Lesson 1: The Field of Engineering Management
specifications at the research, development, design, and
Engineers - are expected to perform a variety of tasks
production stages of product development.
depending on their specialization and job level. It is
3. Testing – where the engineer works in a unit where new
important to the engineer that he knows what is expected
products or parts are tested for workability.
of him to perform his job effectively and efficiently. The next
concern will be to identify the skills required which the
engineer did not possess. They are not directly trained to
deal with people, it is expected that their weakness will
4. Manufacturing – where the engineer is directly in
charge of production personnel or assumes responsibility
for the product.
most often be on people-based skills; His main
5. Construction – this is where the construction engineer
responsibility is to lead his group into producing a certain
(civil engineer usually) is directly in charge of the
output consistent with the required specifications.
construction personnel or may have responsibility for the
Engineer outputs are currently needed in the following
quality of the construction process.
6. Sales - where the engineer assists the company’s
concerns:
1. the production of more food for a fast-growing
customers to meet their needs, especially those that
world population
require technical expertise.
2. the elimination of air and water pollution
7. Consulting – where the engineer works as consultant
3. solid waste disposal and materials recycling
of any individual or organization requiring his services.
4. the reduction of noise in various forms
8.Government – where the engineer may find
5. supplying the increasing demand for energy
6. supplying the increasing demand for mobility
7. preventing and solving crimes
8.meeting
the
increasing
demand
for
communication facilities
Functions of Engineering
1. Research – where the engineer is engaged in the
process of learning about nature and codifying this
knowledge into usable theories.
2. Design and development – where the engineer
undertakes the activity of turning a product concept to
employment in the government performing any of the
various tasks in regulating, monitoring, and controlling the
activities of various institutions, public or private.
9. Teaching – where the engineer gets employment in a
school and is assigned as a teacher of engineering
courses. Some of them become deans, vice presidents,
and presidents.
10. Management – where the engineer is assigned to
manage groups of people performing specific tasks.
The Engineer in Various Types of Organization
finished physical items. Design for manufacturability and
From the viewpoint of the engineer, organizations
value engineering teams (a feature of some companies)
may be classified according to the degree of engineering
are charged with improvement of designs and
jobs performed:
1. Level One – those with minimal engineering
used, determine the human requirements of the total job,
jobs like retailing firms.
assign specific tasks to specific persons, motivate them,
2. Level Two – those with a moderate degree of
and provide means to make sure that the activities are in
engineering jobs like transportation companies
the right direction.
3. Level Three – those with a high degree of
engineering jobs like construction firms.
Requirements for the Engineer Managers Job
Depending on the type of products or services a
Management Skills Required at Various Levels
firm produces, the engineer manager must have the
1. Level one firms - Among the types of organizations, the
following qualifications:
engineer will have a slim chance of becoming the general
1. a bachelor’s degree in engineering from a
manager or president of level one, unless of course, he
reputable school; In some cases, a master’s degree in
owns the firm. The engineer manger may be assigned to
engineering or business management is required;
head a small engineering unit of the firm, but there will not
2. a few year experiences in pure engineering job;
be too many firms which will have this unit.
3. training in supervision;
2. Level Two Firms - the engineer may be assigned to
4. special training in engineering management
head the engineering division. The need for management
How One May Become A Successful Engineer
skills will now be felt by the engineer manager.
Manager
3. Level Three Firms - provide the biggest opportunity for
an engineer to become the president or general manager.
Kreitner indicates at least three general
preconditions for achieving lasting success as a manager.
In this case, the engineer manager cannot function
1. Ability - Managerial ability refers to the capacity of an
effectively without adequate management skills.
engineer manager to achieve organizational objectives
Engineering Management - refers to the activity
combining “technical knowledge with the ability to organize
and coordinate worker power, materials, machinery, and
money.”
effectively and efficiently. Effectiveness, according to
Higgins, refers to a description of “whether objectives are
accomplished”, while efficiency is a description of the
relative amount of resources used in obtaining
effectiveness.”
Management - may be defined as the “creative problemsolving process of planning, organizing, leading, and
controlling an organization’s resources to achieve its
mission and objectives.”
-a process consisting of planning, organizing,
directing (or leading), and controlling.
