Engineering Management Final Notes

COURSE
Programme :
◦ Electrical and Electronics Engineering,
◦ Electronics and Telecommunications Engineering,
◦ Electronics and Computer Engineering
Module Title : Engineering Management

Module Code : BUS- ENM 311
level : 3
Credits : 10
COURSE CONTENT
1. Nature of Management
2. Organisation, Jobs and Roles
3. Leadership and Motivation Theories
4. Human Resource Management
5. Economics
Module Aim
1. To Introduce Business Management, culture of
entrepreneurship and the process of converting
dreams into business ventures
2. Give key aspects of financial management in
business
Learning Outcomes:
By the end of the module, students should be able to:
Demonstrate an understanding of the basic concepts and
techniques in engineering economics
Describe concepts of Management and elements of
planning, organisation, directing and controlling
Demonstrate an understanding of the complex nature of
management tasks
Identify different types of decisions made by managers
Interpret financial statements
Explain the nature and characteristic of an entrepreneur and
entrepreneurship
Explain the importance of innovation and creativity in
entrepreneurship
Produce a viable business plan
Demonstrate and understanding of business dynamics,
marketing and sales principles and strategies
Prescribed Texts
Riggs, Engineering Economics (2nd Edition), McGraw-Hill,

2001
Morse B, Daniel L and Lucy C (2009), Managing

Engineering and Technology 5th Edition, Prentice Hall.
NATURE OF MANAGEMENT
Introduction
In the study of Engineering Management, we define Engineering management and explain
why we need it and what future is there for it.
Engineering Management is concerned with all aspects of management and business
management for engineers in the engineering world and the global.
It covers activities such as

Element of Management Planning, organizing, Staffing,
coordinating, leading, controlling,
decision Making etc.
Effective management, Management by objective (MBO),

Time management, management
of technology and innovation,
team development etc.
Leadership Role of Supervisor, leadership

style, delegation etc.
WHAT IS ENGINEERING MANAGEMENT
Engineering management is the application of the practice
of management to the practice of engineering.
Engineering management is a career that brings together the
technological problem-solving ability of engineering and the
organizational, administrative, legal and planning abilities
of management in order to oversee the operational performance of
complex engineering driven enterprises
CAREER IN ENGINEERING MANGMENT

A Master of Engineering Management (MEM) is sometimes compared to
a Master of Business Administration (MBA) for professionals seeking a
graduate degree as a qualifying credential for a career in engineering
management
An Engineering Manager’s duties might include:
 Overseeing the team members and processes associated with

engineering and construction projects
 Providing management and leadership to a team of analysts or industrial
engineers
 Helping a company or organization identify costs and budget needs for
specific projects in their planning stage
 Delegating tasks and inspecting processes and project results for
accuracy and quality
What Jobs can you get with an Engineering
Management Degree?
:
Engineering managers typically require training and experience in both
general management and the specific engineering disciplines that will be
used by the engineering team to be managed.
Engineering managers provide leadership in a variety of project-related

fields, including
 construction,
 chemical engineering,
 computer engineering,
 supply chain engineering,
 aerospace engineering and electrical engineering.
What Jobs can you get with an Engineering
Management Degree?
Group work:
Divide into 3 group of 5 – 15 people per group
Group work should be not more than Three pages and submitted
in Monday by 6:00pm- Good Luck on you first assignment.
Group 1 Group 2 Group 3
◦ Elements of ◦ Effective ◦ Leadership?
Management? Management? Emphasis on
Emphasis on what Emphasis on what is leadership style
is Management effective management and Roles of
and what are the and how to be an supervisors
element of effective management
Management and using management
what use are they tools like
for. management of
technology and
innovation, MBO,
Team development
WHAT IS MANAGEMENT ?
The word management refers to all the tasks and activities undertaken by
the people in an organization for the successful achievement of goals and
targets.
It involves continuous activities such as planning, organizing, leading and

monitoring physical, financial and information resources.
Any organization’s success depends on the strength of those in

management positions.
Management is a complicated subject and it’s often viewed as a discipline or a

process to enhance organizational success.
WHAT IS MANAGEMENT ?
Management defined as:
Management is a process consisting of planning, organizing, motivating and
controlling, performed to determine and accomplish the objectives by use of people
and resources.
It is the art and science of managing resources of the business, it involves
planning, decision making, organizing, leading, motivation and controlling the
human, financial, physical and information resources of an organization to reach its
goals efficiently and effectively.
"Management is the process of working with and through others to
effectively achieve the organizational objectives by efficiently using
limited resources in the changing environment."
CONTEXTS OF MANAGEMENT
The term management is flexible and has been used in various ways.
It refers to organizational activities, it also denotes a body of knowledge or discipline.
Some describe it as a means of leadership while others view it as an economic

resource.
To understand the meaning and nature of management, look at the concept from a
broader perspective.
The 3 Contexts of Management
1.MANAGEMENT AS A PROCESS
As a process, management aims at increasing productivity and efficiency in an
organization.
The purpose is to strengthen the client base, improve the knowledge, skills and
capacity of employees to achieve particular targets and goals.
Management is seen as a never-ending process that brings different teams and

individuals together.
Work is managed so that everyone works in harmony to achieve common

objectives.
2. MANAGEMENT AS AN ACTIVITY
As an activity, management looks at the daily tasks and accomplishments of an
employee.
Works to helps employees to prioritize activities and monitor progress, which

further helps them grow in their roles.
This looks at preventing miscommunication and task repetition as everyone is

aware of their roles and responsibilities.
There is clarity and accountability—the cornerstones of business growth and

success.
3. MANAGEMENT AS A PROFESSION
Management as a profession has been popularized by courses and academic
institutions across the globe.
Several organizations prefer individuals with a Master of Business Administration

(MBA) degree.
Looking at specialized knowledge (such as an MBA degree) provides an

individual with a competitive edge, making them more desirable for managerial
roles.
Therefore, management has evolved as a body of knowledge that continues to

solve various workplace problems.
WHAT IS THE NATURE AND SCOPE OF
MANAGEMENT?
 NATURE OF MANAGEMENT
Here are the salient features that highlight the nature of management in businesses.
1. UNIVERSALITY
Management is a universal process and is essential for all organizations. If there is
human activity, there is management. The principles of management are applicable
irrespective of the size and location of a business. The universal principle also means
that managerial skills can be developed over time and they’re transferrable.
2. SOCIAL PROCESS
The nature of management involves organizing people in groups and managing them.
It requires different levels of empathy, understanding and dynamism. Looking at the
social and emotional well – being.
In addition to taking care of social and emotional well-being, the process involves
developing, motivating and retaining employees.
MANAGEMENT?
3. PURPOSEFUL
Management always has an end goal of achieving an organization’s targets, mission
and vision. The success of management can be measured by the extent to which an
organization achieves its objectives. The objectives should be realistic, attainable and
time-bound.
4. INTANGIBLE
There is no physical proof of the management process. It’s not a thing or object which
you can touch but you can feel its presence through the results of its efforts as
adequate, orderly work output and employee satisfaction.
5. COORDINATION
Management coordinates all the functions of an organization by bringing together
different teams and departments. Without coordination, there would be ambiguity and
chaos. Therefore, by getting people on the same page, there is communication and
minimized duplication of efforts.
MANAGEMENT?
6. CREATIVITY
Management is made up of individual components and is a composite process. Every
independent component contributes in unique ways.
The sum of individual efforts creates synergy and something new is born.
7. DYNAMIC FUNCTION
◦ Management should be dynamic at its core because businesses are often influenced by
economic, social, political and technological factors.
◦ Management is dynamic as it must remain equipped to face various changes in the

corporate environment caused by social, economic, technological, political, or human
factors.
◦ It inspires and thrives on dynamic action.

MANAGEMENT?
 SCOPE
Here are the various aspects of this.
1. FINANCIAL MANAGEMENT
Every enterprise prioritizes financial management because finances can get extremely
tricky if not managed properly. Effective financial management ensures there are fair
returns to stakeholders, proper estimation of capital requirements and laying down
optimal capital. It includes preparation and examination of financial statements, creating
proper dividend policies and negotiations with external stakeholders.
2. MARKETING MANAGEMENT
The scope of management in marketing extends to planning, organizing, directing and
controlling activities in the marketing department. Identifying customer requirements is
crucial for providing business solutions. Marketing management ensures that available
resources are properly utilized and the best possible outcomes are achieved.
MANAGEMENT?
3. PERSONNEL MANAGEMENT
Personnel management—as the name suggests—deals with personnel or individuals in a
business environment. It includes the recruitment, transfer, termination, welfare and
social security of employees. This aspect of management is extremely important as
employees form teams and teams drive an organization’s goals. Individual productivity
also contributes to overall efficiency. Without attending to employee needs and wants, an
organization is likely to struggle.
4. PRODUCTION MANAGEMENT
This type of management refers to the process of creating utilities. When you convert
raw materials to finished products and oversee the planning and regulation, you’re
engaging in production management. Without production, there isn’t any finished good
or service and without it, organizations can’t generate interest or profits. The final
product must fulfill customer requirements. The process includes quality control,
research and development, plan layout and simplification.
MANAGEMENT?
5. OFFICE MANAGEMENT
This includes controlling and coordinating all office activities to achieve an
organization’s goals and targets.
The more organized the departments and responsibilities are, the more effective an
organization is.
ELEMENTS OF MANAGEMENT
1. PLANNING-
Setting objectives and targets and formulating an action plan of what is to be done,
how to be done and when to do it.
the first and foremost function of the management process. It is the thinking process to
determine the proposed course of action, what, how, when, where and who has to
perform the work or things to be done
2. ORGANISING-
Assignment of duties, tasks, establishment of authority and responsibility relationships,
allocating the resources required to perform the planned task. The trick is to assign
tasks to the right personnel including delegating the authority to carry out activities in a
coordinated and integrated manner.
3. STAFFING-
Finding and placing the right person at the right job at the right time. To get workforce
that suits the company. This requires deep understanding that apart from the technical
competence, operation competence, psychological and sociological structures are also
important.
ELEMENTS OF MANAGEMENT
4. DIRECTING-
Leading, influencing, motivating the staff chosen to perform the assigned task
efficiently and effectively.
It is primarily concerned with supervision, regulation, inspiration, inspection and
guidance of the activities of the employees in such a manner to achieve the
predetermined goals of the organization smoothly
5. CONTROLLING-
Ensuring/Monitoring the activities in an organization are performed as per the plan. the
process of regulating company’s activities so that actual performance conforms to the
goals and standards set at the planning stage.
Use/Function of the Elements of Management
1. Helps to achieve goals and objectives
Planning beforehand is good management.
Proper planning ensures that the organization follows a mapped course towards its
vision and mission.
2. Provides a sense of focus and direction
When an organization plans its activities, it is able to stay focus and in the right
direction required.
3. For optimum utilization of resources
It helps the management to save money and other resources while minimizing losses.
These resources include both human, Financial, material and technology.
4. To maintain responsibility and order
With good management everyone knows what they ought to do, they will be more
responsible for it. It is also easy to hold people accountable when they know what each
of them does.
5. To get the most qualified personnel for the job
Staffing as a function of management helps to discover skilled people to fill various
positions in the organization.
EFFECTIVE MANAGEMENT
It is best to understand what makes an effective Manager, before understanding

