Lesson 1: The Field of Engineering Management
development, design and
Engineers - are expected to perform a variety of tasks
depending on their specialization and job level. It is
important to the engineer that he knows what is expected
of him to perform his job effectively and efficiently. The next
will be to identify the skills required which the
engineer did not possess. They are not directly trained to
deal with people, it is expected that their weakness will
most often be on people-based skills His main
responsibility is to lead his group into producing a certain
output consistent with the required specifications.
Engineer outputs are currently needed in the following
1 the prOduCtion of mOre food for a fast-growing
world population
2. the elimination of air and water pollution
3. solid waste disposal and materials recycling
4. the reduction of noise in various forms
5. supplying the increasing demand for energy
6. supplying the increasing demand fOr M0bility
7. preventing and solving crimes
8. meeting the increasing demand for
communication facilities
Functions of Engineering
1. Research — where the engineer is engaged in the
process of learning about nature and codifying this
knowledge into usable theories.
2. Design and development — where the engineer
undertakes the activity of turning a product concept to
finished physical items. Design for manufacturability and
value engineering teams (a feature of some companies)
are charged with ImprOvement of designs and
specifications at the research.
production stages of product development.
3. Testing — where the engineer works in a unit where new
products Or ans are tested for workability.
4. Manufacturing — where the engineer is directly in
charge of production personnel or assumes responsibility
for the product.
5. Construction — this is where the construction engineer
(civil engineer usually) is directly in charge of the
construction personnel or may have responsibility for the
quality of the construction process.
6. Sales - where the engineer assists the company’s
customers to meet their needs. especially those that
require technical expertise.
7. Consulting — where the engineer works as consultant
of any individual or organization requiring his services.
8. Government — where the engineer may find
employment in the government performing any of the
various tasks in regulating monitOring. and controlling the
activities Oi various institutiO0S. pUbIic or private.
9. Teaching — where the engineer gets employment in a
school and is assigned as a teacher of engineering
courses. Some of them become deans, vice presidents,
and presidents.
10. Management — where the engineer is assigned to
manage groups of people performing specific tasks.
The Engineer in Various Types of Organization
From the viewpoint of the engineer organizations
may be classified according to the degree of engineering
jobs performed
 1. Level One thOse with minimal engineering
jObs like retailing firms.
2. Level Two those with a moderate degree of
engineering jobs like transponation companies
3. Level Three those with a high degree of
engineering jobs like construction firms.
Management Skills Required at Various Levels
1. Level one firms - AmOng the types of organizations,
the engineer will have a slim chance of becoming the
general manager or president of level one, unless of course,
he owns the firm. The engineer manger may be assigned to
head a small engineering unit Of the firm. but there will not
be too many firms which will have this unit.
2. Level Two Firms - the engineer may be assigned to
head the engineering division. The need fOr management
skills will now be felt by the engineer manager.
3. Level Three Firms - prOvide the biggest opportunity for
an engineer to become the president or general manager.
In this case, the engineer manager cannot function
effectively without adequate management skills.
Engineering Management - refers to the activity
‘technical knowledge with the ability to organize
and coordinate wOrker power materials. machinery. and
money."
Management - may be defined as the "creative problem-
solving process of planning. organizing. leading. and
an organization's resources to achieve its
mission and objectives.
-a process of planning, organizing
directing (or leading), and
-must seek to find out the objectives of the
organization, think of ways how to achieve them, decide on
the ways to be adapted and the material resources to be
used, determine the human requirements of the total job
assign specific tasks to specific persons. motivate them.
and provide means to make sure that the activities are in
the right direction.
Requirements for the Engineer Managers Job
Depending on the type of products or services a
firm produces, the engineer manager must have the
following qualifications:
1. a bacheIor”s degree in engineering from a
reputable school: In some cases. a master's degree in
engineering or business management is required:
