ENGINEERING MANAGEMENT - Managers within the field of engineering are trained to

understand Human resource management, finances,

ENGINEERING (Merriam Webster) industrial psychology, quality control, operations research
- the activities or function of an engineer and environmental management.
- the application of science and mathematics by which the - Successful engineering managers typically require training
properties of matter and the sources of energy in nature are and experience in business and engineering to:
made useful to people
• Operating effectiveness and efficiency
- the design and manufacture of complex products
• Problem solving and operations improvement
- calculated manipulation or direction (as of behavior)
- The Accreditation Board for Engineering and Technology Engineering manager: Engineer possessing both abilities to apply
(ABET) defines engineering as: “The profession in which a engineering principles and skills in organizing and directing people
knowledge of the mathematical and natural sciences gained and projects.
by study, experience, and practice is applied with judgment
to develop ways to utilize, economically, the materials and Engineering managers do: Management of technical functions
forces of nature for the benefit of mankind.”
Functions of Engineering Encompass the following areas:
Engineer: A person applying his mathematical and science knowledge
1. Research
properly for mankind.
2. Design and Development
Engineering: A discipline not an art. 3. Testing
4. Manufacturing
MANAGEMENT 5. Construction
- A set of activities (planning and decision making, organizing, 6. Sales
leading and control) directed at an organization’s resources 7. Consulting
(human, financial, physical and information) with the aim of 8. Government
achieving organizational goals in an efficient and effective 9. Teaching
manner. (Griffin) 10. Management
• Getting things done through people.
• Directing the actions of a group to achieve a goal The Engineer in various Types of Organization
in most efficient manner. Organizations may be classified according to the degree of
• Process of achieving organizational goals by engineering jobs performed:
working with and through people and 1. Level One – those with minimal engineering jobs like
organizational resources. retailing firms.
ENGINEERING MANAGEMENT 2. Level Two – those with a moderate degree of engineering
- Direct supervision of engineers and/or the engineering jobs like transportation companies.
function. 3. Level Three – those with a high degree of engineering jobs.
- Application of quantitative methods and engineering Top 10 Highest Paying Engineering Jobs of 2022
techniques to the practice of management. 1. Environmental Engineer
• Quantitative methods emphasize objective 2. Biomedical Engineer
measurements and the statistical, mathematical, 3. Systems Engineer
or numerical analysis of data collected through 4. Electrical Engineer
polls, questionnaires, and surveys, or by 5. Chemical Engineer
manipulating pre-existing statistical data using 6. Big Data Engineer
computational techniques. 7. Nuclear Engineer
- Refers to the joining of specific knowledge with the science 8. Aerospace Engineer
to manage people and assets within an engineering firm. At 9. Computer Hardware Engineer
the point the engineer manages the work of individuals, the 10. Petroleum Engineer
engineer is experiencing the first period of engineering
management. The primary duty is to lead a team in creating Manager: Types of Skills
a yield consistent with the needed specifications of the Managers need four types of skills:
organization. (Chang 20005) 1. Technical Skill: Specific subject related to skills such as
- Engineering management is the fusion of business and engineering, accounting, etc.
engineering principles. • Knowledge of and proficiency in activities
- Specialized form of management that is concerned with the involving methods, processes, and procedures.
application of engineering principles to business practice. • Involves working with tools and specific
- Career that brings together the technological techniques.
problemsolving knowledge of engineering and the 2. Interpersonal/ Human Skill: Skills related to dealing with
organizational, administrative, and planning abilities of others and leading, motivating, or controlling them.
management in order to oversee complex enterprises from • Ability to work with people.
conception to completion • It is cooperative effort.
• It is teamwork.
 • It is the creatin of an environment in which people
feel secure and free to express their opinions
3. Conceptual Skill: Ability to discern the critical factors that
will determine an organization’s success or failure.
• Ability to see the “big picture”, to recognize
significant elements in a situation.
• Understand the relationships among the
elements.
4. Design Skill: Ability to solve problems in ways that will
benefit the organization.
• Have the skill of a good design engineer in
working out a practical solution to a problem.
• Have that valuable skill of being able to design a
workable solution to the problem in the light of
realities.
Managerial Roles (What Managers Do)
1. Interpersonal roles
- The interpersonal roles are ones that involve
people (subordinates and persons outside the
organization) and other duties that are
ceremonial and symbolic in nature.
- A manager’s interpersonal roles include acting as
a leader, a manager, and as a team player.
To perform her/his role as a leader s/he requires
communication skills, emotional intelligence, listening
skills, team-working, influencing, persuasion and
negotiation skills, mediation and conflict resolution
skills, decision-making, and problem-solving skills.
Her/his role as a manager is to assure everyone
understands one’s roles, one’s responsibilities, one’s
tasks, and one’s objectives. For this s/he requires
planning, organizing, and controlling skills.
Her/his role as a team player is to develop a team
ethos, form team goals, act as a support frame, to
know team members’ strengths, weaknesses, and
skills. For this s/he requires excellent listening and
questioning skills, fine meeting skills, creative problem-
solving skills, and effective decision-making skills.
The three interpersonal roles are figurehead, leader, and liaison.
Figurehead - These are symbolic duties. The nature of these duties is
social or legal.
Leader - This involves each aspect of being a quality leader including
forming a team, guiding the members, motivating them, and building
strong relationships.
Liaison- involves maintaining and developing a network for assistance
and information outside the office.
2. Informational Roles
- The informational roles involve collecting, receiving,
and disseminating information.
- Informational roles are those in which you gather and
then pass on information. These roles have started to
change dramatically with technological improvement.
- The three informational roles are monitor,
disseminator, and spokesperson.
Monitor Role: Collects information about internal operations and
external events.
