Management: 2.

External Environment
(factors beyond control):
Management is the process of planning, • Economic conditions
organizing, directing, and controlling • Political/legal environment
resources (people, funds, materials) to • Competition
achieve organizational goals. It requires • Technological changes
leadership, technical knowledge, and • Social/cultural factors
decision-making skills to coordinate • Natural environment
activities, set policies, establish goals,
and evaluate performance. Ownership:

Engineering Management: Ownership refers to having title and

control over an enterprise’s assets and
Engineering management combines profits. Common forms:
engineering principles with management
practices to oversee technical and 1. Sole Proprietorship –
business operations. Professionals in Owned by an individual, personally liable
this field manage projects, financials, and for debts.
strategic planning, ensuring projects are 2. Partnership – Owned by
completed on time, within budget, and two or more individuals sharing profits
with high-quality standards. They also and losses.
help organizations maximize the value of 3. Limited Liability Company
technology investments. (LLC) – Owners (members) have limited
liability.
Industrial Enterprise: 4. Corporation – A separate
legal entity, owned by shareholders.
An industrial enterprise involves 5. Cooperative – Owned and
combining land, labor, and capital to controlled by its members, who are its
produce tangible goods. It uses customers.
engineering and management principles
to transform raw materials into finished Types of Ownership:
products efficiently and competitively.
The success of an enterprise depends on 1. Private Ownership –
resources, technology, and workforce Owned by individuals or groups, not
productivity. publicly traded.
2. Public Ownership – Owned
Enterprise Environment: by the public through shares traded on
stock exchanges.
1. Internal Environment
(factors within control): Division of Labor & Specialization:
• Management
• Personnel Work is divided based on people’s skills,
• Production system location, and conditions to improve
• Financial system efficiency.
• Culture
 8. Matrix Structure –
Combines functional and product-based
Managerial Competence: grouping.
9. Flat Structure – Minimal
1. Character – Integrity and hierarchy, more flexibility.
values. 10. Network Structure –
2. Knowledge – Technical and Decentralized, independent
conceptual understanding. organizations working together.
3. Experience – Practical
skills. Management Styles:
• Technical Competence –
Ability to handle tasks. 1. Autocratic – One person
• Human Relations – makes decisions.
Effective communication and leadership. 2. Consultative – Seeks input
• Conceptual Competence – but makes final decisions.
Strategic decision-making. 3. Persuasive – Convincing
• Financial Competence – others to adopt decisions.
Managing budgets and finances. 4. Democratic – Involves
• Leadership – Guiding group input in decision-making.
teams toward a clear vision. 5. Laissez-Faire – Minimal
• Organizational supervision, employee freedom.
Competence – Efficient organizational 6. MBWA (Management by
systems. Walking Around) – Managers observe
• Innovation & Creativity – work on the floor.
Solving problems and exploring
opportunities. Seven Habits of Highly Effective People
(by Stephen Covey):
Organizational Structures:
1. Be Proactive – Take control
1. Line Organization – Direct, of actions.
straight-line responsibility. 2. Begin with the End in Mind
2. Line and Staff – Staff – Set clear goals.
departments assist the line organization. 3. Put First Things First –
3. Pure Functional – Prioritize important tasks.
Functions take priority over lines of 4. Think Win-Win – Seek
authority. mutual benefit.
4. Line and Functional Staff – 5. Seek First to Understand,
A mix of line and functional organization. Then Be Understood – Listen actively.
5. Hierarchical Structure – 6. Synergize – Collaborate for
Clear chain of command. better results.
6. Functional Structure – 7. Sharpen the Saw –
Departments based on skills. Maintain personal growth and balance.
7. Divisional Structure –
Groups by product, geography, or
customer.
 dissemination of communication
directives related to the organization and
its technologies.
Henri Fayol’s 14 Principles of
Management: Methods of Communication

1. Division of Work – 1. Written Communication:

Specialization improves productivity. Involves printed materials like plans,
2. Authority – Managers need contracts, memos, meeting minutes, and
authority but also responsibility. design documents.
3. Discipline – Clear rules and 2. Oral/Verbal
discipline are essential. Communication: Exchange of
4. Unity of Command – One information through spoken words,
supervisor per employee. allowing for immediate feedback. Careful
5. Unity of Direction – One choice of words is essential.
plan for the team. 3. Non-Verbal
6. Subordination of Individual Communication: Conveying messages
Interests – The group’s goals take priority. through body language, gestures, eye
7. Remuneration – Fair pay contact, and tone of voice.
for employees. 4. Visual Communication:
8. Centralization – Balance in Enhancing communication with visual
decision-making. aids such as graphs, charts, and
9. Scalar Chain – Clear illustrations to make information sharing
hierarchy. more effective.
10. Order – Organized
workplace. Steps in Project Communication
11. Equity – Fair treatment of Management
employees.
12. Stability of Tenure – 1. Plan Communication
Reduce turnover. Management: Develop a communication
13. Initiative – Encourage management plan that identifies
employee creativity. stakeholder information needs and
14. Esprit de Corps – Promote preferences, including language,
team spirit. medium, and frequency. Strategies for
information exchange (interactive, push,
and pull methods) are also established.
Communication Management 2. Manage Communication:
Implement the communication plan,
Definition: Communication management collecting, creating, and distributing
is the process of planning, executing, information as required throughout the
monitoring, and controlling the flow of project lifecycle.
information within a project or 3. Monitor Communication:
organization. It ensures that stakeholders Continuously check that stakeholders’
are informed, aligned, and engaged, information needs are met and adjust the
which is critical to project success. This communication plan as necessary.
includes the organization and
 • Blogs
• Formal written documents
• Spreadsheets

Benefits of Effective Communication

Communication Blockers Management

1. Accusing: Blaming others 1. Coordination and

creates a negative atmosphere and Collaboration: Facilitates teamwork.
blocks communication. 2. Improved Decision Making:
2. Judging: Quick judgments Informed choices are made based on
can lead to feelings of insecurity and shared information.
hinder open dialogue. 3. Effective Conflict
3. Insulting: Managing anger Resolution: Open communication helps
is crucial; insults disrupt communication. address and resolve issues.
4. Diagnosis: Validating 4. Improved Customer
information sensitively is important to Relations: Clear communication
avoid hurting feelings. enhances customer satisfaction.
5. Sarcasm: Sarcasm breeds 5. Better Employee
disrespect and can shut down Engagement: Involves employees and
communication. boosts morale.
6. Globalizing: Extreme
language (e.g., “always,” “never”) can
alienate others.
7. Threats or Orders: Using
authority negatively damages team
dynamics.
8. Interrupting: Frequent
interruptions can discourage open
conversation.
9. Changing the Subject:
Sudden topic changes signal disinterest.
10. Calling for Reassurance:
Publicly seeking validation can make
others uncomfortable; do it privately.

Communication Channels

• Face-to-face conversations
• Videoconferencing
• Audio conferencing
• Emails
• Written letters and memos
• Chats and messaging