2. a few year experiences in pure engineering job;
3. training in supervision’
4. special training in engineering management
How One May Become A Successful Engineer
Manager
Kreitner indicates at least three general
for achieving lasting success as a manager.
1. Ability - Managerial ability refers to the capacity of an
engineer manager to achieve organizational objectives
effectively and efficiently. Effectiveness according to
Higgins. refers to a description of whether objectives are
accomplished , while effciency is a description of the
relative amount of resources used in obtaining
effectiveness.'!
2. Motivation to Manage - Many people have the desire
to work and finish specific tasks assigned by superiors,
but not many are motivated to manage other people so
that they may to the realization of the organization’s
objectives.
John B. Miner developed a psychOrnetric
instrument to measure objectively an individual's
motivation to manage. The test is anchored to the following
dimensions:
1. Favorable attitude toward those in positions of authOrlty
such as superiors:
2. Desire to engage in games or sports competition with
peers.
3. Desire to engage in occupational or work-related
competition with peers.
4. Desire to assert oneself and take charge.
5. Desire to exercise power and authority over others.
6. Desire \O behave in a distinctive way which includes
standing out from the crowd.
7. Sense of respOnsibility in carrying out the routine duties
associated with managerial work.
3. Opportunity - Successful managers become possible
only if those having the ability and motivation are given the
opportunity to manage. The opponunity for successful
management has two requirements namely obtaining a
suitable managerial job and finding a supponive climate
once on the job.
Lesson 2: Decision-Making as a Management
Responsibility
Decision — making is a responsibility of the engineer
manager. It is understandable for managers to make
wrong decisions at times. The wise manager will
them as soon as they are identified.
• The higher the management level is. the bigger
and more cOrnplicated decision-making becomes.
Decision-Making - The process of identifying and
choosing alternative courses of action in a manner
appropriate to the demands of the situation.” ; ’The hean of
all the management functions°, according to nickels.
Decision - Making Process by David H. Holt
1. Diagnose problem
-If a manager wants to make an intelligent
decision his first move must be to identify the problem.
- Identification of the problem is tantamount to
having the problem half-solved ' — expen
- A problem exists when there is a difference
between an actual situation and a desired situatiO0.
2. Analyze environment
- The environment where the organization is
situated plays a very significant rOIe in the success or
failure of such an organization It is therefore very
important that an analysis of the environment be
undenaken. The objective of eny/ronmenta/ analysis is the
identification a/ constrai’nts, which may be swelled out as
either interna/ (limited funds. //’m/ted trai’nings. ill designed
facili’ti’es) or external//’m/faf/’ons {patents controlled by other
orps. very/fm/’ted market, stñct enfOrcement of local zoning
regulations).
Components of the Environment:
1. Internal — refers to organizational activities
within a firm that surrounds decision making
2. External — refers to variable that are outside the
organization and not typically within the shon-run
of top management.
3. Articulate problem or opportunity
4. Develop viable alternatives
- Oftentimes problems may be solved by any of
the Alternatives solutions offered. The best among the
alternative solutions must be considered by management.
Procedures are as follows:
1. Prepare a list of alternative solutions.
2. Determine the viability of each solutions.
3. Revise the list by striking out those which are not
viable.
5. Evaluate alternatives
- After determining the viability of the alternatives
and a revised list has been made, an evaluation of the
remaining alternatives is necessary.
6. Make a choice
- After the alternatives have been evaluated, the
decision — maker must now be ready \O make a choice.
This is the point where he/she must be that all
the previous steps were correctly undertaken.
- Choice-making refers to the process
selecting among alternatives representing potential
solutions to a problem.
7. Implement decision
- After a decision has been made, implementation
follows. This is necessary or decision-making will be an
exercise in ineffectiveness.
- Implementation refers to carrying out the
decision so that the objectives sought will be achieved , To
make implementation effective a plan must be devised.
8. Evaluate and adapt decision results
- Use control and feedback mechanisms to ensure
results and provide infOriz›ation for future decisions.
- Feedback — process which requires checking