- It includes seeking present information from various
sources. For instance, the manager continuously examines
the environment for information, asks subordinates and
liaison contacts, and collects unsolicited information.
Disseminator Role: Transforms information internally to everybody in
organization (like a telephone switchboard)
- It involves passing information to other people inside as well
as outside the company or organization.
Spokesman Role: Public relations
- This role deals with sending some of the information to
individuals outside the company or organization about the
needs, actions, policies, or plans of the company.
3. Decisional Roles
- The decisional roles entail making decisions or choices.
- These are the managerial roles that revolve around making
choices.
- According to Mintzberg, making decision is the most
important part of any managerial function. He identified
four roles which are based on several forms of decisions.
• entrepreneur,
• disturbance handler,
• resource allocator, and
• negotiator
Entrepreneurial Role: Initiates changes, assumes risks, transforms
ideas into useful products.
- Entrepreneur role involves `making decisions about altering
what is taking place in an organization. Managers may need
to initiate change and actively decide what is needed to be
done to keep pace with the changing situations and for
improvement.
Disturbance Handler Role: Deals with unforeseen problems and crisis.
- This role requires managers to make decisions on
unpredictable and high-pressure disturbing events which
are beyond their control. For instance, managers must
resolve conflicts not only between his department and
other departments, but also among subordinates.
Resource Allocator Role: Distributing resources
- The resource allocator role is pivotal to much organizational
analysis. The managers need to make decisions regarding
allocation of money, people, time, equipment, and other
resources.
Negotiator Role: Bargains with suppliers, customers etc. in favor of
enterprise
- This role is crucial because a manager requires negotiating
with others and in this process he requires making decisions
regarding the commitment of organizational resources.
Role Differences between Engineers and Managers organization's work. When managers possess the right combination
of vision, skill, experience, and determination, they can lead an
Characteristics Engineer Manager organization to success.
Focus Technical or Interested in staff
maintenance jobs and strength
Decision Making Enough information Unclear indistinct
Basis with great certainty data to come to a Functions of Management (Mikee)
conclusion 1. Planning
Involvement Individual worker, Decides role of 2. Organizing
develops technical others to meet 3. Leading
policies. targets. 4. Controlling
Work Output Various set targets No set targets
besides finances. PLANNING
Effectiveness Depends on Relies on - In the planning phase, management should identify the
technical expertise communication, goals and create a reasonable course of action to attain
and own initiatives. leadership skills, them.
completes tasks
through people. 3 TYPES OF PLANNING
Dependency A great degree of Cannot perform 1. STRATEGIC - A long-term, high-level type of foundational
independence alone, reliant on planning that emphasizes the mission, values, and vision of
others the organization.
Responsibility Only one job before Tracks various 2. TACTICAL - A short-term (one year or less), objective-
the other targets focused type of planning, often carried out by middle
simultaneously. management.
Creativity Scientifically and Better with human 3. OPERATIONAL - A plan that describes the daily roadmap of
technologically management the activities within the company.
focused
Bottom Line Performing as Performing tasks to ORGANIZING
expected achieve company’s - The organizing function consists of taking the previously
objectives created plan and putting it into action.
Concern Technical failures Product acceptance 1. Identifying all the necessary steps of the project
in the market and 2. Determining who will complete the actions and deploying
contributions to the
those resources to work
industry at large.
3. Establishing levels of authority and responsibility for every
individual involved
Engineering Management Knowledge Domain
- Engineering management is the stage that speaks to the LEADING
move from the technical thinking to management thinking, - Leading consists of motivating employees and influencing
with the skill to integrate. Not all engineers regard this as an their behavior to achieve organizational objectives.
easy move, but consider this as an opportunity to gain
experience. Management skills are key in this phase 1. DIRECTING - The manager leads by deciding with little
input from the employee. This is an effective
Engineering Management Body of Knowledge (EMBOK)
leadership style for new employees who need a lot of
• Management and Leadership - understanding
initial direction and training.
management and team behaviors, while gaining
2. COACHING - The manager is more receptive to input
communication and motivation skills.
from employees. They may pitch their ideas to
• Financial Management - financial decision analysis
3. employees to work cooperatively and build trust with
• Engineering Project Management - Project management
team members.
techniques, controlling risk and managing conflicts within
4. SUPPORTING - The manager decides with team
project teams. Managing the project management office.
members but focuses more on building relationships
• Marketing - Product development and market research, within the team.
staying current with the consumer needs.
5. DELEGATING - The leader provides a minimum of
• Systems and Decision Making - Developing tools to enable guidance to employees and is more concerned with
the use of computer applications to improve business the vision of the project than day-to-day operations.
models.
CONTROLLING
Functions of the Engineering Manager - Controlling is the process of evaluating the execution of the
Management entails four basic functions: planning, organizing, plan and making adjustments to ensure that the
leading, and controlling resources (land, labor, capital, and organizational goal is achieved.
information) to efficiently reach a company's goals.

Managers are the employees responsible for performing these four

functions in addition to a number of other duties to coordinate the
BUDGET ADJUSTMENTS
- Managers monitor the budget and resources to ensure that
they are using the resources available and not going over
budget.
STAFFING ADJUSTMENTS
- Managers may need to make challenging decisions such as
whether to reassign an employee who produces low-quality
work to a different task or dismiss them from a project.
When Organizational Design is Effective it can have a number of
benefits including:
• Increased efficiency
• Faster and more effective decision making
• Improved quality of goods and services
• Better customer relations
• Safer working conditions
• A happier, healthier and more motivated workforce
• Greater preparedness for future challenges

What Triggers Organizational Design?

