UNIT-1

Engineering Management
Sub Code: CS5CO5
Fifth Semester , CSE

Course Coordinator : Dr Yuvaraju B N

Courtesy: Prof. Anandhi, CII Institute of Logistics
Objectives of the chapter
 Understanding management concepts
 Characteristics of management
 Functions of management
MANAGEMENT
 Management is the attainment of organizational goals in
an effective and efficient manner through planning,
organizing, staffing, directing and controlling
organizational resources.
 Organizational resources include men(human beings),
money, machines and materials.
Definitions
 Louis E Boone & David L Kurtz- The use of people and
other resources to accomplish objectives.
 Mary Parker Follet- the act of getting things done through
people.
 Frederick Taylor defines Management as the art of
knowing what you want to do in the best and cheapest way.
Characteristics
 Management is considered as a universal process
 Social
 Religious
 Political
 Military
 Commercial
 Educational
 Every organization whose aim is to achieve its goals through
group efforts , needs planning , coordination, control and
direction called Management!
Characteristics
 Management is a goal oriented
 Management is always aimed at achieve stated goals
Characteristics
 Management is a social process.
 Dealing with human being emotions and, talents, attitudes,
culture, ethos education etc.
Characteristics
 Management is a intangible
 Management can not be touched it is felt. It does
not have physical presence
Characteristics
 Management is dynamic
 It is dynamic and on going process, success is a journey not a
destination. The cycle of management continues to operate to
achieve group goals
Characteristics
 Management is an creative activity
 Management provides creative ideas and new
imagination apart from giving progressive vision to
group efforts.
Characteristics
 Management aims at the accomplishment of
predetermined objectives.
 Management is both a science and an art.
 Management is a group activity
 Management is a profession
 Management integrates human and other resources.
Scope of Management
The scope of the Managememt basically means the broad
areas of concern
 An economic resource
 A system of authenticity
 A class or elite
An economic resource

 In Modren organizations, the effective use of 5M’s of

management
 1.M: Money
 2. M: Manpower
 3. M: materials
 4. M : machinery
 5. M: Methods
 Depends to the great extent on the quality of
management, 5M s are combined together to produce
desired results.
A system of authenticity

 It is a rule-making and rule enforcing body , it is

bound together by a web of relations between
supervisors and subordinates .
 People are bound by authority relationship rather than
any other kind of relationship.
 Managers working at top level enjoy more authority
than people working at lower level.
Management as a class or elite
 Managers constitute a class of professionals, who are
considered elite all over the world
Steps in MBO
 To establish long-term and short-tem organizational goals
 To establish long-term and short-term objectives for each
manager, clarifying the key performance standards
 Periodic review of performance
 Encouraging managers to accept responsibility
Benefits of MBO
 The need for planning will be recognized
 It provides for objectives and accountability for
performance
 It encourages participative management
 It helps in job enrichment
 It provides for a good feedback system
 Management involves effective and efficient use of
resources
Scope of the management in various areas of
work (or) functional areas of management
 Production/Organization management
 Financial Management-fund raising
 HRD
 Marketing Management
 Maintenance management
 Material management and purchasing
 Transport Management
 System management
 Rural management
 Office Management
FEATURES
 Management involves five functions
 These functions are organised to achieve organisational
goals.
 Management involves effective and efficient use of
resources
FUNCTIONS OF MANAGEMENT
 FORECASTING
 PLANNING
 ORGANIZING
 STAFFING
 DIRECTING
 CONTROLLING
 COORDINATING
 COMMUNICATION
 LEARDERSHIP
 DECISION MAKING
PLANNING

