SELF-PACED LEARNING MODULE

IN

ENG’G MGT (ENGINEERING MANAGEMENT)

 MODULE 1 THE FIELD OF ENGINEERING MANAGEMENT

THE 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 to perform his job effectively and efficiently. The next concern will be to identify the
skills required which the engineer did not possess. As engineers, they are not directly
trained to deal with people, it is expected that their weakness will most often be on
peoplebased skills. This difficulty will be moiré apparent once they are assigned to occupy
management positions. It follows that if the engineer manager would want to do his job
well, some exposure to engineering management activities will be necessary.

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 -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.

ENGINEERING MANAGEMENT DEFINED

Engineering management refers to the activity combining “technical knowledge with the
ability to organize and coordinate worker power, materials, machinery, and money.” When
the engineer is assigned to supervise the work of even a few people, he is already
engaged in the first phase of engineering management. His main responsibility is to lead
his group into producing a certain output consistent with the required specifications. The
top position an engineer manager may hope to occupy is the general managership or
presidency of any firm, large or small. As he scales the management ladder, he finds that
the higher he goes up, the less technical activities he performs, and the more management
tasks he accepts. In this case, it is but proper that the management functions taught in
pure management courses be well understood by the engineer manager.

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,
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. Favourable 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.

SUMMARY

Engineers are known for their great contributions to development of the world’s civilization. These
are many areas where their presence is necessary like research, design and development,
testing, manufacturing, construction, sales, consulting, government, teaching, and management.
Engineers may be found contributing their share in the various level of organization. Engineering
activities need to be managed and engineers are sometimes placed in position where they have
to learn management skills.
Management is concerned with planning, organizing, leading, and controlling an organization’s
resources to achieve its mission and objectives.
There are certain qualifications required of the engineer manager.
One may become a successful engineer manager if the preconditions of ability, motivation to
manage, and opportunity to manage are met.

SELF -CHECK ACTIVITY

Identification:

1. It refers to the capacity of an engineer manager to achieve organizational objectives

effectively and efficiently.
2. Is a process consisting of planning, organizing, directing, and controlling.
3. Refers to the activity combining technical knowledge with the ability to organize and
coordinate worker power, materials, machinery, and money.
4. It’s a function of an engineer where in the engineer is engaged in the process of learning
about nature and codify this knowledge into usable theories.
5. Its’ a function of an engineer where in the engineer is directly in charge of production
personnel or assumes responsibility for the product.
6. It’s a function of an engineer where in engineer gets employment in school and is assigned
as a teacher of engineering courses.
7. Who indicates at least three general preconditions for achieving lasting success as a
manager?
8. Which level of organization those who are with a high degree of engineering jobs like
construction firms.
9. Which level of organization those who are in minimal engineering jobs like retailing firms.
10. Its’ a function of an engineer where in the engineer assists the company’s customers to
meet their needs, especially those that require technical expertise.

*Answers of self-check activities

1. Managerial Ability
2. Management
3. Engineering management
4. Research
5. Manufacturing
6. Teaching
7. Kreitner
8. Level Three
9. Level One
10. Sales
 MODULE 2
DECISION MAKING

Decision is from the Latin word “decidere” which means “decide”. A choice that you make about
something after thinking about it. Making is from the Old English word “macian” which means “make”.
The action or process of producing or making something.

Is defined as “the process of identifying and choosing alternative courses of action in a

manner appropriate to the demands of the situation.

Engineer Manager

1. Primarily tasked to provide leadership in the quest for the attainment of the organization's
objectives.
2. He must learn the intricacies of decision making.
3. Decision-making skills will be very crucial to his success as a professional.
4. Good decision, on the other hand, will provide the right environment for continuous growth
and success of any organized effort.

DECISION-MAKING AS A MANGEMENT RESPONSIBILITY

Decisions must be made at various levels in the workplace. They are also made at the
various stages in the management process. If certain resources must be used, someone must
make a decision authorizing certain persons to appropriate such resources.

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 a soon as
they are identified. The bigger issue is the manager who cannot or do not want to make decisions.
Delaney concludes that this type of managers is dangerous and "should be removed from their
position as soon as possible.

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 more complicated decision-making becomes.

An example may be provided as follows.

