THE FIELD OF ENGINEERING The function of engineers encompasses the

MANAGEMENT following area:

Engineers are expected to perform a variety of 1. Research - the engineer is engaged in the
tasks depending on their specialization and job process of learning and using it into usable
level. It is important to the engineer that he knows theories.
what is expected of him so that he may be able to 2. Design and development - the engineer
perform his job effectively and efficiently. undertakes the activity of turning a product
concept to a finished physical item.
THE FUNCTIONS OF ENGINEER
3. Testing - the engineer works in a unit where
Since prehistoric times, mankind has benefited new products or parts are tested for
from the developments made by engineers. workability.

 Stone-bladed axe 4. Manufacturing - the engineer is directly in

 Irrigation system charge of production personnel or assumes

 Pyramids of Egypt responsibility for the product.

5. Construction - a construction (civil)
 Roadbuilding
engineer is in charge of construction
 Production of paper
personnel or may have the responsibility for
 Manufacture of cars and Household
the quality of the construction process.
appliances
6. Sales - the engineer assists the company’s
Even as engineers are currently producing customers to meet their needs.
solutions to many of the difficulties faced by 7. Consulting - the engineer works as
mankind, much is still expected of them. consultant of any individual or

 The production of more food for a fast organization.

growing world population 8. Government - the engineer is performing

 The elimination of air and water any of various tasks in regulating,

pollution monitoring, and controlling the activities of

private or public institutions.
 Solid waste disposal and materials
9. Teaching - the engineer is assigned as a
recycling
teacher of engineering courses.
 Reduction of noise in various forms
10. Management - the engineer is assigned to
 Supplying the increasing demand of
manage groups of people performing
energy
specific tasks.
 Supplying the increasing demand for
mobility
 Preventing and solving crimes
 Meeting the increasing demand for
communication facilities
THE ENGINEER IN VARIOUS TYPES OF MANAGEMENT
ORGANIZATION
Management may be defined as the "creative
From the viewpoint of the engineer, organizations problem solving-process” of planning, organizing,
may be classified according to the degree of leading, and controlling an organization's resources
engineering jobs performed: to achieve its mission and objectives.

LEVEL ONE Firms with minimal engineering PROCESS OF MANAGEMENT

roles, such as retail companies, engineers will have
 Seek to find out the objectives of the
few chances to become general managers or
organization
presidents unless they own the business.
 Decide on the ways to be adapted and the
LEVEL TWO Firms with moderate engineering material resources to be used
roles, such as transportation firms. At this stage, the  Determine the human requirements of the
engineer manager will start to realize the total job
significance of management skills.  Assign specific tasks to specific persons

LEVEL THREE Firms with a high degree in  Provide means to make sure that the

engineering Provides the best opportunity for an activities are in the right direction

engineer to rise to the position of president or WHY IS ENGINEERING MANAGEMENT

general manager. In these roles, the engineer IMPORTANT?
manager must possess strong management skills to
 Influences an organization’s financial
be effective
outcomes. (revenue growth, profitability
and operational efficiency).
 Impacts engineering facilities, largescale
projects, clients, workers, and the public.
 Effective implementation of best practices
to lead engineering teams with knowledge
spanning the gap between business
management and engineering.
 Engineering Managers serve as the
interface between the business and
ENGINEERING MANAGEMENT
technical sides of a project.
Engineering management refers to the activity
combining "technical knowledge with the ability to
organize and coordinate worker power, materials,
machinery, and money.
REQUIREMENTS FOR THE ENGINEER MOTIVATION TO MANAGE
MANAGER’S JOB
1. Favorable attitude toward those in positions
1. A bachelor's degree in engineering from a of authority, such as superiors.
reputable school; In some cases, a master's 2. Desire to engage in games or sports
degree in engineering or business competition with peers.
management is required; 3. Desire to engage in occupational or work-
2. A few years’ experience in a pure related competition with peers.
engineering job; 4. Desire to assert oneself and take charge.
3. Training in supervision; 5. Desire to exercise power and authority over
4. Special training in engineering others.
management. 6. Desire to behave in a distinctive way, which
includes standing out from the crowd.
HOW TO BECOME A SUCCESSFUL
7. Sense of responsibility in carrying out the
ENGINEER MANAGER?
routine duties associated with managerial
Road to becoming a successful engineer manager work.
is a very long and challenging one. It's not
OPPORTUNITY
something easily obtainable by chance, although
luck can play a role. Achieving this position Successful managers become possible only if those
requires tons of dedication, perseverance and having the ability and motivation are given the
continuous learning. opportunity to manage. The opportunity for
successful management has two requirements:
Kreitner identifies 3 general preconditions for
achieving long lasting success as a manager: 1. Obtaining a suitable managerial job, and
2. Finding a supportive climate once on the
job.

SUMMARY

Engineers are known for their great contributions

to the development of the world's civilization. As
ABILITY
the role of engineers expands in an increasingly
Managerial ability refers to the capacity of an interconnected world, their ability to manage
engineer manager to achieve organizational projects, lead teams, and innovate will continue to
objectives effectively and efficiently. be critical.
DECISION MAKING Core to Management and Planning: It’s central to
management and planning, including forecasting
Decision
and problem-solving.
A deliberate choice made from various options to
Continuous and Iterative: It’s a continuous process
address a specific challenge or opportunity. It
where decisions are made iteratively, with learning
involves selecting the best course of action to
from past decisions.
achieve desired outcomes, whether it's choosing
the right technology, allocating resources or IMPORTANCE OF DECISION-MAKING
settling project failures.
Central to Planning
Decision - Making
Decision-making is crucial for planning in
 A process by which engineers and engineering management. It involves setting
managers identify and choose alternative project goals, choosing strategies to achieve them,
courses of action in a manner appropriate to and defining the steps to follow. Good planning
the demands of the situation. ensures projects are clearly defined and resources
 According to Nickel et al., decision making are used efficiently.
is the "heart of all the management
Key to Organizing
functions"
Organizing involves structuring tasks and teams
CHARACTERISTICS OF DECISION-
effectively. Decisions about job roles, team
MAKING structure, and resource allocation help streamline
Selective and Goal-Oriented: Decision-making work and improve efficiency. Proper organization
involves choosing the best alternative to achieve a ensures that tasks are matched with the right skills
specific goal. and that workflows are smooth.

Process Involvement: It includes defining the Essential for Leading

problem, analyzing alternatives, and making a final
Leadership decisions focus on motivating the team,
choice.
choosing the right leadership style, and managing
Human and Rational: It’s a human and rational conflicts. Effective leadership through decision-
process involving intellect, intuition, and instincts. making boosts team morale, enhances
performance, and ensures everyone works towards
Dynamic and Risky: It’s dynamic and involves
the same goals.
risks and uncertainties, with solutions varying over
time (Drucker). Crucial for Controlling

Creative and Integrative: Decision-making is a Controlling involves monitoring project progress

creative process that blends knowledge, thought, and making decisions to correct issues. Deciding
feeling, and imagination (G.L.S. Shackle). what to monitor, how to measure performance, and
what actions to take if things go off track helps materials on time or provide subpar or below
keep projects within budget and on schedule. average quality.

DECISION-MAKING AS A MANAGEMENT IDENTIFY THE PROBLEM

RESPONSIBILITY
The first step in decision-making is to recognize
 Decision-making is a critical responsibility that there is a problemthat needs to be tackled and
of the engineer manager. it is important enough for managerial action.
 It is understandable that managers may Problems generally arise because of disparity
make wrong decisions at times, but wise between what is and what should be.
managers correct them as soon as they are
Problem
identified.
Engr. Sibal Riego is facing delays in the road
 A more significant issue arises when
construction project in Costa Leona due to
managers cannot or do not want to make
unreliable local suppliers. These suppliers either
decisions.
fail to deliver materials on time or provide
 Management must strive to make decisions
materials of subpar quality. This problem affects
as accurately as possible and are
project timelines, quality, and possibly costs.
accountable for the outcomes.
 The higher the management level, the GATHER RELEVANT INFORMATION
bigger and more complicated decision-
After recognizing the problem, the next phase of
making becomes.
decision making involves classifying the problem
DECISION-MAKING PROCESS and gathering relevant information. Information
can be gathered internally or externally depending
on the needs of the situation. Some problems are
unique to the company itself so that all the data that
is generated is internal and the basic source of this
data is the management information system while
for some problems the data are collected from both
internal and external environment.

Relevant Information
Sample Scenario

Engr. Sibal Riego is managing a road construction  The frequency of delays from suppliers and

project in Costa Leona, a remote town in Aklan. reasons behind them (transportation,

This project will benefit the province in terms of production issues, etc.).

better access and connectivity. However, Engr.  The specific materials that have been

Riego is experiencing significant delays due to delayed or are substandard.

unreliable local supplier who often fail to deliver  Alternative suppliers available in or near
Aklan or nearby provinces.
  The potential impact of these delays on the and cons of each, helping us pick the solution that’s
overall project timeline and costs. most likely to be effective and successful.

DEVELOP ALTERNATIVES Alternatives Evaluation

After gathering the relevant information, the  New suppliers: May offer better reliability
decision-maker should formulate alternative but could increase costs due to
solutions for the business problem. There is hardly transportation or unfamiliarity.
any problem in the world wherein alternatives can’t  Stricter negotiations: Could improve
be developed. So the decision-maker must develop supplier performance but may strain
a range of alternatives in order to decide. This can relationships.
be done by mixing up resources in different  Multiple suppliers: Diversifies risk but
proportions thinking about the same problem in could introduce coordination issues and
different perspectives. It is desirable that we should more complexity.
think of as many alternatives as possible before the  Pre-ordering in bulk: Ensures steady supply
decision stage. but may increase storage costs and risks

Alternatives related to over-ordering.

