01-INTRODUCTION-TO-ENGINEERING-MANAGEMENT

1. INTRODUCTION TO
ENGINEERING
MANAGEMENT

2. INTRODUCTION TO ENGINEERING MANAGEMENT
• The word “Management” originates from Old French
ménagement “the art of conducting, directing”, and from
Latin manu agere “to lead by the hand”
• The process of achieving organizational goals by
engaging in the four major functions of planning &
decision-making, organizing & staffing, directing/leading,
and controlling.
MANAGEMENT

3. INTRODUCTION TO ENGINEERING MANAGEMENT
• Identifying a “force”/group of people whose job is to
direct the effort and activities of other people towards a
common organizational objective.
• The performance of conceiving and achieving desired
results by means of group effort consisting of utilizing
resources, that will determine the success and failure of
an organization.
MANAGEMENT

4. INTRODUCTION TO ENGINEERING MANAGEMENT
Engineering management is a specialized form of
management concerned with the application in
engineering, as a result of the unique personalities and
technical nature of engineering
ENGINEERING MANAGEMENT

5. INTRODUCTION TO ENGINEERING MANAGEMENT
Engineering management refers to the functional
management of technical professionals. Example areas of
engineering are product development, manufacturing,
construction, design engineering, industrial engineering,
technology, production, or any other field that employs
personnel who perform an engineering function.
ENGINEERING MANAGEMENT

6. WHY IS ENGINEERING
MANAGEMENT IMPORTANT?

7. WHY IS ENGINEERING MANAGEMENT IMPORTANT?
1. Engineering Management teaches engineers to “Speak
Business”
2. Engineering Management teaches engineers to be more
collaborative
3. Engineering Management teaches engineers to be
business leaders
4. Engineering Management creates new career
opportunities
5. Engineering Management strengthens the skills of
entrepreneurial engineers

8. PRINCIPLES OF MANAGEMENT

9. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
Fayol developed theory of management. According to him
managerial excellence is a technically ability and can be
acquired. He developed theories and principles of
management which are universally accepted and make him
universalistic. He was pioneer of the formal education in
management. Fayol's principles of management meet the
requirements of modern management

10. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
According to Fayol management was a separate and
distinct skill from other business function. He also felt that
management skills had been the most neglected aspect of
business operations. Fayol developed fourteen general
principles of managements. According to him these
principles can be applied in all types, functions, levels and
size of organizations.

11. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
1. DIVISION OF WORK
This is the principle of specialization which applies to all
kinds of work. The more people specialize, the more
efficiently they can perform their work. Specialization
increases output by making employees more efficient.

12. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
2. AUTHORITY AND RESPONSIBILITY
According to Fayol responsibility is a corollary and a
natural consequence of authority. Responsibility implies an
obligation to perform the task in a satisfactory manner.

13. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
3. DISCIPLINE
Good discipline is the result of effective leadership a clear
understanding between management and workers
regarding the organization’s rules and the judicious use of
penalties for violation of the rules.

14. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
4. UNITY OF COMMAND
Every employees should receive order and instruction from
only one superior. Dual command is a perpetual source of
conflict. If a person receives order from more than one
superior, it will lead to confusion and chaos.

15. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
5. UNITY OF DIRECTION
This principle calls for one manager one plan for all
operations having the same objectives. This principle when
applied properly, ensure unity of action and facilitates
coordination.

16. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
6. SUBORDINATION OF INDIVIDUAL INTEREST TO THE
GENERAL INTERESTS
The interest of the organization is above the individual and
the group. This can be achieved when manager set an
example through their exemplary behavior. They must be
prepared to sacrifice their personal interest whenever such
interest are in conflict with the organizational interest.

17. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
7. RENUMERATION
Workers should be paid a fair wages for their service. The
method of wage payment should provide maximum
possible satisfaction to both employees and employer.

18. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
8. CENTRALIZATION
Everything that goes to increase the subordinate role is
decentralization, everything which goes to reduce it is
centralization. Whether decision making is centralized (to
management) or decentralized (to subordinates) is a
matter of proper proportion. The problem is to find the
best amount of centralization in each case.

19. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
9. SCALAR CHAIN HIERARCHY
The graded chain of authority from top to bottom through
which all communication flow is formed the “Scalar Chain”.

20. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
10. ORDER
People and material should be in the right place at the
right time. A place for everything and everything in its
place.

21. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
11. EQUITY
Manager should be both friendly and fair to their
subordinates. Employer should be justice and kind to
promote better relation between employees and employer.

22. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
12. STABILITY OF TENURE OF PERSONNEL
Management must implement practice which encourages
long term commitment of employees. Instability of tenure
can significantly affect the fortunes of a company.

23. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
13. INITIATIVE
Employees must be encouraged to think and implement a
plan of action even through some mistake may result. The
opportunity to perform independently is an essential
component of employee growth and development.

24. HENRY FAYOL’S PRINCIPLES OF MANAGEMENT
14. SPIRIT OF COOPERATION
This principle states that “Union is Strength”. Fayol defined
esprit de corps as unity of effort through harmony of
interest. Promoting team spirit will give the organization a
sense of unity.