DR.

EMİN ERCAN CİHAN

NTE1018
Introduction to Business World for Engineers

DR. EMİN ERCAN CİHAN

INTRODUCTION

Dr. Emin Ercan Cihan

 Week 1: Introduction — LO1 to LO7 (All)
DR. EMİN ERCAN CİHAN
Course Aim Assessment
Week 2: Strategy — LO1, LO3, LO5 Mid term 30%
Week 3: Business — LO1, LO2 Homework 20,4%
Week 4: Complexity — LO2, LO3 Class Participation 9,6%
Week 5: Uncertainty — LO2, LO4 Final exam 40%
Week 6: Risk — LO2, LO5 Total 100%
Week 7: Requirements — LO3, LO4
Week 8: System Models — LO3 Why This Course Matters
Week 9: Stakeholder Management — LO1, LO6
Week 10: Time — LO2, LO3, LO5 • Preparation for graduation
Week 11: Quality — LO3, LO5
• Transition to professional life

DR. EMİN ERCAN CİHAN

Week 12: Leadership — LO4, LO6
Week 13: Innovation — LO2, LO6 • Career positioning
Week 14: SCM & Organisation — LO1, LO3, LO6
Week 15: Conflict — LO4, LO6 To download the course materials, please sign in to Google
Week 16: Decision — LO1 to LO7 (All) Classroom using your Gmail account. Join the course using the
Learning Outcomes (LO) Codes Used class code provided below:
LO1 Organizational and stakeholder awareness
LO2 Decision making under uncertainty
LO3 Systems and operations thinking
LO4 Communication and problem framing
LO5 Financial and performance awareness
LO6 Leadership, ethics and responsibility
LO7 Career development and lifelong learning
 Business professional and Academician
DR. EMİN ERCAN CİHAN

Ercan, who holds bachelor's and master's degrees in Mechanical Engineering from Istanbul Technical
University (ITU), has over 30 years of experience in business, especially in project and program
management. He has served as a prototype project and planning engineer at Ford Otosan, project manager
for body parts in vehicle projects such as Jaguar, Land Rover, Fiat-Comau, and Scania, and as the die shop
project coordinator at Ford. Ercan has also worked as a body parts program coordinator in vehicle design
projects developed from scratch. In these roles, he collaborated with project teams from Chinese, Korean,
Spanish, Italian, German, American, and British companies and managed multiple project teams both for
subcontractors and Ford Otosan.
He has delivered training in project/program management, leadership and conflict resolution in projects, and

DR. EMİN ERCAN CİHAN

strategic management. Additionally, he has provided project mentoring and training in various areas such as
innovation, efficiency, lean transformation, digitalization, R&D, and integration for companies like Ford
Otosan, Siemens, Eczacıbaşı, Beyçelik, TI Fluid Systems, Sarıgözoğlu, Clarient, Dostel, and Onatus. He
teaches agile and classical project management courses in the Mechatronics Department at Yıldız Technical
Ercan Cihan, PhD University (YTU). A special course content he developed was approved by the departmental board and
university senate and is delivered under the code [Link] completed his doctoral dissertation and
program on project portfolio management in Engineering Management Department as the top-ranking
graduate. He continues his academic and field work on project portfolio management, including publications
and training content, with three indexed and prestigious scientific journal articles, among [Link] his
doctoral dissertation, he participated in the Multi Criteria Decision Making (MCDM) PhD Thesis Awards
competition held in Tunisia between 2–7 June 2024 and became a finalist, winning third place for Turkey.
Another one of his papers received the “Best Paper Award” among 84 submissions from around the world at
the 60th IPMA (International Project Management Association) conference held in Dubai and was also
selected as one of the top three finalists for the “Best Project Management Research Award.”Through the
training and consulting company he founded under the brand name "Global Project Doktoru" he provides
various services to companies. In his training programs, he uses his own models that have been
Linkedin connection academically validated.
 Project and Program Management Experience
DR. EMİN ERCAN CİHAN

BUSINESS LINE DURATION OF ENGAGEMENT INSTITUTIONS / CLIENTS

AUTOMOTIVE AND TOOLING FORD OTOSAN
1999-2014
JAGUAR LAND ROVER
SCANIA
FIAT
BMW
MERCEDES
FORD OTOSAN

DR. EMİN ERCAN CİHAN

TRAINING AND CONSULTANCY
2014-2024 SIEMENS
ECZACIBAŞI
BEYÇELİK
SARIGÖZOĞLU
TI FLUID SYSTEMS
ARÇELİK
CLARIENT
ONATUS
UKCAST
ACADEMIC STUDIES COLLABORATION WITH STATE UNIVERSITIES
2016-2024
YTU Mecatronics Engineering- Prof. H. Livatyalı
İTÜ Management Faculty– Prof. Ö. Kabak
MU Industrial Engineering - Prof. Ç. Uslu
 BUSINESS LINE: AUTOMOTIVE PROJECTS 1999-2014
DR. EMİN ERCAN CİHAN

LIGHT COMMERCIAL VEHICLES TRANSIT:

V363 & B460
V362 Transit Customs
V227 Transit Connect (prototype)
V347 Transit, V348 Transit
JUMBO Transit

PASSENGER CAR & SUV

DR. EMİN ERCAN CİHAN

B299 Ford Fiesta
L319 Land Rover,
X150 Jaguar
X351 Jaguar
COMAU B-MPV

TRUCK
H298 Cargo Truck
Scania

MISCELLENIOUS PARTS
Mercedes, BMW, WABCO, Knorr Bremse
 TRAINING & CONSULTANCY 2015-2019 – SIEMENS TEAMS
DR. EMİN ERCAN CİHAN

THOR Program Management

SIEFFICIENCY @SIEMENS

Mobil E-commerce Lightning Impact

Kanban
Application Platform Mitigation
Project

DR. EMİN ERCAN CİHAN

Project
 Mentorships in Innovation Projects 2014-2019
DR. EMİN ERCAN CİHAN

DR. EMİN ERCAN CİHAN

 REFERENCES: TRAINING & CONSULTANCY
DR. EMİN ERCAN CİHAN

Ford Otosan (Yeni projeler): Project and system management trainings

Ford Otosan (Satınalma): Project and system management trainings
Beyçelik: Project and system management trainings
Sarıgözoğlu: Project and system management trainings

DR. EMİN ERCAN CİHAN

TI Fuild Systems: Project and system management trainings
Siemens: Innovation Project management trainings

Ercan Cihan, PhD Eczacıbaşı: Entrepreneurship and Intrapreneurship Project Management Program
Clarient: Project and conflict management
Arçelik: Agile project management
UKcast: Project organization structure
Onatus: New approaches in project management
Yıldız Technical University, Mechatronics Eng.: Project Management and New Curriculum Design
 DISTINCTIVE FEATURES OF THE TRAINING CONTENT
DR. EMİN ERCAN CİHAN

1 Advantage of industry-specific experience: proper guidance by

speaking the same language and aiming for the same goals

DR. EMİN ERCAN CİHAN

Customization of hybrid project methodologies and their
application areas based on the company and business line

