Chapter 1

FIELD OF ENGINEERING MANAGEMENT

Engineers are expected to perform, a variety of tasks depending on their specialization and
job level. It is important to the engineer that he knows what is expected of him so that he may be
able to perform his job effectively and efficiently. His next concern will be to identify the skills
required but which he does not have. As engineers are not trained to directly deal with people, it is
expected that their weakness will most often be on people-based skills. This difficulty will be more
apparent once they are assigned to occupy management positions. It follows that if engineer
manager would want to do his job well, some exposure to engineering management activities
becomes necessary.
A business develops in course of time with complexities. With increasing complexities
managing the business has become a difficult task. The need of existence of management has
increased tremendously. Management is essential not only for business concerns but also for banks,
schools, colleges, hospitals, hotels, religious bodies, charitable trusts etc. Every business unit has
some objectives of its own. These objectives can be achieved with the coordinated efforts of several
personnel. The work of a number of persons are properly co-ordinated to achieve the objectives
through the process of management is not a matter of pressing a button, pulling a lever, issuing
orders, scanning profit and loss statements, promulgating rules and regulations. Rather it is the
power to determine what shall happen to the personalities and happiness of entire people, the
power to shape the destiny of a nation and of all the nations which make up the world." Peter F.
Drucker has stated in his famous book "The Practice of Management" that, "the emergence of
management as an essential, a distinct and leading social institution is a pivotal event in social
history. Rarely in human history has a new institution proved indispensable so quickly and even less
often as a new institution arrived with so little opposition, so little disturbance and so little
controversy?"
Management is a vital aspect of the economic life of man, which is an organised group
activity. It is considered as the indispensable institution in the modern social organization marked by
scientific thought and technological innovations. One or the other form of management is essential
wherever human efforts are to be undertaken collectively to satisfy wants through some productive
activity, occupation or profession. It is management that regulates man's productive activities
through coordinated use of material resources. Without the leadership provided by management,
the resources of production remain resources and never become production.
Management is the integrating force in all organized activity. Whenever two or more people
work together to attain a common objective, they have to coordinate their activities. They also have
to organize and utilize their resources in such a way as to optimize the results. Not only in business
enterprises where costs and revenues can be ascertained accurately and objectively but also in
service organizations such as government, hospitals, schools, clubs, etc., scarce resources including
men, machines, materials and money have to be integrated in a productive relationship, and utilized
efficiently towards the achievement of their gals. Thus, management is not unique to business
organizations but common to all kinds of social organizations.
Management has achieved an enviable importance in recent times. We are all intimately
associated with many kinds of organizations, the most omnipresent being the government, the
school and the hospital. In fact, more and more of major social tasks are being organized on an
institution basis. Medical care, education, recreation, irrigation, lighting, sanitation, etc., which
typically used to be the concern of the individual or the family, are now the domain of large
organizations. Although, organizations other than business do not speak of management, they all
need management. It is the specific organ of all kinds of organizations since they all need to utilize
their limited resources most efficiently and effectively for the achievement of their goals. It is the
most vital forces in the successful performance of all kinds of organized social activities.
Importance of management for the development of underdeveloped economies has been
recognized during the last one and a half decade. There is a significant gap between the
management effectiveness in developed and underdeveloped countries. It is rightly held that
development is the function not only of capital, physical and material resources, but also of their
optimum utilization. Effective management can produce not only more outputs of goods and
services with given resources, but also expand them through better use of science and technology. A
higher rate of economic growth can be attained in our country through more efficient and effective
management of our business and other social organizations, even with existing physical and financial
resources. That is why it is now being increasingly recognized that underdeveloped countries are
indeed somewhat inadequately managed countries.
The emergence of management in modern times may be regarded as a significant
development as the advancement of modern technology. It has made possible organization of
economic activity in giant organizations like the Steel Authority of India and the Life Insurance
Corporation of India. It is largely through the achievements of modern management that western
countries have reached the stage of mass consumption societies, and it is largely through more
effective management of our economic and social institutions that we can improve the quality of life
of our people. It is the achievements of business management that hold the hope for the huge
masses in the third world countries that they can banish poverty and achieve for themselves decent
standards of living.

THE FUNCTIONS OF THE ENGINEER

Even as engineers are currently producing solutions to many of the difficulties faced by mankind,
much is still expected of them. Their outputs, new or improvements of old ones are very much
needed in the following specific problem concerns:
1. the production of more food for a fast growing world population;
2. the elimination of air and water pollution
3. solid waste disposal and materials recycling;
4. the reduction of noise in various forms;
5. supplying the increasing demand for energy;
6. supplying the increasing demand for mobility;
7. preventing and solving crimes; and
8. meeting the increasing demand for communication facilities.
Specifically, the functions of engineering encompass the following areas:
1. Research – where the engineer is engaged in the process of learning about nature and codifying
this knowledge into usable theories.
2. Design and development – where the engineer undertakes the activity of turning a product
concept to a finished physical items. Design for manufacturability and value engineering teams (a
feature of some companies) are charged with improvement of designs and specifications at the
research, development, design, and production stages of product development.
3. Testing – where the engineer works in a unit where new products or parts are tested for
workability.
4. Manufacturing – where the engineer is directly in charge of production personnel or assumes
responsibility for the product.
5. Construction – this is where the construction engineer (civil engineer usually) is directly in charge
of the construction personnel or may have responsibility for the quality of the construction process.
6. Sales -0 where the engineer assists the company’s customers to meet their needs, especially those
that require technical expertise.
7. Consulting – where the engineer works as consultant of any individual or organization requiring
his services.
8. Government – where the engineer may find employment in the government performing any of
the various tasks in regulating, monitoring, and controlling the activities of various institutions,
public or private.
9. Teaching – where the engineer gets employment in a school and is assigned as a teacher of
engineering courses. Some of them become deans, vice presidents, and presidents.
10. Management – where the engineer is assigned to manage groups of people performing specific
tasks.
THE ENGINEER IN VARIOUS TYPES OF ORGANIZATION
From the viewpoint of the engineer, organizations may be classified according to the degree of
engineering jobs performed:
1. Level One – those with minimal engineering jobs like retailing firms.
2. Level Two – those with a moderate degree of engineering jobs like transportation companies
3. Level Three – those with a high degree of engineering jobs like construction firms.
Figure 1.1 Types of Organization and the Management Skills Required of Engineers

The Firm’s Quantity of Engineering Jobs

Management Skills Required at Various Levels

Among the types of organizations, the engineer will have a slim chance of becoming the general
manager or president of level one, unless of course, he owns the firm. The engineer manger may be
assigned to head a small engineering unit of the firm, but there will not be too many firms which will
have this unit.
In level two firms, the engineer may be assigned to head the engineering division. The need for
management skills will now be felt by the engineer manager.
Level three firms provide the biggest opportunity for an engineer to become the president or
general manager. In this case, the engineer manager cannot function effectively without adequate
management skills.

