INTRODUCTION TO ENGINEERING MANAGEMENT (part 3)

THE PROCESS OF MANAGEMENT

Management - process consisting of planning, organizing, directing or leading and
controlling

1. Decision Making
In Robert Medina's book "Engineering Management," he emphasizes that
engineer managers bear the responsibility of providing leadership to achieve the
organization's objectives and goals. They must delve into the nuances of decision-
making, recognizing its pivotal role in their professional success. Proficiency in
decision-making can either inflict harm or destruction upon the organization.
Conversely, making sound decisions fosters an environment conducive to the
continuous growth and success of the organization.
● Decision-Making as a Management Responsibility - Managers bear the
responsibility of formulating decisions that advance the interests of the
company. Decision-making is an ongoing process occurring at various
organizational levels and stages. When the organization necessitates resource
allocation, a designated authority must authorize the allocation to specific
individuals. It is reasonable for managers to occasionally make incorrect
decisions. However, a discerning manager promptly identifies and endeavors
to rectify such errors. A manager's failure manifests when they abstain from
taking corrective action or refrain from making decisions altogether. Effective
management necessitates a commitment to achieving sound decision-making
for improved outcomes. Regardless of the decision's outcome, managers
assume full responsibility, whether favorable or unfavorable. Moreover, as one
ascends the managerial hierarchy, the complexity of decision-making
escalates, presenting greater intricacies and challenges.
Example Situation:
A production manager has received a directive from a superior to acquire a new
air-conditioning unit due to the malfunction of the existing one. Simultaneously, the
manufacturing department has made a requisition for an additional forklift for the
warehouse. However, another superior has emphasized the need to prioritize one
of these purchases due to budget limitations. Consequently, the production
manager finds himself at a juncture where he must make a judicious decision. It is
imperative that his decision is underpinned by a well-reasoned argument, as he
will ultimately assume responsibility for the ensuing outcome.

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2. Planning Technical Activities
Planning, a pivotal function of management, involves setting objectives and
devising a strategic course of action to achieve those objectives. Effective planning
hinges on managers' awareness of their organization's environmental context and
their capacity to forecast future conditions, all while demonstrating adept decision-
making skills. This multifaceted process encompasses several steps, commencing
with environmental scanning, which necessitates managers' understanding of
critical contingencies such as economic factors, competitors, and customer
dynamics. Subsequently, these insights serve as the foundation for forecasting
future conditions, serving as the bedrock upon which the planning process is built.
● Strategic planning involves analyzing an organization's strengths,
weaknesses, opportunities, and threats to determine how it can compete
effectively. It typically spans a longtime frame, often over three years, and
encompasses the entire organization while setting objectives based on the
organization's mission. This process is primarily led by top management.
● Tactical planning, which extends over an intermediate period of one to three
years, is aimed at devising concrete and precise strategies for putting the
strategic plan into action. This phase of planning is commonly undertaken by
managers at the middle level of the organization.
● Operational planning typically starts with the presence of organization-wide
or subunit goals and outlines methods to achieve them. It is a short-term
planning process, usually spanning less than a year, focused on devising
detailed action steps aligned with the strategic and tactical plans.

3. Organizing Technical Activities

Organizing, a fundamental management function, encompasses the creation of an
organizational framework and the allocation of human resources to achieve
objectives. The organizational structure serves as the fundamental system for
coordinating efforts and is typically visually represented through an organization
chart, providing a clear depiction of the hierarchy within the organization. These
decisions regarding the organizational structure are commonly referred to as
organizational design decisions. Additionally, organizing extends to crafting
individual job roles within the organization, necessitating choices about job duties,
responsibilities, and how they should be executed, typically termed "job design"
decisions.
Numerous organizations have sought to find an equilibrium between the demand
for specialized workers and the necessity for employees to engage in versatile and
autonomous roles. Job designs today frequently incorporate principles like
empowerment, job enrichment, and teamwork. For instance, HUI Manufacturing,
a custom sheet metal fabricator, has departed from conventional departmental

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 structures to prioritize attentiveness and responsiveness to customer
requirements. Through practices like company-wide gatherings and team
interactions, HUI employees have acquired a deep understanding of their
customers and how best to cater to their needs.

