Engineering Management Manual

MANAGEMENT
ffi#h
INTROOUCTORY CASE
R.E. CONSTRUCTION: l7S NOW or NEVER
When Engr. Romeo Estabillo finished hts Civil Engineering course at Mapua tnstitute
of Technology, he icok the board exarnination and passed jt in 1981, Wanting to start
independently, he went back to his hometown (Santiago City) to organize his own
construction firm. In his first few years of operation, he accepted contracts for the
construction of residential houses. As he gained experiences, his clients grew in number,
and even the most prominent persons ln provirrce of lsabela availed of his services.
At the sta;! he hired two assistants to heip him in his daity routine as a contractor,
One of the two assistants, Mr. Silvino Santiago, v./as a third year civil engineering student
who had stopped schooling due to financlaldifficultjes. His task was as draftsman. His duty
was to produce ali documents relating to physical requirements of the various contracts
entered into by boss. Among the documents are the building plan, specificaiions, bill of
rnaterials, building permit, etc. His additional duty was to assfst Engineer Estabillo in
supdrvising the foremen and workers at the various constructjon sites.
The second assistant, Mr. Romulo Mamaril, was ass,gned to coordjnate purchasing,
bookkeeping, and other related administrative activities.
At the third year of operations, Engr. Estabillo was already directing.operations in

his newly constructed office inside his residentiai compound. By this time, iwo more female
employees were hired to assist in the various tasks performed in the off,{c€.
By 1994, Engr. Estabillo reviewed his company's payroll;.tt jndicated that he has six
full-time civil engineers, two draftsmen, ten administrative personnel, one messenger, and
one security guard. The foremen and laborers working at the various prdjects were
contractual.
By June, 1996, Engr. Estabilio felt that business. was continuously growing, so he
will have to secure the services of four additional civil engineers on a full- time basis. As he
was directly superuising all operations, he now feels that he may not be able to perform his
functions effectively if he will push through with the plan, He wantsto make a decision, but
he is apprehensive. He thinks operations are now more complex. With this lhought, he
pondered on how he will go about sofuing the problem.
ENGINEERING MANAGEMENT
CHAPTER I
OR6AN IZATION & MANAGEMENT
The 2L* century is here. ln the new

workplace everyone m
chansins societv with constantrv
complacency are out. Thjs is the
shiftrng demands and opp"^";;;. ,:il;T::: ,Ti:it:t;:fftij:l
tl
be a handbook o,,n" 0,,,n",,.,u1iffi1"il;li""j|if;ir,ii:,"fi::fii".i,'?JfffJili;:ffil::?
wodeat the very rime that it is beir
t"pidiy created' Fost compony reports
uncle rstand in' for anuon. ,ô the importa nce ol th ese core
,"a,tt
are
work itserr is changing; the gro;;::ffi:Tr-,,;i11. ;'"il:ij:""s rast ihanging; the natureor
of success; p"rron"r .nd org-inizationar, .,;:;

is evolvins: ;#;#;iffi::i::nffi jff".:I:i
us all and offer "unparalleled opporlunity
and unprecedented uncertainty,,.
And in this age of continuous
a compelling message must be heard
'irlX, ' - smort peopr" or) iôn
deqte their own
"o^ponies
WHATts AN oR6ANIzarioN?
An orgdnization isa collection ofpeople

wo*ing togetherto achieve a common
on this definition, an organization has the following
- a
purpose. gased
characteristics:
From the given illustration, an organization

is a
dei,berate arrdngement of people
to accompiish some
specific purpose.
'It has distinct purpose

which is typically expressed
in telm of goal Or set of goals that it
hopes to accomplish,
the purpose of any organization is io produce
Easically,
goods and/or render services that Charactetlstics of an Organl2ation
sat,sfy the needs of
idearrv be produced ror
;Tffi:
iustify its existence. Furthermore, its purpose
"i"'::'::"':::"]:::i:':::"t]
''customers'satisfa.lion(,,r^
1o''o must
be tied
--- rvr crrv
anv ortanlzatlon
orsanjzation to be able
quafity products/sdrvices"
abre to
''customers' d.i^.a-
satisfactions,, to gain strength --. performance
--.L anci and
"r"."ra"".
. lt is composed
of people, oneperson workingalone
is notan otrganizatior''
perform the works necessary tc achieve and it takes people to
its goals.
And a structure that may be open and frexible

- with no crear duties and precise job duties
strid adherence to explicit job ari.angements _ hence, or
a sjmple network
traditionar with crearry defined rutes, resutations ,"0
,of o.r"rior,",irl?::";:'T:ltjjrffjJ,ffJ:;
st.uctu.al arrangement an organization uses, it does require
IIre qelroerate
some delibe stlusture so members'work
relationships are clarified.
ENGINEERiNG
MANAGEMENT
TRADmoNAt ORGANtzATIoit
vs, CoNTEMpoRARy ORGANtzaTloir
Aithough the above three characteristics

are imporlant in the definition
rs, rhe nature of an organization of what an or'anization
is changing,
whv are or'ani'ations changing?

Because the worrd around them
has changed and wi, continue
srobar and tectrnorosicar cia;", n.*"**r"o
::i:itfi;".i.1"":1,il,: ,.._: consistently attain thejr goals)
an environrnent in which
wo* done. musi embrace new ways of getting
. Dynamic
. Flexible
o Work js defined by job positions o Skills-focused
o lndividua riented r Work is defined in terms of tasks
to
Io be
. Permanent jobs done
. Team oriented
' Command oriented
o o Temporary jobs
Managers always
. Rule orienied rnake decisions . invotvement oriented
. Relativelyhomogeneousworkforce . Employees partjcipate in decision
making
r Workdays defined as 9 to 5 . Customer oriented
o Hiera rchica relation ips . Diverse workforce
I sh
o Wo*days have no time boundanes
' Worf.. at organizationaJ facilrty during r tateral ahd networked relationships
speclfic hours
. Work anywhere, anytime
Table 1.1 - ChanginC Ortani."tlo"

tnt list show, today's organizations
"oove arc becoming more open, flexible
.n"nr"r.ot and responsjve to
WHATIs MANA6EMENT?
Essentiall, the role o,

managers is to guide organizations
roward goal accomplishment.
organizations exist for
All W"o"onr'r"r,
certain
purlcoses or goals and
managers are - PJoress of rea{hing organizaflonal
goals by working with and
responsible for combining throuih_people and other organizational
and usrnp rerou.".rl g"n.u. l,
organizational r"rour."r-,o has the following three
main cha.acterisflcs:
that their organizations achieve"n*."" 1. rr :s a process or series
of continujng and related activitjes.
therr 2. lt involves and concentrates
Purposes. Management, therefora
: on r( -
involves ensuring
,t., ,orf, ,.,iui i",
t-,ea.h
r
"s
*, es e g; a;;;;;;;; *,lll:fi ',t#lll"ll ;,"""
and other orga nizational
are completed efficiently and - Process of deciding the
reso u rces.
best way to use the organization,s
effectively by the people .esponsibre
and to disco urase ind ivr.d ua t a;,,r,* ;;';#.:;:::H,j,:;

"il:::::: :
;.""",
As managers use their !'esources,
they must strive to be boti effeqive ard efiicient.
/ ManegetlF]l Effectiv€nesr refers to management use

of organizational resources in me€ting organizational
goals. lt is often described as ,doing
the right thingy, _
that is doing those work activities that will helo
orgarization reach its goals.
/ ManaFrial Efficiensl is the degree to which

organizational resources contribute to productivitv.
lt
refers to getting the most output
from the least amount
of inputs.
As reflected in tigure, efficiency is

concerned wlth the means of getting things done;
eftectiveness is concer.red wjth
the ends or the attain.ment of organitational
goals.
Efficient
(most resources
Not reachlng goals and Reaching goals and not
contribute to not wasting resources was!tng resources
, production)
Inetflcient
(few resources Not reachlng goals.and
contribute to Reachlng goals and
wasting resources wasting resources
production0
I!
Inefiectivc Effectlve
(littie progress towar&,,' l
(substantial progress
goali)
organizationa I . toward organlzational
GOAL ATTAINMENT gOAISJ
Various combinationie of Managgrial

Efrsdiveness and Managerial Efflciency
Based on the above matrix
the concepts of managerial effecti\
related. A manager could be relativety efficiency are obviously
ineffective - within the _^,'"n"tt "no
makins very littre prosress toward
soai attainment _ primarity il""r"".$H,Jii:JH,ilr.il,::::j:
utillzation of resources during
the production proc"rr. ."n;;r;;
despite being inefficient if demand ;"nger coutd be somewhat effdctive
for finished ,.r0, ';
,"'lirn if,"i t"
,;
$igh price per unit sold and thui absorb O manager crn set an extremely
,;;""":;"::":lo_: :1"
inefficiency and inen*';;;":,;;'" ;:ff:;::::ffi: ;:ili:i;:ffi:'"', ;"" ;; ;;;;t;
EN6INEERING MANAGEMENT.
The Universality of Management
Management js universarry
aI,,ofganjzations.
needed in
Organizatjons that are
well
managed develop a loyal
customer base, gfow
. andlcrospef,
By studyjng managemenr,
one will
a .ecogn,ze poor
.:.:jon
wlrK ro get it corrected.
managernent and
ln addition. one wi/l
be
abte to recognize good management
and
il whether it is an organization with
-uL:.ur"U"
w_nlch one is simply jnteracting
or whether it is
an organizatjon in which
one is employed.
WHo ARE MAr{AGERs?
It used to be fairly simple

to d, *no managers weri: rhey were
organizational members the
who told uthers
o.ltnt what to do and how to
"t;
to different;ate
r;;;;; do it. rtwaseasy
ron-menagerial employees;
oescribed those the latter term
o rga n iza tion aI
members who worked
coordinates and oversees

:.::11:0-ne )/ho the..work of
so rhat ofsanizational
:":_1j,::r': soars can be
ji.llll,'n"|.1 . r1,,lg in positions with a wde varjety
!,!,c5,. rney mobillze
_",_ ieople and resources to
the work of oreanrzarrons
:tj:_ill* and therr
qu!tity inspector leader, equiBment

or,.r.;;;;l;;;:;" '".t operator, maintenance
technician,
i,," r^Jil 1t""i;"1i,, jr?'"'::T ::rs

sn a r a ch i ev
tn e m en t- it,s a
jil:'I ffi,:
5,?iilJ;,,1"",",.*#il":,":::1"#:*,it:I'.frT3
"1'ff *g:#l:iE
*lt+*$-i**f
traditionally structured
*1ffipffilu$Wl$li
o*..,o"Jir-1 organizations (pyramid
shaped) the types of
managers are often
5
- orsanization-wide decisions and

;5r";T',ll;':r"':1or,r:t",.'"lins
organization
estabtishins the pJans and
They should pay special attentt""
envrronment, be alert to pot *. .*i,n"r
waysordearins."nn**,.'f.ll'i',ll;:L:.ffi "
(cEo), chiefoperating
officer (coo), etc)
tr;f ;:TJ:li$,i::,Hl"JJ,,i".i**
+ Middrs Managers idclude
- atlevels of management between
organization, They feport the first rever and the top Jever of
to top managers anrj oversee the the
wci* of large departments or divisions.
#"1:Hlj fti?: jlj"i'l;":": i'rrement actions prans *n,o,.n w*h hisher rever obiectives,
*," o.g"n ."tion : ilff
":::"T';iiil"
rmprementinS comprex projects
;:lJ::i :::,'":,*;:JTflt**1fil,,*
that fequire ,t,.
ofganjzation. (i.e. regional *in,*n"^ .penons from different pans
of
manager, project leader, pfrnt "i
rn.n.g"r;,Oiuirion manager etc,J
$ First-Line Manag€rs
- the lqr
:*:l* j{[#;,:,:,.#,LT,""j,,ffillTl, :ffi ;"'n J::HLiil i "#::,1

manaser departme",."""r", team leader, ,rtir, r*.e"i oii riJ
"lll"J'.tj!;tt;rrlri",l*it
rU organizations get
wo|k done by using the above traditi
^--.. ^,lot affecting manalerial won(
today, the concept of the ,"l1ll oll"tio"t form. Amons the
-T3,-.Tl-r:: js ore or ths rns5t
:il:["Jfl[',fi1E symboric. rrris vrew offers
a nilT:;ff"ifi]:;::.,:"il:
.l
WHATDo MANAGERs Do?
oescribing what managers do isn't

easy or simple. Justas no two organizations
managers'jobs are arike' oespite this arearike, no two
fact, management researche* have, afterrnany years
developed three specific categorization of study,
schemes to describe what maniger oo:
tunctions, roles and skills.
Managemqnt F!nctions
Tne management process involves the

four function of management as depicted in
Fig. 1.7. All managers are responsibl€
for the
four functions, although research suggests
that
the relative emphasis on each an varv
somewhat by managerial level. Top ,an"g"r,
may spend relatively more time on planning
and organizing functions, while first-line
managers may spend more tlme on control.
Time spent in leading,/influencing appears
relatively conslstent across all management
rev€ls.
Planning - defining 80ars, estEblishing strdtegy

and developing plans to integrdte and
activities. coordinate
i& Or€anizlng - determining what needs to be done, how it wiilbe
cione and who is to do it,
lnfluenclng -
motivating leading and any other adions
involved in deallng with people.
*, Controlling- monitoring activities
to ensure that they afe accomplished as planned
. In reality, what managers do may

not always happen in the abov€ sequence.
netate the importance 9f these fu But that doesn,t
is that manasers do thev are perrormed, the ract
eb;,
";;;Hi:lljjlltilll,ll'jir;T:lf "
Management Roles
rhe term manoEement fore refersto

specific categories of manageriar
behavior. (think of the
vou plav - student, emproyee, student grc;p
lljj"*": :"*r
different behaviors vou've epe*ed memuir, sioring and so forth _ and the
to piav in these rlres)r i; r;;*" in Tabre
1.2, MintzberSls 10
are srouped around interperson.r .er"iionriipl,-+,e
;lli::}fi#-' rransfer or inrormatioi ana
+ Interp€rsonal roles - invoh

o rsa n jzation) an
d o,n". o u,,",,n"", llJ:::J:';:[iffi ou ts id e th e
,T 1,ff ::,::
tt Intormational roles _ involve collecting,
recejving and disseminating information
ENGiNEERING MANAGEMENT
.5
* j::.:,^":,"j^r::s - enta,ir making decisions or choices;

involve using information to make
oectstons to solve probJems
or aooress opportunities
sy.bori. h""E-iE@Fie-#? Greeting visitors; signlii

number of routine duties of a legal
or social oocUments
nature.
Responsible for the motivation of Perforining uinua y-

subordinates; stafling, training, and thst involve subordinatesIEri,tiE
associated duties.
Maintains sun auv"tof,- nutwo*

o-iEiG
contacts and informen who provide
A ck nowiedging -ia r:ll--?o,-il
favors external board work; performini
other actlvities that involvi
outsiders
Monitor
ffiand extemai information io develop
neading periodic!Fiiffi
Inorough understarrdinA maintaining personal contacts
of organizatjon
and environment.
tr:n:Tit inforrnation - .ecO-v"?-To-il

oursrders or from subordinates H old ing rn fi crmSti-6iif iGti-[q-
to members
of the organization. maKrng
-phone calls to relay
informatioo
Tra nsm its inro- rmatGn-To -oGEe-F
or_Sanrzation s plans, policjes,
on Hotding board-;;A;;?;?
. actions, information to the medi;
Entrepren€ut s-.'.h.' o rg. nEliiiffi i"iiiillii

oppirrtunities o tganizi ng sv.t;At;;;ffi
:::
"improvement
and initiates sessions to develop
cnanges.
projects,, io b;ng about programs
new
(espoDsrbte fo, corrective-liiEi-t6fi

org€nrzatton faces ir.,rportant, o rsa n izins stra Gfr -lil'T&Gw-
unexpected sessrons that involve
o,sturbances end crises
Resource Respo.nshle -Ei--iiE-Iffi ti";-; (.h;.1',rr--.
Allocator o,rganizational resources
of all -1i"-.1,,,,i, requestjng
kinds _ authorization; p".iormins
11!ine or approving all sisnificant "nJ
organizational decisions "'
"';:"'"*;: fi?:?
subordinates, work
#rrr",,:?
Responsible -?or-
representing the rarticipaung in-FEiT6iiEE
rabte 1.2 - MtntE;t;IG;;EEIiffi
t
Managem€nt Stills
A managet/s iob is varied and

complex. Managers need certain
aqtivities associBted with being skills to peiform the duties &1o
a manager. A skil, is an abirity
resurts in desired performance. to transJate knowredge into act;Gn
tn3r
The rnost imponant r"".r"nl,'r*r,
are those that arow managers ro
in their work Robert-t- ratz
[:]il'H?::J,:ffj,",i,;:*-"' concruded that manase^ needed
the
'{ Technicat skit

-job-specific knowredgd and techniques
needed to proficienry perform
expertise that could initially specifictasks;
be acquired tf,rough ionnat el;
trainins and iob experience.
;;; ;;;; ;::;:: :"_T1 :l"cation and ror
are rufther developed by
rower reueror"'Jn"s",.,
because they ,rodt .,;-,.T;:J::Jil:":"fi:::.";'"^,*
organization,sproductsorseryicetheorganizarion,scustom"rr.'t too't and techniques to produce
.
llffillj'l;',b;,;:l:?;:l werr,with other peopre individuaily and in a group. rt emerses in the
. lf
*" *,r,, .,." ."",,,i.n;;HH1T::il: fi "ffi ]TlTilil.I,"JlT::1m*;:,;
d,ifectly with people. Manager
wrth good human skills are aDre1o
. They know how to .o,o.un-*," _î;;;"';:::':::::'e
able setthe best out of their peopre.
gocid human,r,irr, *irr
r.,"u.-.'qr,[i'J"li:I11
empathjze with the faelings
ofothers.
l]r'*:;::tff 'I.T;Xtrl"Tr":::::#
,,! conceptuat skiti - abitity ,:. (conceptualjze) about abstract
lil
srtuations; it involves the abirity :T ,formutate
to break down probrems into ,r"tt",. pa.tr,
and comptex
relations between pans and -any to see and anaryze the
to recognize the implications of one proolem for other to solve
complex problems using these
skilk managers
the rerationships among various subunits must see ttre orlanization as a whoie, understanding
and visuarize hJw organazation fits
environment. These skills are into broader
mosr rmpo|tant at the top management
level,
Other managerial ski/ls were t.tFnrifi..t i^

'r.l"",jiill':: j:#T.J ;rriji:::,r manasers by the American
Manasement Assoc,"ir"
r*ir
. llllly . ,.u rnro_Jiiii-iiiitilTilfiii . contriburrng to iorpo-rati-iGili

Problems
. tdeotification of opponunitjes
for jnnovatjon
objecflves
. Reco8nhlng problem areas and
. Cu5torner fccus
solutions
imptementin8 . Mu,ti-tasklng: worklng at muluple tasks
;n parallel
r Selecting critical information
. Nego atinB skills
from masses ot . Project management
data
. Understanding of busiê5s u5es . operations and
of tecnnoogy .y:,-:*T rmprementing
. Understardingof ortanization,sb(rsrness lmprovelnents
model . i"E,. and maintainlnt pdrfohance
:il
intefnally and externally
standafds
. Se$ing priorities icr aftention
and ac$vny
. Time management
ENGINEERING MAN46EMENT
i0
Ability to transform ideas into words and acflons . Coachjng and mentoringskills
Credibilirr* among colleagues, peers and . 0iversity skills: workingwith diverse people and cuh|- es
ssbordina!es . Networking wjth:n the o.Banization
. L6tening and asking questions . Networ(ing outside the organization
. Presentation skillsj jpoken format o Workln8 ln teams; cooperatlon and commtmenr
. Presentation skills; written and/or graphic
formats
Table 1.3 - AMA Managerial Skills
In today's demanding and dynamic workplace, employees

who want to be a valuable assets to an
organization must be wiiiing to constantly upgrade
their skills and take on extra work outside their own
job area. There's no dou5t that ski
specific
s wiI continue be an important way of describing what a
manager does.
HowTHE MaNAGER,S JoB ts cHANGtNG?
Nlanagers have always had to dealwith changes

.
taking place instde and outside their
organization.
organizations today ciperates in a world of

constant change. Technology and society are
changing .more rapidly than ever before.
Concern for theenvironment has forced
companies to think about how their actions
affect the qualjty of the air, jand and water.
Competition is fjercer than ever, because
organizations from all over the world must
now
try to sell their products and services to the
same customer in order to meet ihe aggressive
groMh expectations of the investors that
purchase their share. Business is now
conducted
on a global stage and witn that global emphasii
comes with a mlx of challenges thar radhional
managers who have,,worked their way up
the
ranks of the organization,t find themselves
woefully unprepared to handle.
ENGINEERING MAN46EMENT
1t
Current Trends and lssues
GLoEAr,tzATto N
,,coing
Global,, as a businl
the wortd. A grobar business means adopting products to fit
local needsaround
--- u,"*:::-:l,tt"tot:ften
' -"s itself as eouidistant fro;n
may be located. all customers, wherever in the
uoaa tiey
Managers are no /onger

o by national borders. gMw builds
McDonald,s *, nr"ro"*"*,,i. a-onstrained cax in south carolina;
::""*",."liliijj,:,*:ilhTj"#;ilffi:ill.l"", j: ;m;*:
efinitely become global village,
:*il; ::*:;
a
leading to important changes in the
manage/sjob such as:
. Working wlth people ,tom
different cultures
one is rikelv to rind himself
ffi#::ffiHTJ.l; workins with bosses, peers and
--'udrrarsedin different cultures' what other
ttr.r. vour rft.ol- motivates you maynot motivate
may b-e dhect and open, but
uncomfortable and ,nr""runllu1o,n they may find this appmach
understandhowtheir.,-;l-l':i+F["1"off
beliefs and adjust youf
managemen! style accord.inSly.
:ilT#.,"rT,::?ffi ff :i",ilff *jj
. Coping with anti.capitalist
backlash
- Capitatisrn,s emphasis
on ,r,j.r.; and. growth may.be generally
.tj:,:::]1:rt:/ia
the
and Hong Kong out that
Middle East or the Scana
:1.:1., .**,#ilfi:["ff
emphasis is not neartv:
accepted in United
McDonard's or procter
u n,Jll'::j1lil;' ff ii:',l:iffil
:nJ;:1";nl*h*,TffiLTi:;:;1i? ji,;1,[ffi *:ni",mli
. Movement ofjobs to cosnttles
- wfth low cost labor
Globalization makes it possible
forevery business to hire, source
a gtobai econom% jobs and seli whereverthey want,
tend flow to piaces where lower ln
competitive advantage. ,,outs( ct provide business€s
*io", wr'th
especiary rorrhose l:i:'l:" ';;;";;;;;k!osts
:
r,.:,, ra
who,n,"k
rro ;1li: l: :'*".""
ctory workers ";l;;
to rs A number
; ;';; iln:
ffi HT:",:r'j,. :'fi
srdduatirrg iarge numbers of row-cosr countries are now
*jilt:l:"-:."1"t" peopre ru/iv qualiried
",
inau,ta",. rnJl'pi,.".";;::;:."^".uftio.uou*
is
to ;
that thev must be prepared ';; "l;;,,;;
task of batancins
il;;;;;:i:i::rs to deal with rhe difficuk
rema in competitrrve
;,;; ffi;"";fi ffi lf L"J.."ilffn:ffi il:.l1n ;;,'ffi ";;
12
ETHTcs AxD Soq.^r REsporstBtLry
lncreaslngly, We nodce th| r6^6t, aspects of everydav

societv is becomins *r,.,,^ llil-l:--T-Y manaSeriai and business behavor.
morarsiandards;;,;;;,::;:'."JrT,:1"ff
thek mandgers must respond ;:::H:;lt.:Jlfi Jl"ff :ffi:,1,*i#:,:
to it accordingly.
ethicar.and sociar responsibitity,r, ;;;rC ;
employees and the changing
,u, .ri""i'r,o'il;;#"Tffi:n:il:::;rJ[:r#ruT:l
needs of an in.r"rringty gloO"-;nory,
WoRKFoRcE OtvERstry
'"n*0",t"*il*io::1'Tt*i: cunentlv facing managers rs

lt:ues coordinatins errorts or diverse
drvercity',- a workforce t*ls
Todavt organizations
.tr"oo"r-i."u uy "*oirroru
-
,n"i"lol':ll:9 in terms of gender,"r"
characteristics that.O.*
O,n",r.l.lijerogeneous
nce, ethnicity, age and other
' Many organlzations

techno,ogies. ;;;;ffi;',:"f"^ :If;:: ff :'*,ff,?::ilillTr1il".:iltl:,:fi;::
a
advantage atso
in..""."r.
ll.:::j:* :: find
industries will i:, l,lr
it increasi;ly
ro,a--,kitr;;ers . declinins manuracturins
difficuit to rind new jobs
EMproyMEr,JT VAluEs
"-*"rJtj;:::: f;
AND HUMAN RtGrfis
tf. new century brings it with

,
-,_". ln all aspects new socialvaiues and
expecEtions for the protection
o;;j^^:. ":::',"rro
rlghts exoe
of sociity, includina
:t
reai:he
job -,hey ;il;J;; ::Jil:1r.t,,,"#dj;y*l,l;*: :J::i,:::1,Tffi "
opportuniiies to part,cipate -
of human
in job-reraied and they expect

o*0,""r. a""i"Il.t-o lo,theirjob,
::;:,Lffi illl"jj;illlifjl,_ii:1^1,_,,i::d?T1;il1ili#:r, jffi:,;:,,j:.T
:,ffi:Hff *;#:";ffi " :: ff 'J:ili,i:i.J*:',i., l"jlr':::,*,manv .i.,.ôt,'.,,
"." orsanilations
and hirins rs more p";;d;;;#J;:n are
INFoRMATIoI.I AHD
TEcHNoI,oGIcer cHA G€
. In a worid whefe change

and computer techno,ou,
.
at an accelerating rate,
the irnpacr of emerging information
,rr,
oj.ltllllng rhls is the new ase or
whose mind
"
tnin"'""",., t":"-":'::::"t1 "knowtedse
computef literacy is a knowledge
;;;:""::;;i;:::
mastered asa'tfouna.tion ;;;-non-*it.t;,
ior."r."lLjoyers ff,T:
CaREERs ANo CAREER poRTrouos
Ih; typicai cdreer of the

