not the
symptoms. The decision maker must identify the criteria by which proposed solutions will be judged.
Common criteria often relate to:

1. Capital
2. Time
3. Profits
4. Maintenance
5. Return of Investments
6. Increase in costs
7. Risks

The ability to satisfactory handle problems often depends on the degree of success one has in
developing suitable alternatives. Much depends on the experience and creativity of the decision maker as
well as on the nature of the situation.

As a general rule, efforts expended in carefully identifying alternatives can result to substantial
dividends in terms of the overall decision. One alternative that is frequently overlooked possibly because it
seems too simple is to do nothing. The beauty of doing nothing lies not only in the fact that no time or effort
is needed but also in that it may cost nothing and requires no implementation.

Analyzing and comparing alternatives. It is often benefits from the use of mathematical or statistical
techniques.

Selection of the best alternatives. It will depend on the objectives of the decision maker and the criteria
that are being used to evaluate alternatives.

Implementing the chosen solution. Carrying out the actions indicated by the chosen alternatives. If the
alternative selected is to do nothing, no action will be required to implement. There are many decisions that
uses approach by default. By the time they get around to make a decision, it is too late. Decision process
is not always completed in a sequential manner. Instead there is certain amount of back-tracking and
feedback involved especially in terms of developing and analyzing alternatives.

For instance, if none of the alternatives analyzed can achieve the desired result, additional
alternatives must be developed. Or perhaps the problem has not been clearly identified, hence additional
work must be done there as well as on the other steps in the process.

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 Page |4

Reasons why Manager Insist on Disagreement before Decision Making

1. It is only the safeguard against the decision maker’s becoming the hostage of the organization.
Everybody always wants something from the decision maker. They are often believes and has a
faith to the manager to obtain the decision he favors.
2. Disagreement alone can provide alternatives to a decision. A decision without an alternative is like
a desperate gambler’s throw, no matter how carefully thought through it might be, there is always
a possibility that the decision will prove wring at the start or because of a change in circumstances
that makes it wrong. If one has think of alternatives during the decision making process, one has
something to fall back on, something that has already been anticipated, that has been studied, and
understood. Without such an alternative, one is likely to flounder dismally when reality proves a
decision to be inoperative.
3. Disagreement is needed to stimulate the imagination. But the imagination of the high level is not in
abundant supply. Neither is it as scarce as is commonly believed. Imagination needs to be
challenged and stimulated or else, it remains dormant, not being used. Disagreement if forced to
be reasoned, and documented, is the most effective stimulus.

Effective manager organizes disagreement because this will protect him against being taken in by
seemingly honest but false or incomplete information. It gives him the alternative to choose and make
decision. He does not start out with the assumption that he is right or wrong. He starts out with the
commitment to find out why people disagree. The effective executive is concerned first with understanding.
only then, does he think about who is right and who is wrong.

Effective managers know that there are fools around that there are mischief makers. But they do
not assume that the man who disagree with what they themselves sees as clear and obvious, is therefore
either a fool or a naïve.

Each of the decision makers defer in their styles. Some are more radical or more conservative than
others. But generally, they agree on rules. One has to make a decision when a condition is likely to
degenerate if nothing is done. This also applies with a respect to opportunity. If the opportunity is important
and is likely to vanish unless one acts and one makes a radical change.

Every decision must have a comparison in risk of action to the risk of inaction. A decision may not
be pleasant, or is not going to be popular, or not going to be easy. Nut decision requires courage as much
as it requires judgement

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 Page |5

Reasons for Poor Decisions

Sometimes the best efforts of the manager, a decision turns out to be poor due to unforeseeable
circumstances. Although such occurrences are not very common, but more often, failure can be traced on
some combination of the following reasons:

• Errors made in the decision process

• Bounded rationality
• Sub optimism

In many cases, the manager fail to appreciate the importance of each of the above step in the
decision process. Sometimes this is due to a manager’s style of making quick decisions or failure to
recognize the consequences of a poor decision.

The manager’s ego can be a factor. This usually happens after a period that he has experienced a
series of successes when some important decisions turned out right. Under such circumstances, the
manager begun to get the impression that he can do no wrong. He has already that mentality or infallibility
that will commit mistakes, and soon trouble begins. He failed to recognize that some of those successes
were only due to luck than to any special abilities of his own.