Topic 2: ORGANIZATION PLANNING DESIGN DEVELOPMENT (Jols)
Organization design is often triggered by three common issues:
INTRODUCTION 1. Changes in the Environment
2. You've Launched a New Strategy
Organization planning defines or reshapes the organization structure 3. Your Current Design Is Not Fit for Purpose
of a firm as basis for:
1. Clarifying objects, roles and relationships. Types of Organization Design
2. Determining the management resources required now and Organization Design is often divided into two styles:
in the future. 1. Hierarchical
3. Providing information on job requirements so that the right 2. Organic
people can be appointed, adequate training can be given,
Characteristics Hierarchical Structure Organic Structure
and payments to staff are commensurate with their relative
Complexity High – with an emphasis Usually lower –
levels of responsibility and value to the company.
on the horizontal differentiation and
Organization Planning Techniques separation into functions, functional separation.
1. Organization Analysis: Process of defining objectives and departments and
divisions.
activities of a firm in the light of an examination on its
Formality High – lots of well-defined Lower – no real hierarchy,
external environment and internal circumstances.
lines of control and and less formal division of
2. Organization Design: The information provided by the
responsibility responsibilities.
organization analysis is used to define the structure of the Participation Low – employees lower Higher – power – level
organization, the function of each major activity and the down the organization employees have more
role and responsibilities of each management position in have little involvement in influence on decision-
the structure. decision-making makers.
Communication Downward – information Lateral, upward and
Principal Components of an Organization starts at the top and downward – information
Management Systems: Structure and Process trickles down to flows through the
1. Planning System employees organization with fewer
2. Management Control System barriers
3. Communication and Information System ORGANIZATION DEVELOPMENT
4. Evaluation and Reward System - Organization Development is an objectives-based approach
to systems change within an organization.
PRINCIPLES OF SOUND ORGANIZATION
- A sound organization divides the entire enterprise into ORGANIZATION DEVELOPMENT STRATEGY:
different departments, sections and sub-sections according Five Phases to Designing and Implementing
to the functions to be performed by them. Each function of
an enterprise has got its own importance. Emphasis is given 1. Entry – exploring the problem, opportunities or situation.
according to their relative importance. Output is an engagement contact or project plan with
1. Realization Of objectives expectations and agreement on scope.
2. Determination Of Activities 2. Diagnosis – the fact-finding phase. A data collection process
3. Grouping Of Activities where information is gathered, analyzed and reviewed,
4. Definiteness 3. Feedback – exploring information for understanding, clarity
5. Caution and Conviction: (Causation & Conviction) and accuracy. Output is an action plan that outlines the
6. Economy And Standardization change solutions to be developed, and defined success
7. Fixing Of Responsibility indicators based on the information and data analysis.
8. Delegation Of Authority 4. Solution – correcting the problem, closing gaps, improving
9. Coordination or enhancing performance, or seizing opportunities. Output
10. Control is a plan or suggested training course curriculum.
5. Evaluation – collecting data to determine if the initiative is
ORGANIZATION DESIGN meeting goals and achieving defined success indicators.
- Organization Design is a process for shaping the way Output id an evaluation report with recommendations for
organizations are structured and run. continuous improvement.
ORGANIZATION DEVELOPMENT INITIATIVES
Four Typical Categories:
1. Human process
2. Strategic
3. Tecno-structural initiatives
4. Human resource management
Topic 3: MANAGEMENT PLANNING AND CONTROL (Ronald)
Introduction
Management is a universal phenomenon. It is a very popular and
widely used term. All organizations - business, political, cultural or
social are involved in management because itis the management
which helps and directs the various efforts towards a definite purpose.
- According to Harold Koontz "Management is an art of
getting things done through and with the people in formally
organized groups. It is an art of creating an environment in
which people can perform and individuals and can co-
operate towards attainment of group goals "
Management Planning
Planning is the most basic of all what is management planning
functions. There is no choice between planning and so planning. The
Choice is only with regards to the method and techniques used to
plan.
Most of us are planning many things in our day-to-day lives.
Frequently, we plan to do official work, improve our careers, plan our
investment, built own houses, do business and so on.
- Planning is the process of selecting objectives and
determining the course of action required so achieve these
objectives. Lot of information has to be gathered and
processed before planning is formulated.
- Planning bridges, the gap from where we are and where we
want to go. It makes the things possible to occur which
would not otherwise happen
The following observations suggest about principles of planning.
• Planning is outlining a future course of action in order to
achieve an objective.
• Planning is looking ahead.
• Planning is getting ready to do something tomorrow
• Plan is a trap laid down to capture the future.
Some definitions of principles of planning
- According to Knootz and O’Donnell, “Planning is deciding in
advance what to do. It is the selection among alternatives
of future course of action for enterprise as a whole and each
department within it. Plans involve selecting enterprise
objectives and determining ways of achieving them”
- According to Terry, “Planning is the selecting and relating
facts, and making and using of assumptions regarding the
future in the visualization and formulation of proposed
activities to be lived necessary to achieve desired results” .
Classical Principles of Management
- Emerged from the Industrial Revolution and revolves
around maximizing efficiency and production.
Classical management theory prioritizes profit and assumes that
personal gain motivates employees. It aims to streamline operations
and increase productivity.
Major concepts include specialization, incentivization, and
hierarchical structure. The first two contribute to employee efficiency
and drive. Centralized leadership simplifies decisionmaking, and a
meritocratic chain of commands provides order and oversight. At
every level, standardization reduces waste and error.
Scientific Management Theory
- Scientific management theory is sometimes called Taylorism
after its founder Frederick Winslow Taylor, a mechanical
engineer. Taylor employed scientific methods to develop
organizational principles that suited mass production
needs. After creating and proving his theory as a manager
and consultant, he wrote
- ” The Principles of Scientific Management” in 1911.