CHOOSE THE BEST ALTERNATIVE

 Find new, more reliable suppliers who may
have more resources and reliability than After evaluating the alternatives, the decision-
local suppliers even if they are farther maker must now be ready to make a choice. This is
away. the point where he must be convinced that all the
 Negotiate stricter terms with existing previous steps were correctly undertaken.
suppliers, including penalties for late
Choice-making refers to the process of selecting
deliveries or substandard materials.
among alternatives representing potential solutions
 Establish partnerships with multiple
to a problem. At this point Webber advises that, “
suppliers.
particular effort should be made to identify all
 Pre-order materials in bulk to avoid delays,
significant consequences of each choice.”
provided there is enough storage.
Best Alternative
EVALUATE ALTERNATIVES
The best alternative would likely be a mix of
After developing all alternatives, the next step
negotiating stricter terms with current suppliers,
should be to judge and evaluate them through some
while also seeking out backup suppliers in case of
good decision criteria. The main goal here is to
failure. Additionally, pre-ordering certain key
figure out what the outcome of each option would
materials in bulk could minimize delays without
be if it were chosen and to see how well it would
incurring significant storage costs.
solve the problem or meet the project’s goals. By
evaluating the alternatives, we can weigh the pros
MAKE/IMPLEMENT THE DECISION  Assess if any penalties need to be enforced
or if new suppliers prove more reliable.
After a decision has been made, implementation
 Evaluate the impact on the project timeline
follows. This is necessary, or decision-making will
and whether delays have decreased.
be an exercise in futility.
 Reflect on whether further actions, such as
Implementation refers to carrying out the decision
switching suppliers completely or using
so that the objectives sought will be achieved. To
bulk orders more frequently, are necessary.
make implementation effective, a plan must be
devised. APPROACHES IN SOLVING PROBLEMS

The Decision QUALITATIVE EVALUATION

It refers to the evaluation of alternatives using

 Approach current suppliers to discuss
intuition and subjective judgment. Stevenson states
stricter contracts with penalties for non-
that managers tend to use the qualitative approach
performance.
when:
 Start negotiations or procurement with
backup suppliers. 1. The problem is fairly simple.
 Identify and pre-order crucial materials that 2. The problem is familiar.
could cause the most disruption if delayed. 3. The costs involved are not great.
4. Immediate decisions are needed.
REVIEW & REFLECT THE RESULTS
QUANTITATIVE EVALUATION
Feedback refers to the process which requires
checking at each stage of the process to assure that It refers to the use of mathematical models to seek
the alternatives generated, the criteria used in optimal solutions to problems in a given business
evaluation and the solution selected for situation, while recognizing the constraints
implementation are in keeping with the goals and imposed by the environment. Key characteristics
objectives originally specified. include:

Control refers to actions made to ensure that 1. Objective Measurement

activities performed match the desired activities or 2. Data-Driven
goals, that have been set. 3. Statistical Analysis

This last stage of the decision-making process, that QUANTITATIVE MODELS

engineer manager will find out whether or not the
INVENTORY MODEL
desired result is achieved.
Inventory refers to idle goods or materials held by
Review and Reflection
an organization for future use. While it plays a
 Monitor the performance of suppliers over crucial role, the costs associated with financing and
time and whether delivery times improve. maintaining inventory represent a significant part
of business expenses.
Two important questions that must be answered in
order to effectively manage inventories are as
follows:

1. How much should be ordered when the

inventory for an item is replenished?
2. When should the inventory be replenished?

Types of inventory model

Economic Order Quantity Model (EOQ) QUEUING THEORY

Used to calculate how many items to order at once Describes how to determine the number of service
to minimize the total annual cost of ordering and units that will minimize both customer waiting
storing inventory. time and cost of service. Key measures for
balancing capacity and waiting costs include:

 Average time in the queue

 Average length in the queue
 Average customer in the system

Production Order Quantity Model (POQ)  Number of customers in the queue

 Probability of system being used
An economic order quantity technique applied to
production orders. FORECASTING

Forecasting plays a major role in decision-making

because forecasts are useful in improving the
efficiency of the decision-making process.
Businesses utilize forecasting to determine how to
allocate their budget or plan for anticipated
expenses for an upcoming period.

REGRESSION ANALYSIS

A popular technique among economists and

statisticians, regression analysis uses complex
Quantity Discount Model
statistical equations to estimate the impact of one
This is an inventory model used to minimize the
or more factors, known as predictors or
total cost when quantity discounts are offered by
independent variables, on an outcome of interest,
suppliers.
known as a dependent variable.
Types of Regression Analysis computer-assisted simulation for the design or
improvement of existing processes.
Simple Linear Regression
Robotics
used to model the relationship between two
continuous variables. Often, the objective is to Robotics simulations are used to mimic situations
predict the value of an output variable (or response) that may not be possible to recreate and test in real
based on the value of an input (or predictor) life due to time, cost, or other factors. The results
variable. of these tests can then be assessed and transferred
to real-life robots.

LINEAR PROGRAMMING

A method used to achieve the best outcome (e.g.,

maximum profit or lowest cost) in a mathematical
Multiple Regression
model with linear relationships. It's commonly
extends linear regression by considering multiple applied in resource allocation, production
independent variables to predict the dependent scheduling, and project selection, helping
variable. managers efficiently allocate limited resources
while meeting constraints and optimizing
objectives.

Example:

A company wants to maximize its profit by

producing two products, A and B. The profit from
SIMULATION
product A is $5 per unit, and from product B is $3
Simulation is a broad term indicating any activity per unit. The company has 100 hours of labor and
that attempts to imitate an existing system or 180 units of raw materials available. Each unit of
situation in a simplified manner. Simulation is product A requires 2 hours of labor and 3 units of
basically model building, in which the simulator raw materials, while each unit of product B requires
tries to gain understanding by replicating 1 hour of labor and 2 units of raw materials.
something and then manipulating it by adjusting
SAMPLING THEORY
the variables used to build the model.
Sampling theory is a branch of statistics that deals
Examples:
with selecting a representative part of a population.
Engineering Systems It enables reliable decisions based on smaller
samples, making it essential for surveys and
Simulation is widely used for engineering systems
experiments where studying the entire population
to imitate operations and functions of equipment,
is impractical.
processes, and procedures. Engineering
simulations can combine mathematical models and
Examples: 3. Conceptual
4. Behavioral
For instance, imagine a researcher who wants to
determine the average height of students in a large
university with tens of thousands of students. It
would be logistically impossible to measure every
student's height. Instead, sampling theory guides
the researcher to collect a sample, such as
measuring the height of 500 randomly selected
students. This sample, if chosen correctly, will
provide a good estimate of the average height
across all students.

STATISTICAL DECISION THEORY

Decision theory is a rational approach to solving

problems with limited information. Statistical
decision theory is concerned with the making of
decisions in the presence of statistical knowledge
(data), which sheds light on some of the
uncertainties involved in the decision problem. The
goal is to choose actions that lead to the best
outcome by assessing risk, accounting for
uncertainty, and establishing an optimal decision
rule.

Example:

A drug company wants to produce the right

quantity of a drug for the market to maximise their
profit. However, we don’t know the true market
demand. This uncertainty greatly affects the
company’s profit. The consequences of over-
production and under-production can be different.
We need to identify the impact on the profit if our
production mismatches the market demand.

Four Styles in Decision-Making

1. Directive
2. Analytical
PLANNING AND ORGANIZING INTERMEDIATE PLANNING
TECHNICAL ACTIVITIES
Refers to "the process of determining contributions
THE NATURE OF PLANNING that sub- units can make with allocated
RESOURCES".
A plans, which is the output of planning, provides
a methodical way achieving desired results. In the The goals of a sub-unit are determined and a plan
implementation of the activities, the plan serves as is prepared provide a guide to the realization of the
a useful guide. Without the plan, some minor tasks goals.
may be afforded major attention which may, later
on, hinder the accomplishment of objectives.

PLANNING DEFINED

 According to Nickels and others, it refers to

“the management functions that involves
anticipating future trends and determining
the best strategies and tactics to achieve
organizational activities,”.
 According to Aldag and Stearns, it is “the
selection and sequential ordering of task
required to achieve organizational goal,”.
 According to Cole and Hamilton, it is
“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,”. OPERATIONAL PLANNING

PLANNING AT VARIOUS MANAGEMENT It refers to " the process of determining how

LEVELS specific tasks can best be accomplished on time

with available resources." This type of planning is
a responsibility of lower management. It must be
performed in support of the strategic plan and the
intermediate plan.

THE PLANNING PROCESS

STRATEGIC PLANNING The process of planning consists of various steps

Refers to the process of determining the major depending on the management level that performs

goals of the organization and the policies and the planning task. Generally, however, planning

strategies for obtaining and using resources to involves the following:

achieve those goals.

