Name 479 1 pm

References:
Management Fundamentals: Concepts, Applications, Skill Development – Robert N. Lussier
Essentials of Organizational Behavior – by Stephen P Robins
Fundamentals of Process of Management – ABM Rashiduzzaman
Handbook of Reliability Engineering and Management – Ireson, Coombs & Moss
Financial Management – J.K. Shim & J.G. Siegel
Managerial Accounting – R. H. Garrison & E. W. Noreen
Corporate Finance – Stephen A. Ross
NAME-479 Engineering Management
Conducted by:
Cdre M Muzibur Rahman, (E), psc, PhD, BN (Retd)
Cdre Muzib, psc, PhD

Course Outline
Ser Topic Lecture Remarks
1 Principles of Management 1-4
2 Human Resource Management 4-7
3 Class test -1 7 As convenient
4 Organizational Behavior 8-11
5 Marketing Management 12-15
6 Class test-2 15 As convenient
7 Strategic Management 16-20
8 Assignment discussion 20 Case study
9 Financial Management 21-25
10 Time Value of Money 26-28
11 Mid term Exam 29 Theory and Problem
12 Capital Investment 29-36
13 Class Test-3 36 Problem
14 Assignment submission 37 Hand written
15 Management Ethics 37-40
16 Revisions 41-42

What is Management?
Directing the actions of a group to achieve a goal in most efficient manner.
Getting things done through people.
Process of achieving organizational goals by working with and through
people and organizational resources.
The process which performs planning, organizing, staffing, directing and
controlling.
Thus, management is a set of activities directed at an organization’s
resources (human, financial, physical and informational) with the aim
of achieving organizational goals in an efficient and effective
manner.
What to manage? – M4
 Men (technicians, staff, workers, etc)
 Materials (Land, plants, products, equipment, raw materials, tools, etc)
 Moments (Time)
 Money (capitals, costing, pricing, profit, etc)
Part-1: Principle of Management

Management: Origins
Management was originated with just civilization

China
Venetian Egyptian Babylonian Sumerian Chinese
Greek

Management Functions :
Planning (Decision making): Selecting missions and
objectives as well as the actions to achieve them, which
requires decision making.
Organizing: Establishing and intentional structure of roles
for people to fill in an organization.
Leading (Motivating): Influence people, so that they will
contribute to organizational and group goals.
Controlling: Measuring and correcting individual and
organizational performance to ensure that events conform
to plans.

Management Functions
Most managers engage in more than one activity at the same time

Role Differences Between Engineers and Managers
Position Engineer Manager
Focus More concerned with
things technical/scientific
More concerned with
people
Decision making Makes decisions with
much information, under
conditions of greater
certainty
Makes decisions often
with inadequate
information, under
conditions of greater
uncertainty
Involvement Works on tasks and
problems solving
personally
Directs the work of
others to goals
Process outcomes Work based on facts with
quantifiable outcomes
Work based on fewer
facts, less measurable
outcomes
Effectiveness Depends on person
technical expertise,
attention to detail,
mathematical/technical
problem solving, and
decision making
Depends on
interpersonal skills in
communication, conflict,
management, getting
ideas across,
negotiating, and
coaching

Role Differences Between Engineers and Managers
Philosophical Similarities Between Engineering and Management
 Both engineers and managers are trained to be decision makers in a complex
environment.
 Both allocate resources for the operation of existing systems or for the
development of new systems.
 Both have to recognize, identify and evaluate the interactions among system
components.