Bounded Rationality. It refers to the limit as control on making decision because of costs, human abilities,
time, technology and availability of information.

Sub Optimization. It is the result from each different department’s attempt to reaching a solution that is
optimum the department. Unfortunately, what is optimum to a particular department may not be optimum
for the entire organization as a whole. Managers fail to appreciate the importance of each step in the
decision process that was just outlined. They may skip a step. This might be due to a manager’s style of
making quick decisions or a failure to recognize he consequence of a poor decision.

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 Page |6

Elements of Decision Process

There are five elements in the process of decision making.

1. See if the problem was generic and could only be solved through a decision established by a rule
or principle.
2. Define the specifications which the answer to the problem had to satisfy of the boundary conditions.
3. The thinking through what is right in the solution which will satisfy the specifications before attention
is given to the compromises, adaptations, and concessions needed to make the decision
acceptable.
4. The building into the decision of the action to carry it out.
5. The feedback which tests the validity and effectiveness of the decision against the actual course of
events.

According to the second element in the decision process is clear specifications as to:

• What decision has to be accomplish

• What are the objectives, the decisions has to reach.
• What are the minimum goals it has to attain
• What are the conditions it has to satisfy

A decision to be effective, need to satisfy the boundary conditions. It needs to be adequate to its
purpose. Any serious shortfall in defining this boundary conditions is almost certain to make the decision
ineffectual, no matter how brilliant it may seem.

The next major element in the decision process is converting the decision into action. A decision
will not become effective unless the action commitments have been built into the decision from the start. In
fact, no decision has been made unless carrying it out in specific steps. Until then, these are only good
intentions.

Finally, a feedback has to be built into the decision to provide a continuous testing against actual
events of the expectations that underlie the decision.

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 Page |7

Budgeting the Time

Effective manager know that time is limiting factor. He does not start with planning but with finding
out where his time will actually goes. The daily accomplishments are set by time, the scarcest resource. In
the process, we call accomplishment as time.

Time is a unique resource. Its supply is totally inelastic. No matter how high the demand, the supply
will not go up. There is no price for it. Moreover, time is gone forever and will never come back. Time is
therefore exceedingly short of supply.

The main task in the work of a manager is the time spent working with people. By nature, people
are time consumers and most people are time wasters. To spend a few minutes with people is simply not
productive.

Relations with other knowledge workers are really time consuming. Whatever the reasons,
the knowledge workers makes much greater time wasted than the manual worker on his superior as well
as on his associates. Mixing personal relations and work relations can consume time, the more people
together, the more time will be consumed with interactions. Thus, less time will be available to them for
work for work accomplishments and results.

The larger the organization, the less actual time will the manager will have to manage out of the
little time at his disposal. The more people there are in an organization, the more often does a decision on
a people arise.

Time wastes is often result from over staffing. The symptom of over staffing could be if the
chiefs and the manager in particular spend more of their time, on problems of human relations, on feuds
and frictions, on disputes and questions of cooperation. When the work force is almost certainly too large,
people gets into other’s way. Then people have become an impediment to performance, rather than the
means thereto.

Meetings. Another common time waster is mal-organization its symptoms excess of meetings.
Meetings are defined as concession to deficient organization for one either meets or one works. One cannot
do both things at the same time. We meet because people holding different jobs have to cooperate to get
a specific situation are not available in one head, but have to be pierced together out of the experience and
knowledge of several people.

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 Page |8

First Things First

The one secret of effectiveness is concentration. Effective managers do first things first and they
do one thing at a time. There are always more important contributions to be made than there is time
available to make them. No matter how the manager manages his time, the greater part of it will still not be
his own. Therefore, there is always a time deficit.

When one postpones, one actually abadons. Timing is the most important element in the success
of any effort. To a year later what it would have been smart to do a year earlier is almost a sure recipe for
frustration and failure.