2. Motivation to Manage - Many people have the desire
to work and finish specific tasks assigned by superiors, but
not many are motivated to manage other people so that
they may contribute to the realization of the organization’s
objectives.
-must seek to find out the objectives of the
John B. Miner developed a psychometric
organization, think of ways how to achieve them, decide on
instrument to measure objectively an individual’s
the ways to be adapted and the material resources to be
motivation to manage. The test is anchored to the following
Decision – Making Process by David H. Holt
dimensions:
1. Diagnose problem
1. Favorable attitude toward those in positions of authority,
such as superiors;
-If a manager wants to make an intelligent
decision, his first move must be to identify the problem.
2. Desire to engage in games or sports competition with
peers.
- “Identification of the problem is tantamount to
having the problem half-solved.” – expert
3. Desire to engage in occupational or work-related
competition with peers.
4. Desire to assert oneself and take charge.
5. Desire to exercise power and authority over others.
6. Desire to behave in a distinctive way, which includes
standing out from the crowd.
7. Sense of responsibility in carrying out the routine duties
associated with managerial work.
- A problem exists when there is a difference
between an actual situation and a desired situation.
2. Analyze environment
- The environment where the organization is
situated plays a very significant role in the success or
failure of such an organization. It is therefore, very
important that an analysis of the environment be
undertaken. The objective of environmental analysis is the
3. Opportunity - Successful managers become possible
identification of constraints, which may be spelled out as
only if those having the ability and motivation are given the
either internal (limited funds, limited trainings, ill designed
opportunity to manage. The opportunity for successful
facilities) or external limitations (patents controlled by other
management has two requirements namely obtaining a
orgs, very limited market, strict enforcement of local zoning
suitable managerial job and finding a supportive climate
regulations).
once on the job.
Components of the Environment:
Lesson 2: Decision-Making as a Management
Responsibility
1. Internal – refers to organizational activities
within a firm that surrounds decision making.
2. External – refers to variable that are outside the
Decision – making is a responsibility of the engineer
organization and not typically within the short-run control
manager. It is understandable for managers to make
of top management.
wrong decisions at times. The wise manager will correct
them as soon as they are identified.
•
The higher the management level is, the bigger
and more complicated decision-making becomes.
Decision-Making - “The process of identifying and
choosing alternative courses of action in a manner
appropriate to the demands of the situation.”; “The heart of
all the management functions”, according to nickels.
3. Articulate problem or opportunity
4. Develop viable alternatives
- Oftentimes, problems may be solved by any of
the Alternatives solutions offered. The best among the
alternative solutions must be considered by management.
Procedures are as follows:
1. Prepare a list of alternative solutions.
2. Determine the viability of each solutions.
3. Revise the list by striking out those which are not
viable.
Approaches in Problem Solving In decision – making
5. Evaluate alternatives
- After determining the viability of the alternatives
and a revised list has been made, an evaluation of the
remaining alternatives is necessary.
6. Make a choice
- After the alternatives have been evaluated, the
The engineer manager is faced with problems
which may either be simple or complex.
1. Qualitative Evaluation - refers to evaluation of
alternatives using intuition and subjective judgment.
Stevenson states that managers tend to use the
qualitative approach when:
1. The problem is fairly simple.
decision – maker must now be ready to make a choice.
2. The problem is familiar.
This is the point where he/she must be convinced that all
3. The cost involved are not great.
the previous steps were correctly undertaken.
4. Immediate decisions are needed.
- Choice-making refers to the process of
selecting among alternatives representing potential
solutions to a problem.
7. Implement decision
2. Quantitative Evaluation - refers to the evaluation of
alternatives using any technique in a group classified as
rational and analytical.
Quantitative Models for Decision Making
- After a decision has been made, implementation
1. Inventory Models - Inventory models consist of several
follows. This is necessary, or decision-making will be an
types all designed to help the engineer manager make
exercise in ineffectiveness.
decisions regarding inventory. They are as follows:
- Implementation refers to carrying out the
1. Economic order quantity model
decision so that the objectives sought will be achieved. To
2. Production order quantity model
make implementation effective, a plan must be devised.
3. Back order inventory model
8. Evaluate and adapt decision results
4. Quantity discount model
- Use control and feedback mechanisms to ensure
results and provide information for future decisions.
