Management and Organizations

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Engineering Management
Management and
Organizations
R-Jay P. Quiambao, CIE
References:
- Management
S. Robbins and M. Coulter
- Operations Management
W. Stevenson
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Introduction
Engineering
the profession in which a knowledge of the

mathematical and natural sciences gained by study,
experience, and practice is applied with judgment
to develop ways to utilize economically, the
materials and forces of nature for the benefit of
mankind. (Accreditation Board for Engineering and
Technology-ABET)
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Introduction
Management
the process of coordinating human, informational,
physical and financial resources to accomplish
organizational goals.

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Introduction
the supervision of groups of engineering researchers,
engineering functions, engineering design activities,
the application of quantitative methods and
techniques to the practice of management

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Introduction
management of engineering activities which are
characterized by technical complexities associated
with risks and uncertainties, special tools and
techniques which require unique skills, dynamic
environment (changes), and technology which is a
key element in an engineering organization

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Introduction
Challenges to Engineering Management
Complex tasks
Limited resources/resource competition
Changing technology
Obsolescence
Time-driven
Uncertainty and risks
Innovation and creativity/limited rewards
Matrix leadership
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Operations Management
Operations
The part of a business organization that is responsible for
producing goods or services
How can we define operations management?

The management of systems or processes that create goods
and/or provide services
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Operations Management (OM)

Activities that relate to the creation of goods and
services through the transformation of inputs to
outputs.
Scheduling of activities
Ordering & managing of supplies
Selecting & maintaining equipment
Motivating employees
Processing/assembly of products
Quality Control
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Goods or Services?
Goods are physical items that include raw materials,
parts, subassemblies, and final products.
Automobile
Computer
Oven
Shampoo
Services are activities that provide some combination

of time, location, form or psychological value.
Air travel
Education
Haircut
Legal counsel
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The Operations Function

Valueadded
Inputs
Land
Transformation/
Conversion
Process
Labor
Capital
Information
Feedback
Outputs
Goods
Services
Feedback
Control
Feedback
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Examples of Inputs, Transformation, and Outputs

INPUTS
Land
Human: Physical/ Intellectual
Capital
Raw Materials
Energy
Water
Metals
Wood
Equipment
Machines
Computers
Trucks
Tools
Facilities
Hospitals
Factories
Retail Stores
Others: Information/ Time
PROCESSES
Processes
Cutting, drilling
Transporting
Teaching
Farming
Mixing
Packing
Copying, faxing
OUTPUTS
High goods percentage
Houses
Automobiles
Clothing
Computers
Machines
Televisions
Food products
Textbooks
CD Players
High service percentage
Health care
Entertainment
Car repair
Delivery
Legal
Banking
Communication
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Examples of Inputs, Transformation, and Outputs

FOOD
PROCESSOR
INPUTS
Raw vegetables
Metal sheets
Water
Energy
Labor
Building
Equipment
HOSPITAL
INPUTS
Doctors, nurses
Hospital
Medical supplies
Equipment
Laboratories
PROCESSING
Cleaning
Making cans
Cutting
Cooking
Packing
Labelling
PROCESSING
Examination
Surgery
Monitoring
Medication
Therapy
OUTPUT
Canned vegetables
OUTPUT
Healthy Patients
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Illustration of the transformation process

TYPES OF
OPERATION
EXAMPLES
Goods Producing
Farming, mining, construction, manufacturing, power

generating
Storage/
Transportation
Warehousing, trucking, mail service, moving, taxis, buses,

hotels, airlines
Exchange
Retailing, wholesaling, financial advising, renting or leasing,

library loans, stock exchange
Entertainment
Films, radio, television, plays, concerts, recording
Communication
Newspapers, radio & TV newscasts, telephone, satellites,

internet
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Who Are Managers?

Manager
someone who coordinates and oversees the work of
other people so that organizational goals can be
accomplished. (Robbins and Coulter, 2012)

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Classifying Managers
First-line Managers
Lowest level of management

Individuals who manage the work of non-managerial
employees who typically are involved with producing
the organizations products or servicing the
organizations customers
Title Examples: supervisors, shift managers, or
department/office managers
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Middle Managers
Individuals who manage the work of first-line
managers and can be found between the lowest and
top levels of the organization
Title Examples: regional manager, project leader,
plant manager, or division manager

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Top Managers
Individuals who are responsible for making
organization-wide decisions and establishing plans
and goals that affect the entire organization.
Title Examples: executive vice president, president,
managing director, chief operating officer, or chief
executive officer

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Levels of Management

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Where do managers work?

