Em Lecture 1-engineering management

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    ENGINEERING MANAGEMENTMMB 414

    LECTURER:

    ROBERT MONAGENG

    OFFICE: 235

    [email protected]

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    DEFINITION OF MANAGEMENT?

    There are several definitions of management:

    Management is the use of techniques, based onmeasures, artfully applied.

    It is not an exact science, like engineering.

    Management has often been compartmentalized as themanagement of people and tasks, the implicationbeing that tasks are predictable and people are not.

    Management is about control.

    INTRODUCTION TO MANAGEMENTTHEORY

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    This is incorrect; everything in management eventuallyleads to people, so most things are unpredictable, and willvary with time and from situation to situation.

    In management one cannot even predict the result of thesum of two numbers.

    Remember, managers are not the 'bosses'; they are simplyemployees of the organization, like everyone else, and aredoing a job for which they have acquired certain skills.

    The engineer who goes into management expecting to bea leader, to issue commands and have subordinates followwithout question, will be disappointed.

    INTRODUCTION TO MANAGEMENTTHEORY

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    The practices of engineering and of management may beconsidered to have grown hand in hand.

    As a profession, management is relatively new, if one

    applies the definition of a professional as one having aminimum standard of educational or work achievement,administered by an independent body to which membersbelong.

    In the UK the IEE set up a professional group onEngineering Management in 1970, which was almost onehundred years after the IEE itself, was founded.

    The growth of large corporations in the 1950s, particularlymultinationals, provided a boost to the professionalmanager.

    INTRODUCTION TO MANAGEMENTTHEORY

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    An organization structure is the way the organizationallocates its resources towards meeting its strategicaims. It is commonly defined by organization charts.

    There are many structures that are in use byorganizations, e.g., line, staff, project based(divisional), functional, flexible, matrix, and informal(entrepreneurial)

    We will only discuss four common ones, and these areEntrepreneurial Organization Structure, FunctionalOrganization Structure, Divisional OrganizationStructure and Matrix Organization structure.

    All of them have their advantages and disadvantages.

    Organization Structures

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    Entrepreneurial Organization Structure:

    Advantages MD in touch Quick response

    Less Overheads

    Few procedures (client based)

    Disadvantages What happens when the king dies?

    Delegation is a problem

    Autocratic

    Organization Structures

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    Functional Organization Structure: Advantages

    Specialist areas Simple structure

    Clear responsibilities

    Manager in touch

    Disadvantages

    Communication slow Managers overloaded

    Operational rather than strategic

    Expansion difficult

    Organization Structures

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    Divisional Organization Structure

    Advantages

    Market focused (product/project focused)

    Investment/disinvestment easy Develop general managers

    Disadvantages

    Costly

    Divisional competition Technology/Business transfer difficult

    Size and complexity control

    Organization Structures

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    Matrix Structure

    Advantages

    Job communication

    Less layers Lateral communication

    Good management development

    Projects

    Customer focused Disadvantages

    Possibility of conflict in reporting to two managers(functional and project)

    Organization Structures

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    Managers come in every shape and size, with verydifferent personalities.

    This is not surprising, since managers are, after all,

    human. It should also be remembered that all employees

    within an organization, whether they have the jobtitle of manager or not, are in reality managers, beingresponsible for their own tasks if nothing else.

    In looking at the types of manager we shall firstconsider management levels and the styles that areused by managers.

    TYPES OF MANAGERS

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    Management levels can be considered as those that are shownon organization charts; line and staff management; andcorporate and divisional management.

    The interaction between the various levels of management

    within an organization is illustrated by the figure below.

    MANAGEMENT LEVELS

    Adapted from Mazda (1998, pg. 15)

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    Assuming a middle management level, each individual has

    above him or her a manager, followed by the manager'smanager, and so on up the chain.

    Communications can occur to any number of levels up ordown the organization, but the most frequentcommunication is usually limited to two levels.

    Communication upwards also occurs with other managerswho are at the same level as the person's own manager.

