Engineering Management

Management Organizing t is the process of grouping together of man and establishing relationship among them, defining the authority and responsibility of personnel by using the company’s other basic resources to attain predetermined goals and objectives. It has been proven that the weakness in the organization is a positive sign because it induces the people to attain teamwork, since they know that there should be cooperation to accomplish something. Subsequently, those people could work together more effectively if they know the roles relate to one another. This is possible in business or government as it is in basketball or volleyball. The design and structure and improvements of these systems of roles are basically the managerial function of organizing. Organizing is a broad term that can be interpreted differently by many management theorists. Some believe it includes the behavior of all the of all members of the group. Others say it is the total system of social; and cultural relationships. Generally mean a formalized design of intentional structures, roles, and positions. Organizing as Process Organizing as a process should consider several factors or fundamentals. First, the structure must reflect objectives and plans because activities of the organization are based on them. Second, the structure must reflect authority given to top and middle management. Third, organization structure, like any other plan, should reflect their external environment. The organization establishes structure in order to permit contributions by members of the group, and to help people gain objectives efficiently and effectively in a changing future. In this case, a sound organization structure can never be either mechanistic or static. Thus, there is no single best organization structure for various operations. Fourth, the organization must be manned of activities, and the authority of an organization structure and must consider the people’s limitations, customs and traditions. This does not mean that the structure must be based around the individuals instead of around the goals and supporting activities. This is similar to engineers who consider performance – strengths and weaknesses of materials in their projects, and the organizers who consider their materials – people. The Nature and Development of Organization What is an organization? – The term “organization” has several definitions. One (webster’s) is the “executive structure of a business.” this defintion indicates that organization is the framework or backbone by which the work of a business, managerial or otherwise, is performed, that it provides the required channels, points of origin, and flow of management direction and control. “organization” also conotes a creative process. All the parts of a business not come into existence spontaneously. The term organization is sometimes used to mean the total business organization, including facilities, materials, money and man power. This final definition refers to the term “concept” to which a member is assigned specific duties and under the term of which all employees work effectively together within a framework of superior and subordinate relationship. Types of Organization Structures Line Organization – This is the simplest form of structure and refers to a direct straight-line responsibility and control from the top management to the middle management and to the lower level. – It acquired this name because there are direct single lines of authority and responsibility between the manager and his subordinates. It is the oldest from of

organization structure based on the classical principle of scalar chain. – In this form of structure, authority passes responsibility directly to his immediate superior. Line and Staff Organization This utilizes the assistance of experts or specialists. Business leaders have recognized- as their companies expand from simple to complex organizations- that a small number of managers could not personally assume direct responsibility for all functions, such as research, planning, distribution, public relations, industrial relations, and many other activities of business. Functional Organization It utilizes the pure services of experts or specialists. The development of staff departments and positions led quite naturally to attempt complete reorganization on a functional basis This removed the staff specialists from his assisting capacity and gave him the pure authority and responsibility for supervision and administration of the function, replacing the operating foreman. COMMITTEES Another common organization form used in situations where group participation and decisions are required. Two types of thinking seem to be common when it comes to the use of the committee form of organization. On one side, the committee approach has been taken for granted and committees are automatically set-up without even considering the purpose and the need for such committees. On the other side, managers are totally reluctant to use committees because of fear of diverse opinions. These are created to undertake special activities rather than routinary activities. Any manager or supervisor has the right to form a committee if it is needed by his department or company. In order to facilitate a cooperative relationship within a large industrial enterprise, many companies add a network of committees to the line and staff organization. Organization Chart An organization chart is a diagram or drawing showing the important aspects of an organizational structure. It shows the relationship among positions as to authority, responsibility and accountability, and the people who occupy them. As defined by George Terry: – An organization chart is a diagrammatical form which shows important aspects of an organization including the major functions and their