LOGO

MANU 3318
Engineering Economics and
Management

INTRODUCTION TO THE PRINCIPLES

OF MANAGEMENT
Dress Code in IIUM

http://www.iium.edu.my/legaladviser/articles-4

3
 ENGINEERING MANAGEMENT
LOGO
‫اﻹدارة اﻟﮭﻧدﺳﯾﺔ‬
PENGURUSAN KEJURTERAAN

Engineers & Management

 MME 4272 Engineering
Management
Assessment:
Quiz 10%
Assignment 5%
Term Project 10%
Midterm exam 25%
Final exam 50%

Attendance:
Compulsory, students must have attended 80% of lectures in a
course in order to sit for the final exam.

Textbook:
Essentials of Contemporary Management, McGraw-Hill, New York, 7th
ed
 Course Materials

PowerPoint files can be found at

“https://classroom.google.com/
c/Mjc3Njc2MTYwNTda”

Class code: 7rao6nx

 Kabbashi, A. N

Professor KOE, BTE Dept since

2002
B. S. Textile Engineering
 Gezira University, Sudan
M.Sc. Systems Engineering, 1998
Ph.D. Env. Eng. 2002
 Objectives
At the end of this course, students
should be able to;
Provide concepts of engineering
management.
Explain human resource management,
leadership and motivation.
Apply the investment analysis
techniques, financial statement
procedure.
 Continue……….
To develop basic understanding of
financial management,
entrepreneurship and legal aspects.
Distinguish between technological
innovation and entrepreneurship
To introduce Islamic aspects of
management and finance
 Continue……
Define Managers And Management.
Explain What Managers Do.
Describe The Competencies Used In
Managerial Work And Assess Your
Current Competency Levels.
 Course Synopsis
a. This subject will generally focuses on Engineers
and strategy. Principles of management.
Management functions, Islamic concept of
management.
b. Behaviour of People in Organisations,
Organisational structures and change.
c. The subject will also clarify certain issues
pertaining to functions and activities of Human
Resource Management. Financial Management,
Investment decisions, Key marketing concepts,
Engineering and the legal aspects,
Entrepreneurship and Management of
Technological Innovation.
Engineering is based on application
of physics, chemistry, biology,
geology, mathematical and variety of
physical sciences aimed towards
solving specific applied problems.
Management involves the application
of psychology, sociology, economics,
statistics, accounting, finance and
marketing and production methods
 An Engineer and a Manager

 A woman in a hot air balloon realized she was

lost. She reduced altitude and spotted a man
below. She descended a bit more and
shouted, "Excuse me Sir, can you help me? I
don't know where I am, I had promised
someone, I should be there."
 The man below replied, "You're in a hot air
balloon hovering approximately 30 feet above
the ground. You're between 40 and 41
degrees north latitude and between 59 and
60 degrees west longitude."
 "You must be an Engineer", said the lady
balloonist.
An Engineer and a Manager
 "I am", replied the man.
 "How did you know that?"
 "Well", answered the lady in the
balloon, "Everything you told me is
technically correct, but I have no idea
what to make of your information.
 And the fact is I'm still lost. Frankly,
you've not been much help to me at
all. If anything, you've delayed my trip
even more."
 The engineer below responded, "You must
be in Top Management."
 "I am", replied the lady balloonist, "but,
how did you know that?"
 "Well", said the Engineer, "You don't know
where you are, or where you're going and
seem to be in your place due to lot of hot
air. You made a promise, which you've no
idea how keep and you expect people
beneath you to solve your problems. And
finally, you hold others responsible for the
plight you are in.
LOGO
Essentials of
Contemporary
Management

Chapter The Management

1
Process
 Learning Objectives
After studying the chapter, you should be
able to:
 Describe what management is, why management is
important, what managers do, and how managers
utilize organizational resources efficiently and
effectively to achieve organizational goals.
 Distinguish among planning, organizing,
leading, and controlling (the four managerial
functions), and explain how managers’ ability to
handle each one can affect organizational
performance.
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 Learning Objectives (cont’d)

 Differentiate among three levels of

management, and understand the
responsibilities of managers at different levels in
the organizational hierarchy.
 Identify the roles managers perform, the skills
they need to execute those roles effectively and
the way new information technology is affecting
these roles and skills.
 Discuss the principal challenges managers face in
today’s increasingly competitive global environment.

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 What Is Management?
Management
 The planning, organizing, leading, and controlling
of human and other resources to achieve
organizational goals effectively and efficiently.
Managers
 The people responsible for supervising the use of
an organization’s resources to meet its goals.
Resources are organizational assets
 People Skills Knowledge Information
 Raw materials Machinery Financial capital

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Efficiency, Effectiveness, and Performance in an
Organization

Figure 1.1
1–21
 Organizational Performance
Organizational Performance
 A measure of how efficiently and effectively
managers are using organizational resources to
satisfy customers and achieve goals.
Efficiency To do the things right!
 A measure of how well or productively resources
are used to achieve a goal.
Effectiveness To get the right things done!
 A measure of the appropriateness of the goals an
organization is pursuing and the degree to which
they are achieved.
1–22
 Why Study Management?

Proper management directly impacts

improvements in the well-being of a
society.
Studying management helps people to
understand what management is and
prepares them accomplish managerial
activities in their organizations.
Studying management opens a path to a
well-paying job and a satisfying career.

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Four Functions of Management

Figure 1.2

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 Managerial Functions
Henri Fayol
 First outlined the four managerial functions in his
book General Industrial Management.
 Managers at all levels in all organizations perform
each of the functions of planning, organizing,
leading, and controlling.

