4/7/2022

NAME-479 Engineering Management

Conducted by:
Cdre M Muzibur Rahman, (E), psc, PhD, BN (Retd)

References:
Engineering Management – A K Gupta
Management Fundamentals – Robert N. Lussier
Operational management for competitive advantage – chase Aquilano Jacobs.
Management – Jams A. F. Stoner, R, Edward Freeman, Daniel R Gilbert.
Management – Stephen P. Rubbiins, Mar Conlter, Robiin Stuart kotze.
Industrial management – John Christie Duncan
Financial Management – J.K. Shim & J.G. Siegel
Managerial Accounting – R. H. Garrison & E. W. Noreen
Corporate Finance – Stephen A. Ross
Essentials of Organizational Behavior – by Stephen P Robins
Fundamentals of Process of Management – ABM Rashiduzzaman

Cdre Muzib, psc, PhD

Course Outline
Ser Topic Lecture Remarks
1 Principles of Management 1-4
2 Human Resource Management 4-7
3 Class test -1 7 As convenient
4 Organizational Behavior 8-11
5 Marketing Management 12-15
6 Class test-2 15 As convenient
7 Financial Management 16-20
8 Assignment discussion 20 Case study
9 Time Value of Money 21-25
10 Capital Investment 26-28
11 Mid term Exam 29 Theory and Problem
12 Strategic Management 29-36
13 Class Test-3 36 Problem
14 Assignment submission 37 Hand written
15 Management Ethics 37-40
16 Revisions 41-42
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Part-1: Principle of Management

What is Management?
Directing the actions of a group to achieve a goal in most efficient manner.
Getting things done through people.
Process of achieving organizational goals by working with and through people and organizational
resources.
The process which performs planning, organizing, staffing, directing and controlling.
Thus, management is a set of activities directed at an organization’s resources (human,
financial, physical and informational) with the aim of achieving organizational goals in an
efficient and effective manner.

What to manage? – M4
 Men (technicians, staff, workers, etc)
 Materials (Land, plants, products, equipment, raw materials, tools, etc)
 Moments (Time)
 Money (capitals, costing, pricing, profit, etc)

In most of the cases, these four elements of management are inter-related/inter-dependent.

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Management: Origins
Management was originated with just civilization

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Venetian Greek Egyptian Babylonian Sumerian Chinese

China

Cdre Muzib, psc, PhD

Management Functions :
Planning (Decision making): Selecting missions and objectives as well as the
actions to achieve them, which requires decision making.
Organizing: Establishing and intentional structure of roles for people to fill in
an organization.
Leading (Motivating): Influence people, so that they will contribute to
organizational and group goals.
Controlling: Measuring and correcting individual and organizational
performance to ensure that events conform to plans.

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Management Functions

Most managers engage in more than one activity at the same time
Cdre Muzib, psc, PhD

Role Differences Between Engineers and Managers

P osition E ngineer
Focu s M ore concerned w ith
things technical/scientific
Decisio n m aking M akes decisions w ith
m uch inform ation, under
conditions of greater
certainty
Involve m ent W orks on ta sks and
problem s solving
personally
P rocess outcom es W ork based on facts with
quantifiable outcom es
E ffectivene ss D epends on person
technical expertise,
attention to detail,
m athem atical/technical
problem so lving, and
decision m aking
Cdre Muzib, psc, PhD
M an ag er
M ore concerned w ith
people
M akes decisions often
w ith inadequate
inform ation , u nder
conditions of greater
uncertainty
D irects the w ork of
others to goa ls
W ork b ased on fe wer
facts, less m easura ble
outcom es
D epen ds on
interpersonal skills in
com m unication, con flict,
m anagem ent, getting
ideas across,
negotiating, and
coaching

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Role Differences Between Engineers and Managers

Philosophical Similarities Between Engineering and Management

 Both engineers and managers are trained to be decision makers in a complex environment.
 Both allocate resources for the operation of existing systems or for the development of new systems.
 Both have to recognize, identify and evaluate the interactions among system components.