the concept of effective management,
“Effective managers are those who achieve set targets before the deadline and
make use of resources in the best possible manner”.
Responsibilities of Effect Managers
Effective managers are responsible for performing certain key functions, such as:
 Setting targets and deadlines for their employees;
 Making financial forecasts;
 Organizing work in an efficient manner;
 Coordinating and making use of organisational resources sensibly;
 Controlling organisational activities and helping improve the efficiency of
employees.
Responsibilities of Effect Managers
An effective manager should possess certain skills, such as:
 Time management skills;
 Leadership skills;
 Conflict management skills:
 People management skills:
 Self-management skills:
DEFINITION OF EFFECTIVE MANAGEMENT
“Therefore, Effective management refers to the extent to

which managers achieve their targets with the assistance
of organisational resources.”
Effective management does not only involve driving employees to perform better, it
also involves treating them with respect and ensuring they are happy. In reality,
there is no such thing as the ‘right’ management style as it all depends on different
people’s perspective.
Effective Management
An effective managerial approach helps in:
 Achieving the objectives and vision set by the organisation;
 Encouraging employees to be creative;
 Improving accountability of the employees with regards to their roles and
responsibilities;
 Providing opportunities for employees to learn and develop new skills.
Efficiency and Effectiveness in Management
Efficiency (Means) Effectiveness (Ends)
Resource Goal
Usage Attainment
Low Waste High Attainment
Management Strives For:

Low resource waste (high efficiency)
High goal attainment (high effectiveness)
ORGANIZATION
What Is An Organization?
Organization
Is a deliberate arrangement of people to accomplish some specific
purpose
◦ elements of definition
each organization has a distinct purpose
each organization is composed of people
all organizations develop some deliberate structure
today’s organizations have adopted:
◦ flexible work arrangements
◦ open communications
◦ greater responsiveness to changes
The Organization As An Open System
Environment
System
Inputs Transformation Outputs

Raw materials Employee’s work Products and services
Human resources activities Financial results
Capital Management Information
Technology activities Human results
Information Technology and
operations methods
Feedback
Environment
THE CHANGING ORGANIZATION
Introduction to Organisation Structure
Organizational structures have evolved since the 1800s.
In the Industrial Revolution, individuals were organized to add parts to the

manufacture of the product moving down the assembly line.
Frederick Taylor's scientific management theory optimized the way tasks
were performed, so workers performed only one task in the most efficient
way.
In the 20th century, General Motors pioneered a revolutionary

organizational design in which each major division made its own cars.
Today, organizational structures are changing swiftly—from virtual

organizations to other flexible structures.
As companies continue to evolve and increase their global presence, future
organizations may embody a fluid, free-forming organization, member
ownership and an entrepreneurial approach among all members.
What Is an Organizational Structure?
An organizational structure is a system that outlines how certain activities are
directed in order to achieve the goals of an organization.
Organizational structure is the method by which workflows through an

organization.
Organization Structure is the formal framework by which job

tasks are divided, grouped, and coordinated.
◦ It is visually shown in an organisational chart
What does Organizational Structure do
 It allows groups to work together within their individual functions to manage
tasks.
 Organizational structure aligns and relates parts of an organization, so it can

achieve its maximum performance.
 The organizational structure also determines how information flows between

levels within the company.
 Having an organizational structure in place allows companies to remain

efficient and focused.
Key Elements of Organizational Structures
Five elements create an organizational structure:
1. Functional - Job design,/ Work Specialization

2. Divisional - Departmentation,
3. Delegation, (Centralization or Decentralization)
4. Span of control and
5. Chain of command.
6. Formalization
These elements comprise an organizational chart and create the

organizational structure itself.
- Departmentation refers to the way an organization structures its
jobs to coordinate work.
- Span of control means the number of individuals who report to a
manager.
- Chain of command refers to a line of authority.
.
Types of Organizational Structures
Organizational structures have evolved from rigid, vertically

integrated, hierarchical, autocratic structures to relatively
boundary-less, empowered, Networked organizations.
Designed to respond quickly to customer needs with customized

products and services.
Today, organizations are usually structured vertically, vertically
and horizontally, or with open boundaries.
VERTICAL STRUCTURES
Two main types of vertical structure exist,

1. Functional and
2. Divisional.
1. FUNCTIONAL - Work Specialization/division of labour
The functional structure divides work and employees by specialization.

• It is a hierarchical, usually vertically integrated structure.
• It emphasizes standardization in organization and processes for specialized
employees in relatively narrow jobs.
This traditional type of organization forms departments such as

production, sales, research and development, accounting, HR, and
marketing.
• Each department has a separate function and specializes in that area.
• The degree to which tasks in an organization are divided into separate jobs
• individuals specialize in doing part of an activity rather than the entire activity
Too much specialization has created human diseconomies
In functional structures, employees report directly to managers within their
functional areas who in turn report to a chief officer of the organization.
Management from above must centrally coordinate the specialized departments.
A functional organizational chart might look something like this:
Advantages of a functional structure include the following:
 The organization develops experts in its respective areas.
 Individuals perform only tasks in which they are most proficient.
 This form is logical and easy to understand.
Disadvantages center on coordination or lack thereof:

 People are in specialized "silos" and often fail to coordinate or
communicate with other departments.
 Cross-functional activity is more difficult to promote.
 The structure tends to be resistant to change.
2. Divisional - Departmentalization
A divisional structure most often divides work and employees
by output, although a divisional structure could be divided by
another variable such as market or region.
The basis by which these are grouped together includes :
◦ functional - groups jobs by functions performed
◦ product - groups jobs by product line
◦ geographical - groups jobs based on territory or geography
◦ process - groups jobs based on product or customer flow
◦ customer - groups jobs based on common customers
A divisional organizational structure might look like this:
Functional Departmentalization
Plant Manager
Manager, Manager, Manager, Manager, Manager,

Engineering Accounting Manufacturing Human Resources Purchasing
Product Departmentalization
Bombardier, Ltd.
Manager, Recreational and Utility Rail Products

Retail Accounts Vehicles Sector Sector
Mass Transit Recreational Products

Division Division
Bombardier-Rotax Logistic Equipment

(Vienna) Division
Industrial Equipment
Division
Bombadier-Rotax
(Gunskirchen)
© Prentice Hall, 2002
Geographical Departmentalization
Vice President
for Sales
Sales Director, Sales Director, Sales Director, Sales Director,

Western Region Southern Region Midwestern Region Eastern Region

Process Departmentalization
Plant Superintendent
Sawing Planing and Assembling Lacquering and

Department Milling Department Sanding
Manager Department Manager Department
Manager Manager
Finishing Inspection and

Department Shipping
Manager Department
Manager

Customer Departmentalization
Director
of Sales
Manager, Manager, Manager,

Retail Accounts Wholesale Accounts Government Accounts
© Prentice Hall, 2002 10-54

large organizations combine most or all forms of
departmentalization
trends
◦ customer departmentalization is increasingly being
used
- better able to monitor and respond to customer needs
cross-functional teams are becoming popular
- groups of individuals who are experts in various
specialties involved in all aspects of bringing a new
product to market
The advantages of this type of structure are the following:
 It provides more focus and flexibility on each division's core
competency.
 It allows the divisions to focus on producing specialized products
while also using knowledge gained from related divisions.
 It allows for more coordination than the functional structure.
 Decision-making authority pushed to lower levels of the organization
enables faster, customized decisions.
The disadvantages of this structure include the following:
 It can result in a loss of efficiency and a duplication of effort because
each division needs to acquire the same resources.
 Each division often has its own research and development,
marketing, and other units that could otherwise be helping each
other.
 Employees with similar technical career paths have less interaction.
 Divisions may be competing for the same customers.
 Each division often buys similar supplies in smaller quantities and
may pay more per item.
3. Chain of Command
Continuous line of authority that extends from upper organizational
levels to the lowest levels and clarifies who reports to whom
Authority - the rights inherent in a managerial position to tell
people what to do and to expect them to do it
- Line Authority and Staff Authority
Responsibility - the obligation to perform any assigned duties
Unity of command - a person should report to only one

manager
These concepts are less relevant today due to information

technology and employee empowerment
4. Span of Control
number of employees that a manager can efficiently and
effectively manage
determines the number of levels and managers in an organization
the wider the span, the more efficient the organization
appropriate span is influenced by:

the skills and abilities of employees
the complexity of tasks performed
availability of standardized procedures
sophistication of organization’s information system
Contrasting Spans Of Control
Members at Each Level
Organizational Level
1 1 1
2 4 8
3 16 64
4 64 512
5 256 4,096
6 1,024
7 4,096
Span of 4 Span of 8
Operatives = 4,096 Operatives = 4,096
Managers (levels 1-6) = 1,365 Managers (levels 1-4) = 585
5. Centralization
the degree to which decision making is concentrated at a
single point in the organization
top-level managers make decisions with little
input from subordinates in a centralized
organization
Decentralization
the degree to which decisions are made by lower-level
employees
◦ distinct trend toward decentralized decision making
Factors That Influence the Amount of
Centralization and Decentralization
Contingency factors influencing
organisational structure
1. Organisational Strategy
 structure should facilitate the achievement of goals
 strategy and structure should be closely linked
◦ strategy focuses on:

• innovation - need the flexibility and free flow of
information of the organic structure
• cost minimization - seek efficiency, stability, and tight
controls of mechanistic structure
2. Size of organisation
 size affects structure at a decreasing rate
 large organisations tend to be characterized with

more specialization, departmentalization,
centralization and rules & regulations
◦ 3. Technology
 converts inputs into outputs
• Organisations adapt their structure to their technology

depending on how their routine technology transforms input
to outputs
• mechanistic structure supports routine technology e.g.
banks, manufacturers
• organic structure supports non-routine technology
ORGANIZATIONAL DESIGN
Process of developing or changing an organization’s

structure
Organizational Design Decisions/Approaches
Mechanistic Organization/Bureaucracy
◦ rigidly and tightly controlled structure
◦ tries to minimize the impact of differing human traits
◦ most large organizations have some mechanistic
characteristics
Organic Organization
◦ highly adaptive and flexible structure
◦ permits organization to change when the need arises
◦ employees are highly trained and empowered to handle
diverse job activities
◦ minimal formal rules and little direct supervision
Mechanistic Versus Organic Organization
Organic
Mechanistic
• High Specialization • Cross-Hierarchical Teams

