LESSON 1: MANAGEMENT AND ORGANIZATION

GOODS OR SERVICES?
ENGINEERING
GOODS
 The profession in which a knowledge of the
mathematical and natural sciences gained by  Are physical items that include raw materials, parts,
study, experience, and practice is applied with subassemblies, and final products.
judgment to develop ways to utilize economically,  Automobile
the materials and forces of nature for the benefit of  Computer
mankind. (Accreditation Board for Engineering  Oven
and Technology-ABET)  Shampoo

MANAGEMENT SERVICES
 The process of coordinating human, informational,  Are activities that provide some combination of time,
physical and financial resources to accomplish location, form or psychological value.
organizational goals.  Air travel
 Education
ENGINEERING  Haircut
 The supervision of groups of engineering  Legal counsel
researchers, engineering functions, engineering
design activities, the application of quantitative THE OPERATIONS FUNCTION
methods and techniques to the practice of
management
 Management of engineering activities which are
characterized by technical complexities associated
with risks and uncertainties, special tools and
techniques which require unique skills, dynamic
environment (changes), and technology which is a
key element in an engineering organization

CHALLENGES TO ENGINEERING
Complex tasks Time Driven
Limited Innovation and INPUTS PROCESS OUTPUTS
Resources/Resource Creativity / Limited Land Process High Goods
Competition Rewards Human:  Cutting, Percentage
Changing Technology Uncertainty and Risks  Physical/  Drilling  Houses
Obsolescence Matrix Leadership Intellectua  Transportin  Automobiles
l g  Clothing
OPERATIONS MANAGEMENT  Capital  Teaching  Computers
Raw Materials  Farming  Machines
 Operations
 Energy  Mixing  Televisions
 The part of a business organization that is
 Water  Packing  Food products
responsible for producing goods or services  Metals  Copying,  Textbooks
 How can we define operations management?  Wood  faxing  CD Players
 The management of systems or processes Equipment
that create goods and/or provide services  Machines High Service
 Computers Percentage
Activities that relate to the creation of goods and  Trucks  Health care
services through the transformation of inputs to  Tools  Entertainment
outputs. Facilities  Car repair
 Scheduling of activities  Hospitals  Delivery
 Ordering & managing of supplies  Factories  Legal
 Retail  Banking
 Selecting & maintaining equipment
Stores  Communicatio
 Motivating employees
 Processing/assembly of products n
 Quality Control
 TYPES OF OPERATION LEVELS OF MANAGEMENT
Illustration of the transformation process

 Goods Producing
 Farming, mining, construction, manufacturing,
power generating
 Storage/ Transportation
 Warehousing, trucking, mail service, moving,
taxis, buses, hotels, airlines
 Exchange
 Retailing, wholesaling, financial advising,
renting or leasing, library loans, stock WHERE DO MANAGERS WORK?
exchange
ORGANIZATION
 Entertainment
 Films, radio, television, plays, concerts,  A deliberate arrangement of people to accomplish
recording some specific purpose (that individuals
 Communication independently could not accomplish alone)
 Newspapers, radio & TV newscasts,
telephone, satellites, internet
COMMON CHARACTERISTICS OF
 Have a distinct purpose (goal)
WHO ARE MANAGERS  Composed of people
 Have a deliberate structure
MANAGERS
 Someone who coordinates and oversees the work
of other people so that organizational goals can be
accomplished. (Robbins and Coulter, 2012)

CLASSIFYING MANAGERS
FIRST-LINE
 Lowest level of management
THE CHANGING ORGANIZATION
 Individuals who manage the work of non-
managerial employees who typically are involved
with producing the organization’s products or
servicing the organization’s customers
 Title Examples: supervisors, shift managers, or
department/office managers

MIDDLE-LINE
 Individuals who manage the work of first-line
managers and can be found between the lowest
and top levels of the organization
 Title Examples: regional manager, project leader,
plant manager, or division manager MANAGEMENT: AN ART OR A SCIENCE?