ENGINEERING MANAGEMENT DEFINED

Management may be defined as the “creative problem solving process of planning, organizing,
leading, and controlling an organization’s resources to achieve its mission and objectives.”
THE PROCESS OF MANAGEMENT
Management is a process consisting of planning, organizing, directing (or leading), and controlling.
Management must seek to find out the objectives of the organization, think of ways how to achieve
them, decide on the ways to be adapted and the material resources to be used, determine the
human requirements of the total job, assign specific tasks to specific persons, motivate them, and
provide means to make sure that the activities are in the right direction.
REQUIREMENTS FOR THE ENGINEER MANAGERS JOB
Depending on the type of products or services a firm produce, the engineer manager must have the
following qualifications:
1. a bachelor’s degree in engineering from a reputable school; In some cases, a master’s degree in
engineering or business management is required;
2. a few years’ experience in pure engineering job;
3. training in supervision;
4. special training in engineering management
HOW ONE MAY BECOME A SUCCESSFUL ENGINEER MANAGER
Successful engineer managers do not happen as a matter of chance, although luck is contributory
factor. It is very important for the engineer manager to know the various factors leading to
successful management.
Kreitner indicates at least three general preconditions for achieving lasting success as a manager.
1. ability
2. motivation to manage, and
3. opportunity
Ability
Managerial ability refers to the capacity of an engineer manager to achieve organizational objectives
effectively and efficiently. Effectiveness, according to Higgins, refers to a description of “whether
objectives are accomplished”, while efficiency is a description of the relative amount of resources
used in obtaining effectiveness.”
Motivation to manage
Many people have the desire to work and finish specific tasks assigned by superiors, but not many
are motivated to manage other people so that they may contribute to the realization of the
organization’s objectives.
John B. Miner, developed a psychometric instrument to measure objectively an individual’s
motivation to manage. The test is anchored to the following dimensions:
1. Favorable attitude toward those in positions of authority, such as superiors;
2. Desire to engage in games or sports competition with peers.
3. Desire to engage in occupational or work-related competition with peers.
4. Desire to assert oneself and take charge.
5. Desire to exercise power and authority over others.
6. Desire to behave in a distinctive way, which includes standing out from the crowd.
7. Sense of responsibility in carrying out the routine duties associated with managerial work.
Opportunity
Successful managers become possible only if those having the ability and motivation are given the
opportunity to manage. The opportunity for successful management has two requirements namely
obtaining a suitable managerial job, and finding a supportive climate once on the job.
CHARACTERISTICS OF MANAGEMENT
Management is a distinct activity having the following salient features:
1. Economic Resource: Management is one of the factors of production together with land, labour
and capital. As 10 industrialization increases, the need for managers also increases. Efficient
management is the most critical input in the success of any organized group activity as it is the force
which assembles and integrates other factors of production, namely, labour, capital and materials.
Inputs of labour, capital and materials do not by themselves ensure production, they require the
catalyst of management to produce goods and services required by the society. Thus, management
is an essential ingredient of an organization.
2. Goal Oriented: Management is a purposeful activity. It coordinates the efforts of workers to
achieve the goals of the organization. The success of management is measured by the extent to
which the organizational goals are achieved. It is imperative that the organizational goals must be
well-defined and properly understood by the management at various levels.
3. Distinct Process: Management is a distinct process consisting of such functions as planning,
organizing, staffing, directing and controlling. These functions are so interwoven that it is not
possible to lay down exactly the sequence of various functions or their relative significance.
4. Integrative Force: The essence of management is integration of human and other resources to
achieve the desired objectives. All these resources are made available to those who manage.
Managers apply knowledge, experience and management principles for getting the results from the
workers by the use of non-human resources. Managers also seek to harmonize the individuals' goals
with the organizational goals for the smooth working of the organization.
5. System of Authority: Management as a team of managers represents a system of authority, a
hierarchy of command and control. Managers at different levels possess varying degree of authority.
Generally, as we move down in the managerial hierarchy, the degree of authority gets gradually
reduced. Authority enables the managers to perform their functions effectively.
6. Multi-disciplinary Subject: Management has grown as a field of study (i.e. discipline) taking the
help of so many other disciplines such as engineering, anthropology, sociology and psychology.
Much of the management literature is the result of the association of these disciplines. For instance,
productivity orientation drew its inspiration from industrial engineering and human relations
orientation from psychology. Similarly, sociology and operations research have also contributed to
the development of management science.
7. Universal Application: Management is universal in character. The principles and techniques of
management are equally applicable in the fields of business, education, military, government and
hospital. Henri Fayol suggested that principles of management would apply more or less in every
situation. The principles are working guidelines which are flexible and capable of adaptation to every
organization where the efforts of human beings are to be coordinated.

Chapter 2
DECISION-MAKING
The primary tasked of the mangers of all kinds and types, including engineer manger, are to
provide leadership in order to attained the organization’s objectives. If he is to become effective, he
must learn the complication of decision-making. Many times, he will be confronted by situations
where he will have to choose from among the given options. Whatever his choice will have effects in
the operations of this organization.
The engineer manager’s decision-making will be very important to his success as a
professional. A major mishandle in decision-making may be enough to cause a destruction to the
organization. On the other hand, good decisions will provide the right environment for continuous
growth and success of any organized effort.

DECISION-MAKING AS A MANAGEMENT RESPONSIBILITY

Decisions must be made at various levels in the workplace and also made at various stages in
the management process. Decision-making is a responsibility of the engineer manager. It is
understandable for managers to make wrong decisions at times. The wise manager will correct them
as soon as they are identified, the bigger issue is the manager who cannot or do not want to make
decisions. Management must strive to choose a decision option as correctly as possible. Since they
have that power, they are responsible for whatever outcome their decisions bring. The higher the
management level is, the bigger and the more complicated decision-making becomes.
WHAT IS DECISION-MAKING?
The process of identifying and choosing alternative courses of action in a manner
appropriate to the demands of the situation is a decision-making. It indicates that the engineer
manager must adapt a certain procedure designed to determine the best option available to solve
certain problems.
Decisions are made at various management levels (top, middle, and lower level) and at
various management functions (planning, organizing, directing, and controlling). According to Nickels
and others, decision-making is the heart of all management functions.