 1. SETTING ORGANIZATIONAL, goals and the courses of action are indicated in the
DIVISIONAL, OR UNIT GOALS. tactical plan.
2. DEVELOPING STRATEGIES OR
DETERMINING RESOURCES NEEDED
TACTICS TO REACH THOSE GOALS.
3. DETERMINING RESOURCES To satisfy strategic requirements, a general

NEEDED. statement of needed resources will suffice. The

4. SETTING STANDARDS. specific requirements will be determined by the

different units of the company.
SETTING ORGANIZATIONAL,
DIVISIONAL, OR UNIT GOALS SETTING STANDARDS

The first task of the engineer manager is to provide A standard may be defined as “a quantitative or

a sense of direction to his firm to his division. The qualitative measuring device designed to help

settings of goals provide an answer to the said monitor the performances of people, capital goods,

concern. If everybody in the firm is aware of the or processes.”

goals, there is a big chance that everybody will

contribute his share in the realization of such goals.

Goals may be defined as the "precise statement of

results sought, quantified in time and magnitude,
where possible."

DEVELOPING STRATEGIES OR TACTICS

TO REACH GOALS
FUNCTIONAL AREA PLANS
After determining the goals, the next task is to
devise some means to realize them. The ways to  MARKETING PLAN

realize the goals are called strategies and these will Written document for implementing and

be the concern of top management. The middle and controlling an organization's marketing

lower management will adapt their own tactics to activities related to a particular marketing

implement their plans. strategy.

 PRODUCTION PLAN
A strategy may be defined as “a course of action
Written document for that states the
aimed at ensuring that the organization will achieve
quantity of output a company must produce
its objectives.”
in board terms and by product family.
A tactic is a short term taken by management to  FINANCIAL PLAN
adjust to negative internal or external influences. Document that summarizes the current
They are formulated and implemented in support of financial situation of the firm, analyzes
the firm’s strategies. The decision about short term financial needs, and recommends a
direction for financial activities.
  HUMAN RESOURCE MANAGEMENT Situational analysis and target market
PLAN
Situational analysis examines all the aspects that
Document that indicates the human
may impact sales of a specific company. Target
resource needs of a company detailed in
market defines the target customers by their
terms of quantity and quality and based on
demographic profile, such as gender, race, age, and
the requirements of the company's strategic
psychographic profile, such as their interests.
plan.
Marketing objectives and goals
PLAN WITH TIME HORIZON
Marketing objectives are measurable goals that are
 SHORT-RANGE PLAN
set up by a business to promote its products and
Plans intended to cover a period of less than
services to prospects within a certain time frame.
one year.
Marketing goals states what the organization plans
 LONG-RANGE PLAN to achieve through the implementation of the
Plans covering a time span of more than one marketing plan.
year.
Marketing Strategies
PLAN ACCORDING TO FREQUENCY USE
It outlines how a business will use its available
 STANDING PLANS resources to promote its products or services and
Plans that are use again and again, and they reach its target audience.
focus on managerial situations that recur
Marketing Tactics
repeatedly.
 SINGLE-USE PLANS It refers to the specific actions and methods used to
Plans that are specifically developed to implement a marketing strategy and achieve
implement courses of action that are defined goals.
relatively unique and are unlikely to be
Schedules and Budgets
repeated.
Marketing schedule is an organized method for
documenting important marketing dates and
PARTS OF VARIOUS FUNCTIONAL AREA projects. Marketing budget or projection outlines
PLANS the budgeted expenditure for the marketing
activities documented in the marketing plan.
Contents of Marketing Plan:
Financial Data and Control
The executive summary
Financial data refers to a number of verified,
Gives an overview of the key elements of the
quantifiable sources of information about the
marketing plan, with a specific focus on product,
financial health, performance, and prospects of an
pricing, promotion, and placement.
enterprise. Control outlines how this will be
achieved. Implementing controls enables the
monitoring of activities and facilitates necessary A set of pro forma financial statements
adjustments when required.
Present the complete future economic projection of
Contents of Production Plan: a company or person.

The Amount of capacity that company must have The external financing plans

Determining the optimal number of employees Those that come from outside your business.
needed to meet the business’s operational,
Contents of Human Resource Management
production, or service goals efficiently.
Plan
How many employees are required
Personnel requirements of the company
Company's ability to support its operations,
A business needs the right people to meet its goals
growth, and financial obligations.
and maintain a healthy cash flow.
How much material must be purchased
Plans of recruitment and selection
The amount of raw materials or inventory a
Vital for strategic hiring decisions, optimizing
business needs to acquire in order to meet
recruitment, and ensuring efficient resource
production or operational demands within a
utilization.
specific period.
Training Plan
Contents of Financial Plan:
Outlines the objectives, activities, timelines, and
An analysis of the firm's current financial condition
resources required to achieve specific learning
Provide valuable information regarding the past, goals within a training program.
present, and future direction of your government's
Retirement Plan
finances.
Preparing today for your future life so that you
Sales Forecast
continue to meet all your goals and dreams
The process of estimating future revenue by independently.
predicting how much of a product or service will
sell in the next week, month, quarter, or year.
PARTS OF STRATEGIC PLAN
Capital Budget
THE STRATEGIC PLAN MUST MUST
The process by which investors determine the
CONTAIN THE FOLLOWING:
value of a potential investment project.
1. Company or corporate mission.
The Cash Budget
2. Objectives or goals.
An estimation of the cash flows of a business over
a specific period of time. 3. Strategies.
MAKE PLANNING EFFECTIVE the assignment of authority, responsibility, and
accountability for certain functions and tasks.
PLANNING MAY BE MADE SUCCESSFUL IF
THE FOLLOWING ARE OBSERVED: ORGANIZING DEFINED

1. Recognize the planning barriers.  Organizing is a management function

which refers to “the structuring of resources
2. The use of aids to planning.
and activities to accomplish objectives in an
THE PLANNING BARRIERS, ACCORDING efficient and effective manner.”
TO PLUNKETT AND ATTNER, ARE AS
 The arrangement or relationship of
FOLLOWS:
positions within an organization is called
1. Manager's inability to plan. structure. The result of the organizing
process is the structure.
2. Improper planning process. 3.Lack of
commitment to the planning process. THE PURPOSE OF THE STRUCTURE

4. Improper information. THE STRUCTURE SERVES SOME VERY

USEFUL PURPOSES. THEY ARE THE
5. Focusing on the present at the expense of the
FOLLOWING:
future.
1. It defines the relationship between tasks
6. Too much reliance on the planning department.
and authority for individuals and
7. Concentrating on only the controllable departments
Variables. 2. It defines formal reporting relationships,

AMONG THE AIDS TO PLANNING THAT the number of levels in the hierarchy of the

MAY BE USED ARE: organization, and the span of control.

3. It defines the groupings of individuals into
1. Gather as much information as possible.
departments and departments into
2. Develop multiple sources of information. organization.
4. It defines the system to effect coordination
3. Involve others in the planning
of effort in both vertical (authority) and
horizontal (tasks) directions.

REASONS FOR ORGANIZING KEY CONSIDERATION FOR AN ENGINEER

Organizing is undertaken to facilitate the MANAGER WHEN STRUCTURING AN

implementation of plans. in effective organizing, ORGANIZATION

steps are undertaken to breakdown the total job into 1. Division of Labor - determining the scope
more manageable man-size jobs. doing these will of work and how it is combined in a job.
make it possible to assign particular tasks to
particular persons. In turn, these will help facilitate
 2. Delegation of authority - the process of centralized, providing a unified
assigning various degrees of decison direction from the top.
making authority to subordinates.  Communication and coordination
3. Departmentation - the grouping of related among employees within each
jobs, activities, or processes into major department are excellent.
organizational subunits.  The structure promotes high-quality
4. Span of control - the number of people who technical problem-solving.
report directly to a given manager.  The organization is provided with in
5. Coordination - the linking of activities in depth skill specialization and
the organization that serves to achieve a development.
common goal or objective.  Employees are provided with a
career progress within functional
departments.
TYPES OF ORGANIZATIONAL
STRUCTURES DISADVANTAGES OF FUNCTIONAL
ORGANIZATION
1. FUNCTIONAL ORGANIZATION
- this is a form of departmentalization in  Communication and coordination

which everyone engaged in one between the departments are often

functional activity, such as engineering poor.

or marketing, is grouped into one unit.  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, nonmotivating employee

ADVANTAGES OF FUNCTIONAL tasks.

ORGANIZATION  It is difficult to identify which

 The grouping of employees who section or group is responsible for

perform a common task permit certain problems.

economy of scale and efficient  There is limited view of

resource use. organizational goals by employees.

 Since the chain of command  There is limited general

converges at the top of the management training for employees
organization, decision-making is a
2. PRODUCT OR MARKET  There is less technical depth and
ORGANIZATION specialization in divisions.
- this refers to the organization of a  There is poor coordination across
company by divisions that brings divisions.
together all those involved with a  There is less top management
certain type of product or customer. control.
 There is competition for corporate
resources.
3. MATRIX ORGANIZATION
- an organizational structure in which
each employee reports to both a
functional or division manager and to a
project or group manager.

