LESSON 1: MANAGEMENT AND ORGANIZATION

ENGINEERING GOODS OR SERVICES?

• The profession in which a knowledge of the GOODS
mathematical and natural sciences gained by study,
experience, and practice is applied with judgment • Are physical items that include raw materials, parts,
to develop ways to utilize economically, the subassemblies, and final products.
materials and forces of nature for the benefit of ✓ Automobile
mankind. (Accreditation Board for Engineering and ✓ Computer
Technology-ABET) ✓ Oven
✓ Shampoo
MANAGEMENT
SERVICES
• The process of coordinating human, informational,
physical and financial resources to accomplish • Are activities that provide some combination of time,
organizational goals. location, form or psychological value.
✓ Air travel
ENGINEERING MANAGEMENT ✓ Education
• The supervision of groups of engineering ✓ Haircut
researchers, engineering functions, engineering ✓ Legal counsel
design activities, the application of quantitative
methods and techniques to the practice of THE OPERATIONS FUNCTION
management
• Management of engineering activities which are
characterized by technical complexities associated
with risks and uncertainties, special tools and
techniques which require unique skills, dynamic
environment (changes), and technology which is a
key element in an engineering organization

CHALLENGES TO ENGINEERING MANAGEMENT

Complex tasks Time Driven
Limited Innovation and
Resources/Resource Creativity / Limited INPUTS PROCESS OUTPUTS
Competition Rewards Land Process High Goods
Changing Technology Uncertainty and Risks Human: ✓ Cutting, Percentage
Obsolescence Matrix Leadership ✓ Physical/ ✓ Drilling ✓ Houses
Intellectual ✓ Transporting ✓ Automobiles
OPERATIONS MANAGEMENT ✓ Capital ✓ Teaching ✓ Clothing
Raw Materials ✓ Farming ✓ Computers
• Operations
✓ Energy ✓ Mixing ✓ Machines
➢ The part of a business organization that is
✓ Water ✓ Packing ✓ Televisions
responsible for producing goods or services ✓ Metals ✓ Copying, ✓ Food products
• How can we define operations management? ✓ Wood ✓ faxing ✓ Textbooks
➢ The management of systems or processes Equipment ✓ CD Players
that create goods and/or provide services ✓ Machines
✓ Computers High Service
Activities that relate to the creation of goods and ✓ Trucks Percentage
services through the transformation of inputs to ✓ Tools ✓ Health care
outputs. Facilities ✓ Entertainment
✓ Scheduling of activities ✓ Hospitals ✓ Car repair
✓ Ordering & managing of supplies ✓ Factories ✓ Delivery
✓ Retail ✓ Legal
✓ Selecting & maintaining equipment
Stores ✓ Banking
✓ Motivating employees
✓ Communication
✓ Processing/assembly of products
✓ Quality Control
 TYPES OF OPERATION LEVELS OF MANAGEMENT
Illustration of the transformation process

• Goods Producing
✓ Farming, mining, construction, manufacturing,
power generating
• Storage/ Transportation
✓ Warehousing, trucking, mail service, moving,
taxis, buses, hotels, airlines
• Exchange
✓ Retailing, wholesaling, financial advising,
renting or leasing, library loans, stock
WHERE DO MANAGERS WORK?
exchange
ORGANIZATION
• Entertainment
✓ Films, radio, television, plays, concerts, • A deliberate arrangement of people to accomplish
recording some specific purpose (that individuals
• Communication independently could not accomplish alone)
✓ Newspapers, radio & TV newscasts, telephone,
COMMON CHARACTERISTICS OF ORGANIZATION
satellites, internet
✓ Have a distinct purpose (goal)
WHO ARE MANAGERS ✓ Composed of people
✓ Have a deliberate structure
MANAGERS
• Someone who coordinates and oversees the work of
other people so that organizational goals can be
accomplished. (Robbins and Coulter, 2012)

CLASSIFYING MANAGERS
FIRST-LINE MANAGERS
• Lowest level of management
THE CHANGING ORGANIZATION
• Individuals who manage the work of non-
managerial employees who typically are involved
with producing the organization’s products or
servicing the organization’s customers
• Title Examples: supervisors, shift managers, or
department/office managers

MIDDLE-LINE MANAGERS
• Individuals who manage the work of first-line
managers and can be found between the lowest and
top levels of the organization
• Title Examples: regional manager, project leader,
plant manager, or division manager MANAGEMENT: AN ART OR A SCIENCE?

