1BES-16b Engineering Management (Discussion date: August 22, 2022)

Introduction:
Engineers are expected to perform a variety of tasks depending on the field of specialization and
skills. According to Henry Gantt, it is necessary for an engineer to manage the
Five (5) human resources namely:
1. Manpower
2. Money
3. Machines
4. materials and time as well as the proper, efficient and effective utilization of these
resources with minimal cost and for a short period of time. Engineers are often faced with
responsibilities requiring outputs that depend on the individual's accomplishments of
subordinates. Managing is one of the most challenging tasks of an engineer to beprepared
for it will utilize the techniques and skills of people doing work activities.

The Field of Engineering Management

• Engineering discipline deals with the design, construction, maintenance of the physical
and naturally built environment which includes work activities that needs to be manage.
• Engineering Management as one of the important tool of an engineer to undergo or
execute some project or develop materials which are productive to humanity in our
society. Engineer must guide their subordinate and be a good leader in the
implementation of project to motivate the worker to obtain goals to a certain objectives.
Five (5) Basic Elements of Engineering Management
1. To forecast and plan
2. To organize
3. To command
4. To coordinate
5. To control
Five (5) Fundamentals of Project Management Cycle
1. Project redevelopment and screening
2. Project development and design

1|Page
 3. Project Appraisal, Negotiation and Approval Project Implementation

Personalities in Engineering Management

1. Frederick Taylor
is Popularly known as the father of Scientific Management. which also came to be known as
“Taylorism.” Taylor believed that it was the role and responsibility of manufacturing plant
managers to determine the best way for the worker to do a job, and to provide the proper tools
and training.
2. Henri Fayol,
a French Engineer, whose ideas in doing work activities are consonance with the present trends
and modern time. He is called the Father of Modern Management.
3. Henry Gantt,
who emphasized the importance of time and cost in planning and controlling work activities. His
ideas are in full accordance with the concepts of Engineering Management for the efficient and
effective use of manpower, money, materials, machine and time. He developed the Gantt Chart
which is a management technique for management information. The Gantt Chart before was very
popular and utilized by Engineers in scheduling project work activities, however, withthe
development of PERT/PM System the Gantt Chart became obsolete in scheduling work activities.
4. Mark Parker Follet, whose direction and emphasis is on the importance and value of human
relations to the basic principles of organization.

The Functions of the Engineer

Since prehistoric times, mankind has benefited from its tools, equipment, and projects
developed by engineers these are the following:
• The stone blade axe which was a very useful tool; and the irrigation system used to
promote crop growing (6000 3000 B.C.)
• The pyramids of Egypt – (3000 to 600 B.C.)
• Roadbuilding by the Romans – (600 B.C. to A.D. 400)
• The production of paper and gunpowder by the Chinese (100 A.D. to 1600 A.D.)
• The production of steam engines and the spinning and moving machines (1601 A.D.
to1700 A.D.)

2|Page
 Specifically, the functions of engineering encompass the following areas:
1. Research - where the engineer is engaged in the process of learning about nature and
codifying this knowledge into usable theories.
2. Design and development - where the engineer undertakes the activity of turning a
product concept to a finished physical item. Design for manufacturability and value
engineering teams (a feature of some companies) are charged with improvement of
designs and specifications at the research, development, design and production stages
of product development.
3. Testing - where the engineer works in a unit where new products or parts are tested for
workability.
4. Manufacturing - where the engineer is directly in charge of production personnel or
assumes responsibility for the product.

Engineers are currently producing solutions to many of the difficulties faced by mankind, much.
Their outputs, new or improvements of old ones are very much needed in the following specific
problem concerns:
1. The production of more food for a fast growing world population
2. The elimination of air and water pollution;
3. Solid waste disposal and materials recycling;
4. The reduction of noise in various forms;
5. Supplying the increasing demand for energy;
6. Supplying the increasing demand for mobility;
7. Preventing and solving crimes; and 8. Meeting the increasing demand for
communication facilities.