Bureaucratic Management Theory
- Weber believed that standard rules and well-defined roles
maximize the efficiency of an organization. Everyone should
understand the responsibilities and expectations of their
position, their place within a clear hierarchy and general
corporate policies. Hiring decisions and the application of
rules should be impersonal, guided only by reason and
established codes.
Administrative Management Theory
- Just as scientific management theory is sometimes called
Taylorism,
- Administrative management theory is sometimes called
Fayolism.
1. Division of work: Divide work into tasks and between
employees.
2. Authority: Balance responsibility with commensurate
authority.
3. Unity of command: Give each employee one direct
manager.
4. Unity of direction: Align goals between employees.
5. Equity: Treat all employees equally.
6. Order: Maintain order through an organized workforce.
7. Discipline: Establish and follow rules and regulations.
8. Initiative: Encourage employees to show initiative.
9. Remuneration: Pay employees fairly for the work they do.
10. Stability: Ensure that employees feel secure in their
positions.
11. Scalar chain: Establish a clear hierarchy of command.
12. Subordination of individual interest: Prioritize group needs.
13. Esprit de corps: Inspire group unity and pride.
14. A balance between centralization and delegation:
Concentrate ultimate authority but delegate individual
decisions.
Modern Management Principles
- Modern management theory adopts an approach to
management that balances scientific methodology with
humanistic psychology. It uses emerging technologies and
statistical analysis to make decisions, streamline operations
and quantify performance. At the same time, it values
individual job satisfaction and a healthy corporate culture.
Shortcomings of the modern management approach include:
• The prioritization of information that can be difficult,
expensive, and time-consuming to collect
• The gap between theoretical flexibility and practical agility
• The tendency of some strains to be descriptive rather than
prescriptive
Systems Management Theory
- Systems theory proposes that each business is like a single
living organism. Distinct elements play different roles but
ultimately work together to support the business’s health.
The role of management is to facilitate cooperation and
holistic process flows.
Contingency Management Theory
- Contingency management theory addresses the complexity
and variability of the modern work environment. Fred
Fiedler realized that no one set of characteristics – no single
approach – provided the best leadership in all situations.
Success instead depended on the leader’s suitability to the
situation in which they found themselves.
Topic 4: HUMAN RESOURCE PLANNING & MANAGEMENT (Joyce &
Mich)
HUMAN RESOURCES MANAGEMENT
- Human Resource Management is a branch of management
that ensures the effective use of manpower in an entity.
HRM includes several activities like acquiring, maintaining,
developing, and coordinating between employees and
motivating them to work at their best potential and deliver
results.
IMPORTANCE OF HUMAN RESOURCES MANAGEMENT
1. Meet organizational goal
2. Advocate for employees
3. Upskill employees
4. Meeting compliance regulations
5. Perform regular audits
PERSONNEL MANAGEMENT
- Personnel management is a branch of management that is
concerned with employees and their relationship with the
entity. It includes workforce-related activities such as
staffing, payroll, contract management, and administrative
decisions. It includes all the tasks that are required to run an
organization smoothly.
PRIMARY FUNCTIONS OF PERSONNEL MANAGEMENT
OPERATIVE FUNCTIONS - It involves activities like training and
development, compensation, evaluation, welfare programmes, talent
management and more.
MANAGERIAL FUNCTIONS - It involves planning, organizing, directing,
motivating, coordinating and controlling.
IMPORTANCE OF PERSONNEL MANAGEMENT
1. Motivate employees
2. Manage people
3. Keep them up-to-date
4. Competent workforce
5. Human relations
DIFFERENCE BETWEEN PERSONNEL MANAGEMENT AND HUMAN
RESOURCE MANAGEMENT
- The main difference between Personnel Management
and Human Resource Management lies in their scope and
orientation. While the scope of personnel management is
limited and has an inverted approach, wherein workers are
viewed as tool. Here the behavior of the worker can be
manipulated as per the core competencies of the
organization and are replaced when they are worn-out.
- On the other hand, human resource management has a
wider scope and considers employees as the asset to the
organization. It promotes mutuality in terms of goals,
responsibility, reward etc. that will help in enhancing the
economic performance and high level of human resource
development.
HUMAN RESOURCES PLANNING
- Human resource planning is the process by which members
of the hr department identify current and future hiring or
training needs. The purpose of human resource planning is
to make sure that a business has the right type of talent
spread throughout its departments.
WHY IS HR PLANNING IMPORTANT?
1. Increases the value of current employees
2. Helps companies adapt to industry changes
3. Enables companies to maintain a competitive advantage
4. Promotes the growth and longevity of the company
HOW TO DEVELOP A HUMAN RESOURCES PLAN?
1. Assess the organizational objectives
2. Evaluate the current HR capacity
3. Forecast future workforce requirements
4. Conduct a gap analysis
5. Develop a plan that supports the organization’s strategies
6. Implement and integrate the plan
HUMAN RESOURCES MANAGEMENT SYSTEMS
WHAT IS HRMS?
- An HRMS, or human resources management system, is a
software application used to store employee information
and support various human resource functions, such as
benefits, payroll, recruiting, training, etc. This term is often
used interchangeably with human resource information
system (HRIS).
WHY IS HRMS NEEDED?
- HRMS is an integral part of running an organized, efficient
human resources department, and overall business.
- HRMS allows businesses to automate many processes and
reduce errors, giving them a leg up against the competition
and allowing them more time to perform necessary tasks.
HOW DOES AN HRMS WORK?
- HRMS assists an organization’s human resources
department by automating manual tasks, keeping employee
information organized, and creating data-driven reports.
This is all done electronically, eliminating the need for paper
documents.