Cdre Muzib, psc, PhD

Engineers Versus Managers

W h a t E n g in e e rs D o
M in im iz e ris k
E m p h a s ize a cc u ra cy a n d m a th e m a tica l
p re cisio n
E xe rc ise c a re in a p p ly in g so u n d
scie n tific m e th o d s o n th e b a s is o f
re p ro d u cib le d a ta
S o lv e te ch n ic a l p ro b le m s b a s e d o n
th e ir o w n in d iv id u a l s kills
W o rk la rg e ly th ro u g h th e ir o w n a b ilitie s
to g e t th in g s d o n e
W h a t M a n a g e rs D o
T a k e c a lcu la te d ris ks
R e ly h e a vily o n in tu itio n , ta k e e d u ca te d
g u e ss e s, a n d try to b e "a b o u t rig h t"
E xe rc ise le a d e rs h ip in m a kin g
d e cis io n s u n d e r w id e ly va ryin g
c o n d itio n s b a s e d o n s ke tch y
in fo rm a tio n
S o lv e te c h n o -p e o p le p ro b le m s b a s e d
o n s kills in in te g ra tin g th e ta le n ts o f
o th e rs
W o rk th ro u g h o th e rs to g e t th in g s d o n e

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Reasons an engineering background can help prepare for a management position

1. Engineers: logical, methodical, objective, and make unemotional decisions based on facts;
2. Use their technical knowledge to check the validity of information;
3. Can analyze problems thoroughly, look beyond the immediate ones, and ask good questions
for alternative solutions to technical problems;
4. Understand what motivates engineers/technicians.
5. Can review and evaluate the work of their subordinates since they understand what they are
doing.
6. Can engage in future planning with appropriate consideration for technology and its
relationship to cost effectiveness.
7. Engineering backgrounds help in technical discussions with customers.
8. Their background increases the manager's credibility with subordinates, customers, and
superiors.

Cdre Muzib, psc, PhD

Engineering Management needs:

Interaction of:
• Objectives
• Resources,
• Methods,
• Organization setting and
• People

Successful engineering managers require

training and experience in both business and
engineering for effectiveness and efficiency in
problem solving and operations for the
improvement of organization.
Engineering managers are trained to
understand human resource application,
finances, industrial psychology, quality control,
operations research and environmental issues.

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Characteristics of good managers

Proactive vs. Reactive - visionary and thinking three steps ahead and working to master own
environment with the goal.
Flexible/Adaptable - adapting to new surroundings and situations, doing the best to adjust timely.
A Good Communicator - highly capable in oral and written communication, must listen...a lot, and
must be willing to understand the needs and desires of others.
Respectful - treating others with respect, which will earn self respect.
Enthusiastic - motivated and excited about the cause for which people will be more inclined to
follow.
Open-Minded - consider all options when making decisions , evaluate inputs from all parties and
work for the betterment of the whole, not a part.
Rewarding - recognize the efforts of others and reinforce those actions.
Well Educated - Knowledge is power. To be well educated on community policies, procedures,
organizational norms, etc. Further, the knowledge of issues and information will increase the
success in managing others.

Cdre Muzib, psc, PhD

Continued…
Characteristics of good managers
Open to Change - willing to change a policy, program, cultural tradition that is out-dated, or no
longer beneficial to the organization as a whole.
Interested in Feedback - How do people feel about? How can you improve? View feedback as a
gift to improve, not a botheration.
Evaluative - constantly evaluate and change programs and policies that are not working.
Consistent - being consistent. People must have confidence that their opinions and thoughts will
be heard and taken into consideration.
Delegator - realize that everything cannot be accomplished by own, thus delegating tasks
accordingly.
Initiative – The leader should work as a motivator, an initiator, and must be a key element in the
planning and implementing of new ideas, programs, policies, events, etc.
Honest and Integral – Dishonesty will lead to ruin the managers and the organization will fall
into distress.

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Characteristics of managers: Boss Vs Manager

/ Manager

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- Make long-range plans

Chairman, President, - Establish policies
CEO, MD, - Represent company, org

Production Manager, - Implement goals

Controller, Marketing
Manager, Sales
Top - Make decisions
- Direct first-line managers
Manager Managers - Implement plans
Office Manager, - Oversee staff, workers
Supervisor, Foreman, - Assist middle managers
Department Head Middle
Managers

First-line
Managers
Management Pyramid
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Management Levels
Level Type of Job
 Directly supervise non-managers.
 Carry out the plans and objectives of higher management using the personnel and
other resources assigned to them.
First-line Managers  Short-range operating plans governing what will be done tomorrow or next week,
assign tasks to their workers, supervise the work that is done, and evaluate the
performance of individual workers.

 Manage through other managers.

 Make plans of intermediate range to achieve the long-range goals set by top
management, establish departmental policies, and evaluate the performance of
subordinate work units and their managers.
Middle Management  Provide an integrating and coordinating function so that the short-range decisions
and activities of first-line supervisory groups can be arranged toward achievement
of the long-range goals of the enterprise.