3|Page
 BES-16b Engineering Management (Discussion date: )
Engineering Management
What is Engineering Management? Engineering management relate to the activity combining
knowledge with the "technical ability to organize and coordinate worker power, materials,
machinery, and money.”
The top position an engineer manager may hope to occupy is the general managership or
presidency of any firm. large or small. As he scales the management ladder, he finds that the
higher he goes up, the less technical activities he performs, and the more management tasks he
accepts. In this case, it is but proper that the management courses be well understood by the
engineer manager.

The Engineer in Various Types of Organization

Classification according to the degree of engineering jobs:

• Level One - with minimal engineering jobs like retailing firms

• Level Two - with a moderate degree of engineering jobs like. transportation companies
• Level Three - with a high degree of engineering jobs like construction firms

1. Engineers have slim chance to become general manager or president, unless he owns the
firm. engineer manager may be assigned as head of a small engineering unit of the firm.
If it is very small there will not have this unit.
2. In level two firm, engineer may be assigned to head the engineering division. Need for
management skills will now be felt by the engineer manager.
3. 3. Level three firms provide the biggest opportunity for an engineer to become the
president or general manager, he cannot function effectively without adequate
management skills.
Definition of Management
Definition of Management It is defined as the "creative problem solving-process of planning,
organizing, leading, and controlling an organization's resources to achieve its mission and
objectives.”

Requirements For the Engineer Manager's Job

• A bachelor’s degree in engineering from a reputable school: In some cases. a master’s

degree engineering or business management is required

4|Page
 • a few years’ experience in a pure engineering job;
• Training in supervision; special training in engineering management
The Process of Management Consist of:

• Planning
• Organizing
• Directing/Leading
• Controlling

How One May Become a Successful Engineer Manager

Kreitner indicates at least three general preconditions for achieving lasting success as a manager.
They are as follows:

• Ability
• Motivation to manage, and
• Opportunity

1. Ability
Managerial abilty refers to the capacity of an engineer manager to achieve organizational
objectives effective and efficiently.

2. Motivation to Manage
Many people have the desire to work and finish specilc tasks assigned by superiors, but
not many are motivated to manage people so that they may contribute to the realization
of the organization's objectives.

3. Opportunity
Successful managers become possible only if those having the ability and motivation are
given the opportunity manage. The opportunity for successful management has two
requirements:
• Obtaining a suitable managerial job, and
• Finding a supportive climate once on the job
Summary:
Engineers are known for their great contributions the development of the world's civilization.
There are many areas where their presence necessary like research, design and development,
testing, manufacturing, construction, sales consulting, Government, teaching, and management

5|Page
 Engineers may be found contributing their share in the Various levels of organization. Engineering
activities need to be managed and engineers are sometimes placed in positions where they must
learn management skills.
Management is concerned with planning, organizing, leading and controlling an organization's
resources to achieve its mission and objectives There are certain qualifications required of the
engineer manager.
One may become a successful engineer manager if the preconditions of ability, motivation to
manage and opportunity to manage are met.

Decision - Making

• Good Decisions provide the right environment for continuous growth and success of any
organized effort

Decision-making
Is the process of identifying and choosing alternatives based on the values, preferences and
beliefs of the decision-maker.
• Decision-making is defined as the process of identifying and choosing alternative courses of
action in a manner appropriate to the demands of the situation.

• Decisions are made at various management levels and at various management functions.
• Decision-making according to Nickels and others is "the heart of all the management

Decision-Making Process
1. Diagnose problem
2. Analyze environment
3. Articulate problem or opportunity
4. Develop viable alternatives
5. Evaluate alternatives
6. Make a choice
7. Implement decision
8. Evaluate and Adapt decision result

• "Identification of the problem is tantamount to having the problem half-solved."

• What is a Problem? A problem exists when there is a difference between an actual situation
and a desired situation.

6|Page
 • Diagnosing the problem requires identifying hypotheses and testing them, identified all the
possible root causes of the problem, summarize them in a set of hypotheses, prioritize their
analysis, conduct the analysis using a hypothesis map, and synthesize your conclusions.
Analyze the Environment
The objective of environmental analysis is the identification of constraints, which may be spelled
out as either internal or external limitations Components of the Environment:
1. Internal
2. External

Internal Environment
• Refers to organizational activities within a firm that surrounds decision-making.
• Example of internal limitations:
1. Limited funds available for the purchase of equipment
2. Limited training on the part of employees
3. Ill-designed facilities

INTERNAL ENVIRONMENT
Organizational Aspects
like org. structure, policies,
procedures, rules, ability of
management, etc. External Environment
Marketing Aspects
like product strategy.
promotion strategy, etc. Decision
Personnel Aspects
like recruitment practices,
incentive systems, etc. External Environment
Production Aspects like plant
facility layout. inventory
control, etc. Financial Aspects
like liquidity, profitability, etc.