3 Experience transfer supported by sector-specific solutions

 MASTER PROJECT MANAGEMENT
DR. EMİN ERCAN CİHAN

DECISION MAKING
The aim is to inform and guide participants using best-in-
class examples in the area of decision making. The training
presents new types of decision-making applications by
tailoring systems engineering and project management
methodologies to the company’s line of business. It explains
DECISION how the cognitive structure of decision making can be
practically applied in projects.
LEADERSHIP CONFLICT
LEADERSHIP

DR. EMİN ERCAN CİHAN

RISK This section addresses the concept of leadership in project
management from both organizational and functional
perspectives. What does it take to become a project leader?
How should a project leader behave? What are the
appropriate interpersonal and group behaviors, and how
should the project leader communicate?
RISK MANAGEMENT
CONFLICT MANAGEMENT The goal is to equip participants with the knowledge and
This module teaches how to approach and manage skills necessary to respond to different types of risks in
conflicts in projects and aims to instill this as a project management through the use of appropriate
practical skill. Why do conflicts arise in projects? techniques. What are the origins and boundaries of risk?
How can they be effectively managed? yönetilir? How is risk managed in traditional and agile projects? How is
risk addressed in contracts?
 Published paper in SCI Journal
DR. EMİN ERCAN CİHAN

DR. EMİN ERCAN CİHAN

Kybernetes, toplumun insani, sosyal, organizasyonel, teknolojik ve sürdürülebilir
yönlerinin ve bunların karşılıklı bağımlılıklarının anlaşılmasında gelişmeye kendini
adamış bilimsel bir dergidir. Bir dizi teori, metodoloji ve yaklaşımın ve bunların
disiplinlerarası bağlantılarının değerlendirilmesini teşvik eder.
 Published paper in SSCI-Q1 Journal & Ref in AI
DR. EMİN ERCAN CİHAN

DR. EMİN ERCAN CİHAN

 DR. EMİN ERCAN CİHAN
Published paper in SSCI Journal
DR. EMİN ERCAN CİHAN
 DR. EMİN ERCAN CİHAN
BUSINESS REFERENCES
DR. EMİN ERCAN CİHAN
 BUSINESS REFERENCES
DR. EMİN ERCAN CİHAN

FORD OTOSAN

DR. EMİN ERCAN CİHAN

SARIGÖZOĞLU
 DR. EMİN ERCAN CİHAN
BUSINESS REFERENCES

TI FLUID SYSTEMS
DR. EMİN ERCAN CİHAN
 BUSINESS REFERENCES
DR. EMİN ERCAN CİHAN

DR. EMİN ERCAN CİHAN

Beyçelik Gestamp
Kalıp ve Teknoloji
 BUSINESS REFERENCES
DR. EMİN ERCAN CİHAN

DR. EMİN ERCAN CİHAN

Beyçelik Gestamp
Otomotiv Sanayi A.Ş
 BUSINESS REFERENCES
DR. EMİN ERCAN CİHAN

FORD OTOSAN – PURCHASING GROUP

DR. EMİN ERCAN CİHAN

 Global Proje Doktoru
DR. EMİN ERCAN CİHAN

TRAINING & CONSULTING LTD.

Training and Mentoring Activities with Diverse Sectors and Teams

DR. EMİN ERCAN CİHAN

FORD OTOSAN SIEMENS
BEYÇELİK ECZACIBAŞI
SARIGÖZOĞLU CLARIANT
TI FLUID SYSTEMS
 ACADEMIC REFERENCES : MULTI-DICIPLINARY STUDIES
DR. EMİN ERCAN CİHAN

Prof. Dr. Özgür Kabak, İTÜ İşletme Fakültesi

Multi-Criteria Decision Making
Group Decision Making

DR. EMİN ERCAN CİHAN

Prof. Dr. Haydar Livatyalı, YTÜ Makina Fakültesi
Mechatronic System Design
Project Life Cycle Management in Mechatronics

Prof. Dr. Çiğdem Uslu, MÜ Endüstri Mühendisliği

Operation Research
Optimization
 ACADEMIC REFERENCES : MULTI-DICIPLINARY STUDIES
DR. EMİN ERCAN CİHAN

DR. EMİN ERCAN CİHAN

 DR. EMİN ERCAN CİHAN
INTERNATIONAL AWARD- 1
DR. EMİN ERCAN CİHAN
 ULUSLARARASI ÖDÜLLER – 2 THE BEST PAPER IPMA 60. YEAR
DR. EMİN ERCAN CİHAN

DR. EMİN ERCAN CİHAN

 INTERNATIONAL AWARD-– IPMA RESEARCH AWARD FINALIST
DR. EMİN ERCAN CİHAN

DR. EMİN ERCAN CİHAN

 INTERNATIONAL AWARD-– IPMA RESEARCH AWARD FINALIST
DR. EMİN ERCAN CİHAN

DR. EMİN ERCAN CİHAN

 DR. EMİN ERCAN CİHAN
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 PUBLISHING BOOK CHAPTER
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Chapter 7: Aligning Talent Management with Projects: Oriented Behavior Approach

DR. EMİN ERCAN CİHAN

 Published paper in SSCI Journal – WOS Q1
DR. EMİN ERCAN CİHAN

“NAVIGATING SUPPLY CHAIN PARADOXES: A COGNITIVE

FRAMEWORK FOR MANAGERIAL STRATEGY BASED ON SYSTEMATIC
LITERATURE SYNTHESIS” – DOI: 10.1108/JEIM-01-2025-0029

DR. EMİN ERCAN CİHAN

 DR. EMİN ERCAN CİHAN
TAOM 2025 BUDAPEST
DR. EMİN ERCAN CİHAN
 Course Purpose
DR. EMİN ERCAN CİHAN

Purpose
• Engineering knowledge in the business world
• Technical skills are not enough
• Decision making, leadership, and hidden business rules

Opening Message Training Philosophy

DR. EMİN ERCAN CİHAN

• Engineering is more than technical work • Sector specific
• Engineers who decide create impact • Real project cases
• This course explains the difference • Academic foundation

Engineer as Project Manager What Will You Learn?

