Eng Mgt Lect 04

7/28/2019 Eng Mgt Lect 04

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ENGINEERING MANAGEMENT04 / 14SWISS GERMAN UNIVERSITY

28-Sep-13 1

Engineering Management

- Leading -Dr. ir. Yuki Indrayadi

[email protected]


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Table of Contents

Leading - Deciding, Communicating,Motivating, Selecting and DevelopingDeciding - Rational Decision Making,Kepnor-Tregoe Method, Gut Instinct,Group DecisionsCommunicating - Asking, Telling, Listeningand Understanding


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Contents (Contd)

Motivating - Inspire, Encourage, ImpelNeed-based strategy (Maslow Model)Selecting Focus on hard and soft SkillsDeveloping - Performance correction andpersonal growthSpecial Topics on Leading - LeadChanges, New Leader Strategy, Superior Leadership


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Leadership Style

1 - Nice Guy2 - Loser 3 - Compromiser 4 - Task Master

5 - Ideal Manager

Task

4

2 1

3

5

People


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Use of Leadership Style

No single style fits all situations A persons dominant style is determined bypersonality traitsDifferent leadership styles can be effectivewith different people at different times

Advice to engineering managers: Varystyle flexibly according to situation at handin order to be effective


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Leading

To cause people to take effective actions for attaining organizational goals (willingly)


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Question # 4.1The companys product promised to a major customer isrunning late and there was intense pressure on theproduction team to deliver the product. The Direction of Production was eventually told by the companyPresident to deliver or else. The Director thereforedecided to ship the product, even though it had not gonethrough all its testing procedures. Members on the

product team were angry by the uncertainty in thefunctionality and reliability of the shipped product. TheDirector however insisted: We will just have to take thatchance. As the Director of Production, how would youact differently?


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Question # 4.2 As advised by the company President, the SalesDepartment received a set of specificrecommendations produced by an outsidemanagement firm to reorganize for maximumeffectiveness. The Sales Manager has the hunchthat several sales staff may disagree with therecommended changes. The Sales Manager himself is

also not fully convinced of the merits of allrecommendations. But he wants to implement them, atleast in part. How should he proceed?


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Question # 4.7The Board of Directors received a proposal from a businesspartner to set up jointly an assembly plant in a third-world country.This new plant will assemble final products using key components

made by the company. Financial terms are attractive and thefuture marketing outlook is bright. There is just one problem. Thisthird-world country is not a democracy, has poor records onhuman rights, neglects to protect own environment, and does notsafeguard workers rights. An investment placed by the companywould boost this countrys economy and thus the political positionof its current dictator. Should the company accept the proposaland why?


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The Function of Leading


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Deciding

To arrive atconclusions and

judgementsTo assure that thequality of

decisions maderemains high


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Types of Decisions

Spontaneous Decisions - Intuitive, hunch or gut instinct based

Reasoned Decisions - Based on systematicstudies and logical analyses (to the extendpossible): (1) Assess facts and evaluate

alternatives, (2) Use full mental resources,(3) Emphasize creative problem-solving,(4) Think consistently, (5) Minimize theprobability of errors (downside risks)


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Why Decision Making is Difficult?

Management Problems - Ill-defined, of wide scope, of constantly changing

nature, involving people of unpredictablebehavior Data/Facts - Insufficient, of poor quality,excessive, and not to be analyzed andinterpreted in time and within budgetImpact of decisions - Dependent onpeoples opinion, which change in time


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Why Decision Making is Difficult

(contd) ? Nature of Decisions - Compromises amongalternatives, with validity changing with time

Decision Implementation - Affected byconsensus and commitment of affectedpeople

Complexity of Decisions Criticallyimportant decisions involve multiplemanagement levels, thus requiringcoordination


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Criteria for Good Decisions Achieve stated purpose - correct/changethe situation which created the noted

problemBe feasible to implement - meaningful withrespect to resources required and thevalue createdHave no or limited adverse consequences -not causing major disasters to unit or company in short- and long-term


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Guidelines for Decision Making

Study management cases for acquiring closeto real-world experience in decision making

Prioritize problems in need of decisions, skipthose with minor significance or impact Apply a rational process to guide the decisionmaking processInvolve those to be impacted by the decision -consensus building foster implementation


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Guidelines for Decision Making

Make decisions based on incomplete/uncertain information on hand,assumptions introducedTake the necessary risksDelay decision making until the lastallowable moment, but within theapplicable deadlines, avoid making nodecision which is a sign of poor leadership


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Who is to Make What Decision?