THE DECISION-MAKING PROCESS

According to David H. Holt, rational decision-making is a process involving the following
steps:
1. Diagnose problem
If a manager wants to make an intelligent decision, his first move is to identify the
problem. If the manager fails in this aspect, it is almost impossible to succeed in the earlier
steps.
What is a Problem? A problem exists when there is a difference between an actual
situation and a desired situation.
2. Analyze environment
The environment where the organization is situated plays a very significant role in
the success or failure of such an organization. Therefore, it is very important that an analysis
of the environment be undertaken.
The objective of environmental analysis is the identification of hindrances, which
may be spelled out as either internal or external limitations. Example of internal limitations
are as follows:
a. Limited funds available for the purchase of equipment.
b. Limited training on the part of employees.
c. Design facilities.
Examples of external limitations are as follows:
a. Patents are controlled by other organizations.
b. A very limited market for the company’s products and services exists,
c. Strict enforcement of local zoning regulations.
When decisions are to be made, the internal and external limitations must be
considered. It may be costly, later on, to alter a decision because of a constraint that has not
been previously identified.
Components of the environment. The environment consists of two major concerns:
a. Internal – refers to organizational activities within a firm that surrounds
decision-making.
b. External – refers to variables that are outside the organization and not
typically within the short-run control of top management.
3. Articulate problem or opportunity
4. Develop viable alternatives
Oftentimes, problems, may be solved by any of the solutions offered.
The list of solutions prepare by the engineering manager shows the following
alternative courses of action:
a. Improve the capacity of the firm by hiring more workers and building
additional facilities;
b. Secure the services of subcontractors;
c. Buy the needed additional output from another firm;
d. Stop serving some of the company’s costumers; and
 e. Delay servicing some clients.
5. Evaluate alternatives.
After determining the viability of the alternatives and a revised list has been
made, an evaluation of the remaining alternatives is necessary. This is important
because the next step involves making a choice. Proper evaluation makes choosing
the right solution less difficult.
How the alternatives will be evaluated will depend on the nature of the
problem, the objectives of the firm, and the nature of alternatives presented.
6. Make a choice.
After alternatives have been evaluated, the decision-maker must now be
ready to make a choice. This is the point where he must be convinced that all the
previous steps were correctly undertaken.
Choice making refers to the process of selecting among alternatives
representing potential solutions to a problem.
To make the selection process easier, the alternatives can be ranked from
best to worst on the basis of some factors like benefit, cost, or risk.
7. Implement decision.
After a decision has been made, implementation follows. This is necessary,
or decision-making will be an exercise in futility.
Implementation refers to carrying out the decision so that the objectives
sought will be achieved. To make implementation effective, a plan must be hatched.
At this stage, the sources must be made available so that the decision may
be properly implemented. According to Aldag and Stearns, those who will be
involved in implementation must understand and accept the solution.
8. Evaluate and adapt decision results.
In implementing the decision, the results expected may or may not happen.
Therefore, it is important for the manager to use control and feedback mechanisms to
ensure results and to provide information for future decisions.
Feedback refers to the process which requires checking at each stage of the process
to assure that the alternatives generated, the criteria used in evaluation, and the solution
selected for implementation are in keeping with the goals and objectives originally specified.
Control refers to actions made to ensure that activities performed matched the
desired activities or goals, that have been set.

FUNCTIONS OF MANAGEMENT

Management entails four basic functions: planning, organizing, leading, and controlling resources
(land, labor, capital, and information) to efficiently reach a company's goals. Managers are the
employees responsible for performing these four functions in addition to a number of other duties
to coordinate the organization's work. These duties, or roles, fall into three main categories:

 Interpersonal roles. Managers perform ceremonial obligations; provide leadership to employees;

build a network of relationships with bosses, peers, and employees; and act as liaison to groups and
individuals both inside and outside the company (such as suppliers, competitors, government
agencies, consumers, special-interest groups, and interrelated work groups).

 Informational roles. Managers spend a fair amount of time gathering information by questioning
people both inside and outside the organization. They also distribute information to employees,
other managers, and outsiders.

 Decisional roles. Managers use the information they gather to encourage innovation, to resolve
unexpected problems that threaten organizational goals (such as reacting to an economic crisis), and
to decide how organizational resources will be used to meet planned objectives. They also negotiate
with many individuals and groups, including suppliers, employees, and unions. Being able to move
among these roles while performing the basic management functions is just one of the many skills
that managers must possess.

The Basic Functions of Management

Steve Case demonstrates that when managers possess the right combination of vision, skill,
experience, and determination, they can lead an organization to success. To do this, however, they
must perform the basic functions of management:

 Planning,

 Organizing,

 Staffing

Communication

Motivating

 Directing, and

 Controlling

THE PLANNING FUNCTION

It is the basic function of management. It deals with chalking out a future course of action & deciding
in advance the most appropriate course of actions for achievement of pre-determined goals. It
bridges the gap from where we are and where we want to be. A plan is a future course of actions. It
is an exercise in problem solving and decision making. Planning is determination of courses of action
to achieve desired goals. Thus, planning is a systematic thinking about ways and means for
accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of
human and non-human resources.
Planning is the primary management function, the one on which all others depend. Managers
engaged in planning develop strategies for success, establish goals and objectives for the
organization, and translate their strategies and goals into action plans. To develop long-term
strategies and goals, managers must be well informed on a number of key issues and topics that
could influence their decisions.

Understanding the Strategic Planning Process

Strategic plans outline the firm's long-range (two to five years) organizational goals and set a course
of action the firm will pursue to reach its goals. These long-term goals encompass eight major areas
of concern: market standing, innovation, human resources, financial resources, physical resources,
productivity, social responsibility, and financial performance. A good strategic plan answers:

 Where are we going?

 What is the environment?

 How do we get there?

To answer these questions and establish effective long-term goals, managers require extensive
amounts of information. For instance, managers must study

 Budgets,

 Production schedules,

 Industry and economic data,

 Customer preferences,

 Internal and external data,

 Competition and so on.

Managers use this information to set a firm's long-term course of direction during a process called
strategic planning.

Develop a Clear Vision - Most organizations are formed in order to realize a vision, a realistic,
credible, and attainable view of the future that grows out of and improves on the present.

 Henry Ford envisioned making affordable transportation available to every person.

 Fred Smith (founder of FedEx) envisioned making FedEx an information company (besides being a
transportation company).

 Bill Gates (chairman of Microsoft) envisioned empowering people through great software,
anytime, anyplace, and on any device.

Translate the Vision into a Meaningful Mission Statement

To transform vision into reality, managers must define specific organizational goals, objectives, and
philosophies. A starting point is to write a company mission statement, a brief document that
defines why the organization exists, what it seeks to accomplish, and the principles that the
company will adhere to as it tries to reach its goals.