4. Staffing the Engineering

Staffing is a crucial facet of management focused on acquiring, deploying, and
retaining competent personnel for all levels within an organization, from top
management to the lower tiers. It encompasses the methodical and systematic
processes of sourcing, allocating, utilizing, preserving, and nurturing human
resources. Staffing represents the skill of acquiring, nurturing, and sustaining a
contented and proficient workforce. This managerial function involves constructing
an organization through activities like recruitment, selection, and individual
development. Its overarching goal is to ensure that the organization maintains the
appropriate number of qualified individuals in the right roles, at the correct times,
to perform the necessary tasks effectively.

5. Communicating
Effective communication is a crucial competence for engineering managers,
particularly in their interactions with the research and development (R&D) sector.
Whether the goal is staying updated on the latest discoveries, partnering on fresh
initiatives, or exchanging personal perspectives, mastering the art of
communication with engineering management researchers and professionals is
imperative. In this article, we will provide guidance and recommended approaches
for achieving this skill.
● Know Your Audience - Before engaging with engineering management
researchers and practitioners, it's crucial to grasp their backgrounds, roles, and
interests. Engineering management encompasses diverse areas like project
management, innovation, quality, risk, and leadership. Researchers and
practitioners vary in terms of industry, sector, organization, and project, so
adapting your communication to their specific needs is essential. Avoid using
jargon or making assumptions to ensure effective communication.
● Choose the right channel - Effective communication involves selecting the
appropriate channel for your audience and purpose. Options include email,
phone, video calls, social media, blogs, podcasts, webinars, conferences, and
more. Each channel offers distinct advantages and drawbacks, depending on
formality, interactivity, accessibility, and feedback requirements. For instance,
while email is convenient for information exchange, it may not suit complex or

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 urgent matters. Likewise, journal articles offer credibility but may lack broad
reach or foster active discussions.
● Be clear and concise - When communicating with engineering management
researchers and practitioners, whether in writing or speaking, clarity and
conciseness are paramount. This involves using straightforward language,
avoiding unnecessary words, and structuring your ideas logically. Begin by
stating your purpose and goal upfront. For instance, if you're emailing
someone for a research collaboration, introduce yourself, explain the project,
express your interest, and outline your expectations. Support your claims and
arguments with pertinent, reliable information like data, evidence, or
references, but be mindful not to overwhelm your audience with excess or
irrelevant details that might confuse or disengage them.
● Show interest and respect - Communication goes beyond conveying
information; it's about fostering relationships and trust with engineering
management researchers and practitioners. To achieve this, display genuine
interest and respect for your audience, their work, and their viewpoints. You
can achieve this by posing open-ended questions, actively listening,
acknowledging their contributions, offering constructive feedback, showing
appreciation, and maintaining a polite and professional demeanor.
Additionally, remain culturally and ethically aware, refraining from any
language or conduct that may offend or harm. This includes avoiding
plagiarism, misrepresentation of work, or making derogatory remarks.
● Seek feedback and improvements - Continual improvement in your
communication with engineering management researchers and practitioners is
crucial. Feedback is a valuable tool for enhancing your communication skills
and outcomes. Seek input from your audience, peers, mentors, or self-
reflection, welcoming opinions, suggestions, or criticisms. Embrace feedback
with an open and constructive mindset, avoiding personalization or defensive
reactions. Instead, express gratitude for feedback, analyze it, and use it to
refine your future communication efforts.

6. Motivating
Management motivation pertains to the strategies managers employ to inspire their
teams, fostering higher performance and enhancing the overall work environment.
When organizations have motivating managers, they often observe heightened
productivity and accomplishments. Learning the art of motivating teams is a
valuable skill for leaders, offering long-term benefits in one's career, regardless of
the industry they operate in.
● Intrinsic Motivation - arises when you are driven to accomplish a task due to
its personal satisfaction or inner fulfillment, rather than seeking an external