• Translate technical to business language • How organizations really work
• Coordinate teams • Project-based thinking
• Manage risks • Limits of pure engineering logic
 Course key term: Strategy
DR. EMİN ERCAN CİHAN
Strategy
Strategy refers to a coherent set of long-term choices that guide how an organization allocates its resources, designs its
systems, and positions itself under conditions of uncertainty. Originating from the military concept of strategos (the art
of generalship), strategy has evolved into a foundational concept in business, engineering, and organizational
management.
At its core, strategy is about direction rather than action. While tactics focus on short-term execution and operational
efficiency, strategy determines what should be done, why it should be done, and what should deliberately be avoided.
Strategic decisions shape the structure of organizations, production systems, and supply chains over time.
In modern organizations, strategy operates across multiple levels:
•Product level (what is produced and why),

DR. EMİN ERCAN CİHAN

•Process level (how value is created),
•Human level (how people are organized, motivated, and led).
From an engineering perspective, strategy connects analysis to purpose. Engineers do not only optimize components or
processes; they design systems. Strategic thinking enables engineers and managers to move from raw data to knowledge
and ultimately to informed judgment, ensuring that decisions are context-aware and future-oriented.
Technological change has further elevated the importance of strategy. Organizations must continuously assess emerging,
pacing, key, and core technologies to decide when to invest, when to adapt, and when to exit. These choices directly
affect competitiveness, resilience, and long-term viability.
Finally, contemporary strategy extends beyond individual firms. Competitive advantage increasingly depends on
ecosystem orchestration, including supply chains, platforms, and industrial networks. Sustainable success is achieved not
only through internal efficiency, but through alignment between technology, structure, timing, and environment.
In summary, strategy is the disciplined practice of making consequential choices that align goals, systems, and
capabilities over time, enabling organizations to perform, adapt, and survive in complex and uncertain environments.
 Course key term: Strategy
DR. EMİN ERCAN CİHAN

What Is Strategy?
•Strategy is a long-term guiding logic, not a set of
actions
•Focuses on choices, positioning, and direction
•Operates under uncertainty and constraints
•Answers:
• What should we do?
• What should we not do?
• Why?

DR. EMİN ERCAN CİHAN

Strategy vs. Tactics Strategy in Engineering & Organizations
•Strategy •Connects data → information → knowledge → judgment
• Long-term orientation •Aligns:
• System-level decisions • Product design
• Shapes structure and capability • Process configuration
•Tactics • Human and technological systems
• Short-term actions •Modern strategy emphasizes:
• Operational execution • Technology selection
• Focus on efficiency and speed • System integration
•Good tactics cannot compensate for poor strategy • Ecosystem and supply-chain thinking
 Course key term: Business Reality, Strategy, and Complexity for Engineers
DR. EMİN ERCAN CİHAN

Modern business systems operate under constant pressure, uncertainty, and constraint. Unlike engineering systems,
where precision and optimization dominate, business environments require decision-making before certainty emerges.
Stakeholders exert competing demands, resources are limited, markets are volatile, and trade-offs are unavoidable. In
this context, engineers must adapt to non-linear, ambiguous environments where perfect data rarely exists.
Business complexity stems from the interaction of multiple stakeholders such as customers, shareholders, regulators,
suppliers, and employees, each with different and often conflicting expectations. These pressures create systemic
tension where decisions must balance speed, cost, quality, risk, and long-term viability. Managers frequently decide early
because waiting increases uncertainty and erodes competitiveness. In business, imperfect decisions made on time often
outperform perfect decisions made too late.

DR. EMİN ERCAN CİHAN

Value in business is not absolute or purely technical. It is perceived, contextual, and shaped by stakeholder satisfaction
and economic outcomes. Technical perfection alone does not guarantee value creation; in some cases, it can even
destroy value by increasing cost, delay, or inflexibility. Sustainable systems prioritize viability over optimization.
Firms no longer compete as isolated entities. They are embedded actors within overlapping ecosystems such as supply
chain networks, industrial clusters, consortia, platforms, and technopark environments. These ecosystems reduce
uncertainty through shared knowledge, pooled resources, institutional support, and coordinated action. Competitive
advantage increasingly depends on collaboration, orchestration, and the ability to operate within complex networks
rather than standalone efficiency.
The key lesson for engineers is clear: business success requires systemic thinking, acceptance of uncertainty, and
conscious trade-off management. Engineers must move beyond feasibility and optimization toward understanding
economic consequences, stakeholder reactions, and long-term system stability. In complex business environments,
survival belongs to organizations that balance precision with adaptability, control with flexibility, and short-term
performance with long-term continuity.
 Course key term: Business
DR. EMİN ERCAN CİHAN

Business Reality vs Engineering Why Business Is Complex Strategy, Ecosystems, and Survival
Logic Sources of Complexity Firms as Embedded Actors
Business Reality •Multiple stakeholders with conflicting •Supply chain networks
•Decisions precede certainty expectations •Industrial clusters
•Stakeholders drive pressure •Market volatility and competitive •Consortia and platforms
•Constraints shape outcomes pressure •Technopark ecosystems
•Trade-offs are unavoidable •Resource, time, and capability Strategic Advantage Comes From
Engineering Logic constraints •Reconfiguring the value system
•Seeks precision and optimal System Tension •Collaborating with complementors

DR. EMİN ERCAN CİHAN

solutions •Expectations exceed capacity •Managing ecosystems, not just
•Assumes complete data •Risk accumulates over time firms
•Controls systems •Every decision creates winners and Engineer’s Responsibility
Business Logic losers •Think systemically
•Accepts ambiguity Typical Trade-offs •Anticipate stakeholder reactions
•Manages uncertainty •Time vs cost •Balance short-term gains with
•Acts under pressure •Quality vs speed long-term viability
Key Message: •Innovation vs stability Final Takeaway:
Business moves before data is •Efficiency vs resilience Success comes from managing
complete. Engineers must adapt Key Insight: uncertainty, not eliminating it.
their mindset. There are no perfect solutions, only
viable ones.
 Course key term: Complexity
DR. EMİN ERCAN CİHAN

Complexity has become a defining characteristic of modern business, engineering, and project environments. Unlike
complicated systems, which may involve many components but remain predictable and controllable, complex systems
are shaped by nonlinear interactions, interdependence, emergence, and openness to context. In such systems,
outcomes cannot be reliably inferred from initial conditions or from the properties of individual components alone.
In project and business contexts, complexity manifests when decision-makers operate under partial knowledge, when
stakeholder interpretations diverge, and when system behavior changes during execution. Planning and control
mechanisms no longer function as predictive tools but instead act as sensemaking devices that support ongoing
interpretation and adjustment.

DR. EMİN ERCAN CİHAN

Real-world examples illustrate this clearly. Supply chain disruptions reveal how small shocks can cascade across financial,
operational, and contractual domains. Energy infrastructure projects demonstrate that technical feasibility alone is
insufficient when social, political, and legal systems interact. Product design changes show how local optimization can
generate unintended system-wide consequences. Human systems, such as teams and organizations, further highlight
that people do not behave as predictable components.
The critical managerial implication is that complexity cannot be eliminated or fully controlled. Instead, it must be
managed through adaptive governance, plural decision logics, continuous learning, and interpretive capability. High-
performing organizations adopt paradoxical thinking, balancing competing demands such as efficiency and resilience,
exploration and exploitation, global scale and local responsiveness.
In summary, complexity represents a condition in which no single model, perspective, or authority can fully represent
or control system behavior. Effective management under complexity requires shifting from optimization to adaptation,
from control to orchestration, and from certainty-seeking to informed sensemaking.
 Course key term: Complexity
DR. EMİN ERCAN CİHAN

What Is Complexity? Complexity vs. Complicated Why Complexity Matters in

Complexity refers to a systemic Complicated Systems Business
condition where outcomes cannot •Predictable cause–effect Where complexity appears
be reliably predicted due to: •Decomposable into parts •Supply chain disruptions
•Nonlinear interactions •Solved by expertise and best •Energy and infrastructure projects
•Interdependence among practices •Product design changes
elements •One correct solution •Organizational and team
•Emergence and adaptation over •Example: Aircraft engine, gearbox dynamics
time design Managerial implications

