Chapter 1
Introduction to Engineering Management
At the end of the course, the student should be able
to:
1. Describe the management process and explain
the different functions of management.
expect your staff to perform it the same way every
time without questioning it. You’ll also watch your
team closely to ensure that everything is moving
along properly.

You’ll closely track your team members to
ensure they’re doing their work correctly.

There will be consequences if a team member
doesn’t hit their performance marks.

Team members should not question your
judgment.
2. Identify the types of organizational structures
1.1. Management and Organization
1.1.1. Types of management styles
Engineering management is a specialized form of
management required to successfully lead
engineering or technical personnel and projects and
applies to either functional management or project
management. Engineering managers use their
training and experience to coach, mentor and
motivate technical professionals.
What is a management style?
A management style is a way a manager works to
reach their goals for the company. Your management
style comprises how you make decisions, oversee
team members, and plan and delegate tasks. You
might use different management styles throughout
your career rather than sticking with just one.
9 types of management styles
Whether you’re a new manager or you’ve been at it a
while, you’ll likely realize you prefer to run the show
a certain way. That could mean following one specific
management style or merging a few. Read on to
discover nine types of management styles and
determine which one’s sound right for you.
1.Authoritative
2.Democratic
3.Consultative
4.Laissez-faire
5.Collaborative
6.Transformational
7.Coaching
8.Delegative
9. Visionary
1 Authoritative
Authoritative managers follow a top-down autocratic
management style. If you go the authoritative route,
then if you set expectations and your team doesn’t
follow them, they could face discipline or other
consequences. After you explain a process, you’ll
2 Democratic
A democratic management style is basically the
opposite of an authoritative approach. This
participative management style encourages your
team to be a part of the process and give feedback
on how things should be done. As a democratic
manager, you believe the best way that your team
works is in a collaborative, conversational
environment. That said, you also give yourself the
final say on all decisions.

The
democratic
management
style
encourages team members to share their
ideas.

You’ll create a collaborative environment
that thrives on communication.

You’ll still have the final say in the decisionmaking process.
3 Consultative
In a consultative environment, the manager wants to
hear from every team member before making a final
decision. Doing so could mean having a weekly
meeting to hear everyone’s thoughts and opinions or
shooting an email to get everyone’s input. That’s why
consultative management is great for specialized
fields where your whole team brings unique
experience to the table.

Consultative management means taking
everyone’s opinions and ideas into
consideration.

Consultative management is common in
specialized fields.

You’ll see your team members as assets and
make their opinions the bedrock of a
successful work environment.
4 Laissez-faire
The laissez-faire management style allows your team
members to make their own decisions about
projects, but they’ll always have you in their corner
for backup. You’ll be there to offer guidance, but
you’ll rarely tell anyone what they should or
shouldn’t do. Think of this type of leadership style as
a helping hand. You’ll give your team freedom and
remain minimally involved in their projects unless
they ask you for guidance.



Laissez-faire managers give their teams more
free reign when it comes to making
decisions.
You’ll be there to guide your team when they
ask for it, but you’ll rarely tell them what to
do.
You won’t be heavily involved in projects.
5 Collaborative
If you use a collaborative management style, you
encourage your team to discuss any idea that anyone
raises. After hearing what your team has to say, you’ll
base your decision on a majority vote. This
environment gives staff a large say in how things are
run, leading to higher employee engagement and a
more motivated team.
In a coaching management style, your team really is a
team – it’s basically a sports metaphor. You want to
lead your team to victory and perfect their skills so
everyone can reach their full potential. You’ll focus so
strongly on long-term growth that short-term
mistakes are inevitable and okay. After all, letting
your team problem-solve on their own makes you an
effective manager – look at you giving everyone the
space to do it themselves!

A coaching management style focuses on
learning and problem-solving.

You’ll prioritize long-term growth over
correcting short-term mistakes.

Professional development is the foundation
of the coaching management style.
8 Delegative
As a delegative manager, your main focus is to assign
tasks, then give feedback once a task is complete.
Your team members will decide how to perform each
task. After you look over their work, you’ll offer
positive feedback alongside constructive criticism on
how they can improve in the future.

Delegative managers assign tasks but don’t
oversee the process.

Collaborative environments are great for
keeping employees engaged.

Your team will figure out how to perform
tasks on their own.

Each idea is fully open for discussion amongst
all members.

You’ll provide feedback once tasks are
complete.

