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1–1Copyright © 2010 Nkumbwa
Why Study Engineering Management?Why Study Engineering Management?
• The better you can work with people, the more successful you will be in both your personal and your professional lives.– Employers want to hire employees
who can participate in managing the firm.
– Even nonmanagers (Individual
Contributors) are being trained
to perform management functions.
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1–2Copyright © 2010 Nkumbwa
Why Study Eng. Management? (cont’d)Why Study Eng. Management? (cont’d)
• The study of management builds the skills needed in today’s workplace to succeed in:– Becoming a partner in managing your organization
through participative management.
– Working in a team and sharing in decision making and other management tasks.
• The study of management also applies directly to your personal life in helping you to:– Communicate with and interact with people every day.
– Make personal plans and decisions, set goals, prioritize what you will do, and get others to do things for you.
• Society Needs Leaders and Team Players – Be Successful in our Community, Religious, Social,
Professional, Recreational and Other Organizations.– Become Leaders for a “Just and Humane World”
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1–3Copyright © 2010 Nkumbwa
What is a Manager’s Responsibility?What is a Manager’s Responsibility?
• Manager– The individual responsible for achieving
organizational objectives through efficient and effective utilization of resources. Participative?
• The Manager’s Resources– Human, financial, physical, and informational
• Performance– Means of evaluating how effectively and
efficiently managers use resources to achieve objectives.
– Today often means “How” as well as “What”
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1–4Copyright © 2010 Nkumbwa
What Does It Take to Be a Successful Manager?What Does It Take to Be a Successful Manager?
Exhibit 1–2
• Management Qualities (Survey of Execs.)– Integrity, industriousness, and the ability
to get along with people
• Management Skills– Technical – Human and communication (Teaming)– Conceptual and decision-making skills
• “Systems Thinking” & “Critical Thinking”
• The Ghiselli Study(6 Traits of Manager Success – Inverse Order)6) Initiative, 5)self-assurance,4) decisiveness,
3) intelligence, 2) need for occupational achievement, and 1) supervisory ability
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1–5Copyright © 2010 Nkumbwa
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1–6Copyright © 2010 Nkumbwa
What Do Managers Do?What Do Managers Do?
• Management Functions (Different Scope at job level)– Planning
• Setting objectives and determining in advance exactly (?) how the objectives will be met.
• Monitor for Change and Anticipate or React• PDCA – Plan – Do – Check - Act
– Organizing• Delegating and coordinating tasks
and allocating resources to achieve objectives.
– Leading• Influencing employees to work
toward achieving objectives. • Setting an Example (Shadow of the Leader)
– Controlling• Establishing and implementing mechanisms to
ensure that objectives are achieved.
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1–7Copyright © 2010 Nkumbwa
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1–8Copyright © 2010 Nkumbwa
The Systems Relationship among the Management FunctionsThe Systems Relationship among the Management Functions
Exhibit 1–3
Planning
Organizing
Leading
Controlling
Management Functions
Management Skills
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1–9Copyright © 2010 Nkumbwa
Management RolesManagement Roles
• Role– A set of expectations of how one will behave in a
given situation.
• Management Role Categories (Mintzberg)– Interpersonal
• Figurehead, leader, and liaison
– Informational• Monitor, disseminator, and spokesperson
– Decisional• Entrepreneur, disturbance handler, resource
allocator, and negotiator
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1–10Copyright © 2010 Nkumbwa
Ten Roles Managers PlayTen Roles Managers Play
Exhibit 1–4
Managers play various roles as necessary while performing their management functions so as to achieve organizational objectives.
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1–11Copyright © 2010 Nkumbwa
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1–12Copyright © 2010 Nkumbwa
Differences Among ManagersDifferences Among Managers
• The Three Levels of Management– Top managers
• CEO, President, or Vice President
– Middle managers
• Sales manager, Branch manager, or Department head
– First-line managers
• Crew leader, supervisor, head nurse, or office manager
– Individual Contributors (ICs)
• Non-management operative employees
– Workers in the organization who are supervised by first-line managers.
• Professionals/Specialists/Technicians (Knowledge Workers)
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1–13Copyright © 2010 Nkumbwa
Management Levels and Functional AreasManagement Levels and Functional Areas
Exhibit 1–5
INDIVIDUAL CONTRIBUTORS OFTEN REPORT ANYWHERE
SOME ORGANIZATIONS “FLIP” THIS CHART UPSIDE DOWN
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1–14Copyright © 2010 Nkumbwa
Types of ManagersTypes of Managers
• General Managers– Supervise the activities of several departments.
• Functional Managers– Supervise the activities of related tasks.– Common functional areas:
• Marketing/Sales/Product Development• Operations/Production/Services Delivery• Finance/Accounting• Human Resources/personnel management• Infrastructure (IT, Real Estate, Legal)
• Project Managers– Coordinate employees across several functional
departments to accomplish a specific task.
