MODULE 2

At the end of this module the student will be able to learn the
following:

2.1 PLANNING
The Nature of Planning
Planning Defined
Planning at Various Management Level
The planning Process
Types of Plan
Making Plan Effective

2.2 ORGANIZING
Reasons for Organizing
Organized Defined
The Purpose of the Structure
The Formal Organization
Informal Groups
Types of Organizational Structures
Types of Authority
The Purpose of committees
2.3 STAFFING
What is Staffing?
The Staffing Procedure
Human Reources Planning
Recruitment
Selection
Induction and Orientation
Training and Development
Performance Appraisal
Employment Decsion
Separations
2.1 PLANNING
The nature of planning. To minimize mistakes in decision- making
planning is undertaken. A plan which is the output of planning, provides
a way of achieving desired results. In the implementation of activities,
the plan serves as as a useful guide.
Planning refers to management Function involves anticipating future
trends and determining the best strategies and tactics to achieve
organizational strategies.
Planning Activities undertaken at various levels are:
1. Top Management level- strategic planning
2. Middle Management level- intermediate planning
3. Lower Management level- operational planning
Strategic Planning refers to the process of determining the major goals
of the organization and the policies and strategies for obtaining and
using resources to achieve those goals.
Intermediate planning refers to determining the contributions that
submits ca make with allocated resources.
Operational Planning refers to the process of determining how specific
tasks ca be accomplished on time with available resources.
THE PLANNING PROCESS
1. Setting organizational, divisional or unit goals.
2. Developing strategies or tactics to reach those goals.
3. Determining resources needed and
4. Setting standards.
TYPES OF PLANS
1. Marketing Plan it is a document for implementing and controlling
an organizations marketing activities related to marketing strategy
2. Production plan is a document that states the quantity output a
company produces.
3. Financial plan it is a document of current financial situation of the
firm, analyzes financial needs and financial activities.
 4. Human resources it is a document that indicate the human
resources of the company base on the requirements of the
company’s strategic plans.

Making PLanning Effective

Planning maybe made successful if the following are observed:
1. Recognize the planning barriers
2. Use of aids to planning
The planning barriers, according to Plunkett and Attner, are as
follows:
1. Manager’s inability to plan
2. Improper planning process
[Link] of commitment to the planning process
[Link] information
5. Focusing on the present at the expenses of the future
6. Too much reliance on the planning department
7. Concentrating on only the controllable variables
Among the aids to planning that may be used are”
1. Gather as much information as possible
2. Develop multiple sources of information
3. Involve others in the planning process

Activity 2-1
1. Why is planning an important activity for engineer managers?
2. How may “planning” be defined?
3. What planning activities are undertaken at various
management levels?
4. What are the steps in the planning process?
5. What are the types of plans? How may they classify?

2.2 ORGANIZING
Reasons for Organizing. Organizing is undertaken to facilitate the
implementation of plans. In effective organizing, steps are undertaken
to breakdown the total job into more manageable man-size jobs. Doing
these will make it possible to assign particular tasks to particular
persons.
Organizing is a management function which refers to structuring of
resources and activities to accomplished objectives in an efficient and
effective manner.
THE PURPOSE OF STRUCTURE:
1. The relationship between tasks and authority for individuals and
departments.
2. Formal relationship, the number of levels in hierarchy of the
organization, and span of control
3. The grouping of individuals into apartments and department into
organization
4. The system to effect coordination of effort in both vertical
authority and horizontal tasks directions.
Engineer manager must concern with the following:
1. Division of labor – determining the scope of work
2. Delegation of authority- the process of assigning various degrees
of decision-making authority to subordinates
3. Departmentation – the grouping of related jobs, activities.
4. Span of work – the number of people who report directly to a
given manager.
5. Coordination – the linking of activities that serves to achieve a
common goal or objective.

FORMAL ORGANIZATION
Formal organization Is the structure that details the lines of
responsibilities, authority, and position.
The formal structure is described by management through:
1. Organizational chart – a diagram of organizational official
positions and formal lines of authority.
2. The organizational manual provides written description, details
the functions of major organizational units and describes job
procedures.
 3. Policy manuals describe s personnel activities and company
policies.
The informal organization it is difficult for management to detect these
perversions and considerable harm can be done to the company.