You’ll make your final decision based on a
majority vote.
9 Visionary
6 Transformational
As a transformational manager, your main focuses
are innovation and employee development. You’ll
challenge and gently push your team members daily
to help them grow. You’ll constantly motivate your
team and encourage them to start new projects –
even ones that may feel are out of their wheelhouse.
In a visionary management style, the manager is
someone to look up to. You’ll explain your goals and
why they matter to motivate and inspire your staff.
Since you’re constantly inspiring your team, they’ll
likely stay motivated without a continual check.

Visionary managers give their teams freedom
to complete their work but will check in
occasionally.

Transformational management prioritizes
long-term employee growth.

You’ll regularly inspire your team members to
reach their goals.

You’ll encourage your team to push their
boundaries and crush their goals.

You’ll share your goals and vision with your
team.

You’ll expect your team to take on
challenging tasks daily.
7 Coaching
1.1.2. Types of organizational structures
7 Types of Organizational Structures
1) Hierarchical Structure
2) Matrix Structure
6) Line Organizational Structure
For example, all engineers may be in one engineering
department and report to an engineering manager.
But these same engineers may be assigned to
different projects and might be reporting to those
project managers as well. Therefore some engineers
might have to work with multiple managers in their
job roles.
7) Team-based Organizational Structure
3) Horizontal/Flat Structure
1) Hierarchical Structure
This is an organizational chart type mostly adopted
by small companies and start-ups in their early stage.
It’s almost impossible to use this model for larger
companies with many projects and employees.
3) Horizontal/Flat Structure
4) Network Structure
5) Divisional Structure
The hierarchical model is the most popular
organizational chart type. There are a few models
that are derived from this model.
In a hierarchical organization structure, employees
are grouped with every employee having one clear
supervisor. The grouping is done based on a few
factors, hence many models are derived from this.
Below are a few of those factors

Function – employees are grouped according
to the function they provide. The below
image shows a functional org chart with
finance, technical, HR, and admin groups.

Geography – employees are grouped based
on their region. For example, in the USA
employees might be grouped according to
the state. If it’s a global company the
grouping could be done according to
countries.

Product – If a company is producing multiple
products or offering different services it can
be grouped according to the product or
service.
This is the dominant mode of organization among
large
organizations.
For
example
Corporations, Governments,
and organized
religions are hierarchical organizations with different
levels of management, power or authority.
2) Matrix Structure
In a Matrix organizational structure, the reporting
relationships are set up as a grid, or matrix, rather
than in the traditional hierarchy. It is a type of
organizational management in which people with
similar skills are pooled for work assignments,
resulting in more than one manager to report to
(sometimes referred to as solid line and dotted line
reports,
in
reference
to
traditional
business organization charts).
The most important thing about this structure is that
many levels of middle management are eliminated.
This enables employees to make decisions quickly
and independently. Thus, a well-trained workforce
can be more productive by directly getting involved
in the decision-making process.
This works well for small companies because work
and effort in a small company are relatively
transparent. This does not mean that employees
don’t have superiors and people to report to. Just
that decision-making power is shared and employees
are held accountable for their decisions.
So in summary, when deciding on a suitable
organizational chart, it is important to have an
understanding of the current organizational
structure of your company.
4) Network Structure
Network organizational structure helps visualize
both internal and external relationships between
managers and top-level management. They are not
only less hierarchical but are also more decentralized
and more flexible than other structures.
The idea behind the network structure is based on
social networks. Its structure relies on open
communication and reliable partners; both internal
and external. The network structure is viewed as
agiler than other structures because it has few tires,
more control, and a bottom flow of decision making.
Using a Network organizational structure is
sometimes a disadvantage because of its complexity.
The below example of a network org chart shows the
rapid communication between entities.
5) Divisional Structure
Divisional types of organizational charts have their
own division which corresponds to either products or
geographies. Each division contains the necessary
resources and functions needed to support the
product line and geography.
Another form of divisional org chart structure is the
multi-divisional structure. It’s also known as M-form.
It’s a legit structure in which one parent company
owns several subsidiary companies, each of which
uses the parent company’s brand and name.
The main advantage of the divisional structure is the
independent operational flow, that failure of one
company does not threaten the existence of the
others.
It’s not perfect either. There can be operational
inefficiencies from separating specialized functions.
An increase in accounting taxes can be seen as
another disadvantage.
6) Line Organizational Structure
Line organizational structure is one of the simplest
types of organizational structures. Its authority flows
from top to bottom. Unlike other structures,
specialized and supportive services do not take place
in these organizations.
The chain of command and each department head
has control over their departments. The selfcontained department structure can be seen as its
main characteristic. Independent decisions can be
taken by line officers because of its unified structure.
The main advantage of a line organizational structure
can be identified as effective communication that
brings stability to the organization.
7) Team-based Organizational Structure
Team-based organizational structures are made of
teams working towards a common goal while
working on their individual tasks. They are less
hierarchical, and they have flexible structures that
reinforce problem-solving, decision-making, and
teamwork.
Team organization structures have changed the way
many industries work. Globalization has allowed
people in all industries around the world to produce
goods and services cooperatively. Especially,
manufacturing companies must work together with
suppliers around the globe while keeping the cost to
a minimum while producing high-quality products.
1.2. Three main categories of roles/duties of a
manager
1.2.1. Interpersonal Roles
1.2.2. Informational Roles
1.2.3. Decisional Roles
Introduction
In 1973, Henry Mintzberg – a Canadian academic and
author on business and management published a
book called ‘The Nature of Managerial Work’. A
classic now, Mintzberg based his book on data
derived from the time diaries of male executives.
The data suggested that managers actually did not
spend a lot of time on planning or strategizing. On
the contrary, they spent most of their day answering
telephone calls, solving problems, dealing with
people, responding to crises, and had to deal with
interruptions regularly.
He found that managers could not stick to one task
since they were constantly being interrupted either
by a phone call or a crisis. Over the years, managerial
roles have become busier and more stressful.
So much so, that managers find their days neverending. With an economy that runs 24x7x365,
multiple chains of command, numerous projects, and
frequently changing technology, etc., managers have
a tough time on their jobs.
Managerial Roles
For better understanding, Mintzberg categorized all
activities into ten managerial roles performed over
the course of a day. These are as follows:
Interpersonal Roles