Establish Company Goals and Objectives

 As mentioned earlier, establishing goals and objectives is the key task in the planning process.
Although these terms are often used interchangeably, a goal is a broad, long range accomplishment
that the organization wishes to attain in typically five or more years, whereas an objective is a
specific, short-range target designed to help reach that goal.

 For AOL, a goal might be to become the number-one Internet service provider in the Brazilian
marketplace, and an objective might be to add 100,000 new Brazilian subscribers by year-end.

Develop Action Plans

Once managers have established a firm's long-term strategic goals and objectives, it must then
develop a plan of execution.

 Tactical plans lay out the actions and the allocation of resources necessary to achieve specific,
short-term objectives that support the company's broader strategic plan. Tactical plans typically
focus on departmental goals and cover a period of one to three years. Their limited scope permits
them to be changed more easily than strategic plans.

 Operational plans designate the actions and resources required to achieve the objectives of tactical
plans. Operational plans usually define actions for less than one year and focus on accomplishing a
firm's specific objectives such as increasing the number of new subscribers by 5 percent over the
next six months.

The first managerial function involves planning. The function is about creating a detailed
plan towards achieving a specific organizational objective. When you are planning, you
are identifying the tasks, which are required to achieve the desired goals, outlining how
the tasks should be performed, and identifying when and by whom they must be
performed. The focus of planning is about achieving the objectives and it does require
knowledge of the organization’s objectives and vision. You will need to look both at the
short- and long-term success of the organization as part of the plan.

An example of planning would be a situation where you have an objective, such as

increasing the sales by 20% in the following month. You will need to look at the different
ways you and the team could achieve this goal. This might include things like creating a
new advertisement campaign, reducing prices or speaking to customers about their
shopping plans. Your role is to pick the processes that you find the most appropriate and
to organize them into a logical pattern. You must also identify the timeline for these
processes.

As you might realize, planning is on on-going function. Management will regularly have
to plan the future tasks and adjust the plans based on the organizational situation and
the achievement of previous goals. Furthermore, it requires the whole organization to
work together as the different departments or team plans need to link to each other and
align with the organizational objective. Henri Fayol called the function the most difficult to
achieve! You need a lot of knowledge and flexibility in order to plan activities effectively.

Why is planning essential?

Why is planning important? Planning provides the organization a better sense of what it
wants to achieve and how it can achieve this. You essentially have more focus when
you plan for things. Think what would happen if you went into a big job interview without
any planning.
 You might be OK, but you wouldn’t be able to focus on the details and it might take time
for you conduct your answers. But if you plan for the interview, you now exactly the
points you want to make, you have enough knowledge to respond to specific questions
about the company and so on.

In effect, planning ensures the proper utilization of the available resources and the ability
to understand how these should be used in order to achieve the goal. In the example of
the interview, the planning helps you take advantage of information on company
websites, research interview questions and to then use this information to outline
example answers.

A key part of planning is also the vital role it plays in reducing risks. When management
plans for the tasks ahead, they are looking at the situation and detailing the possible
pitfalls ahead. As with your interview, the risk of not knowing anything about the
company or giving an incoherent answer is higher than if you had planned your answers
a little.

How to plan?
Planning is an intellectual activity that doesn’t always require a lot of visible labor and
effort, as much of it is about thinking creatively about the issues at hand. When you
need to come engage in planning, you should focus on the following steps:

 Gain knowledge of the issues – You need to understand the organizational objectives,
the different components they involve, and the available resources you and the team
have. You also need to be knowledgeable of the topic at hand. In terms of increasing
sales, you need to have an understanding of how the sales industry works and what
different methods can effectively boost company sales.

 Look into the future – The function is about understanding the short- and long-term
objectives the organization wants to achieve. You need to consider not just these
different elements, but also be able to make predictions about the future conditions for
achieving these. Perhaps you have noticed changes in customer behavior due to the
downturn in the economy. When you are planning, you need to take into account these
little nuances.

 Determine the objectives – Once you are aware of the organizational objective, the
resources available, and the future outlook to achieving the objectives, you need to
identify the specific processes and detailed goals that are required to achieve the bigger
goal. You might want to create a marketing campaign to increase sales, which requires
the team to conduct market research and to come up with ideas. The more detailed
objectives and processes you can set, the better the plan is.

 Create flexible structures – However, your planning needs to be flexible and take into
account things don’t always go according to plan. Your management plan must take into
account the other departments and their specific organizational goals. Perhaps the
financial team has to cut down costs for the sales team and you need to be aware of the
impact this would have on your new marketing campaign.

THE ORGANIZING FUNCTION

It is the process of bringing together physical, financial and human resources and developing
productive relationship amongst them for achievement of organizational goals. According to Henry
Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw
material, tools, capital and personnel’s”. To organize a business involves determining and providing
human and non-human resources to the organizational structure. Organizing as a process involves:

 Identification of activities.

 Classification of grouping of activities.

 Assignment of duties.

 Delegation of authority and creation of responsibility.

 Coordinating authority and responsibility relationships.

Organizing, the process of arranging resources to carry out the organization's plans is the second
major function of managers. During the organizing stage, managers think through all the activities
that employees carry out (from programming the organization's computers to mailing its letters), as
well as all the facilities and equipment employees need in order to complete those activities. They
also give people the ability to work toward organizational goals by determining who will have the
authority to make decisions, to perform or supervise activities, and to distribute resources.

We will discuss the three levels of a corporate hierarchy—top, middle, bottom— commonly known
as the management pyramid. In general,

 Top managers are the upper-level managers who have the most power and who take overall
responsibility for the organization. An example is the chief executive officer (CEO). Top managers
establish the structure for the organization as a whole and they select the people who fill the upper-
level positions. Top managers also make long-range plans, establish major policies, and represent
the company to the outside world at official functions and fund-raisers.

 Middle managers have similar responsibilities, but usually for just one division or unit. They
develop plans for implementing the broad goals set by top managers, and they coordinate the work
of first-line managers. In traditional organizations, managers at the middle level are plant managers,
division managers, branch managers, and other similar positions—reporting to top-level managers.
But in more innovative management structures, middle managers often function as team leaders
who are expected to supervise and lead small groups of employees in a variety of job functions.
Similar to consultants, they must understand every department's function, not just their own area of
expertise. Furthermore, they are granted decision-making authority previously reserved for only
high-ranking executives.

 At the bottom of the management pyramid are first-line managers (or supervisory managers). They
oversee the work of operating employees, and they put into action the plans developed at higher
levels. Positions at this level include supervisor, department head, and office manager.