• Planning is determining the objectives and formulating

the methods to achieve them. It is more simply said than
done. A job well planned is half done. During planning
one needs to ask oneself the following:
• What am I trying to accomplish i.e. what is my objective?
• What resources do I have and do I need to accomplish the
same?
• What are the methods and means to achieve the
objectives?
• Is this the optimal path?
• With out the planning, an activities of an enterprises may
become confused!!
• EX air coolers , how many? What capacity, before summer!
 Types of Planning
• Purposes or missions,
• Objectives-It is the ultimate goal towards which the activities of the
organization are directed
• Strategies-general program of action and deployment of resources
• Policies-general statement or understanding which guide or channel
thinking in decision making
• Procedures-states a series of related steps or tasks to be performed in
a sequential way
• Rules-prescribes a course of action and explicitly states what is to be
done
• Programs-comprehensive plan that includes future use of different
resources
• Budgets-statement of expected results expressed in numerical terms
Principles of Planning
 Take Time to Plan
 Planning can be Top to Down or Bottom to Top
 Involve and Communicate with all those Concerned
 Plans must be Flexible and Dynamic
 Evaluate and Revise
Organizing
 When complete planning is done, it is time to arrange
money, material, machines , Men etc
 Determine all activities
 Division or grouping of all these activities
 Selecting people for particular job with required skills
 Organizing means establishing relationship between
people, work and resources and coordinating these
activities
 It is noted that while planning refers to what a
mangement wants to do, organizing means providing
right platform to achieve the plan
Process of Organizing
 Determine what is to be done/ Division of Work:
 Assign Tasks: Departmentalization:
 Link Departments: Hierarchy Development:
 Decide how much Authority to Designate/ Authority,
Responsibility and Delegation:
 Decide the Levels at which Decisions are to be made /
Centralization vs. Decentralization:
 Decide how to Achieve Coordination:
Staffing
1. Staffing means filling up the positions by appointing
competitive and qualified persons for the job.
2. Staffing involes
1. Recruitment
2. Selection
3. Placement
4. Training
5. Development of personnel
6. Developing system for salary structure
7. Evaluating employee performance(appraisal)
Coordination
 In a large organization, many departments and a large
number of workers working at various levels, in this
situation there is a need to coordinate to achieve
common goals
Techniques for achieving
coordination.
 Clear cut objectives
 Good human relationship of managers
 Coordination by Rules or Procedures
 Coordination by Targets or Goals:
 Coordination through the Hierarchy
 Coordination through Departmentalization
 Using a Staff Assistant for Coordination:
 Effective communication:
 Using a Committee for Coordination
 Using Independent Integrators for Coordination:
 Coordination through Mutual Adjustment:
DIRECTING/LEADING
 Provides positive and dynamic leadership
 Provides maximum opportunities
 Provides proper motivation of personnel
 Ability to command people
CONTROLLING CONCEPTS
 Feed Forward Control-Control that attempts to identify
and prevent deviations before they occur is called feed
forward control, sometimes called preliminary or
preventive control.
 Concurrent Control-Control that monitors ongoing
employee activities during their progress, to ensure they
are consistent with quality standards, is called concurrent
control.
 Feedback Control-In this case, the control takes place
after the action. Sometimes called post-action or output
control
Steps in the Control Process
 Establish Standards of Performance
 Measure Actual Performance
 Compare Performance to Standards:
 Take Corrective Action
Management as a science , ART
or profession
Management as a science
 Properties of science
 Systematic body of knowledge
 Scientific enquiry and observation
 Experimentation
 Universal truths
 Properties of management