:
rt is more trkery to
be uniformlv iull time
,"r#i::it-:.1,::n't and timited to a sinsre rarge
all".r".
must be portabl and severat emproyment
.;;;;;' ,:":pportunisticallv
one possible emplover; these
options over time. skills
maintained and ,pg.a"a .*.. T:-lt::
un.'l You must maintain a ski s ru*
o" .lr"ru u
and valuable to poti;ilil;Jr: "portfo/io of skils,,tn",
"- ",*"r, "o*_olrJ
ENGINEERING MANA6EMENT
l5
The Reallty of Work
Another reason for studying management

is the reality that for most of us, once
from college and begin osr we grdduate
career/ one wit either manage
managers' an understanding
or be managpd, For those who pran to be.
of the management process forms
the foundations upon which to.buird your
management skl/rs' on the other
hand, tor those of us who a";jir."
nave to work with manaSers' n'r*rr ,anagin& one is rikery to
Arso, assuming that we wi, have
in an orsanization, on" p.t'"urv
t" t", lMng and recognizinS that*"*
"
i.uu ,o.ni munageri.r
n:::::l;:::;work ."rponsibiriries even ir
Reward and Challenges of Belng

a Manage,
Create a -in-.
organrrattonal "orL
members can work to the
u"ri
"i
I. May hav'e duties that are more
clericat .than
managerial
Have to deal.w!th a v-ariery ofpersonalities
Helpothersfind meaningano uEen have to nake do with Iimlted
fulfittment in worf resources
Supporq coach and nurtire I.i Motlvate workers in chaotic and uncertain
others sttuatlons
U/ork with a va rlety of
Feopje
S ccessfully blend knowledge, skllls,
arnbitions
Eno erpetiences cf a diverse
work group
5ucces5 depends gn others,
work perroniance,
i+:",:":#,:#:ii ?: ilff il:l["J:lT:r ; I
salades, bonuses and sto.foptioni
fatb.f.A-n"@
. Managers often may have
to deai with a iariety of personalities
limited resources rt can
be a ch:rense to ro,'ua,a'ro*ao-,a '*"
and often have to make to with
o* of uncertainty and
Iil::nl?,j[1T,:ji,';,"]::","j."ivervbrend il;;;;Jiis,
ambitions and experiences ora
chaos,
rs dependent
re not in tuil controlof your "*
d""tnt. rt ,u.."r, t
upon, o,r,"rr, *o* o"lljLir'vor ,ro,""l,n
v Keep up wlth cun ent business news,

/; X3"":1"j,1T,] slod nd ba d a(a m res ur
Remember rhat o;" oi;". mp
'"'a o r managrng.
asins. a n
- ';-#"'
_a
capitalize on it.
6' good managers do ls to discover what
ls unlque about each person
and
Keep in mind the slmple
l- ,
advlce that management js
about people,, from peter Drucker,
#:h:l#ffif;:::;#";:-:,1*. .o",ni."tio,,s.in-r}i.irol,'g:th",hg..na
yj
*.. - peopre skris. rhese
j,o,::l" T.l"r"" ..0 n
rark_to actual man.ters "*,i*l.j,lT,!Hlil".# ;,t;j,r,"":::r,
about their exp"rl"";, _ g;;;;1.:.
; ;::."iff1il':,i:ffi1,":1iil.r:^,:.,I1'-:,*o*.,,',iiiil,iiii"ntorsanizarons
Start thinking about wt
Vou,a U"ing rn.n"g"rl
"tf,ir" "ii-ov "
ENGINEEBING MANAGEMENT
lnstructions:
Rate yourself based on the following
cha ra cteristics. Usethisscale:
S= Strong, I am very confident with this
one
G= Good, but lstill have room to grow
W= Weak, I really need to work on this
one
U= Unsure, ljust don,t know
1. Resistance to Stress: the ability to get work done
even under stressful conditions.
2. Tolerance for Uncertainty: the abilityto get
work done even under amb,guous and
uncertain conditions
3' S.ciar.objectivity: the abirity to act
fee of racial, ethnic, genderand otherprejudicesor
4. Inner Work Standardt the ability

to personally set and work to high performance
standards.
5, Stamina: the abilityto sirstain long work
hours.
6, Adaptability: the ability to be flexible.
7' self-confidencer the abifity to
be consistentry decisive and dispray
presence. one,s personal
8r Serf-objectivity: the abirity

to.evaruate personar strenSths and
- -' weakness and to
skills ret"tiu" to . U.' ""
understand one,s motives and
9. Introspection: the ability to learn from experience, f
awarbness and self-study
10' Entrepreneurrsm: the abirity
to address probrems and take
for constructive change. aovantage of opportunities
CHAPruR 2
HISTORICAL EACKGROUD OF
MANACEMENT
In fhe Evorution of Mdndgement

rhought, management can oe trdced as
ancient sumerians used written far back as 5000 when
r€cords to assist in governmentalan,
was rmportant to the construction ;;;.; ;;",il;"#:::
of Egyptian pyramid, the rise of the:. Roman
commercial success of I 4'h century Empjre, and the
venice, By the tlme of the industriar
sociai changes helped prompt Revolution in the iToos great
a Sreat ,eap forward in ,i'ru ,.nanri*uru
goods' Industrial change was of basic staples and consumer
accererated by Adam smith ideas
tasks and the division of labor. of mass produciion thmugh specialized
production a mainstay
Bv the turn oi ttre zo'"centuri,-;;;;" and others were miking mass
of the modern economy. since then,
nave been on a.apid and
the science- and practic€s of management
continuing path ofdevelopntent.
The regacies of this rich

history of management
mrst be understood as we move rapidry
new conditions and challenges into the
of 21 century managements. ,r.,"ii.,ori.ur
thinking can be described context of manaSement
in the following framework:
r The ppioa ches
cia ssica I a
. The human resource/behavioral
appioaches
. The quantitative approaches
The contingency approaches
The system approach
. The leaming organizalon
approach
r€. 2J - De€bcnEnt
o, Management
fheories
ENC/NEFR,NG
MAAiAGEMENT
tb
CIASSICAT APPROACHES
TO MANAGEMENT
The c/assical approaches focus on

developing unlversal principles for
use in
various management situations, genel-d
lt y
arsumes that p€ople at work
act.n a rational
'nannerthat is primarily drjven by economic
concems. Workers are expected
to rationallv
conslder opportuniries made available
to
them and do whatever is necessary
to
achieve the greatest personal
and monetarv
gain. The tree branches of the classical
approach to management are (1) scientific
inanagement (2) administrative principles,
and (3) bureaucratic organization.
;l scientiticManagemlnt
if one were to specificajly pinpoint

the yearthat modern ma
;iil:;:"nfj"",,Hl3ll,l ' ** *" ,""., ,n.i ,,#; ffinTffifil"fiti'Ji;l

oru"d to become widely accepted
lliil by managers throughout the
world. The book described ,nu
,,one
,lnrunrr sci€ntific management - -to
the best way,, ro.. u iou to b.
the use of scientific method define
lll"of
FREDEnIcK W. TAy[oR
Taylor worked at the Mid

tno u"tn'ehem Steel companies in
engineer with a euaker and Pennsylvania, As aimechanical
g'*, :,"1 ;,ffi ;, ,u.,r,"'"
;# jffi ::: r"H:1TTff to"*o ?t *-*-,," "*"i"""i,.
.1,1job
th€ and berieved that worker *"t. inclined to "take it easy',
outpu, *., ontv iJ,
on
", "oouiln*iino
:l1li.'11',,l'Jii"::[T;";":'*orequired
'";"u'''oilnr"
J#;#'T;l';ffi,?[,1"T::iil;:,TT
principtesofsctentiltcnan:;;:;;;: to do' with these experiences,
n. oi.".ilo.Jio'"*.
1 Develop for every job ,,r.,.*F
" n,l"t of rotion,lliliEJilT
and prop". *o*ing
) ^rmprement,
.orlJ,.l:l:'o*
r".rkers with rishtabitities
3,
:,.*,:iy:"1:"t
carefully train workers
for the job.
with the job ,,scien

to do
-- tie
''- rvo r"rl,""
iob and _;'"i1^
6ive them _-
the proper incentives to cooperate
ce,.
4. t"TffI#:ilT:." carerulrv plannina their
wo* and bv smoothins the
way as they go
ENGINEERING
MANAcEMENT
1'7
FRAxr AND tJUAri G|IBR.FTH
Like other contributors to the scientific method,,

they subscribed to the idea of finding and using
the one best way to perform a job. The primary investigative
tool in Gilbreths' research was motion study,
which consists of reducing eadr job to the most basic movements possibre.
Motion anarysis is used todf
primarily to establish job performance standards.
They also devised a classification scheme to label
seventeen basic hand motions - such as ,,search,,, ,telect,,, ,,hold,, _
"grasp,,, which they called the.rbliJs.
.'his allowed the cilbreths
a more precise way of anaryzing the exact erements of any worke/s hand
movements' They also invented the scaffold to reduce bending
of workers in his bricklaying experiments.
.i. Admlnistrativeprinciples
A second classical approach to management is baserj on attempt

to document and understand
the experiences of successfur managers. rt described what managers do
and what constituted good
management practice.
HENRY Fayor.
Fayol write during the same lime as Tatior. However,

whereas Taylor was conc€rned with
management at the shop level and used scientific method, Fayol's
attenlion was directed at the activities
of all managers and he wrote based on his personar experiences.
He argued that management was an
activity common to all human undertaking, in business, government,
in and even in the home. He then
proceeded to state foufteen p
nciples ol manddement:
!. Divislon olWork- work should be dtvided among individuais and grorp, to

on speciat portions of the task. Specialtzation increases "nru*i;G;;;;;;;
:j: l:.:rt
efficient.
outplt by maktng employee more
'
2. Authortty - Authorlty gives managers
the right td giye orders.
3- Drscrplne 'Emproyees need to
obey and respect the rules that organ,z.flon.
4, unity oI Commqad - Every employeEshould
80yern the
recelve orders frori onty one zuperior,
5' Unity o' Dtrcc'on ' The entre organrzation shourd
be moving toward a common objective,
dlrection. They should have a stnEle pian rn a common
of action to gulde m-anager".nO i"o*".,
6' Subordtnatbn of rndividuar rnk;a b the Genemr tntetests-"ftleinterest or one person
priority over the interests should not take
ofthe organtzation as a whole.
on -
Workers must be paid a falr waBe fortheir
:, :emunetu
8. Cenhollzotlon - This.eters to service.
lhe d egree by which subordinat"r'ar"
9. kqlot dtain -.Mana8er5 a rnat tog.
in hierarch
manager to the ple.idenr, por."oi"t
t'" pttt ot chainllke authority".t.ion
scale. €ach manager,irom ilrst-line
ce.rtatn .mo unt of authority.
adherence
__.,!, !!,!E ru The .*lrt"n"" ot ,
li ^n-_ ^
to .(it dre
are neceslary rha
neceslarv if the organization
organizaticn is to be successful. "of", "t
ain
!0. oder. peopte and marertats "na-
7r. Equtty - err
,* l:::'*:',''
shrr, ," ," tl" tiettt cl'ce
""rl ^]-:: at the right ti,re.
tz "nlprov""o
|]ij.E,in
riorra eqtralv and as fairlv as poss'ble
*obirtty ol reautJlf)'J.#'-*|.!."sempbyee
orderry personner pbnnr.*".d g1.."F turnovef rs ineffcient.
,"p,"."rnen. are avarbble
,r.-'*-'""-'"te sho,rd provde
73, Mr^r*_, JroUa;
tnitirtlve_- Vanagenrent
LJ. tnit*rtfve -..-.._ _ .(e qeps to
avairabre to flllvacancies.
0,,u""#.",1r"f"r"n,
encourage worker iniflative,
. which is detined as new
or
EI'I6INEERIN6 MANAGEMENT
18
A 8UR€AUCRATIC ORGANIZATION
Eureaucrary is a rational
and elficient forn of organization
legitimate authority The ideas founded on logig order and
were deveroped in reaction
deficiencies in the organization ;;;; * considered to be perfonnance
during that time. Among such
people were in positions deiiciencies includes the practice
of authority, not because that
,i.n i"i"]"", capabirities, but because of
status In the society, ror"tthis
sociar standing or privireged rheir
aio ottrer ra sons' organlzations largely
reach their pefformanc€ potential. fail to
MAx WEBER
Max weber was a German sociorbgist

who rieveloped a theory of authority
structures and
fiil::n.jilillil:::'::1v1.l',",1on
tha t h e ca rre d bu rea ucracv' rh e deta
*'io'i'v *r,,io;.;o.J;'". an ideartvpe ororsanrzation
ire d r eatur es o r w e b e
..._---
/ s,
" ",
** rili"T" iiliJff"i!,
of
nm;
7. Dtvlsion -Job.,.r" brok"n
,j,
Labor
,:!:r:l!^;jli:i::1ffi :"i,.ili:::.Ii:,;il::til.,:i:fi
con troled and supervised by a higher wrln_ eacn rower one
- one.
3, Fonsl Selectlon . All orga;lzationa,
members are to be selected on the basjs of technlcal
, Fondl
4. -qualificationsdemonstratedbylralnln&educaticn,orformalexa;,;;;,;,'
Rules and Reguhtbn.. .
fo fetulate the aclions or emproyees.
_ .there
rs a heaw deo"no*""
on ro-T'o'lJ;5:T:l,j,:i"
5 lmpeBondlity -
-_ ,-
Rules and contols ar" ,-""1-^,'.:,^,,
uniformly' avoiding ,
involvement
and perso.al preferen"", o, ""","0 with personalities
, ,::::,:x:::::ry;i:,r:::"".1"1l".:ssromr,ofnciars
"ro,ou"!.loo"ed
menrrF. Thpv wdrk fn, fltpr, sarrriFs rather than owners
vwrrers o, r units they
or the
anr nrrt(rtF thplt within ihF dfrahietin',.
-----------__ 'arp;r
otfc{r or rorldoil r,r 6T:.lrd i1

r'r.nEbi wlg .d!, drli ot
. Bureaucrary, as
described by Weber, is a
lot like scientific
manatement in ideology.
A^+L
emphasize
rationality, predictability,
rmpersonality, technical
qompetence and
authoritarianism, He
recognized .that
his "ideal
bureaucrary,, didn,t
exist
qrdifc.fidl
ln reaiity.
hterided
Instead he
as a basis for it
could be done in large
groups. His theory theorizint about how woik
organ izations. becom€s the modelstruc..--, .
f,urat design for many of today,s
,
large
€NGINEERINC
IVTANAGEMENT
19
Huntan Rasourcs AFpaoaches

to Management
Managers get things done by

working with peopje, This exprains
management by focusing on why rve have to rook ar
the organization;s peoplc. The field
(behavior) of people at cf study concerned with the actions
work is called as human resource
aOO...n ,o ,"nararanr.
The human resource approach

to management, also referred to as behayiordl
emphasizes increasing productior approach,
worksroup,andth.;;;;;;;';H','lil.I:ilJ::lX.T,nJ:,1fi:;::::,i:L"rL;j:,1:
if managers undeBtand their people,
and adapt tt,"i, orgrni."ti;n.'to them,
usually follow. organizational success will
Early Advocates
.
Arthough severar individuais in the
late 18oo's and early 1900,s recognized the
people to an organization,s importance 6f
success, four stand out as early
owen' Huto Munsterberg, Mary parker
aOvocates oi tire f #;;; ;r;,o;;;;;;
Folrett and chester gemal rrreir contributions
were varied and
l,believed that people were the most
l:.,:1]_"^,,1r* : imporrant asset of the organization and should
oe managed accordingry. Their ideas provided
the foundation for such riansgement practices
employee selestion procedures, employee as
motivation programs, employee work teams
environment management techniques. and organjzation_
, C.,1c6|r|'d aboui d.dor.bto \j,/orkinE .D rEtiorE

I rEpo$d rd.alt!!€ r.Dfidlc!
. Actid nEn.gor who thought t a€ €d $ at mon.y .po m tilF'ovtng ra bor rfs smarr
orgEdzrlbn8w.l! $d.l
sylt.m! t at r.qutr.d . Plo.la.ln !r. tr.ld orlrdurtrhl
. ael.wd maE!.i.Jobha! . P.Ychorogy - sdsn{h dudy ot
lo.omnQdc.t. rnd rlt|nutab
rnpby!.t
. s(€9.9!d uslr€ pychotoghaj .
htgh t v.b 6r tr.t br .ndoyr. ..jaauo,r,
lc! nrlnE ti.ory €onclpE tor
.mfloy.. taldng rnd study ot
dq.ni:njon!w.E oFn numft boh:vlor tor .rnpby6o
crr! ot t'. t|9r to Ec.gnlj! thei orgdua!0|.6 coL{c bo

vr.wfir rom Fr lFclp. ot hdytdult ard gclup
b.lEnor
' P.E Foi.d p6.plo od. rlld ldi.3 t|a n ii.n!{c
m.rng.h.n told..l!
. Th@9H d!.ntEloE *routd b. b&.d on grou! .ihc
MARY PARfiER FoU.ET
one of the earliest writers to recognize

that organizations could be from lthe perspectiv€
J:::::',:::: ::::i l,"I::T'-y""

era, she was a social philosopher.
She thought
parker Fo,,et *.n*
",,"",,J, ;
snould be based on a
;;
of
;#; 'il:#fJi
ethic rather than
ENGJNEEBJNG MANAGEMENT
20
;::j::1 htilIlL'i'^'j:
Manasers and wo*ers i:,1"1,
,n"r,o
that their job was to harmonize and coordinate
j:::lT":::,i sroup errods.
","*.ri.,"i"j as partof a common group. As such,
managers shodd.rely more on thetr
expertis-. and knowledge to lead
subordinates than on the formal
authority of thejr position.
+ HAWTHORNE STUDIES
,"*.*H;:H;:"j ,Tj,?:* : usuarv descr;bed os besinnins *iti,

the behavior and attitudes "
,.,i", or studies conducted
or workers a, ,n" rr**,n.
or the western Erecir-iJ;ffiffil;il:l r"*,
raKen togethe, the
l|::il j
s
pian, Eave manasemen,
j::1";Ha*home
:*,,,;:T"*J::;diiru"*,q1X
1311fs
ieel nes,.;;;;,.;
thev recosnized the importance
.;':;1,**f,:fm# ilj;*
w:lr(ers : liillffi
be
il:, lfi::T::
important to managemen!
,i, ,^f^."'.]l^ll- :hould and
o""c[ ffi: ffi ;",:ih *
j: "","'"0 "'.,* ",." " ;i..,1 il"
llill_1, _"j created
expectations H:.ff :ll"].;,]:" ro penorm as aniicipated
l:::""' in**;;
by the riturtion *," ,..11,;^::,.ll::: merely becauje of
*"
l,:l-"1 relations
human
;Tff";l::.i;#TJi':"ff:arsowcontributed'"
,"r,; achieve
the workplace ;;;" iroductivitv.
.,n me vlewroint that "'**.",iii
managers who use gooo
rctations movemen, ,";
:;#,::uJd
th-. ":": Furthermore,. the insishts of the human
studyorindividuars;;;;il,i|ilj.,Hit has now evolved as the fie/d or organiz"1"r.,"o.i"",";'iil
{ MAStowS THEORy OF HUMAN

NEED5
n"'"" relations movement,

"lll",f iniirlXfflff:':an that managers
Abraham work in the arba or
sociai esteem' and
t"1"""r"il.i;ll leiieved
^4asroia,,s
must ur the phvsiological' safelv,
rnrnking, Masrow,s itr"ory of orSanrzation ;;;;;:o"ttt'"d
rn,o 1;.r'l.1ieds
work wilachieveproductivity.
that rnanageis *" *" n"io o"*i:T:lit#:li,tfiHil:::':l
"& MCGREGoRS lHeonvx alto Bsony
Douglas Mccregor
emphasized a mrhrd6^r^_. _L:,
,::;;7":15:i::::
ENGINEERTNG MANAGEMENT
zt
ma*ge's to strift their view of human nature
away from a set of as'dmpth,r,: tre ca{{ed
(which assumes that peopre disrike "lhcory x-
work, rack ambition; are irresponsibre and resistant
prefer to be red) and toward to chanSe, anj
ones he cated "Theory y' (which assumes
that peopre are witing to r$.,."k.
accept responsibirity, and are capabre
of serf-direction and creativity). Theory rthinking
is very coflsrsreir.
rr'/ith developments in the new wortprace
and its emphasis on varuing workforce dive6ity.
to the popular notions of employee participation, rt is arso c€fl'-al
Invorvement, empJwerment, and serf_managemvrr
.I ARGYRTS'STHEORYOFPERSONAI,TTYAND
ORGANIZATION
ldeas set forth by the well'regaded

schclar and ccnsultant chris
Aigyris also reflect a belief rn
the higher ordef of human nature advanced
by Maslotv and f,,4c.regor; Argyris contrasted the
management practices found in traditional
and hierarchical organiations with the needs
of mature adults. He concluded that sorne pnaic"s, and capabilities
esp-"ci"lty those inituencea by the classical
management approai*res, are in inconsistent
with the mature adult personality.
. Theisbelief that managers who treat people positively and as responiible adults will achieve
productivity central to A*yris,s thinking. His advice is to
expand job ,";;;;ff;;;;;;; ;;
variety, and adjust supbrvisory styles
to allow more participation and promote better human
believes that the common probrems relaticjns. He
of employee absenteeism, turnovet apathy, arienation,
and the likes
may be a signs of a mismatch between
workers' mature personarities and outdated management
pra ctrces.
Quantttative Approaches to Managem€nt
About the same time that some scholars

were developing human resource approaches.to
management, others were investiSating how quantitative
techniques .outo irpau" manageriar decision
making. The foundation of the u'.,'o',on
mathematicartechniq,u,."n o" u,;u:J',:XT;"H-::"*il:rHj:::il:L:iu,[] 'n.,
The terms mondgement science ot operdtions
reseorch (OR) are oflen jnterchangeabJy used to
describe the scientific apprications of mathematical
techniques to management probrems. A typicar
approach proceeds as follows:
1.. A problem is encountered;
2.. lt is systematically analyzed;
3. Appropriate mathematicrl models and. computations
a re applied;
4, An optimum solution is identifiecl.
A number of management science applications

arb commonly used r
' Mdthemoticol lorecasting - heips make future projectiohs

that are useful in the
ptanning process,
. lnvenbry n deling _ he,ps control inventories by ma thematically
establishing
how much to orderand when.
Uneat F,Wmn:f,$ag - used to calculate how b€st to dllocate scai.ce resouices
among corn3€Ei.ls lE€s.
L^{GS{EERING MAXAGEM ENT

22
t Queuing heory - herps atocate service personnel

0r vro*stations to minirnize
cusrome. wa jting time and servlce
cost.
NetuJork models - break large tasks
' into smarer components to allow for
bett€r
___.
analysis, planning and control of complex
pro.jects,
' simulotion - makes models of problems so differcnt solutions
under various
assumptions can be tested.
Regardress of the specific technique

used, the essence of the quantita;ive
inanagement approach
these characteristics. There is a foors on
-tncludes decision making that has crear imprications
management action. The techniques for
use ,,economic,, decision c!.iteria,
on Investments They invorve mathematicar such * *"r,
a"."r.r, ,.ar",.n
moders that foriow sophisticated rures
and ""0 formuras.
contingency Approach to Management
Management is not (and cannot be)

based on simpristic principres to be
Different and changing situations require applied in situations.
managefs to use different approaches "tt
contingency approach (sometimes and techniques: The
caled situationor oorroornl-i""orn,zes
different, face different situations that organizations are
{contingencies) a nd require Uifferent ways oi managing.
The contingency approach to management

depends on' or is contingent upon, given
emphasizes that what managers do in practice
a set of circumstances - a situaton. This approach emphasizes
"i!-then" relationships. perhaps the main
challenges in using this approach
are;
. perceiving organizationa,
situations as they actualiy exist.
. Choosing the management
tactics best suited to those situations.
. Competently implementing
those tactics.
otsdntzation -
srze as size increases, so do the probrem of coo.dtn.tibnll]ilrirlilGl
::T:*::::_.::::t_1.e
inefficient loorolyate
ror an organization ;;;o;; r'r'ptwvcEr js to o€
rrêrv ro
rs rikery be
for an organization ofso emproyees ";o,"r"es
Routineness oJ Tosk Technology
- to achieve its purpose, an orgenizatron uses. technology.
Routine- te-chnologies require
organizational ,,ruour", l""o"rrr,, a,r,",
that differ trom those required by customized and control systems
or non_routine technologies.
Environmentul uncertdinty. the

degree of uncertainty caused by enuronmentai
influences the management pmcess changes
what work best . *oi"
oôictabre environment
may be totally inappropriate in
" "* elvironment.
a rapidly changing and unpredictable
lndividuol Differenccs individuai different