2. Queuing theory - is one that describes how to
determine the number of service units that will minimize
- Feedback – process which requires checking at
both customers waiting time and cost of service. This is
each stage of process to assure that alternatives are
applicable to companies where waiting lines are a common
generated, the criteria used in evaluation and the solution
situation.
selected for the implementation are in keeping with the
goals and objectives specified.
- Control – actions made to ensure that activities
performed match the desired activities or goals.
3. Network models - are models where large complex
tasks are broken into smaller segments that can be
managed independently. The two most prominent network
models are:
1. The Program Evaluation Review Technique (PERT)
– techniques including scheduling, monitoring, and
controlling large complex projects by employing 3
9. Statistical decision theory - refers to the “rational way
estimates each activity.
to conceptualize, analyze, and solve problems in situations
2. The Critical Path Method (CPM) – uses only one-time
involving limited, or partial information about the decision
factor per activity that enables engineer managers to
environment.
schedule, monitor, and control large and complex projects.
4. Forecasting - may be defined as “the collection of past
and current information to make predictions about the
future.” There are instances when engineer managers
- The purpose of Bayesian analysis is to revise
and update the initial assessments of the event
probabilities generated by the alternative solutions. It is
achieved through the use of additional information.
make decisions that will have implications in the future.
Lesson 3: The Nature of Planning
5. Regression analysis - regression model is a
forecasting method that examines the association between
two or more variables. It uses data from previous periods
to predict future events. Regression analysis may be
simple or multiple depending on the number of
independent variables present. When one independent
variable is involved, it is called SIMPLE REGRESSION;
when two or more independent variables are involved, it is
To minimize mistakes in decision making,
planning is undertaken.
Plan
-
methodological way of achieving desired results.
-
on which conclusions about real-life problems can be used.
In the implementation of activities, the plan serves
as a useful guide.
called MULTIPLE REGRESSION.
6. Simulation - is a model constructed to represent reality,
This is the output of planning, provides a
Technical activities - require effective planning if
objectives and goals are to be realized.
It is highly sophisticated tool by means of which the
Planning
decision maker develops a mathematical model of the
•
According to Nickels and others - “the
systems under consideration. Simulation does not
management function that involves anticipating
guarantee an optimum solution, but it can evaluate the
future trends and determining the best strategies
alternatives fed into the process by the decision-maker.
and tactics to achieve organizational objectives”
7. Linear programming - is a quantitative technique that
•
and sequential ordering of tasks required to
is used to produce an optimum solution within the bounds
imposed by constraints upon the decision.
According to Aldag and Stearns - “The selection
achieve an organizational goal.”
•
According to Cole and Hamilton - “deciding
8. Sampling theory - is a quantitative technique where
what will be done, who will do it, where, when and
samples of populations are statistically determined to be
how it will be done, and the standards to which it
used for a number of processes, such as quality control
will be done.”
and marketing research.
For our purpose, it will suffice to define planning
as selecting the best course of action so that the desired
result may be achieved.
PLANNING AT VARIOUS MANAGEMENT LEVELS
1. Top management level
Strategic planning - is the process of determining the
major goals of the organization and the policies and
strategies for obtaining and using resources to achieve
those goals.
2.Middle management level
Tactics -is a short-term action taken by management to
adjust to negative internal or external influences.
3. Determining resources needed - To satisfy strategic
requirements, a general statement of needed resources
will suffice.; When particular sets of strategies have been
devised, the manager will determine human and nonhuman resources required by strategies. The quality &
quantity of resources needed must be correctly
determined.
4. Setting standards
Intermediate planning - is the process of determining the
Standards- a quantitative or qualitative measuring device
contributions that subunits can make with allocated
designed to help monitor the performance of people,
resources.
capital goods, or processes.
3.Lower management level
TYPE OF PLANS
Operational planning - refers to the process of
Plan are of diff. types. They may be classified in
determining how specific tasks can best be accomplished
terms of functional areas, time horizon, and frequency of
on time with available resources
use
THE PLANNING PROCESS
1. Functional Area Plans
1. Setting organizational, divisional, or unit goals - The
first task of the engineer manager is to provide a sense of
direction to his firm. The setting of goals provides an
answer to the said concern.
