Management Functions: * Planning (Decision making) © Organizing + Leading (Motivating) * Controlling Role Differences between Engineers and Managers: * Focus * Decision making + Involvement * Process outcomes * Effectiveness * Dependency + Responsibility + Creativity * Bottom line Engineering Management needs: * Objectives + Resources * Methods + Organization setting + People Characteristics of good managers: * Proactive vs. Reactive + Flexible/Adaptable * AGood Communicator + Respectful * Enthusiastic * Open-Minded + Rewarding+ Well Educated * Open to Change * Interested in Feedback * Evaluative * Consistent + Delegator * Initiative * Honest and Integral Managerial Skills: * Technical * Interpersonal * Conceptual * Diagnostic & Decision making Management Perspectives: * Classical * Behavioral * Quantitative + Integrated Management styles: * Autocratic style * Consultative style * Participative style * Empowering style HRM cycle: * Plan * Recruit and Select * Clarify Job Responsibilities * Educate and Development * Assess Performance* Recognize and Reward * Farewell Operative Functions of HRM: * Procurement + Training and Development * Compensation + Integration * Maintenance + Separation Factors of motivation: + Pay/Salary/wages + Appreciation of hard work * Sense of achievement * Responsibility and empowerment * Opportunity for advancement * Sense of challenge and enjoyment Maslow’s Need Hierarchy Theory: + Self-Actualization + Esteem Needs * Social Needs * Safety Needs * Physiological NeedsHerzberg’s Two-Factor theory: Satisfiers Hygiene theory ‘Achievement Pay and benefits Recognition ‘Company policy and administration Responsibility Relationship with co-workers Work Supervision Promotion Status Growth Job security Working condition Personal life Reinforcement Theory: * Positive Reinforcement * Negative Reinforcement * Punishment + Extinction Benefits of Proper Compensation: * Attracts talent + Motivates Employees * Rewards Performance * Reduces Turnover * Manages Compensation Budget Concepts of Wages as Compensation + Minimum Wage ° Fair Wage + Living Wage * Team based Pay + Remunerating Professionals * Contract Employees* Expatriates and Executives Organiziny + Ensure that important work is done * Provide continuity + Form basis for salary administration * Aid delegation * Promote growth and diversification + Encourage teamwork + Stimulate creativity Functions of Organizing: * Organizing Own Workplace + Develop Organizational Structures © functional discipline product/regional matrix oo°0 team © network * Delegating work + Establishing relationships Methods to eliminate silo effect: * Manufacturing sign-off, + Focus on opportunity not crisis, * Develop cross-functional team, * Integrate/Combine both functions into one department Cross-Functional Team: + Create an optimum product in the shortest time, at the lowest cost, while satisfying constraints and meeting customers’ needs.Benefits of Cross-Functional Teams: * Reduction of product development time: 30% to 70% * Reduction of number of engineering changes: 65% to 90% * Reduction of time to market: 20% to 90% + Improvement in product quality: 200% to 600% Cross-Functional Team Formation: * Team Discipline + Team Learning + Team Effectiveness ELEMENTS OF DELEGATION: * ASSIGNMENT OF RESPONSIBILITY. © GRANT OF AUTHORITY © CREATION OF ACCOUNTABILITY Type of Conflicts: + Technical (e.g., design, analysis, results interpretation) * Operational (how to do tasks, who is responsible?) + Emotional (ego involvement, hurt feelings) * Political How to Resolve Conflicts: * Dominance * Compromise * Collaboration Product — Customer Solution Price — Customer Cost Place — ConveniencePromotion — Communication Marketing management concept: + Needs, Wants, and Demands * Products and Services * Value, Satisfaction * Exchange, Transactions, and relationships * Markets Marketing management philosophies: * Production concept * Product concept * Selling concept * Marketing concept * Social marketing concept Difference between selling & marketing * Selling: trying to get the customer to want what the company produces. + Marketing: trying to get the company produce what the customer wants. Societal marketing concept: * Society (Human welfare) * Company (Profits) * Customers (Wants satisfaction) Core Concepts of Marketing Management: STP Types of Products: * Consumer Products * Service products + Industrial ProductsProduct Life Cycle: * Product Development * Introduction * Growth + Maturity * Decline Product Development Sequence: + Marketing * Design Engineering * Production Engineering * Service organization * Production Benefits of Branding: + Recognition + Trust * Confidence * Status * Comfort + Warmth of feeling Functions of Branding: * Improves Recognition * Creates Trust + Supports Advertising * Builds Financial Value * Inspires Employees * Generates New CustomersObjectives of Promotion * To Inform * To Influence * Market Prevention * Market Expansion * To Introduce About Product and Brand * To Defeat the Competitor * To Create Demand * To Increase Image Strategic management process: + Forming a vision and a mission * Setting up objectives/goals * Crafting a strategy to achieve the desired outcomes. + Implementing and executing the chosen strategy efficiently and effectively. * Evaluating performance and initiating corrective adjustments in vision. Well-stated vision statements * Are distinctive and specific to a particular organization * Avoid generic language * Excite strong emotions + Are challenging, uncomfortable, nail biting Four Elements in the Mission Statement + Purpose + Strategy * Values * Behaviour standards Fundamental Question for the Choice of Goals © Profitability (net profits) * Efficiency (low costs)* Market Share © Growth (e.g., increase in total assets, sales, etc.) * Shareholder Wealth (dividends plus stock price) © Utilization of Resources (e.g., ROE, RO!) © Reputation * Contribution to Stakeholders (e.g., employees, society) © Survival (avoid bankruptcy) Capital Investment Projects are: * Independent © Mutually exclusiveCapital Budgeting Stages © Identification stage: Need of investment * Search stage: Scope of investment * Information-acquisition stage: Data collection on cash flow * Selection stage: Choice of the best among available options © Financing stage: Funding/fund collection * Implementation and control stage: Execution Payback method is a poor method Ignores © time value of money © Expected cash flows beyond payback period ARR Ignores © cash flow from investment * affected by non-cash items such as bad debts and depreciation © This technique does not adjust for the risk to long term forecasts. * ARR doesn't take into account the time value of money Problems of Internal Rate of Return (IRR) © When projects have non-normal cash flows, multiple IRRs may occur © Itis difficult to address mutually exclusive projects. * Moreover, reinvest issue is not considered in IRR method. Two types of ethics: * Descriptive Ethics * Prescriptive Ethics Some ethical principles are: © Truthfulness * Honesty * Loyalty © Respect© Fairness © Integrity Lawrence Kohiberg’s theory * Level 1: Pre-conventional © Stage 1: Obedience (©. Stage 2: Quid pro quo (2 favor for a favor", "give and take", "tit for tat" * Level 2: Conventional (© Stage 3: Sociability (Friendliness) ©. Stage 4: Law and Order * Level 3: Principled ©. 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