- irr terms cf their desire for growth/ autonomy,
tolerance of ambiguity and expectations.
These and other differcnces are particuiarry
impodant when managers select motivation
techniques, Ie"a"rslip ,f", -a job designs.
ENGTNEERING MANAGEMENT
23
System Approach to Management
A system is a set of interrelated

unlfled whole The two basic
svsters .r".tored unJopJn-.
';;;;":;.,
and interdependent parts arranged
in A manner that produces a
not interact with their environm rnfruenceo.by and do
"r"not
enr, ln contrast, oFen systems dynamically
envircnment. interact tvith their
lt is helpful to view organization

as open systems that interact
continual process of transforming with their environment in the
resource inputs into product
and/or services. outputs in the form of finished goods
ffi
Fig, 2-6 _ organiEtion as Op€n Systems
system approach recoSnizes

that organi:ations are not self-contained. rhey rery on
envrronment tor essentiar i;puts their
and,as outrets to absorb their
outpur. No organization can survive for
*vemment regulations, supprier retations
i"l:Jlt#** or varied extemat constituencies upon
which
The systems approach to

manaEpmo^t;.. _--^_^_- -
:i,',""1ligr,J:ii:#f :1i'r'-!"'il"i''#Jil::T:T:;"i#:"LiT:,i,,TiTf:x",3iJ:::
:::::T,1,"*ilil;i,;T#l:i#T:r#Jff
cnanges in its parts' Before
modtficetions of the pa.t,
:i:,'ff il.:::il#tr":"Ti:[,j
*n o" ,"aa ror-the overa, benefit of the system,
part runctions;no a
,.,",..ur.,ionships among
;?il,Ti'::T',",:fi#;:.;*, that/ no mafter'r,'"
r'" pa.t, must b"
how erficient the product'- o*"nr""i
r";,;;; ;;;;:;;'r*"*
be, ir the r'rii
*,0,."i o"o" ;;ffi
"_:ff :;'::fl :::n"j#:,,; :"#il lilT#ffi h;*":,"""#
o"
ENG'NEERING MANAGEM ENT

24
ln addition, the system approach implies that

decisions ard adicir.rs,td(lr, in Drre organizatbirar
area wirr affect others and vice versa. (i.e.
if the purchasing departrhent doesn,t acquire the right quantity
and quality of inputs, the production department
will not be able to do its job effectivelv.
Learning organization Appmach to Management
In more recent times, managers seem to be

searching for new apprcaches to management.
Fueling this search is a range of new issuei
that rode1.n ,ianagers face but that their historical
counterparts did not rhese issues incrude a concefn
about the competitive decrine of westem firms, the
accelerating pace of techrorogical change,.the
50phistication of customerc, and on increasing emphasis
globa lization. on
A new approach to management that is evolving

to handle thls new range of issues js called the
leaming orgonizotion opproach. rt is an organization
that emphasizes systematic probrem-solving,
expermenting with new ideas, rearning fmm experience
and past history, and transfe'ing knowredge
rapidly thfoughout the organization,
Managers attempting to build a learnrng organization
environment conducive to rearning and encourirge must create an
the e-xchange of information among aI organizatioh
members Honda, corning, and Generar Electric
are exampres ofisuccessfur reaming organizations.
Attltude toward change lf it's working, don,t cl1-dnge r'f 'I.f

you aren't dlangrng, lt *on,t
be working for lonC
Attitude toward new lf it
ideas
wasn't invented- her{ lf it was invented--?
reiect it. reinvented here, rerect it.
Who's responsible ior rrao[tonai areas suci as R&D Everyone in the organization
innovation?
Main fea r
Competitive advinlage
Making mislakes Not learning, not idaffi
Products and services Ability to Jearn, knowledge
and expertise
Managqr,s job LOnTrOtOthei:s Enable othfrs
. Table 2,1 Lea rn ing Organization vs. Traditlona
I Organization
In an organization, iust recognizing the varue

of accur'rurated knowledge or wisdom isn,t
enough.
Managers must deliberatery manage that base
of knowredge, Knowiedge monog"ment involves
cultivating a leaming culture where organizationar
member systematicairy gather knowredge and shar€
with others in an or'anization so as to achieve it
better p;rfor;;;;e. For instance, accountant
consurtants at Emst & young, a professionai-service and
firnr, document best practice! they have deveroped,
unusual probrem they have deart with. and jt<nowteage,,
other information. thii is then shared with ail
employees through intemet-based apprication and through
corN (commun,ty of interest) teams that
meet regulady throughout the company.
FNG,,NFFB'NG MANAGEMENT
.L3
Quality Management Approach
A quarity revolution swept through both the

business and pubric sectors during ihe 198ars 3,nd
1990's. Thb generic term used to descrlbe this revolution
w as total qudlity mdnogement o( feM- tt
Y{as
inspired by a smarl group of quality experts,
the most famous of whom were: t/y, Edwdrds &ming and
Joseph Jumn.
Quqllty manqgemenf is 3 phirosophy of management involving

conrinual improvement and
responding to customer needs and expecrations
{see the box berow). The term customer has expanded
beyond the original definition of the purchaser
outside tire organization to rncrude anyone who interacts
with the organization's products or services interna|y
or externalry. rt enmmpasses emproyees and
suppliers as well as the people who purchase
the organization,s goods or services. The oblective of
quality management is to create an
organization committed to cohtinuous rmprovement
processes in the work
TQM Guidelines:
L lntense hcus on :customer - the

customer includes not only outsiders who buy .the
organizatidn's prodocts or services but
arso intemai customer urho inr.era.d. $rith and
serve with
others in the organization
2. conem hr continual imprcvement _ quality
management is a commitment to never bejng
satisfied. ,,very good,, is not enough.
euality can atwafs b e imprcved
3. Process-fo@sed - qualjty management
focuses on work plocesse3 as the qualitv of goods
services is continually improved.
and
4. lmp,ovement ln the *ralv of everythinE
the orgdnizdtio, does, euality management
uses a
very broad definition of quality. rt reiates
not onry to the finar product but arso to how the
organization handles deliveries, how rapidly
it responds ,o .o.Ot.inrs, how politely the phones
are answered and the like.
s' Accutdte medf,rrement - quality management
uses statistjcar technrques to measure every
critical variabre in the organization's operations.
These are compared against standards or
benchmarks to identify problems, trace
them ro their roots and eliminate the-ir ca uses.
6. Empowerment ol employees _ quality
management involves the people on the line
rmprovement process. Tean in the
quahtv manasement prosrams as
empowermentvehirr.rrorrinoiltg;;r#l"rlffii,:
:
I
!
INTRODUCTORY CASE
MOTORBUS COMPANY: eUE SERASERA.
Engr. Hermogenes Ancheta has

lust received his appointfient papers from his new
mmediate superior, the vice-presldent for operations.
He has oeen promoted from
Assistant Manager to Manager of the Maintenance
oepartment. Aft", .ongrrtuf.iing f.,i_,
his boss gave him a verbal directive that
he shourd put some order in his department and.
make it work in tl.le most effective and efficient
manner possible.
-
Engr' Ancheta has just passed the board
.
when he joined
examination for Mechanicrr Engineering
Motorbus company in 1993. By June 1995. he
informed his former
classmates at The university of santo Tomas
that he was promoted as Assistant Manager
for Maintenance.
The former manager of the department, Engr.

Gaudencio Inductivo, joined the
company since it started operations in 1989.
A totar of ten buses began prying the Manira- .
lsabela terminar in samparoc. A maintenance
unit was put up at the Manira terminar in.
sampaloc. Another unit serves the llagan,
lsabela terminal. Each unit tras a tutt_iime
mechanic and one assistant.
when a company. bus comes in for repair, the

mechanic diagnoses the various
automotive systems in the bus and later produces a list
of parts needing replacement, The
mechanic sends the list to Engr. lnductivo,
who, in turn, lorwards the seme to thd company
accountant for thb approvar of the purchase
requdst. ort"nti,n"r, Engr, Inductrvo perforhs
the actual purchasing himself, later, he
made the request
sends the purchaseJ n.r, *
,n" mechanic who
The maintenance.unitswere operatlng norntaily until 40 new buses were procured

by the company in 1gg3' since then,
every maintenance personner were so busy that
threatened to quit therr jobs unress additiona they
the end of 1993, each unit has a personnel
I mechanics and assistants were recruited.
;;
complement of 5 mechanics and 5 assistants,
Even with current devebpments, the old

method of purchasing was not improved.
Purchase requests startd to pih up. Mechanics and drivers began complaining
to the. Vp
for Operations about delays in the delivery
of needed parts.
l?
The VP for Operations lmmediately sent a note to Engr. Inductivo ordering that tie
problem should be resolved immediately. Engr. Inductivo was hard pressed ind he cqrb
not offer an immediate solution, The next day, Engr. Inductivo informed the Vp for
operations that he is requesting for the approval of his application for retirement as he is
already 62 years old.
The VP forwarded the request to the Fresident with an endoFement justifying th€
request. On the same day, the request for retirement was approved. The next day, Engr.
Ancheta received his appoinlment papers promoting him to Manager,
Onb of the.first things Engr. Ancheta did was io inspect the storage room for parts.
He found out that the room was full of an uneven supply of parts. Some parts were of
excessive quantities, while some important ones were 'inadequately stocked. A corner of
the room contains a big volume of obsolete parts.
At the end of the day, Engr. Ancheta was informed by the Vp that the company will
be fielding an additional 50 new buses wlthin 30 days. This will mean that by next month,
about 100 buses will be servicing the various routes assigned to Motorbus Company,
Engr. Ancheta is now mulling over how he will make the opeEtions of his
depiftmentas efficient and effective as possible,
34
CFIAtrIER 3
PLANNINC' - TO SET DIRECTION
Management involves looking ahead, making good plans, and then helping people to t"ke t}le
actions needed today in order to best meet the chalrenges of the future. Rogers.
cEo of cypress
Semiconductor corp., emohasizes that the system shourd be designed
tc find problems before they
interfere with pedomrance. He uys:',Manogers monitor the
Eodls, took lor prcblems, and e.rpect
people who fd behind to ask lor help before they lose con al ol or damoge a major projea,,
WHATTs Pi.ANNtr,tG?
The process of management invorves pranning, organizing,

infruencing, and contfofling. The first
of these functions, pranning, sets thestage for the others. It is the process of setting obj€ctives
and
determining what should be
done to accomplish them. lf
determines exactly what one
wants to accomplish and how
to best gc about it. in more
formal terms, planning is,the
. syst€matic d€velopment of
action progrdms ajmed at
reaching agreed business
objectives by the process of
analyzing, evaluating, and
selecting among the
opportunities
which are
foreseen"
when prannlng is done r.rrell, it creates a sorid pratforn) for

organizing, influencinS, and controfling. rt
funher managerial effods it
is a critiaar ms'agement activity regardress of the type
organization beinS managed rvrodern managers of
face the cia|enge of sound pranning in smafi and
relatively simple organization as well as in large,
more comple, on"-s, ,
well as in for profit oBanizations "nd "*o.ti "r?.",;r;;;r".,
WHYoo MANAGERs praN?
setting goars, estabrishing strategies ro adrieve

.
rntegrate and coordinate activitbs
those goais and deveioping a set of pians that
pr€tty compricated. Given that fuct,
why should managers pran?
What impad does plannlng have ui'€em performance?
ENGIhlEERING MANAGEM ENT

35
Purpose of planning
1,, Provides dircction - when emplovees know
what their organization or work unit is trying
to accomplish and what they must contribute
to readr goals. they can coordinate their
activities, cooperate with each other and
do.
what it takes to accomplish tnose goars.
2. Reduces unceftdinty - by forcing managers
to look ahead, anticipate change, consider -i>
l':gl <.\
be
the impact of the change and develoo
appropriate responses can reduce if jt won,t
possible to eljminate the risk
uncertainty that an organizatjon will face jn
or
lfl
LtLil
[e
i€r
i
the course of acconiplish ing its goals.

3. Minimize woste ond rcdundancy _
when
wo|k activjtles are coordinated around established
plans, redundancy can be mjnimized.
Furthermore, when means and ends are made clear
thmugh planning, inefficiencies become
obvious and can be corrected or
eliminatecl
4' Estdhrishes the goars or standards
used in controring - if one is unsure of what he is trying to
accomplish, how can he d
d eve rop goa s .
r
*"*," i,ll'J';"" :H-l "il:: ;T'l"r# ;:;,yj il ff ::fi
been carried out",and the goals : fi I n.:;
met. Without ptanning; ttr"r"*oufa be no way to contiol,
indicators of poor and some

benefits derjved from good planning
tut"t.rn"uS are given by William J.
tr Delivery not met

U
tr Jobs tumed ouGiGi
Machines idle EI Good relationship with other
E Materlalwasted departments
@ Some machines doing jobs
that E People using their hjghest skills
should be done by smaller M Wo*ing knowing how their iobs
machtnes fjt into the total pattern
tr Some men ovenarorked, other El Machines doing their properjobs
men underworked sj rqutpment in good shape
tr Skilled workers doing unskilled t4 Materia ls available
work EI Waste kept to a |i1inimum
tr Men.fumbling on jobs for wh jch
rney have not been trained
EI Quaneiling, bickering, buck_
passing and confusion
ENGINE€RING MANAGEMENT
3b
BenefiE of planning
. Organizations in todav,
times are facing pressures
these circumsrince, from mafly sources. planning
and forthe careers "0"^ " ";lll]t-Tic
oril;;"Til;rj.T:*, ,* actvantases for the performance
o. orr_o",il,
in
,/ More Focus and Flexibiliry

Good ptanning
p",f o,...n."2..",#Jil"".""t;:::l,r"r;r:,"'lrffl"1l1.H;Jff,,.T.Ji":i;
otgdntzauan wtth
foas khows ,iO*, i"rr,.n**rr*
-"*t t:t needs of its customers'
how to serue them w "*,
a^ indlviduol ,',1"i::-:::, and knows
"tt, withJocus knows whe
reAn 'rti))^,'
srruatron and is ab/e
to
Ilextbitttv is wir'tns an, i-'n:t
ooi"tt'"" tt"' o'ii'n
'tto shifting
;:fi1tt:il::i:Hffiffi,:;
orientation toward the"Jf
o'i:::1::t" -o "dapt
.iTH,ffi
crrcumstances and operates
with an
:,n:,:x"#::5:#[ jTi#:ifl :"[,::y:,::;:il:::::.n

r' Action Orientation
tT::t* tnd orsanizationi to srav ahead.or

",*.r. o!1"#iuo"ti::J
the competition and to
bein g carried
moment. Planning
;;:;, ;; jfi;'::'ff :"J'*:"ffi:$,f rE
..-0,.."*,,.,0
Dy successes "i,*oin
helps tous or failures of the
or"active -i.-J .srsrrdcreo
"-"*r.,1 rather than reactive in
"^" ii"rr.
"". "00."* i,
does so because jt n**, ,rrrl""Jin ,r"
t. Results odenv. creatinS
a performance-oriented
z' crtority orientel- making
sure the most irnportant
sense ofdirection.
l. edvontage oael' - elsufing things 8et first attention.

ihat a lt r€sources are used
c. arang" oriert:cted_
, anticipating problems
to best Edvantage.
and opportun ities.so they
best. can be dealt with
/ lmpfovedCoordination
Planning improves
coordineri^., _^.-r -,-
Hil:l,T,ffi :il:xlJ:,^#lf :::ff :il';H:':Tffi ,'"?ff ::il;:J:::::
ends are directly tied
means for their acco.ol,rhrioJln'u"t "s ro rower level obiectives as
the.
'/ Better Control

When planning is done wefl
process control gets better. The
of measuring o"noJo"'*ut''
:.::::""01:1",,n"il,;J5ffi *;:1i','H'l,#ffflTTjtrj"J."rffi
;::H; :::"":ix'l;1;i;;i::": ""ions throush *r,,i ir",
to be pursued. ,f resurts
tr
then adiusted in ttre controt or the "* are
action being taken, or both,
can be eyaluated and
prJlleslives
5t
tl
--------_________-_-_-__i
/ Better Time Msnag€ment
as i resurt or improved rocus and rrexibiritv,

,to
.jrT,l:ff:::::::l:l:":llt :o""
sts,n"i,,,",lolli,iTT::,:Hl; i:i:i !,liJilJ,iJiH"Tl.linTl":":
'oo'oin"t?in
do,,,
li-[Tl1hil::i]'il 9*"'''." *nn^ *" i".,; "" tie priorrties, and then address them.
wisery by a,**, **,"r,,l,,Tij::::H::ilj:il1il:[::fi::,:"",- ";; ;;;;;J;;;
How Do MANAGERS PLAN?
Planning is often called

the orimrnr _
oth:r
:hincs'r,.i'.""r.*'0".
control. In fact without plans,
;'ffi,",1ffiT::#rff ff.T,ffi"ff:l'ff:Hi.1"ilT :l
therc woutdn,t be anything
to do.
The Planning process
In the pranning procest

objectives identify the specific
statement of action or steps results or desired outcories;
the pian is a
to be taken-:
rne systematic planning process ",":r.
,i;;;*n ,i" ,ne recommended steps in
include the iollowing;. . "rii".,,""r.
l, Deflne your objectlv€s

ldentify desired outcomes
or rc<ntr. ih.,-_,.-__!,,
u"o speciric wavs' Know whire
,pe.iRienoughtl,-,-i;;,,1-::::'.lt ': vou want to so; be
markyou are orvari*rrri::"#;il"T;€rrived when iou set there or know
ho* orJ#ri"-
2. Determlne wh€re you
stand vis-l:vls objectfues
Evaluate current accompiishmenrs
relative to the desired res! (now where you stand
reachins the objectirer;
kno*rhrt.J;;":.:;,:::l::1resurts..
'- what strengths work In your in
you ba ck. ' favor aflo what weaknesses
may ho/d
38
3. De!€lop premises regarding future conditions

Try to anticipate future events. Generete alternative
"scenarios" for what may happen; identifu for each scenario
things that may help or hinder progress ioward Vour
objectives,
4. Analyze possible acdon alternatives, choose the best

among them, and decide how to imDlement.
List and carefully evaluate the possible actions that may be
taken. Choose the alternative{s) that most likely to accomplish
your objectives; describe step by step what must be done
to
foliow the chosen course of action.
5. lmplementthe plan and evaluate resufts

Take action and carefully measure your progress toward
objectives. Do what the plan requires; evaluate results; take
corredive actions and revise pJan5 as needed.
The planning process is a form of decision-making

and probtem_solving processes. lt is a
systematic framework for approaching an important
task setting performance objectives and deciding
-
how to achieve them. Furtherrnore, in the complex setting
of the modern woftplace, plannidg must not
be thought of as something thai is done primarily
by outside consultants or statf experts. And it must not
be mnsidered as something that people always
do whlle working alone in quiet rcoms, free from noise.
and distractions, and at schedured times. Rather, prannin'
must becpme a part of everyday work routines.
It must be an ongoing activity that is continuously done in
an otherwise hectic and demandjng work
setting The best pranning is arways.done with the partrcipation
and invorvement of the peopje whose
wo* efforts are required jf the objectives are to be achieved.
The Role of Goafs and pfans in plannin

e
Planning invorves two major erements: goars

-. individuals, groups
for
anc prans. 60al5
{objectives) are desired outcomes
or entire organizations. They guide ar management
decisions and foim the
criterion against which
actuarwork beimg done is measured. Hence, they
are often cafied the foundation
of planning' And one must know the desired target
or outcome before you can estabrish prans for
reaching it.
Pldns are documents that outrine how goars

are going to be met. rt usualry incrude resource
allocationt schedules and other necessary actions
to accomplish ,nu ,*,r,-;;; :, ;;;;,";,
they're developing both goals and plans
39
TYP€S or Goa-5
At flrst glance, it might appea r that organizations have a single object;ve for business firms, tne
-
goal is to make a prDfiU for not-for-profit organizations, the goal ls to meet the
needs of some constituent
group(s). In reality, all organizations have murtipre goars. Most company'sgoalcan
be crassified as:
/_i
at Finonciolgools- related to financlar perfornance
ofthe organizatjon
\l/
6 Strategic goals - related to other are€s of an organiza tion,s performance
. Fig.3.4 _ Sampbs of Corporate Goals
Another way to describe goars is in terms of whether

they are rear or stated. stdted godrs are
official statement of what an organizatlon
says and what it wants its stakeholders to believe
its goals are:
Hoirr'ever, stated goals which can be found
in an organizatioli,s chaner, annual reports, and public
relations announcements or in pubiic statements
made by manage,, are often confricting and excessivery
influen'ed by what society beiieves organizations
should do. Reqr godts are those objecfives that an
organizat,on actually pursues, as defined
by the actions of its memb-ers.
exampie' universities that procraim the goar ^"a;;;#;r;;;,;:'#
of rimiting crass size, faciritating crose student-facurty
relations and actively involving students
in the learning process and then put them
into lecture ciasses of
300 0r more are pretty common. An awareness
that rear and stated goars differ is important for
understanding what might otherwise seem to
be management inconsistencies.
writteri in t.rms oi ouGiE Challenging yet attainible

rather than artions
Written down
Measurable and quantifiable
Clear as to a time trame
Communicated to all necessary
organizational membefs
ENGINEERIN6 MANAGEMENT
40
TYpEs oF PLAxs
The most popurar ways to d€scribe organizationar

prans are ty their breadth
operationar), time frame {strategic vs.
{short term vs. long term), jpeci'city {dhectionar vs, specific)
and frequenry of
vs standing). These planning classifications aren,t
independent (as shown in ihe figure
;;fid**"
a
V
c Strategic prans' prans that appry to tire entire
organization, estabrishing the organization,s
overa llgoals and seek to position the organization
. in terms of its epvironment.
tx
\)/
3 operationar prans - prans that specify the detairs
on how the overa[ goars are to be
achieved.
fig, 3,5 - strategic & op€rational plans
/:ri
U Long term plans
- with a time frame of beyoird 3 years
l"x
\'ll
5 Short t€rm plans - covering 1 year or tess
a-\
\'\1/
l9 specific plans clearly
- defined and leave no room for interpretation
(i.e., a manager who
seeks.to increase his work output hy
Bo/o over a given 12_month
' specific procedures' budget a,ocations o.,"nrnlni
and schedures of activities to reach that"rrli,,rn'"
goar). ris
are it require crarity and a sense
._.drawbacks of bredictabirity thrt often do not exist.
/1\
\l/
E Directional prans- frexibre and set out generarguiderines (i.e. president of Motown
says that she has a sinrpre goal*,tign Remrds
gr€at artkt,,, hence, instea, or c.eating a specific pran.
on how to produce and ma*et
L0 albums from new.artist,ii, v"*- ,f," might formuiate a
ENGINEERING MANAGEMENI
.4!
directional plan to use a network of people
around the world to alert he, to new and
promising talents so she can increase
the number of new aftists she has uider contraqtl.
I
\.i/
It single -ose phns - one time plans spe;ifically.designed to me€t the needs of a unique
srtuation (program, budget and project
. schedules).
a\
\w
re standing prans ongoing
- prans that provide guideiines for activities performed repeatedly
(policies, rules and procedures).
Fig. 3.6 - Types of plans
APpnoAcxEs ro PLAI{N|NG
How an orBanization plans can

be best understood by looking
at who does the planning
@
Top-down vs. Bottom-up planning
Top-down - begins with broao

objectives set by top managemenr
and
then aliows lower managehent
levels
ro meke opefating plans within tnese
boundaries.
Bottom-up - begins with ideas

developed at lower management
lev€ls
and then passed up the hierarchy
from
/evel to level as thef express
the neeqs
and directions consistent wrth
operating level perspectives
42
@ Inside-out
vs, Outslde-ln Planning
tnstde-out- focuses on intemal strengths; most appropriate when you Want to do what you
and/or otheB are already doing but want to do it better. Th e planning objective in this casg is to
determine "how" to do it better
-
OuElde-ln focuses on external strength; best in finding unique opportunities or niches for
organizational activities, that is, ao something no one else is dging.. The planning objectives here
is to find the extema I opportu.nity that you can pursue to best advantage.
q9
Tradltional vs. Particlpatory plannlng
Trdditiond! Pldnnlng - done entirely by tbp-level management who were often assisted bv a
formal planning department - a group of ptanning specialists whose sole responsibiliiies.was to
help write the various organizational plans.
Paftcipdtury Plannirrg - involve more organizational members in the planning process. In thi!
approach plans are developed by organlzational members at varlous ievels and ln various work
units to meet their specific needs.
-"ji
\v
t contingency Plannlng - identifles alternative courses of action that can be taken if and when
clrcumstances change with time.
Planning Tools and Techniques
The fbllowing are managerial tools and techniques that can be used to
develop plans
TECHNIQI.,ES FOR A5SESSING THE E YIROiIMEITI
/?\
\1/
5 Environmental Scannlng soeening- of laBe amounts of information to anticipate and
interpret changes in the environment.
Compattto. lntEttg€nc8 - environmental scannlng activity by wh ich

oGanizetixrs pther info rmation about comoetitors..
43
. Global scanning * environn)ental

scanning acljlity thal
global forces that might Bathers jnform3tbn se
.
affect th eir organizations.
.' Forecasting - pJanning too, dseo to predict future environment. situations

inrluence the operati;n or '";::*.l']:::*ltar that mrsht
;. ;;.":;;
manasers understand the rutu,.-T:l';'jil. jli"ff :ff:i:#il:ll,
help them formulate more
effective plans.
lT,J :1#:
@a"n.t r"rring search

- for
the best practices among
competitors or non_
competitors that lead to their
superior performance.
a------''-)
rub FoREcAsnNG MErroos
qualitative Forecasting
-
uses iudgment and opinions
of knowledgeable individuals to
predict outcomes.
Judgmental forecosts
-
rely on the ;naviis of subiective
inputs obtained from various
t'"
as consumer'survevs, the sales
,t"4 .n.n.g"r, ,"0
:fi::: and paners cif
"*."tt*
Delphi Method - inyoives circulating
a series of questionnaires among individuals
possess the knowledge who
and ability to contribute rn"rningfrlli.-
n"rponses are kept
which tends to encourage honesr
responses that aim to achteve a
,T;:lf* consensus
. Quartitatlve Forecastlng _ appiies set of
mathematical ruies to a series
prediat outcomes. of past data to
combines and .t.r.d thifi'ffiil

ol experts
resource managers to predlct next
teafs college iecruitment needs
Combines estimates from field sales
pergonnel
Predicting next yeal5 sales of
of custome/s expected rndustriallasers
purchaSe
Cornbines estimates trom Surveying major car dealers by

established cugtomers, purchases a car
manufacturer to determine types
and quantities of products
desifed
ENGINEERINC MANA6EM€NT
Time seris analysis Fits a trend ttne to a mathemiiicil-
BwffiStrS$E$rii.+ti i:,. ::: .li
Pfedlcting quarter,s
next sates on dle
equation ard p.ojects lnto future by basl5 of 4 years of previous sa!6
means of this equations
Regression modejs Predicts one variable on the basis of Seeking factors that will predict 3
known or assumed other variables certain level of sales {ex. prjce,
advertising expenditure, etc.)
Economic Models Uses a set of regression eqqations to Predicting change in car sales as a
Simulate segments oi the economy result of changes In tax law
Economic indicato15 uses one or more economic Using change in GNp to predict
lndicators to predlct a future state of discretionary income
the economy
Substitution effect Uses mathematicai formula to Predicting the etfect of DVD playeE
predict how, when and unde, what on the sale ofVHS players
circumstances a new product or
technology wjll replaNe an eri5ting
0ne
Table 3. - euatitative an? eua-;IiGIiveEE;;G
Forecast Based on Time Series (Historical)

Data
This approaci exemprifies iorecasts
that use historicar or time series, data with the assumption
that the future will be like the past.
FoREcAsINc MgrHoDs FoR AVERAGtNc

Averdging techniques smooth fructuation in a time series becarse
the individuar highs and rows
in the data offset each other when they
arc combined into avenge.: rt generates forecasts
recent values of a time series that refrect
{e.g., the averaSe varue over the ra-st severar periods). These techniquds
work best when a series tend to vary.around
the averdge, although tftey can atso handle stdp changes
gradual changes in the ievel ofthe or
series. some techniques for. aulragtng
inctuO"r:
l. , Nairve forecasts - th e forecast for any period equ als the p revious period,s a ctua I value,
2. Movlng Average technique that averages

- a number of recent actual values, updated
new vatues become available.. The as
formula is:
to'
/-
_'
lVlA^ =
n
where: i . refers to the most recent period
n= n umber of periods (data points)
in tire nroving average
Ar= actualvaiue with age i
MA = forecast
ENG INEERING MANAGEMENT

t5
3. Welgfit d Moving Average - a lmost similar to moving

averaEe, except ihat it 6si€ns t'ionle
weights to the most receht values in a time series
wMA=IWA,
where: wr= assigned weight for each At

Ar= actualvalue with age i
Exponential Smoothing.- a sophisticated weighted

moving averaging method that is srill
relatively eaiy to use and understanc. Each
new forecast !s based on the previous forecast
plus a percen tage of the drfference
between that forecdst a nd the actua r varue of the series
at that polnt. That is;
Ft= Ft,r*a(At-r-Ft-r)
Where; Ft = forecast fdr period t
tr.r = fore$st for period t-1
q. smoothing constant
=
Art : actualvalue forpedod t-1
'.ht".'pt"g,r
National Miier lnc, sells can openers. Monthly
sales fora seven-,nonth pedod were as
follows:
Month Feb. Mar, Apr. May Jun. J|J1, Aug.