DR. EMİN ERCAN CİHAN

•Openness to context and Complex Systems •Planning becomes sensemaking
environment •Nonlinear and delayed cause–effect •Control gives way to adaptive
Key distinction •Behavior emerges from interactions governance
•Complicated = difficult but •Managed through adaptation and •Trade-offs and paradoxes are
predictable learning unavoidable
•Complex = uncertain, adaptive, •Multiple possible outcomes •Success requires plural
and context-dependent •Example: Organizations, innovation perspectives and continuous
Core insight (Williams): projects, supply chains interpretation
Complexity is not technical Key idea: Takeaway
difficulty, but a systemic challenge More knowledge improves Complexity cannot be optimized
to planning and control. complicated systems; learning and away.
feedback are essential in complex It must be understood, navigated,
systems. and governed.
 Course key term: Uncertainty
DR. EMİN ERCAN CİHAN

Uncertainty is a central concept for engineers operating in business, project, and strategic environments. At its core,
uncertainty can be defined as the gap between what decision-makers need to know to act confidently and what they
actually know at the moment of decision. This “knowledge-gap” view is widely adopted in project management and
operations research, as it emphasizes that uncertainty is not merely a lack of information, but a dynamic condition that
evolves over time. Uncertainty manifests differently across domains. In engineering, uncertainty often relates to
tolerances, material properties, and measurement errors. These uncertainties are typically quantifiable and can be
reduced through testing, modeling, and experimentation. In business contexts, uncertainty stems from market demand,
customer behavior, and competitor reactions. These factors are only partly quantifiable and are strongly shaped by
human decision-making. Project uncertainty involves changing requirements, technology maturity, and stakeholder
alignment, all of which evolve during execution and cannot be fully resolved upfront. At the strategic level, uncertainty

DR. EMİN ERCAN CİHAN

becomes deeper, driven by regulation, geopolitics, and long-term industry shifts, where decisions must be made without
reliable or complete data. A useful framework for understanding uncertainty distinguishes four types of knowledge
conditions. Known-knowns are elements we understand and can plan for, such as budgets or deadlines. Known-unknowns
are recognized gaps, such as regulatory approval times, which require risk management and buffers. Unknown-knowns
represent tacit or unarticulated knowledge, often embedded in experience or organizational silos. Unknown-unknowns
involve unforeseen disruptions, such as technological breakthroughs or global crises, and demand adaptability and
resilience rather than prediction. Practical examples illustrate why uncertainty is often complex rather than merely
complicated. A technically successful new product launch may still fail commercially due to unpredictable customer
perceptions and competitor reactions. In R&D projects, not knowing the final solution is intrinsic to the process, and
learning emerges through experimentation. Organizational restructuring highlights social and political uncertainty, where
human reactions and power dynamics lead to non-linear outcomes. Similarly, supply chain redesign and infrastructure
projects combine technical clarity with socio-technical and political uncertainty.
 Course key term: Uncertainty
DR. EMİN ERCAN CİHAN

Finally, uncertainty must be distinguished from related concepts. Ambiguity arises when information has multiple
plausible interpretations, while vagueness results from imprecise or poorly defined concepts. More data does not
necessarily resolve ambiguity, whereas vagueness can often be reduced through clarification. For engineers entering
business roles, understanding these distinctions is critical: uncertainty cannot always be eliminated, but it can be
managed through sensemaking, adaptation, and learning rather than pure optimization.

What Is Uncertainty? Uncertainty Across Domains Types of Uncertainty & Practical

•Definition: •Engineering: Insight
Uncertainty is the gap Tolerances, material properties, measurement •Known-Knowns: Plan and optimize
between what we need to error •Known-Unknowns: Manage risk,

DR. EMİN ERCAN CİHAN

know to decide confidently → Usually quantifiable, often reducible by testing build buffers
and what we actually know. •Business: •Unknown-Knowns: Surface tacit
•Key idea: Market demand, customer behavior, competitor knowledge, enable dialogue
Uncertainty is not just reactions •Unknown-Unknowns: Build
missing data, it is a dynamic → Partly quantifiable, human-driven adaptability and resilience
condition that changes over •Projects: Key classroom insight:
time. Requirements, technology maturity, stakeholder You can control technical design.
•Why it matters for alignment You cannot fully control markets,
engineers: → Evolve during execution people, or the future.
Technical solutions operate •Strategy:
inside markets, organizations, Regulation, geopolitics, long-term industry shifts
and political systems. → Deep uncertainty, decisions without reliable
data
DR. EMİN ERCAN CİHAN
Course key term: Risk
Risk in Projects and Organizations Core Characteristics of Risk
Purpose •Risk is linked to a specific future event
Risk management is a foundational capability for •It involves probability and impact
organizations operating under time pressure, •It threatens goals, plans, or strategies
uncertainty, and strategic constraints. In project •It may cause loss, harm, or failure
and business contexts, risk represents the Risk Identification and Analysis
probability and impact of undesirable future Risk management begins with systematic identification using
events that may prevent an organization from structured techniques such as brainstorming, expert judgment, Delphi
achieving its objectives. Understanding, technique, root cause analysis, checklists, SWOT analysis, and
identifying, and managing risk enables assumption analysis. Identified risks are documented in a Risk Register,

DR. EMİN ERCAN CİHAN

organizations to operate more efficiently and where they are ranked using qualitative or quantitative methods.
make informed decisions under uncertainty. Risk exposure is commonly calculated as:
Risk vs. Uncertainty Risk Exposure = Probability × Impact
A critical distinction exists between risk and Impacts may be measured across multiple dimensions:
uncertainty. •Cost (e.g., labor, material, outsourced)
•Risk refers to situations where the likelihood of •Time (days, weeks, months)
adverse outcomes can be estimated. •Objectives, strategy, or operational plans
•Uncertainty reflects the indefiniteness of Quantitative and Qualitative Assessment
outcomes where probabilities are unclear or •Qualitative analysis ranks risks using ordinal scales (low, medium,
unknown. high).
Uncertainty is analyzed in order to measure and •Quantitative analysis estimates numerical values and distributions
manage risk. Without uncertainty, risk analysis (triangular, uniform, discrete) to model uncertainty and forecast
would not be necessary. outcomes.
 Human Behavior and Risk Course key term: Risk
DR. EMİN ERCAN CİHAN

Perception Managing Risk

What Is Risk? Risk Analysis Logic
People value gains and losses Risk Response Options
Risk in Projects and Risk Exposure
asymmetrically. Attitudes toward risk •Avoid
Business •Risk Exposure =
differ, influencing decision-making. •Reduce (mitigate)
•Risk = probability of an Probability × Impact
Optimism and pessimism around •Transfer (insurance)
undesirable future event Impact Dimensions
deterministic estimates can •Share
•Risk threatens objectives, •Cost
significantly distort risk assessments, •Defer
strategy, plans, or execution •Time
particularly in complex or high-stakes •Accept with contingency
•Risk ≠ Uncertainty •Strategic objectives
projects.
• Risk is measurable •Operational plans Decision Reality
Risk Response Strategies •People perceive gains