The production manager of a certain company received a written request from a section
head regarding the purchase of an air-conditioning unit. Almost simultaneously, another request
from another section was forwarded to him requiring the purchase of forklift. The production
manager was informed by his superior that he can only buy one of the two requested items due
to budgetary constraints.
The production Manager must now make a decision. His choice, however, must be based on
sound arguments for he will be held responsible, later on, if he had made the wrong choice.

What is Decision Making?

“The process of identifying and choosing alternative courses of action in a manner

appropriate to the demands of the situation.”
 The definition indicates that the engineer manager must adapt a certain procedure designed to
determine the best option available to solve certain problems. Decision-making is the heart of all
the management functions according to Nickels and others.

THE DECISION-MAKING PROCESS

Rational decision-making, according to David H. Holt, is a process in involving the following steps:

1. Diagnose problem
2. Analyze environment
3. Articulate problem or opportunity
4. Develop viable alternatives
5. Evaluate alternatives
6. Make a choice
7. Implement decision
8. Evaluate and adapt decision results

DIAGNOSE PROBLEM

If a manager wants to make an intelligent decision, his first move must be to identify the
problem. If the manager fails in this aspect, it is almost impossible to succeed in the subsequent
steps. An expert once said “identification of the problem is tantamount to having the problem
halfsolved".

What is a problem? A problem exists when there is a difference between an actual situation
and desired situation. For instance, the management of a construction company entered into a
contract with another party for the construction of a 25-storey building on a certain site. The actual
situation of the firm is that it has not yet constructed the building. The desired situation is the
finished 25-storey building. In this case, the actual situation is different from the desired situation.
The company, therefore, has a problem and that is, the construction of the 25-storey building.

ANALYZE THE ENVIRONMENT

Environment plays a very significant role in the success or failure of an organization.

Therefore, an analysis of the environment be undertaken.
The objectives of the environmental analysis are the identification of the constraints, which
can have spelled out as internal or external limitation.

EXAMPLE OF INTERNAL AND EXTERNAL LIMITATION.

For internal:

1. Limited funds available for the purchase of equipment

2. Limited training on the part of employees
3. Ill-designed facilities

For external:

1. Patents are controlled by other organizations

2. A very limited market for the company’s product and service exists
 3. 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.

An illustration of failure to analyze the environment is as follows:

The president of a new chemical manufacturing company made a decision to locate his
factory in a place adjacent to a thickly populated area. Construction of the building was made with
precision and was finished in a short period. When clearance for the commencement of operation
was sought from the local authorities, this could not be given, it turned out that the residents
opposed the operation of the firm and made sure that no clearance is given.
The president decided to relocate the factory but not after much time and money has been
lost. This is a clear example of the cost associated with management disregarding the
environment when decisions are made. In this case, the president did not consider what the
residents could do.

COMPONENTS OF THE ENVIRONMENT

1. Internal environment-refers to organizational activities within a firm that surrounds

decision-making.

2. External environment-refers to variables that are outside the organization and not
typically within the short- run control of top management.

Internal Environment in Decision-Making

 External Environment

DEVELOP VIABLE ALTERNATIVES

Making alternative solutions that can be used to solved a problem. The best among the
alternative solutions must be considered by management.

STEPS IN MAKING ALTERNATIVE SOLUTION:

1. Prepare a list of alternative solution.

2. Determine the viability of each solution.
3. Revise the list.

To illustrate:

An engineering firm has a problem of increasing its output by 30%. This is the result of a
new agreement between the firm and one of its clients.

The list solutions show the following alternative courses of action:

1. Improve the capacity of the firm by hiring more worker.

2. Secure the capacity of the subcontractors;
3. Buy the needed additional output from another firm.
4. Stop serving some of the company’s customer.
5. Delay serving some clients.

The list was revised and only three were deemed to be viable. The last two were deleted
because of adverse effects in the long-run profitability of the firm.
EVALUATE ALTERNATIVES

 Proper evaluation makes choosing the right solution less difficult.

 How the alternatives evaluated?

It depends on the nature of the problem, the objectives of the firm, and the nature of
alternatives presented. Each alternative must be analyzed and evaluated in terms of
its value, cost, and risk characteristics.