respective relationships, the channels of supervision, and the relative authority of each employee who is in charge of each function. Purpose of an Organization chart An organization chart assist one to view the firm’s structure as a whole. It shows the principal division and lines of formal authority and responsibility. It assists management to divide the different duties or functions in the business establishment so that they will be performed effectively and efficiently. Types of Organization Chart Master Chart Or Chart of Authority The master chart shows the entire organizational structure. It is a master plan of the principal departments, with lines of authority and responsibility and the mutual relationships of all departments and major components. Functional Chart The functional chart shows at a glance the functions and activities of the positions/or departments. It shows the major responsibilities of departments or positions. Listed below each job title are brief statements of responsibilities. Personnel Chart The personnel chart shows the departments in the same relative manner as the functional chart. But instead of listing the functions, the titles of the positions of the names of persons are indicated. The chart also shows the class titles of all positions in the department together their locations in the

organization. Reorganization It is the process by which an existing organization undergoes changes in the size and shape of the organization structure. The change may range from simple to complex. Departmentation Results from the grouping of work , the desire to obtain organization units of manageable size, and to utilize managerial ability. An organization structure and design are shaped significantly by the departmentation followed. Results of Good Organization Establishing responsibility • Providing easier communication • Eliminating jurisdictional disputes between individuals • Helping develop executive ability • Aiding in measuring a person’s performance against his charge and responsibilities • Aiding in equitable distribution of work, functions, and/ or personnel supervision • Permitting expansion and contraction without seriously disrupting the structure • Affording movement in the direction of the ideal organization, in times of change • Establishing closer cooperation and higher morale • Delineating avenues of promotion • Making growth possible with adequate control and without literally killing top executives through overwork • Aiding in wage and salary administration through forced job analysis and description STAFFING It is the process of recruiting, selecting and training of men. It means putting the right men on the right jobs. The managerial function of staffing involves manning the organizational structure through proper and effective evaluation, selection and development of people to perform the roles. Staffing is not part of organizing for the following reason: 1. The actual recruitment and selection of organization positions include procedures not usually discussed in the function of organizing. 2. All managers are responsible in the recruitment, selection and training of men within their respective departments and have too often overlooked the essential nature of their responsibility that should not be assigned only to the personnel manager. 3. Staffing has developed into relevant and important part of knowledge and practice in management. Nature of Staffing All business organizations should focus their attention and be concerned about the effectiveness and efficiency of their employees especially their managers. The function of staffing has to do with manning an organization structure so that it can completely operate in the present and the future. This function must be considered as part and parcel of the whole system of management. The staffing function includes the determination of manpower needs, the discovery of persons to fill these needs, their recruitment and employment, their placement and orientation and the rearrangement of team members through promotion and transfers. Every manager, including the chairmen of the board of the company, must handle some phases of staffing, even though the personnel department may provide technical help. The degree of importance given to the staffing function depends upon the size of the organization. In small organizations, the chairman of the board of the company performs this function. RECRUITMENT

It is the process of encouraging, inducing or influencing applicants to apply for a certain vacant position. Whenever there are vacancies, it is necessary to find a person to fill those vacancies. Some organizations do not wait until the vacancy arises, but they anticipate such vacancies and new opening in the short and long run and thus plan for the future needs. This approach gives more time to recruiting and also increases its effectiveness. The results obtained from recruiting, selecting, placing, training, developing and motivating employees, depend directly upon the effectiveness of the planning and forecasting phases of employment development. Steps in recruitment Step One - Studying the Different Jobs in the Company and writing Job Descriptions and Specifications (Job Analysis) Job description defines the duties and responsibilities of a particular position. A description of the duties and responsibilities attached to the job enables the employment officer to determine the special qualification which an individual must possess in order to do the job successfully. Job specification gives the specific qualifications required for the position, such as the following: amount and type of experience needed to perform the job, special training, skill and physical demands, special abilities and aptitudes, age, physical qualifications and other requirements. Step Two – Requisition of New employee