Staff Staff andManager Manager


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Decisions by Staff

Techniques to accomplish assigned tasksor projectsOptions to continuously improve currentoperations and work processesSocial events - Group picnics, golf outings,Christmas parties, and others


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Decisions by Manager and Staff

Development needs of staff - conferenceor seminar attendance, training needs,

degree programs, etc.Policy and procedure involving staff interactions with other departments

Team membership - workload balance,personality fit, working relationship,exposure and visibility, sets of skills, etc.


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Decisions by Manager

Priority of tasks and projects, project or program objectives, budget allocation

Personnel assignment, work groupcomposition, evaluation, job action

Administrative policies, procedures,office space assignment, specialexceptionsBusiness confidential matters


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Rational Decision Making

Process

AssessPr obl em

Col l ectFact s

Def i neRealPr obl em

Devel opAl t er nat i ves

Sel ectSol ut i on

I ll ti


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Rational Decision Making Process

Assess the apparent problem - based onsymptoms observed

Collect facts - what, how, who, where, when,why, from people who have direct knowledge of the problem at hand : Management by Walking

Around Define the real problem - deviation from norm,performance metrics to measure success


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Rational Decision Making Process

(contd) Develop alternatives to achieve the desiredresolution - brainstorming, innovationSelect optimal solution (logical process,minimizing risks, maximizing probability of success)

Set course of action to implement decision,by allocating resources, specifying actionsteps and define target dates of completion


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Kepnor-Tregoe Decision Analysis

ToolDefine decision criteria (necessary criteriaand sufficiency criteria)

Rank-order sufficiency criteria (from 1 to 10)Evaluate all options against each sufficiencycriteria and eliminate those which flunk the

necessary criteriaScore each surviving option relatively withrespect to each sufficiency criteria (from 1 to10)


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Tool (contd) Compute a weighted score (multiplying theweight factor of the sufficiency criteria with the

relative score of an option and summing upsuch numerical products for each option)Choose the option with the highest weightedscore as the best solution to the problem athand


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Tool (contd) CRITERIA WEIGHT FACTOR OPTION A OPTION

Criteria 1 R Go Go Go

Criteria 2 10 4 8 10

Criteria 3 5 6 10 7

Criteria 4 8 10 6 8

Total Weighted Score 150 178 1


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Tool (contd) Decision criteria - bothnecessary and sufficiency- areexternalizedRelative importance of allsufficiency criteria are rank-orderedChosen criteria are MutuallyExclusive and CollectivelyExhaustive Decision - equitable, rational,comprehensive


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Decisions Not to Make

Decisions - Not pertinent/applicable toproblems at this time

Decisions - Can not be implementedeffectively (business priority, resourcesconstraints, value created)

Decisions - To be made by others


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Question # 4.3You have been socially pretty active while in college. You know a fewpeople over the years. Among many friends, the following threestand out. Liza majors in literature, is very sociable andcommunicative, and has an average appearance. She does not

hate homemaking. Julie , on the other hand, majors in computer engineering, has a very sharp intellect, and is rather strong willed.She is reasonably sociable and has a passable appearance.Homemaking is not her cup of tea. Debbie is the high schoolsweetheart, very adaptable and lovely, easy going, comfortableto be with, and has a superb appearance. Her social skills are so so.She likes homemaking which is a tradition of her family and she doesit well. Your grandfather is getting old and your mother has beenbugging you to make up your mind to get married. Time is runningout and you need to make a choice. How would you go aboutdeciding for one of these three candidates as a prospective mate.