Example of EVALUATION OF ALTERNATIVES:

Evaluation sheet for applicants in an engineering firm
Title of Vacant position: Junior Engineer
Date of Evaluation: August 16, 2020

Evaluators:

Engr. Juan dela Cruz

Manager
Engineering Division II

The table shows a detailed score sheets of the applicants. They are given scores in
every aspect to determine who is the best choice for the applied position and signed by
the evaluators.

MAKE A CHOICE

 The process of selecting among alternatives representing potential solutions to a

problem.
 According to WEBBER- particular effort should be made to identify all significant
consequences of each choice.
 To make the selection easier, the alternatives can be ranked from the best to worst on
the basis of some factors like benefit, cost, or risk

IMPLEMENT DECISION

After a decision has been made, implementation follows.

 Implementation refers to carrying out the decision so that the objectives sought will be
achieved.
 Plan must be devised so that the implementation will be effective. On this stage,
resources must be made available so that the decision may be properly implemented.
Those who will be involved in implementation, according to Aldag and Stearns, must
understand and accept the solution
EVALUATE AND ADAPT DECISION RESULT
In implementing the decision, the result may or may happen therefore, important to
the manager to control and feedback mechanism to ensure result and provide information for
the future decisions.
Feedback - Process which requires checking at each stage of the process.

Control - Actions made to ensure that activities performed match the desired activities or
goals.
In this last stage of the decision-making process, the engineer manager will find out
whether or not the desired result is achieved. If the desired result is achieved, one may assume
that the decision made was good. If it was not achieved, Ferrell and Hirt suggest that further
analysis is necessary.

Feedback as a Control Mechanism in the Decision-making process

APPROACHES IN SOLVING PROBLEMS

In decision-making, the engineer manager is faced with problems which may either be simple or
complex. To provide him with some guide, he must be familiar with the following approaches.

1. Qualitative Evaluation-This refer to evaluation of alternative using intuition and subjective

judgement. Stevenson states that managers tend to use the qualitative approach when:

 The problem is fairly simple.

 The problem is familiar.
 Immediate decision is needed.

Example of an evaluation using qualitative approach:

A factory operates on three shifts with the following; First

shift -6:00 a.m. to 2:00 p.m.
Second shift -2:00 to 10:00 p.m.
Third shift -10:00 p.m. to 6:00 a.m.

Each shift consists of 200 worker manning 200 machines. The manager notified that the
five workers assigned to the 2nd shift could not report because of injuries from a car
accident.
The manager made an instant decision on who among the 1st shift worker would work
overtime.

2. Quantitative Evaluation-This term refers to the evaluation of alternatives using any

technique in a group classified as rational and analytical.

1. Inventory model— designed to help the engineer manager make decision making
regarding inventory.

a) Economic order quantity model.

b) Production order quantity model.
c) Back order inventory model.
d) Quantity discount model.

2. Queuing Theory-Theory determining the number of service unit that will minimize
both customers waiting time and cost of service.

3. Network Models-Models where large complex tasks are broken into smaller
segments that can be managed independently.
Two prominent network models are:

A) The Program Evaluation Review Technique (PERT)-a technique which

enables engineer managers to schedule, monitor, and control large and complex
projects by employing three-time factor per activity.
B) The Critical Path Method (CPM)-this is a network technique using only one-
time factor per activity that enables engineer managers to schedule, monitor, and
control large and complex projects.
 4. Forecasting-Defined as “the collection of past and current information to make
predictions about the future”

5. Regression Analysis- is a forecasting method that examines the association between

two or more variables. It uses data from previous periods to predict the future events.
Simple or multiple depending on the number of independent variables present. When one
independent is involved, it is called simple regression; when two or more independent
variables are involved, it is called multiple regression.

6. Simulation-Is a model constructed to represent reality on which conclusions about

real-life problems can be used. It is a highly sophisticated tool by means of which the
decision maker develops a mathematical model of the system under consideration.
Simulation does not guarantee an optimum solution, but it can evaluate the
alternatives fed into the process by the decision-maker.

7. Linear programming-is a quantitative technique that is used to produce an optimum

solution within the bounds imposed by constraints upon the decision. Also useful as a
decision making tool when supply and demand limitation.

8. Sampling theory-A quantitative technique where samples of populations are

statistically determined to be used for a number of process such as quality control and
marketing research.

9. Statically Decision-Theory-Refers to the rational way to conceptualize, analyze and

solve problems in situations involving limited or partial information about the decision
environment.