Goal- the precise statement of results sought, quantified
in time and magnitude, where possible.
2. Developing strategies or tactics to reach those
goals.
- The next task is to devise some means to
realize them.
Strategies - the ways to realize the goals; a course of
action aimed at ensuring that the organization will achieve
its objectives; concern of top management.
Plans may be prepared according to the needs of
the different functional areas.
TYPES OF FUNCTIONAL AREA PLANS:
1. Marketing plan- this the written document or
blueprint for implementing and controlling an
organization’s marketing activities relates to a
particular marketing strategy.
2. Production Plan- this the written document that
states the quantity of output a company must
produce in broad terms and by product fam.
3. Financial Plan - document that summarizes the
current financial situation of the firm, analyzes
financial needs, and recommends a direction for
financial activities
2. Programs - is a single use plan designed to
coordinate a large set of activities
4. Human resource management plan - indicates
3.Projects - Is a single use plan that is usually more
the human resource needs of a company detailed
limited in scope than a program and is sometimes
in terms of quantity and quality.
prepared to support a program.
Plans with Time Horizon
PARTS OF THE VARIOUS FUNCTIONAL AREA
1. Short-range plans- plans intended to cover a period
PLANS.
of less than one year. First line supervisors are mostly
concerned with these.
2. Long-range plans - plans covering a time span of
more than one year. Mostly undertaken by middle &
The engineer manager may be familiar with
engineering plans, knowing the details from beginning to
end.
The Contents of the Marketing Plan
top mgmt.
Plans According to Frequency of Use
William Cohen maintains that the following must
be included in the marketing plan:
1. Executive Summary- Which presents an
1. Standing plans - used again and again and they
overall view of the marketing project and its
focus on managerial situations that recur repeatedly.
potential
Can be classified as:
2. Table of Contents
1. Policies - broad guidelines to aid managers at
3. Situational Analysis and Target Market
every level in making decisions about recurring
4. Marketing Objectives and Goals
situations or function
5. Marketing Strategies
2. Procedures - plans that describe the exact series
6. Marketing Tactics
of actions to be taken in a given situation.
7. Schedules and Budgets
3.Rules - statements that either require or forbid a
8. Financial Data and Control
certain action.
The Contents of the Production Plan
1.The amount of capacity the company must
2. Single-use plans – specifically developed to
implement courses of action that are relatively unique
and are unlikely to be repeated. Classifies as follows:
1. Budgets - According to Weston and Brigham, is a
plan which sets forth the projected expenditure for a
certain activity and explains where the required funds
will come from.”
have
2.how many employees are required
3.how much material must be purchased
The Contents of the Financial Plan
1. An analysis of the firm’s current financial
condition as indicated by an analysis of
the most recent statements
2. A sales forecast
3. lack of commitment to the planning process
3. The capital budget
4. improper information
4. The cash budget
5. focusing on the present at the expense of the
5. A set of pro forma (or projected) financial
future
statements
6. too much reliance on the planning department
6. The external financing plan
Contents of the Human Resources Plan
1.personnel requirements of the company
7. concentrating on only the controllable
variables.
AIDS TO PLANNING
2.plans for recruitment and selection
1.Gather as much information as possible
3.training plan
2.Develop multiple sources of information
4.retirement plan
3.Involve others in the planning process
PARTS OF THE STRATEGIC PLAN
1.Company or corporate mission
2.Objectives or goals
3.Strategies
Lesson 4: ORGANIZING
Organizing
•
is undertaken to facilitate the implementation of
plans. In effective organizing, steps are
Company mission or corporate mission - refers to the
undertaken to breakdown the total job. Doing
strategic statement that identifies why an organization
these will make it possible to assign particular
exists, its philosophy of management, and its purpose as
persons. In turn, these will help facilitate the
distinguished from other similar organizations in terms of
assignment of authority, responsibility, and
products, services, and markets.
accountability for certain functions and tasks.
MAKING PLANNING EFFECTIVE
Planning is done so that some desired results
may be achieved.
Planning may be made successful if the following are
observed:
•
Organizing is a management function which refers
to “the structuring of resources and activities to
accomplish objectives in an efficient and effective
manner”.