Employee Discipline

Discipline is a means that management uses to bring employees behavior under control. Its
purpose is not retribution or vengeance but to impress upon the employee the need to do things in a
prescribed manner. Discipline is an employer’s action against an employee for infraction of company
policies or rules. The purpose of discipline is preventive; that is to prevent the commission of an act, which
violates the policies, rules and regulations of the company. It is a form of control to protect the interests of
the company as well as those of the employees.

Control within this context has three major dimensions:

1. As a means of establishing awareness on the part of the employees regarding the proper behavior,
attitude, and conduct in their jobs.
2. As a means of establishing an atmosphere conducive to working together efficiently.
3. As a means of correcting or reforming employees who commits any refraction or violation of the
company rules and regulations.

The objective of the discipline is to educate the employees in the fundamental standards of
behavior and performance. The employees should therefore be made to realize that the rules and
regulations are enforced for their own benefit and not merely to punish them. Its aim is to correct or reform
the employee, not to penalize him.

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 Page |9

Principles of Discipline

1. Disciplinary actions should not be taken unless there is an obvious necessity for it.
2. The reason for disciplinary action should be made clear.
3. Give the man a chance to present his side of the story, and do not argue.
4. There should be no favoritism or discrimination in any disciplinary action.
5. Reprimand should be given as soon as possible after the occurrence of the act. Right timing is
important, but first have all the facts.
6. Forgive and forget. When disciplinary action has been given, the supervisor should resume a
normal attitude toward the offending employee.
7. Never discipline anyone in the presence of others.
8. The discipline that is inflicted must be just, but sufficiently severe to meet the requirements of the
situation.
9. Disciplinary measured should be applied by the immediate superior of the employee affected,
rather than by some other higher executive.
10. In general, negative disciplinary action cannot be successfully applied to large groups of employees
representing a substantial portion of one’s organization. If there is poor discipline among a large
group, it is possible that there is something vitally wrong in the situation. The remedy is correction
of the situation, not disciplinary action.
11. In determining the nature of degree of disciplinary action that is made necessary by some improper
act of an employee, the intent should be considered.
12. Discipline should be constructive it should show the offender how to correct his error and leave him
willing and anxious to improve rather than feel bitter and resentful.
13. Except in cases of extremely serious offenses, no disciplinary action should be permitted to take
place until the supervisor has actually talked the situation over with the employee.
14. Disciplined should not be administered on an entirely routine basis.
15. Each case should be treated individually. You cannot discipline a group to teach some offenders.
16. Motivation is a secret of good discipline. When a man is sufficiently motivated, discipline will take
care of itself.

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 P a g e | 10

Activity 2

Name: Year & Section: Date:

Instruction: Answer the question in an Essay form. Use short bond paper

1. Explain the elements in Decision making

2. Write the principles of discipline.

3. How can you say if the manager has an ability to become effective decision maker?

Required Readings:

https://www.educba.com/uses-of-autocad

https://en.wikipedia.org/wiki/AutoCAD

Mastering AutoCAD 2019, Brian C. Benton 2018

Write your feedback on this module below:

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 P a g e | 11

SUMMARY.

Effective Decision

Decision making is the fundamental process of management. Only executive make decisions, it is
his authority. Decision-making is only one of the manager’s task. It is but a small fraction of his time.
Decision is a judgement. It is a choice between alternatives. It is a choice of right or wrong.
Managers who make effective decisions know that one does not start with a fact, one start with opinions.
However, opinions are nothing, but untested hypothesis and as such, is worthless unless tested against
reality.
Effective manager knows that unless a decision has degenerated into work, it is not a decision; it
is at best good intention. While the decision itself is based on the highest level of conceptual
understanding, the action to carry it out should be as close as possible to the working level and as simple
as possible.

Effective Manager

Effective managers are supposed to make effective decisions with significant impact on the entire
organization, its performance and results, defines the manager. The manager does not make great
decisions. He focuses on the important one. He tries to make a few important decisions on the highest level
of conceptual understanding. he is not overly impressed by the speed in making decisions.