Engineers Versus Managers
What Engineers Do What Managers Do
Minimize risk Take calculated risks
Emphasize accuracy and mathematical
precision
Rely heavily on intuition, take educated
guesses, and try to be "about right"
Exercise care in applying sound
scientific methods on the basis of
reproducible data
Exercise leadership in making
decisions under widely varying
conditions based on sketchy
information
Solve technical problems based on
their own individual skills
Solve techno-people problems based
on skills in integrating the talents of
others
Work largely through their own abilities
to get things done
Work through others to get things done

Reasons an engineering background can help prepare for a
management position
1. Engineers: logical, methodical, objective, and make unemotional
decisions based on facts;
2. Use their technical knowledge to check the validity of information;
3. Can analyze problems thoroughly, look beyond the immediate ones, and
ask good questions for alternative solutions to technical problems;
4. Understand what motivates engineers/technicians.
5. Can review and evaluate the work of their subordinates since they
understand what they are doing.
6. Can engage in future planning with appropriate consideration for
technology and its relationship to cost effectiveness.
7. Engineering backgrounds help in technical discussions with customers.
8. Their background increases the manager's credibility with subordinates,
customers, and superiors.

Engineering Management needs:
• Objectives
• Resources,
• Methods,
• Organization setting,
• People
Successful engineering managers require training and experience in both
business and engineering for effectiveness and efficiency in problem
solving and operations for the improvement of organization.
Engineering managers are trained to understand human resource
application, finances, industrial psychology, quality control, operations
research and environmental issues.

Characteristics of good managers
Proactive vs. Reactive - visionary and thinking three steps ahead and
working to master own environment with the goal.
Flexible/Adaptable - adapting to new surroundings and situations, doing
the best to adjust timely.
A Good Communicator - highly capable in oral and written communication,
must listen...a lot, and must be willing to understand the needs and desires
of others.
Respectful - treating others with respect, which will earn self respect.
Enthusiastic - motivated and excited about the cause for which people will
be more inclined to follow.
Open-Minded - consider all options when making decisions , evaluate
inputs from all parties and work for the betterment of the whole, not a part.
Rewarding - recognize the efforts of others and reinforce those actions.
Well Educated - Knowledge is power. To be well educated on community
policies, procedures, organizational norms, etc. Further, the knowledge of
issues and information will increase the success in managing others.

Open to Change - willing to change a policy, program, cultural tradition
that is out-dated, or no longer beneficial to the organization as a whole.
Interested in Feedback - How do people feel about? How can you
improve? View feedback as a gift to improve, not a botheration.
Evaluative - constantly evaluate and change programs and policies that
are not working.
Consistent - being consistent. People must have confidence that their
opinions and thoughts will be heard and taken into consideration.
Delegator - realize that everything cannot be accomplished by own, thus
delegating tasks accordingly.
Initiative – The leader should work as a motivator, an initiator, and must
be a key element in the planning and implementing of new ideas,
programs, policies, events, etc.
Honest and Integral – Dishonesty will lead to ruin the managers and the
organization will fall into distress.
Continued…
Characteristics of good managers

Characteristics of managers: Boss Vs Manager
/ Manager

First-line
Managers
Middle
Managers
Top
Managers
Chairman, President,
CEO, MD,
- Make long-range plans
- Establish policies
- Represent company, org
Office Manager,
Supervisor, Foreman,
Department Head
- Implement plans
- Oversee staff, workers
- Assist middle managers
Production Manager,
Controller, Marketing
Manager, Sales
Manager
- Implement goals
- Make decisions
- Direct first-line managers
Management Pyramid

Level Type of Job
First-line Managers
 Directly supervise non-managers.
 Carry out the plans and objectives of higher management using
the personnel and other resources assigned to them.
 Short-range operating plans governing what will be done
tomorrow or next week, assign tasks to their workers, supervise
the work that is done, and evaluate the performance of individual
workers.
Middle Management
 Manage through other managers.
 Make plans of intermediate range to achieve the long-range goals
set by top management, establish departmental policies, and
evaluate the performance of subordinate work units and their
managers.
 Provide an integrating and coordinating function so that the
short-range decisions and activities of first-line supervisory
groups can be arranged toward achievement of the long-range
goals of the enterprise.
Top Management
 Responsible for defining the character, mission, and objectives of
the enterprise.
 Establish criteria for and review long-range plans.
 Evaluate the performance of major departments, and they evaluate
leading management personnel to gauge their readiness for
promotion to key executive positions.
Management Levels

Managerial Skills:
Managers need four types of skills:
Technical: Specific subject related skills such as engineering, accounting, etc…
Interpersonal: Skills related to dealing with others and leading, motivating,
or controlling them
Conceptual: Ability to recognize the critical factors that will determine as
organization’s success or failure.
Diagnostic & Decision making: Ability to see the forest in spite of the trees
and choose the best.