ADVANTAGES OF
PRODUCT/MARKET ORGANIZATION

 The organization is flexible and

responsive to change.
 The organization provides a high
concern for customer’s needs.
 The organization provides excellent
coordination across functional
departments.
 There is easy pinpointing of
ADVANTAGES OF MATRIX
responsibility for product problems.
ORGANIZATION
 There is emphasis on overall
product and division goals.  There is more efficient use of

 The opportunity for the resources than the divisional

development of general structure.

management skills are provided.  There is flexibility and adaptability

to changing environment.
DISADVANTAGES OF
 The development of both general
PRODUCT/MARKET ORGANIZATION
and functional management skills
 There is a high possibility of are present.
duplication of resources across  There is interdisciplinary
regions. cooperation and any expertise is
available to all divisions.
  There are enlarged tasks for TWO CLASSIFICATION OF STAFF
employees which motivates them AUTHORITY
better.
 STAFF AUTHORITY
DISADVANTAGES OF MATRIX PERSONAL STAFF
ORGANIZATION Those individuals assigned to a
specific manager to provide needed
 There is frustration and confusion
staff services.
from dual chain of command.
 SPECIALIZED STAFF
 There is high conflict between
Those individuals providing needed
divisional and functional interests.
staff services for those whole
 There are many meetings and more
organization.
discussion than action.
 There is a need for human relations
training for key employees and
managers.
 There is a tendency for power
dominance by one side of the
matrix.
3. FUNCTIONAL AUTHORITY
- a staff specialist’s right to oversee lower
TYPES OF AUTHORITY level personnel involved in that

1. LINE AUTHORITY specialty, regardless of where the

- a manager’s right to tell subordinates personnel are in the organiztion.

what to do and then see if they do it.

2. STAFF AUTHORITY THE PURPOSE OF COMMITTEES

- a staff specialist’s right to give advice
Committees are very useful most especially to
to a superior.
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.

CLASSIFICATION OF COMMITTEES

1. AD HOC COMMITTEE
- one created for a short-term purpose
and have a limited life.
EX. Event Planning Committee, Sports
Day Committee
2. STANDING COMMITTEE
- it is a relatively permanent committee
that deals with issues on a ongoing
basis.
EX. Finance Committee, Human
Resources (HR) Committee
STAFFING IN ENGINEERING STAFFING PROCEDURE
MANAGEMENT
1. HUMAN RESOURCE PLANNING
After setting up the organizational structure that 2. RECRUITMENT
has been decided to serve the interest of the firm, 3. SELECTION
the next step to be done is to fill the position needed 4. INDUCTION AND ORIENTATION
in a certain firm with a number of qualified people. 5. TRAINING AND DEVELOPMENT
6. PERFORMANCE APPRAISAL
Any Organization is very sensitive to whatever
7. EMPLOYMENT DECISIONS
errors are made. Mistakenly assigning the wrong
8. SEPARATIONS
people to a greater or more important position in
the firm can lead to massive damage. HUMAN RESOURCE PLANNING

Crucuality of Picking People Human resource planning involves three different

tasks.
An example of the ill effect of staffing errors was
the incident that happened back in November 1981. 1. Forecasting
Based on the TV program “Brigada Siete”, in the - An assessment of future human resource
same year, the whole sixth floor of the Manila Film needs in relation to the current capabilities
Center collapsed while undergoing construction of the organization
leading some workers, including an engineer died  METHODS OF FORECASTING
as a result. A. TIME SERIES METHODS
Which use Historical data to develop
According to some reports, there are still workers
forecasts of the future
who have not been retrieved after falling into
B. EXPLANATORY OR CAUSAL
quick-dry cement.
METHOD
When interviewed by the TV program staff, a Which are attempts to identify the
former construction worker said he was hired into major variables that are related to or
a masonry job when does not have training in have caused particular past conditions
masonry. There are other staffing errors mentioned and then use current measures of these
in the program variables to predict future conditions
2. Programming
- means translating the forecasted human
STAFFING
resource needs to personnel objectives and
Staffing is hiring eligible candidates in the goals
organization or company for specific positions. In 3. Evaluation and Control
management, the meaning of staffing is an - refers to monitoring human resource action
operation of recruiting employees by evaluating plans and evaluating their success.
their skills, and knowledge and then offering them
specific job roles accordingly.
RECRUITMENT Selection process: Conducts multiple stages;
Multiple interviews, technical assessments,
Refers to attracting qualified persons to apply for
psychological tests, problem-solving tests
positions vacant in the company so that those who
are best suited to be a part of company will be Criteria: Advanced specifications are being
selected reviewed, such as communication and leadership
skills, advanced technical skills, years of
Source of Applicant
experience, Degree in Civil engineering, and
 The organization’s current employees
Professional Engineering licensure,
 Newspaper
 Advertising Tools Used in the selection: presentation or case

 Schools Referrals from employees study, advanced problem solving texts/exams,

 Recruitment firms software/technical skills tests

WAY OF DETERMINING THE

QUALIFICATIONS
SELECTION
 Application Blanks
Refers to the act of choosing from those that are
 References
available the individuals most likely to succeed on
 Interviews
the job
 Testing
Types of Selection Procedure TYPES OF TESTS

Simple Selection 1. PSYCHOLOGICAL TEST

- Standard measure of a sample behavior
Example: Hiring a cashier
Classification
Selection process: The HR only requires only to Aptitude test - measures a person’s
submit a resume and attend in-person interview in ability to learn
assessing their basic skills Performance test - measures a
person’s current knowledge of a subject
Criteria: The basic specification such as school
Personality test - measures personality
attainment, customer service experience, and
traits are dominance, sociability, and
communication skill are being reviewed
comforminity. Interest test - measures a
Tools Used in the selection: Resume review, short person’s interest in a field of work.
interview, simple assessment for the particular job 2. PHYSICAL EXAMINATION
Complex Selection - Type of test given to assess the physical
health of an applicant - to assure that the
Example: Hiring a senior Civil Engineer
health of the applicant is adequate to
meet the job requirements.
INDUCTION AND ORIENTATION challenges. These are often team-based, requiring
collaboration and strategic thinking.
INDUCTION
Case Studies: Case studies present real-world
- refers to familiarizing and integrating new
scenarios that managers must analyze and solve.
employees or team members into the
This method encourages critical thinking and
company’s culture, processes, tools, safety
allows managers to apply theoretical knowledge to
protocols, and roles within the engineering
practical situations. It also promotes group
teams. The goal is to ensure that new hires
discussions, encouraging participants to learn from
understand their responsibilities and can
each other’s insights.
efficiently begin contributing to projects.

INDUCTION PROCESS
PERFORMANCE APPRAISAL
 Introduction to the Organization
 Role-Specific Training - Performance appraisal is the measurement of
 Health and Safety Protocols employee performance. The purpose for which

 Team Integration performance appraisal is made are as follows:

 Administrative Process  To influence, in a positive manner,

employee performance and
ORIENTATION
development;
- The new employee is introduced to a broader  To determine merit pay increase;
understanding of the working environment and  To plan for future performance goals;
co-workers, including the location, rules,  To determine training and development
equipment, procedures, and training plans. The need; and
new employee also undergoes the  To assess the promotional potential of
“socialization process” by pairing him/her with employee.
an experience employee
WAYS OF APPRAISING
PERFORMANCE

TRAINING AND DEVELOPMENT Rating Scale Method

TRAINING PROGRAMS FOR MANAGERS - where each trait or characteristic to be

In-Basket Training: This method simulates real- rated is represented by a line or scale on

world managerial tasks by giving participants a which the rater indicates the degree to

collection of documents, tasks, and emails to which the individual possesses the trait
prioritize, respond to, or delegate within a set time or characteristic.

Management Games: Management games are

simulated environments where participants role-
play as managers and face realistic business
Essay Method EMPLOYMENT

- where the evaluator composes Employment Decision

statement that best describe the person
1. Monetary rewards
evaluated.
- these are given to employees whose
Management by Objectives Method
performance is at par or above standard
- where specific goals are set requirements.
collaboratively for the organization as a
2. Promotion
whole, for various submits, and for each
individual member. - this refers to a movement by a person into a
position of higher pay and greater
Assessment Center Method
responsibilities and which is given as a
- where one is evaluated by persons other reward for competence and ambition.
than the immediate superior.
3. Transfer
Checklist Method
- this is the movement of a person to a
- where one is evaluators checks different job at the same or similar level of
statement on a list that are deemed to responsibility in the organization. Transfers
characterize an employee’s behavior or are made to provide growth opportunities
performance. for the persons involved or to get rid of a
poor performing employee.
Work Standards Method
4. Demotion
- where standards are set for the realistic
worker output and later on used in - this is a movement from one posi- tion to
evaluating the performance of non- another which has less pay or respon-
managerial employees. sibility attached to it. Demotion is used as a
form of punishment or as a temporary
Ranking Method
measure to keep an employee until he is
- where each evaluator arranges offered a higher position.
employees in rank order from the best
to the poorest.
COMMUNICATION
Critical-incident Method
Morris Philip Wolf and Shirley Kuiper define
- where the evaluator recalls and writes
communication as “a process of sharing
down specific (but critical) incidents
information through symbols, including words and
that indicate the employees
message.”
perfrormance.
In management, communication must be made for ENCODE
a purpose and because it has a cost attached to it, it
The next step is to encode the idea into words,
must be used effectively
illustration, figures, or other symbols suitable for
FUNCTIONS COMMUNICATION transmission. The method of transmission should
be determined in advance so that the idea may be
INFORMATION FUNCTION
encoded to conform with the specific requirements
- Information provided through communication of the identified method.
may be used for decision-making at various
TRANSMIT
work levels in the organization.
After encoding, the message is not ready for
MOTIVATION FUNCTION
transmission through the use of an appropriate
- Communication is also often times used as a communication channel. Among the various
means to motivate employees to commit channels used include the spoken word, body
themselves to the organization’s objectives movements, the written word, television,

CONTROL FUNCTION telephone, radio, an artist’s paint, electronic mail.