at each stage of process to assure that alternatives are
generated. the criteria used in evaluation and the solution
selected for the implementation are in keeping with the
goals and objectives specified.
- Control — actiOns made to ensure that activities
performed match the desired activities or goals.
Approaches in Problem Solving In decision making
The engineer manager is faced with problems
which may either be simple or complex.
1. Qualitative Evaluation - refers to evaluation of
alternatives using intuition and subjective judgment.
Stevenson states that managers tend to use the
qualitative approach when:
1. The problem is fairly simple.
2. The problem is familiar.
3. The cost involved are not great.
4. Immediate decisions are needed.
of
2. Quantitative Evaluation - refers to the evaluation of
alternatives using any technique in a group classified as
rational and analytical
Quantitative Models for Decision Making
1. Inventory Models - Inventory models consist of several
types all designed to help the engineer manager make
decisions regarding inventory. They are as follows:
1. Economic order quantity model
2. Production order quantity model
3. Back order inventory model
4. Ouantity discount model
2. Queuing theory - is one that describes hOW to
determine the number of service units that will minimize
both customers waiting time and cost of service. This is
applicable to companies where waiting lines are
situation.
3. Network models - are models where large complex
tasks are broken into smaller segments that can be
managed independently. The two most prominent network
models are:
1. The Program Evaluation Review Technique (PERT)
— techniques including scheduling monitoring, and
controlling large complex projects by employing
estimates each activity.
2. The Critical Path Method (CPM) - uses only one-time
factor per activity that enables engineer managers to
schedule monitor and control large and complex pro ects.
4. Forecasting - may be defined as “the collection of past
and current information to make predictions about the
future.' There are instances when engineer managers
make decisions that will have implications in the future.
5. Regression analysis - reqression model is a
forecasting method that examines the association between
two or more variables. It uses data from previous periods
to predict future events. Regression analysis may be
simple Or multiple depending on the number
independent variables present. When one independent
variable is involved, it is called SIMPLE REGRESSION’
when two or more independent variables are involved, it is
called MULTIPLE REGRESSION
6. Simulation - is a model constructed to represent reality
on which conclusions about real-life problems can be used.
It is highly sophisticated tool by means of which the
decision maker develops a mathematical model of the
systems under consideration. Simulation does not
guarantee an optimum solution but it can evaluate the
alternatives fed into the process by the decision-maker.
7. Linear programming - is a quantitative technique that
is used to produce an optimum solution within the bounds
imposed by constraints upon the decision
8. Sampling theory - is a quantitative technique where
samples of populations are statistically determined to be
used for a number of processes. such as quality
and marketing research.
3 9. Statistical decision theory - refers to the rational way
to analyze, and solve problems in situations involving
limited or panial information about the decision
environment.
- The purpose of Bayesian analysis is to revise
and update the initial assessments of the event
probabilities generated by the alternative solutions. It is
achieved through the use of additional information.
Lesson 3: The Nature of Planning
To minimize mistakes in decision making
planning is undertaken.
Plan
of
- This is the output of planning, provides a
methodolOgical way of achieving desired results.
- In the implementation of activities the plan serves
as a useful guide.
Technical activities - require effective planning if
objectives and goals are to be realized.
Planning
• According to Nickels and others - “the
management function that involves anticipating
future trends and determining the best strategies
and tactics to achieve organizational objectives”
• According to Aldag and Steams - “The selection
and sequential ordering of tasks required to
achieve an organizational goal.”
• According to Cole and Hamilton - 'deciding
what will be done. who will do it. where. when
and how it will be done, and the standards to
which it will be done.'
 For our purpose. it will sufice to define planning Tactics -is a shon-term action taken by management to
as selecting the best of action so that the desired adjust to negative internal or external influences.
result may be achieved.
3. Determining resources needed - To satisfy strategic
PLANNING AT VARIOUS MANAGEMENT LEVELS requirements, a general statement of needed resources