Types of Organizational Structures

Organizations may be classified into three types:
1. Functional organization- this is a form of departmentalization in
which everyone engaged in functional activity, such as engineering, or
marketing ,is group into one unit.
Fig. 1 A Typical Functional Organization Chart of Construction Company

PRESIDENT

Vice President Vice President Vice President Vice President

Marketing Construction Finance Human Resouirce

2. Product or market organization- its feature of operating by

divisions is appropriate for a large corporation with many product lines
in several related industries.
 PRESIDENT

Vice President Vice President Vice President

Industrial Residential
Government
Accounts Accounts Accounts

Marketing Marketing marketing

Construction Construction Construction

Finance Finance Finance

Human Human Human

Resources Resources Resources

3. Matrix organization- is a structure with two( or more) channels of

command , two lines of budget authority and two sources of
performance and reward. It was designed to keep employee in a central
pool and allocate them to various project in the firm according to the
length of time they were needed.

Types of Authority
It consist of three types:
1. Line Authority- a manager’s right to tell subordinates what to do
and then see that they do it.
2. Staff Authority- a staff specialist’s right to give advice to a superior.
 3. Functional authority - a specialist’s right to oversee lower level
personnel involved in that specialty, regardless of where the personnel
are in organization.

The Purpose of Committees

A committee is a formal group of persons formed for specific purpose.
For instance the production planning committee is often staffed by top
executives for marketing, production, research, engineering, and
finance, who works part-time to evaluate and approve product ideas.
Committees maybe classified as follows:
1. Ad hoc Committee- one created for short-term purpose and have a
limited life.
2. Standing Committee- it is relatively permanent committee that deals
with issues on an ongoing basis.

Activity 2-2
1. Why is it important for engineer manager to acquire skills in
organizing?
2. How may organizing be defined?
3. What purpose do organizational structure serve?
4. What must be the concern of engineer manager when
structuring the organization?
5. What is the purpose of formal organization?
6. What is meant by “line authority”? by “staff authority”?
2.3 STAFFING
Staffing is a management function that determines human resource
needs, recruits, selects, trains and develops human resources for jobs
created by an organization.
THE STAFFING PROCEDURE:
The staffing process consist of the following steps:
1. Human resources planning
2. Recruitment
3. Selection
4. Induction and orientation
5. Training and development
6. Performance appraisal
7. Employment decisions (monetary rewards, transfers, promotion
or demotion) and
8. Separations

Human Resources:
Human resource planning may involve three activities:
1. Forecasting – an assessment of future human resource needs
2. Programming – relating the forecasted human resources needs
to personnel objectives and goals.
3. Evaluation and control – to monitoring human resource action
plans and evaluating their success.

Recruitment:
Recruitment refers to qualified to apply for vacant positions in the
company.
Source of applicants:
1. The organization’s current employees
2. Newspaper advertising
3. Schools
4. Referral from employees
5. Recruitment firms
6. Competitor
 Selection:
Selection refers to the act of choosing from those that are
available individual to succeed on the job.
The ways of determining the qualification of a job candidate
1. Application blanks
2. References
3. Interviews
4. Testing
Types of Tests:
Test may be classified as follows:
1. Psychological test
a. Aptitude test
b. Performance test
c. Interest test
2. Physical examination

Induction and Orientation:

In induction, the new employee is provided with necessary
information about the company.
In orientation, the new employee is introduced to their immediate
working environment and co-workers.
Training and Development:
Training refer to the learning that is provided to improve
performance on the present job.
Training programs consist of nonmanagers and managers.
Training Program for Nonmanagers:
1. On-job- training
2. Vestibule school
3. Apprenticeship program
4. Special courses
Training Programs for Managers
1. In-basket
2. Management games
3. Case studies
Performance appraisal method:
Performance appraisal methods are classified:
[Link] scale method
2. Easy method
3. Management by objectives method
4. Assessment center method
5. checklist method
6. Work standard method
7. Ranking method
10. Critics method
Employment decisions are classified as:
1. Monetary
2. Reward
3. Promotion
4. Transfer
5. Demotion

Separation:
Separation may be classified as voluntary or involuntary.
Voluntary - when made voluntarily , the organization’s
management must find out the real reason. if the presence of a defect
in organization is determined correction action is necessary.
Involuntary separation or termination is the last option that the
management exercise when an employee’s performance is poor or
when he/she committed an act violating the company rules and
regulation.
Activity 2-3.
1. Why is staffing an important activity?
2. What activities are undertaken in staffing?
3. What is the purpose of human resources planning?
4. What are the possible resources of applicants for vacation
positions in the firm?
5. What is the implication of the cost of the “wrong decisions” in
the selection process?

Research:
1. Audio Visual (video blog) for final exam
Interview an Engineer in your locality who becomes the general
manager/manager of construction firm/ company.
Inquire about the planning activities undertaken by the
construction firm/company.
Prepare a document report about the result of the interview with
pictures (short coupon)
2. Prepare an organization chart of engineering firm/construction
firm showing line and staff relationship.