    MANAGEMENT LEVELS

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    There will be numerous peers, both within the samefunction and within different functions. Similarly,down the chain there are likely to be subordinatesand subordinates' subordinates.

    Communications radiate back and forth like spokes inthe organizational wheel. All these interactions needto be managed, not only those that occur between amanager and a subordinate.

    Usually, as managers progress up the corporateladder, they will zigzag through the organization; veryrarely does one move vertically upwards, taking overone's manager's job.

    MANAGEMENT LEVELS

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    Material considerations favour large sizes, which canresult in economies of scale within manufacture. Even

    then efficiency will begin to decline if theorganization is too large and so difficult to manage.

    People considerations favour much smaller units,critical mass being reached much sooner. Thereafter

    efficiency falls off as size increases. This is usuallybecause:

    MANAGEMENT LEVELS

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    In large teams there can be many communicationproblems and time wasted in ensuring that

    communication occurs smoothly. Staff working on large projects are less able to see

    the contribution that their individual efforts maketowards the organization's goals.

    The larger the team the greater the amount ofoverheads it needs, such as supervision andcoordination.

    MANAGEMENT LEVELS

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    To overcome the people problems while stillmaintaining the advantages from material

    considerations, many organizations are structuredinto divisions or profit centers.

    One such division could be devoted to manufacturingonly, giving a larger size operation from the materials

    viewpoint.

    MANAGEMENT LEVELS

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    Each division has a level of autonomy for its profit andloss, and the divisional general manager is answerableto corporate headquarters.

    A small team of staff managers are now employed atheadquarters, with the tasks of:

    Formulating corporate strategy and setting divisionalgoals;

    Monitoring divisional performance; and Carrying out centrally those functions that benefit

    from size, for example material procurement.

    MANAGEMENT LEVELS

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    A management style is a term that refers to the nature ofthe relationship between managers and non-managerialemployees.

    There are many, many different management styles. Mazda has identified the below seven management styles,Administrators, Time servers, Climbers, Generals,Supporters, Nice Guys and Bosses.

    This is not surprising, since the style used is oftendetermined by the personality of the manager concerned,

    and this can vary through every shade between black andwhite. A manager often displays many of the attributes of these

    styles.

    MANAGEMENT STYLES

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    Also, most experienced managers have learned to

    vary their style to suit the situation for example, theorganization level at which the communication istaking place and the task that is being addressed.

    It is, however, difficult to adopt a style that is

    diametrically opposite to one's own personality, sinceit will then be unconvincing and ineffective.

    MANAGEMENT STYLES

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    Administrators look to company rules and regulations forsolving all problems.

    They live 'by the book' and are usually very goodemployees.

    They show total loyalty to the organization and haveprobably been with the company for many years.

    Administrators are very formal in their approach and workwith strict lines of demarcation between departments and

    functions. They are usually not very good communicators, using the

    official company channels for all communications, whichare often limited to one level upwards and downwards.

    ADMINISTRATORS

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    They protect their department and status and lookafter their staff.

    They are not good at resolving conflict, looking tocompany rules for resolving these.

    Administrators expect everything to be black andwhite, and for practical situations to match theory;they are at a loss when this does not happen.

    They are very logical and practical and have good

    planning skills. In spite of their rather mechanistic approach they are

    generally respected by their staff, and by peers, fortheir organizational loyalty and knowledge.

    ADMINISTRATORS

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    These are generally older managers who have lostinterest in their job and environment, and are markingtime until retirement or moving to another job.

    They take all necessary action to avoid stress, andmaintain a low profile within the company.

    Their low personal motivation is reflected in thepeople who report to them.

    Conflict at all levels is avoided at any cost.

    Although these managers are not generally lazy, theirlow motivation means that they do the minimumamount of work needed to hold down a job.

    TIME SERVERS

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    Decisions are avoided since they could lead tomistakes. Personal status is very important to them.

    Time Servers usually have good managementexperience, and if motivated can become a veryvaluable asset to the organization.