1. Top management level will suffice.’ When panicular sets of strategies have been

Strategic planning - is the process of determining the devised, the manager will determine human and non-

major goals of the organization and the policies and human resources required by strategies. The quality &

strategies fOr Obtaining and using resources to achieve quantity of resources needed must be correctly

those goals. determined

2. Middle management level 4. Setting standards

Intermediate planning - is the process of determining the Standards- a quantitative or qualitative measuring device
contributions that subunits can make with allocated designed to help monitor the performance of people.
resources. capital goods, or processes.

3. Lower management level TYPE OF PLANS

Operational planning - refers to the process of Plan are of diff. types. They may be classified in
determining how specifc tasks can best be accomplished terms of functional areas time horizon, and frequency of
on time with available resources use

THE PLANNING PROCESS 1. Functional Area Plans

1. Setting organizational, divisional, or unit goals - The Plans may be prepared according to the needs of
first task of the engineer manager is to provide a sense of the different functional areas.
direction to his firm. The setting of goals provides an
TYPES OF FUNCTIONAL AREA PLANS:
answer to the said concern.
1. Marketing plan- this the written document or
Goal- the precise statement of results sought quantified
blueprint for implementing and controlling an
in time and magnitude. where possible.
organization's marketing activities relates to a
2. Developing strategies or tactics to reach those panicular marketing strategy.
goals. - The next task is to devise some means to
2. Production Plan- this the written document that
realize them.
states the quantity of output a company must
Strategies - the ways to realize the goals’ a produce in broad terms and by product fam.
of action aimed at ensuring that the
3. Financial Plan - document that summarizes the
organization will achieve its objectives’
current financial situation of the firm, analyzes
of top management.
 financial needs and recommends a direction for
financial activities
4. Human resource management plan - indicates
the human resource needs of a detailed
in terms of quantity and quality.
Plans with Time Horizon
1. Short-range plans- plans intended to cover a period
Of less than One year. First line supervisors are mostly
concerned with these.
2. Long-range plans - plans cOvering a time span of
more than one year. Mostly undertaken by middle &
top mgmt.
Plans According to Frequency of Use
1. Standing plans - used again and again and they
focus on managerial situations that recur repeatedly.
Can be classified as:
1. Policies - broad guidelines to aid managers at
every level in making decisions about recurring
situations or function
2. Procedures - plans that describe the exact series
of actions to be taken in a given situation.
3. Rules - statements that either require or forbid a
cenain action.
2. Single-use plans specifically developed to
implement courses of action that are relatively unique
and are unlikely to be repeated. Classifies as follows:
1. Budgets - According to Weston and Brigham is a
plan which sets forth the projected expenditure for a
cenain activity and explains where the required funds
will come from."
2. Programs - is a single use plan designed to
coordinate a large set of activities
3. Projects - Is a single use plan that is usually more
limited in than a program and is sometimes
prepared to suppon a program.
PARTS OF THE VARIOUS FUNCTIONAL AREA
PLANS.
The engineer manager may be familiar with
engineering plans knowing the details from beginning to
end.
The Contents of the Marketing Plan
William Cohen maintains that the following must
be included in the marketing plan:
1. Executive Summary- Which presents an
overall view of the marketing project and its
potential
2. Table of Contents
3. Situational Analysis and Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies
6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control
The Contents of the Production Plan
1.The amount of capacity the company must
have
2. how many employees are required
3.how much material must be purchased
The Contents of the Financial Plan
1. An analysis of the firm’s current financial
condition as indicated by an analysis of
the most recent statements
 2. A sales forecast 3. lack of commitment to the planning process
3. The capital budget 4. improper information
4. The cash budget 5. focusing on the present at the expense of the
5. A set of pro forma (or projected) financial future
statements 6. too much reliance on the planning department
6. The external financing plan 7. concentrating on only the cOntroIIabIe
variables.
Contents of the Human Resources Plan
1.personnel requirements of the company AIDS TO PLANNING
2.plans for recruitment and selection 1.Gather as much information as possible
3.training plan 2.Develop multiple sources of information
4.retirement plan 3.Involve others in the planning process

PARTS OF THE STRATEGIC PLAN Lesson 4: ORGANIZING

1.Company or corporate mission
Organizing
2.Objectives or goals
• is undenaken to facilitate the implementation of
3.Strategies
plans. In effective organizing steps are
Company mission or corporate mission - refers to the undenaken to breakdown the tOt6I tOb. DOlDg
strategic statement that identifies why an organization these will make it possible to assign particular
exists, its philosophy of management and its purpose as persons. In turn. these will help facilitate the
distinguished from other similar organizations in terms of assignment of authority, responsibility. and
products, services. and markets. accountability for cenain functions and tasks.

MAKING PLANNING EFFECTIVE • Organizing is a management function which refers

Planning is done so that some desired results to the structuring Ot resources and activities to
may be achieved accomplish objectives in an efficient and effective
manner".
Planning may be made successful if the following are
observed. Structure - The arrangement or relationship of positions
1. Recognize the planning barriers within an organization. II is the result of the organizing
2. Use of aids to planning process.