 Responsible for defining the character, mission, and objectives of the enterprise.
 Establish criteria for and review long-range plans.
 Evaluate the performance of major departments, and they evaluate leading
Top Management
management personnel to gauge their readiness for promotion to key executive
positions.
Cdre Muzib, psc, PhD

Managerial Skills:
Managers need four types of skills:
Technical: Specific subject related skills such as engineering, accounting, etc…
Interpersonal: Skills related to dealing with others and leading, motivating, or controlling them
Conceptual: Ability to recognize the critical factors that will determine as organization’s success or
failure.
Diagnostic & Decision making: Ability to see the forest in spite of the trees and choose the best.

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Scientific Management
Frederick Taylor’s Four Principles of Scientific Management
I. Develop a scientific way for each element of an individual’s work, which replaces
the old rule-of-thumb method.
II. Scientifically select and then train, teach, and develop the worker.
III. Heartily cooperate with the workers so as to ensure that all work is done in
accordance with the scientific way that has been developed.
IV. Divide work and responsibility almost equally between managers and workers.
Managers take over all work for which it is better fitted than the workers.

Cdre Muzib, psc, PhD

Scientific Management
Criticism to Scientific Management

– Fails to appreciate social context of work and higher needs of workers

– Managers called it unwarranted interference in managerial
privileges/rights
– Fails to acknowledge the variance among individuals
– Fails to recognize the ideas and suggestion of workers.

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Henry Fayol, perhaps the father of modern management theory is a French industrialist.
He gave following fourteen principles of management.

01. Specialization of labor: Principle of work allocation and specialization in order to concentrate
activities to enable specialization of skills and understandings, more work focus and efficiency
02. Authority with corresponding responsibility: If responsibilities are allocated then the post
holder needs the requisite authority including the right in the area of responsibility to
undertake duties.
03. Discipline: Discipline means following rules, obedience and respect for the agreements
between the firm and its employee. Discipline also involves sanctions judiciously applied in the
organizations.
04. Unity of command: The idea is that an employee should receive instructions from one superior
only. The basic concern is that tensions and dilemmas arise where we report to two or more
bosses.
05. Unity of direction: Each group of activities should have one objectives and should be unified by
having one plan and one head.

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06. Subordination of individual interests to general interest: The interest of one employee or a
group should not take precedence over the organization.
07. Remuneration: To maintain the loyalty and support of workers, all employees receive fair
payment for services, not what the company can get away with.
08. Scalar Chain (line of authority): It is the chain of communication from top management ranging
from the ultimate authority to the lowest ranks.
09. Order: Everything should be in right place at right time.
10. Personnel Tenure: Time is needed for the employee to adapt to his/her work and perform it
effectively. Stability of tenure promotes loyalty to the organization, its purposes and values.
11. Centralization: Centralization is the degree to which subordinates are involved in the decision-
making. It belongs to the natural order of things.
12. Equity: Equity, fairness and a sense of justice "should” pervade the organization in principle and
practice
13. Initiative: At all levels of the organizational structure, zeal; enthusiasm and energy are enabled
by people having the scope for personal initiative.
14. Esprit de corps: This means team sprit, harmony and unity within org.

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To learn 14 points please remember DAD U C USSR O I SEE

D-Division of work
A-Authority & responsibility
D-Discipline

U-Unity of command

C-Centralization & Decentralization

U-Unity of direction
S-Scalar chain
S-Stability of tenure
R-Remuneration

O-Order

I-Initiative

S-Subordination of individual interest over greater interest

E-Equity
E-Esprit de corps
Cdre Muzib, psc, PhD

Management Perspectives
• Classical: Scientific (individual workers) and Administrative
(whole organization)
• Behavioral: Individual attitudes and behaviors and group
processes
• Quantitative: Applies quantitative/mathematical techniques to
management.
• Integrated: All three perspectives must be integrated for best
performance (Systems and Contingency perspectives)

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Classical
Perspective

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Behavioral
Perspective

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Behavioral Perspective: Theories X and Y

