1 Manu 3318 Engineering Economics And Management.pdf

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MANU 3318 Engineering Economics and Management INTRODUCTION TO THE PRINCIPLES OF MANAGEMENT

Dress Code in IIUM

http://www.iium.edu.my/legaladviser/articles-4

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ENGINEERING MANAGEMENT ‫اﻹدارة اﻟﮭﻧدﺳﯾﺔ‬ PENGURUSAN KEJURTERAAN

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Engineers & Management

MME 4272 Engineering Management Assessment: Quiz 10% Assignment 5% Term Project 10% Midterm exam 25% Final exam 50% Attendance: Compulsory, students must have attended 80% of lectures in a course in order to sit for the final exam. Textbook: Essentials of Contemporary Management, McGraw-Hill, New York, 7th ed

Course Materials PowerPoint files can be found at

“https://classroom.google.com/ c/Mjc3Njc2MTYwNTda” Class code: 7rao6nx

Kabbashi, A. N Professor KOE, BTE Dept since 2002 B. S. Textile Engineering  Gezira University, Sudan M.Sc. Systems Engineering, 1998 Ph.D. Env. Eng. 2002

Objectives At the end of this course, students should be able to; Provide concepts of engineering management. Explain human resource management, leadership and motivation. Apply the investment analysis techniques, financial statement procedure.

Continue………. To develop basic understanding of financial management, entrepreneurship and legal aspects. Distinguish between technological innovation and entrepreneurship To introduce Islamic aspects of management and finance

Continue…… Define Managers And Management. Explain What Managers Do. Describe The Competencies Used In Managerial Work And Assess Your Current Competency Levels.

Course Synopsis a. This subject will generally focuses on Engineers and strategy. Principles of management. Management functions, Islamic concept of management. b. Behaviour of People in Organisations, Organisational structures and change. c. The subject will also clarify certain issues pertaining to functions and activities of Human Resource Management. Financial Management, Investment decisions, Key marketing concepts, Engineering and the legal aspects, Entrepreneurship and Management of Technological Innovation.

Engineering is based on application of physics, chemistry, biology, geology, mathematical and variety of physical sciences aimed towards solving specific applied problems. Management involves the application of psychology, sociology, economics, statistics, accounting, finance and marketing and production methods

An Engineer and a Manager  A woman in a hot air balloon realized she was lost. She reduced altitude and spotted a man below. She descended a bit more and shouted, "Excuse me Sir, can you help me? I don't know where I am, I had promised someone, I should be there."  The man below replied, "You're in a hot air balloon hovering approximately 30 feet above the ground. You're between 40 and 41 degrees north latitude and between 59 and 60 degrees west longitude."  "You must be an Engineer", said the lady balloonist.

An Engineer and a Manager

 "I am", replied the man.  "How did you know that?"  "Well", answered the lady in the balloon, "Everything you told me is technically correct, but I have no idea what to make of your information.  And the fact is I'm still lost. Frankly, you've not been much help to me at all. If anything, you've delayed my trip even more."

 The engineer below responded, "You must be in Top Management."  "I am", replied the lady balloonist, "but, how did you know that?"  "Well", said the Engineer, "You don't know where you are, or where you're going and seem to be in your place due to lot of hot air. You made a promise, which you've no idea how keep and you expect people beneath you to solve your problems. And finally, you hold others responsible for the plight you are in.

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Chapter

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Essentials of Contemporary Management

The Management Process

Learning Objectives After studying the chapter, you should be able to:  Describe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals.

 Distinguish among planning, organizing, leading, and controlling (the four managerial functions), and explain how managers’ ability to handle each one can affect organizational performance. 1–18

Learning Objectives (cont’d)  Differentiate among three levels of management, and understand the responsibilities of managers at different levels in the organizational hierarchy.  Identify the roles managers perform, the skills they need to execute those roles effectively and the way new information technology is affecting these roles and skills.  Discuss the principal challenges managers face in today’s increasingly competitive global environment. 1–19

What Is Management? Management  The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently. Managers  The people responsible for supervising the use of an organization’s resources to meet its goals. Resources are organizational assets  People Skills Knowledge Information  Raw materials Machinery Financial capital 1–20

Efficiency, Effectiveness, and Performance in an Organization

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Figure 1.1

Organizational Performance Organizational Performance  A measure of how efficiently and effectively managers are using organizational resources to satisfy customers and achieve goals. Efficiency To do the things right!  A measure of how well or productively resources are used to achieve a goal. To get the right things done! Effectiveness  A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved. 1–22

Why Study Management? Proper management directly impacts improvements in the well-being of a society. Studying management helps people to understand what management is and prepares them accomplish managerial activities in their organizations. Studying management opens a path to a well-paying job and a satisfying career.

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Four Functions of Management

Figure 1.2 1–24

Managerial Functions Henri Fayol  First outlined the four managerial functions in his book General Industrial Management.  Managers at all levels in all organizations perform each of the functions of planning, organizing, leading, and controlling.