• Rigid Departmentalization • Free Flow of Information
• Clear Chain of Command • Wide Spans of Control
• Narrow Spans of Control • Decentralization
• Centralization • Low Formalization
• High Formalization
Organizational Design Decisions/Approaches
Traditional Organizational Designs
Functional Structure - groups similar or related occupational
specialties together
• i.e. functional departmentalization applied to the whole
organisation
Divisional Structure - composed of separate divisions e.g. Press
Corporation, Nico
each division has limited autonomy, with a division manager who
has authority over his or her unit and is responsible for
performance.
The parent corporation acts as an external overseer to coordinate
and control the divisions
◦ provides support services such as financial and legal
Strengths and Weakness of Common
Traditional Organizational Designs
Common Organizational Designs
Contemporary Organizational Designs
1. Team-Based Structures - entire organization is made up of work
teams
◦ employee empowerment is crucial
◦ teams responsible for all work activity and performance
◦ complements functional or divisional structures in large
organizations
◦ allows efficiency of a bureaucracy
◦ provides flexibility of teams
2. Matrix Structure - assigns specialists from different functional
departments to work on projects led by project managers
◦ adds vertical dimension to the traditional horizontal functional

departments
◦ creates a dual chain of command

◦ violates unity of command
◦ project managers have authority in areas relative to the project’s
goals
◦ functional managers retain authority over human resource decisions
(e.g., promotions)
A Matrix Organization in an Aerospace Firm
3. Project Structure - employees work continuously on
projects
◦ employees do not return to a functional department at the

conclusion of a project
◦ all work performed by teams comprised of employees with
appropriate skills and abilities
◦ tends to be very fluid and flexible
◦ no rigid departmentalization or organization hierarchy
◦ managers serve as facilitators and mentors
4. Autonomous Internal Units – independent, decentralized
business units
◦ each has its own products, clients, competitors, and profit goals
◦ business units are autonomous
◦ there is no centralized control or resource allocation
5. Boundaryless Organization - design is not defined by, or limited
to, the horizontal, vertical, or external boundaries imposed by a
predefined structure
◦ strategic alliances break down barriers between the company

and its customers and suppliers
◦ seeks to eliminate the chain of command, to have limitless
spans of control, and to replace departments with empowered
teams
◦ flattens the hierarchy by removing vertical boundaries
◦ horizontal boundaries removed by organizing work around
processes instead of functional departments
6. Learning Organization - an organizational mind-set rather than
a specific organizational design
◦ has developed the capacity to continuously adapt

◦ all members take an active role in identifying and resolving
work-related issues
◦ practice knowledge management by continually acquiring and
sharing new knowledge
◦ environment is conducive to open communication
◦ empowered teams are important
◦ leadership creates a shared vision for the future
◦ organizational culture provides sense of community
Characteristics of a Learning Organization
Organizational Design
• Boundaryless
• Teams
• Empowerment
Organizational Culture
• Strong Mutual The Information Sharing
Relationships • Open
• Sense of Community Learning • Timely
• Caring Organization • Accurate
• Trust
Leadership
• Shared Vision
• Collaboration
JOBS AND ROLES
We have discussed Management and looked at the

What is management,
the context of management,
Nature and Scope of Management,
Elements of Management and
Effective Management.
But the question is who does this management and what is their
jobs and roles.
JOBS AND ROLES
In an organisation there is always management and

management is done by the people called Managers.
Who Are Managers?
someone who works with and through other people by

coordinating their work activities in order to accomplish
organizational goals
Robins S.P. (2013, p.33):

“A manager is someone who coordinates and oversees the work of
other people, so that organizational goals can be accomplished.”
Changing nature of organizations and work has blurred the

clear lines of distinction between managers and non-
managerial employees
Who Are Managers? - Managerial Titles
First-line managers - manage the work of non-

managerial individuals who are directly involved with the
production or creation of the organization’s products or
service
Middle managers - are managers between the first-line

level and the top level of the organization
• manage the first-line managers
Top managers - responsible for making organization-wide

decisions and establishing the plans and goals that affect
the entire organization
Organizational Levels
Top
Managers
Middle
Managers
First-line
Managers
Non-managerial Employees
What Do Managers Do?
They are involved in the creation of an environment in which
people can most effectively use other resources to reach the
stated goals.
Managers responsibility involves their Function, Process

and roles in their duties
It comprises 4 basic functions: these are

- planning,
- organizing,
- leading and
- controlling.
Planning
◦ defining goals, establishing strategies for achieving
those goals, and developing plans to integrate and
coordinate activities
◦ Involves setting objectives, asses the future and defining the

courses of action.
◦ This function is done by all managers, regardless of their

level in the organization just as are the other functions to a
more or less extent.
Organizing
◦ determining what tasks are to be done, who is to do them,
how the tasks are to be grouped, who reports to whom, and
where decisions are made
◦ Involves setting up departments (or reworking existing ones)

and job descriptions.
◦ Organizational structure is key to its success or failure. (must

be well coordinated and preferably short to maintain
flexibility especially in todays fragile environments)
Leading
◦ directing and motivating all involved parties and dealing
with employee behavior issues
◦ Motivating people to accomplish tasks which will then lead to

accomplishment of goals. (the art of making things happen)
◦ It involves the use of leadership where attention is much

paid to the people in the organization.
◦ Getting everyone to be results oriented.

Controlling
omonitoring activities to ensure that they are going as planned
oThis is continuous analysis and measurement of actual operations

against the established standards developed during the planning
process.
Managerial Roles
specific categories of managerial behavior
◦ Interpersonal - involve people and duties that are ceremonial and
symbolic in nature
◦ Informational - receiving, collecting, and disseminating

information
◦ Builds network of contacts for performance of the above discussed
roles, thus being called the nerve centers of their organizations
due to the pool of contacts.
◦ Decisional - revolve around making choices

◦ These are perhaps the most important of the three. The information
collected is used for decision making.
◦ emphasis that managers give to the various roles seems to change
with their organizational level
Managerial Roles
Henry Mintzberg, (a noted Researcher) identified 10 roles of
managers. Which according to Hellgriel, D(1996, p.11) these roles
must be understood with the following points in mind:
i. Every manager combines these roles in some form.
ii. These roles influence the characteristics of managerial work
iii. The roles are highly interrelated.
iv. The relative importance of each role varies according to

managerial level
Classification of the Roles
INTERPERSONAL INFORMATIONAL DECISIONAL
ROLES ROLES ROLES
Figurehead Role Monitor Entrepreneur
Leader Disseminator Disturbance Handler
Liaison Spokesperson Resource Allocator
Negotiator
Managerial Roles
INTERPERSONAL ROLES
Figurehead Role  The manager represents the organization at a ceremonial/ symbolic
event, e.g. cutting a ribbon to open a college, or simply representing
the organization at a function.
 This is the simplest of the roles, but shows commitment to that
event.
Leader Responsibility of directing and controlling activities of subordinates to
achieve organizational goals. Includes aspects such as:
• Staffing,
• Hiring
• Promoting
• Firing
• Motivating
• Project Vision for the future.
Liaison  Managers dealing with people outside the organization, e.g.
government/ agencies, customers, suppliers
 The manager seeks support from people who can affect the success
of the organization
Managerial Roles
INFORMATIONAL ROLES
Monitor  Involves seeking, receiving and screening information. They can

scan their environment for information affecting the organization
(they have a big pool: gossip, hearsay, formal meetings) they thus
have to decide what to use.
Disseminator  Sharing information with subordinates and other members of the

organization.
 Knowing what to say and what not to say, and to whom is it going.
Spokesperson  Communicating information to outsiders, very important for the

image of the organization, especially in an age where journalists
and social media seek more information and can harm the
organization.
Managerial Roles
DECISIONAL ROLES
Entrepreneur  Designing and starting a new project/business

 Intrapreneurship, if it happens within the organization.
Disturbance Handler  the role of dealing with problems and changes within their
immediate control e.g. strikes, employee contract breaches etc.
 Managers must work out a solution before something becomes
a crisis.
Resource Allocator  Choosing among competing demands how much for advertising,
. or how much for expansion..
 The best is to put priorities right.
Negotiator  Meeting individuals and groups to discuss differences and reach
an agreement.
 One must have these skills and be tough especially when dealing
with those who do not share the goals of the organization as the
manager views them
 Sometimes work towards a win-win situation.
Managerial Skills
◦ Technical - knowledge of and proficiency in a certain
specialized field
◦ Human - ability to work well with other people both

individually and in a group
◦ Conceptual - ability to think and to conceptualize about

abstract and complex situations
◦ see the organization as a whole
◦ understand the relationships among subunits
◦ visualize how the organization fits into its broader
environment
SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS
Managing Systems
◦ System - a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole
◦ provides a more general and broader picture of what
managers do than the other perspectives provide
◦ Closed system - not influenced by and do not interact
with their environment
◦ Open system - dramatically interact with their
environment
◦ organizations - take in inputs from their environments
◦ transform or process inputs into outputs
◦ outputs are distributed into the environment
Managing Systems
managers must
◦ coordinate various work activities
◦ ensure that interdependent parts work together
◦ recognize and understand the impact of various
external factors
◦ decisions and actions taken in one organizational
area will affect other areas and vice versa

Managing in Different and Changing Situations
◦ require managers to use different approaches and

techniques
◦ Contingency perspective - different ways of managing are

required in different organizations and different
circumstances
- stresses that there are no simplistic or universal rules
POPULAR CONTINGENCY VARIABLES
LEADERSHIP AND MOTIVATION
LEADERSHIP DEFINED
Leader
 someone who can influence others and who has
managerial authority
• all managers should ideally be leaders

• not all leaders have the ability to be an effective
manager

LEADERSHIP DEFINED
 Leadership has to do more with people as they are
the ones by whom work is to be accomplished.
 Leadership is the process by which a person

influences, inspires, motivates and directs the efforts of
others to achieve organizational goals.
 A leader is a person exerting such influence.