The next function of management follows planning and it is about organizing. It’s about
using the plan to bring together the physical, financial and other available resources and
use them to achieve the organizational goal. If your task were to increase sales, you
would look at the plan and determine how to divide the resources you have in order to
put your plan in place.
The marketing campaign would be handed out the Becky and you would provide them
with the financial resources available and needed to give birth to the campaign. You
would also need to ensure the team has access to the customer files in order to utilize
vital information. You’d then direct Danny and his team to calculate the possible
reductions you can make, help them have the resources to determine which products
are best to discount and so on.

You’d use the above plan and information about the resources you have or which you
need, and arrange the resources to the right tasks. As the example shows, this can be
about arranging the finances, ensuring the right equipment is used and appointing the
personnel to the specific tasks.

Your objective as the manager is to provide your team or department the resources it
needs to turn the plan into reality. The organizing function is about the overall structure
of the specific managerial level. You are creating the foundations to everyday operations
by organizing the resources. This function is closely linked to the hierarchy of
management.

Depending on your management level, you will have different responsibilities and
resources to organize. The top-level managers need to organize the teams below them,
while the lower-level managers will be partly taking orders for effective organizing from
the managers above. Organizing is a vital part of ensuring the company can function
effectively and it concerns the day-to-day activities.

Why is organizing essential?

While it might be difficult to work without a plan, it can be impossible for an organization
to function without organizing. The function is vital because it ensures there is structure
to the operations. You are aware of the resources and you ensure they are used in a
manner that best helps the company to achieve its targets.

In terms of finances, organizing can guarantee you don’t waste money on functions that
don’t provide the right results. If you don’t organize the right persons to do the right jobs,
you might damage productivity. If you know Sarah is talented in accounting, you don’t
want to put her in charge of marketing. By organizing the resources, you ensure
operational efficiency and structure. The company’s day doesn’t start in chaos, with
people trying to figure out what they are supposed to do. Organizing puts the plan in
action.

Without organizing, resources wouldn’t necessarily work towards the operational goals.
While you might have the team still doing tasks, the tasks might not be the correct ones
for the situation. Consider you are a manager of a team in a café. When you organize
the team to perform the tasks required to boost coffee sales, you have each person
working towards the goal. Jerry might be greeting customers and telling them about the
new coffee flavour, while Dina and Jack are working to make the sale and the coffee as
quickly as possible.

If you hadn’t organized them, you might end up with a situation where Jerry is wiping the
floors (although they are clean) and Dina is working alone at the counter.

How to organize?
 When done efficiently, organizing tends to follow the pattern and steps outlined below:

 Identify activities and classify them – The step is straightforward enough because you
already have a plan. Your objective is to identify the different roles, processes, and
activities required to achieve the objectives. These would be the roles for the team
members, the different tasks each role would need to perform and the specific
processes the tasks would include.

 Assign the duties and resources–Once you’ve identified the above, you would begin
organizing the resources. You would assign the specific tasks for the persons you feel
are the most qualified and provide the resources to the processes, which most need
them.

 Delegate authority and create responsibilities–Managers shouldn’t behave like

dictators. Although the power is concentrated to your as the manager, it doesn’t mean
you should have all the authority. In order the get the marketing campaign working
properly, you might want to ensure the person in charge of the team has the authority to
make decisions. You need devolution of responsibility, as it can ensure the plan works
efficiently.

 Co-ordinate authority and responsibilities–As well as delegating authority, you also

need to co-ordinate it to match the overall functionality of the organization and the
structure of the objectives. For example, you might want two people to share the
responsibility of organizing the price reductions, with each having the ability to respond
to supplier queries. Furthermore, if you have other managers above you, it’s important to
co-ordinate the authority to ensure the functionality doesn’t suffer as a result of different
plans.

Staffing

It is the function of manning the organization structure and keeping it manned. Staffing has assumed
greater importance in the recent years due to advancement of technology, increase in size of
business, complexity of human behaviour etc. The main purpose of staffing is to put right man on
right job i.e. square pegs in square holes and round pegs in round holes. Staffing involves:

 Manpower Planning (estimating man power in terms of searching, choose the person and giving
the right place).

 Recruitment, selection & placement.

 Training & development.

 Remuneration.

 Performance appraisal.

 Promotions & transfer.

Staffing is a continuous and vital function of management. After the objectives have been
determined, strategies, policies, programmes, procedures and rules formulated for their
achievement, activities for the implementation of strategies, policies, programmes, etc. identified
and grouped into jobs, the next logical step in the 15 management process is to procure suitable
personnel for manning the jobs. Since the efficiency and effectiveness of an organization
significantly depends on the quality of its personnel and since it is one of the primary functions of
management to achieve qualified and trained people to fill various positions, staffing has been
recognized as a distinct function of management. It comprises several sub functions:

(a) Manpower planning involving determination of the number and the kind of personnel required.

(b) Recruitment for attracting adequate number of potential employees to seek jobs in the
enterprise.

(c) Selection of the most suitable persons for the jobs under consideration.

(d) Placement, induction and orientation.

(e) Transfers, promotions, termination and layoff.

(f) Training and development of employees.

As the importance of human factor in organizational effectiveness is being increasingly recognized,

staffing is gaining acceptance as a distinct function of management. It need hardly any emphasize
that no organization can ever be better than its people, and managers must perform the staffing
function with as much concern as any other function.

The staffing function is an increasingly important function of management, although it is

sometimes left out when the core functions are discussed. It can be seen closely related
to organizing, with both focused on ensuring the resources are directed to the right
processes and tasks. For staffing, the focus is on people and their labor in relation to the
organizational objectives.

The function aims to ensure the organization always has the right people in the right
positions and the organizational structure isn’t hindered by lack or excess of personnel.
You would essentially be looking at the tasks ahead of you and determining who should
do what and if you have the right manpower to achieve the objectives you want.

In terms of hitting your sales targets, you would need to analyze if the current staff is
capable of performing the tasks and whether you have enough employees to ensure the
integrity of the organization. You might find the marketing team to be too small and
consider hiring a temporary or even full-time worker.

The reason staffing is included as a separate function and why it’s a crucial part of
management is due to the changing nature of the workforce and the organization.
Today’s companies are much more complex in terms of where and when they operate –
companies aren’t confined between national boundaries anymore. Technology has also
had a huge impact on company structures, requiring new positions and destroying
others.

Whereas your car sales company might have mainly relied on face-to-face sales in the
past, today you might also do business online, which would mean you need people for
IT-specific roles and perhaps fewer salespersons. Management has also become more
focused on the human behavioral aspect of leadership. Finding the right company fit,
ensuring employees are satisfied, and guaranteeing emotional wellbeing as well as
physical work safety have emphasized the importance of staffing as a function.

Why is staffing essential?