Structure - The arrangement or relationship of positions
1. Recognize the planning barriers
within an organization. It is the result of the organizing
2. Use of aids to planning
process.
PLANNING BARRIERS
The planning barriers according to Plunkett
and Attner are as follows:
1. manager’s inability to plan
2. improper planning process
The Purpose of the Structure
The structure serves some very useful purposes.
They are the following:
1. It defines the relationships between tasks and
authority for individuals and departments.
2. It defines formal reporting relationships, the
1) Organization chart - It is a diagram of the
number of levels in the hierarchy of the
organization’s official positions and formal lines of
organization, and the span of control.
authority.
3.
4.
It defines the groupings of individuals into
2) Organizational manual - It provides written
departments and departments into organization.
description of authority relationships, details the
It defines the system to effect coordination of
functions of major organizational units, and
effort in both vertical (authority) and horizontal
describes job procedures.
(tasks) directions.
3) Policy manuals - It describes personnel activities
When structuring an organization; the engineer
manager must be concerned with the following:
1. Division of labor – determining the scope of work
and how it is combined in a job.
and company policies.
The INFORMAL GROUPS
❖ There are instances when members of an
organization spontaneously form a group with
2. Delegation of authority – the process of
assigning various degrees of decision-making
authority to subordinates.
3. Departmentation – the grouping of related jobs,
activities, or processes into major organizational
friendship as a principal reason for belonging.
❖ It is not a part of the formal organization and it
does not have a formal performance purpose.
❖ Oftentimes it is very useful in the accomplishment
of major tasks, especially if these tasks conform
subunits.
4. Span of control – the number of people
report directly to a given manager
with the expectations of the members of the
who
informal groups.
and
Types of Organizational Structures
individuals.
5. Coordination – the linking of activities in the
1. Functional organization - This is the form of
organization that serves to achieve a common
departmentalization in which everyone engaged in
goal or objective.
one functional activity, such as engineering or
marketing, is grouped into one unit.
Formal Organization
❖ The structure that details lines of responsibilities,
2. Product or market organization - This refers to
the organization of a company by divisions that
authority, and position.
brings together all those involved with a certain
❖ It is planned structure and it represents the
deliberate
attempt
to
establish
type of product or customer.
patterned
relationships among components that will meet the
objectives effectively.
The formal structure is described by management through:
3.
Matrix organization - An organizational structure
in which each employee reports to both a
functional or division manager and to a project or
group manager.
Reasons or Factors for Joining or Forming a Group
2. There is less technical depth and specialization in
divisions.
3. There is poor coordination across divisions.
4. There is less top management control.
5. There is competition for corporate resources.
Advantages and Disadvantages of Organizational
Structure
Matrix Organization - A matrix organization, according
Advantages and Disadvantages of Organizational
Thomson and Strickland, “is a structure with two (or more)
Structure
channels of command, two lines of budget authority, and
Functional Organization - Functional organization
two sources of performance and reward.
structures are very effective in smaller firms, especially
Matrix structure - was designed to keep employees in a
“single-business firms where key activities revolve around
central pool and to allocate them to various projects in the
well-defined skills and areas of specialization.
firm according to the length of time they were needed.
ADVANTAGES:
1. The grouping of employees who perform a
common task permit economies of scale and
efficient resource use.
2. Since the chain of command converges at the top
of the organization, decision making is centralized,
providing a unified direction from the top.
3. Communication
and
coordination
among
employees within each department are excellent
4. The structure promotes high-quality technical
problem-solving.
5. The organization is provided with in depth skill
specialization and development.
6. Employees are provided with career progress
within functional departments.
DISADVANTAGES:
1. There is a high possibility of duplication of
resources across divisions.
ADVANTAGES:
1. There is more efficient use of resources than the
divisional structure.
2. There is flexibility and adaptability to changing
environment.
3. The development of both general and functional
management skills are present.
4. There is interdisciplinary cooperation and any
expertise is available to all divisions.
5. There are enlarged tasks for employees which
motivate them better.
DISADVANTAGES:
1. There is frustration and confusion from dual chain
of command.
2. There is high conflict between divisional and
functional interests.
3. There are many meetings and more discussion
than action.
4. There is a need for human relations training for
key employees and managers.