Engineering Firm
• Government
• Labor Unions
• Supplies
• Banks

7|Page
 • Public
• Competitors
• Clients
• Engineers
Develop Viable Alternatives
1. Prepare a list of alternative solutions.
2. Determine the viability of each solution.
3. Revise the list by striking out those which are not viable.

• A problem may be solved by any of the solutions offered. The best among the alternative
solutions must be considered by the management. This is made possible by using a procedure
with the following steps:

Example:
An engineering firm has a problem of increasing its output by 30%. This is the result of a new
agreement between the firm and one of its clients. The list of solutions prepared by the
engineering manager shows the following alternative courses of action:
1. Improve the capacity of the firm by hiring more workers and building additional facilities
2. Secure the services of subcontractors
3. Buy the needed additional output from another firm
4. Stop serving some of the company's customers
5. Delay servicing some clients

Evaluate Alternatives
• After determining the viability of the alternatives and a revised list has been made, an
evaluation of the remaining alternatives is necessary. This is important for making a choice,
Proper evaluation makes choosing the right solution less difficult.
• how the alternatives will be evaluated will depend on the nature of the problem, the
objectives of the firm, and the nature of alternatives presented. Souder suggests that "each
alternative must be analyzed and evaluated in terms of its value cost and risk characteristics*

Make a choice
• Choice-making refers to the process of selecting among alternatives representing
potential solutions to a problem.
• "Particular effort should be made to identity all significant consequences of each
choice*

8|Page
 • To make the selection process easier, the alternatives can be ranked from best to worst
on the basis of some factors like benefit, cost, or risk.

Implement decision
• Implementation refers to carrying out the decision so that the objectives sought will
be achieved.
• To make implementation effective, a plan must be devised.
• According to Aldag and Stearns, those who will be involved in implementation must
understand and accept the solution.

Evaluate and Adapt Decision Result

• In implementing the decision, the results expected may or may not happen. Il is therefore,
important for the manager to use control and feedback mechanisms to ensure results and
to provide information for future decisions.
• Feedback refers to the process which requires checking at each stage of the process to
assure that the alternatives generated, the criteria used in evaluation, and the solution
selected for implementation are in keeping with the goals and objectives originally
specified.
• Control refers to actions made to ensure that activities or goals, that have been set.

Approaches in Solving Problems

• In decision-making, the engineer manager is faced with problems which may either
be simple or complex. To provide him with some guide, he must be familiar with the
following approaches:
1. Qualitative evaluation
2. Quantitative evaluation
Qualitative Evaluation
• This term refers to evaluation of alternatives using intuition and subjective
judgement.
• Stevenson states that managers tend to use the qualitative approach when:
1. The problem is fairly simple.
2. The problem is familiar

9|Page
 3. The costs involved are not great
4. Immediate decisions are needed.

Quantitative Evaluation
• this term refers to the evaluation of alternatives technique in a group classified as rational
and analytical
Quantitative models:
1. inventory models
2. Queuing theory
3. Network models
4. Forecasting
5. Regression Analysis
6. Simulation
7. Linear programming
8. Sampling theory
9. Statistical decision theory

Inventory Models
• Inventory models consist of several types all designed to help the engineer manager make
decisions regarding inventory.
1. Economic order quantity model
Used to calculate the number of items that should be ordered at one time to
minimize the total yearly cost of placing orders and carrying the items in inventory.
2. Production order quantity model
this is an economic order quantity technique applied to production orders.
3. Back-order inventory model
this is an inventory model used for planned shortages.
4. Quantity discount model
an inventory model used to minimize the total cost when quantity discounts are
offered by suppliers.
Queuing theory
• the queuing theory is one that describes how to determine the number of service units
that will minimize both customers waiting time and cost of service.

