WHAT IS ENGINEERING?

The profession in which a knowledge of the

mathematical and natural science gained by
study, experience, and practice is applied with
judgement to develop ways to utilize,
economically, the materials and forces of
nature for the benefit of mankind (1979, US.
Engineering societies).
What is Engineering?
• Design for customer requirements
• Solve technical problems
• Application of science/principles to solve problems
within constraints
• Trade-offs between safety, economy, performance,
serviceability
• Efficient application of resources
 WHAT IS MANAGEMENT?
Is the process of working with and through others to achieve
organizational objectives in a changing environment. Central to this
process is the effective and efficient use of limited resources.

A set of activities (including planning and decision making,

organizing, staffing, directing and controlling) directed at an
organization's resources (human, financial, physical and informational)
with the aim of achieving organizational goals in an efficient and
effective manner (Griffin).
 Engineer vs. Manager
• Level of detail
• Planning horizon
• Number of tasks (chaos level)
• Time per task
• Typical tasks
• Time communicating
• Job satisfaction
 Engineer vs. Manager
ENGINEERS MANAGERS

LEVEL OF DETAIL FOCUS ON THE JOB AT HAND FOCUS ON THE TEAM

PLANNING HORIZON DARING AND FOCUS BUDGET, RESOURCES, AND TIME

COMMUNICATING / DECISION KNOWLEDGE AND SKILLS CONSTRAINTS

MAKING
TASKS ASSIGNMENT PERFORM INDIVIDUAL TASKS PLANNING, LEADING,
CONTROLLING AND
ORGANIZING
OUTPUT WORK BASED / JOB QUANTIFIABLE QUALITATIVE ANALYSIS
SATISFACTION
TECHNICAL SKILLS SKILLS OF THE MEMBER OF HIS
TEAM
FUNCTIONS OF ENGINEERING

Research Sales
Design and Consulting
development Government
Testing Teaching
Manufacturing Management
Construction
 THE ENGINEER IN VARIOUS TYPES OF
ORGANIZATION

Level One – those with minimal engineering jobs

Level Two – those with a moderate degree of engineering jobs

Level Three – those with a high degree of engineering jobs

ENGINEERING MANAGEMENT
Engineering management refers to the activity combining “technical knowledge with the
ability to organize and coordinate worker power, materials, machinery, and money”.

One Golden Rule

• The one golden rule about management is that there are

no golden rules
• It is not an exact science, like Engineering

• Tasks are predictable and People are not

Organization
Organization is a system which operates through human activity.
Organizations are very complex social formations, their links can’t be
described with only one theory.

Organization Theories concerns 3 levels:

◼ Macro: cooperation among different organization
◼ Mezzo: structures of the organizations, and influencing factors
◼ Micro: behavior of the members of the organizations,
motivation, conflict etc.
WHO ARE MANAGERS?
Someone who coordinates and oversees the work of other people
in order to accomplish organizational goals.

Why Become a Manager?

• Financial reward
• Broader view of the company
• Broader influence
• Power/prestige
• Job security
• Interesting variety of work
• Technical obsolescence
 LEVELS OF MANAGEMENT
CEO
Top Level Management COO
CIO
General Mgr
Middle Level Management Plant Mgr
Regional Mgr
Office Manager
First-Line Management
Shift Supervisor
Department Manager
Team Leader
What is Management?
 Definition: Coordinating and overseeing the work activities
so that they are completed efficiently and effectively with and
through other people
 Efficiency: getting the most output from the least input
 Effectiveness: completing activities so that the organization’s
goals are attained.
MANAGEMENT IS…

Efficiency
Getting work
done through
others Effectiveness
MANAGEMENT FUNCTIONS
Classical Updated
Management Functions Management Functions

Planning
Making Things Happen
Organizing
Meeting the Competition
Staffing
Organizing People,
Directing/Leading Projects, and Processes

Controlling
PLANNING
Planning is determining the objectives and formulating the methods
to achieve them. It is more simply said than done. A job well
planned is half done. During planning one needs to ask oneself the
following:

What am I trying to accomplish i.e. what is my objective?

What resources do I have and do I need to accomplish the same?
What are the methods and means to achieve the objectives?
Is this the optimal path?
ORGANIZING
Is the process of bringing together physical, financial and human
resources and developing productive relationship amongst them for
achievement of organizational goal.

“To organize a business is

to provide it with everything useful ”.
STAFFING
It is the function of manning the organization structure and
keeping it manned.

Concerned with the evaluation, selection and

development of employees to fit the needs
of the organizational structure.
STEPS IN STAFFING
Manpower Planning
Recruitment, Selection, and Placement
Training and Development
Remuneration
Performance Appraisal
Promotions and Transfer
DIRECTING/LEADING
It is that part of managerial function which actuates the
organizational methods to work efficiently for achievement
of organizational purposes.