DR. EMİN ERCAN CİHAN

• Uncertainty is the Risk Identification
Organizations respond to risks and losses differently
lack of outcome Tools
through: •Optimism and
clarity •Brainstorming
•Avoidance
Key Insight •Delphi technique pessimism bias estimates
•Reduction (mitigation) •Risk management
We analyze uncertainty in •Root cause analysis
•Transfer (e.g., insurance)
order to manage risk. •Checklists and supports better decisions
•Sharing under uncertainty
assumptions analysis
•Deferral
•Expert judgment Final Message
•Acceptance with contingency Managing risk effectively
Output
planning
•Risk Register turns uncertainty from a
Effective risk management does not
•Ranked risks threat into a strategic
eliminate uncertainty but transforms
•Mapped to cost and advantage.
risk into a manageable strategic
schedule
variable.
 Course key term: Requirements
DR. EMİN ERCAN CİHAN

Requirements engineering forms the backbone of successful system, product, and project development. It is the
disciplined process of translating stakeholder needs and business goals into clear, verifiable, and traceable requirements
that guide design, development, and delivery. Poorly defined requirements are a leading cause of project failure, cost
overruns, delays, and stakeholder dissatisfaction.
A fundamental distinction exists between needs, requirements, and specifications.
•Needs represent high-level stakeholder expectations or problems to be solved.
•Requirements are single, testable “shall” statements defining what the system must do.
•Specifications are structured documents that may contain hundreds of requirements and describe how a system is built
and how it works.
Requirements exist at multiple levels, including business requirements, stakeholder requirements, solution requirements,

DR. EMİN ERCAN CİHAN

functional requirements, non-functional requirements, and transition requirements. Together, these levels ensure
alignment between strategic intent and technical realization.
A core concept in requirements engineering is Verification and Validation (V&V).
•Verification asks: Are we building the system right? It focuses on compliance with specifications and is typically an internal
activity involving testing, inspection, and analysis.
•Validation asks: Are we building the right system? It confirms that stakeholder needs are met in the intended operational
environment and often involves external acceptance.
High-quality requirements exhibit specific attributes, often described through the basic “ilities”: traceability, affordability,
feasibility, usability, producibility, maintainability, simplicity, operability, and sustainability, with predictability as a
complementary attribute. These characteristics help differentiate products and reduce lifecycle risk.
Requirements management is not static documentation. It is a continuous lifecycle activity involving elicitation, analysis,
validation, verification, change control, and traceability. Frameworks such as Systems Engineering, APQP, and PPAP
illustrate how requirements drive quality, risk reduction, and predictable outcomes across industries.
 Course key term: Requirements
DR. EMİN ERCAN CİHAN

What Are Requirements? Good Requirements & Lifecycle Verification vs Validation

Core Concepts Impact Verification
•Need: What stakeholders want Attributes of Good Requirements •“Are we building the system right?”
or expect •Traceable •Internal process
•Requirement: A single, testable •Feasible and affordable •Testing, inspection, analysis
“shall” statement •Usable and operable •Confirms compliance with
•Specification: A document •Maintainable and sustainable specifications
containing many requirements •Simple but sufficient Validation
•“Are we building the right system?”

DR. EMİN ERCAN CİHAN

Key Question Lifecycle Role
•What must the system do before •Drive design decisions •Stakeholder acceptance
design begins? •Enable quality planning (APQP, •Confirms fitness for intended use
Why It Matters PPAP) •Occurs in the operational
•Clear requirements reduce risk, •Support predictable delivery environment
rework, and misalignment Final Takeaway Key Insight
Clear requirements = predictable •A system can be verified but still fail
outcomes = safer and more validation
successful systems.
 Course key term: System models
DR. EMİN ERCAN CİHAN

Modern engineering and business problems increasingly involve complex systems rather than isolated technical tasks. The
attached material introduces system models as structured ways to understand, design, verify, and manage such complexity
across the full lifecycle of products and projects.
A system is not merely a collection of parts but a whole defined by the interactions among its components. As emphasized
through Russell Ackoff’s systems thinking, optimizing individual parts does not guarantee optimal system performance.
Effective management therefore focuses on managing interactions, not just components.
The material distinguishes process work from project work. Processes are repetitive, ongoing activities that use existing
capabilities, while projects are temporary endeavors designed to create unique outcomes and benefits. Projects unfold along
the arrow of time, progressing through phases, gates, and decision points, while facing both initiated and emergent changes.
To cope with complexity, several system development models are introduced:

DR. EMİN ERCAN CİHAN

•The Waterfall Model supports environments where requirements are well known and stable, offering simplicity and control
but limited flexibility.
•The V-Model strengthens assurance through early and continuous verification and validation, increasing success probability
in regulated or safety-critical systems.
•The Spiral Model emphasizes iterative learning and risk analysis, making it suitable for large, mission-critical projects with
high uncertainty.
•Hybrid models combine stage-gate discipline with iterative and parallel work packages to balance control and adaptability.
The material further explains system decomposition, where complex systems are broken into functional and physical
building blocks, supported by mathematical, physical, and domain-specific models. Synchronization across mechanical,
electrical, control, and software domains is critical to maintain consistency with system specifications.
Finally, Verification and Validation (V&V) are presented as distinct but complementary activities. Verification ensures
compliance with specifications and requirements, while validation confirms that the system fulfills stakeholder needs in its
operational context.
Overall, the content positions system models as managerial and cognitive tools, enabling engineers and managers to
navigate uncertainty, align design decisions with requirements, and deliver value across the product and project lifecycle.
 Course key term: System models
DR. EMİN ERCAN CİHAN

What Is a System? System Models Along the Arrow of Managing Complexity Through Models
•A system is defined by Time •System decomposition into functions and
interactions, not isolated •Waterfall Model building blocks
parts • Sequential, low cost, rigid •Synchronization across domains:
•Whole ≠ sum of optimized • Works when requirements are • Mechanical
components stable • Electrical/Electronics
•System performance •V-Model • Software
depends on how parts • Early and continuous •Verification: “Did we build it right?”
work together verification & validation •Validation: “Did we build the right thing?”