LEADERSHIP THEORIES
Behavioral Theories:
◦ knowing what effective leaders do would provide the basis

for training leaders

LEADERSHIP THEORIES
◦ University of Iowa Studies - Kurt Lewin, explored three

leadership styles
autocratic - leader dictated work methods
democratic - involved employees in decision making

- used feedback to coach employees
laissez-faire - gave the group complete freedom

- results were mixed with respect to performance
satisfaction higher with democratic leader
LEADERSHIP THEORIES
◦ Ohio State Studies - identified two dimensions of

leadership
initiating structure - extent to which a leader was likely
to define and structure her/his role and the roles of group
members to seek goal attainment
consideration - extent to which a leader had job
relationships characterized by mutual trust and respect for
group members’ ideas and feelings
- findings - high-high leaders achieved high group task

performance and satisfaction
LEADERSHIP THEORIES
◦ University of Michigan Studies - identified two dimensions

of leadership
employee oriented - emphasized interpersonal
relationships
- accepts individual differences among subordinates
associated with high group productivity
production oriented - emphasized the technical or task
aspects of the job
- concerned with accomplishing the group’s tasks
associated with low group productivity and low job
satisfaction
LEADERSHIP THEORIES
Contingency Theories Of Leadership:
◦ leader effectiveness depends on the situation

◦ must isolate situational conditions or contingencies
LEADERSHIP THEORIES
Fiedler Model
◦ effective group performance depends on matching the
leader’s style and the degree to which the situation permits
the leader to control and influence
Least-Preferred Coworker (LPC) - measures the leader’s
style of interacting with subordinates
- high LPC - least preferred coworker described in
relatively favorable terms
◦ leader is relationship oriented
- low LPC - least preferred coworker described in relatively
unfavorable terms
◦ leader is task oriented
LEADERSHIP THEORIES
results indicated that:
◦ task-oriented leaders performed better in situations that
are very favorable to them
◦ relationship-oriented leaders performed better in situations
that are moderately favorable
implications for improving leadership
◦ place leaders in situations suited to their style
◦ change the situation to fit the leader
unrealistic to assume that leader cannot alter her/his style

LEADERSHIP THEORIES
Hersey and Blanchard’s Situational Leadership Theory
◦ appropriate leadership style is contingent on the followers’
readiness
readiness - extent to which people have the ability
and willingness to accomplish a specific task
- reflects the reality that it is followers who accept or reject the leader
◦ based on two leadership dimensions

• task behaviors
• relationship behaviors
LEADERSHIP THEORIES
Situational Leadership Theory (cont.)
◦ four leadership styles defined by the two dimensions
◦ Telling - leader defines roles and tells people how to do
their jobs
◦ people are neither competent nor confident
◦ Selling - leader is both directive and supportive
◦ people are unable but willing to do necessary tasks
◦ Participating - leader and follower make decisions
◦ people are able but unwilling to do the job
◦ Delegating - leader provides little direction or support
◦ people are able and willing to do the job
LEADERSHIP THEORIES
Cutting-Edge Approaches To Leadership:
Transformational-Transactional Leadership
◦ Robert House - leader’s job is to assist followers in attaining
their goals that are compatible with the overall objectives of
the group or organization
◦ leader behavior is:
acceptable to the degree that group views it as a source
of immediate or future satisfaction
motivational to the extent that it:
◦ makes satisfaction of subordinates’ needs contingent on
effective performance
◦ provides the coaching, guidance, support, and rewards
necessary for effective performance
LEADERSHIP THEORIES
Path-Goal Model (cont.)
◦ identifies four leadership behaviors
Directive - describes tasks, sets schedules, and offers
guidance on task performance
Supportive - shows concern for subordinates
Participative - relies on subordinates’ suggestions when
making a decision
Achievement oriented - sets challenging goals
- assumes that a leader can display any or all of the

behaviors depending on the situation
LEADERSHIP THEORIES
two classes of contingency variables
◦ environment - outside the control of the follower
◦ determine the type of leader behavior required if follower
outcomes are to be maximized
◦ personal - characteristics of the follower
◦ determine how the environment and leader behavior are
interpreted
leader behavior will be ineffective when:
◦ it is redundant with sources of environmental structure
◦ it is incongruent with follower characteristics
most evidence supports the logic underlying the model
Path-Goal Theory
Environmental
Contingency Factors
• Task Structure
• Formal Authority System
• Work Group
Leader
Behavior Outcomes
• Directive •Performance
• Supportive • Satisfaction
• Participative
• Achievement oriented Subordinate
Contingency Factors
• Locus of Control
• Experience
• Perceived Ability
CUTTING-EDGE APPROACHES TO
LEADERSHIP
Transformational-Transactional Leadership
transactional - leaders who guide or motivate their

followers in the direction of established goals by clarifying
role and task requirements
transformational - inspire followers to transcend their own
self-interests for the good of the organization
◦ capable of having profound effect on followers
◦ pay attention to concerns of followers
◦ change followers’ awareness of issues
◦ excite and inspire followers to put forth extra effort
◦ built on top of transactional leadership
◦ good evidence of superiority of this type of leadership
LEADERSHIP
Charismatic-Visionary Leadership
charismatic - enthusiastic, self-confident leader whose

personality and actions influence people
◦ can articulate a vision for which s/he is willing to take risks
◦ sensitive to environmental constraints and follower needs
◦ exhibit behaviors that are out of the ordinary
◦ charismatic leadership correlated with high job
performance and satisfaction among followers
◦ individuals can be trained to exhibit charismatic behaviors
LEADERSHIP
Charismatic-Visionary Leadership
visionary - ability to create and articulate a realistic,
credible, and attractive vision that improves the present
situation
◦ presents a clear and compelling imagery that inspires
enthusiasm to pursue the organization’s goals
◦ people must believe that the vision is attainable
◦ visionary leader has the ability to:

explain the vision to others
express the vision verbally and behaviorally
apply the vision to different leadership contexts
LEADERSHIP
Team Leadership
role of team leader different from the traditional leadership

role
requires skills such as:
◦ patience to share information
◦ ability to trust others and give up authority
◦ understanding when to intervene
team leader’s job focuses on:
◦ managing the team’s external boundary
◦ facilitating the team process
LEADERSHIP
Team Leadership
◦ team leaders serve as:

◦ liaisons with external constituencies - clarify others’
expectations of the team, gather information from the
outside, and secure needed resources
◦ troubleshooters - ask penetrating questions, help team
talk through problems, and gather needed resources
◦ conflict managers - identify source of conflict, who is
involved, and find resolution options
◦ coaches - clarify role expectations, teach, offer support,
and whatever else is necessary to keep performance
levels high
Specific Team Leadership Roles
Liaison with
Coach external
constituencies
Team
Leadership
Roles
Conflict
Troubleshooter
manager
Contemporary Issues In Leadership
Leaders and Power
five sources of power

◦ legitimate - authority associated with a position
◦ coercive - ability to punish or control
◦ followers react out of fear
◦ reward - ability to give positive benefits
◦ provide anything that another person values
◦ expert - influence based on special skills or knowledge
◦ referent - arises because of a person’s desirable
resources or personal traits
◦ leads to admiration and desire to be like that person
Creating a Culture of Trust
credibility - honesty, competence, and ability to inspire

◦ honesty is the number one characteristic of admired
leaders
trust - belief in the integrity, character, and ability of the
leader
◦ confident that rights and interests will not be abused
◦ important for empowering subordinates
◦ must trust employees to use their new authority
◦ trend toward expanding non-authority relationships within
and between organizations widens the need for trust
Building Trust
Practice
Be fair
openness
Demonstrate Speak your

competence feelings
Trust
Maintain Tell the

confidences truth
Fulfill your Show

promises consistency
Leading Through Empowerment
◦ managers increasingly leading by empowerment
◦ need for quick decisions by people who are most
knowledgeable about the issues
◦ larger spans of control resulting from downsizing meant
that subordinates had to be empowered to deal with work
load
Gender and Leadership
◦ gender provides behavioral tendencies in leadership
◦ women adopt more democratic style, share power and
information, and attempt to enhance followers’ self-worth
◦ men more directive, command-in-control style
Sometimes Leadership is Irrelevant!
leader behaviors may be irrelevant in some situations
factors that reduce leadership importance include:
◦ follower characteristics - experience, training,
professional orientation, or need for independence replace
the need for leader support and ability to reduce ambiguity
◦ job characteristics - unambiguous and routine tasks, or
tasks that are intrinsically satisfying, place fewer demands
on leaders
◦ organizational characteristics - explicit goals, rigid rules
and procedures, and cohesive work groups can substitute
for formal leadership
MOTIVATING
EMPLOYEES
MOTIVATION DEFINED
Motivation
The willingness to exert high levels of effort to reach organizational
goals, conditioned by the effort’s ability to satisfy some individual
need
EFFORT - a measure of intensity or drive
GOALS - effort should be directed toward, and consistent

with, organizational goals
NEEDS - motivation is a need-satisfying process

- an internal state that makes certain outcomes
appear attractive.
- unsatisfied needs create tensions that stimulate
drives that lead to search behavior

The Motivation Process
Unsatisfied Search Satisfied Reduction

Tension Drives
Need Behavior Need of Tension

Early Theories Of Motivation
1. Maslow’s Hierarchy of
Needs Theory
Self-
Actualization
Esteem
Social
Safety
Physiological

Early Theories Of Motivation
1. Maslow’s Hierarchy of Needs Theory
LOWER-ORDER NEEDS - largely satisfied externally
◦ physiological - food, drink, shelter, sexual satisfaction
◦ safety - security and protection from physical and emotional
harm
◦ assurance that physiological needs will be satisfied
HIGHER-ORDER NEEDS - largely satisfied internally
◦ social - affection, belongingness, acceptance
◦ esteem - internal factors like self-respect, autonomy
◦ external factors like status, recognition, attention
◦ self-actualization - achieving one’s potential

Early Theories Of Motivation (cont.)
Maslow’s Hierarchy of Needs Theory (cont.)

each level in hierarchy must be satisfied before the
next is activated
◦ once a need is substantially satisfied it no longer
motivates behavior
theory received wide recognition
little research support for the validity of the theory

2. McGregor’s Theory X and Theory Y
They describe two contrasting models of workforce motivation.
Theory X and Theory Y have to do with the perceptions managers hold
on their employees, not the way they generally behave.
Theory X - assumes that workers have little ambition, dislike work,

want to avoid responsibility, and need to be closely controlled
◦ assumed that lower-order needs dominated
◦ A hierarchical structure is needed with narrow span of control at
each and every level.
◦ If the organizational goals are to be met, theory X managers rely
heavily on threat and coercion to gain their employees' compliance.