To inform the personnel department, the line supervisor or the department head concerned should accomplish a formal requisition form, indicating the position to be filled, the date when the new employee will be needed, his pay rate, the required qualifications of the employee, the job description, approval by the responsible official of the company, and other pertinent data. Step Three – Actual Recruitment of Applicants Recruitment is the process by which prospective applicants are induced to apply in the company in order that their qualifications for present and anticipated vacancies can be evaluated through sound screening and selecting procedures. To make the selection truly discriminating there must be several qualified applicants from whom the final choice can be made. In this manner the chance of drawing out the most qualified applicants for the position may be more discerning. Sources of Labor/Applicants 1. Internal – employees recruited within the company 2. External – applicants recruited through schools, references, advertisements, placement agencies, etc. SELECTION It is the process of getting the most qualified applicant from among different job seekers. Steps in Selection Step One – Reception of applicants Not all applicants are allowed to go through the entire process of selection. Some of them are limited by means of “preliminary screening” or “sight screening,” whereby the undesirable applicants are quickly eliminated on the basis of rapid appraisal of their apparent characteristics, such as age, height, physical condition, etc. Screening is the process by which the applicants are being interviewed and classified under two categories – those to be given examinations and further interviews, and those who should not be considered at all. The first interview is preliminary, and its purpose is to eliminate those applicants who are clearly unqualified. Step Two – Preliminary Interview The purposes of the interview are (a) to find out how qualified the applicant is for the vacancy; (b) to give the applicant the information he needs in order to decide to take the job if offered to him; and (c) to create goodwill for the company.

No company hires an applicant without conducting an employment interview of some kind. Some companies give more emphasis to the impressions created by the applicant in the interview; others do not use any other tool in employee selection except the interview. This shows the importance of the interview as a major selection and placement tool. For his guidance, the interviewer uses the applicant’s records of previous employment, employment tests and other background investigation. The written comments and evaluation of the interviewer are helpful in comparing applicants and for further reference. Step Three – Application Form The application form is used: 1. as guide when interviewing the applicant. 2. as basis for eliminating applicants with unfavorable personal data. 3. for matching the qualifications of the applicant with the job requirements as indicated in the job description and job specification. 4. for checking on the applicants’ school records, references, and former employers. 5. as part of the employee’s permanent record and for communicating with the employee of his family. Step Four – Employment Test The employment officer goes over the application forms. On the basis of the information it contains and form the impression the officer gathers at the preliminary interview, he decides who should be called in to take employment tests. The purpose of testing is to measure the applicant’s abilities which cannot be gauged through interviews. They also help make an objective comparison among applicants. Step Five – Final Selection by immediate Supervisor or Department Head Employment involves three decisions: 1. Management’s decision as to whom among the applicants would best fit the job and should be hired. 2. The applicant’s decision as to whether or not the job is the right one for him after the supervisor has discussed the job duties. 3. The supervisor must decide if the applicant is the kind of man who can be at work with him in his team. The supervisor must look into his personality and see if he is able to work well with the members of his team. The supervisor or heads of the unit making the request for the new employee makes the final choice from among the applicants who have passed screening by employment office. Step Six – Physical and medical examination The selected applicant is required to pass a physical and medical examination. In small companies, the applicant may be referred to a company physician or to a medical consultant for the medical and physical check up. In some cases, the new employee is simply asked to present a certification from a private physician as to health condition. Large companies, however, usually have their own medical departments or retain the service of hospitals or clinics for the purpose. The purposes of physical and medical examination are: 1. To prevent contamination of contagious disease. 2. To prevent the hiring of liability employees which may result in absenteeism, hospitalization expenses, etc. Step Seven – Hiring When a candidate has passed all the selection requirements and is chosen, he is finally sent to the personnel department for the completion of the hiring process. Step Eight – Orientation/Induction/Indoctrination New employees are oriented on company policies, rules and regulations, and inducted or briefed about his job by the immediate supervisor or by the training officer. The orientation from co-worker is usually unplanned and unofficial, and it can provide the new employee with misleading and inaccurate information. This is one of the reasons that it is important to have an orientation provided by the

