Engineering Management

Engr. Niñoel B. Dela Cruz

MANAGEMENT

Is the art of getting things done through and with people in

formally organized groups. It is the art of creating the
environment in which people can perform as individuals and
yet cooperate towards attainment of group's goals. It is the
art of removing hindrances to high performance, a way of
optimizing efficiency to reach goals.
MANAGERIAL SKILLS

 Technical skills involve process or technique

knowledge and proficiency. Managers use the processes,
techniques and tools of a specific area skill.
 Human skills involve the ability to interact effectively
with people. Managers interact and cooperate with
employees.
 Conceptual skills involve the formulation of ideas.
Managers understand abstract relationships, develop
ideas and solve problems creatively.
 LEADERSHIP,
ENTREPRENUERSHIP AND
STRATEGY

 Leadership - Defined as the social and informal sources of

influence that you use to inspire action taken by others. It means
mobilizing others to want to struggle toward a common goal.

 Entrepreneurship - Entrepreneurship is defined as the

recognition of opportunities (needs, wants, problems, and
challenges) and the use or creation of resources to implement
innovative ideas for new, thoughtfully planned ventures.
 Strategy - Is the central, integrated, externally-oriented concept
of how an organization will achieve its objectives.
LEVELS OF MANAGEMENT
 Top Management
 Middle Management
 Lower Management (Supervisory Level)
Top Management
Top Management is the head of an organization. It consists
of the Board of Directors and the Chief Executive or
Managing Director. In the operation of an organization, top
management is the final source of authority. It establishes
policies, plans and objectives.
Middle Management

Middle management generally consists of heads of

functional departments. It is concerned with the task of
implementing the policies and plans laid down by the top
management. Also serves as link from the top management
to lower management.
Lower Management
(Supervisory Level)

Supervisory management is the lowest level in the

hierarchy of management. It consists of supervisors,
foremen, accounts officers, sales officers and so on. They
are directly concerned with the control of the performance
of the operative employees. They assign specific jobs to the
workers, evaluate their performance and report to the
middle level management.
 Types of Managers

line manager leads a function that contributes directly to the

products or services the organization creates.
Staff manager, in contrast, leads a function that creates
indirect inputs.
Project manager has the responsibility for the planning,
execution, and closing of any project.
General manager is someone who is responsible for
managing a clearly identifiable revenue-producing unit, such as
a store, business unit, or product line. General managers
typically must make decisions across different functions and
have rewards tied to the performance of the entire unit
P-O-L-C FRAMEWORK

 PLANNING.
 ORGANIZING
 LEADING
 CONTROLLING
PLANNING

Planning is the function of management that involves

setting objectives and determining a course of action for
achieving those objectives. Planning requires that
managers be aware of environmental conditions facing their
organization and forecas future conditions. It also requires
that managers be good decision makers.
There are many different types of
plans and planning:

Strategic planning involves analyzing competitive

opportunities and threats, as well as the strengths and
weaknesses of the organization, and then determining how
to position the organization to compete effectively in their
environment. Strategic planning has a long time frame,
often three years or more. Strategic planning generally
includes the entire organization and includes formulation of
objectives. Strategic planning is often based on the
organization‘s mission, which is its fundamental reason for
existence. An organization‘s top management most often
conducts strategic planning.
Tactical planning is intermediate-range (one to three
years) planning that is designed to develop relatively
concrete and specific means to implement the strategic
plan. Middle-level managers often engage in tactical
planning. Operational planning generally assumes the
existence of organization-wide or subunit goals and
objectives and specifies ways to achieve them.
Operational planning is short-range (less than a year)
planning that is designed to develop specific action steps
that support the strategic and tactical plans.
ORGANIZING

Organizing is the function of management that involves

developing an organizational structure and allocating
human resources to ensure the accomplishment of
objectives. The structure of the organization is the
framework within which effort is coordinated.
The structure is usually represented by an organization
chart, which provides a graphic representation of the chain
of command within an organization.
Decisions made about the structure of an organization are
generally referred to as organizational design decisions.
LEADING

Leading involves the social and informal sources of

influence that you use to inspire action taken by others. If
managers are effective leaders, their subordinates will be
enthusiastic about exerting effort to attain organizational
objectives. The behavioral sciences have made many
contributions to understanding this function of
management.
Personality research and studies of job attitudes provide
important information as to how managers can most
effectively lead subordinates.
For example, this research tells us that to become effective
at leading, managers must first understand their
subordinates‘ personalities, values, attitudes, and emotions.
 CONTROLLING

Controlling involves ensuring that performance does not

deviate from standards. Controlling consists of three steps,
which include (1) establishing performance standards, (2)
comparing actual performance against standards, and (3)
taking corrective action when necessary. Performance standards
are often stated in monetary terms such as revenue, costs, or
profits but may also be stated in other terms, such as units
produced, number of defective products, or levels of quality or
customer service.
The measurement of performance can be done in several ways,
depending on the performance standards, including financial
statements, sales reports, production results, customer
satisfaction, and formal performance appraisals. Managers at all
levels engage in the managerial function of controlling to some
degree.
 AIR TRANSPORT INDUSTRY
PRODUCERS:

MANUFACTURERS – Airframe/Engines, Mechanical Systems, Aircraft

Parts, Materials etc.

GOVERNMENT – Legislative Bodies, Regulatory Bodies, Customs,

Immigration.

AVIATION SERVICES – Insurance/Leasing/Sales, Distribution, Suppliers,

Aircraft Maintenance/Fuel and Oil, Consultants.

AIRLINES – Major/Regional/Charter, Operators/Air Cargo, General

Aviation Etc.

AIRPORT SERVICES – Major Airports, Maintenance/Catering, ATC

Services etc.
CONSUMERS

PASSENGERS – Human.

FREIGHT – Mail, Cargo Forwarders etc.

More definition

Legacy Airlines – more expensive and higher comfort

airlines.
Low Cost Carrier - is an airline that generally has lower
fares and fewer comforts.
Hub and Spoke Operation – large airport to smaller
airport operations.
Commonality - operating a standardized fleet of aircraft
that share common parts, training requirements, or other
characteristics.
Wet Lease - is a leasing arrangement whereby one airline
(lessor) provides an aircraft, complete crew, maintenance, and
insurance (ACMI) to an airline [or other type of business
acting as abroker of air travel] (the lessee), which pays by
hours operated.
Dry Lease - is a leasing arrangement whereby an aircraft
financing entity, such as GECAS and ILFC (lessor), provides an
aircraft without insurance, crew, ground staff, supporting
equipment, maintenance, etc.

AIRLINE FORECASTING
FORECAST - is the process of making statements about events
whose actual outcomes (typically) have not yet been
observed.
How are your heads?

Don’t Always look at your watch

Time will always pass.

But………

Will you?