2. McGregor’s Theory X and Theory Y
 Beliefs of this theory lead to mistrust, highly restrictive supervision,
and a punitive atmosphere.
The Theory X manager tends to believe that everything must end in
blaming someone. He or she thinks all prospective employees are
only out for themselves.
◦ Usually these managers feel the sole purpose of the employee's
interest in the job is money.
◦ They will blame the person first in most situations, without
questioning whether it may be the system, policy, or lack of training
that deserves the blame.
 A Theory X manager believes that his or her employees do not
really want to work, that they would rather avoid responsibility and
that it is the manager's job to structure the work and energize the
employee.
 One major flaw of this management style is it is much more likely to
cause diseconomies of scale in large business.
 Theory Y - assumes that workers can exercise self-direction,
accept and actually seek out responsibility, and consider work to
be a natural activity
•assumed that higher-order needs dominated
•It is believed that employees enjoy their mental and physical

work duties.
•They possess the ability for creative problem solving, but their
talents are underused in most organizations.
16-136
–Theory Y –
 A Theory Y manager believes that, given the right conditions,

most people will want to do well at work.
 They believe that the satisfaction of doing a good job is a strong

motivation.
 the thinking is that Theory Y managers are more likely than

Theory X managers to develop the climate of trust with
employees that is required for human resource development.
–no evidence that either set of assumptions is valid

–no evidence that managing on the basis of Theory Y makes
employees more motivated
16-137
3. Herzberg’s Motivation-Hygiene Theory
states that there are certain factors in the workplace that cause job
satisfaction, while a separate set of factors cause dissatisfaction.
intrinsic characteristics consistently related to job satisfaction

◦ motivator factors energize employees
extrinsic characteristics consistently related to job dissatisfaction
◦ hygiene factors don’t motivate employees
◦ proposed dual continua for satisfaction and dissatisfaction
◦ theory enjoyed wide popularity
◦ influenced job design
◦ theory was roundly criticized

Herzberg’s Motivation-
Hygiene Theory

Contrasting Views Of Satisfaction-Dissatisfaction
Traditional View
Satisfaction Dissatisfaction
Herzberg’s View
Motivators Hygienes
Satisfaction No Satisfaction No Dissatisfaction Dissatisfaction

 Essentially, hygiene factors are needed to ensure an employee is not
dissatisfied. Motivation factors are needed to motivate an employee to
higher performance.
 Herzberg also further classified our actions and how and why we do them,
for example, if you perform a work-related action because you have to then
that is classed as movement, but if you perform a work related action
because you want to then that is classed as motivation.
Unlike Maslow, who offered little data to support his ideas, Herzberg and
others have presented considerable empirical evidence to confirm the
motivation-hygiene theory, although their work has been criticized on
methodological grounds.
16-141
Contemporary Theories Of Motivation
1. Three-Needs Theory – McClelland
 proposed a context for understanding needs in people, which
holds significance in understanding motivations and behaviors.
 It is subdivided into three categories: the Need for Achievement,
the Need for Affiliation, and the Need for Power
Need for achievement (nAch) - drive to excel, to achieve in relation to a
set of standards, and to strive to succeed
• will tend to engage in competitive activities in order to fulfil this desire.
do not strive for trappings and rewards of success
• prefer jobs that offer personal responsibility
• want rapid and unambiguous feedback
• set moderately challenging goals
– avoid very easy or very difficult tasks
• high achievers don’t necessarily make good managers
– focus on their own accomplishments
» good managers emphasize helping others to accomplish their goals

Contemporary Theories Of Motivation (cont.)
Need for power (nPow)
◦ need to make others behave in a way that they would not
have behaved otherwise
◦ the desire for control over others and over yourself. It confers
the need to be able to exercise direction in the world
surrounding you, and cause things to happen.
◦ will seek activities which likewise satisfy this need, such as,
to run for high positions in organizations and to seek out
opportunities to exercise that dominance.
Need for affiliation (nAff)
◦ desire for friendly and close interpersonal relationships
◦ best managers tend to be high in the need for power and low in
the need for affiliation
◦ Individuals who need to feel affiliated will tend to join clubs,
groups and teams to satiate that want.

2. Goal-Setting Theory
 Goal setting theory was developed by Edwin A. Locke in
the 1960s. His first article on goal setting theory was
“Toward a Theory of Task Motivation and Incentives” which
was published in 1968. This article laid the foundation for
goal setting theory and established the positive
relationship between clearly identified goals and
performance.
intention to work toward a goal is a major source of job
motivation
specific goals increase performance
◦ difficult goal, when accepted, results in higher performance
than does an easy goal
◦ specific hard goals produce a higher level of output than does
the generalized goal of “do your best”
participation in goal setting is useful
◦ reduces resistance to accepting difficult goals
◦ increases goal acceptance

Goal-Setting Theory (cont.)
feedback is useful
• helps identify discrepancies between what has been accomplished
and what needs to be done
• self-generated feedback is a powerful motivator

Goal-Setting Theory (cont.)
contingencies in goal-setting theory
1. goal commitment - theory presupposes that individual is
determined to accomplish the goal
– most likely to occur when:
» goals are made public
» individual has an internal locus of control
» goals are self-set rather than assigned
2. self-efficacy - an individual’s belief that s/he is capable of
performing a task
◦ higher self-efficacy, greater motivation to attain goals
3. national culture - theory is culture bound
◦ main ideas align with North American cultures
◦ goal setting may not lead to higher performance in other
cultures

Guidelines for Job Redesign

3. Reinforcement Theory
behavior is solely a function of its consequences

◦ behavior is externally caused
reinforcers - consequences that, when given immediately

following a behavior, affect the probability that the behavior will
be repeated
◦ managers can influence employees’ behavior by reinforcing
actions deemed desirable
◦ emphasis in on positive reinforcement, not punishment

Designing Motivating Jobs
Job Design - the way tasks are combined to form complete jobs
◦ historically, concentrated on making jobs more specialized
Job Enlargement - horizontal expansion of job

o job scope - the number of different tasks required in a job and the
frequency with which these tasks are repeated
◦ provides few challenges, little meaning to workers’ activities
◦ only addresses the lack of variety in specialized jobs
Job Enrichment - vertical expansion of job

◦ job depth - degree of control employees have over their work
◦ empowers employees to do tasks typically performed by their
managers
◦ research evidence has been inconclusive about the effect of job
enrichment on performance

Job Characteristics Model (JCM) - conceptual framework for analyzing
jobs
 Jobs described in terms of five core characteristics
1. skill variety - degree to which job requires a variety of activities
more variety, greater need to use different skills
2. task identity - degree to which job requires completion of an
identifiable piece of work
3. task significance - degree to which job has substantial impact on
the lives of other people
these three characteristics create meaningful work
4. autonomy - degree to which job provides substantial freedom,

independence, and discretion in performing the work
give employee a feeling of personal responsibility
5. feedback - degree to which carrying out the job results in receiving

clear information about the effectiveness with which it has been
performed
◦ employee knows how effectively s/he is performing
links between core characteristics and outcomes are
moderated by the strength of the individual’s growth need
◦ growth need - person’s desire for self-esteem and self-

actualization
model offers specific guidance for job design

Job Characteristics Model
Core Job Critical Personal and
Dimensions Psychological States Work Outcomes
High Internal
 Skill Variety  Experienced Work Motivation
 Task Identity meaningfulness
 Task of the work
Significance High-Quality
Work Performance
Experienced responsibility
 Autonomy
for outcomes of work
High Satisfaction
with the Work
Knowledge of the actual
 Feedback Low Absenteeism
results of the work
and Turnover
Strength of Employee Growth

Need
Guidelines For Job Redesign
Suggested Core Job
Actions Dimensions
Combining Tasks Skill Variety
Forming Natural
Work Units Task Identity
Forming Natural
Work Units Task Significance
Load Vertically Autonomy
Opening Feedback
Channels Feedback
4. Equity Theory
proposes that employees perceive what they get from a job (outcomes)
in relation to what they put into it (inputs)
input/outcome ratio compared with the ratios of relevant others

◦ equity - ratio is equal to that of relevant others
◦ inequity - ratio is unequal to that of relevant others
referent (relevant other) may be:

◦ other - individuals with similar jobs
◦ a system - includes organizational pay policies and administrative
systems
◦ self - past personal experiences and contacts

Equity Theory

Equity Theory (cont.)
when inequities are perceived, employees act to correct the

situation
◦ distort either their own or others’ inputs or outputs
◦ behave in a way to induce others to change their inputs or
outputs
◦ behave in a way to change their own inputs or outputs
◦ choose a different comparison person
◦ quit their jobs
theory leaves some issues unclear

5. Expectancy Theory
theory states that an individual tends to act in a certain way based on the
expectation that the act will be followed by a given outcome and on the
attractiveness of that outcome to the individual
◦ Expectancy (effort-performance linkage) - perceived probability that

exerting a given amount of effort will lead to a certain level of
performance
◦ Instrumentality (performance-reward linkage) - strength of belief that

performing at a particular level is instrumental in attaining an outcome
◦ Valence - attractiveness or importance of the potential outcome

Simplified Expectancy Model
Individual Individual Organizational Individual

A B C
Effort Performance Rewards Goals
A = Effort-performance linkage
B = Performance-reward linkage
C = Attractiveness

Contemporary Theories of Motivation (cont.)
Expectancy Theory (cont.)
theory emphasizes rewards
◦ organizational rewards must align with the individual’s wants
no universal principle for explaining what motivates individuals
◦ managers must understand why employees view certain
outcomes as attractive or unattractive
most comprehensive and widely accepted explanation of
employee motivation

Integrating Contemporary Theories of Motivation

Current Issues In Motivation
1. Motivating a Diverse Workforce
 flexibility is the key to motivating a diverse workforce

diverse range of rewards necessary to satisfy
diverse personal needs and goals

Current Issues In Motivation (cont.)
Motivating a Diverse Workforce (cont.)
Flexible Working Schedule
◦ compressed workweek - employees work longer hours per
day but fewer days per week
◦ flexible work hours (flextime) - employees required to work

a specific number of hours a week but are free to vary those
hours within certain limits
◦ system entails common core hours when all employees are
required to be on the job
◦ starting, ending, and lunch-hour times are flexible
◦ job sharing - two or more people split a full-time job
◦ telecommuting - employees work at home and are linked to

the workplace by computer and modem

Cultural Differences in Motivation
◦ motivation theories developed in the U.S. and validated with American
workers
◦ may be some cross-cultural consistencies
Pay-for-Performance
◦ instead of paying for time on the job, pay is adjusted to reflect some
performance measure
◦ compatible with expectancy theory
◦ imparts strong performance-reward linkage
◦ programs are gaining in popularity
◦ research suggests that programs affect performance
Open-Book Management
◦ involve employees in workplace decisions by opening up the financial
statements
◦ workers treated as business partners
◦ get workers to think like an owner
◦ may also provide bonuses based on profit improvements
2. Motivating the “New Workforce”
Motivating Professionals - professionals tend to derive intrinsic
satisfaction from their work and receive high pay
◦ more loyal to their profession than their employer
◦ value challenging jobs and support for their work
Motivating Contingent Workers - part-time, contract, or temporary
workers
◦ less security and stability than permanent employees
◦ receive fewer benefits
◦ display little identification or commitment to their employers
◦ hard to motivate contingent workers
◦ opportunity to become a permanent employee
◦ opportunity for training
◦ repercussions of mixing permanent and contingent workers when pay
differentials are significant

Motivating the “New Workforce” (cont.)
Motivating Low-Skilled, Minimum-Wage Employees
◦ difficult challenge to keep performance levels high
◦ employee recognition programs
◦ highlight employees whose work performance has been good
◦ encourage others to perform better
◦ power of praise
◦ in service industries, empower front-line employees to address
customers’ problems
◦ tie compensation to customer satisfaction

From Theory To Practice
Recognize
Match people
individual
to jobs
differences
Don’t ignore
Use goals
money Suggestions
for
Motivating
Ensure that goals
Check the system Employees are perceived as
for equity
attainable
Link rewards Individualize

to performance rewards

EFFECTIVE MANAGEMENT TECHNICS
Management by Objectives (MBO)

Time management
Management of technology and innovation
Team development

Management By Objectives
MBO
DEFINITION
MBO is the process where superior & managers of an organization
jointly defines it’s common goals, each individual area of responsibility
in the term of results expected by him & use their measures as a guide
for operating the unit & assuming contribution of each of its members.
MBO is the process of defining top company goals and using them to determine employees’
objectives. MBO processes are intended to identify an employee’s main objectives, later
graded with group input. This helps all company contributors see their accomplishments in
connection to the company’s top priorities as they carry out their tasks, reinforcing alignment
between activity and outcome, which dramatically increases productivity.