PLANNING BARRIERS The Purpose of the Structure

The planning barriers according to Plunkett The structure serves some very useful purposes.
and Attner are as follows: They are the follOwing
1 manager's inability to plan 1. It defines the relationships between tasks and
2. improper planning process authority for individuals and departments.
 2. It defines formal reposing relationships. the
number of levels in the hierarchy Oi the
organization and the span of control.
3. It defines the groupings of individuals into
departments and depanments into organization
4. It defines the system to effect of
effon in both vertical (authority) and horizontal
(tasks) directions.
When structuring an organization; the engineer
manager must be concerned with the following:
1. Division of labor — determining the scope of work
and how it is combined in a job.
2. Delegation of authority — the process Ot
assigning various degrees of decisiOn-making
authority to subordinates.
3 Departmentation — the grouping of related jobs,
activities, or processes into major organizational
subunits.
4 Span of control — the number of people who
repOrt directly to a given manager and
individuals.
Coordination the linking of activities in the
organization that serves to achieve a common
goal or objective.
Formal Organization
The structure that details lines of responsibilities.
authority and position.
• It is planned structure and it represents the
deliberate attempt to establish patterned
relationships among components that will meet the
objectives effectively.
The formal structure is described by management through:
1) Organization chart It is a diagram of the
organization's official positions and formal lines OI
authority.
2) Organizational manual - It provides written
description of authority relationships. details the
functions Of major organizatiOnal units and
describes job procedures.
3) Policy manuals - It describes personnel activities
and policies.
The INFORMAL GROUPS
• There are instances when members of an
organization spontaneously form a group with
friendship as a principal reason for belonging
i• It is not a pan of the formal Organization and it
does not have a formal performance purpose.
Oftentirnes it is very u5efu1 in the accomplishment
of major tasks, especially if these tasks cOnforrn
with the expectations of the members of the
informal groups.
Types of Organizational Structures
1. Functional organization - This is the form of
departmentalization in which everyone engaged in
one functiOnal activity, such as eng Sneering or
marketing is grouped into one unit.
2. Product or market organization - This refers to
the Organization of a by divisions that
brings together all those involved with a cenain
type of product or customer.
3. Matrix organization - An organizational structure
in which each employee repons to both a
functional or division manager and to a project or
group manager.
 Reasons or Factors for Joining or Forming a Group
Advantages and Disadvantages of Organizational
Structure
Functional Organization - Functional organization
structures are very effective in smaller firms. especially
"single-business firms where key activities revolve
around well-defined skills and areas of specialization.
ADVANTAGES:
1 The grOuping of employees who perform a ADVANTAGES:
commOn task permit economies of scale and
efficient resource use.
2. Since the chain of command converges at the \Oq
of the organization decision making is centralized.
providing a unified direction from the top.
3. Communication and coordination among
employees within each depanment are excellent
4. The structure promotes high-quality technical
problem-solving.
5. The organization is provided with in depth skill
specialization and development.
6. Employees are provided with career progress
within functional depanments.
DISADVANTAGES:
1 There is a high possibility of duplication of
resources across divisions.
2. There is less technical depth and specialization in
divisions.
3. There is poor coOrdination across divisions.
4. There is less top management control.
5. There is competition for corporate resources.
Advantages and Disadvantages of Organizational
Structure
Matrix Organization - A matrix organization. according
Thomson and Strick1and, “is a structure with two (Or more)
channels of command two lines of budget authority, and
two sources of performance and reward.
Matrix structure - was designed to keep employees in a
central pool and to allocate them to various projects in the
firm according to the length of time they were needed.
1. There is more efficient use of resources than the
divisional structure.
2. There is fexibility and adaptability to changing
environment.
3. The development of both general and functional
management skills are present.
4. There is interdisciplinary cooperation and any
expenise is available to all divisions.
5. There are enlarged tasks for employees which
motivate them better.
DISADVANTAGES:
1. There is frustration and confusiOn from dual chain
of command
2. There is high conflict between divisional and
functional interests.
3. There are many meetings and more discussion
than action
 4. There is a need for human relations training for
key employees and managers.
5. There is a tendency for power dominance by one
side of the matrix.
TYPES OF AUTHORITY
1. Line Authority - A manager s right to tell subordinates