TOP-LINE MANAGERS MANAGEMENT IS AN ART

• Individuals who are responsible for making
organization-wide decisions and establishing plans
and goals that affect the entire organization.
• Title Examples: executive vice president, president,
managing director, chief operating officer, or chief
executive officer
➢ When it refers to the human aspect e.g. social
behavior, sensitivity, creativity, varying response to
changes
MANAGEMENT IS A SCIENCE
➢ Because it is based on a body of knowledge or
principles
 WHAT IS MANAGEMENT?
MANAGEMENT
• Involves coordinating and overseeing work
activities of others so that their activities are
completed efficiently and effectively (Robbins and
Coulter, 2010)
MANAGEMENT CONCERNS
EFFICIENCY
• Refers to the relationship between inputs and
outputs
➢ Managers deal with scarce input resources
(people, money, equipment) and the concern
is efficient use of these resources – “doing
things right” and not wasting resources;
“getting things done”
EFFECTIVENESS
• Refers to the achievement of organizational goals ;
“doing the right things”
Management Roles Approach (Henry Mintzberg)
WHAT DO MANAGERS DO?
• Henri Fayol, a French businessman, first proposed
in the early part of the 20th century that all
managers perform five functions:
✓ Planning
✓ Organizing
✓ Commanding
✓ Coordinating
✓ Controlling
• Today, these functions have been condensed to four:
planning, organizing, leading, and controlling
• Management Functions (Functional Approach)
➢ Planning
✓ Defining goals, establishing strategies to
achieve goals, developing plans to integrate
and coordinate activities.
➢ Organizing
✓ Arranging and structuring work to
accomplish organizational goals.
✓ Determining what needs to be done, how it
will be done, and who is to do it
➢ Leading
✓ Working with and through people to
accomplish goals.
✓ Motivating, leading, and any other actions
involved in dealing with people
➢ Controlling
✓ Monitoring, comparing, and correcting
work.
✓ Monitoring activities to ensure that they
are accomplished as planned
• Henry Mintzberg
➢ a well-known management researcher, studied
actual managers at work
➢ concluded that what managers do can best be
described by looking at the managerial roles they
engage in at work
• Managerial roles
➢ refers to specific actions or behaviors expected of
and exhibited by a manager
WHAT DO MANAGERS DO? CONDITIONS
• Interpersonal roles
➢ involve people (subordinates and persons outside
the organization) and other duties that are
ceremonial and symbolic in nature
❖ Figurehead
✓ symbolic head; performs routine duties of
legal or social nature
❖ Leader
✓ motivation of subordinates, staffing, and
training
❖ Liaison
✓ maintains self-developed network of
outside contacts
• Informational roles
➢ involve collecting, receiving, and disseminating
information
❖ Monitor
✓ seeks and receives wide variety of internal
and external information to develop
thorough understanding of organization
and environment
❖ Disseminator
✓ transmits information received from
outsiders or from subordinates to
members of the organization
 ❖ Spokesperson
WHAT DO MANAGERS DO? CONDITIONS
✓ transmits information to outsiders on Skills Approach (proposed by Robert L. Katz)
organization’s plans, policies, actions, • Technical skills
results, etc. ➢ the job specific knowledge and techniques
• Decisional roles needed to proficiently perform work tasks.
➢ entail making decisions or choices ➢ These skills tend to be more important for first-
❖ Entrepreneur line managers because they typically are
✓ searches organization and its managing employees who use tools and
environment for opportunities and techniques to produce the organization’s
initiates improvement projects products or service the organization’s
❖ Disturbance handler customers.
✓ responsible for corrective action when • Human skills
organization faces important ➢ the ability to work well with other people
unexpected disturbances • Conceptual skills
❖ Resource Allocator ➢ the ability to think and conceptualize about
✓ allocates of organizational resources abstract and complex situations concerning the
❖ Negotiator organization
✓ represents the organization at major ➢ managers see the organization as a whole,
negotiations understand the relationships among various
subunits, and visualize how the organization fits
WHAT MANAGERS ACTUALLY DO? (MINTZBERG) into its broader environment
• Interaction
✓ with others
✓ with the organization
SKILLS NEEDED AT DIFF’T MANAGEMENT LEVELS
✓ with the external context of the organization
• Reflection
✓ thoughtful thinking
• Action
✓ practical doing