Organization
A deliberate arrangement of people to accomplish
some specific purpose (that individuals
independently could not accomplish alone)
Common Characteristics of Organizations

Have a distinct purpose (goal)

Composed of people
Have a deliberate structure
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Characteristics of Organizations
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The Changing Organization

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Management: An art or a science?

Management is an art: when it refers to the
human aspect e.g. social behavior, sensitivity,
creativity, varying response to changes
Management is a science: because it is based on
a body of knowledge or principles

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What Is Management?
Management
Involves coordinating and overseeing work activities
of others so that their activities are completed
efficiently and effectively (Robbins and Coulter, 2010)

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Managerial Concerns
Efficiency: refers to the relationship between
inputs and outputs
Managers deal with scarce input resources (people,
money, equipment) and the concern is efficient use
of these resources doing things right and not
wasting resources; getting things done
Effectiveness: refers to the achievement of

organizational goals ; doing the right things
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Effectiveness and Efficiency in Management

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What Do Managers Do?

Henri Fayol, a French businessman, first proposed in
the early part of the 20th century that all managers
perform five functions:
Planning
Organizing
Commanding
Coordinating
Controlling
Today, these functions have been condensed to four:

planning, organizing, leading, and controlling
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Management Functions (Functional Approach)
Planning
Defining goals, establishing strategies to achieve goals,
developing plans to integrate and coordinate activities.
Organizing
Arranging and structuring work to accomplish

organizational goals.
Determining what needs to be done, how it will be done,
and who is to do it
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What Do Managers Do? (contd)

Management Functions (Functional Approach)
Leading
Working with and through people to accomplish goals.
Motivating, leading, and any other actions involved in
dealing with people
Controlling
Monitoring, comparing, and correcting work.

Monitoring activities to ensure that they are accomplished
as planned
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Management Functions

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Henry Mintzberg
a well-known management researcher, studied actual
managers at work
concluded that what managers do can best be described by
looking at the managerial roles they engage in at work
Managerial roles
refers to specific actions or behaviors expected of and

exhibited by a manager
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Management Roles Approach (Henry Mintzberg)
Interpersonal roles
involve people (subordinates and persons outside the
organization) and other duties that are ceremonial and
symbolic in nature
Figurehead
symbolic head; performs routine duties of legal or social nature
Leader
motivation of subordinates, staffing, and training
Liaison
maintains self-developed network of outside contacts
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Informational roles
involve collecting, receiving, and disseminating information
Monitor
seeks and receives wide variety of internal and external information to
develop thorough understanding of organization and environment
Disseminator
transmits information received from outsiders or from subordinates to
members of the organization
Spokesperson
transmits information to outsiders on organizations plans, policies, actions,
results, etc.
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Decisional roles
entail making decisions or choices
Entrepreneur
searches organization and its environment for opportunities and initiates

improvement projects
Disturbance handler
responsible for corrective action when organization faces important

unexpected disturbances
Resource allocator
allocates of organizational resources
Negotiator
represents the organization at major negotiations
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What Managers Actually Do (Mintzberg)?

Interaction
with others
with the organization
with the external
context of the
organization
Reflection
thoughtful thinking
Action
practical doing
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New Model of Managing

Henry Mintzberg
Basically, managing is about influencing action. Its
about helping organizations and units to get things
done, which means action.
Three Ways
(1) by managing actions directly (for instance, negotiating

contracts, managing projects, etc.),
(2) by managing people who take action (for example,
motivating them, building teams, enhance the
organizations culture, etc.), or
(3) by managing information that propels people to take
action (using budgets, goals, task delegation, etc.).
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The manager at the center of the model has two
rolesframing, which defines how a manager
approaches his or her job; and scheduling,
which brings the frame to life through the
distinct tasks the manager does.

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A manager enacts these roles while managing
action in the three planes: with information,
through people, and sometimes by taking action
directly.