organization. An effective orientation program has an immediate and lasting impact on the new employee and can make the difference between a new employee’s success or failure. Job applicants get some orientation to the organization even before they are hired, sometimes through the organization’s reputation: how it treats employees and the type of products or services it provides. Also during the selection process, applicants often see other general aspects of an organization and what their duties, working conditions and pay will be. TRAINING Training, according to the Labor Code of the Philippines, is the systematic development of the attitude/knowledge/behavior patterns for the adequate performance of a given job or task. It is a day to day, year-round task. All employees on a new job undergo a learning process whether or not formal training exists. Learning to perform or be more efficient in performing a job is made easier for employees where there is formal training. For the growth of the individual and the organization, these activities are carried out continuously in many organizations. Usually a separate department or unit is set up to look after this responsibility. Generally, the new employee’s manager has primary responsibility for training on how to perform the job. Sometimes this is delegated to a senior employee in the department. Regardless, the quality of this initial training can greatly influence the employee’s job attitude and productivity. Economic, social, technological and governmental changes also influence the skills needed in an organization. Changes in these areas can make current skills obsolete in a short time. Also, planned organizational changes and expansion can make it necessary for employees to update their skills or apply new ones. Identifying Training Needs Trainings must be aimed at the accomplishment of some organizational goals, such as more efficient production methods, improved quality product/services, or reduced operating costs. An organization should only commit its resources to training that can help in achieving its objectives. Deciding on specific training activities in an organization requires a systematic and accurate analysis of training needs. There are many methods that can be used to determine an organization’s training needs. Company reports and records provide clues to internal trouble spots. Records on absenteeism, turnover, tardiness and accident rates provide objective evidence of problems. Because this type of information and interruption of the work flow. Interviews with employees, questionnaires, and group discussions can also be used to locate training needs. Personal observations of work being performed can also give insight into performance problems that may be corrected through training. COMMON TYPES OF TRAINING 1. On-the-Job Training and Job Rotation On-the-Job Training (OJT) is normally given by a senior employee or supervisor. The trainee is shown how to perform the job and allowed top do it under the trainer’s supervision. One method of the OJT is job rotation, sometimes called crosstraining. Under OJT, an employee learns several different jobs within a work unit or department and performs each for a specified time period. One positive point of job rotation is that it allows flexibility in the department. For example, when one member of the department is absent, another can perform the job. 2. Vestibule Training In vestibule training, procedure and equipment similar to those used in the actual job are set up in a special working area called a vestibule. The trainee is then taught how to perform the job by a skilled person and is able to learn a job at a comfortable pace without the pressure of production schedules. The main advantage of this method is that the trainer can stress theory and use of proper technique rather than output, and the student can learn by actually doing the job. However, this method is expensive, and the employee still must adjust to the actual production environment. Vestibule training has been used for training typists, word processor operators, bank tellers, clerks and other similar jobs. 3. Apprenticeship training

Apprenticeship training dates back to biblical times. It is frequently used to train personnel in skilled trades, such as carpenters, bricklayers, electricians, mechanics and tailors. The apprenticeship period generally lasts from one month to one year. During this time, the trainee works under the guidance of a skilled worker. 4. Classroom Training Classroom training is conducted off the job and is probably the most familiar method of training. Classroom training is an effective means of quickly getting information to large groups with limited or no knowledge of the subject being presented. It is useful for teaching actual material, concepts, principles and theories. Portions of orientation programs, some aspects of apprenticeship training and safety programs are usually presented with some form of classroom instruction. However, classroom training is used more frequently for technical, professional and managerial employees. 5. Programming Instruction The increased availability and lower cost of computers have made use of programmed instruction more attractive. Programmed instruction requires the trainee to read material on a particular subject and then to answer questions about the subject. If the answers are correct, the trainee moves on to new material. If the answers are incorrect, the trainee is required to read the material and answer additional questions. The material in programmed instruction is presented either in text form or on computer video displays. Regardless of the type of presentation, program instruction provides active practice, a gradual increase in difficulty over a series of steps, immediate feedback, and an individualized rate of learning. It is normally used to teach factual instruction. 