DR. EMİN ERCAN CİHAN

•Focus: manage • Higher success in regulated •One product lifecycle can include multiple
interactions, not silos environments project lifecycles
•Based on Ackoff’s systems •Spiral Model
thinking • Iterative cycles, risk-driven
• Suitable for large, mission-
critical projects
•Hybrid Models
• Combine control (stage-gate)
with flexibility (iterations)
 Course key term: Stakeholders
DR. EMİN ERCAN CİHAN

Organizations do not operate solely for shareholders. They serve and interact with a wide range of stakeholders whose
interests, expectations, and power levels often differ and conflict. Stakeholders are defined as any individual, group, or
organization that can affect or be affected by a project or organizational activity, either positively or negatively.
While shareholders focus primarily on financial return and firm valuation, stakeholders seek operational, social,
regulatory, or personal benefits. These differences create inherent tensions. Power dynamics determine which interests
dominate decision-making, making stakeholder management a critical managerial and engineering capability.
In projects, stakeholder management emerges because misaligned expectations, hidden agendas, and unaddressed
resistance create risk. Effective stakeholder management therefore aims to:
•Identify conflicts, gaps, and incompatibilities between stakeholder requirements
•Enable reconciliation strategies before issues escalate

DR. EMİN ERCAN CİHAN

•Maintain continuous, two-way communication
•Monitor changes in stakeholder attitude, engagement, and influence
A structured stakeholder management process is essential, particularly in complex and international projects. This process
typically includes:
[Link] of all relevant stakeholders
[Link] based on power and interest
[Link] using stakeholder maps and matrices
[Link] through tailored communication strategies
[Link] stakeholder responses and shifting positions over time
The slides emphasize the critical role of the project sponsor, who is often the most powerful stakeholder. Sponsors
provide financial resources and legitimacy, while end users ultimately receive the benefits. Ultimately, successful projects
depend on commitment, not just compliance. Stakeholder management is therefore not a soft activity but a strategic
discipline that enables value creation, legitimacy, and sustainable project success.
 Course key term: Stakeholder
DR. EMİN ERCAN CİHAN

Who Are Stakeholders? Stakeholder Management in Projects Engineers and Stakeholder Dynamics
•Stakeholders = individuals or •Why it matters: •Engineers act as value translators
groups positively or negatively • Conflicting expectations • Technical → economic →
affected • Power asymmetries strategic impact
•Include: • Hidden agendas •Balance:
• Customers •Core steps: • Cost vs. quality
• Employees • Identify stakeholders • Shareholder pressure vs.
• Suppliers • Prioritize (power–interest) stakeholder value
• Regulators • Visualize (maps & matrices) •Key risks:

DR. EMİN ERCAN CİHAN

• Communities • Engage through • Ignoring stakeholders creates
•Shareholders ≠ Stakeholders communication hidden risk
• Shareholders seek • Monitor attitude and • Groupthink replaces real
financial return influence consensus
• Stakeholders seek •Project sponsor is the most critical •Goal: move stakeholders from
operational or social stakeholder resistant → supportive → leading
benefit
•Conflicts are natural and
unavoidable
 Course key term: Time
DR. EMİN ERCAN CİHAN

Effective time management is not about doing more tasks, but about making better decisions on how time, energy, and
attention are allocated. In knowledge-intensive environments such as engineering, project work, and academia, time
pressure emerges not only from workload, but also from poor prioritization, cognitive overload, and constant interruptions.
This module presents time management as a three-level system:
strategies, techniques, and skills.
At the strategic level, time management defines direction. Strategies answer the question: What kind of work should receive
priority? Examples include focusing on high-impact activities, protecting deep work, or reducing stress through planning.
At the operational level, time management techniques translate strategy into daily action. Techniques such as Time
Blocking, Pomodoro, Pareto Analysis (80/20), Getting Things Done (GTD), Eisenhower Matrix, Pickle Jar Theory, Kanban,
Eat the Frog, and Parkinson’s Law each address different time-related problems, such as overload, procrastination, lack of

DR. EMİN ERCAN CİHAN

focus, or unclear priorities. These techniques are complementary, not alternatives.
At the behavioral level, time management skills determine sustainability. Skills such as prioritization, concentration,
organization, self-discipline, stress management, communication, and delegation enable individuals to apply techniques
consistently under real-world constraints.
The module emphasizes that no single technique fits all situations. Instead, effectiveness comes from choosing the right tool
at the right moment. For example:
•Eisenhower Matrix and Pareto Analysis help decide what matters.
•Pickle Jar Theory and Eat the Frog protect time for priorities.
•Time Blocking and GTD structure commitments.
•Kanban and Pomodoro support execution and flow.
•Parkinson’s Law prevents unnecessary time expansion.
Finally, operational performance concepts such as Lead Time, Cycle Time, and Takt Time are introduced through a
hamburger production example to connect time management with systems thinking and operations management. These
concepts illustrate the difference between customer experience, internal efficiency, and demand-driven pacing.
 Course key term: Time
DR. EMİN ERCAN CİHAN

What Is Time Management? Core Time Management Techniques From Personal Time to System Time
•Time management is about •Deciding what matters •Lead Time → Total customer
planning, prioritizing, and using • Eisenhower Matrix (urgent waiting time
time effectively vs important) •Cycle Time → Active work time per
•Not about doing more, but about • Pareto Analysis (80/20) unit
doing what matters •Protecting priority work •Takt Time → Pace required by
•Three levels: • Pickle Jar Theory demand
• Strategies → Direction • Eat the Frog Hamburger example:
• Techniques → Execution •Planning and organizing •Lead Time = order to delivery

DR. EMİN ERCAN CİHAN

• Skills → Sustainability • Time Blocking •Cycle Time = cooking and assembly
Key message: Tools alone do not • Getting Things Done (GTD) •Takt Time = burgers per minute
work without skills and strategic •Executing and controlling flow needed
intent. • Kanban Key takeaway:
• Pomodoro Time management applies to both
• Parkinson’s Law individual productivity and
Key insight: Techniques are operational systems.
complementary, each solves a
different time problem.
 Course key term: Quality
DR. EMİN ERCAN CİHAN

Quality management is a foundational concept in operations, project management, and engineering practice. Quality
refers to the ability of a product, service, or process to meet stated or implied customer requirements. In project
environments, quality is not an abstract ideal but a measurable outcome directly linked to customer satisfaction, cost,
reliability, and long-term competitiveness.
A critical distinction in quality management is between quality and grade. Quality reflects conformance to requirements
and fitness for use, whereas grade refers to a classification or ranking of products that perform the same function but
differ in technical characteristics. A low grade product is not necessarily low quality, but low quality is always a problem.
This distinction is essential for managerial decision-making, especially in procurement and project scope definition.
Modern quality theory emphasizes process quality rather than final inspection. Influential scholars such as Shewhart,

DR. EMİN ERCAN CİHAN

Deming, Juran, Feigenbaum, Crosby, Ishikawa, and Taguchi collectively shifted the focus from detecting defects to
preventing them. Quality is now understood as a systemic responsibility involving leadership, continuous improvement,
employee participation, and data-driven decision making.
Variation is central to understanding quality. Common (controlled) causes are inherent in the process and can only be
reduced by changing the process itself. Special (assignable) causes originate outside the normal process and must be
identified and eliminated. Statistical Process Control (SPC) and control charts are essential tools for distinguishing
between these two types of variation and for determining whether a process is stable or unstable.
The cost of quality framework highlights that quality has economic consequences. Costs are divided into prevention
costs, appraisal costs, and failure costs. Organizations that invest in prevention and early detection significantly reduce
internal and external failure costs such as rework, scrap, warranty claims, customer dissatisfaction, and loss of
reputation. The principle of “doing it right the first time” is both a quality and a financial strategy.
 Course key term: Quality
DR. EMİN ERCAN CİHAN