DEVELOPMENT OF - MBO
MBO was developed by Peter Drucker, a renowned American author and
consultant in the field of Organizational Development and management.
The concept is that Management By Objectives (MBO) is performance
management approach in which a balance is sought between the
objectives of employees and the objectives of an organization.
The essence of Peter Drucker ’s basic principle: Management By

Objectives is to determine joint objectives and to provide feedback on the
results.
Setting challenging but attainable objectives promotes motivation

and empowerment of employees.
By increasing commitment, managers are given the opportunity to
focus on new ideas and innovation that contribute to the development
and objectives of organizations

CONDITIONS THAT MUST BE MET:- MBO
 Objectives are determined with the employees;
 Objectives are formulated at both quantitative and qualitative levels;
 Objectives must be challenging and motivating;
 Daily feedback on the state of affairs at the level of coaching and

development instead of static management reports;
 Rewards (recognition, appreciation and/or performance-related pay) for

achieving the intended objectives is a requirement;
 The basic principle is growth and development not punishments.

MBO – The Process

The Process
• Define organisational goals
1.PRELIMINAR • Employees must be involved in the process
Y GOAL
SETTING
• The objectives to be achieved are decided by all concern parties
&
1.SETTING
• Key results areas are also finalized
SUBORDINATES’ • Employee’s job is defined in line with the objectives
OBJECTIVES
• Based on objectives & useful for suitable follow up for achieving

objectives
1.ACTION • The action plan gives clean direction to concern parties & brings
PLANNING unity in the whole organization. Action plan is prepared jointly
• Periodical view is useful for execution of action plan. Such

review suggests actual performance of the plan. If there is any
PERIODIC
PERFORMANC
deviation remedial action can be taken.
E REVIEW
• A tool for performance appraisal to superiors.
• It helps to improve the performance of staff in future. Appraisal
FINAL
APPRAISAL
need to be done with trust & confidence.

Unique Features of MBO
Goals : are set for sole contributors, team leaders, department executives,
and the CEO, so everyone has a sense of what they are supposed to be
contributing to the team as well as how it fits into the big picture.
Objectives: Objectives are essential to ensuring that all contributors spend
their time at work productively and are working towards a concerted
outcome. They also teach those at a company about how much they are truly
capable of accomplishing in a set amount of time.
Quantify : Another rule is to quantify your objectives to provide a clear idea
of success, which will be important later in the review process.
Performance reviews: The performance review process helps identify
mistakes and errors. It also allows for a brainstorming session about what the
company might need to change to meet its main objectives in the future.

Unique Features and advantages of MBO
Clarity of goals – SMART, Specific, Measurable, Achievable, Realistic
and Time bound
The focus is on future rather than on past. Goals and standards are
set for the performance of the future with periodic reviews and feedback.
Motivation – involving employees in the whole process of goal setting
and increasing employee empowerment increases employee job
satisfaction and commitment
Better communication and coordination – frequent reviews and
interactions between superiors and subordinates helps to maintain
harmonious relationships within the enterprise and also many problems
faced during the period

Unique Features and advantages of MBO
Better planning
Facilitates control
Objective appraisal
Better morale
Result-oriented philosophy

BENEFITS - MBO
 Management by objectives helps employees appreciate their on-the-job
roles and responsibilities.
 The Key Result Areas (KRAs) planned are specific to each employee,
depending on their interest, educational qualification, and specialization.
 The MBO approach usually results in better teamwork and
communication.
 It provides the employees with a clear understanding of what is expected
of them. The supervisors set goals for every member of the team, and
every employee is provided with a list of unique tasks.
 Every employee is assigned unique goals. Hence, each employee feels
indispensable to the organization and eventually develops a sense of
loyalty to the organization.
 Managers help ensure that subordinates’ goals are related to the
objectives of the organization.
MBO - Limitations
Pressure-oriented
Time consuming
Increased paperwork
Goal-setting problems
Organisational problems

ECONOMICS FOR ENGINEERING
Introduction to Micro and Macro
Economics
Why Study Economics in this Module?
The Study of management is incomplete without an

understanding of basics of economics.
 The basics of economics helps to understand problems of

society and organizations and how you attempt to work
them out.

Understanding Economics:
To simplify the understanding of what economics is, we look
at it as a subject that deals with two aspects, namely:
Production (supply) of goods and services:
how much an economy produces, both in total and of
individual items; how much each firm or person produces;
what techniques of production are used; how many people
are employed.
The consumption (demand) of goods and services:
how much people spend (and how much they save) ; how
much people buy of particular items; what individuals
choose to buy; how consumption is affected by prices,
advertising, fashion, people’s incomes and other factors.

Dividing the subject
(I) Microeconomics: (deals with individual units of the
economy.) It’s concerned with the demand and supply of
particular goods, services and resources such as cars,
butter, clothes, haircuts, plumbers, accountants,
computers and oil.
(II) (II) Macroeconomics (deals with the economy as a
whole) The branch of economics that studies economic
aggregates (grand totals): e.g. the overall level of prices,
output and employment in the economy.
Aggregate demand The total level of spending in the
economy.
Aggregate supply The total amount of output in the
economy

The problem of Scarcity
Ask people if they would like more money, and the vast
majority would answer ‘Yes’. But they don’t want more money
for its own sake. Rather they want to be able to buy more
goods and services, either today or in the future. These
‘wants’ will vary according to income levels and tastes. In a
poor country ‘wants’ might include clean water, education and
suitable housing. In richer nations ‘wants’ might involve a
second car, longer holidays and more time with friends and
family.
As countries get richer, human wants may change but they
don’t disappear. Wants are virtually unlimited.
Yet the means of fulfilling wants are limited. At any point,
the world can only produce a finite amount of goods and
services because the world has a limited amount of
resources.
The means of fulfilling wants are limited
At any point, the world can only produce a finite amount of
goods and services because the world has a limited amount of
resources.
These resources, or factors of production as • they are often
called in economics, are of three broad types:
Human resources: labour. The labour force is limited in
number, but also in skills. This limits the productivity of labour:
i.e. the amount labour can produce.
Natural resources: land and raw materials. The world’s land
area is limited, as are its raw materials.
Manufactured resources: capital. Capital consists of all
those inputs that have themselves had to be produced. The
world has a limited stock of factories, machines, transportation
and other equipment. The productivity of this capital is limited
by the current state of technology
The problem of scarcity summarized :
The fundamental economic problem is that human wants are

virtually unlimited, whereas the resources available to meet
those wants are limited.
Thus, scarcity can be defined as: The excess of human wants

over what can actually be produced.
Because of scarcity, various choices have to be made

between alternatives.

Microeconomic objectives:
• Microeconomics is concerned with the allocation of scarce
resources: with the answering of the what, how and for whom
questions.
But how satisfactorily will these questions be answered?
Clearly this depends on society’s objectives.
There are two major objectives that we can identify:
• efficiency and
• equity.

Microeconomic objectives:
• Efficiency. If altering what was produced or how it was
produced could make us all better off (or at least make some
of us better off without anyone losing), then it would be
efficient to do so.
For a society to achieve full economic efficiency, there must
be:
• ■ Efficiency in production (productive efficiency). This is
where production of each item is at minimum cost. Producing
any other way would cost more.
• ■ Efficiency in consumption. This is where consumers
allocate their expenditures so as to get maximum satisfaction
from their income. Any other pattern of consumption would
make people feel worse off.

Macroeconomic Problems :
Macroeconomic problems are closely related to the balance
between aggregate (total) demand and aggregate
(total)supply.
• If aggregate demand is too high relative to aggregate

supply, (i) inflation and (ii) trade deficits are likely to result.

Inflation refers to a general rise in the level of prices
throughout the economy.
If aggregate demand rises substantially, firms are likely to
respond by raising their prices. If demand is high, they can
probably still sell as much as before (if not more) even at the
higher prices and make higher profits.
If firms in general put up their prices, inflation results.
• By comparing price levels between different periods we can
measure the rate of inflation.
Typically, the rate of inflation reported is the annual rate of
inflation: the percentage increase in prices over a 12-month
period.

Balance of trade deficits are the excess (overage) of
imports (goods and services bought outside the country) over
exports (goods and services sold outside the county).
If aggregate demand rises, people are likely to buy more

imports. So part of the extra spending will go on goods from
overseas, such as Japanese TVs, Chinese computers,
German cars, etc.
Also, if the rate of inflation is high, home-produced goods will
become uncompetitive with foreign goods. We are likely to
buy more foreign imports and people abroad are likely to buy
fewer of our exports.

• If aggregate demand is too low relative to aggregate supply,
unemployment and recession may well result.
• Recession is where output in the economy declines for two
successive quarters or longer. In other words, during this
period growth becomes negative. Hence, not all periods
during which the economy contracts are termed ‘recessions’.
It is the duration and persistence of the contraction that
distinguishes a recession.
• Recessions are associated with low levels of consumer
spending. If people spend less, shops are likely to find
themselves with unsold stock. Then they will buy less from
the manufacturers; they will cut down on production; and buy
fewer capital goods such as machinery.

• Unemployment is likely to result from cutbacks in
production. If firms are producing less, they will need to
employ fewer people.
• Number unemployed (economist’s definition) Those of
working age who are without work, but who are available for
work at current wage rates.
• Labour force The number employed plus the number
unemployed
• Unemployment rate The number unemployed expressed
as a percentage of the labour force.

Demand and supply. :
• The law of demand: when the price of a good rises, the
quantity demanded will fall. This relationship is known as the
law of demand. There are two reasons for this law:
• People will feel poorer. They will not be able to afford to buy
as much of the good with their money. The purchasing power
of their income (their real income) has fallen. This is called
the income effect of a price rise.
• The good will now cost more than alternative or substitute’
goods, and people will switch to these. This is called the
substitution effect of a price rise.
• Similarly, when the price of a good falls, the quantity
demanded will rise. People can afford to buy more (the
income effect), and they will switch away from consuming
alternative goods (the substitution effect).

Demand and supply. :
• Notice that the expression: quantity demanded refers to
the amount that consumers are willing and able to purchase
at a given price over a given period (e.g. a week, or a month,
or a year). It does not refer to what people would simply like
to consume.
• Quantity demanded may also be different from the quantity
actually purchased. A consumer may be willing and able to
purchase the good but cannot find a supplier willing to sell at
that price.