etc.
- When properly communicated, reports,
policies, and plans define roles, clarify duties, Proper transmission is very important so the

authorities and responsibilities. Effective message sent will reach and hold the attention of

control is, then, facilitated. the receiver. To achieve this, the communication
channel must be free of barriers, or interference.
EMOTIVE FUNCTION
RECEIVE
- When feelings are repressed in the
organization, employees are affected by The next step is the communication process is the

anxiety, which, in turn, affects performance. actual recieving of the message by the intended

Whatever types of emotions are involved, receiver.

satisfaction, dissatisfaction, happiness, or The requirement if for the receiver to be ready to

bitterness, communication provides a means to receive at the precise moment the message relayed
decrease the internal pressure affecting the by the sender.
individual
DECODE
COMMUNICATION PROCESS
The next step, decoding, means translating the
DEVELOP AN IDEA message from the sender into a form that will have

The most important step in effective meaning to the recipient.

communication is developing an idea. It is If the receiver knows the language and terminology
important that the idea to be conveyed must be used in the message, successful decoding may be
useful or of some value. achieved.
ACCEPT  Repeat messages in order to provide
assurance that they are properly received.
The next step is for the receiver to accept or reject
 Use multiple channels so that the accuracy
the message. Sometimes, acceptance(or rejection)
of the information may be enhanced.
is partial.
 Use simplified language that is easily
EXAMPLE: A newly-hired employee was sent to
understandable and which eliminates the
a supervisor with a note from his superior directing
possibility of people getting mixed-up with
the supervisor to accept the employee into his unit
meanings
and to provide the necessary training and guidance.

USE
TECHNIQUES FOR COMMUNICATING IN
The next step is for the receiver to use the
ORGANIZATION
information. If the message provides information
of the importance to a relevant activity, then the DOWNWARD COMMUNICATION

receiver could store it and retrieve it when required. Downward communication refers to message flows

All of the above mentioned options will depend on from higher levels of authority to lower levels.

his perception of the message. Among the purposes of downward communication

are:
PROVIDE FEEDBACK
 To give instructions
The last step in the communication process is for
 To provide information about policies and
the receiver to provide feedback to the sender.
procedures
Depending on the perception of the receiver,
 To give feedback about performance
however this important step may not be made.
 To motivate

Examples: Letters, Meetings, Telephones,

BARRIERS TO COMMUNICATION Manuals, Handbooks, Newsletters

The barriers to communication may be classified HORIZONTAL COMMUNICATION

generally as:
Horizontal communication refers to messages sent
 PERSONAL BARRIERS to individuals or groups from another of the same
 PHYSICAL BARRIERS organizational level or position.
 SEMANTIC BARRIERS
 to coordinate activities between
OVERCOMING BARRIERS TO departments
COMMUNICATION  to persuade others at the same level of
organization
 Use feedback to facilitate understanding
 to pass on information about activities or
and increase the potential for appropriate
feelings
action.
 Examples: Memos, Meetings, Telephones, Informal Gripe Sessions
Picnics, Dinner, Other social affairs
Informal gripe sessions can be used positively if
UPWARD COMMUNICATION management knows how to handle them. When
employees feel free to talk and they are assured of
Upward communication refers to messages from
not being penalized for doing so, then management
persons in lower-level positions to persons in
will be spared with lots of efforts determining the
higher positions. The messages sent usually
real causes of problems in the company
provide information on work progress, problems
encountered, suggestions for improving output, Task Forces
and personal feelings about work and non-work
When a specific problem or issue arises, a task
activities.
force may be created and assigned to deal with the
Among the techniques used in upward problem or issue. Since membership of task forces
communication are: consists of management and nonmanagement
personnel, Integration and teamwork are fostered,
Formal Grievance Procedures
creativity is enhanced, and interpersonal skills are
Grievances are part of a normally operating developed.
organization. To effectively deal with them,
Exit Interviews
organizations provide a system for employees to air
their grievances. When employees leave an organization for any
reason, it is to the advantage of management to
Employee Attitude and Opinion Surveys
know the real reason. If there are negative
Finding out what the employees think about the developments in the organization that management
company is very important. The exercise, however, is not aware of, exit interviews may provide some
requires expertise and the company may not be of the answers.
prepared to do it.

Suggestion Systems

Suggestions from employees are important sources

of cost-saving and production enhancing ideas.
Even if majority of the suggestions are not feasible,
a simple means of acknowledging them contributes
to employee morale.

Open-Door Policy

An open-door policy, even on a limited basis,

provides the management with an opportunity to
act on difficulties before they become full-blown
problems.
MOTIVATING 2. HEZBERG’S TWO-FACTOR THEORY

Motivating refers to the act of “giving employees

reasons or incentives to work to achieve
organizational objectives”. Motivation, on the
other hand, refers to the process of activating
behavior, sustaining it, and directing it toward a
particular goal.
3. EXPENTANCY THEORY
FACTORS CONTRIBUTING TO
MOTIVATION

 Willingness to do a job
 Self-confidence in carrying out a task
 Needs satisfaction

PROCESS OF MOTIVATION

4. GOAL SETTING THEORY

THEORIES OF MOTIVATION

1. MASLOW’S HIERARCHY OF NEEDS

TECHNIQUES OF MOTIVATION

MOTIVATION THROUGH JOB DESIGN

Job design may be defined as "specifying the tasks

that constitute a job for an individual or a group"
Fitting People to Jobs MOTIVATING THROUGH REWARDS

Routine and repetitive tasks make workers suffer Management of Extrinsic Rewards
from chronic dissatisfaction. To avoid this, the
To motivate job performance effectively, extrinsic
following remedies may be adapted.
rewards
1. Realistic job previews
1. must be properly managed in line with the
2. Job rotation following:
2. it must satisfy individual needs; the
3. Limited exposure
employees must believe effort will lead to
Fitting Jobs to People reward;

Instead of changing the person, management may 3. rewards must be equitable;

be consider changing the job. this may be achieved 4. rewards must be linked to performance.

with the use of the following:

1. Job enlargement

2. Job Enrichment

MOTIVATING THROUGH REWARDS

Rewards consists of material and psychological

benefits to employees for performing tasks in the
work place

Rewards may be classified into two categories

1. Extrinsic rewards MOTIVATION THROUGH EMPLOYEE

Those which refer to payoffs granted to the PARTICIPATION
individual by another party. Examples are money, When employees participate in deciding various
employee benefits, promotions, recognition, status aspects of their jobs, the personal involvement,
symbols, praise, etc. oftentimes, is carried up to the point where the task
2. Intrinsic rewards is completed

Those which are internally experienced payoffs The specific activities identified where employees
which are self-granted. Examples are a sense of may participate are as follows:
accomplishment, self-esteem and self- 1. Setting goals
actualization. 2. Making decisions
3. Solving problems, and
4. Designing and implementing
organizational changes
The more popular approaches to participation HOW LEADERS INFLUENCE OTHERS
includes the following: BASES OF POWER Legitimate Power

1. Quality Control Circles A person who occupies a higher position has

2. Self-managed teams legitimate power over persons in lower positions
within the organization
MOTIVATION THROUGH EMPLOYEE
PARTICIPATION Reward Power

Requisites to Successful Employee Participation When a person has the ability to give rewards to
Program anybody who follows orders or requests, he is said
to have reward power
To succeed, an employee participation program
will require the following: Coercive Power

1. A profit-sharing or gainsharing plan. When a person compels another to comply with

2. A long-term employment relationship with orders through threats or punishment, he is said to
good job security. possess coercive power.
3. A concerted effort to build and maintain
Referent Power
group cohesiveness.
4. Protection of the individual employee's When a person can get compliance from another

rights. because the latter would want to be identified with

the former, that person is said to have referent
OTHER MOTIVATION TECHNIQUES
power.
The advent of theories of individual differences
Expert Power
and the biological clock of human beings put
pressure on the engineer manager to adapt other Experts provide specialized information regarding

motivation techniques whenever applicable. their specific lines of expertise.

These refer to the following: WHAT IS LEADERSHIP?

1. Flexible work schedules Referred to as "the process of influencing and

2. Family support services supporting others to work enthusiastically toward

3. Sabbaticals achieving objectives.” Leadership is expected of

any manager in charge of any unit or division.

TRAITS OF EFFECTIVE LEADER

LEADING
A high level of personal drive
Leading is that management function which
‘’involves influencing others to engage in the work Persons with drive are those identified as willing to

behaviors necessary to reach organizational accept responsibility, possess vigor, initiative,

goals’’. persistence, and health. Drive is a very important

leadership trait because of the possibility of failure Creativity
in every attempt to achieve certain goals.
Ronnie Millevo defines creativity as "the ability to
The desire to lead combine existing data, experience, and
preconditions from various sources in such a way
There are some persons who have all the
that the results will be subjectively regarded as
qualifications for leadership, yet they could not
new, valuable, and innovative, and as a direct
become leaders because they lack one special
solution to an identified problem situation."
requirement: the desire to lead.
Flexibility
Personal Integrity
People differ in the way they do their work. One
A person who is well-regarded by others as one
will adapt a different method from another person's
who has integrity possesses one trait of a leader
method. A leader who allows this situation as long
Self-Confidence as the required outputs are produced, is said to be

The activities of leaders require moves that will flexible.

produce the needed outputs. The steps of LEADERSHIP SKILLS
conceptualizing, organizing, and implementing
 TECHNICAL SKILLS
will be completed if sustained efforts are made. For
 HUMAN SKILLS
the moves to be continuous and precise, self-
confidence is necessary  CONCEPTUAL SKILLS

Analytical ability or judgement

The ability to analyze is one desirable trait that a

leader can use to tide him over many challenging
aspects of leadership.