TRAINING AND DEVELOPMENT PROGRAMS Performance Management - evaluates employees as a whole

WHAT IS TRAINING AND DEVELOPMENT?
- Training and development programs help employees learn
and acquire new skills, as well as gain the professional
knowledge required to progress their careers.
TYPES OF TRAINING AND DEVELOPMENT
Employee Training and Development - a strategic tool for improving
business outcomes by implementing internal educational programs
that advance employee growth and retention.
Performance appraisal - focuses on individual job performance
PERFORMANCE APPRAISAL
- Operational system that rates or ranks employees according
to job performance, attendance or behavior
- Top-down assessment given by immediate management or
supervisors to address issues and set performance targets
- Annually or biannually and a rigid rating system analyzes an
employee's past performance

Management Training and Development - the practice of growing OBJECTIVES:

employees into managers and managers into effective leaders by the • Apply a measurement system
ongoing enhancement of certain knowledge, skills and abilities. • Analyze performance
• Provide regular feedback
Why is training and development important?
• Set goals and targets
1. Increased productivity
2. Reduced micromanagement PERFORMANCE MANAGEMENT
3. Train future leaders - Ongoing, strategic process that considers the performance
4. Increased job satisfaction and retention of all human resources and comprehensive, forward-looking
5. Attract highly skilled employees and flexible tool
6. Increased consistency - Concerns the present and future performance of the
7. Increased camaraderie company
8. Bolstered safety - Covers a specific period of time and involves management,
9. Ability to cross-train supervisors or other stakeholders
10. Added innovation
OBJECTIVES:
MOTIVATION • Increase productivity
- One of the important factors affecting human behavior & • Improve job satisfaction
performance • Reduce absenteeism
- Involves the needs wants, demands wishes of employees • Reduce job turnover
MOTIVE - “A motive is an inner state that energizes, activates & that
directs the behavior towards goals”. “The motive is a restlessness a DIFFERENCE BETWEEN PERFORMANCE MANAGEMENT AND
lack, a force which determines one’s behavior” PERFORMANCE APPRAISAL
PERFORMANCE MANAGEMENT
MOTIVATING - a term that involves understanding the motive of one • present and the future
person & satisfying these motives • proactive
- important task PERFORMANCE APPRAISAL
- activation of need & providing satisfactory environment
• past
MOTIVATION - work itself • reactive
- It is the complex process of starting & keeping a person at
work in an organization. SIMILARITIES BETWEEN PERFORMANCE MANAGEMENT AND
- Engagement in work behavior PERFORMANCE APPRAISAL
• Create targets
IMPORTANCE OF MOTIVATION • Identify obstacles
- One of the most important concepts • Measure success
- The desire or drive that an individual has to get the work • Make a difference in daily employee performance
done
- It is common to hear the refrain that a particular employee PROMOTION, TRANSFER, DEMOTION AND DISMISSAL
is not motivated and hence his or her performance has
taken a backseat. PROMOTION
- The absence of motivation leads to underperformance and 1. Transfer of an employee from a present job to another job
loss of competitiveness resulting in loss of productive substantial increase in pay, status and responsibility within
resources for the organization the same organization
2. Promotion may be based on
PERFORMANCE MANAGEMENT & APPRAISAL (i) Seniority (ii) Merit
- The concepts of performance management and 3. Conditions of promotion
performance appraisal are used interchangeably • reassignment of higher-level job to an employee
- They work together to manage and improve a company's than what he is presently performing
human resources • accompanies higher pay.
TRANSFER
- The movement of a worker from one job to another job
which does not involve substantial change of pay, status or
responsibility within an organization which may or may not
involve change of place.
- A lateral shift causing movement of an employee from one
job to another usually without involving any marked change
in duties, responsibilities or compensation
DEMOTION
- Transfer of a person from his present job to another job
which involves substantial reduction in status, responsibility
and pay
- The reassignment of a lower-level job to an employee with
the delegation of responsibilities and authority required to
perform that lower job and normally with lower-level pay
DISMISSAL
1. Discharge or dismissal involves separation of an employee
from the pay roll of the organization.
2. The act of removing or terminating the job or employment
of an employee
3. Reasons for discharge
a. Unsatisfactory performance
b. Grave misconduct
IMPORTANCE OF DISMISSAL
- An important part of human resources management
- Dismissal of wrong or bad employees is essential to
maintain a good, safe, trustworthy and positive
environment at workplace
TRADE UNIONS
1. Group of employees who join together to maintain and
improve their conditions of employment.
2. Activities of trade unions
• providing assistance and services to their
members
• collectively bargaining for better pay and
conditions for all workers
• working to improve the quality of public services
• political campaigning and industrial action
WHAT TRADE UNIONS DO
- Unions train and organize workplace representatives who
help union members with the problems they face at work.
HOW TRADE UNIONS WORK
- Most unions are structured as a network of local branches
with reps in every workplace
ARE TRADE UNIONS LEGAL
- In the UK trade union have a special status in law which
gives them special rights that professional associations
don’t have
WHY JOIN A TRADE UNION
- Members benefit from the strength and security that comes
from working together to tackle problems
Topic 5: MAINTENANCE PLANNING AND MANAGEMENT (ton & tin)
Maintenance
- Maintenance is usually viewed only as a repair function. It
is, however, "a combination of any actions carried out to
retain an item in, or restore it to, an acceptance condition".
In fact maintenance keeps or ensures that the entire
production system is kept reliable, productive and efficient.
TYPES OF MAINTENANCE
1. PLANNED MAINTENACE
- Planned maintenance is a proactive approach to
maintenance in which maintenance work is scheduled to
take place on a regular basis.