    They often consider themselves to be 'father ormother figures'. They understand people and canbuild an effective team if they try.

    They recognize achievements in others and are readyto acknowledge them.

    TIME SERVERS

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    These managers are driven by extreme personalambition and will sacrifice everything, including selfand family, to get to the top of the corporate ladder.

    They want to achieve and to be seen to haveachieved, especially by those in a superior position.

    Climbers will pursue personal advancement by fairmeans or foul.

    However, they become demotivated if this does notshow quick results, and this can eventually lead tostress.

    CLIMBERS

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    Personal knowledge is very important to them, as ameans for advancement, and they will learn fromtheir staff, pushing themselves at their staff's

    expense, if it suits them. However, Climbers look after those reporting to

    them, knowing that they are measured on the outputfrom their department.

    Self interests come before those of the organization,and peers will be fought in order to gain anadvantage and to build an empire.

    Status is important, but only as a sign of seniority.

    CLIMBERS

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    This is usually a younger person who exhibits lots ofenergy.

    The General likes to rule and manipulate power, but is

    achievement oriented: power is used to get tasksdone.

    Generals work extremely hard, driving themselvesand those under them.

    Generals are sociable and mix well at all levels.

    They usually get their way with peers byoverwhelming them, although peers can resent this ifit is done too often.

    GENERALS

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    Status is important to Generals, but for the luxuryassociated with it, not as a symbol of seniority.

    They are strong-willed individuals, often with thesame characteristics as a self-made entrepreneur.

    Usually they are optimistic about the future,sometimes wrongly.

    GENERALS

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    Supporters maintain a balanced view about theworld, the organization, subordinates andthemselves.

    They are usually experienced managers who areknowledgeable in management techniques and applythem where they can.

    Supporters work through people in achieving their

    aims. They are good at delegation and develop their

    subordinates by giving them responsibility.

    SUPPORTERS

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    The people working under them are highly motivated.

    Supporters' personal technical knowledge is usually

    lacking, but this is compensated for by the supportthey themselves receive from the specialists withintheir department.

    Supporters are good facilitators and very good atmanaging change.

    They recognize achievement and reward it.

    They are deep thinkers and have excellentimagination.

    SUPPORTERS

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    Often this can lead to a clash between the goals of theorganization and what they believe to be right.

    However, Supporters are good compromisers and exhibit

    effective intuition. They are flexible but very persistent in carrying out tasks

    which they believe need to be done.

    They can handle stress.

    Supporters tend to be loners and do not mix well with

    peers. This means that they can often miss out on information

    from the grapevine, so that they are not always wellbriefed on organizational matters.

    SUPPORTERS

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    These managers are usually weak-willed and are moreinterested in being liked, by peers and subordinates, thanin achieving targets.

    They do not criticize their subordinates, even when they

    are poor performers, and may in fact support them toomuch, so unconsciously retarding their development.

    The productivity of the group under the Nice guy is lowand conflict often simmers under the surface, waiting toburst out.

    When it does the manager does not know how to handleit. Very few decisions are made and usually they are very

    poor, since the manager is ready to yield to pressure fromalmost any source.

    NICE GUYS

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    These managers are bullies! They like to have their own way andbully their staff (especially their secretaries) in order to enhancetheir own sense of power.

    They are a living example of the effect of power on people, as

    stated by Primo Levi in his book The Drowned and the Saved:'Power is like a drug; the need for either is unknown to anyonewho has not tried them, but after the initiation ... thedependency and the need for ever larger doses is born; alsoborn is the denial of reality and the return to childish dreams ofomnipotence.'

    Bosses occur at every level, often quite low within theorganization.

    They operate in Administrative mode, playing things by the bookwhere it suits them. They use the power of their position, realand imaginary.

    They drive the people under them but not themselves.

    BOSSES

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    They expect recognition from peers, but often do not get it. Bosses are extremely inflexible and are often mistaken for

    strong-minded people. Usually, however, they are only strong talkers, and hide behind

    abusive language.