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CRITERIA WEIGHTFACTOR LISA JULIE DEBBIE

Physical Appearance

Intellect/Knowledge

Adaptability/Compatibility Future Earning Power

Perceived HomemakingCapability

Social Ability

Total Weighted Score


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Physical Appearance 9

Intellect/Knowledge 5

Adaptability/Compatibility 9 Future Earning Power 10

Perceived HomemakingCapability 8

Social Ability 10



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Physical Appearance 9 5 8 10

Intellect/Knowledge 5

Adaptability/Compatibility 9 Future Earning Power 10

Perceived HomemakingCapability 8

Social Ability 10



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Physical Appearance 9 5 8 10

Intellect/Knowledge 5 8 10 5

Adaptability/Compatibility 9 8 5 10 Future Earning Power 10 8 10 5

Perceived HomemakingCapability 8 8 5 10

Social Ability 10 10 8 5

Total Weighted Score 401 387 385

ENGINEERING MANAGEMENT


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Other Decision Support ToolsForecasting (exponential smoothing,time series)Regression Analysis (single-variable,

multi variables)Risk Analysis (Monte Carlo)What -if Solver Simulation Modeling Decision Trees Optimization (linear programming,integer/dynamic programming)



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Decision Making by

Gut InstinctSpontaneous Decisions - Intuitive solution for complex and ambiguous problems defying

systematic analyses (No data)Brain Activities - Left-side (logical, rational andconscious) versus right-side (intuitive,subconscious); Innovative ideas surfaceunexpectedly, due to accumulated patterns andrules derived from past experience



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Decision Making by

Gut InstinctIntuitive decisions can be wrong from timeto time, feedback from trusted sources is

needed to recalibrate patterns and rulesfrequentlyIf repeated, feedback-based learning

tends to improve quality of intuitivedecisions made in the future



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Decision Making in Teams

GroupdynamicsConflict,consideration,closureCriteria for goodgroup decisions



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Group dynamics - New dimensions todecision making: (1) Coalitions/alliances

among team members - position-basedadvocacy, (2) Conflicts of interests, (3)Personality clash (fighting words, selective

seeing, interruptions, personal friction)Leadership Role : (1) Managing conflict,(2) Consideration and (3) Closure



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Decision Making in Teams (Contd)

(1) Minimize Conflict Follow an Inquiry-focused solution-discovery process, not to

conduct a position-fighting exercise:(A) Share information, (B) Think critically, (C)Debate ideas rigorously, (D) Checkassumption relentlessly, (E) Apply rule of

reasoning, and (F) Testing strengths amongcompeting ideas (not competing positions)



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Decision Making in Teams (Contd)

(2) Show Consideration - Make sure thatthe losers perceive fairness of having

their ideas heard and considered: (A) Nopredetermined solutions, (B) No personalpreference of leaders, (C) Listen actively to

all ideas - taking notes, asking questions,(D) Explain logic of final decision and whythe views of the losers were not accepted



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(Contd) (3) Manage Closure :(A) Early Close (group think phenomena)

as unstated objections will show up atimplementation phase: leader to injectquestions and promote additional debate,

(B) Late Closure (endless debate betweenwarring factions, trying to resolve alltrivialities just to be fair) - Leader to cut off debate and announce decision



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(contd) Criteria for good group decisions -(a) Multiple Alternatives to create

(b) Assumptions to check(c) Decision criteria to externalize(d) Dissent and debate to promote

(e) Perceived fairness to assure



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Communicating

To createunderstandingand acceptanceby conveyingfacts, viewpoints,impression and/or feelings



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Guidelines for Communication

Communicate with a clear purposeSelect proper form to communicate - face-to-face

talk, phone conversation, emails, video-conference, staff meeting, written memos, web-posting, net-meetingBe honest and open , welcome suggestions, offer pertinent information to dispel fearsKeep communications channels open



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How to Communicate?