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 reward. In this context, the activity itself becomes its own source of
gratification. Instances of intrinsic motivation encompass:
1. Learning to play a musical instrument for the calming effect it provides.
2. Engaging in a run to reduce stress levels.
3. Cleaning your home to experience a sense of organization.
4. Participating in a sport purely for the joy it brings.
5. Reading a book for the sheer pleasure of a compelling narrative.
6. Volunteering your time to assist others out of genuine willingness to
help.
● Extrinsic Motivation - pertains to the drive to accomplish a task with the
intention of either attaining a reward or evading punishment. In this context,
the motivation does not stem from personal preference or satisfaction but is
driven by the prospect of external consequences. Instances of extrinsic
motivation include:
1. Learning a musical instrument to satisfy someone else's expectations.
2. Engaging in a run with the goal of achieving a leaner physique.
3. Cleaning your room to avoid facing disciplinary measures.
4. Participating in a sport with the aim of winning a medal.
5. Reading a book because it's a required assignment.
6. Volunteering primarily to enhance your resume or public image.
7. Leading
Leading entails leveraging social and informal channels of influence to instigate
action among others. Effective managerial leadership cultivates enthusiasm and
commitment among subordinates in the pursuit of organizational goals.
Behavioral sciences have significantly enriched our comprehension of this
managerial function. Research on personality and job attitudes furnishes valuable
insights into how managers can optimally lead their subordinates. Notably, this
research underscores the importance of managers understanding their
subordinates' personalities, values, attitudes, and emotions as a prerequisite for
effective leadership.
Further contributions from studies on motivation and motivation theory offer
guidance on how to invigorate employees to contribute productively. Research on
communication provides strategies for managers to communicate effectively and
persuasively. Exploring leadership and leadership styles, these studies address

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 critical questions such as the attributes of effective managerial leadership and the
situational appropriateness and effectiveness of different leadership styles.

8. Controlling
Controlling within the realm of management ensures performance remains in line
with established standards. This process unfolds through three integral steps:
firstly, establishing performance benchmarks; secondly, comparing actual
performance against these standards; and thirdly, implementing corrective actions
when necessary. These performance standards can span financial metrics like
revenue and costs or non-financial aspects such as production quantities, product
quality, or customer satisfaction.
Performance evaluation methods vary based on these standards and may include
financial reports, sales data, production outcomes, customer feedback, or formal
performance appraisals. Notably, controlling is a function exercised by managers
across all organizational levels. It's crucial to differentiate managerial control from
behavioral control; it's not about manipulating the personalities or values of
subordinates but rather ensuring their activities align with departmental and
organizational objectives.
Effective controlling requires well-structured plans to provide performance
standards and necessitates a clear understanding of responsibility for deviations.
Traditional control mechanisms like budget and performance audits involve
meticulous record examination. While often associated with financial aspects,
controlling extends to overseeing production processes, service delivery, policy
compliance, and various organizational facets. These four management
functions—planning, organizing, leading, and controlling—constitute a timeless
framework for understanding the manager's role, even amidst changing
managerial landscapes and tools.

9. Managing Production and Services

At its core, business revolves around meeting customer needs through the
provision of goods and services, ultimately creating value for customers and
addressing their problems. Production and operations management, in turn,
focuses on the application of business organization and management principles in
the process of producing goods and delivering services.
In successful organizations, a clear distinction between line and support functions
is vital. Production falls within the line function, directly impacting the customer
experience and the organization's future.

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 The production function's core aim is to enhance the value of products or services,
building strong and lasting customer relationships. This relies on effective
collaboration between Marketing and Production, with Marketing serving as
frontline representatives, offering insights into customer needs.
Production management, the coordination of planning and control to deliver value
to customers, is at the heart of this process. It aligns production with customer
requirements, nurturing enduring customer relationships and driving the
organization forward.

10. Managing the Marketing Function

Marketing management encompasses a range of functions that encompass
analysis, coordination, planning, and execution to enhance customer engagement,
boost sales, and raise product/service awareness. These functions revolve around
the implementation of strategies and objectives related to product, place,
promotion, and pricing. Marketing managers have a hand in shaping both the
physical and psychological aspects of marketing, including the degree, structure,
and timing of customer demand.
The psychological aspects of marketing involve recognizing consumer needs and
influencing consumption patterns and behavior. The physical components of
marketing are geared towards addressing these identified needs. Marketing
managers perform the following key functions:
1. Setting Marketing Objectives: Aligning these objectives with the
organization's broader strategic goals.
2. Planning to Achieve Objectives: Conducting sales forecasts and
devising marketing strategies and programs to meet the stated marketing
objectives.
3. Organizing the Marketing Process: This entails staffing and
structuring the roles and responsibilities within the marketing department.
4. Coordinating and Directing Marketing Activities: After formulating
the marketing plan, marketing managers oversee activities such as
creating promotional materials, designing advertising campaigns, and
monitoring sales.
5. Analyzing and Evaluating Marketing Processes: Marketing
managers engage in analysis and evaluation to gauge the performance
and effectiveness of the marketing procedures.

