ENGINEERING MANAGEMENT
MIDTERM TOPICS
CHAPTER 3: PLANNING TECHNICAL ACTIVITIES
THE NATURE OF PLANNINGS
Plan – output of planning provides a methodical way of
achieving desired results.
 The absence of a hiring plan contributes to a high
cost of hiring.
PLANNING DEFINED
 selecting the best course of action so that the
desired result may be achieved.
Planning



is the management function that involves
anticipating future trends…(Nickels and others).
as the selection and sequential ordering of tasks
required to achieve an organizational goal.
(Aldag and Stearns).
is deciding what will be done, who will do it,
where, when and how it will be done (Cole and
Hamilton).
OPERATIONAL PLANNING – the process of determining
how specific tasks can best be accomplished on time with
available resources. It must be performed in support of
strategic and intermediate plan.
THE PLANNING PROCESS
1. setting organizational, divisional, or unit goals –
task of engineer to provide sense of direction, to
his division or to his unit. Goals as the precise
statement of results sought, quantified in time
and magnitude.
PLANNING AT VARIOUS MANAGEMENT LEVELS
1. Top management level – strategic planning
2. Middle management level – intermediate
planning
3. Lower management level – operational planning
STRATEGIC PLANNING – the process of determining the
major goals of the organization.
* The whole company is considered, specifically its
objectives and current resources.
STRATEGIC PLAN – the output of strategic planning.
Spells out the decision about long range goals and course
of action to achieve these goals.
INTERMEDIATE PLANNING – the process of determining
the contributions that subunits can make with allocated
resources. It is designed to support the strategic plan.
2. developing strategies or tactics to reach those
goals – ways to realize the goals which will be the
concern of the top management.
Strategy is the course of action aimed at ensuring to
achieve the objectives.
Tactic is a short-term action taken by management to
adjust to negative internal or external influences. Its
example is hiring a contractual workers to augment the
company’s current workforce.
Tactical plan is where the short-term goals and courses
of action are indicated.
3. determining resources needed – a to satisfy
strategic requirements, a general statement of
needed resources will suffice.
4. setting standards – it may be set at the planning
stage. A standard is a quantitative or qualitative
measuring device designed to help monitor
performances of people, capital goods, or
processes.
TYPES OF PLANS
 FUNCTIONAL AREA PLANS
1. Marketing plan – the written document or
blueprint for implementing and controlling
an organization’s marketing activities.
2. Production plan – written document of the
quantity of output a company must produce.
3. Financial plan – document that summarizes
the current financial situation and financial
activities of the firm.
4. Human resource management plan –
indicates the human resource needs of a
company in terms of quantity and quality.
 PLANS WITH TIME HORIZON
1. Short-range plans – intended to cover a
period of less than one year. Concern of first
line supervisors.
2. Long-range plans – plans covering a time
span of more than one year. Undertaken by
middle and top management.
 PLANS ACCORDING TO FREQUENCY OF USE
It may be classified as:
Standing plans – plans that are used again and again,
and focus on managerial situations.
1. Policies – are broad guidelines to aid managers
about recurring situations or function.
2. Procedures – are plans that describe the exact
series of actions to be taken.
3. Rules – are statements that either require or
forbid a certain action.
Single-use plans – developed to implement courses
of action that are unique and are unlikely to be repeated.
1. Budgets – projected expenditure for a certain
activity and explains where the required funds
will come from.
2. Program – designed to coordinate a large set of
activities.
3. Project – usually limited in scope and is
sometimes prepared to support a program.
PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS
The CONTENTS OF MARKETING PLAN according to
William Cohen
1. The Executive Summary – presents an overall
view of the marketing project and its potential.
2. Table of Contents
3. Situational Analysis and Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies
6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control
CONTENTS OF THE PRODUCTION PLAN
1. The amount of capacity the company must 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 of the most recent statements.
2. A sales forecast
3. The capital budget
4. The cash budget
5. Set of pro forma financial statements
6. The external financing plan
CONTENTS OF THE HUMAN RESOURCE PLAN
1. personnel requirements of the company
2. plans for recruitment and selection
3. training plan
4. retirement plan
PARTS OF THE STRATEGIC PLAN
1. Company or corporate mission
2. Objective or goals
3. Strategies
Company of corporate mission refers to the strategic
statement that identifies why an organization exists, etc.