10 | P a g e
 • The queuing theory is applicable to companies where waiting lines are a common
situation.

Forecasting
• Forecasting may be defined as "the collection of past and current information to make
predictions about the future*

Regression Analysis
• The regression model is a forecasting method that examines the association between
two or more variables. It uses data from previous periods to predict future events.
• Regression analysis may be simple or multiple depending on the number of
independent variables present. When one independent variable is involved, it is called
simple regression; when two or more independent variables are involved, it is called
multiple regression.
Simulation
• Simulation is a model constructed to represent reality, on which conclusions about real-
life problems can be used.
• It is highly sophisticated tool by means of which the decision maker develops a
mathematical model of the system under consideration.
• Simulation does not guarantee an optimum solution, but it can evaluate the evaluate the
alternatives fed into the process by the decision-maker.
Sampling Theory
• Sampling theory is a quantitative technique where samples of populations are statistically
determined to be used for a number of processes, such as quality control and marketing
research.
• When data gathering is expensive, sampling provides an alternative. Sampling, in etfect,
saves time and money.

Statistical Decision-Theory
• Decision theory refers to the rational way to conceptualize, analyze, and solve problems
in situations involving limited or partial information about the decision environment.
Bayesian Analysis

11 | P a g e
 • A statistical procedure which endeavors to estimate parameters of an underlying
distribution

Summary:
Decision making is a very important function of an engineer manager. His organization will
rise or fall depending on the outcomes of his decisions, It is therefore, necessary for the
engineer manager to develop skills in decision making. The process of identifying and
choosing alternative courses of action in a manner appropriate to the demands of the
situation. is called decision making, it is done at various management levels and functions,
The decision process consists of various steps, namely: diagnose the problem, analyze
environment, articulate problem or opportunity, develop viable alternatives, make a choice,
implement decision, evaluate and adaptdecision rules. There are two approaches in solving
problems, namely: qualitative evaluation andquantitative evaluation. Qualitative evaluation
is used for solving fairly simple problems, while quantitative evaluation is applied to complex
one.

12 | P a g e
ENGINEERING MANAGEMENT (OCTOBER 3, 2022)

Planning

• is the process of thinking about the activities required to achieve a desired goal.
(Wikipedia)

• A basic management function involving formulation of one or more detailed plans to

achieve optimum balance of needs or demands with the available resources.

The Planning Process

(1) identifies the goals or objectives to be achieved

(2) formulates strategies to achieve them,

(3) arranges or creates the means required, and

(4) Implements, directs, and monitors all steps in their proper sequence.

• According to Nickels and others... "the management function that involves

anticipating future trends and determining the best strategies and tactics to achieve
organizational objectives."

• According to Aldag and Stearns. "the selection and sequential ordering of task
required to achieve an organizational goal."

• According to Cole and Hamilton... "deciding what will be done, who will do it, where,
when and how it will be done, and the standards to which it will be done.

The 3 characteristics of planning

1. Planning involves the future,
2. Planning requires action
3. There must be a personal or organizational identification

13 | P a g e
Specific Task of Planning
1. Defining goals and establishing their priorities
2. Stating and implementing policies which direct work activities to planned targets
3. Forecasting future events which can affects accomplishment of work
4. Making the plans operational through detailed work activities and budgeting

Objectives in planning
1. To offset uncertainty and change
2. To focus attention to planned targets
3. To gain economical and efficient operation
4. To facilitate control

Nature of Planning

A Continuous Function
is considered as
Primary of Planning Intellectual Activity continuous function
Planning is referred to referred as an management since
as the primary intellectual process strategies are often
function of for decision making
revised in the light
management. and such.
of changing
environment.

For All Managerial

Planning is Flexible
Planning selects the Functions Planning
best alternatives is no exception from
based on certain all levels and all
assumptions departments of an
organization

Planning at Various Management Levels

1. Top Management Level - Strategic Planning

2. Middle Management Level – Intermediate Planning

3. Low Management Level – Operational Planning

14 | P a g e
Top Management Level

Strategic Planning

• Process of determining the major goals of the organization and the policies and
strategies for obtaining and using resources to achieve those goals.