Figurehead – includes symbolic duties which
are legal or social in nature.

Leader – includes all aspects of being a good
leader. This involves building a team,
coaching the members, motivating them,
and developing strong relationships.

Liaison – includes developing and
maintaining a network outside the office for
information and assistance.
Informational Roles

Monitor – includes seeking information
regarding the issues that are affecting the
organization. Also, this includes internal as
well as external information.

Disseminator – On receiving any important
information from internal or external
sources, the same needs to be disseminated
or transmitted within the organization.

Spokesperson – includes representing the
organization and providing information
about the organization to outsiders.
Decisional Roles

Entrepreneur – involves all aspects
associated with acting as an initiator,
designer, and also an encourager of
innovation and change.

Disturbance handler – taking corrective
action when the organization faces
unexpected difficulties which are important
in nature.

Resource Allocator – being responsible for
the optimum allocation of resources like
time, equipment, funds, and also human
resources, etc.

Negotiator – includes representing the
organization in negotiations which affect the
manager’s scope of responsibility.
Chapter 2
Levels of Management
Management Functions
2.1. Planning
Responsibility
per
Planning, Organizing, Leading, and Controlling
Learning Objectives:
1. Know the dimensions of the planning-organizingleading-controlling (P-O-L-C) framework.
2. Know the general inputs into each P-O-L-C
dimension.
Introduction
A manager’s primary challenge is to solve problems
creatively. While drawing from a variety of academic
disciplines, and to help managers respond to the
challenge of creative problem solving, principles of
management have long been categorized into the
four major functions of planning, organizing, leading,
and controlling (the P-O-L-C framework). The four
functions, summarized in the P-O-L-C figure, are
highly integrated when carried out in the day-today
realities of running an organization. Therefore, you
should not get caught up in trying to analyze and
understand a complete, clear rationale for
categorizing skills and practices that compose the
whole of the P-O-L-C framework.
It is important to note that this framework is not
without criticism. Specifically, these criticisms stem
from the observation that the P-O-L-C functions
might be ideal but that they do not accurately depict
the day-to-day actions of actual managers
(Mintzberg, 1973; Lamond, 2004). The typical day in
the life of a manager at any level can be fragmented
and hectic, with the constant threat of having
priorities dictated by the law of the trivial many and
important few (i.e., the 80/20 rule). However, the
general conclusion seems to be that the P-O-L-C
functions of management still provide a very useful
way of classifying the activities managers engage in
as they attempt to achieve organizational goals
(Lamond, 2004).
1. Planning is the function of management that
involves setting objectives and determining a course
of action for achieving those objectives. Planning
requires that managers be aware of environmental
conditions facing their organization and forecast
future conditions. It also requires that managers be
good decision makers. Planning is a process
consisting of several steps. The process begins with
environmental scanning which simply means that
planners must be aware of the critical contingencies
facing their organization in terms of economic
conditions, their competitors, and their customers.
Planners must then attempt to forecast future
conditions. These forecasts form the basis for
planning. Planners must establish objectives, which
are statements of what needs to be achieved and
when. Planners must then identify alternative
courses of action for achieving objectives. After
evaluating the various alternatives, planners must
make decisions about the best courses of action for
achieving objectives. They must then formulate
necessary steps and ensure effective implementation
of plans. Finally, planners must constantly evaluate
the success of their plans and take corrective action
when necessary.
VISION: TO BECOME AN ENGR. IN 2024
There are many different types of plans and planning
such as:
Strategic planning involves analyzing competitive
opportunities and threats, as well as the strengths
and weaknesses of the organization, and then
determining how to position the organization to
compete effectively in their environment. Strategic
planning has a long-time frame, often three years or
more.
Strategic planning generally includes the entire
organization and includes formulation of objectives.
Strategic planning is often based on the
organization’s mission, which is its fundamental
reason for existence. An organization’s top
management most often conducts strategic
planning.
Tactical planning is intermediate-range (one to three
years) planning that is designed to develop relatively
concrete and specific means to implement the
