Module 1

What is Engineering Management?

 A specialized form of management essential for leading engineering personnel and

projects.
 Involves functional and project management.
 Duties include:
o Overseeing engineering and construction projects.
o Providing leadership to teams.
o Identifying costs and budgeting for projects.
o Delegating tasks and inspecting project results.

Definitions of Management

 Management is universally defined as the process of leading resources to achieve goals.

 Key definitions include:
o Urwick: The art of directing human activities.
o ILO: Continuous coordinated activities to conduct business.
o Lawrence A. Appley: Guiding resources to achieve objectives with morale.
o ASME: Organizing and directing human efforts for societal benefit.
o Rue & Byars: Guidance towards organizational goals.
o Pearce and Robinson: Optimizing contributions to achieve goals.
o Mary Parker Follett: Getting things done through others.

Functions of Management

1. Planning
o Involves advance decisions regarding objectives and methods to achieve them.
o Key activities include:
 Self-appraisal.
 Environmental study.
 Goal specification and resource forecasting.
 Revision of plans as needed.
2. Organising
o Translating plans into a structured task authority and responsibility framework.
o Includes:
 Job definition.
 Grouping jobs.
 Delegating authority.
3. Directing and Motivating
o Stimulating actions toward goals via:
 Communication of objectives.
 Assigning performance standards.
 Providing guidance and rewards.
  Managing change through effective communication.
4. Controlling
o Measuring performance against goals and taking corrective actions.
o Involves:
 Establishing performance standards.
 Identifying gaps in performance.
 Implementing corrective actions.

Types of Management

 Top Management: Strategic focus, less involvement in directing.

 Middle Management: Facilitates continuous improvement.
 Lower Management: Focused on directing and implementation.

Role of the Manager

 Organizing, supervising, and controlling to achieve productive outcomes.

 Managers combine talents and energy with resources to meet organizational objectives.
 Mintzberg’s Managerial Roles:
o Interpersonal: Figurehead, Leader, Liaison.
o Informational: Monitor, Disseminator, Spokesperson.
o Decisional: Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator.

Knowledge Leadership and Change Management

 Knowledge Leadership: Building expertise and sharing knowledge within teams.

 Change Management: Emphasizes continuous improvement, benchmarking, and re-
engineering as modes of change.

The Management Challenge

 Balancing control over processes while leading and inspiring change.

 Organizations must adapt to customer demands and market changes.
 Emphasis on flexibility, creativity, and innovation.

Management as a Science

 Modern management views measurement as critical, but acknowledges the

unpredictability of human behavior.
 Managers must balance numerical data with practical decision-making.
 Management is seen as a dynamic field influenced by social sciences.
Module 2

1.1 What is Decision Making?

 Definition: Decision-making is the process of choosing a course of action from alternatives to

achieve objectives, often iterative and requires learning from experience.
 Importance: Vital for organizational functioning; every manager makes numerous decisions
continuously.
 Steps in the Decision-Making Process:
1. Define the problem.
2. Gather information and data.
3. Develop and weigh options.
4. Choose the best option.
5. Plan and execute.
6. Follow up.

1.2 Decision Making in an Organizational Context

 Attributes: Requires complete and accurate information; the ability to synthesize information is
crucial.
 Consequences of Poor Decisions: Examples include failures of major companies due to lack of
strategic decision-making.
 Authority: Decision-makers must have the legitimacy and authority over the impacted groups.

Individual Decision Making - Pros and Cons

 Pros:
o Quick and accountable decisions.
o Saves time, money, and energy.
o More focused and rational.
 Cons:
o Limited information compared to group decision-making.
o Potential lack of diverse perspectives.

1.3 The Process of Corporate Decision Making

 Types:
o Top-Down: Decisions made by higher management and passed down.
o Bottom-Up: Decisions made by middle and line managers based on local conditions.
 Middle Management: Critical for implementing decisions and ensuring communication.

1.4 The OODA Loop and Decision Making

 OODA Loop: Observe, Orient, Decide, Act; a framework for agile decision-making, especially in
dynamic environments.
  Feedback: Integral to all stages of the OODA loop, ensuring adaptability.

1.5 Detailed Explanation of the OODA Loop

 Application: Effective in situations requiring quick decisions, such as corporate meetings or

competitive environments.
 Importance of Intuition: Relying on gut feelings and emotional intelligence is often necessary.

1.6 Decision Making: Hierarchy's Impact

 Challenges of Hierarchy: Layers can hinder implementation and decision-making effectiveness.

 Decentralization: Giving autonomy to lower management enhances engagement and decision
quality.