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1–15Copyright © 2010 Nkumbwa
Management Skills and FunctionsManagement Skills and Functions
• Differences among management levels in skill needed and the functions performed:
Exhibit 1–6
Planning
Organizing
Leading
Controlling
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1–16Copyright © 2010 Nkumbwa
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1–17Copyright © 2010 Nkumbwa
Individual Management StylesSkill Builder
Individual Management StylesSkill Builder
• What is Your Preferred Management Style?• 12 Points Possible…
–Autocratic–Consultative–Participative–Empowerment–Combinations or Flexible
• Best Management Style?– Adaptive or Situational Leadership
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1–18Copyright © 2010 Nkumbwa
Differences between Large and Small BusinessesDifferences between Large and Small Businesses
Exhibit 1–7
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1–19Copyright © 2010 Nkumbwa
Differences between Large and Small Businesses (cont’d)Differences between Large and Small Businesses (cont’d)
Exhibit 1–7 cont’d
ALSO OFTEN APPLIES TO NON-PROFITS AND CIVIC ORGANIZATIONS, WITH FOCUS ON THEIR MISSION
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1–20Copyright © 2010 Nkumbwa
New Workplace Issues and ChallengesNew Workplace Issues and Challenges
Technology and Speed
Globalization and Diversity
Knowledge, Learning,
Quality, and Continuous Improvement
Change, Creativity, Innovation, and Entrepreneurship
Participative Management,
Empowerment, and Teams
KnowledgeManagement
Ethics and Social
Responsibility
Networking and Boundaryless Relationships
GENERATIONAL DIFFERENCES
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1–21Copyright © 2010 Nkumbwa
New Workplace Issues and Challenges (cont’d)New Workplace Issues and Challenges (cont’d)
• Knowledge, Learning, Quality, and Continuous Improvement– Information is the foundation of knowledge
which, in turn, is the foundation of competitive advantage. People (employees) are the competitive advantage!• Knowledge workers• The learning organization
• Knowledge Management– Involves everyone in an organization in sharing
knowledge and applying it to continuously improve products and processes.
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1–22Copyright © 2010 Nkumbwa
New Workplace Issues and Challenges (cont’d)New Workplace Issues and Challenges (cont’d)
• Change, Creativity, Innovation, and Entrepreneurship– Knowledge management requires that people change in order to continually improve.
– The speed of change in modern business has increased because of globalization and changes in technology. And other factors listed.
– Creativity is coming up with new ideas for improvements, and innovation is implementing those ideas.
– Entrepreneurship is about generating creative ideas and using them through innovation.
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1–23Copyright © 2010 Nkumbwa
New Workplace Issues and Challenges (cont’d)New Workplace Issues and Challenges (cont’d)
• Participative Management, Empowerment, and Teams– Empowering employees to share in
performing management functions by working in teams.
– Learning organizations manage knowledge well by empowering teams to be creative and innovative.
• Ethics and Social Responsibility– Managerial integrity
• SOX Compliance after Financial Scandals– Situational responses
• e. g. Katrina, Haiti
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1–24Copyright © 2010 Nkumbwa
New Workplace Issues and Challenges (cont’d)New Workplace Issues and Challenges (cont’d)
• Networking and Boundaryless Relationships– Electronic networks
• Beware the informality of e-mail, miss-interpreted messages and first impressions
• Can be distracting/off task
– Relationship networks– Virtual integration
QUESTION – ARE ELECTRONIC “TOOLS” CHANGING THE QUALITY OF RELATIONSHIPS? E-Mail, NetMeeting, Video Conferences?
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1–25Copyright © 2010 Nkumbwa
Microsoft Case QuestionsMicrosoft Case Questions
1.Which type of resource played the most important role in the success of Microsoft?
a. human c. financial b. physical d.
informational
2. Which of the management skills is stressed most in the case study?
a. technical b. human and communication c. conceptual and decision-
making
3. Which of the management functions is stressed most in the case study?
a. planning c. leadingb. organizing d. controlling
4. Bill Gates' participation in and coordination of small units and his delegation of authority to managers to run their departments are examples of the __ management function.
a. planning c. leadingb. organizing d. controlling
5. Which primary management role did Bill Gates use to achieve success?
a. interpersonal-leader b. informational-monitor c. decisional-negotiator
6. Bill Gates is at which level of management?
a. top b. middle c. first-line
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1–26Copyright © 2010 Nkumbwa
Microsoft CaseMicrosoft Case
7. Which type of manager is Bill Gates?
a. general b. functional c. project
8. Bill Gates has greater need for which skills?
a. technical rather than conceptualb. conceptual rather than technicalc. a balance of both
9. How does Bill Gates spend most of his time?a. planning and organizing b. leading and controlling c. a balance of both a and b