Frederick Taylor’s Four Principles of Scientific Management
– Develop a scientific way for each element of an individual’s work,
which replaces the old rule-of-thumb method.
– Scientifically select and then train, teach, and develop the worker.
– Heartily cooperate with the workers so as to ensure that all work
is done in accordance with the scientific way that has been
developed.
– Divide work and responsibility almost equally between managers
and workers. Managers take over all work for which it is better
fitted than the workers.
Scientific Management

Criticism to Scientific Management
– Fails to appreciate social context of work and higher
needs of workers
– Managers called it unwarranted interference in
managerial privileges/rights
– Fails to acknowledge the variance among individuals
– Fails to recognize the ideas and suggestion of workers.
Scientific Management

Henry Fayol, perhaps the father of modern management theory
is a French industrialist. He gave following fourteen principles of
management.
01. Specialization of labor: Principle of work allocation and specialization in
order to concentrate activities to enable specialization of skills and
understandings, more work focus and efficiency
02. Authority with corresponding responsibility: If responsibilities are
allocated then the post holder needs the requisite authority including
the right in the area of responsibility to undertake duties.
03. Discipline: Discipline means following rules, obedience and respect for
the agreements between the firm and its employee. Discipline also
involves sanctions judiciously applied in the organizations.
04. Unity of command: The idea is that an employee should receive
instructions from one superior only. The basic concern is that tensions
and dilemmas arise where we report to two or more bosses.
05. Unity of direction: Each group of activities should have one objectives
and should be unified by having one plan and one head.

06. Subordination of individual interests to general interest: The interest of
one employee or a group should not take precedence over the
organization.
07. Remuneration: To maintain the loyalty and support of workers, all
employees receive fair payment for services, not what the company can
get away with.
08. Scalar Chain (line of authority): It is the chain of communication from top
management ranging from the ultimate authority to the lowest ranks.
09. Order: Everything should be in right place at right time.
10. Personnel Tenure: Time is needed for the employee to adapt to his/her
work and perform it effectively. Stability of tenure promotes loyalty to the
organization, its purposes and values.
11. Centralization: Centralization is the degree to which subordinates are
involved in the decision-making. It belongs to the natural order of things.
12. Equity: Equity, fairness and a sense of justice "should” pervade the
organization in principle and practice
13. Initiative: At all levels of the organizational structure, zeal; enthusiasm and
energy are enabled by people having the scope for personal initiative.
14. Esprit de corps: This means team sprit, harmony and unity within org.

Management Perspectives
• Classical: Scientific (individual workers) and
Administrative (whole organization)
• Behavioral: Individual attitudes and behaviors
and group processes
• Quantitative: Applies quantitative/mathematical
techniques to management.
• Integrated: All three perspectives must be
integrated for best performance (Systems and
Contingency perspectives)

Classical
Perspective

Behavioral
Perspective

Behavioral Perspective: Theories X and Y

Quantitative Perspective

Integrated Perspective
Contemporary management seeks to integrate these approaches (Classical,
behavioral and quantitative approaches) in ways that suit the particular
organization at a particular time. All three perspectives take the integration
approach through systems theory and contingency theory.
The systems approach describes the organization as a system that transforms
inputs (material, human, financial and information resources) into outputs
(e.g. products/services, profits/losses, employee behavior and information) by
use of managerial and technological processes. The overall system can be
broken into sub-systems, such as production and finance. The objectives are
effective and efficient operation of each sub-systems, to maximize the
synergy and to avoid entropy.
The contingency approach suggests that the best managerial approach to each
particular situation is dependent on a large number of elements and therefore
managers should seek the approach that best suits the specific situation they
are facing. The text suggests that the broader approaches to management
taken by the systems and contingency approach have most relevance to the
manager of the 21st century who faces complex and rapidly changing
environments. Cdre Muzib, psc, PhD