TOP-LINE MANAGERS MANAGEMENT IS AN

 Individuals who are responsible for making  When it refers to the human aspect e.g. social
organization-wide decisions and establishing plans behavior, sensitivity, creativity, varying response to
and goals that affect the entire organization. changes
 Title Examples: executive vice president,
president, managing director, chief operating MANAGEMENT IS A
officer, or chief executive officer  Because it is based on a body of knowledge or
principles
 WHAT IS MANAGEMENT?  Leading
 Working with and through people to
MANAGEMENT accomplish goals.
 Involves coordinating and overseeing work  Motivating, leading, and any other actions
activities of others so that their activities are involved in dealing with people
completed efficiently and effectively (Robbins and  Controlling
Coulter, 2010)  Monitoring, comparing, and correcting
work.
MANAGEMENT CONCERNS  Monitoring activities to ensure that they
are accomplished as planned
EFFICIENCY
 Refers to the relationship between inputs and
outputs
 Managers deal with scarce input resources
(people, money, equipment) and the concern
is efficient use of these resources – “doing
things right” and not wasting resources;  Henry Mintzberg
“getting things done”  a well-known management researcher, studied
actual managers at work
EFFECTIVENESS  concluded that what managers do can best be
 Refers to the achievement of organizational goals ; described by looking at the managerial roles
“doing the right things” they engage in at work
 Managerial roles
 refers to specific actions or behaviors expected
of and exhibited by a manager
WHAT DO MANAGERS DO? CONDITIONS
Management Roles Approach (Henry Mintzberg)
 Interpersonal roles
 involve people (subordinates and persons outside
the organization) and other duties that are
ceremonial and symbolic in nature
WHAT DO MANAGERS DO?
 Figurehead
 Henri Fayol, a French businessman, first proposed  symbolic head; performs routine duties
in the early part of the 20th century that all of legal or social nature
managers perform five functions:  Leader
 Planning  motivation of subordinates, staffing, and
 Organizing training
 Commanding  Liaison
 Coordinating  maintains self-developed network of
 Controlling outside contacts
 Today, these functions have been condensed to  Informational roles
four: planning, organizing, leading, and controlling  involve collecting, receiving, and disseminating
information
 Management Functions (Functional Approach)  Monitor
 Planning  seeks and receives wide variety of
 Defining goals, establishing strategies to internal and external information to
achieve goals, developing plans to develop thorough understanding of
integrate and coordinate activities. organization and environment
 Organizing  Disseminator
 Arranging and structuring work to  transmits information received from
accomplish organizational goals. outsiders or from subordinates to
 Determining what needs to be done, how members of the organization
it will be done, and who is to do it
  Spokesperson
WHAT DO MANAGERS DO? CONDITIONS
 transmits information to outsiders on Skills Approach (proposed by Robert L. Katz)
organization’s plans, policies, actions,  Technical skills
results, etc.  the job specific knowledge and techniques
 Decisional roles needed to proficiently perform work tasks.
 entail making decisions or choices  These skills tend to be more important for
 Entrepreneur first-line managers because they typically are
 searches organization and its managing employees who use tools and
environment for opportunities and techniques to produce the organization’s
initiates improvement projects products or service the organization’s
 Disturbance handler customers.
 responsible for corrective action when  Human skills
organization faces important  the ability to work well with other people
unexpected disturbances  Conceptual skills
 Resource Allocator  the ability to think and conceptualize about
 allocates of organizational resources abstract and complex situations concerning the
 Negotiator organization
 represents the organization at major  managers see the organization as a whole,
negotiations understand the relationships among various
subunits, and visualize how the organization
WHAT MANAGERS ACTUALLY DO? fits into its broader environment
 Interaction
 with others
 with the organization
SKILLS NEEDED AT DIFF’T
 with the external context of the organization
 Reflection
 thoughtful thinking
 Action
 practical doing

NEW MODEL OF MANAGING

 Henry Mintzberg
“Basically, managing is about influencing action. CONCEPTUAL SKILSS
It’s about helping organizations and units to get  Using information to solve business problems
things done, which means action.”  Identifying of opportunities for innovation
 Three Ways  Recognizing problem areas and implementing
1. by managing actions directly (for instance, solutions
negotiating contracts, managing projects,  Selecting critical information from masses of data
etc.),  Understanding of business uses of technology
2. by managing people who take action (for  Understanding of organization’s business model
example, motivating them, building teams,
enhance the organization’s culture, etc.), or COMMUNICATION
3. by managing information that propels  Ability to transform ideas into words and
people to take action (using budgets, goals, actions
task delegation, etc.).  Credibility among colleagues, peers, and
 The manager at the center of the model has two subordinates
roles—framing, which defines how a manager  Listening and asking questions
approaches his or her job; and scheduling, which  Presentation skills; spoken format
“brings the frame to life” through the distinct tasks  Presentation skills; written and/or graphic
the manager does. formats
 A manager enacts these roles while managing
action in the three “planes”: with information, EFFECTIVENESS
through people, and sometimes by taking action  Contributing to corporate
directly. mission/departmental objectives
 Customer focus
  Multitasking: working at multiple tasks in value by integrating economic,
parallel environmental, and social opportunities into
 Negotiating skills its business strategies
 Project management
 Reviewing operations and implementing
CHANGES IMPACTING THE
improvements
EFFECTIVENESS SKILSS
 Setting and maintaining performance standards
internally and externally
 Setting priorities for attention and activity
 Time management

INTRAPERSONAL SKILSS
 Coaching and mentoring skills
 Diversity skills: working with diverse people and
cultures
 Networking within the organization
 Networking outside the organization
 Working in teams; cooperation and commitment WHY STUDY MANAGEMENT
 The Value of Studying Management
MANAGEMENT SKILLS & FUNCTION
 The universality of management
 Good management is needed in all
organizations.
 The reality of work
 Employees either manage or are managed.
 Rewards and challenges of being a manager
 Management offers challenging, exciting and
creative opportunities for meaningful and
fulfilling work.
 Successful managers receive significant
monetary rewards for their efforts.

UNIVERSAL NEED FOR MANAGEMENT

HOW THE MANAGER’S JOB IS

 The Increasing Importance of Customers
 Customers: the reason that organizations
exist
 Managing customer relationships is the
responsibility of all managers and
employees.
 Consistent high quality customer service REWARDS & CHALLENGERS OF BEING A
is essential for survival.
 The Increasing Importance of Innovation
 Doing things differently, exploring new
territory, and taking risks
 Managers should encourage employees
to be aware of and act on opportunities
for innovation.
 Importance of Sustainability to the Manager’s Job
 Sustainable Development
 Sustainability
 a company’s ability to achieve its business
goals and increase long-term shareholder