10. Would Ghiselli (6 Traits – page 10) agree that Bill Gates has supervisory ability?a. Yes b. No
11. Give examples of some of the tasks Bill Gates performs in each of the four management functions.
12. Give examples of some of the tasks Bill Gates performs in each of the three management roles.
13. Do you think you would like to work tor Bill Gates? Explain your answer.
14. Are Bill Gates and Microsoft ethical and socially responsible?
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1–27Copyright © 2010 Nkumbwa
Learning OutcomesLearning Outcomes
1. Describe a manager’s responsibility.
2. List and explain the three management skills.
3. List and explain the four management functions.
4. Identify the three management role categories.
5. List the hierarchy of management levels.
6. Describe the three different types of managers.
7. Describe the differences among management levels in terms of skills needed and functions performed.
After studying this chapter, you should be able to:
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1–28Copyright © 2010 Nkumbwa
Learning Outcomes (cont’d)Learning Outcomes (cont’d)
8. Define the following key terms:
manager planning
manager’s resources organizing
performance leading
management skills controlling
technical skills management role categories
human and communication skills levels of management
conceptual and decision- making skills types of managers
management functions knowledge management
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1–29Copyright © 2010 Nkumbwa
New Workplace Issues and Challenges (cont’d)New Workplace Issues and Challenges (cont’d)
• Technology and Speed– E-business: work done by using electronic
linkages (including the Internet) between employees, partners, suppliers, and customers.
– E-commerce: business exchanges or transactions that occur electronically.
• Globalization and Diversity– Mergers are creating larger globalized firms.– Firms competing globally have to act locally.– Diversity is increasing as minorities grow and
markets globalize.
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1–30Copyright © 2010 Nkumbwa
E-CommerceE-Commerce
Exhibit 1–8
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1–31Copyright © 2010 Nkumbwa
Learning OutcomesLearning Outcomes
1. State the major similarities and differences between the classical and behavioral theorists.
2. Describe how systems theorists and contingency theorists differ from classical and behavioral theorists.
3. Define the following key terms:
After studying this appendix, you should be able to:
classical theorists systems theorists
behavioral theorists sociotechnical theorists
management science theorists contingency theorists
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1–32Copyright © 2010 Nkumbwa
Classical TheoryClassical Theory
• Classical Theorists– Focus on the job and management functions to
determine the best way to manage in all organizations.
• Scientific Management– Best way to maximize job performance– Fredrick Winslow Taylor
• Father of Scientific Management– Frank and Lillian Gilbreth
• Work efficiency– Henry Gantt
• Work scheduling
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1–33Copyright © 2010 Nkumbwa
Classical Theory (cont’d)Classical Theory (cont’d)
• Administrative Theory– Henri Fayol
• Father of Modern Management
• Principles and functions of management
– Max Weber• Bureaucracy concept
– Chester Barnard• Authority and power in organizations
– Mary Parker Follett• Worker participation, conflict resolution, and
shared goals
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1–34Copyright © 2010 Nkumbwa
Behavioral TheoryBehavioral Theory
• Behavioral Theorists– Focus on people to determine the best way to
manage in all organizations.
• Human Relations Movement (later, the Behavioral Science Approach)– Elton Mayo
• Hawthorne studies
– Abraham Maslow• Hierarchy of needs theory
– Douglas McGregor• Theory X and Theory Y
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1–35Copyright © 2010 Nkumbwa
Management ScienceManagement Science
• Management Science Theorists– Focus on the use of mathematics to aid in
problem solving and decision making.– Mathematical models are used in the areas of
finance, management information systems (MIS), and operations management.
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1–36Copyright © 2010 Nkumbwa
Integrative TheoriesIntegrative Theories
• Systems Theory– Focuses on viewing the organization as a whole
and as the interrelationship of its parts (subsystems).
• Sociotechnical Theory– Focuses on integrating people and technology.
• Contingency Theory– Focuses on determining the best management
approach for a given situation.
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1–37Copyright © 2010 Nkumbwa
Comparing TheoriesComparing Theories
ClassicalClassical
BehavioralBehavioral
Management Management ScienceScience
Systems Systems TheoryTheory
Attempts to develop the best way to manage in all organizations Attempts to develop the best way to manage in all organizations by focusing on the jobs and structure of the firm.by focusing on the jobs and structure of the firm.
Attempts to develop a single best way to manage in all Attempts to develop a single best way to manage in all organizations by focusing on people and making them productive.organizations by focusing on people and making them productive.
Recommends using math (computers) to aid in problem solving Recommends using math (computers) to aid in problem solving and decision making.and decision making.
Manages by focusing on the organization as a whole and the Manages by focusing on the organization as a whole and the interrelationship of its departments, rather than on individual interrelationship of its departments, rather than on individual parts.parts.
Sociotechnical Sociotechnical TheoryTheory
Recommends focusing on the integration of people and Recommends focusing on the integration of people and technology. technology.
Contingency Contingency TheoryTheory
Recommends using the theory or the combination of theories thatRecommends using the theory or the combination of theories thatbest meets the given situation.best meets the given situation.
Exhibit AP1–2
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1–38Copyright © 2010 Nkumbwa
Ideas on Management at GapIdeas on Management at Gap
1. What resources does Gap use to sell its merchandise?
2. What management functions are performed at Gap stores?
3. What levels and types of managers have careers at Gap?
4. How does Gap meet new workplace issues and challenges?