2. PREVENTIVE MAINTENANCE
- Also termed `Diagnostic or Predictive Maintenance' is
maintenance carried out at pre-determined intervals, or to
other prescribed criteria and is intended to reduce the
likelihood of an equipment' s condition falling below a
required level of acceptability.
3. DESIGN-OUT MAINTENANCE
- Design-out is used to engineer high reliability parts into
machines, plant and equipment because the risks
associated with the failure are too expensive to accept.
4. CONDITION-BASED MAINTENANCE
- Condition-based maintenance (CBM) is a maintenance
strategy that monitors the actual condition of an asset to
decide what maintenance needs to be done.
5. CORRECTIVE MAINTENANCE
- Maintenance carried out to restore an item which has
ceased to meet an acceptable condition. It involves minor
repairs, that may crop up between inspections.
6. TIME-BASED PREVENTIVE MAINTENANCE
- Time-based maintenance (TbM), also called periodic
maintenance, refers to routine maintenance tasks
performed on an asset at fixed time intervals, regardless of
its condition.
Failure Analysis
- Failure analysis plays a vital role in taking decisions
pertaining to maintenance planning and control for
effective management subject to the budgetary
constraining for such an activity.
Maintenance Planning and Control
- Maintenance Planning and Control has a great importance
in the management of the company, as it focused on having
control of all maintenance that needs to be done.
Preparation
• Maintenance Request
• Inspection Report
• History Record
• Work Priority
Operation
• Routine Analysis-Labour and Cost
• Work Measurement, Manning and Workloading
Work Measurement Techniques
• TIME STUDY
• WORK SAMPLING
 • ANALYTICAL ESTIMATING • Smooth flow of materials in and out of the organization
• SYNTHETIC DATA
• PREDETERMINED MOTION TIME STUDY (PMTS) FUNCTIONS OF MATERIALS MANAGEMENT
• Purchasing
Progression • Stores Management
- Progression is about the employee advancement, by having • Material Planning and Control
more responsibilities, greater skills and having better job • Inventory Control or Management
status along with the management support and guidance to
make the process as effective and successful as possible. OTHER RELATED FUNCTIONS
• Standardization
Simulation • Simplification
- A simulation imitates the operation of real-world processes • Value Analysis & Ergonomics
or systems with the use of models. The model represents • Specifications
the key behaviors and characteristics of the selected process • Just-in-Time
or system while the simulation represents how the model
evolves under different conditions over time. MATERIALS REQUIREMENTS PLANINNGA computerized system
• MRP helps to understand about order time, the delivery
System Approach to Maintenance
time of all the materials necessary for smooth production
- Concerned with the collection of data about the status of
function.
work execution, system availability, work backlog, quality of • The logic of MRP is based on the principle of dependent
work performed. demand.
• Maintenance Control System • MRP determines quantity and timing for material planning.
• Codification and Cataloguing
• Instruction Manual and Operating Manual MRP Objectives
• Standard Operating Practices and Work • Reduction in Inventory Cost
Instruction • Meeting Delivery Schedule
• Maintenance Manual and Department Manual • Improved Performance
FUNCTIONS OF MATERIAL REQUIREMENTS PLANNING
Maintenance Costing and Budgeting
• To ensure that material and components are available for
- Costing and budgeting for the maintenance department
production
embraces the provision of financial information on labor
• To ensure that final products are ready for dispatch.
and materials expenditure, its allocation to the various cost
• To maintain minimum inventory.
centers together with manpower resources and the
• To ensure the right quantity of material is available at the
development of objectives with programmes and budgets
right time to produce the right quantity
for meeting them. The basis for cost control is provided by
• To ensure the planning of all manufacturing processes.
the use of cost account codes.
• To reduce investment in work in process inventories.
COMPONENTS OF MRP SYSTEM
Topic 6: Materials Management (Labis/Villalobos)
Objective of Materials Management
Primary Objective
• Efficient materials planning
• Buying or Purchasing
• Procuring and receiving
• Storing and inventory control
• Supply and distribution of materials
• Quality assurance
• Good supplier and customer relationship
• Improved departmental efficiency
Inputs to MRP
Secondary Objective
1. Supplier lead time
• Efficient production scheduling 2. On hand inventory
• To take make or buy decisions 3. Current forecasting
• Prepare specifications and standization of materials 4. Work and machine center capacity
• To assist in product design and development
5. Order history and season
• Forecasting demand and quantity of materials
6. Price trends of the materials
requirements 7. Import policy of the government
• Quality control of materials purchased
• Material handling INPUT FILES OF MRP
• Developing skills of workers in materials management • Master Production Schedule (MPS)
• Use of value analysis and value engineering
• Bill of Materials (BOM) File
 • Inventory Status File
OUTPUT OF MRP
• Planned Orders Receipts
• Planned Order Release
• Order Rescheduling
Advantages of material resource planning
1. Minimum levels of inventories are possible.
2. As inventories are minimum, the costs related to them are
also less
3. Material tracking becomes easy
4. It is ensured that the economic order quantity is achieved
for all lot orders.
5. Material planning smoothens capacity utilization
6. MRP allocates the correct time to products as per the
demand forecast
7. Quicker response to the change in demand
8. Better machine utilization and no issues of shortages
9. Better inventory turnover
LIMITATIONS OF MRP
1. Material planning is highly dependent on the inputs it
receives from other systems or departments
2. The material planning system requires proper training for
end-users
3. The material resource planning system requires a
substantial investment of time and capital.
Integrated Approach to Materials Management
Materials Management as a function is responsible for the co-
ordination of planning, Sourcing, purchasing; Moving; Storing and
Controlling materials in an optimum manner so as to provide a pre-
decided service to the customer at a minimum cost.
Objectives of Integrated Material Management:
• Procuring better value
• Obtaining better yield
• Reducing investments in stock through Inventory control
and material flow.