Integrated Perspective

Contemporary Perspective
Theory Z: A concept that combines the positive
aspects of American and Japanese management into
a modified approach aimed at increasing U.S.
managerial effectiveness while remaining compatible
with norms and values of the American society and
culture.
Developed by William Ouchi

Management
system:
Japan vs US

Short-Term Employment
Individual Decision Making
Individual Responsibility
Rapid Evaluation and Promotion
Explicit Control Mechanisms
Specialized Career Path
Segmented Concern for Employee
as a Person
Theory A (American)
Lifetime Employment
Collective Decision Making
Collective Responsibility
Slow Evaluation and Promotion
Implicit Control Mechanisms
Nonspecialized Career Path
Holistic Concern for Employee
as a Person
Theory J (Japanese)
Long-Term Employment
Collective Decision Making
Individual Responsibility
Slow Evaluation and Promotion
Implicit, Informal Control with
Explicit, Formalized Measures
Moderately Specialized Career Paths
Holistic Concern, Including Family
Theory Z (Modified American)
What about Bangladesh?

• Autocratic style: It is highly directive and less concerned with
relationships. The autocratic style is appropriate when interacting with
low-capability employees. When interacting with such employees, give
very detailed instructions describing exactly what the task is and when,
where, and how to perform it. Closely oversee performance and give
some support. Make decisions without input from the employees.
• Consultative style: It involves highly directive and highly supportive
behavior and is appropriate when interacting with moderately capable
employees. Give specific instructions and oversee performance at all
major stages of a task. At the same time, support the employees by
explaining why the task should be performed as requested and
answering their questions. Work on relationships as you explain the
benefits of completing the task your way. Give fairly equal amounts of
time to directing and supporting employees. When making decisions,
you may consult employees, but retain the final say. Once you make the
decision, which can incorporate employees’ ideas, direct and oversee
employees’ performance.
Management styles

• Participative style: It is characterized by less directive but still highly
supportive behavior and is appropriate when interacting with employees
with high capability. When interacting with such employees, spend a
small amount of time giving general directions and a great deal of time
giving encouragement. Spend limited time overseeing performance,
letting employees do the task their way while focusing on the end result.
If a task needs to be done, don’t tell them how to do it; ask them how
they will accomplish it. Make decisions together or allow employees to
make decisions subject to your limitations and approval.
• Empowering style: It requires providing very little direction or support
for employees and is appropriate when interacting with outstanding
employees. Let the employees know what needs to be done and answer
their questions; but it is not necessary to oversee their performance.
Such employees are highly motivated and need little, if any, support.
Allow them to make their own decisions, subject to your approval. Other
terms for empowerment are laissez-faire and hands-off. A manager who
uses this style lets employees alone to do their own thing.

• External : Everything outside an organization that might affect it.
• Task : Integral and related to project
• Internal : The conditions and forces within an organization.
Management Context:
• General Environment: The set of broad dimensions and forces
in an organization’s surroundings that create its overall context
• Task Environment: Specific organizations or groups that affect
the organization.
Management Environment:

The General Environment
• The Economic Dimension: The overall health of the economic
system in which the organization operates.
• The Technological Dimension: The methods available for
converting resources into products or services.
• The Sociocultural Dimension: The customs, mores, values, and
demographic characteristics of the society in which the
organization functions.
• The Political-legal Dimension: The government regulation of
business and general relationship between business and
government.
• The International Dimension: The extent to which an organization
is involved in or affected by business in other countries.

The Task Environment
• Competitor: Competes for resources.
• Customer: Whoever pays money to acquire an organizations
products or services.
• Supplier: Provides resources.
• Regulator: A unit that has the potential to control, legislate, or
otherwise influence the organization’s policies and practices
• Regulatory Agency: An agency created by the government to
regulate business activities.
• Interest Group: A group formed to attempt to influence business.
• Strategic Ally: Another organization working in a joint venture or a
similar arrangement.

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