Knowledge of the company, Industry or community

A leader who is well-informed about his company,

the industry where the company belongs, and the
technology utilized by the industry, will be in a
better position to provide directions to his unit.

Charisma
BEHAVIORAL APPROACHES TO
When a person has sufficient personal magnetism LEADERSHIP STYLES
that leads people to follow his directives, this
 According to the ways leaders approach
person is said to have charisma.
people to motivate them.
 According to the way the leader uses
power.
  According to the leader’s orientation
towards task and people

WAYS OF LEADERS APPROACH PEOPLE

TO MOTIVATE THEM

 POSITIVE LEADERSHIP
 NEGATIVE LEADERSHIP

WAYS LEADERS USES POWER

 AUTOCRATIC LEADER
 PARTICIPATIVE LEADER
 FREE-REIN LEADER The situational characteristics vary from
organization to organization. To be effective, the
LEADER’S ORIENTATION TOWARDS
situation must fit the leader.
TASK AND PEOPLE
If this is not so, the following may be tried.
 EMPLOYEE ORIENTATION
 TASK ORIENTATION  Change the leader’s trait or behaviors.
 Select leaders who have traits or behaviors
CONTINGENCY APPROACHES TO
fitting the situation
LEADERSHIP STYLE
 Move leaders around in the organization
FIEDLER’S CONTINGENCY MODEL until they are in positions that fit them.

According to Fred Fiedler, ‘’leadership is effective  Change the situation

when the leader’s style is appropriate to the HERSEY AND BLANCHARD SITUATIONAL
situation.’’ LEADERSHIP MODEL

The situational characteristics is determined by 3 The situational leadership model developed by

principal factors: Hersey and Blanchard suggests that the most

 The relationships between leaders and important factor affecting the selection of leader’s

followers style is the development level of subordinate.

 The structure of the task Maturity has 2 components:

 The power inherent in the leader’s position
 Job skills and Knowledge
 Psychological Maturity

Blanchard and others elaborated on the leadership

styles appropriate for the various maturity level of
subordinates. They are as follows.
  ACHIEVEMENT-ORIENTED
LEADERSHIP

VROOM’S DECISION-MAKING MODEL

Vroom’s model of leadership is one that prescribes

the proper leadership style for various situations,

PATH-GOAL MODEL OF LEADERSHIP focusing on the appropriate degrees of delegation

of decision making authority.
The path-goal model of leadership espoused by
Robert J. House and Terence R. Mitchell, stipulates
that leadership can be made effective because
leaders can influence subordinate’s perception of
their work goals, personal goals, and paths to goal
attainment

By using the path-goal model, it is assumed that

effective leaders can enhance subordinate
motivation by.

 Clarifying the subordinate’s perception of

work goals
 Linking meaningful rewards with goal
attainment CONTROLLING

 Explaining how goals and desired rewards Controlling refers to the "process of ascertaining
can achieve whether organizational objectives have been
achieved and determining what should activities
should then be taken to achieve objectives better in
the future."

IMPORTANCE OF CONTROLLING

When controlling is properly implemented, it will

help the organization achieve its goal in the most
efficient and effective manner possible.

Deviations, mistakes, and shortcomings happen

LEADERSHIP STYLES
inevitably which increase the cost of producing
 DIRECTIVE LEADERSHIP goods and services. Proper control minimize the ill
 SUPPORTIVE LEADERSHIP effects of such negative occurances.
 PARTICIPATIVE LEADERSHIP
STEPS IN THE CONTROL PROCESS TYPES OF CONTROL

1. Establishing performance standards 1. FEEDFORWARD CONTROL

2. Measuring actual performance objectives
When the management anticipates problems and
and
prevents their occurrence, the type of control
3. Comparing actual performance to
measure undertaken is called feedforward control.
objectives and standards
4. Taking necessary action based on the 2. CONCURRENT CONTROL

results of the comparison. When operations are already ongoing and activities

ESTABLISHING PERFORMANCE to detect variances are made, concurrent control is

OBJECTIVES AND STANDARDS said to be undertaken.

In controlling, what has to be achieved must first 3. FEEDBACK CONTROL

be determined. When the information is gathered about a

1. Sales Targets - which are expressed in completed activity, and in order that evaluation and

quantity or monetary terms. steps for improvement are derived, feedback

2. Production Target - which are expressed in control is undertaken.

quantity or quality.
3. Worker Attendance - which are expressed
in terms of rate of absences.
4. Safety Record - which is expressed in
number of accidents for given periods.
5. Supplies Used - which are expressed in
quantity or monetary terms for given
periods.

COMPONENTS OF ORGANIZATIONAL
CONTROL SYSTEMS

1. STRATEGIC PLANS

It provides the basic control mechanism for the

organization. when there are indications that
activities are either set aside, modified, or
expanded.

2. THE LONG-RANGE FINANCIAL PLAN

The planning horizon differs from company to

company. most firms will be satisfied with 1 year.
engineering firms, however, will require longer are found out, collective actions may be
term financial plans. introduced.

3. THE OPERATING BUDGET 2. FINANCIAL RATIO ANALYSIS I

Indicates the expenditures, revenues, or profits t is a more elaborate approach used in controlling
planned for some future periods regarding activities. under this method, one account
operations. the figures appearing in the budget are appearing in the financial statement is paired with
used as standard measurements for performance. another to constitute a ratio. when deviation occur,
explanations are sought in preparations for
4. PERFORMANCE APPRAISALS
whatever actions id necessary financial ratios may
Measures employee performance. as such, it be categorized into the following types:
provides employees with a guide on how to do their
1. LIQUIDITY RATIOS
jobs better in the future.
These ratios assess the ability of a company to meet
5. STATISTICAL REPORTS
its current obligations. the following ratios are
It pertains to those that contain data on various important indicators of liquidity:
developments within the firm. among the
A. CURRENT RATIO
information which may be found in a statistical
report. This shows the extent to which current
assets of the company can cover its current
6. POLICIES AND PROCEDURES
liabilities.
Policies refer to ‘’the framework within which the
current ratio = current assets / current
objectives must be pursued.’’ a procedure is ‘’ a
liabilities
plan that describes the exact series of actions to be
taken in a given situation.’’ B. ACID-TEST RATIO

STRATEGIC CONTROL SYSTEMS This is a measure of the firm’s ability to pay

off short-term obligations with the use of
To be able to assure the accomplishment of the
current assets and without relying on the
strategic objectives of the company, strategic
sale of inventories
control systems became necessary. These systems
consist of the following: acid-test ratio = (current assets -
inventories) / current liabilities
1. FINANCIAL ANALYSIS
2. EFFICIENCY RATIO
The success of most organizations depends heavily
on its financial performance. it is just fitting that These ratios show how effectively certain assets or
certain measurements of financial performance be liabilities are being used in the production of goods
made so that whatever deviations from standards and services. among the more common efficiency
ratios are:
 A. INVENTORY TURNOVER RATIO its assets, owner’s equity, and sales. among the
more notable profitability ratios are as follows:
This ratio measures the number of times an
inventory is turned over (or sold) each year. A. PROFIT MARGIN RATIO

inventory turnover ratio = cost of goods This ratio compares the net profit to the
sold / inventory level of sales.

B. FIXED ASSET TURNOVER profit margin ratio = net profit / net sales

B. RETURN ON ASSETS RATIO

This ratio is used to measure utilization of This ratio shows how much income the
the company’s investments in fixed assets, company produces for every peso invested
such as its planned and equipment. in assets.

fixed asset turnover = net sales / net fixed return on assets ratio = net profit / assets
assets
C. RETURN ON EQUITY RATIO
3. FINANCIAL LEVERAGE RATIOS
This ratio measures the returns on the
This is a group of ratios designed to assess the owner’s investment.
balance of financing obtained through debt and
return on equity ratio = net income / equity
equity sources. some of the more important
leverage ratios are as follows:

A. DEBT TO TOTAL ASSETS RATIO IDENTIFYING CONTROL PROBLEMS

This ratio shows how much of the firm’s When operations become complex, the engineer

assets are financed by debt. manager must consider useful steps in controlling.
KREITNER mentions three approaches:
debt to total asset ratio = total debt / total
assets 1. EXECUTIVE REALITY CHECK

B. TIMES INTEREST EARNED RATIO Employees at the frontline often complain that
management imposes certain requirements that are
This ratio measures the number of times
not realistic. With this, the engineer manager of a
that earnings before the interest and taxes
construction firm could, once in a while, perform
cover or exceed the company’s interest.
the work of one of his laborers. With the said action
times interest earned ratio = (profit before exposes the engineer manager to certain realities.
tax + interest expense) / interest expense
2. COMPREHENSIVE INTERNAL AUDIT
4. PROFITABILITY RATIOS
An internal audit is one undertaken to determine
These ratios measure how much income or net the efficiency and effectivity of the activities of an
income a company is able to generate in relation to organization.
3. SYMPTOMS OF INADEQUATE 2. Becomes overly involved in the employees’
CONTROL work.

If a comprehensive internal audit cannot be availed A micromanager tends to be overly engaged in

of for some reason, the use of a checklist for every detail of their employees' workflow.
symptoms of inadequate control may be used.
3. Discourages independent decision-making.
Kreitner has listed some of the common symptoms
as follows: Micromanagers prefer to be in control and lean
toward a more centralized approach to decision-
making.