What Is Quality? Quality, Variation, and Process Quality Management Systems and
Core Concepts Control Impact
•Quality: Ability to meet stated or •Common (controlled) causes vs. •Quality Gurus: Deming, Juran, Crosby,
implied customer requirements special (assignable) causes of Feigenbaum, Ishikawa, Taguchi
•Fitness for use vs. conformance to variation •Prevention over inspection
specifications •Stable vs. unstable processes •Cost of Quality:
•Quality ≠ Grade •Statistical Process Control (SPC) • Prevention costs
•Accuracy vs. Precision and control charts • Appraisal costs

DR. EMİN ERCAN CİHAN

•Quality in projects = meeting •Rule of Seven and assignable • Failure costs (internal &
customer requirements cause investigation external)
consistently •Quality is achieved by improving •Tools: Pareto, Fishbone, Histograms,
processes, not by inspection Control Charts, FMEA, QFD
alone •Strategic role of quality in
competitiveness and customer
satisfaction
 Course key term: Leadership
DR. EMİN ERCAN CİHAN

Leadership is not a formal position but a capability to influence direction, behavior, and outcomes under conditions of
uncertainty and time pressure. In engineering and project environments, leadership becomes critical because technical
excellence alone is insufficient to coordinate people, manage constraints, and adapt to change.
The material emphasizes that leadership is contextual and situational. Different tasks, teams, and phases of a project
require different leadership behaviors. This is clearly illustrated through Daniel Goleman’s leadership model, which
identifies multiple leadership styles, each suitable for specific conditions rather than a single “best” style.
Goleman’s framework includes:
•Directive (Commanding) leadership: useful in crises when rapid compliance is required.

DR. EMİN ERCAN CİHAN

•Pacesetting leadership: sets high performance standards through example.
•Affiliative leadership: prioritizes people and relationships.
•Democratic leadership: involves team members in decision-making.
•Coaching leadership: focuses on long-term development and unlocking potential.
•Visionary (Authoritative) leadership: provides direction and shared purpose.
Effective leaders understand when to apply which style and how to combine them. Balance, not rigidity, defines
leadership effectiveness.
The study also connect leadership with time behavior, referencing Parkinson’s Law: work expands to fill the time
available. Leaders recognize that poorly defined goals and loose deadlines create inefficiency, especially in knowledge-
intensive and white-collar work. Leadership therefore includes structuring time, setting boundaries, and creating focus.
 Course key term: Leadership
DR. EMİN ERCAN CİHAN

What Is Leadership? Goleman’s Leadership Styles Leadership, Time, and Change

•Leadership = influence, not •Directive: “Do what I say” •Parkinson’s Law:
position •Pacesetting: “Do as I do, now” • Work expands to fill
•Essential in projects and •Affiliative: “People come first” available time
engineering systems •Democratic: “What do you think?” •Leaders:
•Manages: •Coaching: “What is your goal?” • Set clear goals and
• Uncertainty •Visionary: “Follow me” deadlines
• Time pressure Key insight: • Prevent inefficiency and

DR. EMİN ERCAN CİHAN

• Human coordination No single best style, effectiveness delay
•Leadership effectiveness comes from balance and •Responding to change > following
depends on context adaptability. plans blindly
•Core question:
• Power or justice? Authority
or legitimacy?
 Course key term: Innovation
DR. EMİN ERCAN CİHAN

Innovation is the process of transforming ideas into From a managerial perspective, newness is relative. An innovation
value-creating outcomes. While creativity is about may be:
generating novel ideas, innovation begins when those •New to the world
ideas are implemented, adopted, and produce tangible •New to the market
benefits. In this sense, innovation is often described as •New to the firm
creativity with a job to do. •Or simply repositioned for a new use or segment
A critical distinction exists between invention and Each type of newness implies different levels of risk, uncertainty,
innovation. Invention refers to the creation of and managerial challenge. Radical innovations carry high
something new, such as a technology or method, uncertainty and potential impact, while incremental innovations

DR. EMİN ERCAN CİHAN

whereas innovation refers to the successful application dominate daily business competitiveness through continuous
of that novelty in a market or organizational context. improvement.
Many inventions never become innovations because Organizations must manage innovation portfolios, not isolated
they fail to generate value, scale, or adoption. ideas. Successful firms balance:
Innovation therefore requires use, context, and value •Derivative innovations for short-term performance
creation, not novelty alone. •Platform innovations for medium-term advantage
Innovation rarely emerges from isolated breakthroughs. •Breakthrough innovations for long-term survival
Instead, most innovations result from recombining •Advanced R&D to fuel future opportunities
existing knowledge, technologies, or capabilities in new Innovation is inherently cross-functional. Design and engineering
ways. Examples such as the smartphone, ride-sharing focus on feasibility and performance, operations address
platforms, or streaming services illustrate that manufacturability and scalability, marketing translates novelty into
innovation often lies in integration and business models customer value, and finance evaluates risk and return. Innovation
rather than new core technologies. success depends on alignment across these functions.
 Course key term: Innovation
DR. EMİN ERCAN CİHAN

Creativity, Invention, and Innovation Types of Innovation and Managing Innovation Strategically
•Creativity: Generating new and Newness •Innovation is a portfolio, not a
original ideas •Innovation is relative, not single project
•Invention: Creating something novel absolute •Balance required:
•Innovation: Applying novelty to •Forms of newness: • Derivative (short term)
create value • New to the world • Platform (medium term)
•Key insight: • New to the market • Breakthrough (long term)
• Invention = novelty creation • New to the firm •Innovation is cross-functional:
• Innovation = value-creating • Repositioned products • Engineering, Operations,

DR. EMİN ERCAN CİHAN

application •Most innovations are: Marketing, Finance
•Most inventions never become • Incremental •WHO–WHAT–WHY alignment
innovations • Recombination-based determines success
•Different types imply different •Core message:
risks and processes Innovation is systematic value
creation under uncertainty
 Course key term: Organization
DR. EMİN ERCAN CİHAN

An organization is not merely a formal structure of roles and reporting lines; it is a living coordination system that aligns
people, tasks, authority, and purpose under changing conditions. In today’s volatile and technology-driven environments,
effective organizations must be both structured and adaptive.
The material emphasizes that modern organizations require agility and flexibility to respond to market changes. This
means moving away from rigid hierarchies toward designs that allow faster decision-making, learning, and adaptation.
Clarity about who is responsible for what remains essential, but clarity does not require centralization. Instead,
responsibility can be clearly defined while authority is distributed.
A key organizational principle highlighted is distributed authority, where everyone is both a leader and a follower
depending on the situation. In such systems, leadership is not tied to position but to contribution, expertise, and context.

DR. EMİN ERCAN CİHAN

This is particularly relevant in engineering, project-based, and knowledge-intensive organizations, where problems are
complex and cannot be solved through top-down control alone.
Another important aspect is alignment between individual work and organizational purpose. Organizations perform better
when team members can align their tasks with their skills, interests, and professional identities. This creates greater
autonomy, ownership, and accountability, which in turn improves motivation and performance.