Other determinants of demand
• Price is not the only factor that determines how much of a
good people will buy. Demand is also affected by:
• Tastes. The more desirable people find the good, the more
they will demand. Tastes are affected by advertising, by
trends and fashion, by observing other consumers,
considerations of health and by the experience of consuming
the good on previous occasions
• The number and price of substitute goods (i.e. competitive
goods). The higher the price of substitute goods, the higher
will be the demand for this good as people switch from the
substitutes.

Other determinants of demand
• The number and price of complementary goods.
Complementary goods are those that are consumed together;
cars and petrol, paper and ink cartridges, fish and chips. The
higher the price of complementary goods, the fewer of them
will be bought and hence the less will be the demand for the
good under consideration.
• Income. As people’s incomes rise, their demand for most
goods will rise. Such goods are called normal goods. There
are exceptions to this general rule, however. As people get
richer, they spend less on inferior goods, such as
supermarket ‘value’ ranges, and switch to better quality
goods.
• Expectations of future price changes. If people think that
prices are going to rise in the future, they are likely to buy
more now before the price does go up.
Supply
The general relationship between supply and price: when the
price of a good rises, the quantity supplied will also rise.
Reasons for this are:
The higher the price of the good, the more profitable it

becomes to produce. Firms will thus be encouraged to
produce more of it by switching from producing less
profitable goods.
Given time, if the price of a good remains high, new

producers will be encouraged to enter the industry. Total
market supply thus rises.

Other determinants of supply
• Like demand, supply is not simply determined by price
alone. Other determinants of supply are:
• The costs of production: The higher the costs of
production, the less profit will be made at any price. As costs
rise, firms will cut back on production, probably switching to
alternative products whose costs have not risen so much.
• Change in technology: technological advances can
fundamentally alter the costs of production
• Organizational changes: various cost savings can be
made in many firms by re-organizing production.
• Government policy and regulations: costs will be lowered
by government subsidies and raised by various taxes,
minimum wages and obligations for employers to provide and
contribute to employee pensions.
HUMAN RESOURCES
MANAGEMENT
Introduction
The practice of human resource management (HRM) is concerned with
all aspects of how people are employed and managed in organizations.
It covers activities such as

Strategic HRM, Performance management,
Human capital management, Learning and development,
Corporate social responsibility, Reward management,
Knowledge management, Employee relations,
Organization development, Employee well-being and health and
safety
Resourcing (human resource
planning, recruitment and selection, The provision of employee services.
and talent management),
HRM practice has a strong conceptual basis drawn from the behavioural sciences
and from strategic management, human capital and industrial relations theories.
Nature, Models and Context of HRM
DEFINITION
Human resources is the total knowledge, skills, creative abilities, talents
and aptitudes of an organization’s workforce, as well as the values,
attitudes, approaches and beliefs of the individuals involved in the affairs
of the organization.
Human resource management (HRM or HR) is the strategic approach to
the effective and efficient management of people in a company or
organization such that they help their business gain a competitive
advantage.
Human resource management (HRM) is a strategic, integrated and
coherent approach to the employment, development and well-being
of the people working in organizations.
NATURE
HUMAN
RESOURCES
ARE MULTI
DIMENSIONAL IN
NATURE.
Human Resource Management is a process of bringing people and organizations together so
that the goals of each are met. The various features of HRM includes:
1. Inherent Part of Management: Human resource management is inherent in the process of management.
This function is performed by all the managers throughout the organisation rather that by the HR department
only.
2. Pervasive Function: Human Resource Management is a pervasive function of management. It is
performed by all managers at various levels in the organisation.
3. Basic to all Functional Areas: Human Resource Management infuses all the functional area of
management such as production management, financial management, and marketing management.
4. People Centered: Human Resource Management is people centered and is relevant in all types of
organisations. It is concerned with all categories of personnel from top to the bottom of the
organisation.
5. Personnel Activities or Functions: Human Resource Management involves several functions
concerned with the management of people at work. It includes manpower planning, employment,
placement, training, appraisal and compensation of employees.
6. Continuous Process: Human Resource Management is not a one shot‘ function. It must be
performed continuously if the organisational objectives are to be achieved smoothly.
7. Based on Human Relations: Human Resource Management is concerned with the motivation of
human resources in the organisation. The human beings can‘t be dealt with like physical factors of
production.
MODELS
Human resource management (HRM) has frequently been described as
a concept with two distinct forms: Soft and Hard.
- These are based on opposing views of: human nature and managerial control
strategies.
The soft model is based on control The hard model is based on notions of tight
through commitment. strategic control
Soft HRM is associated with Hard HRM focuses on
 the human relations movement, the  the importance of `strategic fit. where HR
utilization of individual talents policies and practices are closely linked
 the goals of flexibility and adaptability to the strategic objectives of the
and implies that communication plays organization.
a central role in management.  the quantitative, calculative and business-
strategic aspects of managing the
``headcount resource'' in a way as any
other factor of production'
Todays, HRM in action does not necessarily conform to this concept as a whole.
The practice of HRM is diverse.
-HRM goals vary according to competitive choices, technologies,

characteristics of employees and the state of the labour market.
-Human resource management covers a vast array of activities and
shows a huge range of variations across occupations, organizational
levels, business units, firms, industries and societies.’
There are in fact a number of different models of HRM as described

below
 - The matching model of HRM
 - The Harvard model of HRM
 - Contextual model of HRM
 - The 5-P model of HRM
 - European model of HRM
The Practice Of Human Resource Management
THE OBJECTIVES OF HRM
The overall purpose of human resource management is to ensure that the
organization is able to achieve success through people.
HRM aims to increase organizational effectiveness and capability – the capacity
of an organization to achieve its goals by making the best use of the resources
available to it.
HRM systems are the source of organizational capabilities that allow films to
learn and capitalize on new opportunities.
HRM has an ethical dimension which means that it must also be concerned with
the rights and needs of people in organizations through the exercise of social
responsibility.
THE HR FUNCTION
In a sense the HR function is in the delivery business – providing the advice and services that
enable organizations and their line managers to get things done through people.
HR can deliver in four ways:
 employee advocate,
 human capital developer,
 functional expert and
 strategic partner.
THE ROLE AND ORGANIZATION OF THE HR
FUNCTION
HR function provide insight, leadership, advice and services on matters affecting the
management, employment, learning and development, reward and well-being of
people, and the relationships between management and employees.
Importantly, they contribute to the achievement of organizational effectiveness and

success
The basic role of HR is to deliver HRM services.

- Plays a key part in the creation of an environment that enhances engagement by
enabling people to make the best use of their capacities,
- It helps people realize their potential to the benefit of both the organization and
themselves,
- It makes people to achieve satisfaction through their work.
The role of HR is seen to be business-oriented

– contributing to the achievement of sustained competitive advantage.
IMPORTANCE OF HR IN AN ORGANISATION
1. Strategic Management
HR improves the company's bottom line with its knowledge of how human capital
affects organizational success. HR expertise in HR strategic management
participate in corporate decision-making that underlies current staffing assessments
and projections for future workforce needs based on business demand.
2. Wages and Salaries
HR compensation specialists develop realistic compensation structures that set
company wages competitive with other businesses in the area, industry or
companies competing for employees with similar skills. They conduct extensive
wage and salary surveys to maintain compensation costs in line with the
organization's current financial status and projected revenue.
3. Analyzing Benefits
HR Benefits specialists can reduce the company’s costs associated with turnover,
attrition and hiring replacement workers. They are important to the organization
because they have the skills and expertise necessary to negotiate group benefit
packages for employees, within the organization's budget and consistent with
economic conditions. They also are familiar with employee benefits most likely to
attract and retain workers.
4. Safety and Risk Management
Employers have an obligation to provide safe working conditions. Workplace safety
and risk management specialists from the HR area manage compliance with
Occupational Safety and Health Administration regulations. Workplace safety
specialists also engage employees in promoting awareness and safe handling of
dangerous equipment and hazardous chemicals.
5. Minimizing Liability Issues
HR employee relations specialists minimize the organization's exposure and liability
related to allegations of unfair employment practices.
6. Training and Development
HR training and development specialists coordinate new employee orientation, an
essential step in forging a strong employer-employee relationship. The training and
development area of HR also provides training that supports the company's fair
employment practices and employee development to prepare aspiring leaders for
supervisory and management roles.
7. Employee Satisfaction
HR help the organization achieve high performance, morale and satisfaction levels
throughout the workforce, by creating ways to strengthen the employer-employee
relationship. They administer employee opinion surveys, conduct focus groups and
seek employee input regarding job satisfaction and ways the employer can sustain
good working relationships.
8. Recruitment and Onboarding
HR manage the employment process from screening resumes to scheduling
interviews to processing new employees. Typically, they determine the most
effective methods for recruiting applicants, including assessing which applicant
tracking systems are best suited for the organization's needs.
9. Hiring Processes
HR professionals work closely with hiring managers to effect good hiring decisions,
according to the organization's workforce needs. They provide guidance to
managers who aren't familiar with HR or standard hiring processes to ensure that
the company extends offers to suitable candidates.
10. Maintaining Compliance

HR workers ensure that the organization complies with employment laws. They
complete paperwork necessary for documenting that the company's employees are
eligible to work.
PEOPLE RESOURCING
Human Resource Planning
Introduction
Organizations need to know how many people and what sort of people they
should have to meet present and future business requirements. This is the
function of human resource planning, or workforce planning as it is
sometimes called, especially in the public sector.
Human resource is the most valuable asset any organisation has. Therefore,
it is very important that an organisation strategically plans for its human
resource composition.
Definition
Bulla and Scott (1994), defined human resource planning as ‘the process for
ensuring that the human resource requirements of an organization are identified
and plans are made for satisfying those requirements’.
According to DeCenzo & Robbins (2010), human resource planning is a process

by which an organization ensures that it has the right number and mixture of
people at the right place, at the right time, capable of effectively and efficiently
completing those tasks that will help the organization achieve its overall strategic
objectives.
Mondy (2016) also defines human resource planning (also known as manpower
planning) as a systematic process of matching the internal and external supply of
people with job openings anticipated in the organisation over a specified period of
time.
Reilly (2003) defined workforce planning as: ‘A process in which an organization

attempts to estimate the demand for labour and evaluate the size, nature and
sources of supply which will be required to meet the demand.
Aims and Reasons of human resource
planning
AIM: Human resource planning aims to ensure that the organization has the number
of people with the right skills needed to meet forecast requirements.
REASONS: There are a number of reasons why organizations choose to engage in

some form of human resource planning. These fall into the following three groups
1. Planning for substantive reasons, that is, to have a practical effect by optimizing
the use of resources and/or making them more flexible, acquiring and nurturing skills
that take time to develop, identifying potential problems and minimizing the chances
of making a bad decision.
2. Planning because of the process benefits, which involves understanding the

present in order to confront the future, challenging assumptions and liberating
thinking, making explicit decisions that can later be challenged, standing back and
providing an overview and ensuring that long-term thinking is not driven out by short-
term focus.
3. Planning for organizational reasons, which involves communicating plans so as to

obtain support/adherence to them, linking HR plans to business plans so as to
influence them, (re)gaining corporate control over operating units, and coordinating
and integrating organizational decision making and actions.
Approaches to human resource planning
According to Noe et al (2016), human resource planning process involves
assessing the strengths and weaknesses of existing labour force, the
expectation of the future and making decisions on changes to be made
such as downsizing, hiring or training employees.
1. Scenario planning
2. Demand forecasting
3. Supply forecasting
4. Forecasting requirements.
5. Action planning
Recruitment Process
From Sourcing to Onboarding
Recruitment, Selection, Induction