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Asking

Asking open-endedinsightful questions to gain

knowledge and to improveunderstanding of thesituation at handQuality of questions is anclear indication of thequestioners grasp of thesituation at hand



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TellingOffer information to keep people (peers,employees, bosses, supply chain

partners, customers) informed aboutmatters of concern to themJudgement is needed as to what to telland what not (Need to Knowparadigm), seek balance between (1)trust-creation and no surprise versus (2)control over information



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Listening

Remain focused in listening to the subtextand true meaning of the exchange

Maintain eye contactExercise self-discipline to control own urgeto talk and avoid interrupting others



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Understanding

To hear by the head and to feel by theheart

Assess the degree of sincerity - verbalintonation, facial expression, bodylanguage

Recognize shared meaning (emotional andlogical)



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Common Barriers to

CommunicationsSemantics

Selective SeeingSelectiveListening

EmotionalBarriers



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Common Barriers to

CommunicationsInterpretation of Semantics (words/terms mayhave multiple meanings)

Selective Seeing - See only what one wantsto seeSelective Listening - Hear only what one

wants to hear (screen out ideas divergent toown opinion or self-interest)Emotional Barriers (strong attitude andfeelings, personal biases)



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Techniques of Communicating

Know what one wants to say and say whatone means (some people want to impress

others, not to express themselves) -The answer is definitely a maybeIt is not probable, but still possible Know the audience (tailoring to the receiversframe of mind - belief, background, attitudes,experience and vocabulary)



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Techniques of Communicating

(contd) Get favorable attention - Taking into accountof receivers interest and emotional standing

Get understanding - Leading the exchangefrom present to future, familiar to unfamiliar,and agreeable to disagreeableGet retention - Repeat the ideas (Rule of Four)Get feedback - Asking questionsGet action to enhance communications



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Question # 4.6Jerry Lucas is the Division Director. As Branch Chief. Bob Sanford reports to Lucas. BobSanford has four section chiefs reporting into him. Bob Sanford is technically competentwith extensive experience in solid rocket propulsion, being regarded to be the best expert inthis field. He is highly dedicated to work, but inexperienced in managing technical people,as he has been on the job for only two years. Sanford handles his subordinates quite

roughly. He reversed section chiefs decision without prior consultation with them. Hedemands that no information or data be transmitted to persons outside the group without hisknowledge and concurrence. He would also bypass his section chiefs to go directly topeople and encourage them to come to him directly with problems. Rumors have it that heplaces spies or informants within the group. As expected, he delegates no decision-makingauthority to his section chiefs and regards his section chiefs to be technically incompetent.He creates an atmosphere of fear and suspicion with low group morale. Bob Sanford does

not report to Jerry Lucas candidly on project progress and on difficulties encountered. Hedoes not understand his own responsibility of building team-work, enhance group moraleand create employee satisfaction, while achieving the goals of his group. He is lacking theskills and willingness of resolving conflicts within the group. Finally, the section chiefs as agroup went in to see Jerry Lucas, complaining about the lack of authority and theoppressive atmosphere in the section. What should Jerry Lucas do?



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Question # 4.5Marketing needs to submit a proposal to a global customer and called areview meeting next morning. By the time Bill Taylor, Design Manager, wasso informed in the late afternoon, all his design staff had left and there wasno one available. Bill Taylor decided to work on a proposal himself throughout the night so that he can talk with all his design staff in the nextmorning, one hour before the Marketing Review meeting. All staff agreedwith the proposed design, except Henry King, a senior staff, who isrecognized as the most experienced and best designer in the group. Hisobjections were that the current design is too complex and that it would takeanother week to improve on the design for assuring its functionalperformance. In order to pacify him, Bill Taylor invited Henry King to come

along to the Marketing Review meeting so that he would feel the pressureMarketing is exerting on Design. Unexpectedly, Henry King stood up and re-iterated all his design objections at the Marketing Review meeting, causing atremendous embarrassment to Bill Taylor and his boss, Stanley Clark, theDesign Director. Bill Taylor became furious. What should Bill Taylor andStanley Clark do?



