Chapter 1 Making Economic Decisions

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Contemporary Management:
Issues and Challenges
• Quality Management
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Meeting customers’ requirements
Commitment by senior management and all employees
Continuous improvement
Planning quality into products and processes
Teams
Employee involvement and empowerment
Recognition
Benchmarking
Certification (ISO)
Six sigma
Contemporary Management:
Issues and Challenges
• Customer Focus
– CASA/SME CIM
Wheel
Contemporary Management:
Issues and Challenges
• Information Technology
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Computers and Microprocessors
Internet
Engineering Functions: Design, Manufacturing
Business Practice: Supply Chain, e-Business
• Project Management
– Complex systems
– Dynamic
• Globalization
Contemporary Management:
Successful Executives
• Chester Barnard (telecommunications executive)
– Functions of the Executive
• Alfred P. Sloan (GM)
– Annual styling changes
– Pricing structure
• Walt Disney (Walt Disney)
– Treating customers as “guests”
• Thomas Watson Jr. (IBM)
– Service
– Customer satisfaction
Contemporary Management:
Successful Executives
• Admiral Zumwalt (Navy)
– “People will respond well to being treated as grownups”
• Bill Hewlett & Dave Packard (HP)
– Management by walking around
• Sam Walton (Walmart)
– Driving costs out of the merchandising system
• Bill Gates (Microsoft)
– Range of products
• Jack Welch (GE)
– innovative management strategies and leadership style
Contemporary Management:
Famous Authors
• Peter Senge
– The Learning Organization
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Systems thinking
Personal mastery
Mental models
Building shared vision
Team learning
Contemporary Management:
Famous Authors
• Steven Covey
– The Seven Habits of Highly Effective People
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Habit 1: Be Proactive: Principles of Personal Vision
Habit 2: Begin with the End in Mind: Principles of Personal
Leadership
Habit 3: Put First Things First: Principles of Personal
Management
Habit 4: Think Win/Win: Principles of Interpersonal
Leadership
Habit 5: Seek First to Understand, Then to be Understood:
Principles of Empathetic Communication
Habit 6: Synergize: Principles of Creative Communication
Habit 7: Sharpen the Saw: Principles of Balanced SelfRenewal
Contemporary Management:
Famous Authors
• Tom Peters
– In Search of Excellence: Lessons from
America's Best Run Companies
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1) A bias for action,
2) Staying close to the customer,
3) Autonomy and entrepreneurship,
4) Productivity through people,
5) Hands-on, value driven,
6) Stick to the knitting,
7) Simple form, lean staff, and
8) Simultaneous loose-tight properties.
Contemporary Management:
Famous Authors
• Michael Hammer
– Re-engineering the corporation
• Scott Adams
– Dilbert comic strip
• Michael Porter
– Strategic Management and Strategy Theory
• Peter Drucker
– Management By Objectives
• Thomas Friedman
– The World Is Flat: A Brief History of the Twenty-First
Century
Discussion Questions
1. Compare the impacts of Industrial Revolution
with the “Information Revolution”.
2. Could you identify some other issues and
challenges faced in today’s engineering
management fields?
3. Could you identify some other famous authors
who are influencing management practices of
today?
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