• The whole company is considered, specifically the objectives and current resources

• The output of the strategic planning is the strategic plan which is the decision about
the long-range goals and the course of action to achieve these goals.

Strategic planning

the process of deciding the planned targets of the organizations, the resources needed to
attain planned targets, the policies that governs the acquisition, and the use and disposition
of these resources.

Activities in Strategic Planning

1. Choosing company planned targets

2. Planning the organization

3. Setting personal, financial and marketing policies

Intermediate Planning or management control

the process by which the manager assures that resources are obtained and used effectively
and efficiently in the accomplishment of planned targets.

Activities in Management control

1. Formulating budgets

2. Planning staff line

3. Formulating personnel practices

4. Working capital expenditures

15 | P a g e
 5. Deciding on plant rearrangement

6. Deciding routine expenditures

Middle Management Level

• Intermediate planning

Process of determining the contributions that subunits can make with allocated resources

• Operation Planning

Process of determining how specific tasks can best be accomplished on time with available
resources

• Operational Planning

the process of assuring that specific projects are carried out effectively and efficiently.

Activities in Operational Planning

1. Controlling hiring

2. Monitoring the implementation of policies

3. Controlling credit extension

4. Scheduling production

Planning Process

• Setting organizational, divisional, or unit goals or simply setting GOALS.

• Goals may be defined as the precise statement of results sought, quantified in time and
magnitude, where possible.

The Planning Process

2. Developing Strategies or Tactics to Reach Goals

• Strategies may be defined as a course of action aimed at ensuring that the organization will
achieve its objectives.

16 | P a g e
• Tactic is a short-term action taken by management to adjust to negative internal or external
influences.

3. Determine the Resources Needed

To satisfy strategic requirements, a general statement of needed resources will suffice.

4. Setting Standards

Standards may be defined as a quantitative or

qualitative measuring device designed to help monitor the performances of people, capital
goods, or processes.

Functional Area Plans

1. Marketing Plan - written document or blueprint for implementing and controlling an

organization's marketing activities related to a particular marketing strategy.

2. Production Plan - written document that states the quantity of output a company must
produce in broad terms and by product family

3. Financial Plan - summary of the current financial situation of a firm, analyzes financial
needs, and recommends a direction for financial activities

4. Human Resources Management Plan - indicates the human resource needs of a company
detailed in terms of quality and quantity and based on the requirements of the company's
strategic plan

17 | P a g e
 Parts of the Various Functional Area Plans

Contents of Marketing Plan (as proposed by William Cohen)

Executive Summary - overall view of the marketing project and its potential

• Table of Contents

• Situational Analysis and Target Market

• Marketing Objectives and Goals

• Marketing Strategies

• Marketing Tactics

• Schedules and Budgets

• Financial Data and Control

Contents of a Production Plan

1. Amount of capacity the company must have

2. Number of employees required

3. Quantity of materials to be purchased

Contents of Financial Plan

1. Analysis of the firm's current financial condition or financial status

2. Sales forecast

3. Capital budget

4. Cash budget

5. Set of pro forma (or projected) financial statements

6. External financing plans

18 | P a g e
Contents of the Human Resources Plan

1. Personnel requirements

2. Plans for recruitment and selection

3. Training plan

5. Retirement plan

Plans According to Frequency of Use

Standing Plans - plans that are used repeatedly and focus on managerial situations

Classifications

a. Policies - broad guidelines to aid managers at every level in making decisions about
recurring situations or functions

b. Procedures - describe the exact series of actions to be taken in a given situation

Plans with Time Horizon

1. Short-range Plans - plans intended to cover a period less than one year.

2. Long-range Plans - plans covering a time span of more than one year

Plans According to Frequency of Use Classifications

C. Rules - statements that either require to forbid a certain action

2. Single-Use Plans - specifically developed to implement courses of action that are

relatively unique and are unlikely to be repeated Classifications

D. Budgets - "a plan which sets forth the projected expenditure for a certain activity and
explains where the required funds will come from" (Weston and Brigham)

19 | P a g e
Plans According to Frequency of Use

Classifications:

b. Programs - designed to coordinate a large set of activities

c. Projects - usually more limited in scope than a program and is sometimes prepared to
support a program