 As the above showed, staffing’s importance as a core function of management has
increased in the past few decades. But having the right amount of staff and the right
people doing the required roles isn’t just crucial because of changing technology of
enhanced focus on complex human behavior. Staffing is essential to guarantee the
operational functionality of the organization.

If you don’t have the right amount of people working in your organization, you make
achieving organizational goals harder. You might either be in a situation where you can’t
increase the sales, as you don’t have the manpower to respond to company queries. On
the other hand, you might be wasting resources by having too many employees with not
enough tasks to perform. The numbers do matter.

Staffing also guarantees the staff you have is qualified to perform the tasks and that they
are adequately supported in those roles. This will further deepen the organizational
efficiency, since people are motivated and qualified to work towards the common
objective. You can’t hire a plumber if you are hoping to fix the roof. Furthermore, even
the most qualified of employees need the occasional help and support. The staffing
function helps create these development opportunities.

How to staff?
According to Koontz & O’Donell, staffing “involves manning the organisation structure
through proper and effective selection, appraisal and development of personnel to fill the
roles designed on the structure”. It consists of a number of separate functions, which
are:

 Manpower planning – You need to stay on top of staffing, as manpower requirements

can change from season to season. Planning would see you make estimations of the
number of employees you need, searching for the right kind of employees, and hiring the
perfect employees to the roles in front of you.

 Recruitment, selection and placement – Another key function is the actual recruitment
process, with its various steps.

 Training and development – Staffing also includes the creation of structures, which
ensure the employees are always on top of the latest skills in the position and the
industry. You should also consider training programs in terms of succession, as you
need to ensure the next generation of managers and leaders is coming through your
organization.

 Remuneration – A big part of the function is the financial aspect. Staff remuneration is
key in terms of attracting the right talent without damaging the organization’s finances. If
you aren’t offering a competitive remuneration package, the applicants will go to your
competitors.

 Performance appraisal – You must also create structures of feedback within the
organization. Feedback can play a crucial role in motivating and developing employees;
with the reward structures ensuring good behavior is supported and noticed.

 Promotions and transfers of roles – Related to the above two points, promotions are
essential for staffing operations. You can reward and motivate the staff by offering
enough opportunities to climb up the career ladder. Creating structures for role transfers
and promotions also ensure the talent and knowledge you’ve attracted doesn’t leave
elsewhere.

Communication

In its broadest sense, communication is the transmission of

meaning to others. It means transfer of information and
understanding from person to person a flow of information from
the top to the bottom and from the bottom to the top as well as
horizontal or sideways on the same level of organisation.

In formal communication we have dissemination of information

primarily. In biter-personal communication between two or more
persons we have transmission of information as well as flow of
understanding based on two-way traffic of communication.

Personal or face-to-face communication is the best form of

communication. Managerial leadership depends upon upward
communication to the leader in the form of feedback so that he can
understand the feelings, emotions, motives and problems of
subordinates and his power will have support and acceptance from
below.

Communication also leads to sharing of information, ideas and

knowledge. Communication is the cement that makes organisations.
It enables a group to think together, and act together. Society’s very
existence is dependent upon communication, i.e., passing of
information and understanding from one person to another.

Communication may be through:

(i) Actions, e.g., smile, frown, facial expressions;

(ii) Spoken words, e.g. talk;

(iii) Written or printed words;

(iv) Graphs, diagrams, figures, models, pictures, charts and tables;

(v) Silence can also communicate at times.

The elements of management —planning, organising, staffing,
directing, motivating and controlling — rare universally applicable
to all joint or collective enterprises.

In short management involves:

(1) Managing the enterprise;

(2) Managing the managers, and

(3) Managing the workers and the work.

Central Framework of Management system:

1. Top Bar — Organisation.

2. Right Bar — Communication.

3. Left Bar — Human Relation.

No organised activity could exist for long without the holy three of
the Bicycle. A manager has to use the central frame effectively.

Supporting Mechanism to Management System:

(1) Rear Wheel:
It represents Technical know how — administrative office, plant,
personnel, marketing, purchasing, finance, planning and research

(2) Front Wheel:

It represents managerial function — planning, organising, directing,
controlling, etc., the manager provides the motive power to run the
wheels of business enterprise. He is also the coordinating and
controlling authority.

(3) The Head-lamp represents goals and objectives to be achieved.

(4) On the carrier we have goods and services required in the

market.

(5) Roadway for business journey indicates economic, social and

political factors.
Planning concentrates on setting and achieving objectives of an
organisation. Planning is the first management function to be
performed in the process of management. It governs survival,
growth and prosperity of any organisation in a competitive and
ever-changing environment the planning function is performed by
managers at every level of management. It is necessary for
discharging all other management functions also.

Motivating

This managerial function is fully reflected when we define

management as the art of getting things done willingly through and
with other people.

Management is interested in two primary elements:

(1) Things, i.e., material resources and

(2) Men and women, i.e., human resources.

Thing is subject to the laws of mechanics and it is susceptible to

scientific or machine-like treatment. But human beings cannot be
subjected to scientific or machinelike treatment. However, through
the power of leadership and the science of co-operation, we can
evolve a suitable method of integrating the interests of individuals
and the organisation.

The power of management exists with or through people, but never

over them, at least in a democratic society. Authority may be
imposed from above but it must be supported, nourished and
recognised from below, i.e., from the subordinates. Then only the
authority is meaningful and it can work smoothly.

The managerial power has its source in the methods of leading,

motivating, appraising, teaching, influencing, counseling, coaching,
delegating and setting an example. So the manager plans, organises,
directs, and motivates the people working with him. Motivation and
leadership are the master keys to successful management of any
enterprise.
They are also responsible to ensure productivity of human
resources. Motivation can set into motion a person to carry out
certain activity. Motivation assumes unique importance in modern
business management. Democratic leadership heavily relies on
motivation of employees, through financial and non-financial
incentives.

Human relations in industry have accorded special emphasis to this

managerial function. Effective communication and participation
enhance the power of motivation. Feedback of information (upward
communication) is necessary for effective motivation and direction.

THE DIRECTING (LEADING) FUNCTION

It is that part of managerial function which actuates the organizational methods to work efficiently
for achievement of organizational purposes. It is considered lifespark of the enterprise which sets it
in motion the action of people because planning, organizing and staffing are the mere preparations
for doing the work. Direction is that inert-personnel aspect of management which deals directly with
influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational
goals. Direction has following elements:

 Supervision

 Motivation

 Leadership

 Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching
& directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.
Communications- is the process of passing information, experience, opinion etc from one person to
another. It is a bridge of understanding.

Leading—the process of influencing and motivating people to work effectively and willingly toward
company goals—is the third basic function of management.

Managers with good leadership skills have greater success in influencing the attitudes and actions of
others, both through the demonstration of specific tasks and through the manager's own behavior
and spirit.