 Systematic body of language
 Management is a social science
 Management is not an exact science
 Scientific management
 Management as an part art
Properties of Science Vs Management as an Art
 Use of Knowledge
 Creativity
 Personal Touch
 Constant practice
According to Terry
Science ART
Defines Describes
Proves Feels
Predicts Guesses
Objective Subjects
Measures Opinions
Impresses Expresses
Advances by Knowledge Advances by Practices
Management as a Profession
 Managers are born and not made
Characterstics of profession Vs
Management
 Well defined body of knowledge
 Formal education and training
 Representative body
 Service motto
Management and administration
 Administrators think and Managers act.
 There are three views
 Administration is broader than Management
 Management is broader than administration
 Management and administration are identical
Administration Management
Process of determining a objectives. Process of planning the work as per
It lays down the policies and principles objective
Prepares framework under which one Executes policies and programme
as to work It supervises and controls the
execution of the assigned work
It provides direction, guidance and
leadership in bringing resource It coordinates all the work
Roles of Management
 In this observation , listed top five executes in different
organization did during the course of few days of work.
 Interpersonal Roles
 Figure head
 Leader
 liaison
 Informational Roles
 Monitor
 Disseminators
 Spokesmen
 Decisional Roles
 Entrepreneur
 Disturbance
 Resource allocator
Levels of Management
 Managers are those who are responsible for work done.
 Three level f management is common
 Top Management( Board of Directors, Determine goals)
 Middle Management( Superindents , to plan details of
all operations)
 Lower-est or supervisory Management( Supervious ,
working class, caaryout the work assigned to them
independently in case of skilled workers)
TECHNICAL SKILLS
A persons’ knowledge and ability to make effective use of any
process or technique constitutes his technical skills.
For eg: Engineer, accountant, data entry operator, lawyer,
doctor etc.
HUMAN SKILLS
An individuals’ ability to cooperate with other members of
the organization and work effectively in teams.
For eg: Interpersonal relationships, solving people’s problem
and acceptance of other employees.
CONCEPTUAL SKILLS
Ability of an individual to analyze complex situations and to
rationally process and interpret available information.
For eg: Idea generation and analytical process of information.
MANAGER’S ROLES
 Interpersonal role
 Informational role
 Decisional role
INTERPERSONAL ROLE
 Figurehead- ethical guidelines and the principles of
behavior employees are to follow in their dealings with
customers and suppliers
 Leader- give direct commands and orders to subordinates
and make decisions
 Liaison-coordinate between different departments and
establish alliances between different organizations
INFORMATIONAL ROLE
 Monitor- evaluate the performance of managers in
different functions
 Disseminator-communicate to employees the
organization’s vision and purpose
 Spokesperson- give a speech to inform the local community
about the organization’s future intentions
DECISIONAL ROLE
 Entrepreneur- commit organization resources to develop
innovative goods and services
 Disturbance handler- to take corrective action to deal with
unexpected problems facing the organization from the
external as well as internal environment
 Resource allocator- allocate existing resources among
different functions and departments
 Negotiator- work with suppliers, distributors and labor
unions
TYPES OF MANAGERS
 FIRST-LINE MANAGERS- often called supervisors stand at
the base of the managerial hierarchy
 MIDDLE MANAGERS- heads of various departments and
organise human and other resources to achieve
organizational goals
 TOP MANAGERS- set organizational goals, strategies to
implement them and make decisions
UNIT-2 PLANNING
The success of large organizations in the world such as
Toyota , Sony, Wall-Mart, Microsoft, Google , Samsung,
GE, Reliance etc., can be mostly attributed to their
abilities to plan future business scenarios .