Sal€J (000 units) t9 18 20 l8 .22 20
Forecast Septembersales volume using each

ofthe following:
a. Naive approadl
b. A five month moving average
c. A weighted average using 0.60 for August, O.3O for July and O.10 for June
d. Exponential smoothing with smoothing constant equal to 0.2b, and assuming a March
forecast of 19(OOO)
E
ENGINEERING MANAGEMENT.
47
FoREcasIN6 MErHoDs FoR TREND
The trend component of a time

series refiects the effects of any /ong-term
Analysis of trend involves developing factors on.fie s€ries.
an equation that will suitably describe
preseht in the deta, llnear trend (assuming that trend is
A eqdation in theform:
Y, =a+[1
whete: t = specified numberof time periods
from t=O
yr: forecast for period t
a = value ofyt at t=O
b = slope ofthe line
The coeffkients of the line, a and b, can be computed from historical data using theie two
equations;
o -
nltn-ItIv Iv-nlt
,=
"I,'-(Io)'
"::hrx.'pr.r.a
Calculator sales for a Califomia_based firm over the last L0 weeks are shown
rorro'#+l!+!:p+,!" in the
Week 1 z
"1r",'o,l
otru r."nj
4 5
r*
"-na;;;,",*;;;;;;;;
7
; r;
;l and "=
Unit 9 10
700 724 720 7n
selEs 758 7SO 770
IF
48
AssooanvE FoREcisnflG METHoo
Associative models identify one or more explanatory variables that can be used to predict future
demand The analysis in these cases yields a mathematical equation that enables the manager to make
predictions on the basis of given value of the explaining variables
The essence of associative technique is the development of an equation that sumriarizes the
effect 9f predictor variables. The primary method of analysis is knownas regression.
The simplest and most widely used fonrr of regression involves a linear relationship between two
variables. The objective in linear regression is to obtain an equation ofa straight.line that minimizes the
sum of squared vedical deviations of data poinE from the line. lt has the equation
Yr=a+bx
where: x = predictor (independent) variable
y, = predicted (dependent) va riable
. a =value ofy"when x=0

b : slope ofthe line
The coeflicients of the line, a and b, can be computed from historical data using these two
equations:
, nlxy-IxIv Yv -b! x
nLr'-\x)
' One application of regression in forecasting relates to the use of indicrtors. Careful identification
and analysis of indicators may yhld insight into possible futlre demand in same situations.
Conelation measures the strength and direction ol relationship between two variables.
Correlation can range from -1.@ to +1.00. A correlation of +1.00 indicates that.changes ln one variable
are always matched by changes in the sther; a -1.00 indicates that increases in one variable are matchgd
by decreases in the other; and a corelation close to zero Indlc€te little linear relationship between two
variables. The correlation between two variables can be computed using the equation:
'(I')-1241t,
ENGINEERINC MANAGEMENT
49
. "hr*.rpr.s,r
Hearthy
Hamburgers has a chain of 12 stores in Northern ,|rinois.
sales figures and profrs
forthe stores are given (in miflions of dollars) in the
folowing tabre, obrain a regression rineforrhe
data and p redict profit for a store assumtng sales of
S 1OM.
sales 7 6 t4 J.O 12 74 20 7
Protit o.15 0.tr0. 0.13 0.15 0.25 0.24 0.20 o.27 o.44 0.34
TEcHnreuEs FoR AuocATrNG REsounc!
. Once an organization,s goals h6ve been established, an lmponant

aspect of planning is
determining how those goals are going to
$g acmmplished. Before managers can organize and lead In
order to lmplement the goalt they must.hav€ resources,
which are assets of the organization (financial,
physical,. human and intangible).
(')
I BudgPting - process of mating a numerical plan for allocating
resources to specific
. activities. Manag€rs typicElly prepare budgets for ievenues, expenses/
and laBe capital
expenditures such as eguipment, renovation, and ihe
like. tr is not unusual ttrougt, tor
budgets to be used for improving time, space, and use of
materiai resources, These budgets
substitute non-peso numben for pbso amount. Such items as person-hours,
capacity
utilization or unlts of productinn can be budgeted for
daily, weekly, monthly.or yearly
activities.
5U
C.slr 6udg.t Erp.nx Eudg€t

torc@sb aash oa lirb pdmry a.tiviltes d
hand and how rwoh alkcet€ PGro afibunl lo clch
\4lll bs n3ad6d
P&tlt Bodg.l
oonbin6. l€vonua 0nd erPgnlo budgel ol
va ou6 t]nlb lo dsbmine eaoh unifs
Fofft ooftib!$on
suEsastlons for lmprovlng BudEetins
Collaborate and communicate,

'
. 8e flexible.
. 6oals should drive budgets - budgetg should not determine goals.
. Coordinate budgeting throughout the or8anization.
. Use budgeting/planning software when appropriate
. Remernber that budgets are tools
. Remember that profits result from smart management, not because ygd
bJdgeted from them.
Scheduling -
pmcess of formulating a detailed listing of acrivities that must be
accomplished to attain an irbjective. lt's detailing what activlties to be done, the order in
whlch they are to be completed, who is to do each and when they are to be completed. Two
popular scheduling methods are cantt Chert and PERT{PM.
lr
\1/
U Breakewn analysis - technique for identifying the point at which total revenue is jusi
sufficient to cover tota I costs.
)-t
Gantt Charts
A scheduling device developed by Henry

Gantt that shows actual and plan output over a p€riod
of time. lt is composed of a bar cnart with
time on the horizontal axis and the resourc€/activity to be
scheduled on the ienical axis.
Gantt chart is a popular toolfor planning

and scheduling simpte prolects. ltenablesamanagerto
initially schedure project activities and
then to monitor progress over time by comparing pranned
to actuar progress' The obvious advantage progress
of a Gantt chart is its simpricity and this accounts
popularity Howevet Gantt chanfailsto for its
reveal senain relationships amorg activities
to effective project management. thatcan be crucjal
Progiam Evaluatlon Revlew T€chnlque

and Crltical path Method (pERT-cpM)
A PERT/C'M network is a flowchart diagram

that depicts the sequence of activities needed to
complete a project and the time or
cost associatel ...rr .aiuitv. rt.is the most widery used,method
for plannlng and coordinating large-scare projects. "i,r'
By using this method manage|5 are abte to
obtain:
1. A graphical display of project activiries.
2. An estimate of how long the project will tu ke.
3. An indlcation of which activjties are the most critical to tlmely project
completjon.
4. An indication of how long any a ctivity can be delay€d without
lengthen ing the project.
PERT-CPM procedure:
1. Develop a list of activities that make up the project.

2. Determine the immediate p redecessors foreach activity in the project.
3. Estimate the compjetion time for each activitv.
4' Draw the project netwo* depicting the activrties and immediate predecessors
risted in step
! and 2.
5. use the project netwo* and the activity
time estimates to determine the earriest stat and
the earliest finish time for each activity
by making a forward pass.through the network.
ear/iest finish time for the rast activity Ihe
in the project identi;ies the tbtar time.reqirired
complete the oroject. to
6' use the project compretion time identified
in srep 5 as the ratest finish time for the rast
activity and make a backward pass through
the network to identify the ratest finish time for
each activity,
T use the difference between the ratest
start time and the earriest start time for each
to determlne the slack (float) forthe activitv. activity
8. FInd the activ;ties with zero slack,
these are ihe criticajpath activities.
9. Use the information from step 5 to 6
to develop the activity schedule forthe project.
5J
CRrTrctsMs oF pTANNtNG
Formalized organizationar pranning become popuiar in

the 1980s aniJ, for the more pirt, sti0 is
today' lt makes sense fo r an organ ization to establish some direction. gut
critici have challenges sorne of
the basics assumptions underlying planning.
]. ptanning may create rigldity

- Formar pranning efforts car lock an organization into specific goars
Jo be adrieved
within a specific timetabre. when these goars were set, the assumption
mav have
been that the environment wouldn,t change during the time period
the goats
covered, lf thar assumption is faulty, managers who follow a plan
may frce trouble.
Rather than remaining flexible _ and possibly throwing out
the plan _ managers
who continue to do the things required to aclrieved the orlginal goals
,"y noi b"
able to cope wlth the changed environment. Forcing a
course oi action when the
environment is changing can be a recipe for disaster,
2, Planning cen,t be developed for a dynamic environm€nt
- Most organjzations today fuce dynamic environments. lf a
basic assumption of
making plans - that the envjronment won,t change _ is faulty,
then how can you
make ptans at all? Today,s business environment is often
chaotic, at best. By
definition, that means randonr and unpredictable.
Managing under those
conditions requires flexibility and that may mean
not being tied to formal plans.
3, Formal plans canit replace intultion and creativlty
- successful organhations are typically ihe result
of someone,s innovative vision. But
visions have a tendency to become formalized as
they evolve. Formal planning
eff:rts typicaily involve a thorough invest;gation of the brganization,s
capabilitiei
and opportunities and a mechanical analysis
that.reduces the vision to some type of
.progtammed rogtine,
4, Planning focuses managers, attention on
today's competition, not on tomorrow,s survlval
- Formal planning has a tendency to focus on
how to capitalize on existing business
opportunities within
an industry. lt often doesn,r allow manager.s to consider
creetrng or reinventing an industry. Consequently,
formal plans may result in costly
brunder and hrgh catch-up costs when other
competition takes the Iead.
' 5. Formal planning relnforce success, which
may lead to ,ailure
- Success breeds success. That,s an American
traditjon. lf ifs not broken, don:t fix it,
right? wefl maybe notr succ€ss may, in fact, breed failure in an uncertain
environment. lt,s hard to change or discard prwiously
successful plans _ to leave
the comfort of what works for the anxiety ol the
unknown. suo"rrfJplni,
howevet may provide a false sense of security, generdting
more confidence in the
formal plans than is warranted. Many managers
wjll not face the unknown until
they're forced to do so by environmental changes.
By then, it may be too late.
5. Just planning isn't eno{et.

- lt's not enough for rE age6 just to plan. They have !o start doingl Managers
need to plan, but they also need to see that
the pla5 is carned out.
ENGI'{EERING MANAGEMENT
CHAPTER 4
ORGANIZING
- TO CREATE sTRUCTURE
A g'owing number of
or€anizarions
--' -""'trin o'r ih.i,,"r.;^- are
eiJ rrrLrusrfles _ _-
in the quest
rest ror usins variety of nev
using
for productivity and a,
:1,::l:^tj]"t-"
comoet*ivlr cuvanrage " are aexpermenting new forms or structurei
designs
oesrgns with "nJ
team n"**'
fespects to team, i'""'"" some
Some experimenting wlth non-tr"aition"l
ls applied ""r,^,T:::'I"lo-"antageless or8anizations. A
to manasemFhr ,",r,.,,.,^ lil li l"'idaryuvwrrsrzrng/ key word is restructt,,inn .â :.
::::i; Ti,
search Hil:iffi;:l' iff '"',T::"#,1,
for productivity gains. lfi llXil'1Li;l:?
Furt,- vr!J o'rrv'rt me vanguard ;::iJ:,;"JnT;fl
rightsizing and delayering
brganizations in i# ;
the rest, one also r"*
arso finds an empha orsanizations, those that
orgrinizations,
outperform
outperform
needs, rlexibirity
;;;;;',;,;i;#i
," jlllj
"" ".oi"l,it]""li;lTjtljt^t-":*uard
l":.::lrovees.
responsrveness to crient.
or customel
:":l;;j,;:li:,1:,:'i[ilj,J",":'",:."{::i::-"::x'iL]iil;ll'i,lli}iffiffffiiijH:H:
ln these progressive organizations, - !i'v"v'rrrren( and continual attention to quality improvements.
workpracetoachiev"r,,cr,pu,-fo,.,n"nll"";":-^::l:::,::lre seekins new *r,',;
workptace to achieve high perfor..n"nl"
;;r;;-ffi;rTil 1l11avs ;:l ;;.;;;;;
WHATts OB6ANIztNG?
Formally defined, organizins js

rogether to accomplish
nr^--.. of arEnging peopte
thp process
and other resources
r*,. ijtjlt"
]rtne to woTk
rhe,basic frrnctions of"management, it i.r_
involves both creatlng
a divisioln of labor
ror tasks to be performed
and then
coordinating results to
achieve a
.orjron pumor.. Given a clear
mjssion,
core ob.jectives and strategy,
,values,
organtzing begins the process of
rmptementation by clarifying
jobs and
rerationships. lt jdentify
who is ro oo
wh€t, who is in .harge of
whom and how
ollte.ent people and pans
organization are reldted
of the
to one anorner.
WHY Do MANGERs onGANI:E?
The organizing functjon

is
":L,T"?T::il"]
ilffif" :,", fi 1;::l*#:,:l #:l':["T: "n::T,.T:T:,ilili:
.Till""k*f : flT ",:,,trHi:i""
*i::{ Jl',ffi"il: ilJ#iJ
pr erort and idle organizatjonjl
resources.
;""1;:,,,i",..;:#H:
)/
Purposes of Organlzing
; illlii X![ ili:I::ii:,:i"'''ic

johsand c/,paftment
associated with individualiobs
t *"i,"","i 0",r"ê'sponsibiljties
4. clustersjobs into unorganizationar tasks.
5. EstabJishes retationshios
amn.o ;nAi,l,.J,._,_ greup
6. Establishes fil,,"JfflT:individu3ts; 3nd departmenrs
7. Allocate and deploys
o.ganizationa, t-urorra"r_
How oo MANAGERs
oRGA IzE?
No other topic in
manate
orsanizins and ofs"";;,,;;;;,,jI:lt as
much chan
:as.:ldercone
toon'on"i"*.".hur"r";;;',t" the past few vea.' as
that of
as managers search '"
out ,,.u.,u."1'i::, work are being reevaluated
o€anrzationt work *"a *,,, i"til"*". .tjrrrzjng
- designs that .-l":':lt
today's dynamic enui.onment. '
:an achieve
"tt'.;;;;;;";: Lil;,ff:.,1::::iJ:lT:,- 1,T.1il;
concept of the organizatiofl
9H"rd con."pt
Early thinking underlyins
oreeni,^t ^^ structure
-._.--
especralry *"*";*;;;;.'.;.";:rr::ation was premised oh
the idea that people,
:"",xlil,fl :i:.,t#,r j,1r#::;i^:i{ii:;j*, j::lx,T,:i:"j;1,ru:i;i

wields excrusive power
unquestionabre ob"o,*.. , ,ii, .:::-, to decide and enforce
con cept wa s p rev;r;;;;;;
; ;ffi :;::r.rrhe
ru re is "ob ev now,
o*"." i,L."j.' r"li
.Mah-to-Man Concept
The jndustrial orgaDjzation
"iliill?111"'i: H.erd. concept' In ihis concepr,
:fi :i'^ff 11",:,";:'::Ii:;::;:1.::[J,:"J'::;ilTTili]:
:H:1"[,'fi
:':ii:;ffi :"il:ffi "JJ*1:f ::::l;:;"ffi '"',J,"T::1.1"ii';:J:'i.i: his
:,TH'jT:::Tl? "' *" "-.-;;

;T:fi ffi j[,:ff 11:" j:""#"#":iiil.jtlt jjr:fi:i:::T:?,:j,J","j
;;;;;ffi j:;
;:
:::.::1Tn::?.'"
-__.Jv,, ji:,;:::i;":;i:.,lTfi
L,,c 5ame tevej
ofmanagement
:;::*:;:l:1lJ#:,"l"',H j a mong
ENGIIiE€RING MANAGEMENT
58
Detin ing Organ iza tio nal Stru

ctu re
Orgo n i zo tlo no I stru cture

is the fohai arrangement of jobs
managers develop or change within an organization. when
the
nvoves deciscins
"0.",.,-
span of control, centralization
il "i",il",ii,ildifffffii,':.!::::i:[:l;,'!i;;;{*i::j
and decentralizatio";;;-r;;;";;":.
(p
g work speciariza*o n - divrd ing
wo rk a ctivities in an organization
essence of work specialization into sepa rate
The job tasks.
' *,ir" *o*""oiu-
is that an
but instead o ur"*" 0.,-" ,",:'i:.1::::::' l:i activltv is not done bv one individuar,
Individuar emp,oyee, ";Jl.:::: j:il;TJ::HTI,.:TJ#"i1".:',1,',*;#:
(l>
V Departmantellzation _ aftor
-,^,_ ^-.:..,_,-
il""l.ff ffi :ni,""",_,*_**',":_,:"ff ::,U:1":',"i.:"Tj,#1,j

,:;:Til ;::1"j" ii;1ii1,,$il"i ;,:,T:"il:i"T";::n I H:l,J:ffi a*i
r"" major types of organizationdl s,."""*
divisional and matri* r,rullu"r"al,
"."i;".i""r,,
t. Functlonol Department/Structure
perform simiiar ta.sks.
- Broups together people with similar skjlls who
Members of functional structure share
Interests and responsibilities. t".f,ni.rf
"*j..lir"l
2. Divisiondl Deportmenl,/siructu
product, work with ;;;;;.-".#",, ;T;"?t;l;'-f"":::":[ ::ff:Jf
are especrafiy popurar among
organizations with diverse oo",, ,,oi..,,
;"#;
many products, territories, *n", extend across
customers and worf, proa*r"r-'-':''-,'
z.t p|oduct stri;tu| group5 together people
and jobs wo;*ing on.a
product o..e.vicl single
" :::::::;y":#cture - Etoups tosether peoore and jobs

perrormed in
2.3 Customer Structu groups together people
and jobs that serve the.same
.rr,or"r, or.ti",Ll_
2,4 process Structure groups
- jobs and activities
processes. that are part of the same
3. Matrix Deportmet t/Structure
;:mfui:*tu":*:il
o
divities.
rgan izationa
H i,il1,il:":i":1il: J:;:.H;:
Ia
Inal departments to
work with one.or more projects
or
60
Matrlx.Structur€
#i,:T"ffi]]:ii lli i;ilTl"-::ionship) - rhe or authority extendins

rrom upper
*rj*ti--,t;',"il;',,"T'i,'il*JJ?*iT.:$;i:;,i"",:,[:T, j:,"*;
The scajar reiationship is
related
n::: ;, ***d;* ;::,.:rt i:rliri,tl 1111.#; xit. h:ff ;"tff i:#

::::111"'1,from
extending
n",0, i,i .i
ou.'il1 ::J:1^'["J,#T:'"ilf;;1.;;*"r".
{,1,
one organhational. divirrn ,o
comrnunication outlined
on an organrzational "no,r.,"Tu-*
;"; ;:"" in the lines of
chan.
9ro"n o, control - the numb

of employees a manager can
' handled and managea. efficiently and effectively
lt is rom"f.f
1!::::*;;':'"i;;;il"i'{jlil"i':':::l1T::;:;'::i*,*['j',y#:
";"","r
fl:1l:.T:,T:l ;' *iltflJ' -o *"'"*;'''o;;;;;.;' supervises, the
"
;ffi *,lfl t*:,ffi ;::::.,"*:'"ji:',",J:'i:il'ff ;*:*":*:r;i

heishtoithe struct",", ;r" and the rower the
";";":;:TffT":t#:nanasemen!
' - chbracterized bv few revlls
and fetatively broad span of
:::;tff::Ttion
. Talt Organlzation characteriz€
- by many levels and a relativeli
ofmandgement. narrow span '
OI
Ci,
I centrarizaton and Decentrorization
concentrated. lf it is done mostly
- describes the degree to which decision makiag is
by the upp.l.luu"l, of-,i]*-"g!run,
lower levet emptoyee provides 1""nt."rir"a1 o,. if th"
input or could actually,"k. ;:;;r;;", (decentralized).
concept of centrdrization-centfarization The
is rerative;
never compretely centrarized "ot "oroiui" - tt,at is, an organization is
or decentrarized. rew organizattn function etfectivery if arl
decisions were made by
only a select group aa"ararrl a"r coufa they function is all
decisionswereddlegatedtoem.ployee5atlowestlevel' " "o
. Environment
.
is stable.
Lower-level managers aTe
. Environment is .o.pl"iiilft,n.
capable or experienced at
not a, . Lowei-level managers want a voice
maKtng. in
. decisjons as upper_level managers, oectSrons.
. Lower_level managers do not
. Decisions are significant.
have a say in decisions
wanl to . CorpoEte culture is orien in allowing
. Decisions are relatively minor.
rnanagers to have a. say in what
. Organization is facing a crisis haPPens.
company failure.
or risk of . Cornpany is geoirraphically dispersed.
r Cornpany is large.
. Effectivg implementation of company
. Effective implementation of
strategies depends on having
company involvement and flexibility
strategies depends on how
manage.s
to make
oectstons
retarning say over what haooon.
ra"torsthatin@
Formali:ation.- refers to how

star dardlzed an organization's
which employee behavior is guided iobs are and the extent to
th en th e pe rson o,,"r,n iio' i",,1il"n'.].1":'ffi1'#:, i: :"r,:*:lrjJ.:.,fl
done and how he or she ",does it. Employees
::1
O" ,o-t - ''' tn" s"m" input, in
in consistent ""n
exactly the same way, resulting "rp"o"a
an.d unifo.;;;,r* "-n-al
The Cbncept of Delegation

and Empawerment
WHarts DET.EGAnoN?
is the adualp.ocess ofassiSningjob

,
_.. , ?"rlorrn
individuars within the organization. The process
activjties anil c
to specific
Three aspects of delegation are
of deregation ,;;";:H;"#ngiuthority
easily recognized:
,f'*:i
\v
€ Responsibility - refers to the mental and physicat activities which must
carry out a task, be performed to
ENGINEERTNG MANa'eeUrr.rr
\Q
e Authority - the sum of powers and
rights entrusred to make possible
the perfotmance of the
wofk delegated.
(e
€ Accountability - the answerabjlity.and the obligation
to carry on the delegated responsibility
,* authority granted to ,,']" *uo.a,".r"
:fr:ft:[:: the proper performance
",.
0elegation, then, is the cntnrstino 6{ 16.^^^-rL,r..
* *" _," 0,i,, l'# l;'"::'""jf
-ij[:#j"t.] .::"J:
tnat a "manager
.,,"1,f ":: :,, " " "
perfects
only as long as he practices it.
:'1 ff ;:: :T J; :ij;
motivation for the subordinates
Tc be
io acI on the delegated responsibility"O"or",
in"-'l'"r,;;il ;;:
and authoritv.
WHATts EMpowEf,M€NT?
Almost every society has within

it some minority groups that feer rncapabre
own destiny simirarry, most of contro,ing their
work organizations have a nurnber
dependent on otners and that of
" emproyees who berieve that they are
their o*n ;,;; ;";" ;.
powerlessness contributes
to rhe frustrating "rroi,
experience ., ,", _"ir:"::[ilT
p eop le th at th ey ,"n-"'#l"T
can not su ccesstu ty perfo
self-efficacv are often caused'bv
rm their jobs or m"t" .""iingrur "r::;
.ontributions. probrems w,th
ma]or organizatio"J;r";;;;;;
Problems may also stem from ;e bevond the eniprovees,contror.
having to work under an autt-o.ita.i"n
fails to reinforce competence t.ua.., within a rewa rd system that,.
or innovation, or in a job that racks variety,
discretlon or role craritv,
Five Broad Approaches to Empowerment;