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Motivating

To motivate is toapply a force that

excites and drivesan individual toact, in ways

preferred by themanager/leader.

ENGINEERING MANAGEMENTS SS G A S


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How to Motivate

Inspire - Infuse a spirit of willingness (By work done,leadership traits, examplesset)Encourage - Stimulatethrough praise, approvaland helpImpel - Force (Coercion,compulsion, punishments)

ENGINEERING MANAGEMENTSWISS GERMAN UNIVERSITY


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Techniques to Enhance

MotivationParticipation - Promoting ownership of idea, project, task and program

Communication - Objectives, metricsRecognition - Fair appraisals inducingloyalty and confidence

Delegated Authority - Convey trustReciprocated Interest - Show interest inResults



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Keys for Successful Motivation

Accept people as they are, not try tochange them - personal preference, values

and standardsRecognize that other have drives to fulfillown needs - self-actualization, recognition,

ego, self-esteem, group association, etc..Motivate by addressing the unsatisfiedneeds - Maslow Need Hierarchy Model



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Maslow Hierarchy Need Model

Self Actualization - Self-development and realization of own potential

Esteem - Ego, recognitionSocial - Peer acceptance,group affiliationSafety - Job securityPhysiological Needs - Food& shelter Phys i ol ogi cal Needs

Saf et y

Soci al

Est eem

Sel f A



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Maslow Hierarchy Need Model

A higher level need only arises when lower onesare already satisfied

A satisfied need no longer dominates theindividuals behavior, the next higher need takesover

An unsatisfied need acts as a motivator - Centralto need-based motivation strategyThe top level needs are never fully satisfied



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Motivating Factors for

ProfessionalsScope of self expression and creativity,having room for making decision,

choosing methods and utilizing owntalents fullyIndependence with minimum supervision

Recognition for achievementsVariety of challenging work is motivatingPay and benefits are minor motivators



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Selecting

By selecting people,managers gain staff with right skills,dedication, valuesystems, personality,and win their loyaltyover time

Associate themselveswith the right mentorsand leaders



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Standard Procedure of

Employee Selection ProcessDefine needs

Define qualificationsGet applicantsReview and pre-screen applicants

Conduct interviews - Asking goodquestionsDecide on job candidates



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Skills Assessment

Hard skills - Technical capabilities readilyassessed (transcripts, reports and references)

Soft skills - Behavior in team work,interpersonal skills, leadership quality,cooperative attitude, mental flexibility andadaptability - all related to personality -psychological profile, value systems anddeep-rooted beliefs are difficult to evaluate



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Challenges of Selecting

Managers are not trained to assess soft skills -major sources of job-related problems and keyfactors for career failuresCandidates are polished to Talk the talk andwalk the walk, masking their true long -termpersonal behavior

Selecting people remains a major challenge to allmanagers



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A Best Practice in Selecting

Companies : Mazda Motor, Flat Rock,Michigan and Diamond-Star Motor,

Normal, IllinoisSelection Criteria : (1) Interpersonal skillsto get along with people, (2) Aptitude for

teamwork, (3) Personal flexibility, (4) Driveto improve continuously



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A Best Practice in Selecting (contd)

Selection Process : (1) Multiphase processinvolving tests, exercises, and role playing ingroup activities, (2) Pick the best (based on softskills) employees and train them welltechnicallyResults: Got 1300 people out of 10,000

applicants at $13,000/person hiring expenses(Source: Williams J. Hampton, How Does Japan Inc. Pick its AmericanWorkers? Business Week, October 3, 1998)



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Developing

Purpose: To improve knowledge, attitudeand skills of employees

Knowledge : Cognizance of facts, truthsand other informationAttitude : Customary dispositions toward

people, things, situations and informationSkills : Ability to perform specialized workwith recognized competence



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How to Develop People



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Guidelines for Employee

DevelopmentEmphasize employees role in development(good for the individual and company)