Parts of the Strategic Plan

1. Company or corporate mission

2. Objectives or Goals

3. Strategies

Making Planning Effective

Planning may be successful in the following:

• recognize the planning barriers

• use of aids to planning

Planning Barriers

According to Plunkett and Attner

1. manager's inability to plan

2. Improper planning process

3. Lack of commitment to the planning process

4. Improper information

5. Focusing on the present at the expense of the future

20 | P a g e
Recognizing the Planning Barriers

According to Plunkett and Attner

6. Too much reliance on the planning department

7. Concentrating on only the controllable variables

Use of Aids to Planning

1. Gather as much information as possible

2. Develop multiple sources of information

4. Involve others in planning process

Technical activities, like other activities require

effective planning, i.e., if objectives and goals are to be realized.

A plan is a methodological way of achieving results. Planning is undertaken at various

management levels. Various steps are required in the planning process depending on the
management level

Assignment:

Why is planning an important activity for engineer managers?

• Item for Research

1. Interview the General Manager of a construction firm Inquire about the planning
activities undertaken by the firm. Prepare a report about the result of the interview.

21 | P a g e
 REASONS FOR ORGANIZING

Organizing is undertaken to facilitate the implementation of effective organizing, steps are

undertaken to breakdown the into more manageable man size jabs. Doing these will make it
po to assign particular tasks to particular persons, in turn, these will facilitate the assignment
of authority, responsibility, accountability for certain functions and tasks.

ORGANIZING DEFINED

Organizing is a management function which refers "the structuring of resources and activities
to accomplish objectives in an efficient and effective manner." The arrangement or relationship
of positions withinorganization is called the structure. The result of the organizing process is
the structure.

THE PURPOSE OF THE STRUCTURE

It defines the relationship between tasks and authority for individuals and departments, it
defines formal reporting relationships, the number of levels in the hierarchy of the
organization, and the span of control. it defines the groupings of individuals into departments
and departments into organization. it defines the system to effect coordination of effort in both
vertical (authority) and horizontal (tasks) directions.

When structuring an organization, the engineer manager must be concerned the following:

1. Division of labor - determining the scope of work and how it is combined in a jab.

2. Delegation of authority - the process of assigning various degrees of decision-making authority

to subordinate.

3. Departmentation - the grouping of related jobs, activities, or processes into major organizational
subunits,

4. Span of control - the number of people who report directly to a given manager.

5. Coordination - the linking of activities in the organization that serves to achieve common goal or
objective,

THE FORMAL ORGANIZATION

The formal organization is "the structure that details lines of responsibilities authority, and
position." It is "the planned structure" and it "represents the deliberate attempt to establish
patterned relationships among components that will meet the objectives effectively".

22 | P a g e
The formal structure is described by management through.

1. Organization chart

2. Organizational manual and

3. Policy manuals

INFORMAL GROUPS

There are instances when members of an organization spontaneously form a group with
friendship as principal reason for belonging. This group is called an informal group. It is not a
part of the formal organization, and it does not have a formal performance purpose.

The informal organization, useful as it is, is "vulnerable to expediency, manipulation, and

opportunism, " according to Valentine. Its low visibility, Valentine added, makes it "difficult for
management to detect these perversions, and considerable harm can be done to the
company."

TYPES OF ORGANIZATIONAL STRUCTURE

1. Functional organization this is a form of departmentalization in which everyone engaged

in one functional activity' such as engineering on marketing, is grouped into one unit.

2. Product or market organization this refers to the organization company by divisions that
brings together all those involved with certain type of product or customer.

3. Matrix organization an organizational structure in which each employee reports to both

a functional or division manager and to project or group manager.

Types of Authority

1. Line authority - a manager's right to the subordinates what to do and then see that they
do it. Line departments perform tasks that reflect the organization primary goal and
mission. In a construction firm department that negotiates and secures contracts for the
firm is a line department. The construction division is also a line function.