strategic plan. Middle-level managers often engage
in tactical planning.
Operational planning generally assumes the
existence of organization-wide or subunit goals and
objectives and specifies ways to achieve them.
Operational planning is short-range (less than a year)
planning that is designed to develop specific action
steps that support the strategic and tactical plans.
2.2. Organizing
Organizing is the function of management that
involves developing an organizational structure and
allocating human resources to ensure the
accomplishment of objectives. The structure of the
organization is the framework within which effort is
coordinated. The structure is usually represented by
an organization chart, which provides a graphic
representation of the chain of command within an
organization. Decisions made about the structure of
an organization are generally referred to as
organizational design decisions.
Organizing also involves the design of individual jobs
within the organization. Decisions must be made
about the duties and responsibilities of individual
jobs, as well as the way the duties should be carried
out. Decisions made about the nature of jobs within
the organization are generally called “job design”
decisions.
Organizing at the level of the organization involves
deciding how best to departmentalize, or cluster,
jobs into departments to coordinate effort
effectively. There are many ways to departmentalize,
including organizing by function, product,
geography, or customer. Many larger organizations
use multiple methods of departmentalization.
Organizing at the level of a particular job involves
how best to design individual jobs to use human
resources most effectively. Traditionally, job design
was based on principles of division of labor and
specialization, which assumed that the narrower the
job content, the more proficient the individual
performing the job could become. However,
experience has shown that it is possible for jobs to
become too narrow and specialized. For example,
how would you like to screw lids on jars one day after
another, as you might have done many decades ago
if you worked in company that made and sold jellies
and jams? When this happens, negative outcomes
result, including decreased job satisfaction and
organizational commitment, increased absenteeism,
and turnover.
Recently, many organizations have attempted to
strike a balance between the need for worker
specialization and the need for workers to have jobs
that entail variety and autonomy. Many jobs are now
designed based on such principles as empowerment,
job enrichment and teamwork. For example, HUI
Manufacturing, a custom sheet metal fabricator, has
done away with traditional “departments” to focus
on listening and responding to customer needs. From
company-wide meetings to team huddles, HUI
employees know and understand their customers
and how HUI might service them best (Huimfg,
2008).
2.6. Leading
Leading involves the social and informal sources of
influence that you use to inspire action taken by
others. If managers are effective leaders, their
subordinates will be enthusiastic about exerting
effort to attain organizational objectives. The
behavioral sciences have made many contributions
to understanding this function of management.
Personality research and studies of job attitudes
provide important information as to how managers
can most effectively lead subordinates. For example,
this research tells us that to become effective at
leading, managers must first understand their
subordinates’ personalities, values, attitudes, and
emotions. Studies of motivation and motivation
theory provide important information about the
ways in which workers can be energized to put forth
productive effort. Studies of communication provide
direction as to how managers can effectively and
persuasively communicate.
2.7. Controlling
Controlling involves ensuring that performance
does not deviate from standards.
Controlling consists of three steps, which include.
(1) establishing performance standards,
(2) comparing actual performance against standards,
and
(3) taking corrective action when necessary.
Performance standards are often stated in monetary
terms such as revenue, costs, or profits but may also
be stated in other terms, such as units produced,
number of defective products, or levels of quality or
customer service.
The measurement of performance can be done in
several ways, depending on the performance
standards, including financial statements, sales
reports, production results, customer satisfaction,
and formal performance appraisals. Managers at all
levels engage in the managerial function of
controlling to some degree.
The managerial function of controlling should not be
confused with control in the behavioral or
manipulative sense. This function does not imply that
managers should attempt to control or to manipulate
the personalities, values, attitudes, or emotions of
their subordinates. Instead, this function of
management concerns the manager’s role in taking
necessary actions to ensure that the work-related
activities of subordinates are consistent with and