1–25
 Planning
Identifying and selecting appropriate
goals and courses of action for an
organization.
 The planning function determines how effective
and efficient the organization is and determines
the strategy of the organization.
Three Steps in the Planning Process:
 Deciding which goals to pursue.
 Deciding what courses of action to adopt.
 Deciding how to allocate resources.

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 Management Key Concepts
Organization
 People working together and coordinating their
actions to achieve specific goals.
Goal/objective
 A desired future condition that the organization
seeks to achieve.
Strategy c.f. policy
 A cluster of decisions about what goals to pursue,
what actions to take, and how to use resources to
achieve goals.

1–27
 Organizing
Structuring working relationships in a
way that allows organizational members
to work together to achieve
organizational goals.
Organizational Structure
 A formal system of task and reporting
relationships that coordinates and motivates
organizational members.
 Creating organizational structure:
• Grouping employees into departments according to
the tasks performed.
• Laying out lines of authority and responsibility for
organizational members.
1–28
 Leading
Articulating a clear vision to follow, and
energizing and enabling organizational
members so they understand the part
they play in attaining organizational
goals.
 Leadership involves using power, influence,
vision, persuasion, and communication skills.
 The outcome of leadership is highly motivated
and committed organizational members.

1–29
 Controlling
Evaluating how well an organization is
achieving its goals and taking action to
maintain or improve performance.
 Monitoring individuals, departments, and the
organization to determine if desired performance
standards have been reached.
 Taking action to increase performance as
required.
 The outcome of control is the ability to measure
performance accurately and to regulate the
organization for efficiency and effectiveness.
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 Types of Managers
 Levels of Management
 First-line managers
• Responsible for day-to-day operations. Supervise people
performing activities required to make the good or service.
 Middle managers
• Supervise first-line managers. Are responsible to find the best way
to use departmental resources to achieve goals.
 Top managers
• Responsible for the performance of all departments and have
cross-departmental responsibility.
• Establish organizational goals and monitor middle managers.
• Form top management team along with the CEO and COO.

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Levels of Management

Figure 1.3
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Relative Amount of Time That Managers
Spend on the Four Managerial Functions

Figure 1.4
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 IT and Managerial Roles and Skills
Information Technology (IT) is
increasingly used to help managers
adopt a cross-departmental view of their
organization.
Managerial Role
 The set of specific tasks that a person is expected
to perform because of the position he or she holds
in the organization.
Roles are defined into three role
categories (as identified by Mintzberg):
Interpersonal  Informational  Decisional

1–34
 Decisional Roles
 Roles associated with methods managers use
in planning strategy and utilizing resources:
 Entrepreneur—deciding which new projects or
programs to initiate and to invest resources in.
 Disturbance handler—managing an unexpected
event or crisis.
 Resource allocator—assigning resources
between functions and divisions, setting the
budgets of lower managers.
 Negotiator—reaching agreements between other
managers, unions, customers, or shareholders.
1–35
 Informational Roles
Roles associated with the tasks needed
to obtain and transmit information in the
process of managing the organization:
 Monitor—analyzing information from both the
internal and external environment.
 Disseminator—transmitting information to
influence the attitudes and behavior of employees.
 Spokesperson—using information to positively
influence the way people in and out of the
organization respond to it.

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 Interpersonal Roles
Roles that managers assume to provide
direction and supervision to both
employees and the organization as a
whole:
 Figurehead—symbolizing the organization’s
mission and what it is seeking to achieve.
 Leader—training, counseling, and mentoring high
employee performance.
 Liaison—linking and coordinating the activities of
people and groups both inside and outside the
organization/department.
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 Being a Manager

High Variety Fragmentation

Managerial
Problems

Brevity

Compensation to be a manager
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 Managerial Skills
Conceptual Skills What should be the right thing?

 The ability to analyze and diagnose a situation and

distinguish between cause and effect.
Human Skills
 The ability to understand, alter, lead, and control
the behavior of other individuals and groups.
Technical Skills How can we do better?

 The specific knowledge and techniques required

to perform an organizational role.

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Skill Types Needed by Managerial Level

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 Challenges for Management
in a Global Environment
Increasing Number of Global
Organizations.
Building a Competitive Advantage.
Maintaining Ethical Standards.
Managing a Diverse Workforce.
Utilizing IT and E-commerce.

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 Building a Competitive Advantage
Increasing Efficiency
 Reducing the quantity of resources used to
produce goods and services.
Increasing Quality
 Introducing Total Quality Management (TQM) to
improve quality.
Increasing Speed, Flexibility, and
Innovation
 Adapting to bring new products to market faster.
Increasing Responsiveness to Customers
 Empowering employees to deal with customers.
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Building Blocks of Competitive
Advantage

Figure 1.5
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 Maintaining Ethical Standards
Factors Influencing Behaviors:
 External pressures from
stockholders/stakeholders for increased
organizational financial performance.
 Internal pressures from top management to
lower-level managers to increase the
organization’s competitive performance and
profitability.
 Societal, cultural, and environment demands on
the organization.
Hurt somebody unintendedly vs. illegally
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 Managing a Diverse Workforce

The Increasing Diversity of the

Workforce
Non-Discriminatory Employment
Practices
Performance-Enhancing Benefits of a
Diverse Workforce

The opportunities for specialization

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 Utilizing Information Technology
(IT)
Benefits ofand E-commerce
IT and E-commerce
 Makes more and better information about the
organization available to outsiders
 Empowers employees at all organizational levels
 Helps managers carry out their roles more
effectively and efficiently
 Increases awareness of competitive
opportunities
 Makes the organization more responsive to its
customers

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LOGO

Thank You
Wassalam