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. Copyright © 2010 Nkumbwa

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” Copyright © 2010 Nkumbwa

What is a Manager’s Responsibility? 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” Copyright © 2010 Nkumbwa

What Does It Take to Be a Successful Manager? 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 Copyright © 2010 Nkumbwa Exhibit 1–2

Copyright © 2010 Nkumbwa

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. Copyright © 2010 Nkumbwa

Copyright © 2010 Nkumbwa

The Systems Relationship among the Management Functions Management Skills Copyright © 2010 Nkumbwa Exhibit 1–3

Management Roles Role Management Role Categories (Mintzberg) 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 Copyright © 2010 Nkumbwa

Ten Roles Managers Play Managers play various roles as necessary while performing their management functions so as to achieve organizational objectives. Copyright © 2010 Nkumbwa Exhibit 1–4

Copyright © 2010 Nkumbwa

Differences 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) Copyright © 2010 Nkumbwa

Management Levels and Functional Areas SOME ORGANIZATIONS “FLIP” THIS CHART UPSIDE DOWN INDIVIDUAL CONTRIBUTORS OFTEN REPORT ANYWHERE Copyright © 2010 Nkumbwa Exhibit 1–5

Types of Managers Marketing/Sales/Product Development 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. Copyright © 2010 Nkumbwa

Management Skills and Functions Differences among management levels in skill needed and the functions performed: Copyright © 2010 Nkumbwa Exhibit 1–6

Copyright © 2010 Nkumbwa

Individual Management Styles Skill Builder What is Your Preferred Management Style? 12 Points Possible… Autocratic Consultative Participative Empowerment Combinations or Flexible Best Management Style? Adaptive or Situational Leadership Copyright © 2010 Nkumbwa

Differences between Large and Small Businesses Copyright © 2010 Nkumbwa Exhibit 1–7

Differences between Large and Small Businesses (cont’d) ALSO OFTEN APPLIES TO NON-PROFITS AND CIVIC ORGANIZATIONS, WITH FOCUS ON THEIR MISSION Copyright © 2010 Nkumbwa Exhibit 1–7 cont’d

New 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 Knowledge Management Ethics and Social Responsibility Networking and Boundaryless Relationships GENERATIONAL DIFFERENCES Copyright © 2010 Nkumbwa

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. Copyright © 2010 Nkumbwa

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. Copyright © 2010 Nkumbwa

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 Copyright © 2010 Nkumbwa

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? Copyright © 2010 Nkumbwa

Microsoft Case Questions 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. leading b. 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. leading b. 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 Copyright © 2010 Nkumbwa

Microsoft 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 conceptual b. conceptual rather than technical c. 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? Copyright © 2010 Nkumbwa

Learning Outcomes After studying this chapter, you should be able to: Describe a manager’s responsibility. List and explain the three management skills. List and explain the four management functions. Identify the three management role categories. List the hierarchy of management levels. Describe the three different types of managers. Describe the differences among management levels in terms of skills needed and functions performed. Copyright © 2010 Nkumbwa

Learning Outcomes (cont’d) 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 Copyright © 2010 Nkumbwa

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. Copyright © 2010 Nkumbwa

E-Commerce Copyright © 2010 Nkumbwa Exhibit 1–8

Learning Outcomes After studying this appendix, you should be able to: State the major similarities and differences between the classical and behavioral theorists. Describe how systems theorists and contingency theorists differ from classical and behavioral theorists. Define the following key terms: classical theorists systems theorists behavioral theorists sociotechnical theorists management science theorists contingency theorists Copyright © 2010 Nkumbwa

Classical Theory Classical Theorists Scientific Management 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 Copyright © 2010 Nkumbwa

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 Copyright © 2010 Nkumbwa

Behavioral 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 Copyright © 2010 Nkumbwa

Management 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. Copyright © 2010 Nkumbwa

Integrative Theories Systems Theory Sociotechnical 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. Copyright © 2010 Nkumbwa

Comparing Theories Classical Behavioral Management Science Attempts to develop the best way to manage in all organizations by focusing on the jobs and structure of the firm. Behavioral Attempts to develop a single best way to manage in all organizations by focusing on people and making them productive. Management Science Recommends using math (computers) to aid in problem solving and decision making. Systems Theory Manages by focusing on the organization as a whole and the interrelationship of its departments, rather than on individual parts. Sociotechnical Theory Recommends focusing on the integration of people and technology. Contingency Theory Recommends using the theory or the combination of theories that best meets the given situation. Copyright © 2010 Nkumbwa Exhibit AP1–2

Ideas on Management at Gap What resources does Gap use to sell its merchandise? What management functions are performed at Gap stores? What levels and types of managers have careers at Gap? How does Gap meet new workplace issues and challenges? Copyright © 2010 Nkumbwa