Decision Process

Effective decisions are made through a systematic process defining clearly the elements in a
distinct sequence of steps. Most successful decision follows a process that consist of the following steps:

1. Identify the problem 5. Identify the problem

2. Specify objectives and decision criteria 6. Specify objectives and decision criteria
3. Develop alternatives 7. Develop alternatives
4. Analyze and compare alternatives 8. Analyze and compare alternatives

Reasons why Manager Insist on Disagreement before Decision Making

1. It is only the safeguard against the decision maker’s becoming the hostage of the organization.
Everybody always wants something from the decision maker. They are often believes and has a
faith to the manager to obtain the decision he favors.
2. Disagreement alone can provide alternatives to a decision. A decision without an alternative is like
a desperate gambler’s throw, no matter how carefully thought through it might be, there is always
a possibility that the decision will prove wring at the start or because of a change in circumstances
that makes it wrong. If one has think of alternatives during the decision making process, one has

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 P a g e | 12

something to fall back on, something that has already been anticipated, that has been studied, and
understood. Without such an alternative, one is likely to flounder dismally when reality proves a
decision to be inoperative.
3. Disagreement is needed to stimulate the imagination. But the imagination of the high level is not in
abundant supply. Neither is it as scarce as is commonly believed. Imagination needs to be
challenged and stimulated or else, it remains dormant, not being used. Disagreement if forced to
be reasoned, and documented, is the most effective stimulus.

Reasons for Poor Decisions

Sometimes the best efforts of the manager, a decision turns out to be poor due to unforeseeable
circumstances. Although such occurrences are not very common, but more often, failure can be traced on
some combination of the following reasons:

• Errors made in the decision process

• Bounded rationality
• Sub optimism

Elements of Decision Process

There are five elements in the process of decision making.

1. See if the problem was generic and could only be solved through a decision established by a rule
or principle.
2. Define the specifications which the answer to the problem had to satisfy of the boundary conditions.
3. The thinking through what is right in the solution which will satisfy the specifications before attention
is given to the compromises, adaptations, and concessions needed to make the decision
acceptable.
4. The building into the decision of the action to carry it out.
5. The feedback which tests the validity and effectiveness of the decision against the actual course of
events.

Budgeting the Time

Relations with other knowledge workers are really time consuming. Whatever the reasons,
the knowledge workers makes much greater time wasted than the manual worker on his superior as well
as on his associates.

Time wastes is often result from over staffing. The symptom of over staffing could be if the
chiefs and the manager in particular spend more of their time, on problems of human relations, on feuds
and frictions, on disputes and questions of cooperation

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME
 P a g e | 13

Meetings. Another common time waster is mal-organization its symptoms excess of meetings.
Meetings are defined as concession to deficient organization for one either meets or one works. One cannot
do both things at the same time. We meet because people holding different jobs have to cooperate to get
a specific situation are not available in one head, but have to be pierced together out of the experience and
knowledge of several people.

Employee Discipline

It is a form of control to protect the interests of the company as well as those of the employees.

Control within this context has three major dimensions:

1. As a means of establishing awareness on the part of the employees regarding the proper behavior,
attitude, and conduct in their jobs.
2. As a means of establishing an atmosphere conducive to working together efficiently.
3. As a means of correcting or reforming employees who commits any refraction or violation of the
company rules and regulations.

The objective of the discipline is to educate the employees in the fundamental standards of
behavior and performance. The employees should therefore be made to realize that the rules and
regulations are enforced for their own benefit and not merely to punish them. Its aim is to correct or reform
the employee, not to penalize him.

REFERENCES

97 Things Every Engineering Manager Should Know: Collective Wisdom from the Experts, Camille
Fournier 2019

Engineering Management in a Global Environment: Guidelines and Procedures, M. Kemal Atesmen

2017

Engineering Management: Meeting the Global Challenges, C. M. Chang Second Edition 2016

Engineering Project Management for the Global High Technology Industry, Sammy G Shina 2013

Managing Engineering and Technology Daniel Bobcock, New York 2002, pdf
Project management for business and engineering, John M. Nicholas 2001
Engineering Management IE 256 PDF
Engineering Management by Roberto Medina pdf
Project Management for Engineering and Construction Second Edition Garold D. Oberler, Ph., D.,
USA, 2000
Project Construction Management Second Edition Max Fajardo, Philippine Copyright 2000

University of Eastern Philippines – Laoang Campus

Department of Engineering
CE 324 – Engineering Management Module 2
Engr. RICA B. GIRAY, RME