Additional studies have shown that managers with strong interpersonal skills and high emotional
quotients (EQs) tend to be more effective leaders. The characteristics of a high EQ include:

 Self-awareness. Self-aware managers have the ability to recognize their own feelings and how
they, their job performance, and other people are affected by those feelings. Moreover, managers
who are highly self-aware know where they are headed and why.

 Self-regulation. Self-regulated managers have the ability to control or reduce disruptive impulses
and moods. They can suspend judgment and think before acting. Moreover, they know how to
utilize the appropriate emotion at the right time and in the right amount.

 Motivation. Motivated managers are driven to achieve beyond expectations— their own and
everyone else's.

 Empathy. Empathetic managers thoughtfully consider employees' feelings, along with other
factors, in the process of making intelligent decisions.

 Social skill. Socially skilled managers tend to have a wide circle of acquaintances, and they have a
knack for finding common ground with people of all kinds. They assume that nothing important gets
done by one person alone and have a network in place when the time for action comes. The three
broad categories of leadership style are autocratic, democratic, and laissez-faire.

 Autocratic leaders make decisions without consulting others.

 Democratic leaders delegate authority and involve employees in decision making. Even though
their approach can lead to slower decisions, soliciting input from people familiar with particular
situations or issues may result in better decisions.

 The third leadership style, laissez-faire, is sometimes referred to as free-rein leadership. The
French term laissez faire can be translated as "leave it alone," or more roughly as "hands off."
Laissez-faire leaders take the role of consultant, encouraging employees' ideas and offering insights
or opinions when asked. The laissez-faire style may fail if workers pursue goals that do not match the
organizations. However, the style has proven effective in some situations. Managers at Hewlett-
Packard's North American distribution organization adopted a laissez-faire style when they were
given nine months to reorganize their order-fulfillment process. The managers eliminated all titles,
supervision, job descriptions, and plans, and they made employees entirely responsible for the
project. At first there was chaos. However, employees soon began to try new things, make mistakes,
and learn as they went. In the end, the team finished the reorganization ahead of schedule, reduced
product delivery times from 26 days to 8 days, and cut inventory by 20 percent. Moreover, the
employees experienced a renewed sense of challenge, commitment, and enjoyment in their work.
Adapting leadership style to current business circumstances is called contingency leadership. You
can think of leadership styles as existing along a continuum of possible leadership behaviors, as
shown on digital display.

The fourth function is known as directing, sometimes also referred to as the influencing
or the leading function of management. Directing is about the actuation of the methods
to work efficiently to achieve the set organizational objectives. The function goes beyond
organizing the employees to their specific roles and involves ensuring they are able to
perform the tasks through a variety of means. Directing in essence is looking after
productivity and ensuring productivity is going up instead of decreasing.

The function delves deeper inside human interaction, making the manager motivate,
communicate and inspire his or her personnel. At this stage, you are meeting and
connecting with your employees to find out how the tasks are going. You would talk to
them about the new marketing program, get their feedback on the project and spend
time inspiring them with new ideas. The directing function is all about the day-to-day
interaction between the management and the staff.

The function of directing has strong links to things such as leadership. A good manager
will be able to inspire the workforce to work towards the goals not because they have to
do it, but because they are driven to achieve these objectives. The manager’s role is not
just about ensuring the workplace has the right resources and employees know what
they are doing; it’s also important to create an environment of friendship. The manager
wants to be someone who can encourage and motivate the personnel and not fear them
into submission. With proper directing, you are able to set in motion the processes
you’ve prepared with the above three functions.

Why is directing essential?

Directing has an important role in an organization as it helps strengthen the operational
capability of the organization. It does so by ensuring the different parts of the
organization are working better. Directing is a bridge between the operational needs and
the human requirements of its employees. You essentially create a link between the
necessity of turning in a profit, with the need of keeping employees motivated and
interested. Since directing aims to improve productivity, you are strengthening how well
the organisation succeeds.

Research has pointed out how important human-focused management is in today’s

organization. When objectives are approached from a human perspective that aims to
ensure people’s opinions are listened to, the goals are met faster than in task-oriented
environments. The management’s ability to listen to the workforce, support and inspire
them will boost the productivity and profitability of the organization.

If you listen to your team’s concerns and perhaps provide them inspiration with quotes,
films or the occasional days out of the office, you can refresh their resolve to achieve the
goal. If you just throw a blank paper in front of them and tell them to write a story, they
are less likely to remain interested.

How to direct?
 You can direct and lead your team by utilizing four key methods based on the findings of
human behavioral studies. These are:

 Supervision – You need to oversee the work your employees are doing. The method
requires watching and monitoring the performance, but also supporting and guiding the
employees when things are not going as planned. You could use evaluation reports,
examine the quality of work, and be present during certain parts, such as team meetings
or when the person is talking to clients. In terms of support, you want to discuss the work
and how it’s moving along. You also want to provide materials that can help the
employee perform better.

 Communication – Directing is built around effective communication. As a manager, you

need to create an environment that supports different communication methods from
passing information to exchanging opinions. The important thing is to ensure these
different communication channels are not just between manager and subordinate, but
also between employees and different management levels.

 Motivation – As mentioned above, big part of directing is about inspiring and motivating
your employees. You need them to get behind the objectives to ensure there is
enthusiasm to achieve the goals. Motivating as a manager includes positive and
negative feedback, provision of ideas and the opportunities to develop skills further.
Directing might also have an element of monetary or non-monetary incentives, such as
the introduction of bonuses.

 Leadership – Managers must essentially act more like leaders when directing the
workforce. This means that you need to occasionally motivate and inspire by setting an
example, instead of simply telling the subordinates what they need to do. You want to
get hands on with the work and be part of the process of achieving the objectives.
Although managers and leaders tend to differ, leadership skills are something a good
manager should keep in mind.
The function might seem rather complex and getting it right might be harder than any of
the other functions of management. You should watch the video of Jim White, professor
emeritus at North Lake College, explaining directing as a function and giving his take on
what he thinks are the three key elements of directing: leading, motivating and
communicating.

THE CONTROLLING FUNCTION

It implies measurement of accomplishment against the standards and correction of deviation if any
to ensure achievement of organizational goals. The purpose of controlling is to ensure that
everything occurs in conformities with the standards. An efficient system of control helps to predict
deviations before they actually occur.

Therefore, controlling has following steps:

 Establishment of standard performance.

 Measurement of actual performance.

 Comparison of actual performance with the standards and finding out deviation if any.

 Corrective action.