L, Helping employees ach.ieve job mastery {giving proper rraining,
. coaching and guided
experience that will result in initjaisuccess)
2. Ailowing more control ,n"_ di.icretion over job performance and
accountable for then holding them
out-rn,il]tr,
3_ providing successful
role models .(allowing them to obs€rve
peers who aiready perform
successfully on the job)
O yr,l9 social reinforcement and persuasion (givjng praise, encouragement,
feedback designed to boost self_confidence) and verbal
5. civing emotional support (providing
reduction of stress and anxiety through better
definition, task assistance and honest carins) role
When manager use these approacnes,

employees begin believing that they are
valued' that theiriobs have meaning competent and
and impact, and that *,"i6"* oooo*un,ties
effect' when they have been iegitimatery to use theirtalents. rn
empowered, n o r"r" ,,n",n r*, their
kind of performance that organizaiion efforts wit pay off in the
values.
.63
Organizational Design Decision
' Organizations don,t and won,t, have identical

structufes. A company with 50 employees isii,t
going to look like one with 5O,OO0 employees. . But even oO.nirr,,on,
necessdrily have simirar structures.
of comparable size don,t
wha t works. for one orga nization may not
work for another.
GENERIC MooElsoF ORGANtZATIoNAt DE'GN
Mechanistic Organization
- rigid and tightly contralled structure.
lt is characterized by high specialization, .rigid
depa rtmenta lization, narrow spahs
of control. high formalizatlon, a limited lnforma on
network (mostly downwaid co!'nmunication)
and little iarticipation in decision making
lower-level employees. by
t"il
V organic organization
- highly adaptive and flexible where jobs
can change rapidly as needs require.
specialized jobs, but those jobs lt may have
are not standardized. Empt6yg., are highly
empowered td handre diverse jobs activities trained and
''use and probrems and these organrzations
frequentry
emproyee teams Their high revers
of skirk and training ana support provided
team members make iormalizafion vr vw vr
by.other
vu!e
and tight managerial:o"*, u"""A;rr"
The appropriateness of theie two

models of organizations depeDds on
variables; orgdnization's strategv, four contingency
size, technd;ogy and deg.""].ril"li-.rn"*ar uncertainiv.
Woolward,sfinJ@
TRAotnoNAL ORGAN,ZATIoNAI DEsrcNs
\(2
U Simple structure
- organizational design with /ow deplrtmentaiization, wide spans of
control, authority centralized in a single
person and fittl" i"r.aif."ifr" that
used by small businesses in which ils commonly
the ourner and manager ar" on" ,nj
th" ,"rne .
o+
Structur€ - groups simiJaf or retated

..,e_-::nct:lnal ociupational specialties together. tt,s
tunctiona I d epa rtmentalization applied to the
entire organi;;;. ---'" a
_ made up of separate
,]-,31"':11:",r:l""ure business units or divisions. In
this structural
n:, rimited autonomy, wi*r aivision
lllll;:l.j i:i:::,::slo-l
performance and who has strategtc and cperational "
mai"eer responsibre
authority ou"l. ri" olur,c;;,;sponsibte
for
CoMTEMPoRARY oRGA |ZATQI|AL D$tG 5
r*s,
\ril
€ Team Structure _ the enflre
I
is made of work groups or teams. Needless
say, employee empowermeht to
slrganlzation
ilT5,;'*t"ii,t;.,:l';i$:X..-:#Hfi TJ:.,::fi ,'m:l"*J*"il

arso herd resporisible
o".i*-"n""."-',r,;;;;";;;:::J:'ii::. ""'' roi arr work and
o M"trrx siructure
- assigns speciarist s from
different functionar departments
. ^5- or more projects
one to work on
6)
.;#".T,,T:,H,ilIt:,t:'.:T':iuausrv t
work on projects has no rormal
of a proiect. instead, emptoiees
take their specific snul,
.iin,.l';"lt^"-:ljT ""Toi":"
p.j.a,t."tu,", ;;;;ffi; :H:T
i,
be€use they have th€ appropriate
work stin,
#fl::Hff:ffi
- eew"rE
",;f ffi #IiHP
"na "Oifitf"l.
O
€ Boundary less Organi:ation _ tl
Ii:ll.ltl hni*,.iil;;;;;"; ;l;,l,:";';;: lH:il:j :J,:n:,ff:ff
erminating boundaiies may
seem odd, many
rn*
nT:,:i
,"*Jsful
rnost effeor",r'0,"r,J"jr
finding that they can operate organizations ari
,-",.nln,nr'0"_,ri1"0".u"*ru.,*"r.
".b
]q lRterirat Boundarles _
horizontal boundaries imposed by work
departmentalization and. verti.rt f,^,,^r--,^-' ..-.
-"'-'specialization and
that . separate efnployees iriio
organtzationat tever,
n,Jr.Tlllr.l"undaries
""0
o5
€J
<i\
rgB Vlrtual Organization _ an organization that consists
of a small co[e.of full-tinie
employees and that hires outside
proJects. The
specjalists * to work on
inspifation for this structural"Inp"rar,,, "*ed
.rr"r-rrom
industry. (lf you look at the "Op.r.t the film
f
wh o move f rom,.,; ;
costu.rning, set design, etc,
; ;;]L :.;;lI; iili] :i ii lllil:y,ffi i::H;
as needecl)
ct'-)
\,.r\ Network Organization
(a.k.a. modu,la. orgaiization)_
r sorne work activities an organization that uses
Its
:s own employees ._
own. oh^r^v^^_ to do and networks
'-'-!!\J vr
of vu'srue
outside supplle.s
to provide other needed products suppliel.s
c(rmponent or work prgcesses. Thig structural
aooroe.h allows
approach a ^..,. organizations
to cgncentrate
Tlt:""'", out o*,er-
This is especjaliy appliaable
actiuities-,j:"il:T:,'T:, :" ::':rj::u. j:*,Ii'l^Lt
do those activities b'est.
for manufacturing companies.
Organiza onal Deslgn Challenges
,n",. *"1'i**iii,.; j"# jr1:Li:l'il':::]d,esi8ns

today's
that wirr best suppo,rt and raciiitate
employees doins
dynamic environment, there
which they must cont"''d*;',"t"* :.:, are certain charenges with
- Keeping employees
connected
ril'#Tl:"j:::rt"11ffi:::::- deveroped durinsthe 20,Acentury,

wefe fu'l-time and @ntinued
when worktasksare
done at an ind;finiteiy, and wo.k was
"ro,"rfa, oi".a ii#:"'" i'nder a. manage/s supervision.
many orga.nizations toa"y, Thatt not what itt like iii
.r0"";-i,ltti
'i,it,,:oj and network organizations.
design charienge *. .";lr".ii. -u'nu''
Indrng a way to keep widely dispersed
A major structural
connected to the organintion. and aotiii"
"rptoy"",
i
-
Ji:
-..- Building
learning organization
The concept of a learning
organization, doesn't invorve
Insread describes an organization a specific ofganizationai
design pef se but
mjnd_set or of,,f"."of-,r"i1r",
orsanization is the one n, impJication. A rearninb
*"
that deveroped
i","'""il:: :::,::
..o"rnn
this aspect, employees.ontinu.rru ':_::l"""ous'v leam, adapt and change. In
tnowrease'in r;a#;ilil::::H',fi#:r:[";"":_:,
".oui;"',;';::
""wredse
and
",..'"u,"r.,lrrir,n",
56
countrles and less importaf

have hisher revets of'or0*rr[":,
t*'lsped c!"rnt'ies wherc. emplovee! may
]J:r;::'J:;,"1.
Organizlng Trends in th€
Modem Workplace :
al:"r: i5 part of organizationat

life. Even
^!-_, in the searqh for new ones,
*"
as traditional stru are modified, refined and
:""_":::l.o
".rr*,"u o.o;";:::*r*r and implement them must
ll1lil jll,,
Amoris the oryanrzing rrends, a
common theme runs rnroughout
t;reate
needed to streamline operatjons
for1.,., :_-;:'_'lrcrrtE.
cost efficien cy anci
- making adjustments
_,g. "",.,-;
to a llow i.lcreased perticipetion by
workers.
xr.Jt!
ffi-* short"i chains of command
Organizations are being,,streamlil
structures are view"a unnecessary letels ol management; ftatter
u .o.np"tiolll",ilru::
".
Less Unity of Command
t?:X:':ii:ffirT:tJ.'J,","T::-t"ctionar teams, task rorces, and horrzontar structur€s and

conscious; as theY do
working for more t"h;;;;;;":r. "' so' ernpbvees often find
thernserves
Wid€r SFan of Control

. Many organizations are
: to widdr soan of contrcl as
and "empowermena,,r",,n*tnt chains of command are
shortened
individual manigers bie
numberof subordin",., takiry *P-;;;;r;;;,'..[=ui
ul;::^T::"e;
,/no operates with iess
I ciirect supervision
k s'
qH
More Delegation and Empow€rment
Managers in progressive
o_rr,;.r,^^. delegating more and finding
peopre at al morc ways to empower
tevets, s" ,n;:].'t-::'""t,are
they cah make more becilions
affecting thernselves and
ffi .^
-_rr, th.e,|.,"*'::'
uecentralizetion wlth
Centralization
Whereas empowerment
related forces are contributi
organizations, uouanaa,
centrarizedconrror."tn'
inrormation ;;";;; il;::::#"ilT.X1":':Hil: ;
68
CHAPTER 5
IN F LU ENCING - TO IN5PIRE EFFORT5
"lt is firn<Jamcntal drat

n dc.sta nd ins
oF t r. r,".,
pc.so ns. fr is b c-qins irh
::':;T"tr "
r w
r
n
",r "r rlir*;*::
.a
chairperson of H e.,,#;,::i:::
According
to Depree, wh
inclined to
o"riu*:+,"t *.
t:-tize the unique qualities of orhers,
*':t we become more
be needed to prouion "lj;;i.T.;T,
;;:;"ili"1
is best Bv varuins diversir
not onlv do we ieaf'' what mav
everyone.s contribution :res- we also benefit
to have an ,t^f.1ii""r,.,'".u ""d ";;;;;;l'
nrtuence on the organizatirn- by allowing
WHAT Is INFTUENcING?
,rf,r"rrtrT is the process of guiding

,,-_.,, . lt
directions. tne activ;ties of organizatjon
members in approprrate
involves focusing ondorganization
on members as peopre and
;;.ffir:
morate, a.oitratioi dealing with such issues
as
or
::::,,'*T:* lt is a good workins I
relationships.
critical ,.;-;;':
manage/s job. In fact tne
abirtry to
'nrtuence otheTs is a prjmary determrnant
or how successful a manager
will be.
rnituenc,ng tnvolves
the perforrn3nqp a;
rour managemeni activities:
> Leading
> Motivatin8
> Considering Groups
> Commun icating
> TEADERSHIP
WHo ARE LEAoEes AND

wHAT ts LEADERsHTp ?
Leodership rs the process

of insp:ri.lg others to work
the commitment and enthusiasm ltard to ac impanant tasks. rt buirds
needed for people ,"
;;;,;;;;;;#"omplish
dFpry rnerr talents fully to help
occompiish plans..
69
More specifically, it,s the process
crf influencing a group
the leoder. to achieve goals. And the oersoD
who does that is
Leading is not the same

as man:ri^d
^rrh^,.-L
-^-
3ililiil, ;s,much
l":o'": ""0 """,;; ;:";ii1:,li::l'ffi:,l:Jff::;; f "iilr::l ;n"#JJ;
broader in scope than reading and iocuses
ill:.:"t lt on nor
;1fi :T I
b eh a v o ra
il:-lT "rHi ;:,'ffi'"fi T:."1l
r,*
",.,i,.-,.,
":: "T?i";;:,l 1l "
:: ::::,*j
makes
skirs is o
sufe that a job gets
n
*"',,,:;:jff ;:ff.I :j: ji:::::;::n the
.i,: l:":"",,",",, o*,",,"",
business
" done,
and a reader cares about
world. A manager
combine manasement and and focuses
readership, rherefore, ."0",r",
organizational processes (management) 0""'o".,_;il:
with a genuine con""r,rro. *ort"r,
:nn:ff"lil i?Iti,i;l:
people (leadershio).
",
Fig. 5.2 - Leaders and t4anagel
LEADERSHIP AND POWER
The functions of effective lpa.ler<hi^ [^ i_ .L

lie in the wav a manaser
uenavior or ottrer uses irower to influence ithe
i;;; ;. tnu to get someone el5e to d
make things rr*0"" ,rrl ";;;.1":dership
,-*Tio" "oilnt ,or",n,nu rou want done or to
want. Research recognizes
executive success..Tabre ,n;i :o
s.1 shows i
and a second set th"t o",ua rn on",,"j"".:ff::X*:#;;;:'T;":::t fifirH Jr::::Tjj:
u,,.0on,,ffffiffiffi,oo,n"i 8"s"d on th" way -inlgelltsviewed

bv
tdst "rf you G-wh;im5TIGG; other
reward.,' - as a source of .p cia -kno-iGlE
and information "
you don't do wh;il;-sk,TDu;is-h
Legitimacy:. "B;ii;l:-
EN6INEERING MANAGEMENT
70
Posiflon power
One important source
,. of powr
hierarchy orauthori,v or positioi,,in the orsanization,s
ri" irl;". iiri"l"ffirff ;ff:1#us,
'
:r;# Tff:;#,,"'"';:jxt:flluence th_rough rewards. rt is
il,e auirity to one. somethins
a means of influencing the b ehsvio
r of otn"t
'""'"'
. o"oo"
co€rcive power -.is,n" *0,'"t
rcrty to punish or withhold
Inruencing other peopre. poritiue out.o,'nej as a means of
. - is the caD acity to influence other

l.egitimate power
ppople tiy virtue
ofoffice.
the rights of formal authority or
71
LeadEr( Evh;r.r - L,
effort level. .t.hev
n.n0iir",,...."^1...,1,9"
a ,or of enersv;
have rpl:ri.,.r., r,-.
,r,o," rni i",iu".' "dve ;#l,Tl1l::[T:1ff:i,",1"i,.-":f
,'re'ssrv persrstent ,-.":l:nq they are
,. ffi#i:f in therr activrrres
anJihly
desire ro intuence
and Je.d otners.
t. :"î"j.!,t;"#fifns
tt"uil,
rhey wc -'
de.nonst
"unsrrate the w'il,t8ness
,1:n:r,r"no
. ifi-{.#:'#:^:",i1i;?:}i:.fi:xff:,T."il'""JT",,1,"1"J,;:"T,, beins rrurhru,or
, i,tffi,ill,i:ii:::it",l?$il"".:H[.;,.*.,j""1il:,1^,::i,"::;"o1Tj:;1"**n
6. Job-retevantknowl€dre
Enective leaders
**int,**
havei hlgh degree nr!^^_,,^--
, ;.,,ff"",,i;::#;I"#f :;":i*ij?:i;Tii,::ll"_::llliit;[iT3_ill,,1lil,ii]
enersetic' livetv peopre Thev are
i::ti,1il:" sociabre, asserrive
and rarely silenr
oi
f)
:.,iJ:liHY."#;;:]11.lli,",';,]." ize aurhoriry dictate
work methods,
make unirareral
g)
;.t1)1fl:::Hll!l;;;o ''",.",nips is cnaracterizes
by mutuar trust and respect
,or sroup
Initiating Structur€ - structuring work and work
relationsh ips to |neet job goals
C)
g Employee-Oriented - emphasized interpersonat relationships and taking
care of employeej
needs
Production-Oriented - emphasized technjcal or rask aspects of job

to Increase production
output
contemporary Views on Leaderihip

)-i
(f,
g Transactional Leaders - lead primarily by using
social exchanges (o r transactions); guide and
motivate fo|owers ro work toward estabrished goars
by exchanging rewards for their productivity
-"x
\\,/
c Transformation Leaders -stimulates and ihspires (traDsforms)
followers to achieve
'extraordinary out"omes; they.pay attention to the
concerns and deveropmentar needs of
individual fotowers; they change fotowe/s
awareness of rssues by herping those fotowers
rook
at ord probrems in new wayi; they are abre to excrte,
arouse and inspirJ forowerr;;;;;;
extra effort to achieve group goals
g charismatic'visionary Leadefs - a'r enrh usiastic, self-confident Ieader

whose personariry and
actions influince peopre to behave in ceftein
ways; they have vision, are abie to articurate that
vision' are wirring to take risks to achieve
that vision, are sensitive to both environmental
constraints and follower needs and exhibit
behaviors that are out of the ordinary. lt is most
appropriate when the follower,s task has an
ideolcigicaf [urpose or when the environment
involves a high degr'ee of stress and
uncertainty. This exprains why thqy often surface in poritics,
religion or wartime or when a.business
firm is startind up o,. f""inl.ru.iu"r crisis. (Ex. Manin
Luther King Jr' - used his tharisma to bring
about sociar equarity-through nonviorent means;
-
Stev€ Jobs achieved unwaverjng loyalty and
commitment from Apple Compute/s technlcal
staff in eariy '80's by aniculating a vision of personar
computers that wourd drdmatica[y change
the way people lived.
', lrticutatelswEEFGE-
"/ Communicate high pe rforma nce,expectations
'/ Exhibit confidence in the ability of subordinates to meet
expectations
/ Empathize with the needs ofsubordinates
'/ Project a powerful, confident and dyhamic presence
Practice usin8 captivating and engaging voice
" tone, i
'73
Leaning toward the tolloirer wirerr coirnunicafinF-1

Maintain direct eye contact when ccnversing with follorvers.
Have a relaxed posture and animated faclol expressions.
Leadership lssues in the Z1n Century
For most leaders, being effective in today's environment

is unlkery tc involve such chaflenging
and changing circumstances. Howevet the 21'r century
Ieaders clo face some readership issues
'mportant
Managing power
Most effective leaders rely on severat different forms of power
to affect the behavior and
performance of their folloyiers. He/she gives orders (legitimate),
praise them (reward) and
discipline those who cornmit infractions (coercive). As an effective
leader, he/she also strives to
expert power {based on his/her.expertise and knowledge) and referent power (based
lav.e on
his/her being admired)to influence his followers, Hence, balanc.ing
the used of powers is a must
to avoid being abttsive cause as an old adage say ,,power corrupts but lock of power
corrupts
obsolutelv."
ix6)
f' ; Developing Trust
Managerial and leadership effectiveness depends on the abirity
to gain trust of folrowers. For
instance, downsizing, corporate financial misrepresentations
. and the increased use of temporery
employees have undermined employees'trust in tneir leaders and shaken
the confidence of
investors, suppriers, customers. A survey iounci that only 39% of
' us employees and s!% ot
canadian employees trusted their executive leaders, Today,s ieaders
' are faced with the.
challenge of rebullding and restoring trust with employees and with
other important
organizational stakeholders.
fr? proutoing teadership

"$,icat
Leadership is not valse free. providing morar leadership invorves addressing the means that a
leader uses in trying to achieve goars.as we|l as the ccntent of those goars.
r.ack of ethics usua||y
happen when leaders abuse their power fo!" theii peronar.gains ( i-e. give themserves
rarge
salaries and bonuses while, at the same tirne, seek to cut costs by.laying off
employees).
w)
!' .' Empowering employees
iilvolves increasing the de.cision-making discretion of workers. Millions of
: :rll::verment
individual employees and employee teams are making tie key opuot,nc
de"i;s that
i directly
affect their wo.k. Different this
74
demands, for the need to addres

successfuriy compete with . rr"il:?;"'ii:::jjffH1fl ,:t ;TilT"':",;il':;
rmplement. changes quickly. but empowering
is not appropriate for a circumstances, when
employees have the knowledge, skills,
and experience to do their jobs competen y but
they seek autonomy and possess an intemal when
locus of control, it can Oe beneficial.
4? c"na", oin"rences and leadership

Inere was a tinre when the question ,,Do
males and female! lead differently?,, could
accurately characterized be
as.a purely academic issue _ interesting,
but nor very retevant. That
time has certainly passedl Many women
now hold senior management posit jons and
around tne world will continue to join many more
the rnanagement ranks. A,though women seem
hjghly on those leadership skills needed to iate
to succeed jn today's dynamic global environment,
should not fall into the same trap i,s one
before, there is no on"'O.riroli.ior rfl stu.tionr.
whith leadership style is effective will fnrt."al
depend on the situation, so even if women
and men differ
in thelr leadeiship styles, one should.nor
assume that one is always preferable
to the other.
4w
r " Cross.culfuralleadership
what works in china isn't rikery to be effeciive
in the philippines or in us. For instance,
of Asian leadershrp styles revealed one study
that Asian rrnuca^ oraiu;ud rurloao
decision makers, effective communicators were competent
"no
and supportive.of emFloyees: ,aa""",.",rrr"
leadership style because it influences ir*,
choose their styles randomty. They
how followens will respond.,;"";;";;;i;;ff;;;:;
are constraineO O, ,n" ionditions their follbwers
have come ro expect rhe exhibit berow provides "unur"i
Jeadership studies.
;;;;';il;; serected.cfoss-curtural
Koreah leaders are etp".r"d,ot tffi

kindness or generosity without being
3f,:;'i?"rff:l*:jiow ,rkaa ,o ao ,o ,""n uy
"."
Japanese leaders are expected to
be humble and speak freque4tly
Scandinavian and Dutch ieaders who
single out indjviduals witt puUtic prai.e
embarrass, not energize, those individuals. are likely to
Eff€ctive.leaderu in Malaysia are expected
to show compassion while using more of an
autocratic than participative style.
characterized
:*'"tff,j"T::
row ]:X'-":. 1.: low team bv
serr-protection,
hish perrormance orientation, row
oii"nt.tion, n'd-."L.;rr""ii"
;:HL:i",* nlri
> MOTIVATION
WHATts Mo.nvAnbN?
Motivation is the inner state that causes

' an individuar to behave in a way that ensures
the
accomplishment of some goal. ln other.words,
motivation explains why peopl" ;;;r;;;;. ;;;il;;
a rna nage r unde''tarids organization ".;
members, behavior, the.no." .,f,ri ."n"g"r;rl;;;";:"
"Of
/J
subordinates' behavior to make it more consistent with the accomplishment of organizational objectives,
In essence, since productivity is a result of the behavior of organization merhbers, motivating organization
members js the key to reaching organ iza tiona I goals.
A motivationalwork setting is rich in rewards tor people whose performance accompiishments

help meet organizatjonal objectives. Formally defined, a reward is a work outtome of positive value to
the individual.
6\
H Extrinsic rewards - are valued outcomes gjven to someone by another person. common
workplace €xamples are pay bonuses, promotions, time- off, special assignments, awards, ver6al
praise, and the llkes.
({)
t'Intrinsic rewanJs : occur naturdlly during job performanc€. Some examples a re the feeling of
competency, persona) development, and the likes.
Motivating Organization Members
People are motivated to perfonri behavior io satjsfo theii persona|.needs.

Therefore, from.a
manageiial viewpoint, motivation is'the process of furnishing organization
members with the oppcthunity
to satisfy their needs by performing productive behavior within the organization,
In reality, m!nagers do
not motivate people Rather, they cr'eate environnlents in which oryanization r.nembers
motivate
themselves.
Figure 5'3 makes the point that unsatisfied needs can read
organization members to perform
eirher aopropriate or inappropriate behavior. successfur managers
mjn;mize inappropriate behavior and
maximize appropriate behavior among subordinates,. thus raising the probabllity
that productivity will
incIeaseand|oweringtheprobabilitythatit'wi||decrea5e.
unsatisfied needs of organizatibn mambers resulting in either appropriate or inapproprrate behavior.
ENG INEERING MANAGEMENT

to
WHAT MorVATE pEoprE?
What are their needs?