The Purpose of Committees
❖ A committee is a formal group of persons formed
5. There is a tendency for power dominance by one
side of the matrix.
for a specific purpose.
❖ A committee is usually formed to provide the
necessary line-up of expertise needed to achieve
TYPES OF AUTHORITY
1.Line Authority - A manager’s right to tell subordinates
what to do and then see that they do it.
certain objectives.
Committees may be classified as follows:
1. Ad hoc committee – one created for a short-term
Line departments - perform tasks that reflect the
purpose and have a limited life.
organization’s primary goal and mission. In a construction
Example: the committee created to manage the
firm, the department that negotiates and secures contracts
anniversary festive of a certain firm.
for the firm is a line department. The construction division
2. Standing committee – it is a relatively permanent
is also a line function.
committee that deals with issues on an ongoing basis.
2.Staff Authority - A staff specialist’s right to give advice
Example: the grievance committee set up to handle initially
to a superior.
complaints from employees of the organization.
Lesson 5: Staffing
Staff departments - include all those that provide
specialized skill in support of line departments. Examples
of staff departments include those which perform strategic
STAFFING
•
Staffing may be defined as “the management
planning, labor relations, research, accounting, and
function that determines human resource needs,
personnel.
recruits, selects, trains, and develops human
Staff officers may be classified into the following:
resources for jobs created by an organization”.
1) Personal staff – those individuals assigned to a
specific manager to provide needed staff services.
2) Specialized staff – those individuals providing
needed staff services for the whole organization.
•
Staffing is undertaken to match people with jobs
so that the realization of the organization’s
objectives will be facilitated.
The Staffing Procedure
3.Functional Authority – A specialist’s right to oversee
1. Human Resource Planning - The planned output of
lower level personnel involved in that specialty, regardless
any organization will require a systematic deployment of
of where the personnel are in the organization.
human resources at various levels. Three activities of
- It is one given to a person or a work group to make
decisions related to their expertise even if these decisions
concern other departments. This authority is given to most
budget officers of organizations, as well as other officers.
Human Resource Planning: Forecasting, Programming,
Eval & control
1. Forecasting - An assessment of future human
resource needs in relation to the current capabilities
of the organization.
Methods of Forecasting
1. Time series methods – which use historical data
to develop forecasts of the future.
2. Explanatory, or causal models – which are
attempts to identify the major variables that are
related to or have caused particular past
conditions and then use current measures of these
variables to predict future conditions.
Three Major Types of Explanatory models
Source of Applicants
When management wants to fill up certain vacancies,
the following sources may tapped:
1.The organizations current employees - Some of the
organization’s current employees may be qualified to
occupy positions higher than the ones they are occupying.
They should be considered.
2. Newspaper advertising - There are at least three
a) Regression models
major daily newspapers distributed throughout the
b) Econometric models – a system of regression
Philippines. Readership is higher during Sundays.
equations estimated from past time-series data and
3. Schools - These are good sources of applicants.
used to show the effect of various independent
Representatives of companies may interview applicants
variables on various dependent variables.
inside campuses.
c) Leading indicators – refers to time series that
anticipate business cycle turns.
3. Monitoring models – are those that provide early
warning signals of significant changes in established
patterns and relationships so that the engineer
manager can assess the likely impact and plan
responses if required.
2. Programming - This means translating the
forecasted human resource needs to personnel
objectives and goals.
4. Referrals from employees - Current employees
sometimes recommend relatives and friends who may be
qualified.
5. Recruitment firms - Some companies are specifically
formed to assist clients firms in recruiting qualified persons.
6. Competitors - These are useful sources of qualified but
underutilized personnel
3. Selection
-
that are available the individuals most likely to
3. Evaluation and Control - It refers to monitoring
succeed on the job. A requisite for effective
human resource action plans and evaluating their
selection is the preparation of a list indicating that
success.
2. Recruitment - Recruitment refers to attracting qualified
Selection refers to the act of choosing from those
an adequate pool of candidates is available.
-
The purpose of selection is to evaluate each
persons to apply for vacant positions in the company so
candidate and to pick the most suited for the
that those who are best suited to serve the company may
position available.
be selected.
-
Selection procedures may be simple or complex
depending on the costs of a wrong decision.