MAKING PLANNING EFFECTIVE
 recognize the planning barriers
 use of aids to planning
Planning barriers according to Plunkett and Attner
1. manager’s inability to plan
2. improper planning process
3. lack of commitment to the planning process
4. improper information
5. focusing on the present at the expense of future
6. too much reliance on planning department
7. concentrating on only the controllable variables
Aids of planning that may used:
1. Gather as much information as possible
2. Develop multiple sources of information
3. Involve others in the planning process
CHAPTER 4: ORGANIZING TECHNICAL ACTIVITIES
REASONS FOR ORGANIZING

Organizing is undertaken to facilitate the
implementation of plans.
ORGANIZING DEFINED
 Organizing – refers to the structuring of
resources and activities to accomplish
objectives.
 Structure – arrangement or relationship of
positions within an organization.

THE PURPOSE OF THE STRUCTURE
The structure defines:
1. The relationship between tasks and authority.
2. Formal reporting relationships, the numbers of
levels in the hierarchy, and the span control.
3. Groupings of the individual into departments,
and department to organization.
4. The system to effect coordination of effort in
both vertical (authority) and horizontal (tasks)
directions.
When structuring, the engineer must be concerned with
the ff:
1. Division of labor – determining the scope of
work.
2. Delegation of authority – the process of
assigning decision-making authority.
3. Departmentation – the grouping of related jobs,
activities, or processes.
4. Span of control – the number of people who
report directly to manager.
5. Coordination – the linking of activities in the
organization.
THE FORMAL ORGANIZATION
 It is the structure that details lines of
responsibilities, authority, and position.
Formal structure is described through:
1. Organization chart – is the diagram of the
organization’s official positions.
2. Organizational manual – written descriptions of
authority relationships.
3. Policy manual – describes personnel activities
and company policies.
INFORMAL GROUPS
 Group with friendship as a principal reason for
belonging.
Informal organization is considered vulnerable to
expediency, manipulation, and opportunism.
TYPES OF ORGANIZATIONAL STRUCTURES
1. Functional organization – everyone engaged in
one functional activity, such as engineering or
marketing is grouped into one unit.
2. Product or market organization – refers to the
organization of a company by divisions involved
in a product or customer.
3. Matrix organization – organizational structure in
which each employee reports to functional or
division manager.
ADVANTAGES OF FUNCTIONAL ORGANIZATION
DISADVANTAGES OF FUNCTIONAL ORGANIZATION
1. Poor communication and coordination between
departments.
2. Delayed decisions involving more than one
department pile up.
3. Non-motivating employee tasks.
4. Difficulties in identifying which section or group
is responsible for a certain problem.
5. Limited view of organizational views.
6. Limited general management training for
employees.
PRODUCT OR MARKET ORGANIZATION
 Appropriate for a large corporation with many
product lines in industries.
Advantages
1. Flexible and responsive to change.
2. Provides a high concern for customer’s
needs.
3. Provides excellent coordination across
functional departments.
4. Easy pinpointing of responsibility for product
problems.
5. Emphasis on overall product and division
goals.
6. Provided opportunity for development of
general management skills.
Disadvantages
There is:
1. High possibility of duplication of resources
across functional departments.
2. Less technical depth and specializations in
divisions.
3. Poor coordination across divisions.
4. Less top management control
5. Competition for corporate resources.
MATRIX ORGANIZATION
 Is a structure with two or more channels of
command, two lines of budget authority, and
two sources of performance and reward.
(Thompson and Strickland)
 Designed to keep employees in a central pool.
(Higgins)
Advantages
1. More efficient use of resources than
divisional structure.
2. Flexibility and adaptability to the changing
environment.
3. Development of general and functional
management.
4. Interdisciplinary cooperation and any
expertise are available to all divisions.
5. Enlarge tasks for employees to motivate
them better.
Disadvantages
1. Frustration and confusion from dual chain of
command.
2. High conflict between divisional and
functional interest.