,
he called hygiene fa"a"
i. Hr listed €xtrinsk and intrinsic
factors of motivation, The
,",i]ro,itot former
""0"n"
@e",rtnti. r"*or, (Hygiene Factorsl

.. pay,.or
salary rncrease
. Technicit supervision
or having a competent
r *
superior
The human t
relrii.6.
tions quality :-'"''
-,-supervision
^,,^rL._ of
. organia"rio' policy and admlnistfation
. *ork,nu .o'n'' physica
9r Is urroundings
'oo 'u"utnrno"'on
-:r,
\\ll
r tntrinsic Factors (Motivation
Factors)
.. Achievemen
. ;ilil:f:ffi iljil:nt task successrutv
Recosnitiori
: ff::::::fl ffffi"JH,",1:,,#x,*o*
> GROUPS,TEAMS AND
CORPORAJE CULTURE
WHATIs GRoup?
,r c.""p,r;d"";r#i i#:T,T:J:1,":erv. managers must have

a tho
;T,s[: Ttir*, .t"xi : p1fu::r;:#1*?":T:ffi '.i; T*:tr

,'ff .1ffi:;:ilil:*li
[H:],:.:-"y,:: lilTiJ;::r'*''"" "'"",'r*l;
ail other members "*l
on facel
otner group riemberc.
r
Accoraingly,
c.o, p. in
I-u]ication,
jlffi :il:*""",,##-il,:
each ,r"ro .";i", ,*jlh
H:]ff :,ili ;';l'i::"
*"
a
"'
""i.i
2. Groups inevitab
oc€ts of orsanizationar
3. Groups *" L3ill,:"
t"t" either ex,stence,
-aoi'raouun.u,
desirable o,, unauai-utu
orig"n,r",,on. bre consdquences wirhrn rh-
within th€
4. An understandir
w*hwhch,,effi fi i:Jl:"J"1;T1''il.,;i:::::;fii:?l::,#:l::,il*,
erueilEeRit'te ivervAGEMENT
77
Kinds of Groups in Organizations
Formal Group is a group.that exists in an oiganization

by virtue of management decree to
perform tasks that enhance the .attainment
of organizstional objectives. Formal groups are
commonly divided Into command groups and tasl( groups.
cohmand group is a formal group that is outlined in the

chain of command on an
orSanizational chait. They typica y handre routine
arga.'izationar actiyities.
2. Task group is a formal group of organizatioh members who interact with one
another to accornplish nonroutine organizational tasks. Members
of any one task
group can and often do come from various levels
and segments of an organization.
Two examples of formal groups that are often

established'in organizatiohs are committees and
work teams.
1. commlttee ls a group of individuals charEed with performing
some type oi specific.
activity and is usually classified as a task group. From
a managerial vi€wpoint, there
are several uses foiestablishing committees In
an organlzation:
2. Work team is a task group usec in organizations

io achieve greater. organ izational
flexlbllity or to cope irith rapid growth.
Interdst groug is an infoimal group that gains and

maintains membership primarily
because of a common concern members have
about a specific v.issue,
Frlendship group is an informal group that fitrms

in organlzations because oi the
personal effiliation members.have
with one another
WHATts TEAM?
ENGINEERiNG. MANAGEMENT
78
Orgariizationi i teams take many d.iffererit forms:

L. Problem-sofulng team is an organizational team set up to help eliminate
a speoTied
probl€m within the organization. The
typical problem_solving ,""r,f.r., i a ii
members and is formed to discuss ways
tb imprcve quality in all phases of the
organization; to make organizational procesies
hore efficient, or to improve the
overall work environment,
2, Self-managed team is an organizational

team established to plan, organize,
influence, and.control its own work
situation wjth only minimal direction from
managelnent.
3. Cross-functlonal teai is an organizational team composed of people from
different
functional areas of the organization who
are all foqrsed on a ,0".,f,"0 oOiaO,u".
WHAT ts CoRpoRATE CutruRE?
co'porgte curture rs a set ofshared

varues and beriefs thai o*anization
the functioning and existence of iheir members have regafding
arganization. The type or .o.pi,"r" curture
that iF present in any.
be discoverei by studying that organization,s
:it:l]*,.:..*
traditions, history, and phvsicar eniironment.
spe.ciit combination of status symbols,
A management thir understands..the sigriifienci:
these faitors can use them.to deverop of a,
a corporate curture that is beneficiar
to the firm.
CD
U status.symbols
with the various positions in the iirm. Looking

at the organization,s statui
syrhbol gives an observer a feeling for
thi organization,s social hierarchy.
@riaditions ina uistory

A firm's history and tradltions can determine
how wo*ers in thit. part,cular
' firm act on a dairy basis. Typlcarry, tradrtions
devetoped over time ret workers
know exactly what is expected of them.
By developing traditlon;. therefore,
managers can steerthe everyday bdhaviors
that go on in dn oiganization.
79
> COMMUNICATION
What is Communicetion?
Com;muni@tion is the process of passing information

between two gr more people in such a way
that each understands e)€stry what the others is saying. communicatron
i, mo." ir,an ,r,"a ," ,nln"
people understand; they aim at changing peopre's
bdhavior, to have them stop something they are now
doing, do something they are not now doing, or change the
way thev are now doing something.
Efrectiie @mmunicatlan occurs when the intended message of the
sender and the interpreted
meaning of the receiver are one end the same. However,
efficient cornmunication ocburs at minimum
cost in terms of resources expended, such as time and
costs,
V"rO"t.na Nonverbal communlcation'
lnterpersonal communication is generally divided into two types; verbai and nonverbal
communication.
g Verbal Corirmunicatlon is the sharing of information thlough wcrds,

eitherwritten
or spoken.
Ei
\\1/
g Nonverbal Communicetion is the sharing of iniormation wiihout
using words, such
as gestures, vocal tones, and faCial expresiorS.
Formal and Informal Commsnicaflon
f+S
\w
I Formal organizatronal communicaflon is organizational communication
that follows
the lines of the organization chart. There are three basic types.of formar organizational
communication:
80
.2.
a",n
\7
r Informar organizatronar commsntation is organizationar communication that does
not follow the lines of organization chart. The grapevine
is the network of informal
organizationa I commun ication. lt has
the following charasteristics:
It springs up and is used irregularly within the

oEanization.
o lt is noi controlled by top executives, *ho ,ry
not even be able to
influence it.
o it exists largely to s€we the self-interests of the people
within it.
There are four common grdpevine pattems

and they are as follows:
.1. Singl€-strand grapevln€. A tells B, who tells

. - C, who tells O, and so dn.
This type of grapevine tends to distort messages
ftore than ady other.
2. Gossip grapevine
-A infotmi everyohe else on the lrapevine..
3. Probabitity grapevine
- A communicates rdndomly _ for eiample; to F
and D then continues to inform other giapevine.
members in the same
. way.
4. Cluster grapevlne _ A selects and tells O, E, and F. F selects ahd

tells H and
. B, and H selects and tclls C. Infoimation
in this.grepevine travets only to
selected individuals.
87
w
@ T
,al!\
ffim
(:;ctii)
.L
?'
@
SINOLESTRANO
(...h !.1. €n..Forh.r)
cLusr€a
PRO€AB[rry .
(tom t.r'. 9th.r.)
(..ch r.n<rer y r.||.rh...)
' Fig.5.4 - Grapevlne patt€rns.
Barriers to Effecttue Communications
afar Poor cholce of Channels

Good managers choose the right communlcatlon channel, or mmbination of
. channels, to accomplish their intended puryose in a given situation. In general,
written channels are.a.cceptable for simple messages that are easy.ro convey
. and for those that require extensive disseminaticn quickly. Oral channels work
. best for messages that are @mplei and dlff icu lt to convey, where intermed iate
feedback to the sender is valuable.
EI'
w .\ Poor Written or Oral ExDlerslon
Communicatlon will be effective only to the extent that the sender expresses a
mesiage in.a way that can be clearjy understood by ihe receiver. This. means.
that wordi must be well chosen and properly used to eipress the sende/s
intentions.
,f,g
\, ) Faiture to Recognize Non',€rbalSlgnals
82
. At times our body may be ,talkint, Jor,u" *m... ve otherv,,ise mjintaih

silenc€. And when we do speak, our body may soinetimes
"say,, diffurent things
than our words convey. A mlxed messdge.occurs when a persoh,s words
communlcate one message while his/her aitlon!, body language, appeaGnce
or situational use ol interpersonal space commurlicate something
else,
Physic!lDlstractions
. Ahy number of physical distGctioas can interfere with the effectiveness of a
communication attempt, Some of these d;stractions, such as telephone
interruptions, drop-in visitors, and lack of privary, can. be avoided or at least
minimired through proper. planriing.
Wr*,,rrn"*
The hierarchy of authority in organiza tion!. creates another potential
barier to
'
t
effective communications. In this case., ferrng
- the irtentionar disiortion of
information to make it. appear most favorable to the iecipient _ is often seen
. in the communication between lower and higher levels in organizations. The
pefon receiving filtered communication can end up making poor decisions
ecaus! of a biased and inaccurate information base.
lmprovingCommunlcation -
A number of things can be done to overcome barriers and improve the

orocesi of
communicatioh. lt Includes the following:
Managers must be yery sensltlve to their llstening responsibiliiy. When people

.. ,'t;|k,, they are tiylng to communicate sdmething. That tomethind, may or
may not be what they €re sayirtg. Active listening is the process of taking.action
.to help the source ofa message say exactly what he/she really means.
|'5
open communlcatlon chann€ls

status effects. can limit communication betv,/een levels in organizations' For
those iri manageilal or leadership positions, hcwever, ihere are number of
steos that can be taken to keep communication channels open.
y'Management bY wandering Around (MBWA) means dealing

directly with subordinates by regularly spendlnS time walking
around and tatking with them about a variety of work-related
. matters:
y' 360-degree Feedback involves upward appraisals from

subordinates as weli as additional feedback from peers, intemal
and extenral customers, and higher manage's.
Proxemlcs end space Deslgn

An important but sometimei neglected part of cohmunication invcjfues
prox€mlcs,. or the use of interpersonal space. The distanc€ between p€ople
conveys varying intentions in terms of intimacy, openneis, and status. And, thE
proxemic! or physical layout df an office is an often overlooked form'of
nonverbal communication.
W*"nno,ow utitization
.communication In organizations can benifit greatly from advaricemenil in
' informaiion technology. Employees in the ndw workplace are expected lq be
computer literate arid willing to use the nbw technologies to maximum
advantage. Some examples are E-rhqil, voice mail, vidEoionferenEing,
computer-mediated meetings, and more,
Valuing Culture and Diyersity

communicating under conditions of diversity, where the send€r and riieiver
are part of diff€reni oiltures. is certalnly a siSnmcant chaltenge. A majdrsource
'of difficulty is eth;ocentrism, the tendency to consider one's culture superior
to any and all others-
.84
Conmunidation and Conflict Management
communication and rerated "'peopre" ski|s nrust be

at the foiefront df any attempt to deverop
managerlal and leadership exPertise Among these
essential skllls, the ability to deal with iiterpersonbl
conflicts is criticar' Formaly defiied, conflict is a
ald.lor
disagreement between peopre over issues or ,rur*."
y emotional antagonism. Managers and leaders spend a lot
,*.U"",,", .,;;:;;il;;
vanous torms. "i
f;5'
\t/
e Substantive conflict involves disagreement over goals,
resources, rewards, policies,
procedures, and job assignments.
-,iil
$7
I Emotional conflict results from feelings oI anrer, distrust, disike, fear, and
resentment as wellas from personalitv clashes.
Both forms of conflict can cause problems

in the.workplace. But wh"n rn"i,"g"d well, they
helpful in promotiri! high performance, creativity, can be
and innovation. Functlono! _rirn, ;r'".'rror"*)
conflict, stimulales people toward greater
dysfunaionot conflictis destiuctive and
work
"fon,,
.oop..r,io;:;
- " ;;;;;,;;;":,
hurts task performan;
.Conflict Management Styies
disagreement,
t Accommodation (or sntoothing): Being

cooperative bui .unassehive; teiting the
wishes of others rule; spoothing over
or overlooking differena., to ,"in,",n i,arronu.
&d
\)/
I Competition (or authoritative
working asainst the wiih., ot othllilA:::#ff
- - .Tff:;"lnH.:;r".J
',e
forcing through the exercise ofauthority . .---:
85.
li
acfileve lts deslres arld the other party

does not, llkc In
ENGINEERING MAi{AGEMiNT
86
Namer Scor€:
Cours€ & Year: Class Schedl
I Dater
w EXERCISE 5.1 - WHY OO WE WORK?

'66
Nam€: Score:
Course & Year: Class Sched:
s Date:
# EXERCTSE 5.3.
98
CHAPTER 6
CONTROLLING _ TO ENSURE POSITVE RESULTS
.'Kceping in touch... Staying informed...

Being in control...,,.These are impodant
responsibilities for every manager. But
control is a word like powe, if you aren,t careful when
leaves a negative connotation contror paysa it is used, it
positive and necessary role in ihe management process.
a oasrc managerial responsibility anci important
It is
key to sustained organizational prgductivitv.
WHAT Is CoNTRoLLING?
Controlling is the processes ol

making something happen the way it
was planned to happen. As implied by
this definition, planning and controlting
are virtua,ly inseparable functions, In
fact, these two functions have been
called the Siamese twins of
management.
The figure shows how

controlling fits in with. the rest of the
H:"::T:,::r]-":"s_s.€ontro
ing sees to it ihat the .ier,t, thin;;;;n in the risht way and at the risht
ol:ganrzational plans. lt helps ensure that performance accomplishments

; ;",
throqghout
;;;;';;J ;;;;;;:l;
org"nir"aion;
::::::::::T: :T
organizational policies lo:her
in.means-ends rasrrion nn,r
and procedu.es,
;;"i;;;;;;;ffi",.r""r;;;ttttt
"n
WHY Is CoNTBoL IMPoRTANT?
PlanrinB can be done, an organizarional

strucrure created to facilitate efficient achievement
goals and employees motivated through of
effective leadership. S,itr,
in.r.,, no rrsurance that activjties are
going as planned and that the goals
and employees and managers are working into it,
attained. Control is important, therefore, because in fact, being
it,s the only way nranagers know whether
organizational goals are being met and if not,
the reason why. The value of control functiori can be seen
in three specifjc areas: planning, empowering
emptoyees and protecting the workpiace.
Goals provide specific direction to employees and

managers, as the foundation of planning.
goats or having emptoyees ac€ept
soats is no-guarante" inriln"
T:_::":_l,".._r., ::",,ng
:?::::l*:_i:::f::: l":" been taken as tne ord .a"g"
s"l. ;;i ; ; ;
""."r;.r.;",""',
il;;:ili
::::1f:T::lj"l!o'' v1,to ensure that what othu.,a." suppoled
are being achieved. in reatiiy, managing is
to;1,;;;il:::lfr'rilJ;
";;
an ongoing,;."";;_-;;,;:;;; ,ff;1;;"#;"::1;
process, controlline DTc link back to i,lustrated in Figr.6.2; lf
99
control; they'd have no way of knowing whether

their goars and prans werc oo ta*et and what future
actions to take.
' The second reason conirolling is

importa4t is because of employee
empowerment. Many managers are
reluctant to empower their employees
oecause they fear employees will
do
sdmethjng.wrong fo[ which the manager
would be held respons;bie. Many manaleis
are tempted to do thingj themsejves and
avold empowering. .But an effective
cortfol
system 6an provide ihformaticn and
feedback
on employee performance, thus reducing
potential problems.
contror is to protect the o,g"niliin

l:i :::::":::j:1,^T,-:ii":,
th,eats.from naturar disasters, ,#;;;;;;;;;;;;;""
"nd
its assets. roday,s
::::"::T,0,::::.,T':n1"..1 security breaches and even posible:tenorist ";",:;
:r,::]U,-rn_1i--0,:*rtions, anacks. Managers must have
,:" organizationt
emproyees, racilities, lata and inrrastructure.
:::: ::,*::::^::-1.,1 aftlrmath of catastrophes, As many
whether financiar, s;",;;;;;;",;;.; ;;
jlT-lil":ive
i.*: and backup plans help-. assure
::::::'..1"j:-1i'::::.':fcontrols
onry mjnimar disruptions of their ongoins
lll",jl. oper€tions.
business
Controlling process
1, Establishing Objective and Standards

The control process stafts when performance
objecives and standards are set through
planning. In this first step of the process,
performance objectives .r"
standards for measuring them are set. Two : ' ii"
d"nn"a ,na "'
types of srandards cari be used;
.Output standaid measures performance resuJts
in terms of quantity, quaijty, cost, or
tlme. Examples include percentage error, pesos
d€viation from budgeted expenditures,
and the number.of units produced or customers
seiviced in a time period.
. Input standard medsurps wcrk efforts that go

into a performance task. They are
used
in situations where outputs are difficult or expensive
to measure. Examples include
conformance to rules and pTocedures, efficiency
in the use of resources, and work
attendance oi punctuality.
2. Measuring Actual ierformance

The second.step i5 to measure actual performance,
pe u[Iirnce, The
Ine goat
goal nere
here is
rs to.measure
to. accurately ..
. the pefdrmance results (output
loi standards) and/or performanee efforts
{input standards).
100
3. Comparing Results with Objectives and

Standards
step three is to compare measured performance
with ihe objectives and standariJs to
establish the need for action Thisstepcan
be expressed by the folrowing controrequationi
Th€re are different ways of accomprishing the comparison of desired and actuar
pe rfo rm an ce:
' Historical comparison

- uses past performance as a bEnchmark for
evaluating current perJormance.
' R€lative comparison

- uses the performance achievements of other
persons, work units, or organizations
as the lvaluation standard.
' Engineerlng comparison

- uses engjneered standards set scientifically
through such methods as time and
motjon studies.
4. Taking Corrective Action

The control equatjon indicates
that th€.greater
the measured difference between desired
and actual performance, the greater
the need ior action. The iast step in the
is taking any action necessary contrcl process
to cor'ect or impTove things. This alrows
for a judicious
' management by exception use of
- the practice
snows the greatest need for action.
of giving priority attenron to situatioris that
Iwo types of exceptions may be encounte.e
. problem situation -
ictualperformance is below the standard_
' opportunity situation
- actuar performaice ls above the
stanaara:
IE-.ewiecw__-
,C-tokrtto@
Controls should be economical.
"v/ controts shoutd be stabt; y;;;exibte.
"/ Controk should indicate changes ordaviations.
._ Lontrols should be objective.
r' Conrrois should take into consideration the organizarion
structu re.
r' Convol must be understood by those
whc are to use them.
"' controts should be abre to indicate
fut"." 1""]rir"",n=",'"*O
or further study.
, :gj::::","-"j*:n,
controls should be abte to inoicate altematjvbs to
:lective
correct deviation.
104
Types of Control
The major types of managerial contrcils are:
,..<
t{2
€ Feedforward or pre-actlon Control ensures that proper directians are set and that
nEht resources are available before the v,/o* begins: They are designed
to Eliminate the
potential problems later on in the process by asking an imponant
but often neglected
question i ..What needs to be done before we besin ?,,
(9)
E Concurrent or Steering control focuses on what happens during the work process,
They monitor ongoing operations and activities to make sure things are being done
accofdinS to plan. The key question is: ',What can we do to improvo things
before we
Itnrsn /
a.,\
g Feedback or Post-a.ction Controltakes place after work is completed.
They focus on
. the quality of end results rather than on inputs and activities. They ask the question:
"Now that we are finished, how well did we do?,,
lyp€s of Controls
ENG INEERING MANAGEMENI

702
Internal vs, External Control
Managers have two

broad options wrth respect
to control,
fD
,iJ:::T'":1fi:ffi"j ;f,t:,:'ery,on
peoor" to exercise
iduals and groups to
serr- cont'or ou",,nu,. o*n
expectations. exercise self-discipline
in fulfilling job
In.Or8anlzing
. Contro! by selection ond tmlntna na",*.
:::ffi :T, :: ::,.2"::; #*Till:"fi : f ;; i5f

lL;,5 :1
103
control vio performance approlsol occurs when individual pedormance is

assessed and eval0atedto ensure high ierformance results and to identjfo
areas where training development is needed;
control vld Job design ond wo* struciurcs involves putting people to in jobs
that are designed to best fit the job holde/s talent.
ln Influencing
. Control through pedormance. modelihg means that leadershrp sets
the
example and that workers have good mociels to follow in
theirjob activitjes.
. Control by performonce norms occurs when team or groups
members share
commitments to high performance standards and reinforces
one anothefs
eHorts to meet them.
. vld organizotlon sfructure occur-s when an organization,s teadership
llityit
helps build,strongvalues forthe organrzation as a whole.
Compensation and genefit Systems
lf compensation is attractive and competitive i' the prevairing

rabor markets, it can make the
organization hiShry desirabre as a prace of emproyment.
Anci if righi peopre are in ihe jobi .o*, ."n u."
reduced and productiviti/ will increase over the long
run. The more iapable the workforce, the lesser the
burden on external controls to ensure ijesired level
of performance.
Employe€ Discipline Systems
Discipline can be defined,as influencing behavior

thrcugh repnmand.
mana8eria|control5houldbehandledinafaitcon5istent,andsv5t"i"ti.'"n..._. ldeally, this form of
Progressive disciplind is the process of tying

reprimands to the severity and frequenry. of
misbehavior' undersuch a syst€m, penalties vary according
to how significant a disruptve oerrauror r'ani
how often it occu*. rts goar is to achieve compriance
with rr.ganizatlnar expectations through the least
extreme reprimand possible.
Intormation and Financial Controls
when the utilization of resources is considered from

the standpoint of manageriar contror, the
use of information in financiar
anarysis of firm or organizationar performance i5
criticar. Managers shourd
be able to understand and assess for contror purposes
the following rmportant financial aspects of
organ jzationa I performance :
704
Agid Test Current Assets - Inventories

-_----- Test. liquidily more accurately when
Lurrent Lio',biltties inventories tum over slowly or are
dlfficult td sell.
Leverage Debt to Total Debt The higher the ra o, the

Assets more
.?notal lsset-s leveraged the crganization.
Time Pl'pftts before IntereSt &Taxes

Measures how many times the
Interest t otol Interest Cllarges organization is able to meet rls
Earned
interest expenses
Activity Inventory. Sales The higher the ratlo, the

Turnover more
Avero.ge Invsntory efficiently inventory assets are being
uSeo
Total Assets SaLe s The fewer assets used to achieve a

Turnover Total. Assets glven level of .sales,. the more
efficiently manaidment is using the
orBanization's totdl assets
Profltability .Profit Netprofit after taxes

Margin on
ldentffies the profits. that were
7'otoL Sales generated by various products or
Sales
service.
Return on Netproftt after taxes . Measures the efficiency of assets ro

Investment ----.-Total Assets generate profits. .
> PURCHAS|NG CONTROL.

Among the approaches now being tried to
control the costs of purchases are:
. bqylng power organizations are ceritralizing purchastng rc

:"u:fT"
ouying in volume.
- allow
105
Small number of suppliers

-
organizations are committing only to suppliers
with whom they can negotiate speciar contracts, gain quality assuranc€s, and
get preferred servjces..
. supllier-purcheser pannership _
organizations find ways to work together in
a partnership so they can cperate in ways that aflow each partner
to contain its
> INVENTORY CONTROI.

The basic principte of inventory control is to
make sure that it is just the right size for the
task at hand. Among.the approaches in inventory
controls are:
. Economic Order euantity (EOal _ is a method of inveirtory contrct that

involves ordering a fixed number of items eiery time
an inventory level falls to
a predetermined point,
' Just-ln-Tim€ (Jrr) scheduring - scrledures materiars

to arive at a workstation of
facility,lust in time,,to be used.
> quAuTy coNTROt

euality conirol involves checking processes, materiali, products, or
services to
ensure that they meet high standards. One usefultechnique
to quality control is the
statistical quality control, which is the application of statistica
I techn iques to asiist
in quality control. lt usually uses control charts which
disptay work result! on a
graph that shows upper and lowei control
limits (UCL and tCL).
Potdntial Barr'ters to Succaisf ul Controlllng
To avoid potential barriers to successful controlling, managers

should take astions in the
folloWing areas;
€NGINEERING MANAGEMENT
106
short term' but it m*ht wet cause the nrachines to deteriorate io the point where it
rmPossible to meet long-term production is
quotas.
tWr"r,.o"rr
rrusrRATroN AND MoRAir
worker moiare tends to be row
management exerts too much contror. Emproyees
"vhen become
;::]:f illT",ji,1fi.';". managementr:s too r,r","lu i,,,"r.,* il ;,; ;;i.;
","
i^., ;:
that contror activit;, ;;J";il;""'",:X,:i"T:::J,TiilX
production. i:"#i";f.ff ;*n:
Y'*
\/ } FITING OF REPORTS
Employees may perceive
that man:oaa.^+ i- r--t__ --
;;',:*f**fi":""::"::'1"ff
rrect,ve action penaining
:::::il'if[iT:T:J
:::"""'::1'T;f i''n
to their organizational
drastic. unit will not be too
PERSPECTIV€ OF ORGANIZATION
MEMBERS
.can be designed to focus on relatively
llT::l-:*tr:O
manageB must remember
to
narrow aspects of an organization,
consider any prosp""r" a*"Or" not only in relation to
the specific activity being controred
but arso "a,jon
in reration to a'otherorganizationar
unit.
ffi"*", ur.."o,
*" goals or the control process; thev ari
:ffi:i,;ilffi;.il:. Ll mererv the me6ns to
jiTl;::
j,:ii";Jr,l';:iff
' ^,".,",""iJ".i;{i
activities that can be justified onry irir,ey ffi T:"".ffi'"":..,11:*
vietirom" orl"n,:rltion"r u.nefit that
of performing them exceeds the cost
Making Control Successful
In addition.to avoiding the potential

barrieE to successfui c
certain activities to make managers can perform
the.ln*o, oro."r, more effective, ro
,n.r,onra,,tn"
::.rff::r
munagers ,houra m]le sure
that contro,ing r"r,r,;;j:;,j;;:1,t"Jj:"#,::"ijij
5PECIFIC ORGANIZATTONAI.
. ^ ACTIVITIES BEING FOCUSED ON
tn" various racets or ti"
H"dT"t'.'J:r[lll,'l'"" ";"it o'"""* are appr'priate to the control
ENGINEgRING MANAGEMENT
!07
fflI
r-\ DIFFERENT KTNDS OF ORGAN|ZAT|ONAtGOAts
Managers shortid remember that the control process
can be applieo to many dlfferent facets of
organizational life, and that, lf the organization is to
receive maximum benefit from controlling, each of
these facets must be emphasized.
I
rTl
?.\ TIMETY CORRECTIVE ACTION
Managers should take the corective action as promptly
as possible to ensure that thi situation depicted
by the information gathered has not changed, unress
conective actions.are timery, the .organizational
advantage of taking them may not mat6rialize.
e
tsfl
A COMMUI{tCATtON OF THE MECHAIVICS Or rHg
COh|TSOt iROCESS
Managers shourd take steps to ensure that peopre
know exactry what infoirnation is required for.a
partlcular contror procest how the
Information is to be gathered and used to.compire
various reports,
what thii purposes of the various reports are, and
what corrective appropriate gfuen those
invorved in controlring must"."
reports' For contror to be successful, afl indivlduars "O,on,
have a working knowredge
of how the contrcl process operates.
108
Instructions:
Encircle eithef 'ta, or ttb,,
to indicate the item you most agree with
following statements. in each pair of the
1. (a) Promotionsare eamed through
hard work and persistence,
(b) Making a lot of money is largely a matter
- (a)
2. Many times th e reactjons of teach
of breaks.
ers seem haphazard to me.
(b) In my experience,
I have noticed that there is usua,y a direct connection
study and the grades I get,
between how hafd | .
3. (a) The number of divorces indicatp< .6, more
h^.. and
th,r more
cates that --- , are not trying to make their
-^-^ people
marriage work.
(b) Marriage is largely gamble.
a
4. (a) lt ls silly to think that
one can really change anotherperson,s
basic aitjtudes.
{b) when lam right I can convince otners_
5. (a) .Gettingpromoted is really a matter
of being a little luckier than rne next guy.
(b) In our society, an jndividual,s
future ea mlng power is dep""Ol",
6. (a) lf one knows how to deal
wit "0""',r,ii* .OUor.
easirv red.
(b) r have ritre inru""."
7. (a) ln my case, the grades lmak€ ""..,J;:;:?iHffi'iilJJ-e
ru.r n.' notr,ins to do with it.
(b) sometimes r f*, *", n,"" lj,"',il:n:l;,il:::1,"ffn"
,
b, (a) eeople like me can change
the course of world affalrs if wd make ourseh,es
(b) lt is only wishful thinking heard.
to believe that on" on ,."rtry inttueice what.happens in society at
large.
9. {a) Much of what ha ppens to me is p robably a matter of chance.
(b) I am th€ master of
my fate.
10. (a) Getting along with people
is a skill that must be practiced.
(b) lt is almost impossible to figure out ho*,o ofurr" ,orni-o"oof".
ENGINEERTA'G MANAGEMENT
lno
Scorlng
Give 1 point for lb, 2a,3a,4b,5b,6a,7a, ga, 9b, loa.
_ 10
8 = high intemal locus ofcontrol
6 _7 = moderate intemal lows of control
) = mixed locus of control
3 _4 = moderate extemai locus of control
Inte rp r€tation
This instrument offers

an impression'of your tendercl
toward an interriar rocus of contror.or
a hich ir,temi i"",, v'
ffi:i:i:ffi.:::j":",:,,^":,-:fi
control over their
own destinies. Thev
-,";" ;^:;:--::: ",'.""*,to
most responsive
'-.,rrl'or ro berieve
oetreve they have
setf-control to opportunities for greeter
in the wo*p|""". p"ooj"y ,Tay.b€.
*r,,*,"pp"n, io J;;;;"; ;1;:ff ::? :ilil:l H;,:'".:ij:::"ll"T
mmfortabie with self-controland ;"",;lil*
more responsive to external
controls In the wo*place,
INTRODUCTORY CASE
pRETry DOV.E DEVELOPMENT

CoRPORATION: l,tl FOLTOW THE BOYS
tt was in December 19, 1990 when Engr.