2. Staff authority - a staff specialist's right to give advice to a superior Staff department
include all those that provide specialized skills in support of line departments, Examples
of staff departments include those which perform strategic planning, labor relations
research, accounting, and personnel,

23 | P a g e
Classifications of Staff Officers

1. Personal Staff

those individuals assigned to a specific manager to provide needed staff services,

2. Specialized Staff

those individuals providing need staff services for the whole organization,

3. Functional Authority

a specialist right to oversee lower-level personnel involved in that specialty, regardless

of where the personnel are in the organization.

Functional authority is one given to a person or a work group to make decisions related
to their expertise even if these decisions concern other departments. This authority is
given to most budget officers of organizations, as well as other officers.

Advantages of Functional organization

The grouping of employees who perform a common task permit economies of scale and
efficient resource use. Since the chain of command converges at the top of the organization,
decision-making is centralized, providing a unified direction from the top.

Communication and coordination among employees within each department are excellent.

The structure promotes high-quality technique problem-solving’s organization is provided with

in depth skill specialization and development. Employees are provided with career progress
within, functional departments,

Disadvantages of Functional Organization

Communications and coordination between departments are often poor. Decisions involving
more than one department pile up at the top management level and are often delayed. Work
specialization and division of labor, which are stressed in a functional organization, produce
routine, non-motivating employee tasks. It is difficult to identify which section or group
responsible for certain problems, there is limited view of organizational goals by employees,
there is limited general management training for employees,

24 | P a g e
Product or Market Organization

The product or market organization, with its feature of operating by divisions, is "appropriate
for a large corporation with many product lines in several related industries."

Advantages of a Product or Market Organizations

1. The organization is flexible and responsive to change.

2. The organization provides a high concern for customer's needs.

3. The organization provides excellent coordination across functional departments.

4. There is a easy pinpointing of responsibility for product problem

5. There is emphasis on overall product and division goals,

6. The opportunity for the development of general management is provided

Matrix Organization

A matrix organization, according to Thompson and Strickland, "is a structure with two (or more)
channels of command, two lines of budget authority, and two sources

of performance and reward." Higgins declared that "the matrix structure was designed to keep
employees in central pool and to allocate them to various projects the firm according to the
length of time they were needed."

Advantages of Matrix Organization

There is more efficient use of resources than the division structure. There is flexibility and
adaptability to changing environment. The development of both general and functional
management skill is present. There is interdisciplinary cooperation, and any expertise is
available to all divisions, There are enlarged tasks for employees which motivate them better

Disadvantages of Matrix Organizations

There is frustration and confusion from dual chain of command, there is high conflict between
divisional and functional interests. There are many meetings and more discussion than action.
There is a need for human relations training for key employees and managers. There is a

25 | P a g e
tendency for power dominance by one side of the matrix.

THE PURPOSE OF COMMITTEES

A primary reason for organizing is to have each member know what work activities is lo
perform. When assignment is definite, the accomplishment of the work activities can be
concentrated. When certain formal groups are deemed inappropriate to meet expectations,
committees are often times harassed to achieve organizational goals. Many organizations large
or small make use of committees.

A committee is a formal group of persons formed for a specific purpose. For instance, the
product planning committee, as described by Millevo, is "often staffed by top executives from
marketing, production, research engineering and finance, who work part-time to evaluate and
approve product ideas.

Committees are very useful most especially to engineering and manufacturing firms, When a
certain concern, like product development, is under consideration, a committee is usually
formed to provide the necessary line-up of expertise needed to achieve certain objectives.

Committee may be classified as follows:

• Ad hoc committee- one created for a short term purpose and has a limited life. An
example is the committee created to manage the anniversary festivities of the certain
firm,

• Standing committee- it is a relatively permanent committee that deals with issues on

an ongoing basis. An example is the grievance committee setup to handle initially
complaints from employees to the organizations.

Assignment:

Why is it important for the engineer manager to acquire skills in organizing?

Item for Research,

Prepare an organization chart of a large engineering firm showing line and staff relationship.