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 11. Managing the Finance Function
Engineering firms rely on financial resources to support their ongoing operations.
Ensuring a consistent and adequate source of funds is crucial, and effective
financial management plays a key role in achieving this. When the right amount of
funds is available at the right time, engineering organizations can operate
smoothly. Conversely, a shortage of funds to finance planned activities increases
the risk of failing to meet objectives.
Engineering managers must recognize that managing finances is a critical aspect
of their role. Without sufficient funds, it becomes challenging, if not impossible, to
carry out essential functions such as production, distribution, research and
development, and more. In essence, the finance function is a paramount concern
for successful management in the engineering sector.
The finance function represents a significant managerial duty focused on obtaining
and managing funds to accomplish business objectives. Whether an engineering
manager oversees the entire firm or a specific department, they play a vital role in
determining the funding needs, timing, acquisition strategies, and efficient
utilization of financial resources. In fulfilling their responsibilities, engineering
managers, regardless of their management level, must actively contribute to the
attainment of the company's financial goals.

Engineering Management Procedures

Engineering management procedures are the foundation of efficient engineering projects.

They combine technical and business expertise, emphasizing systematic design,
synthesis, and optimized decision-making.

5 PROCEDURES IN ENGINEERING MANAGEMENT

1. Foundation Process
2. Soft Skills Process
3. Support Process
4. Advanced Scheduling Method
5. Project Execution Monitoring and Control

1. FOUNDATION PROCESS

The Foundation Process is the initial phase of project management that involves setting
the groundwork for successful engineering projects.

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This process includes:

 Setting project objectives: Defining what the project aims to achieve.

 Identifying stakeholders: Recognizing individuals or groups with an interest in or
impact on the project.
 Defining project scope: Clearly outlining the boundaries and deliverables of the
project.
 Allocating resources: Determining and assigning the necessary personnel and
materials.

2. SOFT SKILLS PROCESS

The Soft Skill Process focuses on enhancing interpersonal skills essential for effective
engineering management.

Essential Soft Skills:

 Leadership: The ability to guide and motivate a team towards project goals.
 Communication: The skill to convey ideas, information, and instructions clearly and
effectively.
 Conflict resolution: The capability to identify and address conflicts among team
members.
 Team collaboration: The capacity to foster teamwork, cooperation, and synergy
among team members.

3. SUPPORT PROCESS

The Support Process encompasses a range of essential support functions vital for the
success of engineering projects.

Key Functions:

 Resource allocation: The process of assigning and managing resources such as

personnel, equipment, and materials.
 Budgeting and finance: The financial planning and management of project
expenses and resources.
 Risk management: The identification, assessment, and mitigation of potential
project risks.
 Quality assurance: The systematic measures taken to ensure that project
deliverables meet quality standards.

4. ADVANCED SCHEDULING METHOD

Advance Scheduling is a strategic planning approach that optimizes project timelines and
resources to enhance project efficiency.
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Techniques:

 Critical Path Method (CPM): A project management technique used to determine

the most critical tasks and their sequencing.
 Gantt charts: Visual representations of project schedules and task dependencies.
 Resource leveling: Balancing resource allocation to avoid overloading or
underutilizing resources.
 Agile methodologies: Iterative project management approaches that emphasize
flexibility and adaptability.

5. PROJECT EXECUTION MONITORING AND CONTROL

 Monitor and Control processes involve tracking project progress and making
necessary adjustments to ensure the project stays on course.
 Key Performance Indicators (KPIs):
 Cost variance (CV): The difference between budgeted and actual project costs.
 Schedule variance (SV): The difference between planned and actual project
schedules.
 Earned Value (EV): A method for measuring project performance by comparing
planned and actual progress.
 Quality metrics: Specific measurements used to assess and maintain the quality
of project deliverables.

INTEGRATION OF PROCEDURES

These procedures work together to ensure project success:

a. Foundation sets the project's direction.

b. Soft skills facilitate effective team collaboration.
c. Support ensures resource availability.
d. Scheduling optimizes project timelines.
e. Monitoring and control keep projects on track.

References:

[Authors removed at request of original publisher]. (2015, October 27). 1.5 planning,
organizing, leading, and controlling. Principles of Management.
https://open.lib.umn.edu/principlesmanagement/chapter/1-5-planning-organizing-
leading-and-controlling-2/

[Authors removed at request of original publisher]. (2015a, October 27). 1.5 planning,
organizing, leading, and controlling. Principles of Management.

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