Organizations can be governed primarily through authority, control, and compliance (power), or through fairness,
transparency, and legitimacy (justice). Sustainable organizations rely less on coercive power and more on perceived
fairness, shared purpose, and trust. Especially in modern professional organizations, power without justice leads to
disengagement, resistance, and inefficiency.
Key takeaway:
A well-designed organization balances clarity and flexibility, distributes authority without losing accountability, and sustains
legitimacy by privileging justice over raw power.
 Course key term: Organization
DR. EMİN ERCAN CİHAN

What Is an Organization Today? Distributed Authority and Ownership Justice or Power?

•More than structure and •Clear roles, not rigid hierarchies •Two organizational logics:
hierarchy •Distributed authority: • Power: control and compliance
•A coordination system aligning: • Everyone can lead and follow • Justice: fairness and legitimacy
• People •Benefits: •Sustainable organizations rely on:
• Tasks • Faster decisions • Trust
• Authority • Better use of expertise • Transparency
• Purpose • Higher autonomy and • Shared purpose
•Must be: •Organization design = strategic

DR. EMİN ERCAN CİHAN

ownership
• Agile •Work aligned with skills and interests choice, not administration
• Flexible
• Clear in responsibilities
 Course key term: Conflict
DR. EMİN ERCAN CİHAN

Conflict is an unavoidable feature of organizational and project life. It arises when two or more parties perceive their
interests, goals, values, or needs as incompatible, creating tension and opposition. Contrary to common belief, conflict is
not inherently negative. What determines outcomes is how conflict is understood and managed, not whether it exists.
Conflict emerges due to limited resources, different priorities, time pressure, profit expectations, and market
competition. In project and engineering environments, these pressures are intensified by deadlines, technical
uncertainty, and interdependence between teams and suppliers.
Unresolved conflict creates significant hidden costs: wasted employee time, damaged communication and relationships,
reduced motivation and morale, productivity loss, turnover, and even litigation. Research and practice show that routine
work alone can suffer minimum 25% efficiency loss due to unresolved conflict, highlighting its economic as well as social
impact. Conflict management strategies vary depending on stakes, time pressure, and relationship importance:

DR. EMİN ERCAN CİHAN

•Collaborating: trust-based, long-term, win–win solutions
•Forcing: unilateral decision when stakes are very high
•Accommodating: temporary harmony when trust is low
•Compromise: middle ground under time constraints
•Avoiding: postponement when information is missing
The classic orange case demonstrates the difference between distributive thinking and integrative problem-solving. Only
by asking why parties want something can resources be allocated efficiently. This logic underpins mediation, which
enables solutions impossible in courts or arbitration.
Negotiation concepts such as ZOPA (Zone of Possible Agreement) and BATNA (Best Alternative to a Negotiated
Agreement) help parties understand their bargaining space and leverage. Effective conflict resolution depends on
knowing both the shared zone of agreement and one’s fallback options.
Conflict is also closely linked to team development stages. Teams naturally move through Forming, Storming, Norming,
and Performing phases.
 Course key term: Conflict
DR. EMİN ERCAN CİHAN

What Is Conflict and Why It Managing Conflict Effectively Conflict, Teams, and Performance
Matters •Conflict management styles: •Team development stages:
•Conflict = perceived • Collaborating (win–win, long • Forming →
incompatibility of interests or goals term) • Storming →
•Exists due to: • Forcing (high stakes, authority- • Norming →
• Limited resources based) • Performing
• Time pressure • Accommodating (temporary •Conflict peaks in Storming
• Different priorities harmony) •Properly managed conflict:
• Market competition • Compromise (middle ground) • Builds trust

DR. EMİN ERCAN CİHAN

•Unresolved conflict causes: • Avoiding (delay for information) • Clarifies roles
• Productivity loss •Mediation enables solutions beyond • Improves performance
• Low morale win–lose logic •Core question:
• Damaged relationships •Key negotiation tools: • Justice or power
• Legal and turnover costs • ZOPA
• BATNA
 Course key term: Decision
DR. EMİN ERCAN CİHAN

Decision making is a fundamental managerial and organizational process that involves selecting a course of action among
alternatives to achieve defined objectives. In business and engineering contexts, decisions shape strategy, operations,
innovation, investments, and risk management. Contrary to classical economic assumptions, decision making is rarely fully
rational and is instead constrained by cognitive limits, time pressure, uncertainty, and incomplete information.
From an Operations and Systems perspective, decision making is a multi-dimensional process embedded in human systems.
It spans individual, managerial, and group levels, and it interacts continuously with context, organizational capability, and
human cognition. Modern decision theory recognizes that multitasking is ineffective, assumptions must be revisited, and the
illusion of certainty often distorts judgment. As a result, probabilities, trade-offs, and uncertainty dominate real-world
decisions rather than absolute answers.
Decision theories can be grouped into three complementary perspectives.

DR. EMİN ERCAN CİHAN

Normative approaches describe how decisions should be made in an ideal, rational world.
Descriptive approaches explain how decisions are actually made by humans in practice.
Prescriptive approaches provide tools and methods to improve decision quality despite human limitations.
A central concept is bounded rationality, introduced by Herbert Simon, which explains why individuals and organizations rely
on heuristics rather than exhaustive optimization. Cognitive biases, loss aversion (Prospect Theory), and dual-process thinking
(System 1 vs. System 2) further demonstrate that decision making is as much psychological as it is analytical.
In complex organizational settings, decisions increasingly involve multiple stakeholders and multiple criteria, leading to
conflicts, trade-offs, and the need for structured group decision-making techniques. Methods such as Brainstorming,
Brainwriting, Nominal Group Technique (NGT), and Delphi support collective sense-making, reduce power imbalances, and
improve decision legitimacy.
Ultimately, decision making functions as a continuous system of balance and control, guiding organizations toward
sustainable performance rather than a single “optimal” outcome. The modern emphasis has shifted from finding the perfect
solution to designing robust, adaptive, and transparent decision processes.
 Course key term: Decision
DR. EMİN ERCAN CİHAN

What Is Decision Making? Decision Theories & Human Limits Group Decision Making & Techniques
•Decision making = choosing •Normative: How decisions should •Group decisions increase complexity and
among alternatives to achieve be made (rational ideal) conflict
goals •Descriptive: How decisions are •Multiple objectives, stakeholders, and
•Exists at individual, managerial, actually made criteria
and group levels •Prescriptive: Tools to improve Techniques
•Not purely rational → shaped decisions •Brainstorming: idea generation without
by cognition, context, and Key Concepts judgment
constraints •Bounded rationality (Herbert •Brainwriting: silent idea development

DR. EMİN ERCAN CİHAN

•Multitasking does not work; Simon) •Nominal Group Technique (NGT):
assumptions must be revisited •Cognitive bias, System 1 vs. System structured, face-to-face ranking
•Decisions involve probabilities, 2 thinking •Delphi Method: anonymous, remote
not certainty •Prospect Theory: losses hurt more consensus building
than equivalent gains Key Insight
•Optimum = best possible outcome •Focus shifts from “finding the best
under constraints, not perfection answer” to understanding the problem
and stakeholder perspectives.
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DR. EMİN ERCAN CİHAN

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DR. EMİN ERCAN CİHAN

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justice or power ?