what to do and then see that they do it.
Line departments - perform tasks that reflect the
organization’s primary goal and missiOn. In a construction
firm the depanment that negotiates and secures contracts
for the firm is a line depanment. The constructiOn division
is also a line function
2. Staff Authority - A staff specialist!s right to give
advice to a superior.
Staff departments - include all those that provide
specialized skill in suppon of line depanrnents. Examples
of staff depanrnents include those which perform strategic
planning, labor relatiOns, research, accounting and
personnel.
Staff officers may be classified into the following:
1) Personal staff those individuals assigned to a
specific manager to provide needed staff services.
2) Specialized staff those individuals providing
needed staff services for the whole organization
3. Functional Authority - A specialist’s right to oversee
lower level personnel involved in that specialty. regardless
of where the personnel are in the organization.
- It is one given to a person or a work group to make
decisions related to their expertise even if these decisions
other depanrnents. This authority is given to
budget officers of organizations, as well as other officers.
The Purpose of Committees
i• A committee is a formal group of persons formed
for a specific purpose.
A committee is usually formed to provide the
necessary line-up of expertise needed to achieve
cenain objectives.
Committees may be classified as follows:
1. Ad hoc committee one created fOr a short-term
purpose and have a limited life.
Example: the committee created to manage the
anniversary festive of a cenain firm.
2. Standing committee it is a relatively permanent
committee that deals with issues on an ongoing basis.
Example: the grievance committee set up to handle initially
complaints from employees of the organization.
Lesson 5: Staffing
STAFFING
• Staffing may be defined as the management
function that determines human resource needs,
recruits. selects. trains. and develops human
resources for jobs created by an organization
• Staffing is undenaken to match people with jobs
so that the realization of the organization's
objectives will be facilitated
Procedure
1. Human Resource Plannin- The planned output of
any organization will require a systematic deployment of
human resources at various levels. Three activities of
Human Resource Planning: Forecasting, Programming,
Eval & control
1. Forecasting - An assessment of future human
re5ource needs in relation to the current capabilities
of the organizatiOn
Methods of Forecasting
1. Time series methods - which use historical data
tO develop forecasts of the future.
2. Explanatory, or causal models which are
attempts to identify the major variables that are
related to or have caused panicular past
conditions and then use current measures of thèse
variables to predict future conditiO0S.
Three Major Types of Explanatory models
a) Regression models
b) Econometric models - a system of regression
equations estimated frOm past time-series data and
used to show the effect of various independent
variables on various dependent variables.
c) Leading indicators refers to time series that
anticipate business cycle turns.
3. Monitoring models are those that provide early
warning signals of significant changes in established
patterns and relationships so that the engineer
manager can assess the likely impact and plan
responses if required.
2. Programming - This means translating the
forecasted human resource needs to personnel
objectives and goals.
3. Evaluation and Control - It refers to monitoring
human resource action plans and evaluating their
success.
2. Recruitment - Recruitment refers to attracting qualified
persons to apply for vacant positions in the company so
that those who are best suited to serve the company may
be selected.
Source of Applicants
When management wants to fill up certain vacancies,
the follOwing sources may tapped:
1. The organizations current employees - Some of the
organization's current employees may be qualified to
occupy positions higher than the ones they are
occupying. They should be considered
2. Newspaper advertising - There are at least three
major daily newspapers distributed throughout the
Philippines. Readership is higher during Sundays.
3. Schools - These are good sources of applicants.
Representatives of companies may interview applicants
inside campuses.
4. Referrals from employees - Current emplOyees
sometimes recommend relatives and friends who may be
qualified
5. Recruitment firms - Some companies are specifically
formed to assist clients firms in recruiting qualified persons.
6. Competitors - Thèse are useful sources of qualified but
underutilized personnel
3. Selection
- Selection refers to the act of choosing from those
that are available the individuals most likely to
succeed on the job. A requisite for effective
selectiO0 is the preparation of a list indicating that
an adequate pool of candidates is available.
- The purpose of selection is to evaluate each
candidate and to pick the most suited for the
position available.
- Selection procedures may be simple or complex
depending on the of a wrong decision.
 - When the position under consideration involves
special skills, a more elaborate selection process
is undertaken.
Ways of Determining the Qualifications of a Job
