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ENGINEERING MANAGEMENT

The Organization

Raymerose Daque
Kinneth Mae Maghanoy
Eduard Animo

THE ORGANIZATION
An organization may be considered group of people with defined
relationship to each other.
By an organization, one may also be referring to a collection of human
and material resources, which are gathered together for a stated
aim.
At a more general level, an organization may also refer to a structure
defining the division of work and interaction between individuals,
groups and resources.

THE ORGANIZATION
ELEMENTS:
 A collection of people in formal and informal groupings.
 Individuals who have defined tasks and responsibilities, some of
which may consist of specialization.
 The manner in which these tasks interact and relate to each other is
defined.
 The tasks all lead to achievement of a common aim.

TRADITIONAL VIEW OF AN
ORGANIZATION
• HIERARCHICAL

Command
and
control

Information

TRADITIONAL VIEW OF AN ORGANIZATION • FLATTENED Information Command and control .

 The emphasis on horizontal activities within the organization in order to gain influence and information. . but many more opportunities for advancement.  No clear career progression paths within the organization. rather than vertical activity.  Rapidly disappearing formal control mechanisms between managers and subordinates.  The realization that external contacts are becoming an important factor in being able to wield internal influence and power.THE ORGANIZATION These changes have been driven by:  The emphasis in organizations on the attainment of results rather on the process used in achieving them.  Many more opportunities for action and exerting influence within an organization.

learning from new experiences. very different from the structures of the past.ORGANIZATIONAL DYNAMICS The Management create conditions for the organization to learn and develop. situations change. . where staff obeyed orders either out of fear or blind loyalty. the manager must create an open. However. questioning environment. For effective learning. and staff must be willing to experiment. Staff take actions based on their past experience and memory. repeating actions that were known to have worked in previous similar situations.

It is commonly defined by organization charts. .ORGANIZATION STRUCTURES Defining a structure An organization structure is the way the organization allocates its resources towards meeting its strategic aims.

ORGANIZATION STRUCTURES Groupings for common organizational structures: ORGANIZATION STRUCTURES GROUPING LINE STAFF PROJECT-BASED FUNCTIONAL FLEXIBLE HIERARCHICAL MATRIX MATRIX INFORMAL INFORMAL .

Hierarchical Organizational Structure .

Hierarchical organizational structures are probably the most common and often considered to be essential for control of large organizations. ( Jaques. 1990) .

Military forces are an example of straight chain of command. The order in which authority and power is delegated from top management to every employee at every level of the organization. The concept that a person should have one boss and should report only to him. eg. . Unity of Command. Authority. The rights inherent in the managerial position to tell people what to do and expect them to do it.Definition of Terms Span of Control. Chain of command. The number of people that report back to one manager in a hierarchy.

Types of Hierarchical Organizational Structure Line Staff or Functional Authority Line-and-Staff Geographic Functional Project .

Line Organizational Structure .

and the chain of command is clear and simple.departments directly involved in accomplishing the primary goal of the organization. top management has complete control. . In a line organization.There are only line departments.

Staff or Functional Authority Organizational Structure .

The staff personnel who are specialists in some fields are given functional authority ( the right of staff specialists to issue orders in their own names in designated areas). .

The principle of unity of command is violated when functional authority exists. . rather than exert advice authority. Some staff specialists may exert direct authority over the line personnel.

Line-and-Staff Organizational Structure .

Has a direct. Most large organizations belong to this type of organizational structure. vertical relationships between different levels and also specialists responsible for advising and assisting line managers. .

In general. functional authority of staff is replaced by staff responsibility so that the principle of unity is not violated. .

Geographic Organizational Structure .

.Geographic organizational structure is used for organizations that have offices or businesses units in different geographic locations.

.Geographic organizational structure is used mainly in industries like retail and hotel chains. transportation and other large national and international organizations. Manufacturing organizations with several plants in different geographical locations may choose to operate using a geographic structure.

Functional Organizational Structure .

Organizations employing this kind of structure divide themselves into functional areas like marketing. positions are grouped based on the type of work they do and the skills required to complete that work. engineering. and accounting.In a functional structure. .

Project Organizational Structure .

The project manager has full-time team members working under him. .Organizations arrange their activities into programs or portfolios. and implement them through the projects.

generally to both a functional manager and a project manager.A matrix organizational structure is a company structure in which the reporting relationships are set up as a grid. rather than in the traditional hierarchy. employees have dual reporting relationships . Matrix management is suitable for use in situations needing multiple simultaneous management capabilities (Bartlett and Ghoshal. In other words. . or matrix. 1990).

Figure 1 A Simple management scheme .

Responsibilities of Project and Functional manager within a Matrix Organization .

Project responsibility Provide day-to-day guidance on work to be done Determine all priorities related to work. Ensure funding levels available for work including special tools Ensure conflicts between functions resolved Plan project and ensure project objectives are being met Provide customer interface Monitor project progress including resource usage and spend .

including tools. Monitor progress of functional contributors and help with technical problems. Look after ‘pay and rations’ of staff including personal achievement. Determine methods to be used in carrying out task. . Ensure technical know how transferred between projects.Functional responsibility Provide personnel of correct skills for job to be done.

There is a ‘home’ for the engineer to go to at the termination of the project .Functional manager is responsible for. Looking after the personal needs of the individual engineer Ensuring that high quality standards are followed on the project and.

functional and matrix organization .Project organization Project organization (%) 100 50 Matrix organization Functional organization 0 50 Functional control (%) 10 0 Figure 2 The relationship between project.

grow and deliver products to the costumer.The matrix organization has several aims: To allow projects to be formulated. To provide staff leveling. with minimum time and expense. including post-sales support. Overall staffing level Project 1 Figure 3 Staff levelling Project 2 Project 3 Project 4 .

by moving some of the day-to-day issues to the functional organization. To provide a project focus on all the work being. especially in relation to the impact on the costumer.  To provide platform for faster decision making.  To allow the project to concentrate on delivering the product to the costumer.  To provide a view across all the various functional areas in order to determine the impact of developments or changes in one area on another.  To provide a focus on the costumer. .

.Advantages to be gained for the engineer working in a matrix organization. Appraisals and promotions are based on the input from two managers. so they are more likely to be related to merit rather than the whim of individual managers. It is easier for the engineer to move between jobs. Experience is gained of working in a function and in a project The engineer can learn from the various managers.

THE INFORMAL ORGANIZATION Formal Organizational Structure DIRECTOR MANAGER A MANAGER B MANAGER C MANAGER D .

THE INFORMAL ORGANIZATION Informal Organizational Structure DIRECTOR MANAGER A MANAGER B MANAGER C MANAGER D .

PRESSURES FOR ORGANIZATIONAL CHANGE Takeover Markets New investment Leavers Customers Promotions Technology Competition New recruits Career moves Economics Legislation Suppliers .

• Employees feel threatened by the change. .BARRIERS TO CHANGE • The inertia within the organization. caused by the norms that have been operating over several years. resulting from the change may be better. Norms are shared values within the organization and they prevent its employees from accepting that a different set of values. Managers may also feel that the change will result in loss of control over some of their staff and a reduction in their status. • Employees may feel that they are no longer in control of their own career paths.

• Employees who are put into a new role by the change may feel that they would not be able to cope. • Past experience within the organization often determines future behaviour.BARRIERS TO CHANGE • There could be uncertainty about future roles. . Employees may feel that they would no longer have a meaningful job in the new organization.