3. Many meetings and more discussion than
action.
4. Need for human relations training for key
employees and manager.
5. Tendency for power dominance from one
side of the matrix.
3 TYPES OF AUTHORITY
1. Line authority – a manager’s right to tell
subordinates what to do and see that they
do it.
2. Staff authority – a staff specialist’s right to
give advice to superior.
3. Functional authority – a specialist’s right to
oversee low level personnel involved in that
certain specialty.
Line departments – perform tasks that reflect the
organization’s primary goal and mission.
Staff department – include all that provide specialized
skills.
Classification of staff officers:
1. Personal staff –assigned to a specific
manager.
2. Specialized staff – providing needed staff
services for whole organization.
THE PURPOSE OF COMMITTEES
When certain formal groups are deemed appropriate to
meet expectations. Large or small organizations use
committees.
 Committee – a formal group of persons formed
for a specific purpose.
Classification of committees
1. Ad hoc committee – created for a shortterm purpose and have a limited life.
2. Standing committee – relatively permanent
committee that deals with issues on an
ongoing basis.
CHAPTER
5:
ORGANIZATION
STAFFING
THE
ENGINEERING
WHAT IS STAFFING?
 The management function that determines
human resource needs, recruits, selects, trains,
and develops human resources for jobs.
THE STAFFING PROCEDURE
1. Human resource planning
2. Recruitment
3. Selection
4. Induction and orientation
5. Training and development
6. Performance appraisal
7. Employment decisions
8. Separations
Human resource planning
This may involve three activities:
1. Forecasting – an assessment of future
human resource needs.
2. Programming – translating the forecasted
human resource needs.
3. Evaluation and control – monitoring human
resource action plans.
Methods of forecasting
1. Time-series methods – use historical data to
develop forecast of the future.
2. Explanatory, or causal models – attempts
to identify the major variables related to
past conditions.
Three major types of explanatory models:
a) Regression models
b) Econometric models – a system of
regression equations estimated from
past-time series data.
c) Leading indicators – time series that
anticipate business cycle turns.
3. Monitoring method – provide early warning
signals of significant changes.
Recruitment – refers to attracting qualified persons to
apply for vacant positions.
Source of applicants
1. The
organization’s
current
employees.
2. Newspaper advertising
3. Schools
4. Referrals from employees
5. Recruitment firms
6. Competitors
Selection – the act of choosing from those that are
available individuals to succeed on the job.
Ways of Determining the Qualifications of a Job
Candidate
1. Application blanks – information about a person
2. References – written by previous employers
3. Interviews – asking a series of question
4. Testing – evaluation of the future behavior
Types of Tests
1. Psychological tests – an objective standard
measure of a sample behavior.
Classified into:
a) Aptitude test – measures a person’s
capacity or potential ability to learn
b) Performance test – measures a person’s
current knowledge of a subject.
c) Personality test – measure personality
traits as dominance.
d) Interest test – measure a person’s
interest to various field of works.
2. Physical examination – test given to asses the
physical health of the applicant.
Induction
 The employee is provided with the necessary
information about the company.
Orientation
 The new employee is introduced to the working
environment and co-workers.
Training
 A learning that is provided by in order to improve
performance on the present job.
Two types:
a) Training
programs
for
nonmanagers
b) training
and
educational
program for executives.
4 methods in Training program for nonmanagers
1. On-the-job training – the trainer is placed in an
actual work.
2. Vestibule school – trainee is placed in a situation
same as the workplace where machines and time
constraints are present.
3. Apprenticeship program – combination of onthe-job training and experiences.
4. Special courses – provide more emphasis on
education.
Training Programs for Managers
Classifications:
1. Decision-making skills
2. Interpersonal skills
3. Job knowledge
4. Organizational knowledge
Methods:
1. In-basket – trainee is provided with set of notes,
messages, etc.
2. Management games – trainees are faced with
simulated situations.
3. Case studies – presents actual situations in
organizations.
Developing interpersonal competence through:
1. Role-playing – trainees are assigned roles to play
in a given case incident.
2. Behavior modeling – attempts to influence the
trainee by showing model persons.