SUMMARY

Decision-making is a very important function of the engineer manager. His

organization will rise or fall depending on the outcomes of his decisions. It is therefore,
necessary for the engineer manager to develop some skills in decision-making.

The process of identifying and choosing alternative courses of action in a manner

appropriate to the demands of the situation is called decision-making. It is done at various
management levels and functions.

The decision-making process consists of various steps, namely: diagnose

problem, analyze environment, articulate problem or opportunity, develop viable
alternatives, evaluate alternatives, make a choice, implement decision, and evaluation and
adapt decision results.

There are two approaches in solving problems, namely: qualitative evaluation and
quantitative evaluation. Qualitative evaluation is used for solving fairly simple problems,
while quantitative evaluation is applied to complex ones.

SELF-CHECK ACTIVITY

Identification:

1. It is the process of identifying and choosing alternative courses of action in a manner

appropriate to the demands of the situation.
 2. It exists when there is a difference between an actual situation and a desired situation.
3. It is a model constructed to represent reality on which conclusions about real-life problems
can be used. It is a highly sophisticated tool by means of which the decision maker
develops a mathematical model of the system under consideration.
4. It is defined as “the collection of past and current information to make predictions about
the future”.
5. It is the Theory determining the number of service unit that will minimize both customers
waiting time and cost of service
6. It is the actions made to ensure that activities performed match the desired activities or
goals.
7. It is the process which requires checking at each stage of the process.
8. Who introduce the rational decision-making?
9. What is quantitative technique where samples of populations are statistically determined
to be used for a number of process such as quality control and marketing research?
10. It is defined as the action or process of producing or making something.

*Answers of self-check activities

1. Decision-making
2. Problem
3. Simulation
4. Forecasting
5. Queuing Theory
6. Control
7. Feedback
8. David H. Holt
9. Sampling theory
10. Decision
 MODULE 3 PLANNING TECHNICAL ACTIVITIES

THE NATURE OF PLANNING

• A plan, which is the output of planning, provides a methodical way of achieving desired
result.
• The plan serves as a useful guide.
• To minimize mistakes in decision – making, planning is undertaken

PLANNING DEFINED

• According to Nickels and other, Planning refers to “the management function that
involves anticipating future trends and determining the best strategies and tactics to
achieve organizational objectives”.

• Aldag and Stearns, define planning as “the selection & sequential ordering of tasks
required to achieve an organizational goal”.

• Cole and Hamilton, according to them is, “deciding what will be done, who will do it,
when and how it will be done, and the standards to which it will be done”.

• For our purposes, define planning as selecting the best course of action so that the
desired result may be achieved; and the course of action chosen is the means to realize
the goal.

PLANNING AT VARIOUS MANAGEMENT LEVELS

• Top Management Level Strategic Planning – Process of determining the major goals
of the organization and the policies and strategies of obtaining and using resources to
achieve those goals.

•Middle Management Level Intermediate Planning – The process of determining the

contributions that submits can make with allocated resources.

• Lower Management Level operational Planning – The process of determining how

specific tasks can best be accomplished on time with available resources.
Strategic Planning-refers to the process of determining the major goals of the organization and
the policies and strategies for obtaining and using resources to achieve those goals. In strategic
planning, the whole company is considered, specifically its objectives and current resources. The
output of strategic planning is the strategic plan which spells out " the decision about long-range
goals and the course of action to achieve goals".

Intermediate Planning- refers to "the process of determining the contribution that submits can
make with allocated resources. This type of planning is undertaken by middle management.
Under intermediate planning, the goals of a submit are determined and plan is prepared to provide
a guide to realization of the goals. The intermediate plan is designed to support the strategic plan.

Operational Planning- refers to the process of determining how specific task can best be
accomplished on time with available resources. This type of planning is a responsibility of lower
management. It must be performed in support of the strategic plan and intermediate plan.

THE PLANNING PROCESS

Various steps depending on the management level that performs the planning tasks

• Setting Organizational, Divisional, Or Unit Goals – Provide a sense of direction. Goals;

Precise statement of results sought, quantified in time and magnitude, where possible.

• Developing Strategies Or Tactics To Reach Goals – Ways to realize the goals are strategies.
A course of action aimed at ensuring that the organization will achieve its objectives.

