Engineering Management, Chapter 1

1. Engineering
Management
IE 422

2. General Objectives:
O To discuss and understand the
fundamental concepts and philosophy of
management
O To become effective manager
O To provide the student with an elementary
knowledge of the functions and process
management work
O To provide the student with a knowledge
of the functions and process of
management work

5. THE SPEED OF THE CANOE
DOESN’T COME FROM ITS
WOOD, BUT FROM THE
PILOT’S SKILLS AND WIND
DIRECTIONS

6. Management
• It denotes both a function and the people who
discharge it. It also denotes a social position and
authority, but also a discipline and a field of
study. (Drucker, 1977)
• It’s a process by which a cooperative group
directs action toward common goals (Massie
1964)
• Its getting things done through other people
(Massie 1964)

7. Management
• It is unifying and coordinating activity
which combines the actions of
individuals into meaningful and
purposeful group endeavor (Mahoney
1961)
• It’s a technique by means of which the
purposes and objectives of a particular
human group are determined clarified
and effectuated (Petersen et al, 1962)

8. Management
• Identified with the direction of
individuals and functions to achieve
ends previously determined (Piffner et
al 1953)
• It’s the accomplishment of desired
objectives by establishing an
environment favorable to performance
by people operating in organized group
(Koontz 1964)

9. Management
• It’s a distinct process consisting of
planning, organizing, actuating and
controlling, performed to determine
and accomplish the objectives by the
use of people and resources (Terry
1982)
• Management is task. Management is a
discipline, But management is also
people (Drucker, 1977)

10. Management
• Identified with the direction of
individuals and functions to achieve
ends previously determined (Piffner et
al 1953)
• It’s the accomplishment in desired
objectives by establishing an
environment favorable to performance
by people operating in organized group
(Koontz 1964)

11. Management
• It’s a distinct process consisting of
planning, organizing, actuating and
controlling, performed to determine
and accomplish the objectives by the
use of people and resources (Terry
1982)
• Management is task. Management is a
discipline, But management is also
people (Drucker, 1977)

30. Dimensions of Management
• To think through and define the specific
purpose and mission of the institution,
whether business enterprise, hospitals
or university
• To make work productive and the
worker achieving
• To manage social impact and social
responsibilities
(Drucker, 1977)

31. Organization
• Social group of individuals deliberately
created and maintained for the purpose
of achieving specific objectives
• Generally, organizations may be
classified into private, public, church or
military.
(Drucker, 1977)

32. Management as an ART and SCIENCE
• Management is an art because its applying skills
and knowledge and accomplishing an end
through deliberate efforts.
• Management is a science because it involves
seeking new knowledge through the use of
rigorous method of collecting data, classifying
and measuring it, setting up hypotheses, and
testing those hypotheses.

33. • Frederick Taylor who is regarded as the
“father” of scientific management
stressed the “need for developing
mutuality of interests between
management and labor, a harmonious
cooperation and that in all problems of
management the human element is the
most important one”
(Koontz et all, 1981)

34. • Henry Gantt emphasized the
importance of time and cost in planning
and controlling work and from this he
developed a management technique for
management information. This is
popularly referred to now as the Gantt
Chart and is said to be forerunner of the
PERT

35. • The scientificity of management has been
further enhanced by the contribution of Frank
Gilbreth who introduced motion studies; Karl
Person, who developed management statistical
techniques; Mary Parker Follet, who
emphasized the value of human relations to the
basic principles of organizations; Chester
Barnard, who stressed the sociological aspects
of management and D.B. Dantzig, who
developed the basis for the practical application
of linear programming.

36. • Henri Fayol, regarded as the “father” of modern
management, suggested that all activities in an
industrial undertaking may be divided into
groups, namely:
• Technical (production, manufacture,
adaptation)
• Commercial (buying, selling, exchange)
• Accounting (stocktaking, balance sheet,
costs, statistics)
• Managerial (planning, organization,
command, coordination, control)

37. • To forecast and plan (examining the future and
drawing up the action plan)
• To organize (building up the structure, material
and human, of the undertaking)
• To command (maintaining activity among the
personnel)
• To coordinate (binding together, unifying, and
harmonizing all activities efforts)
• To control (seeing that everything occurs in
conformity with the established rule and
expressed command)
Elements of Management

38. • Contigency Response
• Managers are made managers because they are
expected to go into action when needed.
• This means they must have the ability to cope
with potential or actual threats to the business
• They must respond quickly to risks with
contingency or standby plans or quick action
borne from experience or right hunches
What Managers Really Do

39. • Uncertainty Reduction
• Managers are also made managers because they
are expected to reduce uncertainties, risks or
threats to the business
• They are capable of changing the organization
with purpose and deliberate actions
• They reduce the unknowns
What Managers Really Do

40. Patterns of Management
Analysis

41. • This school analyzes management through
experience. It heavily uses cases in its study of
management.
• As a study of experience, it draws
generalization but usually as a means o
teaching experience, to the practitioner or to
the student.
The Empirical School

42. • This school considers management as a series
of decisions and the analysis of decisions as the
central function of management.
• It concentrates on the development of rational
decision-making in organizations- selection
from possible options of a course of action.
• The school emphasizes the importance of the
decision itself, the person or group making the
decision, and the process of decision-making.
The Decision Theory School

43. • This school considers management as a system
of mathematical models and processes.
• It expresses management problems into goals
and objectives and derives factor relationship
and combinations which could possibly
optimize the stated goal or objective if the
organization
The Mathematical School

44. • A system may be defined as a set of interacting
elements bound together by a common
objective and operating within a given
environment.
• It looks management as a system operating
within an internal and external environment
• Management is viewed to be divided and
composed of subsystem such as systems of
planning, organizing, controlling, budgeting,
staffing, monitoring, decision-making.
The Systems School

45. • The school analyzes management from the
standpoint of interpersonal relations
represented by human relations, leadership,
and behavioral sciences.
• This school is anchored on the belief that
management is founded on delegation, that is,
“getting things done through others.”
The Human Behavior School

46. The Hawthorne Effect
O The result of an experiment conducted at the
Hawthorne plant of Western Electric in Cicero,
Illinois in 1924. They lowered the lighting in
the factory, expecting productivity to fall; but
instead, to their astonishment, productivity
increased.
O The researchers concluded that productivity
rose because workers worked harder when
they received attention. This phenomenon, in
which change of any kind increases
productivity, has been known as the
“Hawthorne Effect.”