Appraise present performance and futurepotentialCounsel for improvement (to induce self-improvement, set example)Develop Successors - Career Planning Planof Some Progressive Companies



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Special Topics on Leading

Leading Changes (Eight-step processes to createand sustain changes)

New Leaders (Strategyfor First 6 months)Advice for Superior Leadership (Eight

attributes and more)



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Leading Changes

Changes take time to set in and there areeight critical steps to follow:

(1) Establish a sense of urgency - Identifymarketing and other factors supporting theurgent need for change, getting 75% of

corporate leaders on board(2) Form a powerful guiding coalition -Secure shared commitment of top leaders



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Leading Changes (Contd)

(3) Create a vision - Have an easy-to-communicate vision to direct the change

efforts(4) Communicate the vision - Using allmeans available to spread the words

(5) Empower others to act on the vision -Encourage risk taking and removal of systems/ people resisting change



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Leading Changes (Contd) (6) Plan for short-term wins - Selectprojects to achieve wins within the first oneto two years, in order to keep momentum(7) Consolidate improvements - modifysystems and promote people in favor of changes(8) Institutionalize new approaches -Ensure leadershipdevelopment/succession



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Corporate Transformational

ChangesCorporate Transfromational Changes

0

1

2

3

4

5

6

7

8

9

1 2 3 4 5 6 7

Year

# C h

a n g e s



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Advice for New Leaders

New Leaders - Sailing through dense fogin first 6 months (short visibility ahead)

Seven-rule strategy to follow:(1) Leverage the time before entry - Studythe new situation (SWOT analysis),

prepare questions(2) Organize to learn - Technical, culturaland political arenas



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(Contd) (3) Secure early wins - Get some wins in first6 months

(4) Lay foundation for major improvements -Initiate pilot programs to try out newtechnology tools, Change ways to measureperformance, Introduce new ways of operating and viewing business, Promotepositive examples, and Envision newmechanism to do business



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(Contd) (5) Create a personal vision - linking to corevalue and be compatible with top-priority

projects(6) Build winning coalitions - linking withpowerful groups in top-management, middlemanagement and working groups(7) Manage own time and stress, Securetechnical, political and personal advisement



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The Transition Pyramid

AchievePrioritizedProjects

SecuringEarly Wins

Laying theFoundation

Learning VisioningCoalitionBuilding

Source: Michael Watkins, Seven Rules for New Leaders, Harvard BusinessSchool Notes # 9-800-288, June 8, 2001.



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Guidelines for Superior

Leadership(1) Maintain absolute integrity(2) Be Knowledgeable

(3) Declare expectations(4) Show uncommon commitment(5) Get out in front

(6) Expect Positive results(7) Take care of people(8) Put duty before self-interests



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Profile of Successful LeadersStrong drive for responsibility and taskcompletionVigor and persistence inpursuit of goalsVenturesomeness andoriginality in problem-solving

Drive to exercise initiative insocial situationSelf-confidence and senseof personal identity

Willingness to acceptconsequence of decision and actionReadiness to absorbinterpersonal stressWillingness to toleratefrustration and delayCapacity to structuresocial interactionsystems to the purposeat hand



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ConclusionsEngineering Managers should payattention to: (1) Making decisions under uncertainty (not suffering from paralysisby analysis), (2) Motivating other engineers with proper motivators, (3)Communicating by proactive asking and

intensive listening, (4) Selecting to focuson soft skills, (5) Developing peopleusing personal examples.



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Question # 4.4

The Engineering Director of the company isasked to send one engineer abroad to assist inthe installation of equipment. There are threequalified candidates, each working for a differentmanager under the Director. The Director knowsthat all three engineers will want to go, but their

bosses will not, for fear of losing time in doingtheir own very critical projects. How should theDirector make the choice?



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Question # 4.17

Conflicts between technologists andmanagers may arise, when the technical

professionals (with the skill to make adecisions) have to deal with a manager (who has the right to decide). Why suchconflicts often exist in organizationswherein everyone works toward the samecommon goal?

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