Introduction
Recruitment process is a core function of the Human Resource
department. It is a process that involves everything from identifying,
attracting, screening, shortlisting, interviewing, selecting, hiring, and
onboarding employees
The success of any organization depends on its employees. When an

employee is well suited for their job, the entire company can enjoy the
benefits of their unbeatable success.
Recruitment Definition
Recruitment is the process of finding people to work for a company.
Recruitment refers to the process where potential applicants are searched for, and
then encouraged to apply for an actual or anticipated vacancy.
Recruitment is the process of finding and engaging the people the organization
needs.
Recruitment Process
An efficient recruitment process is an organization-specific sourcing model
that aims to find the right fit for the right job at the right time.
It is a step-by-step approach to bringing in talented people who can help the

company grow.
The process vary from company to company depending on the

organizational structure, size of the company, nature of operations, existing
recruitment workflow and selection process.
Steps of Recruitment Process
 Recruitment planning,
 Recruitment Strategy development
 Searching
 Screening
 Evaluation and control

Recruitment Activities
Specific tasks involved in the process of recruitment include:
 Analyzing job requirements
 Advertising the vacancy
 Attracting candidates to apply for the job
 Managing response
 Scrutinizing applications
 Shortlisting candidates
SELECTION
SELECTION
Definition
Selection is a process of choosing people with the right qualifications to fill a
current or future job opening.
Selection is the process of hiring employees among the shortlisted

candidates and providing them a job in the organization.
Selection is the process of identifying an individual from a pool of job

applicants with the requisite qualifications and competencies to fill
jobs in the organization.
This is an HR process that helps differentiate between qualified and

unqualified applicants by applying various techniques.
The objective of selection is to assess the suitability of candidates by
predicting the extent to which they will be able to carry out a role successfully.
SELECTION
Once this job opening is published and advertised, candidates flow in.
This is where the selection starts. This consists of seven stages.
 Screening
 Shortlisting (Eliminating unsuitable candidates)
 Assessment - Conducting an examination (aptitude test,
intelligence test, performance test, personality test, etc.)
 Interviews
 Checking references and Background check
 Decision
 Job offer and contract
SELECTION PROCESS
1. Screening :
This can happen in multiple ways.
Resume screening. The most commonly known technique is resume or CV
screening. Resume screening helps to assess if candidates comply with the
criteria needed for the job.
Phone screening/ chatbot. After the resume screening, often a phone
screening happens. This helps to align expectations between the candidate
and employer.
2. Shortlisting (Eliminating unsuitable candidates):
It would be too costly and time consuming to interview every candidate that
applied for a position, so a shortlist is made to reduce the number of candidates
who will be interviewed.
The application forms or CVs are compared to the person specification and job
description.
This is used to draw up a shortlist of the most suitable candidates. These candidates
are invited to interview.
3. Assessment - Conducting an examination:
A full assessment help save considerable time interviewing candidates who
are potentially unsuited for the role.
Carry out an assessment by doing aptitude test, intelligence test,
performance test, personality test, etc.
SELECTION PROCESS
Methods used to test and assess candidate’s ability.

Method Description
This tests the candidate’s ability at a certain skill e. g.
Aptitude tests
ICT, practical woodwork or maths
This tests the mental ability of a candidate e. g.
Intelligence tests
problem-solving, numeracy and literacy
This tests the attitudes or character of the candidate
Psychometric tests
usually through a set of multiple-choice questions
This tests the candidate’s personality traits e. g. are
Personality tests
they a team player or a leader
Some medical or physical test will be required for
Medical and physical ability
certain jobs e. g. police, fire service or army
Testing allows an organisation to see how a candidate copes under pressure. It

aims to find out about a candidate’s true personality and abilities and not just
what they say about themselves.
SELECTION PROCESS
4. Interviews
The fourth stage in the process is the best known and most visible of them all: the
job interview. The job interview involves the candidate being interviewed by their
direct manager or the recruiter to assess how well-suited they are for the job.
The interview offers some insight into a person’s verbal fluency and sociability.
It also provides the opportunity to ask the candidate questions related to the job
and it presents the opportunity to sell the job to the candidate.
There are two kinds of interviews,

the unstructured and
structured interview.
- In a structured interview, a standardized set of questions is used. This provides
the interviewer with a uniform method of recording information and standardizing
the rating of the applicant’s qualifications.
- In unstructured interview the interview ask random question to interviewee. The

disadvantage is that we subject interviewee to different scenario and rating them
on different scenario
SELECTION PROCESS
Interviews are in three different forms namely;
1. individual interviews,
2. interviewing panels and
3. selection boards,
In Individual interviews are one on one interviews between the employer
and the candidate. There is more scope for a biased or superficial decision
due to the presence of one interviewer.
Interviewing panel involves a Human resource specialist and a line

manager who interview a candidate.
The interviewers can share the candidate’s information hence reducing the
possibility of biased decisions.
Selection boards are a large interviewing panel as there are a lot of people
interested in the selection decisions
SELECTION PROCESS
5. Checking references and Background check
In this stage, you have reduced the long list of candidates to a shortlist of
one to three candidates.
An essential step is the reference check. Reference checks are a way to

confirm your perception of the candidate. Ask the candidate to give you
references and follow up on these. If during the interview you have doubts
about a certain competency or skill, the reference check is an excellent way
to gather more information from different perspectives.
A background check is commonly used for government functions and other
jobs that involve access to highly confidential information.
6. Decision
The next step is making the decision and choosing the candidate with the
greatest future potential for the organization.
The decision is best made based on a data-driven approach. In practice,
this means pre-defined criteria on which each candidate is rated during the
selection process.
The best candidate is then chosen and recommended to be given an offer.
SELECTION PROCESS
7. Job offer and contract

After making the decision and recommendation the selection process isn’t
over.
At this point, the organization should have all the information that will make
the candidate say yes. This has been retrieved during the phone screening
and job interview.
The successful candidate is contacted and given the offer. The successful
candidate then needs to accept the offer.
If the offer is accepted a contract is drawn and signed.
Only when the employment contract is signed by all parties, will the
selection process be completed.
The Difference Between Recruitment and Selection
Comparison Recruitment Selection
An activity of searching
A process of selecting the best
for potential candidates
Meaning candidates and offering them
and encouraging them to
the job.
apply.
Negative – seeking out ways
Positive – seeking out
to reduce the applicant pool
Approach an increase in the
until one ideal candidate is
applicant pool.
identified.
Inviting more candidates Choosing the most suitable
Objective to apply for a vacant candidate and rejecting the
position. rest.
Key Factor Advertising the Job Appointing the candidate
Sequence First Second
The Difference Between Recruitment and Selection
Comparison Recruitment Selection
The organization makes an
Vacancies are notified by
applicant go through various levels
the organization through
(submitting a form, writing a test,
Process various sources, then an
undergoing an interview, etc.) to
application form is made
deem whether they’re an
available to candidates.
appropriate fit.
The recruitment policy
specifies the objectives of The selection policy consists of a
recruitment, providing rules series of methods/steps/stages by
Specifications
and regulations for the which the evaluation of the
implementation of the candidate will be done.
recruitment program.
Recruitment only implies
communication of
Selection involves the creation of a
Contractual vacancies and open
contractual agreement between the
Relation positions – therefore, no
employer and employee.
contractual relation is
established.
Method Economical. Expensive.
You have been a wonderful class

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COURSE

Module Title : Engineering Management

Riggs, Engineering Economics (2nd Edition), McGraw-Hill,

Morse B, Daniel L and Lucy C (2009), Managing

It covers activities such as

Effective management, Management by objective (MBO),

Leadership Role of Supervisor, leadership

CAREER IN ENGINEERING MANGMENT

 Overseeing the team members and processes associated with

Engineering managers provide leadership in a variety of project-related

It involves continuous activities such as planning, organizing, leading and

Any organization’s success depends on the strength of those in

Management is a complicated subject and it’s often viewed as a discipline or a

It refers to organizational activities, it also denotes a body of knowledge or discipline.

Some describe it as a means of leadership while others view it as an economic

Management is seen as a never-ending process that brings different teams and

Work is managed so that everyone works in harmony to achieve common

Works to helps employees to prioritize activities and monitor progress, which

This looks at preventing miscommunication and task repetition as everyone is

There is clarity and accountability—the cornerstones of business growth and

Several organizations prefer individuals with a Master of Business Administration

Looking at specialized knowledge (such as an MBA degree) provides an

Therefore, management has evolved as a body of knowledge that continues to

◦ Management is dynamic as it must remain equipped to face various changes in the

◦ It inspires and thrives on dynamic action.

It is best to understand what makes an effective Manager, before understanding

“Therefore, Effective management refers to the extent to

Low Waste High Attainment

Management Strives For:

Inputs Transformation Outputs

In the Industrial Revolution, individuals were organized to add parts to the

In the 20th century, General Motors pioneered a revolutionary

Today, organizational structures are changing swiftly—from virtual

Organizational structure is the method by which workflows through an

Organization Structure is the formal framework by which job

 Organizational structure aligns and relates parts of an organization, so it can

 The organizational structure also determines how information flows between

 Having an organizational structure in place allows companies to remain

1. Functional - Job design,/ Work Specialization

These elements comprise an organizational chart and create the

Organizational structures have evolved from rigid, vertically

Designed to respond quickly to customer needs with customized

Two main types of vertical structure exist,

The functional structure divides work and employees by specialization.

This traditional type of organization forms departments such as

Disadvantages center on coordination or lack thereof:

Manager, Manager, Manager, Manager, Manager,

Manager, Recreational and Utility Rail Products

Mass Transit Recreational Products

Bombardier-Rotax Logistic Equipment

Sales Director, Sales Director, Sales Director, Sales Director,

© Prentice Hall, 2002

Sawing Planing and Assembling Lacquering and

Finishing Inspection and

© Prentice Hall, 2002

Manager, Manager, Manager,

© Prentice Hall, 2002 10-54

Responsibility - the obligation to perform any assigned duties

Unity of command - a person should report to only one

These concepts are less relevant today due to information

determines the number of levels and managers in an organization

the wider the span, the more efficient the organization

appropriate span is influenced by:

 strategy and structure should be closely linked