With out successful planning, they would not have been

where there today.

‘Planning is a trap laid down to capture the future’

Characteristics of Planning
 Planning is goal-oriented- Plans are made in order to seek
certain pre-defined goals. Planning has no meaning unless
it contributes positively for the achievement of the set
targets
 Planning is a primary function- Planning is a primary
function which precedes all other managerial actions. It is
like a foundation of management process . Planning
provides the basis for the subsequent functions of
organizing, staffing, directing and controlling
 Planning is a thinking process- Planning is a mental
process which involves imagination , foresight and sound
judgement
 Planning is all pervasive- This means that planning is an
ongoing activity at all levels of oraganizational hierarchy.
Characteristics of Planning
 Planning is a continues process- Planning is a continuous
process and is a never ending activity. There are always new
situations and conditions and therefore planning has to be
an ongoing process of adjustments to change.
 Planning involves Choice- Planning always involves
choices among various alternatives.
 Planning is Flexible- planning should always be flexible
and not rigid
 Planning is Rational- it is a purposeful and conscious
managerial function. It is backed by adequate information,
knowledge and understanding
 Planning is futuristic- planning is forward looking, Means
“look ahead”
Importance and purpose of
planning process
 Planning Provides direction
 Planning minimizes Risk and uncertaininty
 Planning ensures coordination
 Planning leads to economy
 Planning facilitates decision making
 Planning reduces overlapping and wastages of efforts
 Planning encourages innovation and creativity
 Planning facilitates control
 Planning improves morale
STEPS IN PLANNING
 Step1: To establish objectives which are verifiable
 Step2: To establish planning premises
 Step3: to determine alternative courses of action
 Step4: To evaluate alternatives and select the best
 Step5: To formulate derivative plans
 Step6: To secure cooperation and participation of all
employee
 Step7: To measure and control the progress through follow-
up
Planning Premises
Planning premises are nothing but assumptions of future market
conditions which become the basis for current planning process ,
Classification of planning premises
1. INTERNAL AND EXTERNAL PREMISES-
With in organization, Men, Money, Machinary, Materials and Method
2. TANGIBLE AND INTANGIBLE PREMISES-
Intangible premises are those which are abstract and non-quantifiable
nature. Ex: Company Image, brand loyalty, political situation etc.
3. CONTROLLABLE, SEMI-CONTROLLABLE AND UNCONTROLLABLE
PREMISES-
Managerial policies, rules and regulations
Workers attitude and efficiency, firms pricing policy
Natural calamities , new inventions, Wars, strikes and emergency
OBJECTIVES
 The term AIM, Objectives , Goals purposes , missions,
convey more or less the same
 Organizations eventually may or may not achieve the
expected end results, but chances of doing so are greater if
objectives are framed and understood properly
 Characteristics of Objectives
1 Objectives are multiple in nature
 Market
 innovation
 productivity
 physical and financial resources
 profitability of business
 Managerial performance,
 Workers performance
2 Objectives have a hierarchy
When there are multiple goals , they may conflict each other
 Overall goal
 Divisional goals
 Departmental objective
 Individual objectives
Characteristics of objectives
3. Objectives form a network
Objectives may be interrelated and independent across dept.
4. Objectives may be long range and short range
Long term : survival
Short term : profit making , profitability
5. Objectives are either tangible or intangible
Tangible : productivity
Intangible : moral of worker, qualitative in nature and
image of the company
Importance or advantages of
objectives
 Objectives provide directions
 They provide strong basis for determining policies,
procedures, strategies , programmes, budget etc
 They to achieve personal goals
 They help in effective delegation of authority
 They serve as standards for the evaluation of performance
 They help in coordinating the efforts of various dept
TYPES OF PLANS
 STANDING PLANS
 Objectives
 Policies-Guidelines
 Strategies
 Procedures
 Methods
 Rules
 SINGLE USE PLAN
 Programs
 Schedules
 Projects
 Budget
Types of Planning
 Objectives
 Policies
 Strategies
 Procedure
 Methods
 Rules
 Programmes
 Schedules
 Project
 Budget
Policies
 Policies are nothing but guidilines set up by the company
for managerial decision making
 Policies actually set the tone for managerial thinking and
action
 They are the statement that tell people what they may or
they may not do.
 Policies actually give standing answers to recurring
problems
 Ex: Policies of recruiting only MBA from top 10 institutions
of the country
 Policies of promotion of in-house employee
Strategies
 Strategies specify the route taken to achieve company
objectives and policies
 A strategy nothing but a unified and critical plan of action
to achieve a goal
 A Strategy is a master plan
 A strategy consists of three factors
 Course of action
 A commitment of resources
 A detailed blue print of moves

Ex: Winning board meeting, best use of media

Procedures
 Procedure is nothing but action guidelines which
specifies how particular activities are to be carried out
 They give step-by-step sequence of required actions
 A Good procedure has to be
 Purposeful and functional
 Simple and clear
 Not rigid
 Exposed to periodic review
 EX: Procedure for recruitment,
 Procedure for addressing grievance , CET procedure for
BE admission
Methods
 Methods are basically sub units of procedure
 It is a break up of each step
 Methods indicate the simplified and standardized techniques
 Methods are usually products of research

 Ex; methods of conducting written test

 Methods of verifying facts and figures
 Methods adapted for analyzing failures
Rules
 Rules are nothing but standard guidelines which specify what is
good and what is bad for an employee/organization
 Rules are established to direct or restrict action
 Rules are to be followed strictly

EX:
Rules of smoking
Use of mobile prohibited
Programmes
 Programme is nothing but a precise plan
 It is a set of organized activities

 Ex: Cultural programme

 NIE Fest
Schedules
 A schedule is nothing but a extension of a
activity/programme which answers when for every
action specified in the programme
 Schedules are timetable
Project
 Small prgramme
 Several projects makes a programme
 Projects are individual portions of a general
programme

 EX A software project is a part of larger programme

 Project work
Budget
 Plan of spending
 Execution cost of the project
 Estimate of the cost to complete project