3. Sensitivity training – under this method,
awareness and sensitivity are developed.
4. Transactional analysis – help individuals not
only understand themselves but also their
communication skills.
Methods in acquiring knowledge about the actual job.
1. On-the-job experience – provides valuable
opportunities for trainee to learn various skills.
2. Coaching – requires a senior manager to assists
lower-level manager.
3. Understudy – manager works as assistant to
higher level manager.
Methods to increase trainee’s knowledge
1. Position rotation – manager is given
assignments in a variety of departments.
2. Multiple management – idea that juniors must
be provided with means to prepare.
Performance appraisal – is the measurement of
employee performance.
Ways of appraising performance
1. Rating-scale method – each trait or
characteristics to be rated is represented by a
line.
2. Essay method – the evaluator composes
statements.
3. Management by objective methods – specific
goals are set collaboratively.
4. Assessment center method – one is evaluated
by persons other than the immediate superior.
5. Checklist method – evaluator checks
statements on a list.
6. Work standards method – standards are set for
realistic standard output.
7. Ranking method – evaluator arranges
employees in ranks.
8. Critical incident method – evaluator recalls and
write down specific incidents.
Employment decisions
1. Monetary rewards – given to employees whose
performance is above standards.
2. Promotion – a movement of a person to a
position of higher pay.
3. Transfer – movement to different job with same
level of responsibilities.
4. Demotion – movement from one position to
another which has less pay or responsibility.
Separation – either a voluntary or involuntary
termination of an employee.
CHAPTER 6: COMMUNICATION
Communication – process of sharing information
through symbols, including words and message.
FUNCTIONS OF COMMUNICATION
1. Information function – information provided
may be use for decision-making.
2. Motivation function – communication as a
means to motivate employees.
3. Control
function
–
when
properly
communicated, reports, policies and plans.
4. Emotive function – when feelings are repressed,
employees are affected by anxiety that affects
performance.
THE COMMUNICATION PROCESS
1. Develop an idea – the most important step of
communication.
2. Encode – idea into words, illustrations, etc.
3. Transmit – transmission of communication using
a channel.
4. Receive – receiving the message.
5. Decode – translating the message from sender
to the recipient.
6. Accept – receiver accept or reject the message.
7. Use – use the information.
8. Provide feedback – last step in the
communication.
FORMS OF COMMUNICATION
1. Verbal – transmitted through hearing or sight.
 Oral – hearing the words of the sender.
 Written – through written words.
2. Nonverbal – conveying message through body
language.
BARRIERS TO COMMUNICATION
1. Personal barriers – hindrances arising from the
communicator’s characteristics such as
emotions, etc.
2. Physical barriers – occurring in the environment
such as a very loud sound.
3. Semantic barriers – study of meaning as
expressed in symbols.
OVERCOMING BARRIERS TO COMMUNICATION
1. Use feedback
2. Repeat messages
3. Use multiple channels
4. Use simplified language
TECHNIQUES
FOR
COMMUNICATING
IN
ORGANIZATIONS
1. Downward communication – message flows
from higher levels to lower levels.
2. Upward communication – message from lower
to higher positions.
TECHNIQUES IN UPWARDCOM:
a. Formal grievance procedure – part of
normally operating org.
b. Employee attitude and opinion surveys –
finding out what the employees think about
the company.
c. Suggestion systems – suggestions from
employees are important sources of costsaving.
d. Open-door policy – provides opportunity to
act on difficulties.
e. Informal gripe sessions – can be used
positively, like employees can talk freely.
f. Task forces – may be created or assigned to
deal with the problem or issue.
g. Exit interviews – when employees leave the
organization, management should know the
real reason.
3. Horizontal communication – message sent to
individuals or group from another of same org
level.
MANAGEMENT INFORMATION SYSTEM(MIS)
 An organized method of providing past, present,
and projected information.
THE PURPOSES OF MIS
1. To provide a basis for the analysis of early
warning signals that can originate both
externally and internally.
2. To automate routine clerical operations like
payroll and inventory reports.
3. To assist manager in making routine decisions
like scheduling orders, etc.
4. To provide the information necessary for
management to make strategic decisions.