-
When the position under consideration involves
c) Personality test – one used to measure
special skills, a more elaborate selection process
personality traits dominance, sociability, and
is undertaken.
conformity.
Ways of Determining the Qualifications of a Job
d) Interest test – one used to measure a person’s
interest in various fields of work.
Candidate
Companies use any or all of the following in
2. Physical examination – a type of test given to assess
determining the qualifications of a candidate:
the physical health of an applicant. It is given “to assure
1. Application blanks - The application blank
provides
information
about
a
person’s
characteristics such as age, marital status,
address, educational background, experience,
that the health of the applicant is adequate to meet the job
requirements.
4. Induction & orientation
and special interests. After reading the application
Induction
blank, the evaluator will have some basis on
•
necessary information about the company.
whether or not to proceed further in evaluating the
applicant.
•
officers, etc. Their statements may provide some vital
filled up, and passes are issued.
•
interview by asking a series of relevant questions to
the job candidate.
4. Testing - This involves an evaluation of the future
The company history, its products and services,
and the organization structure are explained to
information on the character of the applicant.
3. Interviews - Information may be gathered in an
His duties, responsibilities, and benefits are
relayed to him. Personnel and health forms are
2. References - References are those written by
previous employers, co-workers, teachers, club
The new employees is provided with the
the new employee.
Orientation
•
The new employee is introduced to the immediate
working environment and co-workers.
•
behavior or performance of an individual.
The following are discussed: location, rules,
equipment, procedures, and training plans.
•
Performance expectation are also discussed.
•
The
new
employee
also
undergoes the
TYPES OF TEST
“socialization process” by pairing him with an
1.Psychological tests – which is “an objective, standard
experienced employee and having a one-one-one
measure of a sample behavior. It is classified into:
discussion with the manager.
a) Aptitude test – one used to measure a person’s
capacity or potential ability to learn.
b) Performance test – one used to measure a
person’s current knowledge of a subject.
5. Training and Development
•
If the newly - hired (or newly promoted) employee
is assessed to be lacking the necessary skills
•
required by the job, training becomes a
The decision-making skills of the managers may be
necessity.
enhanced through any of the following methods of training:
Training - refers to the “learning that is provided
in order to improve performance on the present
job.”
Training programs consist of two general types, namely:
a. Training programs for non-managers
1. In-basket - where the trainee is provided with a set
of notes, messages, telephone calls, letters, and
reports, all pertaining to a certain company
situation. He is expected to handle the situation
within a given period of 1 or 2 hours.
- This type of training is directed to nonmanagers
2. Management games - is a training method where
for specific increases in skill and knowledge to
“trainees are faced with a simulated situation and are
perform a particular job. The four methods under
required to make an ongoing series of decisions about that
this type are:
situation”
1.On the job-training - where the trainer is placed in an
3. Case Studies - this method presents actual situations
actual work situation under the direction of his immediate
in organizations and enable one to examine successful
supervisor, who acts as trainer. This situation motives
and unsuccessful operations. It emphasizes “the
strongly the trainee to learn.
manager’s world, improves communication skills, offers
2. Vestibule school - where the trainee is placed in a
situation almost exactly the same as the workplace where
machines, materials, and time constraints are present. As
the trainer works full time, the trainee is assured of
sufficient attention from him.
3. Apprenticeship program - where a combination of onthe-job training and experiences with classroom instruction
in particular subjects are provided to trainees.
4. Special courses - are those taken which provide more
emphasis on education rather than training. Examples are
those which concern specific uses of computer like
computer-aided design and building procedures.
B.Training and educational programs for executives. The training needs of managers may be classified into four
areas: decision-making skills, interpersonal skills, job
knowledge, and organizational knowledge.
rewards of solving a mystery, possesses the quality of
illustration, and establishes concrete reference points for
connecting theory with practice.”
The interpersonal competence of the manager
may be developed through any of the following
methods:
1. Role-playing - is a method by which the trainees
are assigned roles to play in a given case incident.
They are provided with a script or a description of
a given problem and of the key persons they are
to play. The purpose of this method is to improve
the skill of the trainees in human relations,
supervision, and leadership.