contributing toward the accomplishment of
organizational and departmental objectives.
Effective controlling requires the existence of plans
since planning provides the necessary performance
standards or objectives. Controlling also requires a
clear understanding of where responsibility for
deviations from standards lies. Two traditional
control techniques are budget and performance
audits. An audit involves an examination and
verification of records and supporting documents. A
budget audit provides information about where the
organization is with respect to what was planned or
budgeted for, whereas a performance audit might try
to determine whether the figures reported reflect
actual performance. Although controlling is often
thought of in terms of financial criteria, managers
must also control production and operations
processes, procedures for delivery of services,
compliance with company policies, and many other
activities within the organization.
The management functions of planning, organizing,
leading, and controlling are widely considered to be
the best means of describing the manager’s job, as
well as the best way to classify accumulated
knowledge about the study of management.
Although there have been tremendous changes in
the environment faced by managers and the tools
used by managers to perform their roles, managers
still perform these essential functions.
LECTURE 2b_LEVELS OF MANAGEMENT
Meaning of Management
Management is the process of coordination and
administration of tasks that is required to achieve
the goals of the organization. It is also referred to as
the art of making things happen with the help of
resources.
Management is required for an established life and
is essential for managing all types of organizations.
A sound management system is the fortitude of
thriving companies. Managing life implies getting
everything done to accomplish the aspirations of life
and maintaining an establishment. This means
getting things done with and by other people to
fulfill its objectives.
To put it in other words, the organization and
coordination of the pursuits of an industry for the
idea of accomplishing determined objectives
efficiently and thoroughly are marked as
management.
This authoritatively obligatory association connects
individuals as subordinates and superiors and gives
rise to distinct degrees in an establishment. There
are 3 levels in the ranking order of an establishment,
and they are:
1.
Top-level management
2. Middle-level management
3. Lower-level management
Let us discuss these management levels in detail in
the following lines.
Top Level Management
They comprise of the senior-most executives of the
company. They are normally regarded as the
Chairman, the Chief Executive Officer (CEO), the
Chief Operating Officer (COO), President and Vicepresident (VP). Top management is a team
consisting of managers from various operational
levels, managing marketing, finance, etc., For
instance, Chief Finance Officer (CFO), Vice President
(marketing) whose primary task is to combine
various components and regulate the actions of
different units according to the overall objectives of
the company.
These top-level managers are accountable for the
progress and continuation of the establishment.
They investigate the trading atmosphere and its
connections for the survival of the company. They
form the overall organizational aims and approaches
for their accomplishment. They are held responsible
for all the pursuits of the company and for its
influence on the society. The job of the top manager
is difficult and stressful, necessitating long hours
and dedication to the company.
Middle Level Management
It is the connection between top and lower-level
managers. They are lower to the top managers and
above to the first line managers. They are normally
called as division heads, for instance, Production
Manager. Middle management is accountable for
executing and regulating systems and maneuverings
generated by the top management.
At the same time, they are liable for all the actions
of the first-line managers. Their principal task is to
bring out the plans formed by the top managers. For
this purpose, they have to:

Understand the procedures outlined by the
top management.

Guarantee that their staff has the required
workers.

Designate certain tasks and duties to them
and drive them to accomplish the aspired
objectives.

Interact with other departments for the
stable operation of the company. At the
same time, they are subject to all the actions
of the first-line managers.
Lower-Level Management
Managers and supervisors make up the lower level
of the management in the hierarchy of the business.
Supervisors immediately manage the efforts of the
workforce. Their power and ability are defined
according to the maps drawn by the top
management.
Supervisory management performs a significant task
in the system since they coordinate with the
genuine workforce and move in directions of the
middle management to the employees. Through
their efforts the worth of the output is reported,
wastage of substances is reduced, and security
measures are affirmed.