NEW MODEL OF MANAGING

• Henry Mintzberg
“Basically, managing is about influencing action. It’s
about helping organizations and units to get things
done, which means action.”
➢ Three Ways
1. by managing actions directly (for instance,
negotiating contracts, managing projects,
etc.),
2. by managing people who take action (for
example, motivating them, building teams,
enhance the organization’s culture, etc.), or
3. by managing information that propels people
to take action (using budgets, goals, task
delegation, etc.).
• The manager at the center of the model has two
roles—framing, which defines how a manager
approaches his or her job; and scheduling, which
“brings the frame to life” through the distinct tasks
the manager does.
• A manager enacts these roles while managing
action in the three “planes”: with information,
through people, and sometimes by taking action
directly.
CONCEPTUAL SKILSS
✓ Using information to solve business problems
✓ Identifying of opportunities for innovation
✓ Recognizing problem areas and implementing
solutions
✓ Selecting critical information from masses of data
✓ Understanding of business uses of technology
✓ Understanding of organization’s business model
COMMUNICATION SKILSS
✓ Ability to transform ideas into words and actions
✓ Credibility among colleagues, peers, and
subordinates
✓ Listening and asking questions
✓ Presentation skills; spoken format
✓ Presentation skills; written and/or graphic
formats
EFFECTIVENESS SKILSS
✓ Contributing to corporate mission/departmental
objectives
✓ Customer focus
✓ Multitasking: working at multiple tasks in
parallel
 ✓ Negotiating skills environmental, and social opportunities into
✓ Project management its business strategies
✓ Reviewing operations and implementing
CHANGES IMPACTING THE MANAGER’S JOB
improvements
EFFECTIVENESS SKILSS CONDITIONS
✓ Setting and maintaining performance standards
internally and externally
✓ Setting priorities for attention and activity
✓ Time management

INTRAPERSONAL SKILSS CONDITIONS

✓ Coaching and mentoring skills
✓ Diversity skills: working with diverse people and
cultures
✓ Networking within the organization
✓ Networking outside the organization
✓ Working in teams; cooperation and commitment
WHY STUDY MANAGEMENT
MANAGEMENT SKILLS & FUNCTION MATRIX
• The Value of Studying Management
➢ The universality of management
✓ Good management is needed in all
organizations.
➢ The reality of work
✓ Employees either manage or are managed.
➢ Rewards and challenges of being a manager
✓ Management offers challenging, exciting and
creative opportunities for meaningful and
fulfilling work.
✓ Successful managers receive significant
monetary rewards for their efforts.

UNIVERSAL NEED FOR MANAGEMENT

HOW THE MANAGER’S JOB IS CHANGING
• The Increasing Importance of Customers
➢ Customers: the reason that organizations
exist
✓ Managing customer relationships is the
responsibility of all managers and
employees.
✓ Consistent high quality customer service
is essential for survival. REWARDS & CHALLENGERS OF BEING A MANAGER
• The Increasing Importance of Innovation
➢ Doing things differently, exploring new
territory, and taking risks
✓ Managers should encourage employees to
be aware of and act on opportunities for
innovation.
• Importance of Sustainability to the Manager’s Job
➢ Sustainable Development
➢ Sustainability
✓ a company’s ability to achieve its business
goals and increase long-term shareholder
value by integrating economic,