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Planning Identifying and selecting appropriate goals and courses of action for an organization.  The planning function determines how effective and efficient the organization is and determines the strategy of the organization. Three Steps in the Planning Process:  Deciding which goals to pursue.  Deciding what courses of action to adopt.  Deciding how to allocate resources. 1–26

Management Key Concepts Organization  People working together and coordinating their actions to achieve specific goals. Goal/objective  A desired future condition that the organization seeks to achieve. c.f. policy Strategy  A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals. 1–27

Organizing Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals. Organizational Structure  A formal system of task and reporting relationships that coordinates and motivates organizational members.  Creating organizational structure: • Grouping employees into departments according to the tasks performed. • Laying out lines of authority and responsibility for organizational members. 1–28

Leading Articulating a clear vision to follow, and energizing and enabling organizational members so they understand the part they play in attaining organizational goals.  Leadership involves using power, influence, vision, persuasion, and communication skills.  The outcome of leadership is highly motivated and committed organizational members.

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Controlling Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance.  Monitoring individuals, departments, and the organization to determine if desired performance standards have been reached.  Taking action to increase performance as required.  The outcome of control is the ability to measure performance accurately and to regulate the organization for efficiency and effectiveness. 1–30

Types of Managers  Levels of Management  First-line managers • Responsible for day-to-day operations. Supervise people performing activities required to make the good or service.  Middle managers • Supervise first-line managers. Are responsible to find the best way to use departmental resources to achieve goals.  Top managers • Responsible for the performance of all departments and have cross-departmental responsibility. • Establish organizational goals and monitor middle managers. • Form top management team along with the CEO and COO.

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Levels of Management

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Figure 1.3

Relative Amount of Time That Managers Spend on the Four Managerial Functions

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Figure 1.4

IT and Managerial Roles and Skills Information Technology (IT) is increasingly used to help managers adopt a cross-departmental view of their organization. Managerial Role  The set of specific tasks that a person is expected to perform because of the position he or she holds in the organization. Roles are defined into three role categories (as identified by Mintzberg): Interpersonal  Informational  Decisional 1–34

Decisional Roles  Roles associated with methods managers use in planning strategy and utilizing resources:

 Entrepreneur—deciding which new projects or programs to initiate and to invest resources in.  Disturbance handler—managing an unexpected event or crisis.  Resource allocator—assigning resources between functions and divisions, setting the budgets of lower managers.  Negotiator—reaching agreements between other managers, unions, customers, or shareholders. 1–35

Informational Roles Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization:  Monitor—analyzing information from both the internal and external environment.  Disseminator—transmitting information to influence the attitudes and behavior of employees.  Spokesperson—using information to positively influence the way people in and out of the organization respond to it.

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Interpersonal Roles Roles that managers assume to provide direction and supervision to both employees and the organization as a whole:  Figurehead—symbolizing the organization’s mission and what it is seeking to achieve.  Leader—training, counseling, and mentoring high employee performance.  Liaison—linking and coordinating the activities of people and groups both inside and outside the organization/department. 1–37

Being a Manager High Variety

Fragmentation

Managerial Problems

Brevity Compensation to be a manager 1–38

Managerial Skills Conceptual Skills What should be the right thing?  The ability to analyze and diagnose a situation and distinguish between cause and effect. Human Skills  The ability to understand, alter, lead, and control the behavior of other individuals and groups. How can we do better? Technical Skills  The specific knowledge and techniques required to perform an organizational role.

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Skill Types Needed by Managerial Level

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Challenges for Management in a Global Environment

Increasing Number of Global Organizations. Building a Competitive Advantage. Maintaining Ethical Standards. Managing a Diverse Workforce. Utilizing IT and E-commerce.

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Building a Competitive Advantage Increasing Efficiency  Reducing the quantity of resources used to produce goods and services. Increasing Quality  Introducing Total Quality Management (TQM) to improve quality. Increasing Speed, Flexibility, and Innovation  Adapting to bring new products to market faster. Increasing Responsiveness to Customers  Empowering employees to deal with customers. 1–42

Building Blocks of Competitive Advantage

Figure 1.5 1–43

Maintaining Ethical Standards Factors Influencing Behaviors:  External pressures from stockholders/stakeholders for increased organizational financial performance.  Internal pressures from top management to lower-level managers to increase the organization’s competitive performance and profitability.  Societal, cultural, and environment demands on the organization. Hurt somebody unintendedly vs. illegally 1–44

Managing a Diverse Workforce The Increasing Diversity of the Workforce Non-Discriminatory Employment Practices Performance-Enhancing Benefits of a Diverse Workforce The opportunities for specialization

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Utilizing Information Technology (IT) Benefits ofand IT and E-commerce E-commerce  Makes more and better information about the organization available to outsiders  Empowers employees at all organizational levels  Helps managers carry out their roles more effectively and efficiently  Increases awareness of competitive opportunities  Makes the organization more responsive to its customers 1–46

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