Motivating people to do their jobs towards

the attainment of the goals of the
organization.
CONTROLLING
It implies measurement of accomplishment against the
standard and correction of deviation if any to ensure
achievement of organizational goals.
Measuring and correcting actual performance against established
standards by the organization.

a. Setting up standards for measuring progress towards objectives

b. Comparing actual performance against standards
c. Correcting deviations from established standards
 Core skills and their use in the different levels
Managerial levels

Lower Middle Top

Conceptual skills
Human skills

Technical skills
 Why Study Management?
 The universality of management
The reality that management is needed in all types,
sizes, levels, and areas of organization.
 The reality of work
You will either manage or be managed in your
future career.
 Rewards and challenges of being a manager
Moral Dilemmas
are situations or problems where a person
has to make a difficult choice;

Are situations in which there is a choice to be made

between two options;
where a person has to choose between a moral and an
immoral act.
Factors that causes Moral Dilemmas in Business
Pressure from Management
• Each company’s culture is different, but some companies stress profits and results above all
else.
“ The end justifies the means’

• Whistle blowers may be reluctant to come forward for fear of being regarded as untrustworthy
and not a team player.

Ambition and Discrimination

• Individual workers may be under financial pressure or simply hunger for recognition.

• Diversity is an important part of business.

Factors that causes Moral Dilemmas in Business

Negotiation Tactics
• Doing business with other firms can also present opportunities for breaches.

Solutions

• It is in an organization’s best interest to provide ethical training to its employees, to help

them identify unethical behavior and give them tools with which to comply.
Examples of Ethical Issues in Business

Discrimination

You’re the boss in a predominantly male environment. The presence of a new female employees
stirs up conflict because your company has not had a chance to conduct sensitivity training.
Some of your male employees make inappropriate remarks to your new employee. She
complains to you; in response, you sanction those responsible for the conduct. You also wonder
if it would be wise to move your new female employee to another position where she would be
less likely to draw attention. Treating your female employee differently based on her gender or in
response to a harassment complaint may be considered discriminatory and unethical conduct.
Examples of Ethical Issues in Business

Kickback
an amount of money that is given to someone in return for providing help in a secret and
dishonest business deal.

You’re a business manager with an employment contract. The contract requires you to work
solely for your employer and use your talents to attract new clients to the business. If you begin
attracting more clients that you believe your employer can reasonably handle, you may wonder
if there would be an ethical issue with your diverting that excess business elsewhere and taking
the commission. If you don’t, at minimum, disclose the idea to your employer, you will likely be
in breach of both your contractual and ethical duties.
Examples of Ethical Issues in Business

Side Deals
is an agreement, either written or verbal, which is made to modify any written agreement with
your customer that are outside the normal contract process and does not have the standard
approvals.

• a verbal guarantee to accept back unsold products to encourage customers to place a larger
upfront order;
• accepting returns that were not required to be accepted under the terms of the original
arrangement;
• verbally offering a larger than normal discount on the next purchase that was not part of the
original arrangement;
• allowing other products not specified in the original arrangement to be included without
additional consideration
Examples of Ethical Issues in Business

Partners
You’re a partner in a business and see a great deal of profitability on the horizon. You don’t
believe that your partner deserves to profit from the business’ future success, because you don’t
like his personality. You may wonder if you could simply take his name off the bank accounts,
change the locks and continue without him. If you proceed with this course of action, you would
likely be in violation of your ethical and legal obligation to act in good faith concerning your
partner. The better course of action may be to simply buy out his interest in the business.

Article 1770: A partnership must have a lawful object or purpose, and must be
established for the common benefit or interest of the partners.
Examples of Ethical Issues in Business
Gross Negligence

You’re on the board of directors for a publicly traded corporation. You and your fellow board
members, in hopes of heading off early for the holidays, rush through the investigatory process
involved in a much anticipated merger. As a board member, you have a duty to exercise the
utmost care respecting decisions that affect the corporation and its shareholders. Failing to
properly investigate a matter that affects their interests could be viewed as gross negligence
supporting a breach of your ethical and legal duty of care.
Examples of Ethical Issues in Business

Negligence vs Gross Negligence

Your security officer knew about a planned hostile boycott but didn't tell you. He's
guilty of negligence, but it doesn't warrant dismissal.

You have a security guard at the exit of your gold recovery plant. His job is to
search all employees leaving to avoid theft. You're worried theft's increasing so you
install a CCTV camera to check the searching process. Over three days the footage
shows one particular guard doesn't search a single employee. You can dismiss him
for gross negligence.
 What Ethical Laws must a Business Follow in order to
Succeed?
The Golden Rule
“Do unto others as you would have them do unto you”

Put the Customer First

Putting profits before customers, ultimately affects the long-term reputation of your brand
and undermines customer loyalty.

Tell the Truth

Earning and keeping customer trust is essential for business success

Be a Good Citizen
Engaged employees and a strong community image increase business success.
Ways to Promote Ethical Conduct

Train Employees
Hold regular sessions on ethics and how to approach ethical dilemmas among staff.

Reward Ethical Behavior

Provide rewards for solid ethical behavior

Lead by Example
Employees generally follows company examples set forth for them by management
employees.
Consider Work-Life Balance
Pay attention to signs of burnout or discontent among staff, and take steps to address these
types of issues when they present themselves.

“They are most likely to make a good ethical decisions at work when they have a
better sense of work-life balance”.
SOCIAL RESPONSIBILITY AND GOVERNANCE

Corporate Social Responsibility (CSR)

Describes an organization's obligation to act in ways that serve both its interests and the
interests of society at large

Corporate Governance

Refers to the active oversight of management decisions and company actions by boards of
directors. Businesses are required by law to have boards of directors elected by
stockholders to represent their interests. The governance exercised by these boards most
typically involves hiring, firing, and compensating the CEO and top management, assessing
strategy, and verifying financial records. The expectation is that board members will hold
management accountable for ethical and socially responsible leadership.