Candidate
Companies use any or all of the following in
determining the qualifications of a candidate:
1. Application blanks - The applicatiOn blank
prOvides inforrnatlOn about a person’s
characteristics such as age, marital status.
address, educatiOnal background experience.
and special interests. After reading the application
blank. the evaluator will have some basis on
whether Or not to proceed funher in evaluating the
applicant.
2. References - References are those written by
previous employers. co-workers, teachers, club
officers, etc. Their statements may provide some vital
information on the character of the applicant.
3. Interviews - Information may be gathered in an
interview by asking a of relevant questions to
the job candidate.
4. Testing - This involves an evaluation of the
future behavior or performance of an individual.
TYPES OF TEST
1. Psychological tests - which is ’an objective, standard
measure of a sample behavior. It is classified into:
a) Aptitude test — one used to measure a person’s
capacity or potential ability to learn.
b) Performance test - one used to measure a
person’s current knowledge of a subject.
c) Personality test — one used to measure
personality traits dominance, sociability. and
conformity.
d) Interest test - one used to measure a person's
interest in various fields of work.
2. Physical examination a type Ot test given to assess
the physical health of an applicant. It is given “to assure
that the health of the applicant is adequate \O meet the job
requirements.
4. Induction & orientation
Induction
• The new employees is provided with the
necessary infOrmatiOn about the
• His duties, responsibilities, and benefits are
relayed to him. Personnel and health forms are
filled up, and passes are issued
• The company history, its products and services
and the organization structure are explained to
the new employee.
Orientation
• The new employee is introduced to the immediate
working environment and co-workers.
• The following are discussed: location, rules,
equipment, procedures and training plans.
• Performance expectation are also discussed
• The new employee also undergOes the
'socialization process by pairing him with an
experienced employee and having a one-one-one
discussion with the manager.
5. Training and Development
• If the newly - hired (Or newly promoted) employee
is assessed to be lacking the necessary skills
 required by the job, training becomes a
necessity.
• Training - refers to the ”learning that is provided
in order to improve performance on the present
job."
Training programs general types. namely:
a. Training programs for non-managers
- This type of training is directed to nonmanagers
fOr specific increases in skill and knowledge tO
perform a panicular job. The four methods under
this type are:
1. On the job-training - where the trainer is placed in an
actual wOrk situation under the direction of his immediate
supervisor. who acts as trainer. This situation motives
strongly the trainee to learn.
2. Vestibule school - where the trainee is placed in a
situation almost exactly the same as the workplace where
machines, materials, and time constraints are present. As
the trainer works full time, the trainee is assured of
sufficient attention from him.
3. Apprenticeship program - where a ofon-
the-job training and experiences with classroom instruction
in particular subjects are provided to trainees.
4. Special courses - are those taken which provide more
emphasis on education rather than training Examples are
\hOse which concern specific uses of computer like
computer-aided design and building procedures.
B.Training and educational programs for executives. -
The training needs of managers may be classified into four
areas: decision-making skills. interpersonal skills. job
knowledge, and Organizational knowledge.
The decision-making skills of the managers may be
enhanced through any of the following methods Of training
1. In-basket - where the trainee is provided with a set
of notes. messages. telephone calls. letters. and
repons, all pertaining to a certain company
situation. He is expected to handle the situation
within a given period Ot 1 or 2 hours.
2. Management games - is a training method where
trainees are faced with a simulated situation and are
required to make an ongoing series of decisions about that
situation°
3. Case Studies - this method presents actual situations
in organizations and enable one to examine successful
and unsuccessfUl Operations. It emphasizes "the
manager's world, improves skills. offers
rewards of solving a mystery possesses the quality of
illustration. and establishes concrete reference points for
connecting theory with practice.'
The interpersonal competence of the manager
may be developed through any of the following
methods:
1. Role-playing - is a method by which the trainees
are assigned roles to play in a given case incident.
They are provided with a script or a description Of
a given problem and of the key persons they are
to play. The purpose Of this methOd is to improve
the skill of the trainees in human relations,
supervision, and leadership.
2. Behavior modeling - this method attempts to
infuence the trainee by "showing model persons
behaving effectively in a problem situation. The trainee
 is expected to adapt the behavior of the model and use