•Determining Resources Needed - To satisfy strategic requirements, a general statement of

needed resources will suffice.

•Setting Standards -A quantitative or qualitative measuring device designed to help monitor the
performance of people, capital goods, or processes.
Setting Organizational, Divisional, or Unit Goals

The first task of the engineer manager is to provide a sense of direction to his firm (if he is the
chief executive), to his division (if he heads a division), or to his unit (If he is a supervisor). The
setting of goals provides an answer to the said concern. If everybody in the firm (or division or
unit, as the case may be) is aware of the goals, there is a big chance that everybody will contribute
hi share in the realization of such goals.
Goals may be defined as the "precise statement of results sought, qualified in time and magnitude,
where possible".

TYPES OF PLANS-classified in terms of functional areas, time horizon, and frequency of use.

1. FUNCTIONAL AREA PLANS – Plans may be prepared according to the needs of the
different functional areas.

Types of functional area plans.

 Marketing Plan – Written document or blueprint for implementing and controlling

an organization’s marketing activities.

 Production Plan – Quantity of output a company must produce in broad terms and
by product family.

 Financial Plan – Summarizes the current financial situation of the firm, analyzes
financial needs, & recommends a direction for financial activities.
  Human Resource Management Plan – Indicates the human resource needs of a
company detailed in terms of quantity and quality and based on the requirements
of the company’s strategic plan.

2. PLANS WITH TIME HORIZON – Plans with time horizon consist of the following:

 Short – Range Plans – These are plans intended to cover a period of less than one
year.
 Long – Range Plans – These are plans covering a time span or more than one
year.

3. PLANS ACCORDING TO FREQUENCY OF USE – According to frequency of use, plans

may be classified as:

• STANDING PLANS – These are plans are used again and again, and they focus
on managerial situations that recur repeatedly. Standing plans may be further
classified as follows:

 Policies – Broad guidelines to aid managers at every level in making

decisions about recurring situations or function.

 Procedures – Plans that describe the exact series of actions to be

taken in a given situation.

 Rules – Statements that either require or forbid a certain action.

• Single – Use Plans – These plans are unique and are unlikely to be repeated.
Single – use plans may be further classified as follows:

 Budgets – Projected expenditure for a certain activity and explains

where the required funds will come from.

 Programs – Designed to coordinate a large set of activities.

 Projects – Usually more limited in scope than a program and is

sometimes prepared to support a program.

PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS

• The Contents Of The Marketing Plan – William Cohen, maintains the following marketing plans:

 Executive summary – overall view of the marketing project and its potential.

 table of contents

 situational analysis and target market

 marketing objectives and goals

 marketing strategies

 marketing tactics
  schedules and budgets

 financial data and control

• The Contents Of The Production Plan – The Production plan must contain the following:

 the amount of capacity the company must have

 how many employees are required

 how much material must be purchased

• The Contents Of The Financial Plan – The components of the financial plan are as follows:

 an analysis of the firm’s current financial condition as indicated by an analysis of the most
recent statements

 a sales forecast

 the capital budget

 the cash budget

 a set pro forma (or projected) financial statements

 the external financing plan

• Contents Of The Human Resources Plan – The Human resources plan must contain the
following:

 personnel requirements of the company

 plans for recruitment and selection

 training plan

 retirement plan

PARTS OF STRATEGIC PLAN

The strategic plan must contain the ff:

• Company or corporate mission

• Objectives and goals

• Strategies

Company or corporate mission refers to the “strategic statement that identifies why an
organization exists, its philosophy of management and its purpose.
 MAKING PLANNING EFFECTIVE

Planning is done so that some desired results may be achieved. At times, however, failure in
planning occurs.

• Planning may be made successful if the ff. is observed:

 recognize the planning barriers

 use of aids to planning

• The planning barriers, according to plunkett and attner, are as follows:

 manager’s inability to plan

 improper planning process

 lack of commitment to the planning process

 improper information

 focusing on the present at the expense of the future

 too much reliance on the planning department

 concentrating on only the controllable variables


• Among the aids to planning that may be used are:

 gather as much information as possible

 develop multiple sources of information
 involve others in the planning process

SUMMARY

Technical activities, like other activities, require effective planning, i’e., if objectives and
goals are to be realized.
A plan is a methodological way of achieving results.
Planning is undertaken at various management levels.
Various steps are required in the planning process depending on the management level.
Plans may be classified in terms of functional areas, time horizon, and frequency of us
Plans consist of various parts that the engineer manager must be familiar with.
Plans can be made effective by recognizing the planning barriers and making use of aids
to planning.