47. The Social System School
O This school looks at management as a social
system and consider the organization
primarily as a social organism subject to
pressures and conflicts which come from
the social environment.
O Its basic tenets include the concepts of
cooperation, adaptation, segregation, and
differentiation

48. The Socio- Technical System School
O It was E.L. Trist (1951) of the British
Tavistock Institute who developed this
school. In his studies of the production
system of coal mining, he found out that the
cooperative social system was not enough
to solve the problems of productivity.
Instead, the fitting of the technical system in
the production and the behavioral system of
the workers was necessary.

49. The Situational School
O Also known as the Contingency Approach, this
school emphasizes the fact that the practice of
management depends upon a given set of
circumstances.
O This school has largely contributed to the
development of such management approaches as
brand management in marketing, product
management in pharmaceuticals, account
management in banking, client management in
service organizations, and project management in
engineering and development of undertakings

50. The Managerial Roles School
O Popularized by Henry Mintzberg of McGill
University, this school focuses on the activities
or roles that a managers do in organization.
Mintzberg (1973) analyzed the roles and
activities of five chief executives and came to
the conclusion that managers do not really act
on the basis of the classical functions of
management but instead engage in various
roles but which may be summarized into three,
namely: (1) interpersonal roles, e.g leader, (2)
informational roles, e.g communicator; and (3)
resource allocator, e.g, entrepreneur

51. The Operational School
O This school consider management as a
universal process and analyzes management
through the functions of management namely,
planning, organizing, staffing, directing,
motivating, and controlling.
O It draws together the concepts, principles,
theories, and techniques of management
through the actual practice of management in
organization

52. O In general, there is no single effective school
of management, although one approach
may appear to be useful in solving a number
of problems in a number of management
situations. It is essential to remember that
each schools has its own strong and weak
points. It is therefore advisable to be
equipped with knowledge of the battery of
schools in order to be wholistic and
integrative in perspective.

53. O If the central element in organization is
management, the central character in
management is the manager. Drucker has
considered the manager as the dynamic
element in every business organization.
O Manager does not practice management in a
vacuum. He operates within an internal and
external environment.
The Manager and His Environment

54. O The internal environment which includes
both physical and non-physical factors are
controllable by the manager in a relative
sense
O The external environment in which the
manager also interacts is more complex.
O The interaction of the manager with the
external environment is premised on the ff:
The Manager and His Environment

55. O The organization being managed draws various
kinds of inputs from the environment such as
human, capital, managerial, materials,
technology and other resources
O The organization services market demands and
protects legitimate rights of interested parties
such as employees, consumers, suppliers,
investors, the government, among others
O The organization affects the environment
conversely as the environment affects the
organization
The Manager and His Environment

56. O Economic Environment
O The economic system itself constitutes the
economic environment.
O The demand, supply and prices of commodities,
products, and other inputs generally are the
major concerns of the manager in the economic
environment.
O Most of the tactical and strategic decisions of the
manager hinge on rents or costs of land, wages of
labor, interest rates of capital or money, costs of
rated of energy, costs of materials and machines,
among others
External Environment on the other
hands may be summarized as follows:

57. O Technological Environment
O Technology is referred to as “ the sum total of
knowledge we have of ways to do things” (Koontz
et al, 1981)
O It includes inventions, techniques, and the vast
store of organized knowledge about everything.
But its main influence is on ways of doing things,
on how we design, produce, distribute, and sell
goods as well as services
O The real impact of technology is on new products,
new processes, new machines, new tools, new
materials, and new services.
External Environment on the other
hands may be summarized as follows:

58. O Social Environment
O The social environment is made up of
attitudes, desires, expectations, degrees of
intelligence and education, beliefs and
customs of people in a given group or
society
O At present, the social environment is a factor
that managers cannot easily dispense with.
In fact modern managers have to take this
factor seriously.
External Environment on the other
hands may be summarized as follows:

59. O Political Environment
O The political environment is intertwined
with the social environment but the two can
be conceptually differentiated.
External Environment on the other
hands may be summarized as follows:

60. O Crusading Stage
O This is the stage of startups and the
beginning of the movements
O It may begin with a charismatic leader
capable of mobilizing forces from the
countryside or from the urban poor or a
combination of both
O It may be a people’s movement without any
apparent singular leader in the beginning
until one emerges from the conflict
Management of Revolution

61. O Popular Movement Stage
O The charismatic leader and his movement
must now become populist and involve the
largest number of people possible
O They zero in active supporters, optimizing
their participation, go after potential
followers, and either ignore or confront the
opposition directly or indirectly
Management of Revolution

62. O Managerial Stage
O As the movement moves into a position of
advantage against all oppositionists, it must
be settle down into a purposeful large-scale
organization for change
O It must be managed
O The leader and the followers, and their army
of supporters must have unity of action
backing up their unity of goal
Management of Revolution

63. O Bureaucratic Stage
O This is the last phase of the cycle when the
leaders and cadre revolutionary movement
have totally transformed themselves from
high-spirited crusaders in the first stage to a
very large, heavy and cumbersome
bureaucracy.
Management of Revolution