4. Asks for frequent updates.

In addition to controlling processes,

micromanagers may also need constant updates.
WHAT IS MICROMANAGEMENT?
5. Focuses on details rather than the bigger
Micromanagement is a pattern of manager
perspective.
behavior marked by excessive supervision and
A micromanager tends to look at tiny details and
control of employees’ work and processes, as well
micro-steps rather than the bigger picture of what
as a limited delegation of tasks or decisions to staff.
employees need to achieve, in the context of a
company's overarching goals and strategy.

6. Has an unusually high turnover of employees.

Employees of micromanagers tend to feel

demotivated, untrusted, and disempowered, and
thus experience dissatisfaction with their jobs.

7. Is rarely satisfied with deliverables.

SIGNS OF MICROMANAGING
Micromanagers tend to scrutinize the performance
1. Resists delegating work. of employees, rather than encouraging and guiding

Micromanagers like to maintain control and find it them, reducing their motivation and confidence.

difficult to delegate tasks. This means that 8. Sets rigid deadlines.

employees often wonder if they can take on tasks
Micromanagers may set unrealistic deadlines
without direct instruction, causing confusion and
without considering unforeseen changes or delays.
reducing motivation and job satisfaction.
This tendency may stem from the need to be in
control or a lack of flexibility when dealing with
others.
9. Measures and monitors every task.

Meticulous oversight typically speaks to a

micromanager's desire to control and discomfort
with delegating tasks.

HANDLING MICROMANAGEMENT IN
THE WORKPLACE

1. Initiate communication.

Request a meeting with the person who is

exhibiting micromanaging tendencies and affecting
your well-being.

2. Ask for clarity around expectations.

Ask for specific key performance indicators that

you can focus your actions around.

3. Demonstrate competence.

Be proactive about showcasing your abilities and

achievements in the workplace, so that your
manager begins to trust you to deliver quality work
on your own, without excessive input from your
manager.

4. Ask for feedback.

Take the initiative to show that you are open to

your manager's input and want to implement fresh
ideas to improve performance. 5. Seek support. If
the micromanaging continues and affects your
productivity, reach out to HR or a higher manager
to mediate and handle the issue in a professional
manner.
MANAGING PRODUCTION AND SERVICE Right Quantity
OPERATIONS
The manufacturing organization should produce
Organizations are designed mainly to produce the products in right number. If they produced in
products or services. If these organizations must excess of demand, the capital will block up in the
survive and grow, the operation function must be form of inventory and if the quantity is produced in
undertaken in the most economical manner short of demand, leads to shortage of products.
possible. As most companies are expected to make
Right Time
profits, any activity, including those for operations
must be managed to contribute to the Timeliness of delivery is one of the important

accomplishment of such objectives. parameter to judge the effectiveness of production

department. So, the production department has to
WHAT IS PRODUCTION?
make the optimal utilization of input resources to
According to Elwood Butta “production is a achieve its objective.
process by which goods or services are created”.
Right Manufacturing Cost

Manufacturing costs are established before the

product is actually manufactured. Hence, all
attempts should be made to produce the products at
pre-established cost, so as to reduce the variation
between actual and the standard (pre-established)
cost.
WHAT IS PRODUCTION MANAGEMENT?

E.S. Buffa management defines as, production

WHAT IS OPERATION?
“Production management deals with decision
making related to production processes so that the This refers to “any process that accepts the inputs
resulting goods or services are produced according and uses resources to change those inputs in useful
to specifications, in the amount and by the schedule ways.”
demanded and out of minimum cost.”
OPERATIONS IN AN ORGANIZATION CAN
OBJECTIVES OF PRODUCTION BE CATEGORIZED INTO:
MANAGEMENT
Manufacturing Operations
Right Quality
A conversion process that includes manufacturing
The quality of product is established based upon yields a tangible output: a product
the customers’ needs. The right quality is not
Service Operations
necessarily the best quality. It is determined by the
An open transformation process that includes
cost of the product and the technical characteristics
service yields an intangible output (a deed, a
as suited to the specific requirements.
performance, an effort) through the appropriate  Inventory Management
application of resources (material, labor,  Sustainability
information, and the consumer as well).
In Service Environment:
EXAMPLES OF FINAL GOODS AND SERVICE
 Service Delivery
ARE AS FOLLOWS:
 Optimization Capacity
1. Industrial chemicals like methylene chloride,  Management
borax powder, phosphoric acid, etc., which are  Service Quality
produce by chemical manufacturing films;  Customization
2. Services like those for the construction of ports,  Cost Efficiency
high-rise buildings, roads, bridges, etc., which are
OBJECTIVES OF OPERATIONS
produced by construction firms;
MANAGEMENT
3. Electrical products like transformers, circuit
Objectives of operations management can be
breakers, switch gears, power capacitors, etc.,
categorized into customer service and resource
which are produced by electrical manufacturing
utilization.
firms;
Customer Service
4. Mechanical devices like forklifts, trucks,
loaders, etc., which are produced by manufacturing Aspects of customer service: specification, cost

firms; and timing. The operating system must provide

something to a specification which can satisfy the
5. Engineering consultancy services like those for
customer in terms of cost and timing. Thus,
construction management and supervision, project
primary objective can be satisfied by providing the
management services etc., which are produces by
‘right thing at a right price at the right time’.
engineering consultancy firms.
Resource Utilization
WHAT IS OPERATION MANAGEMENT?
Is to utilize resources for the satisfaction of
Aldag and Stearns accurately defined operations
customer wants effectively, i.e., customer service
management as ‘’ the process of planning,
must be provided with the achievement of effective
organizing, and controlling operations to reach
operations through efficient use of resources.
objectives efficiently and effectively.”
Inefficient use of resources or inadequate customer
IMPORTANCE OF OPERATIONS service leads to commercial failure of an operating
MANAGEMENT system.

In Production Environment: OPERATION MANAGEMENT

FRAMEWORK
 Resource Optimization
 Quality Control Managing operations can be enclosed in a frame of

 Efficiency general management functions. Operation

managers are concerned with planning, organizing, OPERATION AND THE ENGINEER
and controlling the activities which affect human MANAGER
behavior through models.
The engineer manager stands at the intersection of
 Planning technical expertise and strategic leadership,
 Organizing ensuring that production processes run efficiently
 Controlling and that service operations meet customer

 Behavior expectations.

 Models RESPONSIBILITIES OF THE ENGINEER

- Refers to the creation of representations MANAGER
of management problems and
Leadership in Production and Service
organizations in orderto determine
Management
outcomes of proposed courses of action.
As operation managers plan, organize, The engineer manager serves as a leader within
and control the conversion process, they both production and service operations, providing
encounter many problems and must guidance to teams and ensuring that the
make many decisions. They can organization's goals are met.
simplify their difficulties using models
Planning and Scheduling
(like aggregate planning models for
examining how best to use existing One of the core responsibilities of an engineer
manager is the development and implementation of
capacity in short-term).
detailed production schedules. Planning is crucial
Types of Models in Production
to ensure that resources, both human and material,
Operations and Management:
are allocated effectively.
1. Verbal Models - express in words the
Process Improvement
relationships among variables.
Continuous improvement is a key aspect of the
2. Schematic Models - pictorial relationship
engineer manager’s role. By adopting
among variables
methodologies such as Lean manufacturing, Six
3. Iconic Models - scaled physical replicas Sigma, or Kaizen, the engineer manager strives to
of objects or processes. eliminate inefficiencies and enhance the
productivity of the operation.
4. Mathematical Models - functional
relationships among variables by using Strategic Decision-Making and Problem-Solving
mathematical symbols
An engineer managers are constantly faced with
strategic decisions that can affect the long-term
success of operations. These decisions often
require an in-depth analysis of data, using key
performance indicators (KPIs) such as machine  Machine-paced Line Flow
utilization, product cycle time, and labor  Continuous Flow
productivity to guide actions.  Batch/Continuous Flow Hybrid

Collaboration Across Departments Service Processes

The engineer manager must collaborate with  Service Factory

various departments within the organization to  Service Shop
ensure that operational goals align with broader  Mass Service
business objectives.  Professional Service
Adoption of New Technologies and Automation
MANUFACTURING PROCESSES
An engineer managers play a critical role in the Manufacturing processes are those that refer to the
integration of new technologies into the operations making of products by hand or machinery.
process. With advancements in automation,
1. Job Shop - A job shop is one whose production
artificial intelligence (AI), and data analytics,
is “based on sales orders for a variety of small lots”.
engineer managers must stay ahead of
technological trends that can improve the 2. Batch Flow - The batch flow process is where
efficiency of production and service delivery. lots of generally own designed products are
manufactured.
Ensuring Quality Control and Compliance
3. Worker-paced Assembly Line- An assembly
An engineer managers are responsible for setting
line refers to a production layout arranged in a
up quality control measures that ensure the final
sequence to accommodate processing of large
output meets or exceeds customer expectations.
volumes of standardized products or services.
This includes the creation of testing procedures,
product inspections, and the use of statistical 4. Machine-paced Assembly Line - This type of
quality control techniques. Compliance with production process produces mostly standard
regulatory standards is also a critical aspect of the products with machines playing a significant role.
engineer manager’s role.
5. Continuous Flow - The continuous flow
TYPES OF TRANSFORMATION PROCESS processing is characterized by the “the rapid rate at
which items move through the system”.
The engineer manager must have some knowledge
of the various types of transformation process. 6. Batch/ Continuous Flow Hybrid - This method
They are as follows: of processing is a combination of the batch and
continuous flow.
Manufacturing Processes

 Job Shop
 Batch Flow
 Worker-paced Line Flow
SERVICE PROCESSES generates for various production facilities, and
arranging for the procurement of these facilities.
Service processes are those that refer to the
provision of service to persons by hand or with Production planning is a very important activity
machinery. because it helps management to make decisions
regarding capacity. When the right decisions are
1. Service Factory - A service factory offers a
made, there will be less opportunities for wastage.
limited mix of services which results in some
economies of scale in operations. Scheduling is the "phase of production control
involved in developing timetables that specify how
2. Service Shop - A service shop provides a diverse
long each operation in the production process
mix of services
takes. "12 Efficient scheduling assures the
3. Mass Service - a mass service company provides optimization of the use of human and nonhuman
services to a large number of people resources.
simultaneously.
Purchasing and Materials Management
4. Professional Services - These are companies
Materials management refers to "the approach that
that provide specialized services to the other firms
seeks efficiency of operation through integration of
or individuals.
all material acquisition, movement, and storage
activities in the firm".