 Ex
 Sales budget
 Production budget
 Advertising budget
Decision making
Decision making is the most important part of the
business process.
 Characteristics of decision making
 Decision making is goal oriented
 Decision making involves choices
 Decision making is analytical intellectual process
 Decision making is continuous activity
 Decision making is situational and dynamic
Characteristics of Decision Making
 Decision making is goal oriented
Decision making is goal oriented process. Decisions are
usually taken to achieve some purpose or goal. The
intention of decision making is to move towards a
desired end state.
 Decision making involves alternative
The question of decision making comes into picture only
when there are alternatives. When there are no choice
and no decision making
Characteristics of Decision Making
 Decision making is an analytical intellectual process
It is an thoroughly analytical intellectual process. To take
a decision with out sound reasoning and judgement
would mean a lottery. A decision therefore represets a
judgement.
 Decision making is continuous activity
Decisions are necessary on number of issues and
problems in each area of business
Characteristics of Decision Making
 Decision making is an all pervasive function
Decision making comes at all levels of management and
managers take decision, though their impact and scope
may vary
 Decision making is situational and dynamic
Decision making is always related to a situation. It may
vary from situation to situation and may vary for some
situation
The decision making process
Decision making using scientific and analytical methods
involves in a systematic step-by-step procedure , as
follows
1. To define the problem and parameters influencing it
2. To establish the criteria for decision making
3. To formulate a model considering all decision
variables
1. Physical model
2. Computer model
3. Mathematical model
The decision making process…
4. To generate alternative solution by varying parameters
5. Evaluate all alternatives and select the Best
6.Implement the decision and monitor the result
Decision Methodology
Engineers and managers are expected to use a number of
quantitative technology to serve as a basis for decision
making, there are several quantitative technology
1. Variable with complete certainty
Break-even analysis, cost benefit , inventory control,
linear programming, non-linear and dynamic
programming, integer programming and scheduling
Decision Methodology
2. Variable with Risk and partial certainty
Forecasting
Decision trees
PERT and CPM
Aggregate planning
Simulation
Queuing theory
Regression and correlation
Heuristic methods
Decision Methodoloy
3. Variable with extreme certainty
Game theory
Flip of the coin
Astrology
Types of planning
Another way of looking at different types of planning
would be
1. Strategic planning
2. Tactical planning
3. Operational planning
The above classification of types of plans or ways of
planning depends on who does the planning hence
planning activity classified according to the scope
 Types of planning
Strategic planning Tactical planning Operational planning
There are long range Intermediate range Short range
plans
Time frame 3 or more 3 to 4 years One year
years
Responsibility of top Responsibility of Middle Responsibility of lower level
management management mgnt
Concern with objective, Concerned with Concerned with schedules and
policies, programmes procedures , project and methods
strategies
Responsible for the Responsible for Responsible for the day to day
overall progress of the integrating the work of work and operations
company various dept

Focus on planning and Focus on coordination Focus on directing and

forecasting controlling
Chapter-3 Organizing and staffing
 Organizing and staffing together form a backbone of
any enterprise
 Organization is aprocess of prescribing formal
relationships among people and resources in order to
achieve goals
 Staffing is a process of attracting and developing
human resources to work towards organizational goals
Nature or characteristics of
organization
 Organization is made of group of people
Organization comes into existence when a group of
people comes together to work for a common cause

They have to combine their effort and should be willing

to contribute to the overall objective
Nature or characteristics of
organization
 Organization Aims at common goals not personal
goals

 It is the common goals or objectives of the

organization which provides the basis for co-operation
among members of the organization

 Common goals of the organization are always separate

from the personal goals of the people employed
Nature or characteristics of
organization
 Organization have both vertical and horizontal
relationships
An Organization creates cooperative realationship
between different department and as well as between
supervisors and subordinates.
Nature or characteristics of
organization
 Organization establishes authority or chain of
command
An organization establishes clearly the flow of authority
from higher level to lower levels. There by forming a
chain of command or a hierarchical chain
Nature or characteristics of
organization
 Dynamics of Organization
Since an Organization is primarily made up of people
there exists , sentiments , attitudes and behavior of
individual and group

These aspects of relationship provide a dynamic element

to the organization functioning

They are subjected to change time to time

Importance or Purpose of an
organization
 Organization facilitates administration
Organization by avoiding wastage of efforts ,
overlapping of duties and responsibilities and
duplication of work