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Skills Approach (proposed by Robert L. Katz)
Technical skills
the job specific knowledge and techniques needed to

proficiently perform work tasks.
These skills tend to be more important for first-line
managers because they typically are managing employees
who use tools and techniques to produce the organizations
products or service the organizations customers.
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Skills Approach (proposed by Robert L. Katz)
Human skills
the ability to work well with other people
Conceptual skills
the ability to think and conceptualize about abstract and

complex situations concerning the organization
managers see the organization as a whole, understand the
relationships among various subunits, and visualize how the
organization fits into its broader environment
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Skills Needed at Different Management Levels
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Conceptual Skills
Using information to solve business problems
Identifying of opportunities for innovation
Recognizing problem areas and implementing
solutions
Selecting critical information from masses of data
Understanding of business uses of technology

Understanding of organizations business model
Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.
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Communication Skills
Ability to transform ideas into words and actions
Credibility among colleagues, peers, and
subordinates
Listening and asking questions
Presentation skills; spoken format
Presentation skills; written and/or graphic formats

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Effectiveness Skills
Contributing to corporate mission/departmental
objectives
Customer focus
Multitasking: working at multiple tasks in parallel
Negotiating skills
Project management
Reviewing operations and implementing

improvements
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Effectiveness Skills (contd)

Setting and maintaining performance standards
internally and externally
Setting priorities for attention and activity
Time management

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Interpersonal Skills (contd)

Coaching and mentoring skills
Diversity skills: working with diverse people and
cultures
Networking within the organization
Networking outside the organization
Working in teams; cooperation and commitment

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Management Skills and Management Function Matrix

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How The Managers Job Is Changing

The Increasing Importance of Customers
Customers: the reason that organizations exist
Managing customer relationships is the responsibility of all
managers and employees.
Consistent high quality customer service is essential for
survival.

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The Increasing Importance of Innovation
Doing things differently, exploring new territory, and
taking risks
Managers should encourage employees to be aware of and
act on opportunities for innovation.

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Importance of Sustainability to the Managers
Job
Sustainable Development
Sustainability
a companys ability to achieve its business goals and

increase long-term shareholder value by integrating
economic, environmental, and social opportunities into its
business strategies
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Changes
Impacting
the
Managers
Job
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Why Study Management?

The Value of Studying Management
The universality of management
Good management is needed in all organizations.
The reality of work

Employees either manage or are managed.
Rewards and challenges of being a manager

Management offers challenging, exciting and creative opportunities for

meaningful and fulfilling work.
Successful managers receive significant monetary rewards for their
efforts.
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Universal Need for Management

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Rewards and Challenges of Being A Manager

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Basic Case Format
Time Context
Viewpoint
Relevant Facts
Problem Statement (Issue/s)
Alternative Courses of Actions (Options)
Analysis and Evaluation of the Alternative
Courses of Actions
Conclusion and Recommendation (Decision)

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R-Jay P. Quiambao, CIE

the profession in which a knowledge of the

[1] Management and Organizations

R-Jay P. Quiambao, CIE

R-Jay P. Quiambao, CIE

R-Jay P. Quiambao, CIE

R-Jay P. Quiambao, CIE

How can we define operations management?

Operations Management (OM)

R-Jay P. Quiambao, CIE

[1] Management and Organizations

Services are activities that provide some combination

[1] Management and Organizations

The Operations Function

Examples of Inputs, Transformation, and Outputs

R-Jay P. Quiambao, CIE

[1] Management and Organizations

Examples of Inputs, Transformation, and Outputs

R-Jay P. Quiambao, CIE

[1] Management and Organizations

Illustration of the transformation process

R-Jay P. Quiambao, CIE

Farming, mining, construction, manufacturing, power

Warehousing, trucking, mail service, moving, taxis, buses,

Retailing, wholesaling, financial advising, renting or leasing,

Films, radio, television, plays, concerts, recording

Newspapers, radio & TV newscasts, telephone, satellites,

[1] Management and Organizations

Who Are Managers?

R-Jay P. Quiambao, CIE

R-Jay P. Quiambao, CIE

Lowest level of management

[1] Management and Organizations

R-Jay P. Quiambao, CIE

R-Jay P. Quiambao, CIE

R-Jay P. Quiambao, CIE

Where do managers work?

Common Characteristics of Organizations

Have a distinct purpose (goal)

R-Jay P. Quiambao, CIE

The Changing Organization

R-Jay P. Quiambao, CIE

Management: An art or a science?

R-Jay P. Quiambao, CIE

R-Jay P. Quiambao, CIE

R-Jay P. Quiambao, CIE

Effectiveness: refers to the achievement of

Effectiveness and Efficiency in Management

R-Jay P. Quiambao, CIE

What Do Managers Do?

R-Jay P. Quiambao, CIE

Today, these functions have been condensed to four:

What Do Managers Do?

R-Jay P. Quiambao, CIE

Arranging and structuring work to accomplish

[1] Management and Organizations

What Do Managers Do? (contd)

Monitoring, comparing, and correcting work.

[1] Management and Organizations

R-Jay P. Quiambao, CIE

What Do Managers Do?

refers to specific actions or behaviors expected of and

[1] Management and Organizations