Advantages of Integrated Material Management:
• Better Accountability
• Better Co-Ordination
• Improved Performance
• Adaptability to Computerisation
Value Analysis
Value analysis is a systematic review of the production, purchasing
and product design processes to reduce overall product costs. This can
be accomplished through a variety of activities, including the
following:
• Designing products to use lower-tolerance parts that are
less expensive
• Switching to lower-cost components
• Standardizing parts across product platforms in order to
achieve volume discounts
• Altering production processes to minimize the amount of
production cycle time, thereby reducing labor costs
• Introducing automation to strip labor costs out of the
production process
• Altering product packaging to lower its cost while still
protecting the product
Purchase Prize Analysis
Purchase price analysis enables you to negotiate future target prices
or purchase prices based on reliable cost details.
Purchase price analysis enables you to negotiate future target prices
or purchase prices based on reliable cost details.
The purchase price analysis enables you to not only determine a
reasonable purchase price and arguments for its implementation, it
also enables you to make constructive suggestions to reduce costs,
thus creating an objective and fact-based foundation for collaborative
cost reduction.
Material Handling
Material handling is the movement, protection, storage and control of
materials and products throughout manufacturing, warehousing,
distribution, consumption and disposal. As a process, material
handling incorporates a wide range of manual, semi-automated and
automated equipment and systems that support logistics and make
the supply chain work. Their application helps with:
• Forecasting
• Resource allocation
• Production planning
• Flow and process management
• Inventory management and control
• Customer delivery
• After-sales support and service
Inventory Control
Inventory control, also called stock control, is the process of managing
a company’s inventory levels, whether that be in their own warehouse
or spread over other locations. It comprises management of items
from the time you have them in stock to their final destination (ideally
to customers) or disposal (not ideal).
• Barcode scanner integration
• Complete inventory counts
• Keeping track of physical inventory with sales and purchase
orders
• Product details, locations, and histories
• Reports and adjustments
Inventory Control Models
• Economic Order Quantity (EOQ)
• Inventory Production Quantity
• ABC Analysis.
Economic Order Quantity (EQC)
The Economic Order Quantity inventory management method is one
of the oldest and most popular. EOQ lets you know the number of
inventory units you should order to reduce costs based on your
company holding costs, ordering costs, and rate of demand.
Inventory Production Quantity
Also known as Economic Production Quantity, or EPQ, this inventory
control model tells you the number of products your business should
order in a single batch, in hopes of reducing holding costs and setup
costs. It assumes that each order is delivered by your supplier in parts
to your business, rather than in one full product.
ABC Analysis
ABC analysis categorizes your inventory based on levels of
importance. By knowing which inventory is the most important, you
know where to focus your attention. To be most effective, ABC
Analysis is frequently used with other inventory management
strategies, such as the Just in Time method.
Inventory Control System
An inventory control system is a technology solution that manages
and tracks a company's goods through the supply chain. This
technology will integrate and manage purchasing, shipping, receiving,
warehousing, and returns into a single system.
Types of Inventory Control System
1. Perpetual Inventory System.
A perpetual inventory provides a highly detailed view of
inventory changes and an accurate accounting of inventory
levels without the need for manual inventory counts. It is
suitable for all sizes of businesses and is necessary for stores
with high sales volume or multiple locations.
2. Periodic Inventory System.
A periodic inventory system is kept up to date by a physical
count of goods on hand at specific intervals. With a periodic
inventory system, a business will not know how many
products it has until after the physical count is completed.
WASTE MANAGEMENT
Waste management is the activities and actions required to manage
waste from its inception to its disposal. This includes the collection,
transport, treatment and disposal of waste, together with monitoring
and regulation of the waste management process.
How to handle the waste?
Topic 7: Financial Management (Amable/Catugo)
Financial Management is a decision-making process concerned with
planning, acquiring and utilizing funds in a manner that achieves the
firm’s desired goals.
It is also described as the process for and the analysis of
making financial decisions in the business context.
Difference between Accounting and Finance Functions
Accounting discharges the function of systematic recording
of transactions relating to the firm’s activities in the books of accounts.
However, finance is a body of facts, principles and theories relating to
using and raising money of individuals, businesses and governments.
FUNCTIONS AND OBJECTIVES OF FINANCIAL MANAGEMENT
1. Primarily, financial management is meant to maximize the
current value per share of the existing stock or ownership in
a business firm.
2. Since financial management is designed for maximization of
the current value of the shares, then there is a need to learn
on how to identify investments, arrangements and
distribute satisfactory amounts of dividends in the profits
that favorably impact the value of the share (s).
3. The goal does not imply that the financial manager should
take illegal or unethical actions in the hope of increasing the
value of equity in the firm. The financial manager should
best serve the owners of the business by identifying goods
and services that add value to the firm because they are
desired and valued in the free market place.
Role and Scope of Financial Management
Traditionally, the role and scope of financial management is
concerned with acquisition, financing and management of assets of
business in order to maximize the wealth of the firm for its owner.
Also, it may involves governing of financial flows which enable a
business to survive and somehow obtain and retain healthy profits.
MECHANICS of ACCOUNTING
Accounting Mechanics is essential to every accountant
because it enables the collection and recording of accounting data as
preparation on making financial statement.
There are eight (8) steps in accounting cycles including
unadjusted trial balance, the worksheet, identifying transactions,
entering transactions in a journal, posting, modifying journal entries,
preparing financial statements, and closing the books
LEDGER
TRIAL BALANCE
• ASSETS
• LIABILITIES
• EQUITY
• DRAWINGS
• REVENUES
• EXPENSES
Standard Forms of FINANCIAL STATEMENT
FINANCIAL STATEMENT
Financial Statement provides crucial input for strategic
planning, as well as, information about the relative success of those
plans which can be used to corrective action and make new operating,
investing and financing decisions.