1.7 Decision Making in Self-Directed Teams

 Autonomy: Self-directed teams can make operational decisions, but tension may exist with
senior management over control.
 Balance: Sufficient autonomy should be given while retaining strategic oversight.

1.8 Top Down vs. Bottom Up Decision Making

 Comparison:
o Top-down is less effective for day-to-day operations but necessary for strategic
decisions.
o Bottom-up is better for operational matters, leveraging ground-level insights.

Part II: Organization Planning, Design, and Development

2.1 Introduction

 Definition: Organizations are formed for shared objectives through collaborative efforts.
 Key Components: Individuals, shared objectives, and coordinated decision processes.

2.2 Principles of Healthy Organization

1. Organizational Objective: Clear and consistent objectives.

2. Division of Work: Specialization for efficiency.
3. Authority and Responsibility: Balance between authority and accountability.
4. Functional Task: Clear roles for employees.
5. Scalar Chain: Continuous authority line from top to bottom.
6. Unity of Command: Each subordinate has only one boss.
7. Balance: Maintain equilibrium in organizational structures.
8. Flexibility: Adaptability in design.
9. Delegation: Empower subordinates for results.
10. Efficiency: Maximize outputs with minimal inputs.
 11. Continuity: Focus on long-term goals.
12. Cooperation: Foster teamwork and conflict resolution.
13. Coordination: Ensure alignment toward corporate goals.
14. Span of Control: Limit number of direct reports for effective supervision.

2.3 Organization Planning

 Purpose: Define structure to achieve objectives and manage resources.

 Techniques:
1. Organization Analysis: Evaluate objectives and activities.
2. Organization Design: Define structure and roles.

2.3.1 Organization Analysis Components:

1. Objectives: Understand clarity at all levels.

2. Activities: Identify necessary work for objectives.
3. Decisions: Analyze decision-making authority.
4. Relationships: Assess interactions within the organization.
5. Organization Structure: Evaluate activity grouping and management levels.
6. Job Structure: Clarify roles and responsibilities.
7. Organization Climate: Understand the working atmosphere.
8. Management Style: Identify the approach to management.

Module 3

Part 1: Planning Technical Activities

Nature of Planning

 Importance of Planning: Minimizes mistakes and provides a methodological approach to

achieve desired results.

Planning Defined

 Definition:
o Planning is anticipating future trends to achieve organizational objectives (Nickels).
o It involves selecting and ordering tasks to meet organizational goals (Aldag and Stearns).
o It includes deciding what, who, where, when, and how tasks will be completed (Cole and
Hamilton).

Planning at Various Management Levels

1. Top Management: Strategic Planning - focuses on major goals and resource strategies.
2. Middle Management: Intermediate Planning - supports strategic plans with contributions from
sub-units.
3. Lower Management: Operational Planning - details specific tasks to support the other planning
levels.
The Planning Process

1. Setting Goals: Provides direction; goals should be precise and quantifiable.

2. Developing Strategies: Long-term actions to achieve goals (top management).
3. Determining Resources: Identify human and nonhuman resources needed.
4. Setting Standards: Establish quantitative or qualitative measures for performance.

Types of Plans

 Functional Area Plans: Include marketing, production, financial, and human resource plans.
 Time Horizon:
o Short-range: Less than a year (first-line supervisors).
o Long-range: More than a year (middle and top management).
 Frequency of Use:
o Standing Plans: Used repeatedly, includes policies, procedures, and rules.
o Single-use Plans: Developed for unique situations, includes budgets, programs, and
projects.

Parts of Various Functional Area Plans

 Marketing Plan: Executive summary, situational analysis, objectives, strategies, budget.

 Production Plan: Capacity, employee needs, material purchases.
 Financial Plan: Current financial analysis, sales forecasts, budgets.
 Human Resource Plan: Personnel needs, recruitment, training, retirement plans.
 Strategic Plan: Mission statement, objectives, and strategies.

Making Planning Effective

 Barriers to Planning: Recognize barriers like manager's inability, improper processes, and lack
of commitment.
 Aids to Planning: Gather information, involve others, and develop multiple information sources.

Part 2: Organizing Technical Activities

Organizing Defined

 Definition: Organizing is structuring resources to accomplish objectives efficiently.

The Purpose of Structure

1. Defines relationships between tasks and authority.

2. Clarifies formal reporting relationships.
3. Groups individuals into departments for efficiency.

Formal Organization

 Structure: Details lines of responsibility and authority.

 Tools: Organization charts, manuals, and policy documents.
Informal Groups

 Formed spontaneously for friendship; can aid in task accomplishment but may create
management challenges.