    They try to terrorize subordinates and peers, creating conflict toemphasize their own power.

    Managers in the Boss category are often brought into acompany to act as 'hatchet men'.

    In the short-term they can show results, but long-term they arevery destructive, causing more harm than good.

    They are insecure in themselves and get security by humiliatingothers in public.

    They advance by pointing out the mistakes of others, and not bytheir own achievements.

    BOSSES

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    Although many different and complex factors havebeen considered in describing the variousmanagement styles, it is usual to use two main factors

    when comparing them: the strengths of the variousstyles in the management of people and tasks.

    This is very simplistic, and can only provide a first levelguide.

    TASKS AND PEOPLE

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    TASKS AND PEOPLE

    It is also wrong to 'compartmentalize' management behavior, but inthe figure below we do just that! Each of the styles described in

    earlier sections is placed neatly into its own little box, with nooverlap between boxes.

    General Supporter

    Administrator Climber

    Time server Boss Nice Guy

    Tasks

    PeopleAdapted from Mazda (1998, pg. 20)

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    This shows how wrong it is to think of one style as better thananother since, on this scale, the most balanced style is that ofthe Climber.

    Analyzing this relationship of the concern for people and tasksfrom the Blake and Mouton (1964), you can see that even themost balanced style can be seen to be not the effective one.

    Instead each style must be considered to have its strengths andweaknesses, and each style has its place in various

    circumstances. Obviously some styles are met more often than others and can

    be used more frequently.

    TASKS AND PEOPLE

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    1,9 9,9

    5,5

    1,1 9,1

    TASKS AND PEOPLE

    Concern

    forPeople

    Concern for taskAdapted from Blake andMouton (1964, pg. 10)

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    What is important to be remembered is that no one style is

    adequate in all situations or contexts.

    For example, a social club or trade union created primarily withthe main concern for providing services to its members wouldtend to be strong on concern for people but not be pushing hard(1,9 on the graph).

    Military and traditional autocratic organizations would alwaysput the task first and foremost. This would be seen as

    appropriate for a military organization (9,1 on the graph). This would also be the style used in an organization operating

    according to scientific management. Difficulties occur when using this style in a modern democratic

    society.

    TASKS AND PEOPLE

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    A 1,1 style implies very little concern by management foranything so organizational performance will be poor.

    A 5,5 style is adequate for an ordinary performance of theorganization but it would not be operating at its full potential.

    The implication of this view however is that managers need tobe concerned for both people and the task, striking a balancebetween both aspects.

    A 9,9 style is seen as the one most likely to lead to organizationaleffectiveness. Employees would be fully involved andcommitted, there would be trust between managers and

    employees and productivity would be high. Managementsystems would be well designed to enable effectiveness. It isgoal-orientated, team-based approach. Concern for task andpeople would both be high. Employee motivation andproductivity should be high too.

    TASKS AND PEOPLE

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    Different management styles would be required to handledifferent situations, e.g. the means of dealing with a

    disciplinary matter will differ from that used in problem-solving activities.

    Management style required for routine day to dayactivities is also said to differ from the one needed forproject management and design activities.

    Similarly Blake and Mouton (1964) identified that the waymanagement deals with conflict resolution can also belinked to the management styles in the grid as shownbelow.

    DIFFERENT STYLES FOR DIFFERENTPURPOSES

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    Grid Resolution style Managerial approachto conflict resolution

    1,1 Withdrawal Fear of problems,ignore or deny problem

    1,9 Smoothing Emphasize commonpoints, keep teamtogether

    9,1 Forcing Try to prevent problemby forcing own views

    5,5 Compromising Identify a position likelyto gain maximumacceptance.

    9,9 Confrontation Use conflictconstructively to find

    solutions

    CONFLICT RESOLUTION AND STYLES

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    GROUPWORK

    (1) Advantages and Disadvantages of the differentforms of organizational structures.

    (2) Graphical representations. (3) Advantages and Disadvantages of the different

    management styles.

    (4) In which situations are they mostly suited.