SELF -CHECK ACTIVITY

Identification:
 1. It indicates the human resource needs of a company detailed in terms of quantity and
quality and based on the requirements of the company’s strategic plan.
2. These are plans intended to cover a period of less than one year.
3. These are plans covering a time span or more than one year.
4. These are plans are used again and again, and they focus on managerial situations that
recur repeatedly.
5. These plans are unique and are unlikely to be repeated.
6. It refers to the “strategic statement that identifies why an organization exists, its philosophy
of management and its purpose.
7. It summarizes the current financial situation of the firm, analyzes financial needs, &
recommends a direction for financial activities.
8. It is the quantity of output a company must produce in broad terms and by product family.
9. It is a written document or blueprint for implementing and controlling an organization’s
marketing activities.
10. It refers to “the management function that involves anticipating future trends and
determining the best strategies and tactics to achieve organizational objectives”.

*Answers of self-check activities

1. Human Resource Management Plan

2. Short – Range Plans
3. Long – Range Plans
4. Standing Plans
5. Single – Use Plans
6. Company or Corporate Mission
7. Financial Plan
8. Production Plan
9. Marketing Plan
10. Planning
 MODULE 4 ORGANIZING TECHNICAL ACTIVITIES

The engineer manager needs to acquire various skill in management, including those for
organizing technical activities. In the highly competitive environment, the unskilled manager will
not be able to bring his unit company, as the case may be, to success.
Organizing contribute largely to accomplishment of the objectives of many organizations,
whether they are private business or otherwise. The positive effects of business success become
more pronounced when they come as a result of international operations, international
businesses, however, cannot hope to make huge profits unless they are properly organized to
implement their plans.
The opportunities offered by skill full organizing are too important for the engineer manager
to ignore. This chapter is intended to provide him with some background and insights in
organizing.

 REASONS FOR ORGANIZING

Organizing is undertaken to facilitate the implementation of plans. In effective
organizing, steps are undertaken to breakdown the total job into more manageable man
size jobs.

 ORGANIZING DEFINED
Organizing is a management function which refers to “the structuring of resources
and activities to accomplish objectives in an efficient and effective manner”.
The arrangement or relationship of positions within an organization is called
structure. The result of the organizing process is the structure.

 THE PURPOSE OF THE STRUCTURE

The structure serves some very useful purposes. They are the following
• It defines the relationship between tasks and authority foe individuals and
departments.
• It defines formal reporting relationships, the number of levels in the hierarchy
of the organization, and the span of control.
• It defines the grouping of individuals into departments and department into
organization.
• It defines the system to effect coordination of effort in both vertical (authority)
and horizontal (tasks) directions.

When structuring an organization, the engineer manager must be concerned with the
following.
• Division of labor – determining the scope of work and how it is combined in a
job.
• Delegation of authority – the process of assigning various degrees of
decisionmaking authority to subordinates.
• Span of control - the number of people who report directly to a given manager,
• Coordination - the linking of activities in the organization that serves to achieve
a common goal or objective.

 THE FORMAL ORGANIZATION

The formal organizations are the structure that details lines of responsibilities, authority,
and position”. What is depicted in the organizations chart is the formal organization. It is “the
planned structure’’ and it ‘’represent the deliberate attempt to establish patterned relationship
among components that will the objectives effectively”.
 The formal structure is described by management through;
1. Organization Chart-Is a diagram of the organizations official positions and formal lines
of authority.

2. Organization Manual-Provide written descriptions of authority relationship, details the

function of major organization units, and describe job procedures.

3. Policy Manuals-Describes personnel activities and company policies

 INFORMAL GROUPS

Formal organizations require the formation of formal groups which will be assigned to
perform specific tasks aimed at achieving organizational objective. The formal groups are a
part of the organization structure.
Those are instances when member of an organization spontaneously forms a group with
friendship as a principle reason for belonging. This group is called an informal group. It is not
a part of the formal organization and it does not have a formal performance purpose.
The informal organization, useful as it is, is ‘’vulnerable to expediency, manipulation, and
opportunism.’’ According to Valentine.