6. Management Development Program Management development program is a systematic process of training and growth by which individuals gain and apply knowledge, skills, insights and attitudes to manage work organizations effectively. There is a change in attitudes to manage work organizations effectively. Management development needs to be planned, systematic process that integrates the organization’s response to changing external and internal environments with the aspirations of individuals within. The change of attitudes and the eventual change of personality is a long process. Such an approach must be flexible enough to accommodate any environmental change. The increasing complexity of problems, both technological, and environmental, demands more rigorous skills and talents from managers. The development programs must sense this and re-structure their programs to meet new objectives and goals. Management development is concerned with developing the attitudes and skills necessary to become or remain an effective manager. To be successful, it must have the full support of the organization’s top executives. Management development should be designed, conducted and evaluated on the basis of the goals of the organization, the needs of the managers involved, and probable changes in the organization’s management team. Some of the most popular methods of management development program are the following: Understudy Assignments Understudy assignments are generally used to develop an employee to fill a specific job. Coaching Coaching by experienced managers stresses the responsibility of all mangers for developing subordinates. Experienced managers advise and guides trainees in solving management problems. Coaching should allow the trainee to develop individual approaches to management with the counsel of a more experienced person. Experience Development through experience is used in many organizations. Employees are promoted into management jobs and allowed to learn on their own, from their daily experiences. The primary advantage lies with the manager when he tries to perform

certain jobs. Job Rotation Job rotation is designed to give an employee broad experience in many different areas of organization. In understudy assignments, coaching and experience, the trainee generally receives training and development for one particular job. In job rotation, the trainee goes from job to job within the organization, generally remaining in each from six months a year. This technique is often used by large organization for training recent college graduates. Special Projects and Committee Assignments Special projects require the employee to learn about specific subject. For example a trainee may be told to develop a training program on safety. This would require learning about the present internal safety policies and problems and about the safety training done by other companies. The person must also learn to work and relate to other employees. However – and this is critical – the special assignment must provide a developing and learning experience for the trainee and not just busy work. Committee assignments, similar to special projects, can be used if the organization has standing or ad hoc committees. An employee works with the committee on its regular duties; thus’ the person develops skills in working with others and learns through the activities of the committee. Lectures With lecturing, the trainer has control and can present the material as desired. The lecture is useful for presenting facts; however, its value in changing attitudes and in teaching skills is somewhat limited. Case Studies This technique was popularized by the Harvard Business School. With this method, sample situations are presented to the trainee to analyze. Ideally, the case study should force the trainee to think through problems, propose solutions, choose among them, and analyze the consequences of the decision. One primary advantage of the case study method is that it brings a note of realism to the instruction. However, case studies often are simpler than the real situations faced by managers. Role Playing In the role playing method, trainees are required to act out assigned roles in a realistic situation. They learn from playing the roles. The success of this method depends on the ability of the trainees to act realistically. Videotaping allows for review and evaluation of the exercise to improve its effectiveness. In-Basket Technique This technique stimulates a realistic situation. It requires the trainee to answer one manager’s mail and telephone calls. Important duties are mixed with routine matters. One call may come from an important customer who is angry; another from a local civic club requesting a donation. The trainee analyzes the situation and suggests possible actions. Business Management Games Business games generally provide a setting of a company and its environment and require a team of players to make operating decisions. Business games also normally require the use of computer facilities. Often, several different teams in a business game act as companies within an industry. This method forces trainees to work not only with other group members; they also must deal with competition within the industry. Advantages of business games are: they simulate reality; decisions are made in a competitive environment; feedback is provided about decision; and decisions are made with less than complete data. University and Professional Association Seminars Many colleges and universities both offer credit and nom-credit courses to help meet the management development needs of various organizations. Theses courses range from principles of supervisions of advanced executive management programs. Professional associations such as Philippine Council of management, also offer a wide variety of management programs.

