Presentation on Engineering
Management
Define the Organization
► Basically, an organization in its simplest form (and not necessarily a legal entity, e.g.,
corporation ) is a person or group of people intentionally organized to accomplish an
overall, common goal or set of goals. Business organizations can range in size from one
person to tens of thousands.
Vision
► Members of the organization often have some image in their minds about how the
organization should be working, how it should appear when things are going well.
Mission
► An organization operates according to an overall purpose, or mission.
Values
► All organizations operate according to overall values, or priorities in the nature of how
they carry out their activities. These values are the personality, or culture, of the
organization.
Strategic Goals
► Organizational members often work to achieve several overall accomplishments, or goals,
as they work toward their mission.
Strategies
► Organizations usually follow several overall general approaches to reach their goals.
Defining the structures
► Thestructure of an organization is the sum total of
the ways in which it divides its labour into distinct
tasks and then achieves co-ordination among
them.
► Theorganization structure is the organizational
environment within which the project takes place.
The organization structure defines the reporting
and decision making hierarchy of an organization
and how project management operates within it
Types of Structures
1. Hierarchical structure
2. Matrix structure
3. Informal structure
4. Global Organization
Hierarchical Structure
► Military-type organizational structure, commonly employed in
centralized large corporations. It has two separate hierarchies:
(1) Line hierarchy - in which the departments are revenue generators (
manufacturing, selling), and their managers are responsible for
achieving the organization's main objectives by executing the key
functions (such as policy making, target setting, decision making);
(2) Staff hierarchy - in which the departments are revenue consumers,
and their managers are responsible for activities that support
line functions (such as accounting, maintenance,
personnel management).
While both hierarchies have their own chains of command, a
line manager may have direct control over staff employees but a
staff manager may have no such power over the line employees. In
modern practice, however, the difference in the two hierarchies is
not so clear-cut and jobs often have elements of the both types of
functions.
Cont…
Top Management
Line Line Line
Staff Staff Staff Staff Staff
Staff
Project Structure
Functional structure
► This depends on the business type, size
and structure used
► Let’s look at a functional structure:
Chief Executive
Board of Directors
Production Marketing Accounts Personnel IT
Flexible Structure
► This Structure is based on flexibility of the
work.
► For example a IT manager may doing the
marketing department work.
► It means a single employee done different
departments work.
The Matrix Organization
The Informal Organization
► This informal structure may be different from that
which is set out on paper.
► Informal structures develop because:
► People find new ways of doing things which they
find easier and save them time
► Patterns of interaction are shaped by friendship
groups and other relationships
► People forget what the formal structures are
► It is easier to work with informal structures.
Formal Structur
CO
Manager A Manager B Manager C
Informal Structure
CO
Manager B
Manager C Manager D
Manager A
Global Organization
World HQ
Rg 1 Rg 2 Rg 3
Country 1 2 3 4
Globalisation
► Definition:
An economic phenomenon?
A social phenomenon?
A cultural phenomenon?
► The movement towards the expansion of
economic and social ties between countries
through the spread of corporate institutions and
the capitalist philosophy that leads to the shrinking
of the world in economic terms.