 TYPES OF ORGAZATION STRUCTURES

Before the commencement of activities, the decision-makers in an organization will have
to decide in that structure to adapt. Depending in the size and type or operations. A certain
structural type may best fir the requirements.

Organizations may be classified in three (3) types. They are the following.

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

in one function activity, such as engineering or marketing, is grouped in to one unit.

2. Product or market organization – this refers to the organization of a company by divisions

that brings together all those involved with a certain type of product or customer.

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

a function or division management and to a project or group manager.

 FUNCTIONAL ORGANIZATION

Are very effective in smaller firms ‘’single-business firms where key activities revolve
around well- defined skills and areas of specialization’’.
Functional organizations have certain advantage. They are the following;
1. The grouping of employees who perform a common task permit economy of scale and
efficient resource use.
2. Since the chain of command converges at the top of the organization, decision-making is
centralized, providing a unified direction from the top.
3. Communication and coordination among employees within each department are excellent.
4. The structure promotes high-quality technical problem-solving.
5. The organization id provided with in depth skill specialization and development.
6. Employees are provided with career progress within functional departments.
 The disadvantages of the functional organization are the following;
1. Communication and coordination between the departments are often poor.
2. Decisions involving more than one department pile up at top management level and often
delayed.
3. Work specialization and division of labor, which are stressed in a functional organization,
produce routine, non- motivating employee tasks.
4. It is difficult to identify which section or group is responsible for certain problems.
5. There is limited view of organizational goals by employees.
6. There is limited general management training for employees.

PRODUCT OR MARKET ORGANIZATION

With its feature of operating by divisions, is ‘’appropriate for a large corporation with many
product lines in several related industries’’.

The advantages of a product or market organization are as follows.

1. The organization is flexible and responsive to change.

2. The organization provides a high concern for customer’s needs.
3. The organization provides excellent coordination across functional departments.
4. There is easy pinpoint off responsibility for product problems.
5. There is emphasis on overall product and division goals.
6. The opportunity for the development of general management skill is provide.

The disadvantages of the product of market organization are as follows;

1. There is a high possibility of duplication of resources across divisions.
2. There is less technical depth and specialization in divisions.
3. There is poor coordination across divisions.
4. There is less top management control.
5. There is competition for corporate resources

MARTIX ORGANIZATION
According to Thompson and Strickland, ‘’is a structure with two (or more) channels of
command, two lines of budget authority, two sources of performance and reward. Higgins
declared that ‘’ the matrix structure was designed to keep employees in central pool and to allocate
them to various project in the firm according to the length of time they were needed.

The matrix organization is afforded with the following advantages;

1. There is more efficient use of resource than the divisional structures.
2. There is a flexibility and adaptability to changing environment.
3. The development of both general and functional management skills are present
4. There is interdisciplinary cooperation and any expertise is available to all
divisions.
5. There are enlarge task for employees which motivate them better.

The matrix organizations have some disadvantages however. They are the following;
1. There is frustration and confusion from dual chain of command.
2. There is high conflict between divisional and functional interests.
3. There are many meetings and more discussion than action.
4. There is a need for human relations training for key employee and managers.
5. There is a tendency for power dominance by one side of the matrix.
 TYPES OF AUTHORITY

The delegation of authority is a requisite for effective organizing. It consists of three types

1. Line authority- a manager’s right to tell subordinates what to do and then see
that they do it.

2. Staff authority- a staff specialist’s right to give advice to a superior. Staff

officers may be classified into the following:

a. Personal staff-those individuals assigned to a specific manager to provide

needed staff services.
b. Specialized staff-those individuals providing needed staff services for the
whole organization.

2. Functional authority- a specialist’s right to oversee lower level personnel involved in that
specialty, regardless of where the personnel are in the organization.

THE PURPOSE OF COMMITEES

When certain formal groups are inappropriate to meet expectations, committees are often
times harness to achieve organization goals.