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Quantitative Perspective

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Integrated Perspective
Contemporary management seeks to integrate these approaches (Classical,
behavioral and quantitative approaches) in ways that suit the particular
organization at a particular time. All three perspectives take the integration
approach through systems theory and contingency theory.
The systems approach describes the organization as a system that transforms
inputs (material, human, financial and information resources) into outputs
(e.g. products/services, profits/losses, employee behavior and information) by
use of managerial and technological processes. The overall system can be
broken into sub-systems, such as production and finance. The objectives are
effective and efficient operation of each sub-systems, to maximize the
synergy and to avoid entropy.
The contingency approach suggests that the best managerial approach to each
particular situation is dependent on a large number of elements and therefore
managers should seek the approach that best suits the specific situation they
are facing. The text suggests that the broader approaches to management
taken by the systems and contingency approach have most relevance to the
manager of the 21st century who faces complex and rapidly changing
environments. Cdre Muzib, psc, PhD

Integrated Perspective

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Contemporary Perspective

Theory Z: A concept that combines the positive

aspects of American and Japanese management into
a modified approach aimed at increasing U.S.
managerial effectiveness while remaining compatible
with norms and values of the American society and
culture.
Developed by William Ouchi

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Management
system:
Japan vs US

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Theory A (American) Theory J (Japanese)

Short-Term Employment
Individual Decision Making
Individual Responsibility
Rapid Evaluation and Promotion
Explicit Control Mechanisms
Specialized Career Path
Segmented Concern for Employee
as a Person
Lifetime Employment
Collective Decision Making
Collective Responsibility
Slow Evaluation and Promotion
Implicit Control Mechanisms
Nonspecialized Career Path
Holistic Concern for Employee
as a Person

Theory Z (Modified American)

Long-Term Employment
Collective Decision Making
Individual Responsibility
Slow Evaluation and Promotion
Implicit, Informal Control with
Explicit, Formalized Measures
Moderately Specialized Career Paths
Holistic Concern, Including Family

What about Bangladesh?

Cdre Muzib, psc, PhD

Management styles
• Autocratic style: It is highly directive and less concerned with
relationships. The autocratic style is appropriate when interacting with
low-capability employees. When interacting with such employees, give
very detailed instructions describing exactly what the task is and when,
where, and how to perform it. Closely oversee performance and give
some support. Make decisions without input from the employees.

• Consultative style: It involves highly directive and highly supportive

behavior and is appropriate when interacting with moderately capable
employees. Give specific instructions and oversee performance at all
major stages of a task. At the same time, support the employees by
explaining why the task should be performed as requested and
answering their questions. Work on relationships as you explain the
benefits of completing the task your way. Give fairly equal amounts of
time to directing and supporting employees. When making decisions,
you may consult employees, but retain the final say. Once you make the
decision, which can incorporate employees’ ideas, direct and oversee
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• Participative style: It is characterized by less directive but still highly

supportive behavior and is appropriate when interacting with employees
with high capability. When interacting with such employees, spend a
small amount of time giving general directions and a great deal of time
giving encouragement. Spend limited time overseeing performance,
letting employees do the task their way while focusing on the end result.
If a task needs to be done, don’t tell them how to do it; ask them how
they will accomplish it. Make decisions together or allow employees to
make decisions subject to your limitations and approval.

• Empowering style: It requires providing very little direction or support

for employees and is appropriate when interacting with outstanding
employees. Let the employees know what needs to be done and answer
their questions; but it is not necessary to oversee their performance.
Such employees are highly motivated and need little, if any, support.
Allow them to make their own decisions, subject to your approval. Other
terms for empowerment are laissez-faire and hands-off. A manager who
uses this style lets employees alone to do their own thing.
Cdre Muzib, psc, PhD

Management Context:
• External : Everything outside an organization that might affect it.
• Task : Integral and related to project
• Internal : The conditions and forces within an organization.

Management Environment:
• General Environment: The set of broad dimensions and forces
in an organization’s surroundings that create its overall context
• Task Environment: Specific organizations or groups that affect
the organization.

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The General Environment

• The Economic Dimension: The overall health of the economic
system in which the organization operates.
• The Technological Dimension: The methods available for
converting resources into products or services.
• The Sociocultural Dimension: The customs, mores, values, and
demographic characteristics of the society in which the
organization functions.
• The Political-legal Dimension: The government regulation of
business and general relationship between business and
government.
• The International Dimension: The extent to which an organization
is involved in or affected by business in other countries.

Cdre Muzib, psc, PhD

The Task Environment

• Competitor: Competes for resources.
• Customer: Whoever pays money to acquire an organizations
products or services.
• Supplier: Provides resources.
• Regulator: A unit that has the potential to control, legislate, or
otherwise influence the organization’s policies and practices
• Regulatory Agency: An agency created by the government to
regulate business activities.
• Interest Group: A group formed to attempt to influence business.
• Strategic Ally: Another organization working in a joint venture or a
similar arrangement.

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