The ever increasing size of the companies , innumerable

divisions. With in a company, wide spread units and
global operations.
Importance or Purpose of an
organization
 Organization help optimum utilization of resources
 “ Wage a war on wastage “ cries the industry
 If wastage of
 Time
 Material and
 Energy is checked, the production cost is considerably
reduced
 Companies always look at :
 Right person the right job
 Properly allocate work to various departments
 Utilize the manpower and physical resources effectively and
efficiently
Importance or Purpose of an
organization
 Organization facilitates coordination and Direction
Organization is the best way of achieving proper
coordination among different departments of the
enterprise

Clear-cut authority and proper assignment of work helps

greatly in achieving coordination with who is
responsible for what? And who is accountable for what?
Importance or Purpose of an
organization
 Organization facilitates growth and diversification
Organization is always tries make best use of the talent
and resources which are available

Also clear-design of work, proper delegation of authority

talented and dedicated workforce will help to achieve
organizational goals
Importance or Purpose of an
organization
 Organization stimulates creativity
A good organization provides opportunity and
stimulates environment to people at all level in order to
be creative and to take initiative in their work area

This leads to specialization and can be beneficial to both

employee and employers.
Importance or Purpose of an
organization
 Organization enlarge abilities of employee
Organization provide job rotation , job enhancement ,
there by enlarging the abilities of the employee

Job are designed to meet human needs and are made

meaningful and interesting

Organizations also provide conducive working

environment and participate leadership which improves
job satisfaction among employees
Principles of organization
Principle of Unity.
 The objectives of an enterprise have an influence on
the structure of the organization.
 Therefore the objectives must be clearly defined for
the entire enterprise, for each for each department and
each position in order to evolve an appropriate
structure for the organization.
 There must be a unity among the objective laid down
for all levels so that all efforts can be concentrated on
achieving the same goal.
Principles of organization
Principle of Authority and Responsibility
 Everybody in the organization beginning downwards
from top level should be given some authority to get
work-done and at the same time be responsible for it.
Principles of organization
Principle of span of control
 The number of persons who directly reports to an
executive is called span of control.
 Span of control normally varies from 2 to 20 persons
depending upon the situation in the business
enterprises , some consideration which decides span of
control are
 Time available with the manager to effectively control
his subordinates
 Place of the work , communication network. And
distances between the workplaces of the supervisor and
the subordinates
 Knowledge, personality, authority and tight control
Principles of organization
Principle of dividing and grouping activities
 All the activities of the organization are divided and
grouped as various department where employees of
common skills work together.
 Dividing and grouping of activities lead to
specialization
 Specialization can be in terms of product
specialization, process specialization and labour
specialization etc.
Principles of organization
Principle of delegation
 Delegation means authorizing somebody to do the
work. Effective delegation exists when a manager
instead of doing all the decision making himself
passes down to subordinates some tasks where they
can take decision on their own.
Principles of organization
Principle of Co-ordination
 The organization structure should be such that
different department should coordinate with each
other effectively , so as to achieve common goals.
 Effective coordination is necessary to integrate all the
activities across the departments in an organization.
Principles of organization
Principle of Communication
 A good communication system is necessary in an
organization for smooth flow of information.
 Communication could be inter-personal , inter-
departmental or intra-departmental
 For best results there should be a free two –way
communication at all levels
Principles of organization
Principle of line and staff relation
 All activities in an organization can be broadly
classified into two main categories
 Primary or line activities
Line activities are those which directly contributes to the
profit, ex production activities and sales activities
 Supportive or staff activities
Staff activities are those which contribute indirectly to
support activities
Ex accounting , administration and maintainance
Principles of organization
Principle of Balance
 There should be a proper balance among all elements
of the organization, balance refers to the following
 Balance between authority and responsibility
 Balance between centralization and decentralization
 Balance between standard procedure and flexible
procedure
 Balance among activities and size of the departments
 Balance between wide and limited span of control
 Balance between profit earned and facilities extended
to the employee
Principles of organization
Principle of productivity
 Principle of productivity is defined as the ratio of output to
the input
 Productivity = Value of goods and service produced
value of the resources utilized for the production
Thank you