Controlling is the fourth basic managerial function. In management, controlling means monitoring a
firm's progress toward meeting its organizational goals and objectives, resetting the course if goals
or objectives change in response to shifting conditions, and correcting deviations if goals or
objectives are not being attained.

The Control Cycle Many firms control for quality through a four-step cycle that involves all levels of
management and all employees. In the:

 First step, top managers set standards, or criteria for measuring the performance of the
organization as a whole.

 In the second step of the control cycle, managers assess performance, using both quantitative
(specific, numerical) and qualitative (subjective) performance measures.

 In the third step, managers compare performance with the established standards and search for
the cause of any discrepancies.

 If the performance falls short of standards, the fourth step is to take corrective action, which may
be done by either adjusting performance or re-evaluating the standards.

 If performance meets or exceeds standards, no corrective action is taken.

Management Skills

 Interpersonal Skills To communicate with other people, work effectively with them, motivate
them, and lead them are interpersonal skills.

 Technical Skills A person who knows how to operate a machine, prepare a financial statement,
program a computer, or pass a football has technical skills: Managers at all levels use administrative
skills, which are the technical skills necessary to manage an organization.

 Conceptual Skills Managers need conceptual skills to see the organization as a whole, in the
context of its environment, and to understand how the various parts interrelate. Conceptual skills
are especially important to top managers. These managers are the strategists who develop the plans
that guide the organization toward its goals. A key managerial activity requiring conceptual skills is
decision making, a process that has five distinct steps: (1) recognizing the need for a decision, (2)
identifying, analyzing, and defining the problem or opportunity, (3) generating alternatives, (4)
selecting an alternative and implementing it, and (5) evaluating the results.

The final function of management is controlling. The function ensures the other four
functions are followed correctly and the flow of work is moving the organization towards
the objectives it has set itself. As Theo Haimann has put it, controlling is

“the process of checking whether or not proper progress

is being made towards the objectives and goals and
acting if necessary, to correct any deviation“.
In our example of having the objective to increase sales in a particular month, controlling
would be the function that measures whether the sales are increasing and helps to
correct the situation if the specified target is not getting closer. As a manager, you would
examine the processes you set forward and take note whether they are enhancing your
sales records. The marketing campaign’s effectiveness would be evaluated and
measured. If you find the price reductions being inefficient during the process, you might
consider swapping the products on sale, reduce the reduction, or abort the discount
campaign altogether as inefficient.
 Controlling requires you to examine the objectives in a measurable manner. You
essentially need to set standards, which guarantee you know exactly what you want to
achieve and what counts as success or failure. But controlling is also a function that due
to the set of standards will ensure you have the ability to correct behaviors when they
deviate from the standards. In essence, controlling is about quality monitoring. You are
looking at the processes and ensuring they achieve the right things for the organization.

Why is controlling essential?

Controlling’s most important function is the risk-reduction ability. Since you are
essentially monitoring the performance of the team and comparing it against the
objectives you’ve set, you can react to problems more easily. Instead of realizing at the
end of the month that you’ve missed your sales target by a huge margin, you can keep
on eye on the situation during the process.

If you notice the marketing campaign, for example, is not producing any new customers
or leading to increased sales, you can re-tweak it to better attract customers. With the
re-tweak, you might be able to change the campaign’s attractiveness and recover the
situation. This could end up guaranteeing you meet the sales target at the end of the
month.

Even if you miss the target, you might not miss it by as much and you’ve at least had the
chance of correcting the situation. With controlling, you are reducing the risk of failure
and the impact of failing to meet your objectives. As mentioned, even if you happen to
fail, you’re prepared for it and you can start analyzing the reasons behind it immediately.

In the business world, measuring performance can be the difference between the
successful and the failing companies. Think about a start-up. If the management doesn’t
have a set of standards to measure its performance against, they don’t have any idea
what success or failure looks like. Even when they have a set of objectives and they
know whether they met them or not, they don’t have anymore information to go by.

Let’s say they want to earn $100,000 in the first three months. Without standards and
proper control, after three months all they know is whether they earned it or not. They
won’t know the why. Was the success down to the product? Did the marketing help?
How much did their social media strategy push sales? Was it all about the saving
mechanisms they put in place? In the end, understanding the reasons behind success or
failure will help the business perform better.

How to control?
For controlling to be effective, you need to take the four steps of this specific function of
management:

 Establish standards of performance – You first need to establish the standards of

performance you are aiming for. These must be set with the organizational objectives in
mind. You look at the objectives and the plan you have set, creating a set of
measurements that would tell you are on the right path. For example, let’s say you want
the manufacturing team to make 10 more shoes every day to boost productivity. Your
first measurement would be the team creating 10 shoes, but you could include other
factors to the set of standards. You might look to reduce the downtime by ensuring
 problems are fixed within 30 minutes and add a new person in the chain to fasten the
process by 10 minutes.

 Measure the actual performance – Once you’ve set the standards and you’ve set the
new processes in motion, you can start monitoring the actual performance. The
monitoring process will depend on your standards and the ease of measurement. Part of
the process can be performance reviews, actual quantifiable data and so on. The key is
to start collecting the information from the start.

 Compare the actual performance with the expected standards – As you receive
performance data, you can start comparing it with the standards you’ve set. The
comparison helps you to identify the problem areas or notice patterns that are actually
working more efficiently.

 Take corrective action – With the data you’ve collected and the information you have
about performance, you can take any necessary corrective action. If the recovery team
is not repairing the machinery quick enough, you can look deeper into it and find ways to
boost the performance. On the other hand, you might notice the team is producing more
shoes than you expected, which could help you revise your objectives.

Managing product and Services operations

Managing the marketing function

WHAT IS THE MARKETING CONCEPT?

Marketing is a group of activities designed to facilitate and expedite the designed to facilitate and
expedite the selling of goods and services. Selling of goods and services.

The marketing concept states that the engineer must try to satisfy the needs of engineer must try to
satisfy the needs of his clients by means of a set of his clients by means of a set of coordinated
activities

When clients are satisfied with what the company offers, they continually provide company offers,
they continually provide business.

THE ENGINEER AND THE FOUR P’S OF MARKETING

The engineering organization will be able to meet the requirements of its clients (or customers)
depending on how it uses (or customers) depending on how it uses four P’s of marketing which are
follows:

1.1.the product (or service)

In the marketing sense, the term “product” includes the tangible (or intangible) item and its capacity
to satisfy its specific need.

The services provided by the engineer manager will be evaluated by the client on the basis whether
or not his or her exact needs are met.

When a competitor comes into the pictured sells the same type of service, theabd sells the same
type of service, thepressure to improve the quality ofpressure to improve the quality ofservices sold
will felt.services sold will felt.

2.2.the price
3.3.the place, and

4.4.the promotion.

Managing the finance function