it effectively in some instances later on.
3. Sensitivity training - under this method awareness
and sensitivity to behavioral patterns of oneself and others
are developed
4. Transactional analysis - is a training method intended
to help individuals not only understand themselves and
others bUt also imprOve their interpersonal
skills.
In acquiring knowledge about the actual job the
manager is currently holding, the following methods
are useful:
1. On-the-job experience - this method provides
valuable opponunities for the trainee \O learn various
skills while actually engaged in the performance of a
job.
2. Coaching - this methOd requires a senior manager to
assist a lower-level manager by teaching him the needed
skills and generally providing directions advice, and
helpful criticism. The senior manager must be skilled
himself and have the ability to educate otherwise the
method will be ineffective.
3. Understudy - under this method. a manager works as
assistant to a higher-level manager and panicipates in
planning and other managerial functions until he is ready
to assume such position himself. Once in a while, the
assistant is allowed to take Over.
In the attempt to increase the trainee’s knowledge
of the total organization, exposure to information and
events outside of his immediate job is made. In this
regard, the following methods are useful:
1. Position Rotation - under this method. the manager
is given assignments in a variety of departments. The
purpose is to expose him to different functions of the
organization.
2. Multiple Management - this method is premised on
the idea that junior executives must be provided with
means to prepare them for higher management positions.
TO achieve this, a junior bOard of directors is created
consisting of junior executives as members. The board is
given the authority to discuss problems that the senior
bOard discuss. The members are encouraged to take
a broad business outlook rather than on their
specialized lines of work
6. Performance A raisal - is the measurement of
employee perfOrmance. The purposes for which
performance appraisal is made are as follows:
1. To influence in a positive manner, employee
performance and develOpment;
2. To determine merit pay increases;
3. TO plan for future perfOrmance gOals’
4. To determine training and development needs’
5. To assess the promotional potential
of employees.
Ways of Appraising Performance an employee’s
performance may be measured using any of the
following methods:
1. Rating scale method - where each trait or
characteristic to be rated is represented by a line or
scale on which the rater indicates the degree to
which the individual possesses the trait or
characteristic.
 2. Essay method - where the evaluator composes
statements that best describe the person evaluated
3. Management by objectives method - where the
specific goals are set collaboratively fOr the organization
as a whole for various subunits, and fOr each individual
member. Individuals are. then evaluated on the basis of
how well they have achieved the results specified by the
goals.
4. Assessment center method - where one is
evaluated by persons other than the immediate superior.
This method is used for evaluating managers.
5. Checklist method - where the evaluators checks
statements on a list that are deemed to characterize an
employee’s behavior or performance.
6. Work standards method - where standards are set
for the realistic worker output and later on used in
evaluating the performance of non-managerial emplOyees.
7. Ranking method - where each evaluator arranges
employees in rank order from the best to the poorest.
8. Critical-incident method - where the evaluator
recalls and writes down specific (but critical) incidents that
indicate the empIoyee”s performance. A critical incident
occurs when employee’s behavior results in an unusual
success or failure on some pans of the job.
7. Em After evaluating the
performance of employees (managerial will now be ready
tO make employment decisions , These may consist of the
following
1. Monetary rewards - these are given
employees whose performance is at par or above
standard requirements.
2. Promotion - this refers to a movement by a
person into a position of higher pay and greater
responsibilities and which is given as a reward for
competence and ambition
3. Transfer - this is the movement of a person to a
different job at the same or similar level of
responsibility in the organization. Transfers are made
to provide growth opportunities for the persons
involved or IO get rid of a poor performing employee.
4. Demotion - this is a movement from one position to
another which has less pay Or responsibility attached tO it.
Demotion is used as a form of punishment or as a
temporary measure to keep an employee until he is offered
a higher position.
8.Separation
• Separation is either a voluntary or involuntary
termination of employee. When made voluntarily,
the organization’s rrianagernent must find out the
real reason If the presence of a defect in the
organization is determined. action is
necessary.
• Involuntary separation (or termination) is the
last option that the management exercises when
an employee’s performance is poor or when
he/she an act violating the company
rules and regulations. This is usually made after
training effons fail to produce positive results.
to