Mitagros Abrera founded her own
company' the pretty Dove Deveropment
corporation (pDDcj. The company
a 51-hectare turmtand was abre to buy
"tonr :h:.
deveroped into a residentia/
diversion l."rd i; ;;;.;, Buracan. The tand was
subdivision witrr rot ,ir"r-r"nJi, u",
meters. Selling began as early as.tune
3oo to 450 square
1992.
Before founding pDDq Engr. Abrera

accumulatedmany years of experience working
with various companies form construction
to rear estate development. The exposure.
helped her in managing the activities
of the company. O, ,"""r., managbr
Abrera expancied its operations. of pDDC, Engr.
Rawrands were acquired ii c"banr,uan
City in Nueva Ecija, in Bataan, and city and san Jose
in Tarlac. ff.," ,"rl"iing
able to sell the developed residential
0"0"",nr",;r;;;;;r;,
iots as quickly as tfr"V ,f,orfa.
Engr. Abrera feels contended.as
the company's performance .was beyond
expectations' As she was reminiscing her
her graduation aly .t tt," university
March 19G8, she remembers the of the East in
words of her clos e friend: ,,Mila,
v.ve hove aheady
our BSCE course' Somedoy, you dnd finished
I may be successfur, but remember, hothing rosts
forever. However, there is something you cdn do to
deldyi, i"ro"Ur."
Encr' Abrera suddenry tho.ught that
r what her company is reaping
now may not rast.
for residentiat tbts may decline
:"J".r:Jr"H[".and On.n oversuppty of iots
"r,h"ln'rn"n
officers or the companv,

the.marketins manaser
n,",", ll"?",11"":::::f
hinted that 1,51:l
the company's sales growth may.have ,,r".d;';;;:'t::1":1"j
recommendedthatitjstimetoconsiderdesigningane*p,od,"t.
After the meeting, Engr. Abrera sank in

deep ihought, thin kinS 0f the re.levance
new product design. After alL ,h"1 of a
,l: considered develping resiOential
lots, it was as if
she had e naturar feeling that househords
w* acquire them. yl.r, or obs"ruing keenry
mar'ket gave her with sufficient insight the
on demana ana proauct specifications.
feels so lost in deciding wh€t moves Now, she
she should make.
111
CHAPTER,7
HUMAN RESOURCE MA}.IACEMENT
"f.op/" tLe conparyl,-. aisct h;r p9op/"

, "o nAo r"l<e tAe JiLcrcnce; it t?
peopL u'ho worl< for!|tc conpang, .nast.inporbnt
who deternine whabver a conVang
ddvec or LnguisAes..-.,
_ Coopers and Lybrand-
Many organizations
. ,.r,jT^"j-T:-:-"xim, or something crose ro it, to acknowtedge
the
daY rn organkationar success. These-orsanizations
il1[::t;*tl[,::nloYces man resource management
riro ,..-eni.. il'.i.il
department. activities - even if there is a separate HRM
WHAT ts HUMAN REsouRct

MANAGTMEMT?
Human Risourcz Manooement

. is thF r,.^.a..
process ^.
of att'actln&
^+.--r:-- developing and rnaintaining
rarented and energetic f,::'-l:
worKorce. .tT a
readiness oranyoi",r;;";;;;;:;'"'Jl'j:ffflffi:jt" makes an impreceabl."t'ru,ti;" i"'ir,"
There are three major responsibirities

in the human resource management
process namery:
> Attfactint a quallty-workforc€ _
. recruftment and selection
this is the process of human
resource planning
trainingand development
and career planning and development.
> Malntaining a guality workrorce _

this invojves managernent of
and tumbver, performance employee retention
appraisai ana .orp.nrrtion .? i"n"iit .
ENGINEER ING MANAGEMENT

11 't
> AERACIING A qUAUry

WORKFORCE
.,, rnrrl the nght people to its workplace,

_.., lo
- it must have a clear
an organkation m fiot know what it is looking foi
understanding of the jobs
to be done und ,h" ,u,l"t required
must have the system in place to them well. Then it
to excel at employee recruitment
and sej:ff
@rur"n *".our.e planning
fof human iesource pJanning

,t: orderly study of jusr what is done, are set by job anatysis,
:f,"^,:::i::,"": which.
]::::": *rr"n, *r,i.., io;rii,ou
::I-," "f:,"cl"tentiat nerv jobs. tt provides usefut
useo to write and/or update
"no
inr"_"i"l il"i *" *
hb desctip{ons, whjchare written statements
job duties and responsibilities. df
used '.o createlob spe
The information *" r.l,r*
,r","0" O.
" "i
clficotions, which li*, ,i," qr"iiri..,ion.
Jor,*,a
" "o
113
Fig,7 ,2 - fob Anatysis process-
(9
I R€cruitm€nt
Recruitment is a set
of activitiEr desrgned
.tc<i.^^,.r .^ __
to attract
apprrcants a qualified iool of job
to .n orguni.uti;:itiesEffective
recruiting should bring
opporrunities to ttre attentill
specincations. rn",."
"rp,.-."t
and skirh meer job
"* *"To"J. T::ff}.fi ;:j:es
Extemal Recruitm€nt _
- s€eks iob
ioh.ah,{i,{-}^-
tandidates r_--
from outside
organization. '"tkt
trt"*rrt ofthe hiring
training cente,., aglncies' colleges; technical
o"r]llll-"To'*tent walk-ins' employee r€ferralt
even persons from..11ll 1nt"tt"
rmpeting organizations
aniJ
recruitment, are ali sources of extemal
. lntemal Recruitment
rh is rnvoives notif ;;;.i:i::
postings and personal
recommendations. "lffi::iffi fi ni:;,"fi ffiTfi
Decruitm€nt
This is a method for reducins
workforce. lr is a manasement
:T.:iir:n,
ff::::lL:.:l':1,,;:::;T* :t:'.:the":, 0,""*"i,.,; ;: ;,,""",",
following table.
can be rired, *r ;";-.;:;":.n more beneficial to the
obviousty people
Keep in mind *r",,."r'u;"rrl,Tllbe
r the method used to
organization..
reduce the number of
174
employees in the organization,

there is Tro eas, w", tD do it, even when
absolutely necessary
Firing Permanent involuntary termination
Layoft lemporary involuntary termination,

may last only a few
days or extend to years
Attrition Not filling openings created by votuntary

resignations or
normalretirements
Transfe rs
either latenlty or downward; usualry
[11i1e-emotoVees
buttan reduce intraorganizational
:;ffit#||:il|:s
-
Reduc€d workweeks Harr'ing employees work fewer
hours per week, share
Jobs or perform thei( iB a part_time basis
'6bs
Eariy Retirements Prcviding incentives to olciei and
more senior employees
tor retiring before thejr normal retlrement
date.
Job sharing Heving employees sha.e one full-time

position
Selection
Thk is the process of choosing from pool
a of the best qualified applicants.
steps in the typicai sejestions pfocess are shown
in the figure below.
. Application form _ declares the individual

to be a formal candidar€
for a job. tt e aootir:nr,<
qualifications.
documents the
^-.. ^: ;;-:^_.'"
aDplicant's personal history and
lnterviews - are important in the

selection prccess because of the
information exchange they allow,
lt is a time when *;,r;;;
apptrcant and the potential employer
can leam a lot about one
another-
Employment Tests - are used in the screening ofjob
applicents. Some
common employment tests are
designed to ia"ntity int"ttig"nl"l
aptitudes, personaiity and interests.
. Reference and background dtecks _ are inquiries

employets,
to prevjous
academic advisors, co-workeTs,
andlor acquaintances,
11s
regarding the qualifications, expetience and past

wotk records of a iob
apolicant.
. Physical examlnaflon * is a health check that helps ensure that the

person is physically capable of fulfilling job
requirernents and as a
basis for enrolling the appllcant in health_related
fringe benefits such
as life, heelth, and disability insurance progra.,ns.
}.
n:
Fig, 7,3 -selectlon procegs and

Reasons for Rejection
> DEVEtoptNG A quAUry WORKFORCE
when peopre join an organization,

they must 'ream the ropes" and
way things are done' sociarjzation bemme fumiliar with the
is the pro."rr or inflr.n.ing
a new eriproyee in a way consrdered
tiJ.*-i"t.tionr, uehavior and attitudes of
desirable bv the orginizattn. th" int"nt ilf sociirization
process is to help achieve in the
;,Jll,,;::"ff:ffffment the i"rio"r.,r. fit berween the ir dividuar, the
@ Emptoyee orienution
Orientation makes new emp/oyees
familiar with their jobs, co_workers,
policies, rules, objectives, and organizational
and services. eoou orientation
s understanding of
";;";;;;".r".
ENGINEERING MI{NAGEMENT
1J5
the organization and adds purpose to his/her daily job activities. lncreased
perforrndre. grater
job satisfaction,' and greater commitment to
the iob and organizationar culture are the berined
reSuns.
@r."ininc o"veropment
"nd
Training is a set
. of activities that provides the opportunities to acquire
and improve iob-rerated skiHs-
'tE-
On-the4oh ttcintng takes place in the work setting
while someone is doing a job.
. Job rotatlon allows people to spend time working

in d iffereht jobs and thus expand the range
of their job capabilities.
coaching occurs when an experienced penon gives

' specific technical advice to someone eJse.
' App*ntrceship invorves a work assignment rvherein person

a seryes as understudy or
asststant to sorneone who already has the deghed job
skiils.
Modeling is the process by which someone demonstrata:s

' through personai behavior what is
expected ofothen- .
' Mentoring is the sharfng of experiences and insights

between an experipnced and
inexperienced person
€
rk oIf'
the'job trutnino is accomprished outside the work
settinS. rt may be done within the
organization at a separate training room or
facility or at an off_site location
2is
\llP
I Perrormance Management
The process of formary assessing someone's
work accomprishments and prdvidind feedback rs
refe.leo to ar performance appraisar. rt serves
: quality workforce.
two basic purposes in the maintenance of a
y' Evaluation . purpose is intended to let people

know where they stand re,ative to
performance objectives and standards.
u/ Developmerit purpo"" l, intended to asslst in their iraining.and continued peônal

development.
Performance appraisal methods commonly

used in organizations include the following:
o Graphic Rating scer€ ' uses a checkrist of

tra its or chara cteristics to eva ruate performan
ce. A
manager rates the individual on each trait
using a numerical score.
777
Narrative Technlque - uses a wrilten essay approach

io descrlbe a person,s performance.
'Behaviorally
Anchorad Ratlng scatss (BAR') - uses speciflc descripiions
of;ctual betlaviofs
to rate various levels of performance..
Crltical Incident Technique - invofues keeping a running

log of effective and ineffeclive job.
behaviors.
r MultFperson comparrson - compares one person,s performance

wrth that of others,
> MA|NIA|N|NG A quAuw WoRKFORCE
It is not enough to attract and develop a qualified workfoice; ;t must be successfully

ano managed for long-term effectiveness. nurtured
@c"r"", o"u"ropr"irt
Formarry defined, i o'er is a sequence ofjobs and work pursuits
that constitute what a person
does for a rivinS. whire some suggest
that a career shourd be atowed to protress in
a somewhat
but. erways opportunistic way, otheB view
. ::Iom, and pursued
ptanned
a career as something to be rationaly
in a logical step-by-step fashion, Carcer. plannlng
is the process of
systematicaty matching career.goars
and.individuar capabirities with oppohunities for
fulfillment' sooner or later, most people's therr
careem level off. A caraer.plateau is a position
which someone is unlikely to move a from
higher levelof work responsibility. Three corRmon
reasons
for career plateaus are personal choice,
limited abilities, and Iimited opporlunlties.
ZPs'
V Retention and Turnover
Replacement refers to the management of promotions, transfers, terminations,
retlrements. layoffs, and
c
']$* Promoton is
the advancement of an emproyee to a better job
responsibilities, more prestige or statut greater
- better in terms of greater
skir, and especiariy increased rate of pay or
sarary.
o
r-r*
Ttansf€r is the mcivement of an employee
from one job to another on.the sehe occupational
and on about the sam€ level of wages level
or seta ry. some typ€s of transfer are;
r Prodlction Transfer - is intended to avoid

rayoffs on onejob whire workers are
being hired
for a similar type of work elsewhere.
118
. Replacement Transfer - is similar to

ihat of produstlon transfer hswerer, an empbyee
longer service is transferred to a similar job sith
in another depanment where he replaces
notherwith shorterservlce.
versatility Transfer ' is intended to trdih

wo*ers to handle a variety of jobs in prEpardtion
. for prcduction or repracement transfers
or for sma, compan ies.
shlftTransf€r happens when shift

' assignments are not .otating;
'-- - transfers are made from a
less favorable shift to a more favonble
shift. .
.-.
t Remedial Transfer. ' is intend ed to correct fa ulty selection or placement of an employee.
.
6
,B;.
Terminatlon is the Involuntary and permanent
dismissal ofan employee.
Compensafi on and Benefi ts

When properly designed and implemented,
comp.ensation and benefit systems
qua|lfiedpeop|etotheorganlzationandretalnthem. help att'ct
. Bese Compensation - ls the salary or hourly wage paid to

an indlvidual, The wage or salary
rate that an organization has to @mpensate
personnel at various tau"i, *.iar,-O"p"naing
upon: .
1. The financial condltion of the company

. 2, The wage and salary paid by other
companies or organizations.
4. The demand forand supply of labor.
5. The strength of labor
. 5. Govemmental regulation
. Frlnge Benefttr the additional nonwage

or nonsaiary form of compensation. Some
of benefits incJude; er€mples
1. Vacation and sick leaves with pay.

2. Hospitalization benefits.
3. Medical care.
4. Educa onal benefits.
5. Financial assistbnce in the form
of loans fo, home construction ano emertency
7. Retirement needs.
benefits.
8. profit sharing.
.9. Chdstmas and production bonuses.
ENGINEEhING MANAGEMENT
'119
Course & yeai;
EXERCISE 7,1
- WORK VS. FAMIIY
- YOU BE THE JUDGE
Instructions:
Read the following situation.

I
Joanna, a single parent,

was hired to work g:15 am
computers for a firm. Her to 5;30 pm weekdays selling
employer extended her wor*O"U
* on saturdays. Joanna refursed
r,,i,f ,o O, weekdays and from
l"tj-"1
nad l*oold?mson and
a six year
,o *orn Ju hours, saying that she
that I "*u,
sa id rh is was .,p..i.
snare in herping out during

**'ff; :'#:: i,Jili*
r,"q i :"j5l;'l;:Hi:*
';11 :1,
the trunch". stirJ refusing to
tired. She sued the employer. work the e*,n hours, Joanna
was
you be the judge

in tltts case' Take an i'dividual position
quesrrons: on the followine
Should Joanna be al/owed
to work only the hcurs agreeo
to when she was hired?
in askirrgar
.ol,.:;:::?ffiFcorrect "'pbr;",,;;;;rJ,',"oir,,iry,t.tus, to work the
Form into groups as assigned

by the ins*uctor. share your responses
questions and try to to the
develop a group consensus. ge
position the group adopts' sure to have a rationare for
Appoint a spokesperson who the
class. 8e prepared to participate can share the resuits with
the
in open class discussion.
ENGINEERING MANAGEMENT'
120
Preparation:
Make a list of the generic questions you

think any employment interviewer shourd
ask to any job candidate, rega rdless
of the specific job or situation. Then, place
an X next to
those of the following items
iou think represent a dditiona I lmponant questions to ask.
-- How old are you?
-- wnere were you bom?
Where are you from?
What religion are you?
Are you married, single or separated?
lf not maffied, do you have a companion?
Do you have any dependent children

or elderly parents?
Instructions:
Formworkgroups as assigned by your instructor.

Share your responses with other
group members, and jisten to them.
Develop a group consensus on a list of generic
interview questions you think any manager
shourd be prepared ro ask to job.candidates.
Also develop a group consensus on
which of the items on *re preceding rist represents
questions that an interviewer should
ask. Elect a spokesperson to present the group,s
results to the class, along with the reasons
for selecting these questions.
MANAGEMENT
. To reach organizatlonal goals, all

produce must plan, organize, influence, and
control to
some type of goods or serytces. ^managers
Naturally, th€se goods and services
organization to organizatl,on. vary s,Snificantly frori
WHAIls pRoDUcnoN?
production isthe transformation of organizationalresources

. . Transform.tion is th t"t otrt"ot necessary
into p roducts.
to change thes€ reiources into products.
. o*anrzational ,".o,'t
. produgt, _ - .,,
"r" "ssets avairabre to a r
are u"n,"*t
tus goods and/or services
awed .tml""l;tlnt""J"T:::""'-
with the prannins, contio,ins and
decision makins
"".",."J;::;;1ff:^1T:,'ffiitlii:"1i1''
The Production Systsm
The eiements of a production

system conslst of men, matedals,
info'nation network designed machine!, processds, and
and to ,nteral
production system are
easily identified,.located
ha;;;n,ouor. ,"o subsystems within ihe
Ue pnysWt
,n"
the iifurnaaonsysfe' whici"ystem;;il;" 'n
produce outputs, and tEnrtormation of inputs to
coordinates ,:ontrols the action of
system The characteristics oithe the. physical
prooucrion system are: "n,
@ t"*r,"r,'"nrbrmation
process
The transformation prDcess
consists of inn,rr.
^^---,:^-_ __,
racto-are,o",";;;;;;;":,'l',ili:il':"":iJ,il:H"T:;:lttJ,l"1j5:"HfI
transformatjon model applicable
to manuiacturin& marketing, orservice
rype business.
@ o o"rr"" or r"oetiiiveness
the pruduction svstem. rhis is true

:ffi1"fl":.1#::ffi:::'"H:'llished' Repetition' to
orany type produdive
some extent, results in,economic
efficient production. and
ENGTNEERIN6 MANAGEMENT
t22
mr!..rar€
N
MA
V
Flg. 8.1- Materiel T|€nsformatbn process
ia\
\1/
I An informatlon system superimposed
on thr phys,:al system
coordination and effective contror
throuEh an in;ormation networi.(
inputs throuSh various stages ensures smooti flow of
of operatron res,rring in ti,a iin"r p.oau"t,
includes the orSanizationar The information system
strudurg directivet *"nr, r"*"nicar
system. and erectronic servo-
""0
ffi
r Meteriel Flow process
. The materialflow process
p.*rr;fff"T::lfi1".::t'" t
h tne product or seNice rendered bv the
firm. Meterial ffow
Inprt
w Outpd
@
ry
Inpul
' OrlFul
@ 1
ry ry+
ry
@ @
Job Shop (lntermitt€nt) Model
ENGINEERING IVIANAG€MENT
r23
ln)ut
w
tt*..,="{\
i''. --\.r.-".-----------
-'\'------'1:-' \\
\
-h---
&
Projects Type Model
CAPACITY PI.ANNING
product and service

choices, oroces! <Fto.r;^h
rayout are amons th.
"'o,t
u",i. a"'.ilil::;:::;::*":',T:'[ *:J:: il"r.:iffir,TJn[i:#
conseqsences for the organization.
They are at the core of productjon
management.
Cdpdctty plonntnE en@mpasses
many basic decisions with long_term consequences
organization. Capacity issues are for the
important for all oiganizations and
capodty referc to an upper ri.nit or at all levels of an organjzatjon.
ceiring on the load rhat an openting
an ope-ting unlt is an important piece unit can handre. The capacity of
of inrormation io,. pr"nning purposes: it enabres
quantify production epabirity managers to
in terms of inputs or outputs, and thJreby.make
related to those qudntities. other decisions or prans
. DEFINING AND MEASURIT{G

CAPACTY
No single measure of caoacitu wi h" .^^,^-.r-.^ ,-

-
capacrty musr be tairored,",r"-,n'jy"I1l,::":i"|:Tfif
capacity' Arthough it is functionar, ;;'.il;:tJ;iilrr:tff1,:Fffiil: :;
it can ue refined into twr ,i"iul a"inrtion,
ol.upu"itv.
#i
']?
5 Design Capacity _ the maximum odtput
that can possibly be attained.
\v
f,,.i.
c Effectfue Cepacity-.the maxirnum possibje
outpur gryen a product mix, scheduJing
difflculties, machine_inaintenance, qu!lity
factors, shortag" of m"teri"ls, as well
factoG that are outside the control as other
of the opera on ,"^.U"o
capacitv are usetur in definins two measures of system

"n"*r.]lil""no,l[",iil:"1ff::;""
Effciency- Actudl outquc
= Effccttve capacity lltilization _ Actltar output
Desigftcapacly
t24
Eecause effective *o*,,1-"--1: a lid
on adual ouror,s, ,n. real key to improving
utilization is to increase effective :, corr""r,
capacity by
capacjty
operating condition, tullv training O*,,iu o.OLrr, rnr,n,u,n,n, uouipment in good
utilization depends on being
emplov.er, .na iulti rtiiir;;;;;;".- equipment. Hence; increasing
abre to in*ease .tiui op."it'v, .niin,, ,..qrir",
con stra In ing effective capacity. "n knowredge of what is
DETERMINANTS OF EFFECTIVE
CAPAC Y
Many decisions about system.design

have an impact cn capacity. The
operating decisions. The ,tain same is uiue for many
factors retate to the following. l
. Deslgn
. . Quantjty
.
Location r producvservice
mix . capabilitias
Layout
c Environment
o Quality
capabitities
a Job content .
. Job design Scheduling o Product standards
o Training and experience . Materials management r Safety regulations
. Qoality assurance . Unions
. Motivation .
. Compensation Malntenance policies . Pollutlon contol
. Lea ming rates . Equipment breakdowns standards
. Absenteeism and l;bor
turnover
EVAI.UATING CAPACTry ATTER

NATIVEs
A number of techniques are useful f6t .w,n,î^-

---^--..
;L,r:::il#"-:*:"iifFffi :::11fi :':11".lili"r;T:1"',1il,Tffi j.'"l,;l"Tffi
:
cost Volume Analysis
Cost-volume analysis is a tool

that summarjzes the various levels
associated with various revers of production. of profit or loss
rts purpose is to ti,"
orgadization under different inaor" or
"rti-r"t"
operating condiflons. rt is particurariy "n
comparing capacity alternatives. usefur as a toor for
The assumptions of cost-volume

analysis ale;
. One product is involved.