(wala pa po ang report nina KJ) K???? goodluck!!! PLANNING Involves defining the organization’s goal, establishing an overall strategy for achieving those goals, and developing plans for organizational working activities. Concerned with both ends (what’s to be done) and means (how it’s to be done). Informal planning Nothing is written down, and there is little or no sharing of goals with others in the organization. Formal planning Specific goals covering a period of years are defined. Purpose of planning Provides direction Reduces uncertainty by forcing managers to look ahead, anticipate change, consider the impact of the change, and develop appropriate responses. Minimizes waste and redundancy Establishes the goals or standards used in controlling Two important element of planning: 1. Goals – desired outcomes for individuals, groups, or entire organization 2. Plans – documents that outline how goals are going to be met Types of Goals Financial or Strategic Goals Financial goals are related to financial performance of the organization. Strategic goals are related to other areas of an organization Stated or Real Goals Stated goals official statement of what an organization says, and what it wants its stakeholders believe, its goal are. Real goal are goals that an organization pursue. Types of Plans Breadth Strategic plans – apply to the entire organization, establish the organization’s overall goals, and seek to position the organization in terms of its environment Operational plans – specify the details of how the overall goals are to be achieve Time frame Long term plans – time frame is beyond 3 years Short term plans – covering one year or less Specificity Specific plans – clearly defined and that leave no room for explanation Directional plans – flexible plans that set out general guidelines Frequency of use Single-use plan – one time use plan specifically designed to meet the needs of a unique situation Standing plans – ongoing plans that provide guidance for activities performed repeatedly Approaches in Establishing Goals Traditional goal setting Goals are set at the top of the organization and then broken into subgoals for each organizational level. Means-end chain The higher-level goals are connected to lower-level goals, which serve as the means for their accomplishment. Management by Objectives (MBO) Process of setting mutually agreed-upon goals and using those goals to

evaluate employee performance. Steps in a Typical MBO Program 1. The organization’s overall objectives and strategies are formulated. 2. Major objective are allocated among divisional and departmental units. 3. Unit managers collaboratively set specific objectives for their unit with their managers. 4. Specific objective are collaboratively set with all department members. 5. Action plans, defining how are the objectives are to be achieve, are specified and agreed upon by managers and employees. 6. The action plans are implemented. 7. Progress toward objectives is periodically reviewed, and feedback is provided. Four elements of MBO program a) goal specificity b) participative decision making c) explicit time period d) performance feedback Characteristic of Well-Designed Goal Written in terms of outcomes rather than actions Measurable yet quantifiable Clear as to time frame Challenging yet attainable Written down Communicate to all necessary organizational members Steps in Goal Setting Review the organization’s mission, the purpose of an organization. Evaluate available resources. Determine the goals individually or with input from others. Write down the goals and communicate them to all who need to know. Review results and whether goals are being met. Developing Plans Contingency Factor in planning: 1. Level in the organization 2. Degree of environmental uncertainty 3. Length of future commitment Approaches to Planning In the traditional approach, planning was done entirely by top level managers who were often assisted by formal planning department. Another approach to planning is to involve more organizational members in the process. Criticism to Planning Planning may create rigidity. Plans can’t be developed for a dynamic environment. Formal plans can’t replace intuition and creativity. Planning focuses managers’ attention on today’s competition, not on tomorrow’s survival. Formal planning reinforces success, which may lead to failure. Just planning isn’t enough. Effective Planning in Dynamic Environment o Develop plans that are specific but flexible. o Managers must stay alert to environmental changes o Continue formal planning efforts, even when the environment is highly uncertain, in order to see any effect on organization performance. o Flattening the organizational hierarchy.