IMPORTANT PARTS OF PRODUCTIVE Inventory Control

SYSTEMS
Inventory control is the process of establishing and
Productive systems consist of six important maintaining appropriate levels of reserve stocks of
activities as follows: goods. As supplies and materials are required by

Product Design firms in the production process, these must be kept

available when they are needed. Too much reserves
Product design refers to "the process of creating a
of stocks will penalize the firm in terms of high
set of product specifications appropriate to the
storage costs and other related risks like
demands of the situation." Companies wanting to
obsolescence and theft. Too little reserves, on the
maintain or improve its market share keep a
other hand, may mean lost income opportunities if
product design team composed of engineers,
production activities are hampered. A balance
manufacturing, and marketing specialists.
between the two extremes must be determined.
Production Planning and Scheduling
There are ways of achieving proper inventory
Production planning may be defined as control. They are as follows:
"forecasting the future sales of a given product,
1. Determining reorder point and reorder quantity
translating this fore- cast into the demand it
2. Determining economic order quantity
3. The use of just-in-time (JIT) method of inventory production and to keep customers satisfied. Poor
control quality control breeds customer complaints,
returned merchandise, expensive lawsuits, and
4. The use of the material requirement planning
huge promotional expenditures.
(MRP) method of planning and controlling
inventories.

Work-Flow Layout

Work-flow layout is the process of determining the

physical arrangement of the production system. In
the transformation process, the flow of work may
be done either haphazardly or orderly. The job of
the operations manager is to assure that a cost-
effective work-flow layout is installed.

A good work- flow layout will have the following

benefits:

1. Minimize investment in equipment.

2. Minimize overall production time.

3. Use existing space most effectively.

4. Provide for employee convenience, safety, and

comfort.

5. Maintain flexibility of arrangement and

operation.

6. Minimize material handling cost.

7. Minimize variation in types of material-handling

equipment.

8. Facilitate the manufacturing (or service) process.

9. Facilitate the organizational structure.

Quality Control

Quality control refers to the measurement of

products or services against standards set by the
company. Certain standard requirements are
maintained by the management to facilitate
MANAGING THE MARKETING FUNCTION  When improvement is not possible,
“extras” or “bonuses” are given to clients.
WHAT IS MARKETING?

Marketing is a group of activities designed to

facilitate and expedite the selling of goods and
services.

WHAT IS MARKETING CONCEPT FOR

ENGINEERS?

The marketing concept states that the engineer

 For engineers, the product is the most
must try to satisfy the needs of his clients by means
evident component of marketing. The main
of a set coordinated activities.
responsibility of an engineer is to design
When clients are satisfied with what the company and develop new goods and services. While
offers, they continually provide business. technology is vital, engineers can produce
better products through marketing.
THE ENGINEER AND 4 PS OF MARKETING
 Engineers are assisted by marketing in
The engineering organization will be able to meet developing products that satisfy consumer
the requirements of its clients depending on how it demands. Marketing seeks to ascertain how
uses the four P’s of marketing which are as follows: consumers derive value from these items.
 Product  According to the first law of consumer
 Price behavior, people purchase products based

 Place on their personal meanings rather than their

 Promotion functionalities. Because of this law,

engineers must have a thorough
PRODUCT
understanding of psychology in addition to
 In marketing, the term “product” includes engineering knowledge when developing
tangible (or intangible) items and their new products.
capacity to satisfy specific needs.
PRICE
 The client will evaluate the services
provided by the engineer manager based on  Price refers to the money or other

whether or not his or her exact needs are considerations exchanged for the purchase

met. or use of the product, idea, or service.

 When a competitor comes into the picture  Some companies use price as a competitive

selling the same type of service, the tool or as means to convince the customer

pressure to improve the quality of services to buy.

sold will be felt.

  When products are similar in quality or them. If time is of the essence, the nearest
other characteristics, price will be strong firm will be patronized.
factor on whether or not a sale will be made.  It is very important for companies to locate
in places where they can be easily reached
To identify a successful price, you will want to
by their customers. Not every place is the
thoroughly understand your target audience and
right location for any company.
their willingness to pay for your product. Some
 When a company cannot be near by the
questions you might ask yourself as you are
customers, it uses other means to eliminate
considering your product’s price include:
or minimize the effects of the problem.
 What is the price range of your product’s
Manufacturing companies can choose or adapt
competitors?
all of the above-mentioned options.
 What is the price range of your target
audience? Service companies like construction firms
 What price is too high for your audience? adapt the modified versions.
What price is too low?
An example is the engineer manager of a
 What price best fits your target market? construction firm who gives commissions to
When a type of service becomes standardized, whoever could negotiate a construction
price can be strong competitive tool. When a contract for the firm.
construction firm, for instance, charges a flat 10 PROMOTION
percent service fee for all of its construction
 McCarthy and Perreault define promotion
services, a competitor may charge a lower rate.
as "communicating information between
Such action, however, will be subject to whether or
seller and potential buyer to influence
not the industry will allow such practice
attitude and behavior.
 When engineer managers have products or
services to sell, they will have to convince
buyers to buy from them. Before the buyer
makes the purchasing decision, however,
he must first be informed, persuaded and
influenced.
 Some questions to consider as you are
working on your product promotion
include:
PLACE What is the best time to reach your target
audience?
 If every factor is equal, customers would
What marketing channels are most
prefer to buy from firms easily accessible to
effective for your target audience?
 What marketing messages would most - It refers to the oral presentation in a
resonate with your target audience? conversation with one or more
What advertising approaches are most prospective purchasers for the purpose
persuasive to your target audience? of making the sale.
- Personal selling may be useful to the
There are promotional tools available and the
marketing efforts of the engineer
engineer manager must be familiar with, APPS:
manager. For instance, he is the general
 Advertising manager of a firm manufacturing spare
- Nylen defines advertising as "a paid parts, he may assign some employees to
message that appears in the mass media personally seek out spare parts dealers
for the purpose of informing or and big trucking companies to carry
persuading people about particular their product lines.
products, services, beliefs, or action".  Sales Promotion
- The mass media referred to include - Any paid attempt to communicate with
television, radio, magazines, ana the customers other than advertising,
newspapers. publicity, and personal selling, may be
- If the engineering manager wants to considered as promotion.
reach a large number of people, he may - This includes displays, contests,
use any of the mass media depending on sweepstakes, coupons, trading stamps,
the specific needs and his budget. prizes, samples, demonstration, referral
 Publicity gifts etc.
- The promotional tool that publishes - Contest and sweepstakes are very
news or information about a product, popular sales promotion tools.
service or idea on behalf of a sponsor
but is not paid for by the sponsor is so
called publicity. STRATEGIC MARKETING FOR
- The mass media is also the means used ENGINEERS
for publicity.
What is strategic marketing?
- If the engineer manager knows how to
use it, publicity is very useful Companies, including those managed by engineer

promotional tool. The message may be managers, must serve markets that are best fitted to

presented as a news item, helpful their capabilities. To achieve this end, a very

information, or an announcement. important activity called strategic marketing is

 Personal Selling undertaken.

- A more aggressive means of promoting Under this set-up, the following steps are made:
the sales of a product or service is called
 Selecting a target market
personal selling.
 Developing a marketing mix
Selecting a Target Market In selecting a target market, the following factors
must be taken into consideration:
Who is the target market?
 Size of the market, and
A market consists of individuals or organizations,
 The numbers of the competitors serving the
or both, with the desire and ability to buy a specific
market
product or service.
Developing a Target Mix
Maximize sales and profits
After a target market have been identified,
To maximize sales and profits, a company has the
marketing mix must be created and maintained.
option of serving entirely or just a portion of its
The marketing mix consists of 4 variables.
chosen market.

Market Segments  Product

 Price
Within markets are segments with common need
 Promotion
and which will respond similarly to a marketing
 Place
action

STEPS NECESSARY IN SELECTING A

TARGET MARKET

 Divide the total markets into groups of

people who have relatively similar product
or service needs.
EXPANDED THEORY
 Determine the profit potentials of each
segment 7 P's of marketing. Which are:

 Make a decision on which segment/s will  Product

be served by the company.  Price
Factors Used in a Target Market  Promotion
 Place
A target market must have the ability to satisfy the
 Process
profit objectives of the company
 Packaging