A committee is a formal group of persons formed for a specific purpose. Committee are very useful
most specially to engineering and manufacturing firms. Committees may have classified as
follows:
Ad hoc committee – one created for short term purpose and have a limited life Standing
committee - it is a relatively permanent committee

SUMMARY

The proper management of engineering activities whether at the unit, department, or firm
level, requires effective organizing. The organizing function is undertaken to facilitate the
implementation of plans.
Organizing refers to the structuring of resources and activities to accomplish objectives.
The structure serves as a way to reach the organization's goals
The formal organization is the structure that will carry out the plan. It is described trough
the organization chart, the organization manual, and policy manual.
Informal groups oftentimes find their way to exist side by side with formal organizations.
These groups may make it easy or make it hard for the organization to achieve its objectives.
Organizations may be classified into: (1) functional, (2) product or market, or (3) matrix.
Authority delegated to the members of the organization may be classified into: (1) line
authority, (2) staff authority, and (3) functional authority.
Committees are used as a supplement to the existing formal organization. Committees
are formed to perform specific tasks. Committees are classified into: (1) ad hoc, and (2) standing.

SELF-CHECK ACTIVITY

Identification.

1. It is a manager’s right to tell subordinates what to do and then see that they do it.
 2. It is a relatively permanent committee.
3. It is a specialist’s right to oversee lower level personnel involved in that specialty,
regardless of where the personnel are in the organization.
4. Are those individuals assigned to a specific manager to provide needed staff services.
5. Are those individuals providing needed staff services for the whole organization?
6. It is a committee created for short term purpose and have a limited life.
7. It is a management function which refers to “the structuring of resources and activities to
accomplish objectives in an efficient and effective manner”.
8. This is a form of departmentalization in which everyone engaged in one function activity,
such as engineering or marketing, is grouped in to one unit.
9. It is a diagram of the organizations official positions and formal lines of authority
10. These are written descriptions of authority relationship, details the function of major
organization units, and describe job procedures.

*Answers of self-check activity

1. Line authority
2. Standing committee
3. Functional authority
4. Personal staff
5. Specialized staff
6. Ad hoc committee
7. Organizing
8. Function organization
9. Organization Chart
10. Organization Manual
 WORKSHEET

IN

ENG’G MGT (ENGINEERING MANAGEMENT)

 MODULE 1: THE FIELD OF ENGINEERING MANAGEMENT

NAME: SCORE:
COURSE AND YEAR: DATE:

Questions:

1. Why engineers are considered an important segment of the society?

2. What are expected of engineers in general?

3. In what current concerns are engineering outputs needed?

4. In what areas are engineers currently involved?

5. How many organizations be classified according to the engineering jobs performed?

6. Which organization level requires the highest management skills for engineer managers?

7. How may one define engineering management?

8. What qualifications must an engineer manager have?

9. How may one become a successful engineer manager?

 MODULE 2: DECISION-MAKING

NAME: SCORE:
COURSE AND YEAR: DATE:

Questions:

1. Can the engineer manager avoid making management decision? Why or Why not?

2. When a problem becomes apparent and the engineer manager chooses to ignore it, is he
making a decision?

3. Why is proper diagnosis of the problem important?

4. What are the components of the environment from the point of view of the decisionmaker?
What do they consist of?

5. How may one develop viable alternatives in problem solving?

6. How may alternative solutions be evaluated?

7. Why is it important for those who will be involved in implementation to understand and
accept the solution to the problem?

8. What are the approaches in solving problems?

9. What quantitative techniques are useful in decision-making?

 MODULE 3: PLANNING TECHNICAL ACTIVITIES

NAME: SCORE: COURSE AND YEAR: DATE:

Questions:

1. Why is planning an important activity for engineer managers?

2. How may "planning" be defined?

3. What planning activities are undertaken at various management levels?

4. What are the steps in the planning process?

5. What are the types of plans? How may they be classified?

6. What is a production plan? What are its components?

7. What is a budget?

8. What is meant by "company mission"?

9. What are the barriers to planning?

10. What may be used as aids in planning?

 MODULE 4: ORGANIZING TECHNICAL ACTIVITIES

NAME: SCORE:
COURSE AND YEAR: DATE:

Questions:

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

2. How may organizing be defined?

3. What purpose do organizational structures serve?

4. What must be the concern of the engineer manager when structuring the organization?

5. What is the purpose of the formal organization?

6. What are informal groups? Why are they formed?

7. What are the types of organizational structures? How may they be distinguished?

8. What is meant by "line authority"? By "staff authority"?

9. Distinguish "personal staff" from "specialized staff".

10. What are committees? How ma they be classified?