Types of Organizational Structures

1. Functional Organization: Groups employees by function.

o Advantages: Economies of scale, centralized decision-making, excellent communication.
o Disadvantages: Poor inter-department communication, delayed decisions, limited
employee motivation.
2. Product or Market Organization: Divisions based on products or markets.
o Advantages: Flexibility, customer focus, clear responsibility.
o Disadvantages: Resource duplication, less specialization, poor inter-division
coordination.
3. Matrix Organization: Dual reporting structure (functional and project managers).
o Advantages: Efficient resource use, flexibility, interdisciplinary cooperation.
o Disadvantages: Confusion from dual authority, conflict, and need for strong human
relations skills.

Types of Authority

1. Line Authority: Direct commands to subordinates.

2. Staff Authority: Advisory role to managers.
3. Functional Authority: Oversight of specialist decisions across departments.

Purpose of Committees

 Definition: Formal groups for specific purposes.

 Types:
o Ad hoc Committees: Temporary for specific tasks.
o Standing Committees: Permanent for ongoing issues.

Part 3: Staffing the Engineering Organization

Staffing Defined

 Definition: Management function determining human resource needs.

Staffing Procedures

1. Human Resource Planning:

o Forecasting: Assess future needs.
o Programming: Set personnel objectives.
o Evaluation and Control: Monitor and evaluate plans.

2. Recruitment: Sources include current employees, ads, schools, and referrals.

 3. Selection: Assess candidates through application, references, interviews, and tests
(physical, psychological).
4. Induction and Orientation: Introduce new employees to the organization.
5. Training and Development:
o Non-Managerial: On-the-job, apprenticeships, special courses.
o Managerial: In-basket, management games, case studies, interpersonal skills training.

6. Performance Appraisal: Various methods like rating scales, management by objectives,

and critical incident methods.
7. Employment Decisions: Includes promotions, transfers, demotions, and separations
(voluntary/involuntary).

Module 4 - Communication & Motivation

Part 1: Communication

Definition of Communication

 Communication: A process of sharing information through symbols, such as words and

messages, occurring between various parties (e.g., superiors, peers, clients).

Functions of Communication

1. Information Function: Provides data for decision-making (e.g., instructions for

equipment use).
2. Motivation Function: Encourages employee commitment to organizational objectives.
3. Control Function: Clarifies roles, duties, and responsibilities through reports and
policies.
4. Emotive Function: Addresses employee emotions to minimize anxiety and improve
performance.

The Communication Process

1. Develop an Idea: Begin with a useful idea.

2. Encode: Convert the idea into suitable symbols for transmission.
3. Transmit: Send the message through appropriate channels (e.g., spoken word, written
materials).
4. Receiver: The intended recipient must be ready to receive the message.
5. Decode: Translate the message into a meaningful form for the recipient.
6. Accept/Reject: The receiver decides whether to accept or reject the message.
7. Use: Important messages are stored for future reference.
8. Provide Feedback: The receiver gives feedback to the sender, though this may not
always occur.
Forms of Communication

1. Verbal Communication:
o Oral Communication: Involves hearing the sender's words.
o Written Communication: Uses written words (e.g., memos, reports, emails).
2. Non-Verbal Communication: Conveys messages through body language, time, space,
and appearance.

Barriers to Communication

1. Personal Barriers: Hindrances arising from the communicator's characteristics (e.g.,

emotions, poor listening).
2. Physical Barriers: Environmental interferences affecting communication.
3. Semantic Barriers: Misunderstandings that occur even when messages are accurately
transmitted.

Overcoming Barriers to Communication

1. Use feedback to enhance understanding.

2. Repeat messages for assurance of proper reception.
3. Utilize multiple channels to ensure accuracy.
4. Employ simplified language for clarity.

Management Information System (MIS)

 Refers to processing information through computers to support managerial decisions,

including transaction processing systems and decision support systems.

Part 2: Motivation

Definition of Motivation

 An inner state that energizes, activates, and directs behavior toward goals.

Measures of Motivation

1. Direction: Choosing among several alternatives.

2. Strength of Behavior: The intensity of motivation.
3. Persistence of Behavior: Consistency in effort over time.

Theories of Motivation

1. Content Theories: Focus on human needs and satisfaction.

2. Process Theories: Emphasize rational behavior based on expected outcomes.
Key Theories

 Herzberg’s Two-Factor Theory:

o Hygiene Factors: Prevent dissatisfaction but don’t enhance satisfaction.
o Motivation Factors: Increase satisfaction significantly.

 Equity Theory: People desire fair treatment relative to others.

 Expectancy Theory: Links effort to expected outcomes, motivating individuals to
achieve goals.