2. Behavior modeling - this method attempts to
influence the trainee by “showing model persons
behaving effectively in a problem situation. The trainee
is expected to adapt the behavior of the model and use
it effectively in some instances later on.
3. Sensitivity training - under this method, awareness
and sensitivity to behavioral patterns of oneself and others
are developed.
4. Transactional analysis - is a training method intended
“to help individuals not only understand themselves and
others but also improve their interpersonal communication
skills.
1. Position Rotation - under this method, the manager
is given assignments in a variety of departments. The
purpose is to expose him to different functions of the
organization.
2. Multiple Management - this method is premised, on
the idea that junior executives must be provided with
means to prepare them for higher management positions.
To achieve this, a junior board of directors is created
consisting of junior executives as members. The board is
given the authority to discuss problems that the senior
In acquiring knowledge about the actual job the
board could discuss. The members are encouraged to take
manager is currently holding, the following methods
a broad business outlook rather than concentrating on their
are useful:
specialized lines of work
1. On-the-job experience - this method provides
6. Performance Appraisal - is the measurement of
valuable opportunities for the trainee to learn various
employee performance. The purposes for which
skills while actually engaged in the performance of a
performance appraisal is made are as follows:
job.
2. Coaching - this method requires a senior manager to
assist a lower-level manager by teaching him the needed
skills and generally providing directions, advice, and
helpful criticism. The senior manager must be skilled
himself and have the ability to educate, otherwise the
method will be ineffective.
3. Understudy - under this method, a manager works as
assistant to a higher-level manager and participates in
planning and other managerial functions until he is ready
to assume such position himself. Once in a while, the
assistant is allowed to take over.
In the attempt to increase the trainee’s knowledge
of the total organization, exposure to information and
events outside of his immediate job is made. In this
regard, the following methods are useful:
1. To influence, in a positive manner, employee
performance and development;
2. To determine merit pay increases;
3. To plan for future performance goals;
4. To determine training and development needs;
5. To assess the promotional potential of
employees.
Ways of Appraising Performance an employee’s
performance may be measured using any of the
following methods:
1. Rating scale method - where each trait or
characteristic to be rated is represented by a line or
scale on which the rater indicates the degree to
which the individual possesses the trait or
characteristic.
2. Essay method - where the evaluator composes
statements that best describe the person evaluated.
3. Management by objectives method - where the
specific goals are set collaboratively for the organization
2. Promotion - this refers to a movement by a person
into a position of higher pay and greater
responsibilities and which is given as a reward for
competence and ambition.
as a whole, for various subunits, and for each individual
3. Transfer - this is the movement of a person to a
member. Individuals are, then, evaluated on the basis of
different job at the same or similar level of
how well they have achieved the results specified by the
responsibility in the organization. Transfers are made
goals.
to provide growth opportunities for the persons
4. Assessment center method - where one is
involved or to get rid of a poor performing employee.
evaluated by persons other than the immediate superior.
4. Demotion - this is a movement from one position to
This method is used for evaluating managers.
another which has less pay or responsibility attached to it.
5. Checklist method - where the evaluators checks
statements on a list that are deemed to characterize an
employee’s behavior or performance.
Demotion is used as a form of punishment or as a
temporary measure to keep an employee until he is offered
a higher position.
6. Work standards method - where standards are set
for the realistic worker output and later on used in
evaluating the performance of non-managerial employees.
8.Separation
•
termination of employee. When made voluntarily,
7. Ranking method - where each evaluator arranges
the organization’s management must find out the
employees in rank order from the best to the poorest.
real reason. If the presence of a defect in the
8. Critical-incident method - where the evaluator
organization is determined, corrective action is
recalls and writes down specific (but critical) incidents that
indicate the employee’s performance. A critical incident
occurs when employee’s behavior results in an unusual
success or failure on some parts of the job.
Separation is either a voluntary or involuntary
necessary.
•
Involuntary separation (or termination) is the
last option that the management exercises when
an employee’s performance is poor or when
7.Employment Decisions - After evaluating the
he/she committed an act violating the company
performance of employees (managerial will now be ready
rules and regulations. This is usually made after
to make employment decisions. These may consist of the
training efforts fail to produce positive results.
following:
1. Monetary rewards - these are given to
employees whose performance is at par or above
standard requirements.