Engineering Economy & Management

By

Mohammad Nasir Khan

Assistant Professor,MED

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Syllabus

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 The Management Process
Planning and
Decision Making Organizing
Setting the organiza-
Determining how
tion ’s goals and
best to group
activities and
deciding how best
resources
to achieve them

Controlling Leading
Monitoring Motivating members
and correcting of the organization
ongoing activities to work in the best
to facilitate goal interests of the
attainment organization

Figure: The Management Process

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 The Management Process (cont’d)

• Planning and Decision Making

• Defining organization’s goals
• Electing a course of action
• Organizing
• Deciding organization structure
• Assign authority and responsibility

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 The Management Process (cont’d)
• Leading
• Motivate members to achieve
organizational goals
• Manager may use
• knowledge, character, and charisma
• Power of granting rewards and
punishments

• Controlling
• Monitoring organizational progress
towards goals

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 Management in Organizations

Planning
and decision Organizing
making
Inputs from the environment
• Human resources Goals attained
• Financial resources • Efficiently
• Physical resources • Effectively
• Information resources

Controlling Leading

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Basic Purpose of Management

EFFICIENTLY
Using resources wisely and
in a cost-effective way
And

EFFECTIVELY
Making the right decisions and
successfully implementing them

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 Efficiency versus Effectiveness

Effectiveness Efficiency
• Ability to achieve pre- • Best use of resources for
determined objectives production of goods/services

• Managers and employees • Outcome is judged on the

are appraised against the quality and quantity of
organizational and product/service
departmental objectives

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Managers Vs. Non-Managerial Employees
• Non- Managerial employees
• Work directly on the task
• Not responsible for overseeing others work

• Managers
• Direct and oversee activities of other employees

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 Manager
• A person in charge of a certain group of tasks /
employees
• Primary responsibility is to carry out the management
process
• Often has a staff of people who report to him/her

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Kinds of Managers by Level and Area

Levels of Management

Top managers

Middle managers

First-line managers

Areas of Management
Figure 1.1
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 Kinds of Managers by Level
• Top Managers
• Establish organization’s goals, strategy, and operating policies
• Represent organization in external environment
• Middle Managers
• Largest group of managers
• Implement policies and plans of top managers.
• Supervise and coordinate the activities of lower-level managers
• First-Line Managers
• Supervise and coordinate the activities of operating employees

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 Managers by Area
• Marketing Managers
• Responsible for
• Getting consumers to buy the organization’s
products/services
• New product development, promotion and distribution

• Financial Managers
• Deal with the organization’s financial resources
• Responsible for accounting, cash management and
investment

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 Kinds of Managers by Area
• Operations Managers
• Create and manage the systems that create organization’s
products and services
• Responsibilities: Production, inventory and quality control, plant
layout and site selection

• Human Resource Managers

• Responsible for:
• Human resource planning, recruitment, training and development
• Designing compensation and benefit systems
• Formulating performance appraisal systems

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 Kinds of Managers by Area (cont’d)
• Administrative/General Managers
• Familiar with all functional areas of management
• Not associated with any particular management specialty

• Other Kinds of Managers

• Specialized managerial positions directly related to the needs of
the organization
• Examples:
• Public relations manger
• Research and development manager

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Managerial Roles

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Managerial Roles: Interpersonal

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Managerial Role: Informational

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Managerial Roles: Decisional

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 Skills and
the Manager

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 Fundamental Management Skills

• Technical Skills
• An in depth understanding of the work being done in
an organization ( Training and troubleshooting for subordinates)
• Knowledge and proficiency in a specific field
• Interpersonal Skills
• Ability to communicate with, understand, and motivate
individuals and groups

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 Fundamental Management Skills
• Conceptual Skills
• Must have a a holistic view of the workings of the
organization
• Allows broad-based decisions

• The ability to think and conceptualize about abstract

and complex situations concerning the organization

• Diagnostic Skills
• Ability to visualize the most appropriate response to a
situation

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 Fundamental Management Skills (cont’d)
• Communication Skills
•Convey and receive ideas/information
• Decision-Making Skills
•Recognize / define problems and
opportunities
•Select an appropriate course of action
• Time-Management Skills
•Prioritize work
•Delegate appropriately
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 Fundamental Management Skills
• Management Skill Mixes at Different
Organizational Levels