LZ)
. The variable cost peruntt is
the same regardless of the voltrme.
.
. Fixed costs do not char
rhe unitserinsr,-" i,lt'.:fl:".:Tff1,"Jfi"r,n*,
The required volume,
e needed to generate a specified profit
is:
The volume, CLrp/ where

revenue is equal to totalcost
is defined to be:
iSe*"rpl"
e.r
A small firm intends to il
machine. rwo artematives,
A ;;r'T: #'iHr;.Ji;: :"r.f:""*::[:?:J :::T"ilJ
lffi:.;,Tffifijf ;:iffi .",ts. be rnoot bof
wourd .,,.d,ne
be Plo for A and Php12 tur'B;
A and php3o,oDo rdr
' woutd phpls fora
be ana p1,pts iorlluld
and sari"g edie;.ii
a. Determine each aiternative,s
break-even point n Units.
b. At what volume of outputvould
c. lf expected annual
be.th. ;;;;;;, yietd the same profit?
deInaInd annual demand is
higherprofit? . t2,ooo unib, which altemative would yleld
ENGINEERING MAMGEMENI
!zo
I rinancial analysts
A problem that is universalry

encountered by managers is how
A common approach is to use
tc a]|o."te scarce funds_
finan(
cdsh now rerers to the.,il;:"ilT1';:',Ji;.:"".:ilJl'JT:"il and other
sources and the cash outflow
for labor, materja19, ove*tead and
taxes.
Presen! volue expresses in current value the sum of
investment proposai, futu.e c"rir flows of an
"tf
Ihe following formulas must be cons,dered:
F=P(L+i)n p=F(1 +d)-r

r='e [ffi F=rftt?=]
Example 8.2
| .".r*];:niffil,;llll[ff,::l'::: ":erations,
the manabeftrent ora corporate rarm
has
;:11#il;i:ffi
rrom now' Php180,0oo would
,:lf ",,..*ffi'":fi iifi::riljj.;l#]t*,"ffi :i#
have to be spent for an aaoition
the storage capacity to the level to iie ouilding in order to increase
th *o''o o" tuquired fofthe
cosrs and property taxes "t next ten years' Anriualmaintenance
*or,o php24,OOO
thereafter. ,O" , .",,, i".
during the fint 15 years and php42,OOO
.."r* taverage
::ol*.'rsv".^su.r,lu,i;"il'ili5::i1flffi ,,i;J1",:":J;."ii,J:,lr"*::1i1;{
property tax€s wourd
average php30,oo0. rtis rikery
now and with no salvage value. i"r *0,"a.".onomical,
that ei ** be razed 25 years from
Which of the two pt.n, i, *ol"
corpordtion's cost of money given that the
is 3o% per year. use present
worth (pW) method in your analvsis.
!27
'ther"'pr"e.r
#;xampte 8.3
A manufacturer of equipment
is e'raruating a proposa/ that
dternative methods are avatabre he produce a new product. Two
for the production oi the n"r. i,r"."'"*
o" oescribed, in part, as
phps',oooa
veaf rorthe rastsixvears
uniform php65,ooo per
orn'in".t"ii.,i.""ifiriffiJftTiff:fiTJ"ifir"J:
vear throurhout its rne. rne compahv;
*" product bJmanufacturec?
;;; rate of return requrrement
:'":ilrt*"" "ew rf so, by wiricrr metr,oal use pw method in your
a
,,F}
G,
ff>-Exzmple8,4
suppos€ that the estim;tes given
in the previo,Js problem rematn
is further estimated that if method unchanted. However, lt
R ls serected, it rirr.o"
a method which will have
,u".""0"a lt the end or its royear rife by
a first cost of phplso,ooo,
ang pipZO,OoOl",""Ce value,
revenues of php9o,O00
and uniforn uniform annual
disbursem€nts of Phpso,ooo'
will have on your de.,r,on. Det€rmine the effect
,ru ot llllual
nethod in your ana,ysis.
thls
4
LZ6
DETERMINANTS OF FACTORS OF PRODUCTION

REQUIREMENTS
Demand, after it has been

transrated into productjon qudntity cecisions; is used to
determine the
factors-of-production requirements. Factors
of production rncJude raw materiars, machines and
equipment and their accessories, direct a d indirect
,abo, energy and urtimatery finances needed to
make them avallable. -
Adjustments and atowances are made for defects

or wastage, for derays, and for labor efficiency
considerations.
ADJUSTMENTS FOR DEFECTIVE OUTPUT
Goods or servlces can be considered defective

if it faiis to nreet established specifications. There
are two types of defective output; (t)
those ttrat c"n be reworkeJ to eliminat€ the deficienry
that the deficiency cannot be eliminated of (2) those
Fairly good estimates car be made of the proportion

of total output which will have to be
scrapped' lt is possible to calcurate what
additionar factors of production wiri be necessary because
scrap. of
TOtal SChedUled OUtDUt

. _ Required num ber of good or un irs
100% _percen tage of total scrappe d
ADJUSTMENTS FOR EFFICIENCY
The purpose of production pranning is to

determine what wiri scuarJy be required in the future
rather than what wourd be required under
some hypotheticar set of conditions,. For that reason,
the fact
that some ofthe organization's output will
be defective is taken i;to account when determining factor-of-
production requirements. simirarly, consideration
is given to ihe actuar tinre whhh wil be required
perform an operation. to
The actuar time refrects the efficiency at which

an operator works and arso takes into account
that time will be spent on such necessary personal
activities. However, jt happens that very often, the
time that is made avallable to production planner.is
the standard tiil1e. stonddd t/me is like the actual
time but it mntains an arowance for the occurrence
of necessary personar activities .nd unavoidabre
delays, but it is based on the assumption that
opera tors wi| work at 700"/o efficieno/.specr.ficary,
relationship the
amongthese three factors can be described as:
ActualTime _ standard Ttme

Efftciency
ENG INEERI NG I.{A}IAGA.!3,I"r

t29
This formula k being used in determining the nurnber
. perform an operation. of operators and macrlirps needed E
Erample 8,5
A fumiture manufacturer is soihs fn hr d,,.a - -^4
states,that *," ,t"n,i"J ti,.r;;ir,.:ffi:rji,,#:;;HlJT;:;i,;::,.t[":""fi:?:,fil
past' the average efiiciency
of the operators assigned to this
work has been r.r.5%. rf the totar output
during some future one-week period
is to be 410 cabinet., a"t"-in"irr"
pianers needed for this nrmber of operators and
operation. l"rr" tr,* o!J-t"'r or.i*r,.. to work 40 hours per
week and that each planer ls "..tr
scheduled to be operated
6 two;;r;;;*.
j&
IFE ampn 8.s
A proposed productioo schedure-stipuiates
that 625 good units of a specific part
manufactured each day' The are ,o be
,oute sheet for that part inaicatels
power hacksaw and the tnaione.cif the operation cars for.a
standard tif t"t tne operation
' carcurate.the nrrno"|' o,
is 0'072 hou r per unit.
"r,,,"
operdte",,'ui,,rr
i
"
9 hours per day.
; ;r:,.r" *;;::T yi"ri1Tfi"Jff ',:fiTT:,lJ; :;iil: 1:
nr,nu
eNetNgentNs N4nNAeeMeNr
.
130
'CHEDUIING
scheduring pertains to estabrjshing
the timing of the use of equipment,
facirities and human
."ri"i:liHJ:T";',:'J:, ';J:'
decision'nraking hie-rarcir, ,"i"o","r
o".,sions are the il ,;;;;
iil* ",:,J"li'"",:T# ;ift ;ÎilJ,T:;::Jn'::;.:lTT ,x: ilil:
il,",;:"Jl*ff
fil*Ii1i*:T#]1t#;fi Till:i:i:il:",l'iffi ::Ti"*n****im1: ."r,
conrictingsoarsand;;;:;,;;:T":;i::.";fT::il::.""",l":J:,T"ff:::,"r,i::," ,."",
TOADING
or iobs to processins (,rr'ork) centers.

,r*'o..illitit-iil"::^:,tl:"'r1-"tent rt invoives assisnins
manasersoft enseek.""nr"'"",",,L''l",1in::H;J,Hill'l!i];r*l'l,l-1'Iil:'iJl:il:
among work centen, orminimize.job
compietion time, depenainc;n iie ritu"tion.
Assignment Model (Hungarian

Method)
Assignment model is a speciafpurpose

rinear programming model that is usefur
call for assigding tasks orotherwork in situations that
requirements to resources ::_',
-",,,--**.^-.^-:,.__^-' Typical examples include assigning jobs
ro machines or workers/ teritorie
dea s to obtain an *;,,"; ;;:;ff;:;',.":l':tri.Ji:::T::;Tffi.i:::r:i:::Jn:,ffIi:l:
profitt efficiency, and performance.
Method is a method used of assigning jobs

'ungorion Each job, by a one.for-one matchin' to identify
lowest-cost'solution. the
for exarnpte, must be assigned to only
-that one machine. lt is also assumed thai
'every machine is capabre of handiing every
assignment combination afe known
ioo, ana ,t" lou, o,. varues associated with each
and fixed lnot subject to variation).
Baslc procedgre for the Hungarian

Method
1.. Row reductlon _ subtract

the smallest number in each row from
every number in the row.
Enterthe fesultsin a new tableau.
2 Corumn reduction - subtract the smarest number

in each corumn of the new tabreau from
every number ln the column. Enterthe
results in a new ableau.
3' Test whether an optimum assignment can be

made. Do thrs by determining the minimum
number of rines needed to cover (cross-out)
art zeros. tf the number of rines is equar
number of rows or columnq an vPU'r'u'rr to the
optimum assignment
dssrtnmenT
6' otherwise, go to s t"o" "" has been attained' ln that case' go to step
nas
4,
4. lf the number of lines is less than
the number of rows, rnodify the tableau
in this wavi
131
a. subtract the smallest uncovered
number from every uncovereo
number in th€ table.
*" smallest uncovered number
to the numbers at the intersections
,l;l* of covering
c. Numbers crossed out

but not at interseqtions of cross_out
lirles carn/ over unchanged
to the next tableau.
r. xepeat steps 3 and 4 until an optimal
tableau is obtained.
6 Make the assilnments. Begin
with rows or ..tt, ih^. ,-rrr. *rv
-_r- one zero. Match items
:eros, usins oDry on" ,","h
;;;";'j;::""j::':fl:'#l that have
TNGINEERTNG MANA6EMENT
"hs,"mprs.e
lhe followlnS.table conteins. inbmaflon
machlnes. Determlne an asslgnment
on th€ ost to run three jobs on four avalhble
plan that Wll
mintmhe costJ.
Mrdrtnc
z A I D
@
o
12 16 t4 t0
2 9 8 13 7
I
3 I5 9 .l.r-
l:_
ENGINEERING MA'VAGEMENT
to raradt
;1ru,I"T.11i1'r"'"?tfi::":,""J-.lllr costing php s,il,6oo ;ik" wourd provide br a, needs

years-and php 3soo;;;;th'r";;l"l^tlcosts are estimated to be php 2o0o a .n*r,iil.1r,.'rarr,
,i
php 6,soo,oob
whic;ffijH:#?.,.":ond 15 vea''. Plan 8 k to buiti a paniat ctoverteaf at a cost of
,"""fi ffTJil"",,Ifl:,'*'j#:T lifi l":'"#,!',J'T,i::|;."10 " "
v*;';il;;.;;
which or theiwo pra;:;J*'il ;::l;:ff ;*frm:m;J*
"r+I,],[;ij#"*tr;
ENGINEERING MANA6EMENi
134
I i.._
ENGINEE'RING'I4TNAGEMENT
155
CHAPTER 9
PINOY MANAGEMENT
is very littre rear dirrerence

,"*r"il"ii"r,j"l";r:.:'.T:";n"t" be.tween entrepreneurship and
Because pinoy,..;r",;;'; J:;l::'.i.JH::*t:,,f;?:Hi,";,ffJfi:T""::;.J::l*i
organization and the impact of the informar
or'anization ,n" o",u',,,n". rt
is street smads and brdwns
in the Pinov Peopre "1
::1ili"jfi"tl'i:'::"I'fi:ti:' 'o*u'
*"uoli"n' rhat rheans a iot or drive and
o.r.*rnc,a oih.,il;;## lT#i::: ;H:'ff"?::;,ffff:*ffi .""', _*,"u in"
',,
PINOY MANAGEMENT STYUS

#r
\t/
I MANAGEMENT
- 8Y
- I(AyoD (REALIST MANAGER)
(Ans susto n'v" aksvon
.;:'::[J,:::action "s"0,;
. He is a sigutista .
. He knows first things fjrst

{Marunong)
. He has gut f€eljngs (oido)
. He Soes all the way
. He knows how to
use people and resources
. He cuts problems down
to a manageable size
. He is pratica,
. He decides immediatelv
He is impatient {aFurado)
. He is tuso
@
u uaNaernaglrt _
- By
. He is a thinker (palaisip)
uBRo (tDEAusr MANAcERI
. He is a technocrat
. He is meticulous (mabusisi)
. He loves the drdwing board (Mahilig
so dIawingdrawing)
. He is systemafid
. he strivas for prof€ssional performance
. He attacks the total problem,
not just the parts
. Think first before decidint
(tsip muna bago aeciael
. He is stubbom (matig;s
ang ulo)
. His ideals are high (mataas
ang pana8inip)
. He is known for quality
I
':-
sotuethepmbbmTliffi
ffient-
ENGINEERINC IT4AMGEMENT
€t
e UGNAYAN MANAGEMENT (RECoNcttER
MANAGERI
. He has balance
. Contingency management style
. He is solid
. He chooses weil
. He has 3 eves
. He is very exceptional
MANAGEMENT
-
. He is willy-nilly -
By rqsoT (OPPORTUN|ST MAIT|AGEn)
.
. He has no mnscience (wahng
ronsensiya)
. He loves to get by (Mahilig sa
lusot)
. He ls inclined to easy settlements (Mahiiig
sa ayusan)
. He avoids headadtes (ayaw
ng.sakit ng uto)
. No money, no work (Kung walang
atik, walang oerformalcel
VARIATIONS OF OPPORTUNTST
MANAG!R
@
I, MANAGEMEIT BY PAKMMDAMAN
means manating according to what
one feeis is the desire of the higher-ups
oi those in authority.
He follows e*ctu what the hlgher_ups
want him to do; no mo.", no f".r.
Characterhtics:
. Hinaylrlnay lang; pakiramdam muna bagd
decide
. Listen, then act, then listens agarn
. Do not comnit
. Do not decide
. Do not act
.saan ba ang hangin? Doon toyot
MANAGEMET.IT BY TAKUTAN
- means achieving results by threatening
or by inflicting fear. ltris kind of reader sees to
subordlnates fear him; his fellow officiats it that his
fear him; tha-t everybody tears trim.
Characterlsths:
. Sindak style
. Palakihan ng mata
. Mga kilay nl MaxAlvarado
. Bosel niBen David
. Slmangot etemally
. Uses sermoni!in& sabonizin& and tangalizing
€NGINEERING MANAGEMENT
J
87
@
I RTBEON.CUIT'NG MA'{AGEMENT
- Management style used to obtaln publiclty
and hlgh vlslbllity for their projects
themselye, to show elleged speed in plannlng and for
anO iiitementation, thereby daiming action
tifestytesi and to took pteasing
Charuct€rh cs:
and guwbe" t" ;" ;;;-;;;b..
o Full
of schoolboy enthusiasm and
the razle-dazzle of a ,project completed,,
o Mahilig sa bongga
o Mahilig sa flming
. May connection sa press.
Mageling sa pubticity
. Magaling sa mobilization
. Mabilit sa positioning
.A
Yrrr, ,ou* r*oorrn,
- practiced by most manageB
- practiced to suit a Filipino
as last minute ,adhoc_cary... Thls
manag€ment styles is
tendency to ref"" not guther steam when deadlines
"Jii* are
Cha rocbrlgtlcs:
. Relaks lang muna. Hinay_Hlnay
lang. Malaya pa
iyonl
. saka no ,yon attitude.
Mayanw pa ring Oi"iingl-
I Nayeng-kaya yan pagda
. . Inabillty to implement
ng ng panahonl
acoording to originalplan.
. Weak monltoring and evatuation
.Lackofenthusia3mfordai|ygrindandforre8u|arsustainingofproject
6I PATEAMEA.I#}MDA M'IIUA]EEMTNT
;.ff:ff1-"ne8ementwhereinonewolkswithoutrnyd|rectionno.procedur€.
.. He uses the kapa.kapa system
. Hls favorlte song is nVhere
do I begln?,,
. He ls bxpert ln tagpl-tagpt
solu on
. He has a sige-sige attftude
WEAPOI}*FOi 7l| E MAi}ACER
*4
.'fi KI -*trotlt,MAy,I,to.z
A manager mult have a real confidant.
.<<i.i,,+ his own eves and
tnrF assistant'
a true
has a number z- h'r;;ril;;;;1"^t' ears' €very'manaser
his secretary or even the drlver'
or may not have tit,"., ou, They may
ro, on ,.lllisometimes
ENCINEERING MANAGEMENT
15d
GMpEvtNE MACHTNE (TstsMts

MACHtNEt
Good managers have a gossip
mechanlsrn within the company,
are, They use them to spread T.tey know who the tarkative
one
unofficial taik
planned to "r,a*r, ,i
eps or actions still being
8et an unofficialfeed back ", "ôf""r*,
.#
'*fi rarLcr,Jcar [4Ay HATcHET MAN
The hatchet man is your
assistant who is.like a verdugo. ,killer type
He ls a who fires people,
out employees, repiimands supen.isors,
i-.."j11^llr,.O.rO
rntnguers. However, the ,"na..iougt memos, confronts
use of hiatdlet man should
be.a last resort: onty when jll other
resources do notwork.
*'s gEer
"r#'P
ExpgRr on rtnarre
,: critical in many business transactions
l::: "."
lecture about. tt/s not in the
or projects, And yet it is hard to
define or
booksl
AVOTD tosEns
You might encounter people
who constantly don,t make it,
you mitht be like theml no matter whet he doesl Avoid
them,
64
** ruaxr n pensoruer.
Filipinos are very personalistic
u,....
thFir ways;
in their 6 them' loyalty' commitment, camaraderi€
more imponant, ratt,"rrt .n l!. are
ou'.,u,t.,n i,.J'.nJ il;;J:,:::[:i:[,:::ffiT"'#:,1"il""ffi ,i:ffi ffi
ll'il#;
{.#
," d' NBA STYIE: ONE.ON-ONE
' Use go-between or intermediiries
h"';;.;;;";;ffi":ffi:J#.:J[:fi
to ree.h.rh^.- ..-* in touctiwith orare givingyou
_^,,
a
d powe n pLCyt tABaNt

fhis ls an extrime situation when
the enemy, the other
power puts the squeeze lroup, anothei cornpany, or someone in
on vou ancr-you have no o*'".
i""orrr"'iii-io tigirt uack. you marshal
O.r,, test the enemy, flanks stowty, ,*
IllllT:
nappens when an organization
,n."
"",.r*, ,n. nrn, ,,ru. ,n,, oO"n
is fitted witt intrigues, gossife;
"nl'rur"_rn.nu"o.
139
NEVERSAY NEVERI
Leave the dosr open for reconciliation.
for cheô- .^- r___-..-
situationsch;;s;;;;;;".il#.jil;j]::;:,"r?|;:fiffT.ln,?rmakinsamendments
BE SITUATIONAI AND COIiITI

IIIG EAIT
;";;;;;"ment probrems is "Depender,,rhere
::::1.1Yn"
Inere are times you must be systematiq is no singre rormura.
or pe*onalistic, o,' Ouan r"OUa,
oa,nrrn,u.,
.t-+
* -l84 cHoosE youR
GRouNDs
a hostile environment where
vou don't have resources or support, choose your
3]|;:j::il
No HASSIE RULE
Good managerc try to simplify
Sometimes, they are not cbncemed
yals: They seek the direct, shortest route
to a problam.
with the process, the
why.
mein"O,;rrn" .*" Out the what and
*fr
#s tr'you caNT HACK rr, Go AwAyl
8e sute you can hindle the
outcome ofany action you made
because man is revengefull
ron rru tAzy on rre inaenr.accx

People who arc letharglc and
slow.tend to justin/ theh turtle pace
rationalizing. Oon,t with philosophizing .and
engage them in endless debate.
lrs DtFFtcuLT To HAvE AN ABSENTEE

owNER
Oon't be an absent€e landlord lf you
want to into business; or else, the employees
put one over him, or the
customers will run circles around '"- wittg,not off,
ti" ,,"f1.
*+
4' LEr xtrr4 HaNG HtMsEtF
There are organizational.members ,
u
il Jj"y*11;lli_y i:l+il: : ;T$,*ff ","?,::::"":r#,1i.:I[il:,iTil

cannot convince them to abandon
,r"_&;;;";;"
the idea or project let
"#H:
ENCINEERING MANAGEMENT
I :.
lili - ,'.
740
themselves, problems will emerge

to t|ap them and pemap6 it may tum out
lessons for everyone. to be valuable
4'* F Acr t reLltc€Itrty. pRm D To lHft{K AtwAys l

Inere are managers who smoke the pipe,
alr^/ays wear the business suit, and
impression that he is very cool, always give the
calculatin& and precise ,r"rr"r. ,r,
way of creative ideas, l" has nothing to offer by
energetic readership, or resources
mooillation.
EI\rEnwHtLEnsHoT
Be alert to hot products, to new
fads a-nd consumer interests,
powers-that-be. At those to the happy moods of the boss or
moments, seize the opportunity
and dde with the trends.
FlP
'fs vou ravr ro BE sifiAntrs root
you have to
have an arca of expertise, a specielkation,
something entirely yours, gained through
expdiience, exposure, academic
trdinlng, travets, famiJy tradition,
or association.
rP
*.fi
Ti
DOI'IT OO EVERYTHhIG AIONEI

oelesate Trust subordrnites' Serect
the penon.Spe, out the.fesults
expeded of him and give him authority. vou want, tett him what is
Support him.
THIT{X CH INESE
Think.like the Chinamanl They
do not spend more than what they earn.
They are street smarts.
Th€y know the business wer, a, the
important facts, a, the .onnu"ttons,
discounts and suppliers. alr the right
"ff""tine
THII{X JAPAI{EsE
The Japanese establlsh a network of communicsion and consultations at every tine
cornpany, They toudt base with df the
every important person or unlt lnvolved. They
'consensut agree, unite, and afe flric€V consul! draw
iompetltlve.
.e+
'ts rouow.up
This is a kcy to management success,
lt helps to get a n(mber 2, who is metit'lous
fingers into every pie. and g.ets his
ENGINEERING MANA€EMENI
a:, 1.?
L
4'" ANOISANOI
Management is also theabllltv
lllty to c.v hat' ..^^
say h,t+ -^ enoughl
stop' no, -
saying "No" often brings mariy
term good results. iong-
.J}J
'.9-" DEAOUNE Cot{sctousl
. Be aware of deadlinesl
Leam now to set deadlines!
Think llke a clocki .
.*a
-'
".-'. YOU'RE?}tE OtU !fi UTYOU'RE OTI}IE BESTI
OwneBhip does not mean
sup€rior,rna;ag€menfl oft€ntimes,
buslness. the owner is a nuisance tnlthl
BODY I.ANGTIAGE I5 TMPIonTAIIITI

Managers. have to operate in the
of their employees. rt is said that .body
language ornonverb"t---,,",.,;,^l1l.t::j
raoSuase ornonverbal
communicailon is S5% :Ti::
effective.
.

Engineering Management Manual

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Engineering Management Manual

Hochgeladen von

Copyright:

Verfügbare Formate

MANAGEMENT

R.E. CONSTRUCTION: l7S NOW or NEVER

At the third year of operations, Engr. Estabillo was already directing.operations in

OR6AN IZATION & MANAGEMENT

The 2L* century is here. ln the new

of success; p"rron"r .nd org-inizationar, .,;:;

An orgdnization isa collection ofpeople

From the given illustration, an organization

'It has distinct purpose

And a structure that may be open and frexible

Aithough the above three characteristics

whv are or'ani'ations changing?

Table 1.1 - ChanginC Ortani."tlo"

Essentiall, the role o,

and to disco urase ind ivr.d ua t a;,,r,* ;;';#.:;:::H,j,:;

/ ManegetlF]l Effectiv€nesr refers to management use

/ ManaFrial Efficiensl is the degree to which

As reflected in tigure, efficiency is

Various combinationie of Managgrial

WHo ARE MAr{AGERs?

It used to be fairly simple

coordinates and oversees

qu!tity inspector leader, equiBment

i,," r^Jil 1t""i;"1i,, jr?'"'::T ::rs

- orsanization-wide decisions and

:*:l* j{[#;,:,:,.#,LT,""j,,ffillTl, :ffi ;"'n J::HLiil i "#::,1

WHATDo MANAGERs Do?

oescribing what managers do isn't

Tne management process involves the

Planning - defining 80ars, estEblishing strdtegy

. In reality, what managers do may

rhe term manoEement fore refersto

+ Interp€rsonal roles - invoh

* j::.:,^":,"j^r::s - enta,ir making decisions or choices;

sy.bori. h""E-iE@Fie-#? Greeting visitors; signlii

Responsible for the motivation of Perforining uinua y-

Maintains sun auv"tof,- nutwo*

tr:n:Tit inforrnation - .ecO-v"?-To-il

Entrepren€ut s-.'.h.' o rg. nEliiiffi i"iiiillii

(espoDsrbte fo, corrective-liiEi-t6fi

A managet/s iob is varied and

'{ Technicat skit

Other managerial ski/ls were t.tFnrifi..t i^

. llllly . ,.u rnro_Jiiii-iiiitilTilfiii . contriburrng to iorpo-rati-iGili

In today's demanding and dynamic workplace, employees

HowTHE MaNAGER,S JoB ts cHANGtNG?

Nlanagers have always had to dealwith changes

organizations today ciperates in a world of

Managers are no /onger

ETHTcs AxD Soq.^r REsporstBtLry

lncreaslngly, We nodce th| r6^6t, aspects of everydav

'"n*0",t"*il*io::1'Tt*i: cunentlv facing managers rs

' Many organlzations

tf. new century brings it with

in job-reraied and they expect

. In a worid whefe change

Ih; typicai cdreer of the

The Reallty of Work

Another reason for studying management

Reward and Challenges of Belng

v Keep up wlth cun ent business news,

4. Inner Work Standardt the ability

8r Serf-objectivity: the abirity

::l j{[#;,:,:,.#,LT,""j,,ffillTl, :ffi ;"'n J::HLiil i "#::,1

'"n0",t"ilio::1'Tti: cunentlv facing managers rs

,".H;:H;:"j ,Tj,?:* : usuarv descr;bed os besinnins *iti,