The standard forms include three important and
informative tools including statement of income, balance sheet and
statement of cash flows.
INCOME STATEMENT
An income statement displays the revenues, costs, and
profitability of a business over time. It is also sometimes referred to
as an earnings statement or a profit-and-loss (P&L) statement. It
displays your sales revenue for goods and services, expenses for
running your firm and generating money.
STATEMENT OF CHANGES IN EQUITY
The beginning and ending equity balances of a corporation
throughout the course of a reporting period are reconciled in the
statement of changes in equity.
BALANCE SHEET
A balance sheet is a financial statement that lists the assets
and liabilities of a corporation at a certain point in time. It is one of
the three fundamental financial statements that are used to evaluate
company's performance. It is also known as statement of financial
position.
STATEMENT OF CASH FLOWS
A financial document called the cash flow statement (CFS)
outlines the inflow and outflow of a company's cash and cash
equivalents (CCE). The CFS gauges how effectively a business manages
its cash position, or how successfully it generates cash to cover its debt
payments and finance its operating costs.
Topic 8: Total Quality Management (Molijon/Labto)
TOTAL QUALITY MANAGEMENT (TQM)
Total - Made up the whole
Quality - degree of excellence a product or service provides.
Management - act, art or manner of planning, controlling, directing.
Therefore, TQM is the art of managing the whole to achieve
excellence
WHAT IS TOTAL QUALITY MANAGEMENT (TQM)?
Total quality management (TQM) is the continual process of
detecting and reducing or eliminating errors in manufacturing,
streamlining supply chain management, improving the customer
experience, and ensuring that employees are up to speed with
training.
A core definition of total quality management (TQM)
describes a management approach to long-term success through
customer satisfaction. In a TQM effort, all members of an organization
participate in improving processes, products, services, and the culture
in which they work.
TWO MAIN OBJECTIVES OF TQM:
(1) Total Client Satisfaction - through quality products and services;
and
(2) Continuous Improvements - to processes, systems, people,
suppliers, partners, products, and services.
IMPLICATIONS FOR MANAGEMENT
TQM can have an important and beneficial effect on
employee and organizational development. By having all employees
focus on quality management and continuous improvement,
companies can establish and uphold cultural values that create long-
term success to both customers and the organization itself.
QUALITY COSTS
Cost of quality (COQ) is defined as a methodology that
allows an organization to determine the extent to which its resources
are used for activities that prevent poor quality, that appraise the
quality of the organization’s products or services, and that result from
internal and external failures.
TYPES OF QUALITY COSTS
The cost of quality is generally classified into four categories
1. Cost of Prevention
2. Cost of Appraisal
3. Cost of Internal Failure
4. Cost of External Failure
Cost of Prevention - Prevention costs include those activities which
remove and prevent defects from occurring in the production process.
Included are such activities as quality planning, production reviews,
training, and engineering analysis, which are incurred to ensure that
poor quality is not produced.
Appraisal - are associated with measuring and monitoring activities
related to quality. These costs are associated with the suppliers’ and
customers’ evaluation of purchased materials, processes, products,
and services to ensure that they conform to specifications. Internal
Failure - Those incurred during the production process. Include such
items as machine downtime, poor quality materials, scrap, and
rework.
External Failure - Those incurred after the product is shipped. External
failure costs include returns and allowances, warranty costs, and
hidden costs of customer dissatisfaction and lost market share.
QUALITY MANAGEMENT TOOLS
Quality management tools help organization collect and
analyze data for employees to easily understand and interpret
information. Quality management models require extensive planning
and collecting relevant information about end-users.
Check Lists
Check list helps employees to identify problems which
prevent an organization to deliver quality products which would meet
and exceed customer expectations.
Pareto Chart
Pareto chart helps employees to identify the problems,
prioritize them and also determine their frequency in the system.
Cause and Effect Diagram
The cause-and-effect diagram plays a crucial role in
identifying the root cause of a particular problem and also potential
factors which give rise to a common problem at the workplace. Also
referred to as “Fishbone Chart”.
Histogram
Histogram helps identify the cause of problems in the
system by the shape as well as width of the distribution.
Scatter Diagram
Scatter Diagram is a quality management tool which helps
to analyze relationship between two variables.
Graphs
Graphs help to identify whether processes and systems are
as per the expected level or not and if not also record the level of
deviation from the standard specifications.
QUALITY AND RELIABILITY
Reliability is defined as the probability that a product,
system, or service will perform its intended function adequately for a
specified period of time, or will operate in a defined environment
without failure.
STATED ANOTHER WAY, RELIABILITY CAN BE SEEN AS:
• Probability of success
• Durability
• Dependability
• Quality over time
• Availability to perform a function
QUALITY CONTROL AND QUALITY ASSURANCE
Quality assurance (QA) and Quality control (QC) are two
terms that are often used interchangeably. Although similar, there are
distinct differences between the two concepts.
Quality Assurance
Quality Assurance can be defined as “part of quality
management focused on providing confidence that quality
requirements will be fulfilled.”
Quality Control
Quality control can be defined as “part of quality management
focused on fulfilling quality requirements.”
Differences Between QA and QC
Quality Assurance
• Focus on the prevention of defects
• Proactive process
• Process-based approach
• Manages quality
Quality Control
• Focus on the identification of defects
• Reactive process
• Product-based approach
• Verify the quality
Conclusion
Remember the earth revolves around the CUSTOMER.
Quality begets customers and customers beget quality. Let us all have
action plans to support quality, this will make the world happy and
earn us the blessing of God Almighty.
“Actions are direct reflection of one’s intentions” (Al-Quran)