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 Management: Science or Art?
• The Science of Management
• Assumes that problems can be approached using rational,
logical, objective, and systematic ways.
• Requires technical, diagnostic, and decision-making skills and
techniques

• The Art of Management

• Decisions are based on a blend of intuition, experience, instinct,
and personal insights
• Requires conceptual, communication, interpersonal, and time-
management skills

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 Quantitative Management Perspective
(cont’d)

• Management Science
• Focuses on the development of representative
mathematical models to assist with decisions

• Operations Management
• Practical application of management
science to efficiently manage the
production and distribution
of products and services.

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 Self Assessment
• For the next 4 slides, rate your skills as a manager by choosing the most
appropriate response and scoring as follows:
• 5 Definitely true of me
• 4 Probably true of me
• 3 Neither true nor not true, or undecided
• 2 Probably not true of me
• 1 Definitely not true of me

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 Self Assessment
Section 1: Planning
1.I prepare an agenda for meetings.
2.I try to anticipate what will happen in the future as a result of my current actions
and decisions.
3.I establish clear goals for myself and others.
4.I carefully analyze the pros and cons involved in situations before reaching
decisions.
5.I am quite willing to try new things, to experiment.
6.I have a clear vision for accomplishing the task at hand.
7.I put plans in writing so that others can know exactly what they are.
8.I try to remain flexible so that I can adapt to changing conditions.
9.I try to anticipate barriers to goal accomplishment and how to overcome them.
10.I discuss plans and involve others in arriving at those plans.
Section 1 Total

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 Self Assessment
Section 2: Organizing
1.I try to follow the plan while working on the task.
2.I try to develop any understanding of the different steps or parts needed to
accomplish the task at hand.
3.I evaluate different ways of working on the task before deciding on which course
of action to follow.
4.I have a clear sense of the priorities necessary to accomplish the task.
5.I arrange for others to be informed about the degree of progress in accomplishing
the task.
6.I am open to alternative, even novel, ways of working on the task.
7.I adapt the sequence of activities involved if circumstances change.
8.I have a clear sense of how the steps involved in accomplishing the task should be
structured.
9.I lead or follow where appropriate to see to it that progress is made toward
accomplishing the task.
10.I coordinate with others to assure steady progress on the task.
Section 2 Total
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 Self Assessment
Section 3: Leading
1.I set an example for others to follow.
2.I am effective at motivating others.
3.I try to keep a balance between getting the work done and keeping a spirit of
teamwork.
4.I try to handle conflict in nonthreatening, constructive ways.
5.I help others in the group and provide them with guidance and training to better
perform their roles.
6.I am open to suggestions from others.
7.I keep everyone informed about the group’s activities and progress.
8.I show a genuine interest in the work of others.
9.I am considerate when providing constructive suggestions to others.
10.I understand the needs of others and encourage their initiative in meeting those
needs.
Section 3 Total

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 Self Assessment
Section 4: Controlling
• I regularly assess the quantity and quality of progress on the task at hand.
• I try to assure that the information I have is timely, accurate, complete, and
relevant.
• I routinely share information with others to help them accomplish their tasks.
• I compare progress with plans and take corrective action as warranted.
• I manage my time and help others to manage theirs.
• I have good sources of information or methods for obtaining information.
• I use technology (computers, tablets, smartphones, etc.) to aid in monitoring
progress and communicating with others.
• I anticipate possible negative reactions and take action to minimize them.
• I recognize that fixing problems before they occur is better than fixing
problems after they occur.
• I try to balance my attention on the many different steps needed to
accomplish the task at hand.
Section 4 Total:

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 HOW DO I RATE AS A MANAGER?
Your Total Score for each section provides you with a general
evaluation of your performance on that function.

• If your Total Score on a section is 40–50, you are doing quite well.

• A score of 30–40 suggests the need for some improvement.

• A score of less than 30 suggests a strong need for improvement.

• At the end of the course, if you have participated in any group

activities in which you incorporated any of these areas, take this
assessment again to see if your score has improved.

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 Thanks
Any Question Please

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