18/08/2022
Engineering Management
Engr. Conrado V. Baleña
Instructor
COURSE DESCRIPTION
Engineering management is a specialized form of
management that is concerned with the
application of engineering principles to business
practice
1
18/08/2022
IMPORTANCE OF THE COURSE
◉ To expose engineering students to managerial
concepts and techniques used in the real
world by Technical Managers, Project
Directors, and other technically oriented
management personnel.
◉ To do in-depth analysis of some case studies
pertaining to engineering management.
PRE-REQUISITE SUBJECTS
◉ Calculus 2
◉ Physics For Engineers
◉ Engineering Drawing And Plans
◉ Computer Fundamentals And Programming
2
18/08/2022
TOPICS
◉ Introduction to Engineering Management
◉ Decision Making
◉ Functions of Management
◉ Managing Product and Service Operations
◉ Managing the Marketing Function
◉ Managing the Finance Function
INTRODUCTION TO
ENGINEERING
MANAGEMENT
3
18/08/2022
ORGANIZATION AND MANAGEMENT
◉ The driving force behind every organization is
its management team.
◉ Different teams operate in different ways.
◉ No universal accurate management to define
the one that is best.
Small Company
◉ Owner is the manager
◉ Has daily contact with all people of his
organization.
◉ He establishes the policies
◉ He assigns jobs to be done
◉ Job follow ups for the purpose of direction and
coordination
8
4
18/08/2022
Big Company
◉ Hierarchal model (board of directors at top
and line workers at the bottom)
◉ BoD > CEO > Executives > Directors > Project
Managers > Superintendent > Field Engineers
◉ Instructions and commands pass quickly from
top to bottom
◉ Roles are often highly specialized
10
5
18/08/2022
11
1.2 WHAT IS ORGANIZATION?
◉ A group of individuals who are cooperating
willingly and effectively for a common goal.
◉ A mechanism which admin directs,
coordinates and control its business.
◉ Seeks to know who is to do and what is to do.
◉ Are structured to promote better
management.
12
6
18/08/2022
1.3 STRUCTURAL ORGANIZATION
◉ It is the formal arrangements that are
established to coordinate all activities in order
to implement a given strategy.
◉ It reflects the anatomy of a firm through its
focus on mechanisms and processes that link
both vertically and horizontally the various
parts of an organization.
13
Structural Elements of on Organization
◉ Men
◉ Materials
◉ Machine
◉ Methods
◉ Money
14
7
18/08/2022
Major Elements of Organizational Structures
◉ Distribution of Functions
◉ Vertical and horizontal authority relationships
◉ Communication and decision processes
◉ Policies
15
1.4 PRINCIPLES OF GOOD ORGANIZATION
◉ Principle of Objective
○ Clear and complete definition of the objective must
be known.
○ Objectives serve as guide to future planning and
action.
○ It integrates policies, projects and programs
○ It enables everybody to act consistently according
to a common goal.
16
8
18/08/2022
1.4 PRINCIPLES OF GOOD ORGANIZATION
◉ Principle of Analysis
○ There should be a study as to whether the project
could be finished at the right time and at the right
price the client will be able to pay.
◉ Principle of Simplicity
○ Simplest org to attain desire objective is the best.
○ All activities which are not necessary should be
eliminated and those retained should be handled in
the simplest way.
17
1.4 PRINCIPLES OF GOOD ORGANIZATION
◉ Principle of Functionalism
○ The organization should be built around the main
function of the business and not around individuals.
◉ Principle of Departmentalization
○ Needed in big org because scope of operation can
be very broad.
○ Departmentalization through functions, products,
location or by projects of the organization.
18
9
18/08/2022
1.4 PRINCIPLES OF GOOD ORGANIZATION
◉ Centralization of Authority and Responsibility
○ Necessary in order to have authority and
responsibility fixed.
◉ Limited Span of Control
○ The number of subordinates an executive can
manage effectively
19
1.5 BUSINESS
◉ is an organization of people with varied skills,
which uses capital and talents to produce
goods or services, which can be sold to others
of more than theirs costs,
◉ The system through which economic activity
was organized by those who seek to make
profit
20
10
18/08/2022
1.6 WHAT IS MANAGEMENT?
◉ Management is a Process
○ It is the process of directing and facilitating the work
of people who are organized for a common
purpose.
○ It is the process of combining the efforts and
resources of individuals with a common interest to
achieve a desired objective.
21
What is Management?
◉ Management is a Function
○ It is the function of getting things done
through the efforts of others.
○ It is the application of authority and the
assumption of responsibility.
○ It is an art – the art of handling people.
22
11
18/08/2022
1.7 MANAGEMENT CONCEPT
◉ Management to be effective must be systematic
○ Plan of action – step by step outline of what is to be done
and who does what.
◉ Management to be successful must be scientific
○ Humans will develop better methods of increasing
production without increasing work time and operating
cost.
◉ Management must be humanistic
○ Humans should be led by goals – justifiable, worthy and
fair to all concerned.
23
1.8 MANAGEMENT STRUCTURES
◉ Primary objective
○ To facilitate the coordination and control over the
activities of the company.
◉ No two companies are identical
◉ Each company should be studied in terms of its:
○ Purpose
○ Size
○ Nature of its business
24
12
18/08/2022
Delegation of Responsibility
◉ It is impossible for one person to control
effectively all the works of a large organization
through personal contact with it.
◉ No person possesses the skills necessary to
guide personally specialized activities in a
modern construction business.
25
Line of Responsibility
◉ From the executive to the supervisor down to the
workers under his jurisdiction and conversely,
◉ From the workers to those who are in authority
over him.
The line of authority must be kept clear at all times in
order to facilitate the ready flow of communications
and control.
26
13
18/08/2022
1.9 MANAGEMENT CONTROL
◉ Control
○ is a function of management which helps to
check errors in order to take corrective actions.
○ This is done to minimize deviation from
standards and ensure that the stated goals of
the organization are achieved in a desired
manner.
27
1.9 MANAGEMENT CONTROL
◉ Management control
○ is the process of evaluating, monitoring and
controlling the various sub-units of the
organization so that there is effective and
efficient allocation and utilization of resources
in achieving the predetermine goals.
28
14
18/08/2022
In 1916, Henri Fayol formulated one of the first definitions of
control as it pertains to management:
“Control consists of verifying whether everything occurs in
conformity with the plan adopted, the instructions issued,
and principles established.
It[‘s] objective [is] to point out weaknesses and errors in
order to rectify [them] and prevent recurrence. “
29
HENRY FAYOL (1841 – 1925)
◉ A French coal-mine engineer, director of
mines and modern management
theoretician.
◉ His scientific management theory forms the
base for business administration and
business management, also known as
Fayolism.
◉ Henri Fayol provided one of the most
influential modern management concepts of
his time. 30
15
18/08/2022
Effective Communication System
◉ It is an important element of executive control.
◉ Under this system, adequate and reliable data
are collected and disseminated to the proper
persons and units at the right time.
31
4 Purposes of Information
◉ It must answer the questions:
○ What are we going to do?
○ How well are we doing?
○ How can we do better?
○ Does it serve as an aid to coordination?
32
16