26 | P a g e
Staffing Procedure

1. Human resource Planning

2. Recruitment

3. Selection

4. Induction and orientation

5. Training and development

6. Performance appraisal

7. Employment decisions (monetary rewards, promotion and demotion)

8. Separations

Human Resource Planning

- A Systematic deployment of human resources at various levels.
Human resources planning involves 3 activities:

1. Forecasting

2. Programming

3. Evaluation and control

Methods of Forecasting

1. Time series method

• historical data
2. Explanatory and causal models
• identify the major variables in past and future, conditions:

a. Regression Models

b. Econometric Models

c. Leading indicators

3. Monitoring methods

provide early warning signals of significant change

27 | P a g e
RECRUITMENT

SOURCES OF APPLICANTS
• Organization's
Refers to attracting qualified
current employees
persons to apply for vacant
• Newspaper
positions in the company so
Advertising
that those who are best
• Schools
suited to serve the company
• Referrals from
may be selected
Employees
• recruitment firms
• Competitors

SELECTION

Refers to the act of choosing form those that are available individuals most likely to
succeed on the job.

Ways of determining the qualifications of a job candidate

• APPLICATION BLANKS

• TESTING

• INTERVIEWS

• REFERENCES

28 | P a g e
TYPES OF TESTS

Psychological Test

"An objective standard measure of a sample behavior"

• Aptitude test

• Performance test

• Personality test

• interest Test

1. Physical examination

"To assure that the health of the applicant is adequate to meet the job requirements

INTRODUCTION AND ORIENTATION

• Duties and Responsibilities • the immediate working environment
• Benefits and co-workers
• Company history • location
• products and services • rules
• organization structure • equipment
• procedures and training
• plans
• performance expectations.
• "Socialization process"

Training and Development

Refers to the learning that is provided to improve performances on the present job

Two general types:

1. Training for non- managers

2. Training and educational programs for executives

29 | P a g e
TRAINING PROGRAMS
1. In- basket
MANAGERS
2. Management games
3. Case studies
1. on- the- job training
NON-MANAGERS
2. Vestibule school
3. Apprenticeship Program
4. Special courses

The interpersonal competence of a In acquiring knowledge about the

manager may be developed through: actual job, the manager is currently
1. Role- Playing holding, these methods are useful:
2. Behavior Modeling 1. On-the-job training
3. Sensitivity Training 2. Coaching
4. Transactional Andyss 3. Understudy

in attempt to increase the trainee's

knowledge of the total organization,
exposure to information and events
of his immediate job is made. In this
regard, the following methods
are useful:
1. Position rotation
2. Multiple management

PERFORMANCE APPRAISAL
Measurement of employee's performance purpose

1. To influence, in a positive manner employee performance and development

2. To determine merit pay increase

3. To plan for future performance goals

4. To determine training and development needs,

5. To assess the promotional potential of employees

30 | P a g e
WAYS OF APPRAISING PERFORMANCE
1. Rating Scale Method
2. Essay Method
3. Management by objectives method
4. Assessment center method
5. Checklist method
6. Work standard method
7. Ranking method
8. Critical incident method

EMPLOYMENT DECISION
1. Monetary Rewards
2. Promotion
3. Transfer
4. Demotion

SEPERATION
Either a voluntary or involuntary termination of an employee.
In Voluntary
Voluntary the last option that the
real reason if there’s a management excusers when
presence of defect in the an employee’s performance is
organization determined poor or when she committed
corrective action necessary. and act violating the
company’s rules and
regulations.

Summary:
Engineering organizations are not immune to the difficulties of filling with qualified
persons as the various positions identified in the organizing stage. As the outputs of engineering
firms are produced by people under the supervision of engineer managers, errors in the
performance of the jobs may not be easy discernible. As such, staffing must be treated with
serious concern. Staffing deals with the determination of human resource needs, recruitment,
selection, training and development. The staffing process consist of the following series of
steps: human resource planning, recruitment, selection, induction and orientation, training and
development performance appraisal, employment decisions, separations The sources of
applicants consist of organization's current employees, newspaper advertising, schools,
referrals from employees, recruitment firms and competitors. The ways of determining the
qualifications of a job candidates consist of application blanks, references, interviews and
testing. Training program consist of one type for non-managers and another type for
executives, The various methods of performance appraisal are classified into rating-scale
31 | P a g e
method, the essay method, management by objectives method, assessment center method,
checklist method, work standards method, ranking method and critical incident method.
Employment decisions are classified as monetary rewards, promotion, transfer, and demotion.
Separations may be classified as voluntary or involuntary.

32 | P a g e