MECHANICAL ENGINEERING

FME 343 MANAGEMENT

FOR ENGINEERS

Dr. Kennedy Ogollah

[email protected]
1
 SESSION TWO

PRINCIPLES OF MANAGEMENT
 Definition – Management:

• “Management is the process of designing and

maintaining an environment in which individuals working
together in groups, efficiently accomplish selected item”

• “Management is the process of getting things done, through &

with people in organization”
 Contd>>>>>>>
 As managers, people carry out the managerial
functions of planning, organizing, staffing, leading,
& controlling.
 Management applies to any kind of organization.
 It applies to managers at all organizational levels.
 The aim of all managers is the same: to create a
surplus.
 Managing is concerned with productivity, this
implies effectiveness & efficiency.
 Management functions (or) Process of Management:

There are five types of functions in management. They are,

• Planning-Defines the goal & establishing strategy.

• Organizing-ncludes determining what task has to be done,
who is to do them.
• Staffing-Includes recruitment of people and training them
towards the project.
• Leading-Includes the motivating the employees and
directing the activities.
• Controlling-It is the process of monitoring the performance.
 Managerial Skills

There are three types of skills required by a

manager. They are:
Conceptual Skills-These skills are required by
the employee who are in top level management.
Technical skills- These skills are required by the
employee who are in middle level Management.
Human Relations Skills-These skills are
required by the employee in the supervisory
level.
 Different Managerial Levels

Top Management Conceptual

Skills

Middle Management

Human Relations Skills

Supervisory Level
Technical Skills
Order of Management

Top
Manag
ement

Middle
Managers

First-Line Managers

Operatives
(or)
Executive
 Most

Least
Important
Important
Planning

Organizing

Top
Staffing

Managers
Directing
Controlling

Planning
Organizing
Staffing
Middle
Managers
Directing
Controlling

Planning
Organizing
Staffing
Managers
First-Line

Directing
Importance of management functions to managers in each level

Controlling
 Elements of Management
• Process - represents ongoing functions or primary activities
engaged in by managers
• Efficiency - getting the most output from the least amount
of inputs
“doing things right”
concerned with means
Achieving the objectives in time
• Effectiveness - completing activities so that organizational
goals are attained
“doing the right things”
concerned with ends
Achieving the objectives on time
 Efficiency & Effectiveness
• Effectiveness: Adequate to accomplish a purpose; producing
the intended or expected result.

• Efficiency: Performing or functioning in the best possible

manner with the least waste of time and effort.
(Or)

• Efficiency is doing something with the least possible

expenditure of resources (such as time, energy, etc.)
 Efficiency and Effectiveness

Means Ends
Efficiency Effectiveness

Goals

Goal Attainment
Resource Usage

Low High
Waste Attainment

FOM 1.9
 Features of Management :

 Organized activities
 Existence of objectives
 Relationship among resources
 Working with & Through people
 Decision- Making
 Management & Administration :

 Administration is above management

 Administration is part of management
 Management & administration are same
 Administration is above management :

 “administration is that phase of business enterprise

that concerns itself with the overall determination
of institutional objectives & the policies necessary
to be followed in achieving those objectives.”

 “Management on the other hand, is an executive

function which is primarily concerned with carrying
out broad policies laid down by the administration.”
Difference between administration & management :
Basis of difference Administration Management
1 Level in organization Top level Middle & lower
2 Major focus Policy Policy execution
formulation & for objective
objective achievement
determination
3 Nature of functions Determinative Executive
4 Scope of functions Broad & Narrow &
conceptual operational
5 Factors affecting Mostly external Mostly internal
decisions
6 Employer-employee Entrepreneurs Employees
relation & owners
7 Qualities required Administrative Technical
 Administration is a part of management :

 Management is a generic name for the total process of

executive control in industry or commerce.

 It is a social process entailing responsibility for the executive

& economic planning & regulation of the operation of an
enterprise, in the fulfillment of a given purpose or task.

 Administration is that part of management which is

concerned with the installation & carrying out the
procedures by which it is laid down & communicated, & the
process of activities regulated & checked against plans.
 Management & Administration are same
 Management & administration are synonymous; the
difference between the two terms lies mostly in their usage
in different countries or different fields of human
organizations.

 The distinction between the two terms may be drawn by

analyzing the origin of the word “administration”.

 The government often uses the word administrator, instead

of manager, to handle & manage its affairs
 The functions of management :
 Management can be break down into 5
managerial functions : planning, organizing,
staffing, leading & controlling

 Management as an essential for any

organization
 Managerial functions as at different organizational levels .

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 Functions of Top Management :
 To analyze, evaluate & deal with the external environmental
forces

 To establish overall long-term goals strategy & policies of the

company including the master budget to allocate resources.

 To create an organizational framework consisting of

authority responsibility relationships.

 To appoint departmental & other key executives.

 To provide overall leadership to the company.

 Contd >>>>>>>

 To represent the company to the outside world, e.g. ; trade

associations, government, trade unions, etc.

 To exercise overall review & control on the company’s

operations &

 To coordinate the activities & efforts of different

departments.
 Functions of Middle Management :

 To interpret & explain the policies framed by top

management .
 To compile & issue detailed instructions regarding
operations.
 To maintain close contacts with operating results so as to
evaluate performance.
 To participate in operating decisions
 To cooperate among themselves so as to integrate or
coordinate various parts of a division or a department
 Functions of Supervisory Management :

 To plan day-to-day production within the goals laid down by

higher authorities.
 To assign jobs to workers to make arrangements for their
training & development.
 To supervise & control workers & maintain personal contact
with charge hands.
 To arrange materials & tools & to maintain machinery.
 To advise & assist workers by explaining work procedures,
solving their problems, etc
 Importance of Management :

 Effective Utilization of Resources

 Development of Resources
 To Incorporate Innovations
 Integrating Various Interest Groups
 Stability in the Society
 Skills of Management :

 Technical skills
 Human skills
 Conceptual skills
 Design skills
 Nature of Management :

 Management as an activity (or a process )

I. Planning
II. Organizing
III. Staffing
IV. Directing &
V. Controlling
 Contd >>>>>>>
 Management as a discipline
I. Management education is gaining popularity in the
present –day-times.
II. Scholars are interested in study of management
discipline, for purposes of conducting research studies &
making new & valuable contributions to this discipline
III. Practitioners of management are much interested in a
study of management discipline
IV. Management discipline is growing into specialized
branches of management like production, marketing,
personnel, finance & several others
 Contd >>>>>..
 Management as a group ( class or team or society)
I. Micro-level : the economic results, in terms of the
attainment of common objectives, of the group-
endeavor
II. Macro-level : the survival, growth & prosperity of the
economy would be determined by the integrity,
competence & efforts of the total management class

 Management as an economic resource (or a factor of

production) . The economist has been all the time been
speaking of 4 factors viz , land, labour, capital &
enterprise.
 Management science or Art :
Management science or art differ in the following ways :
 Commonsense is vague as compared to scientific knowledge
 Flagrant inconsistency often appears in commonsense
whereas logical consistency is the basic of science
 Science systematically seeks to explain the events with
which it deals, commonsense ignores the need for
explanation
 The scientific method deliberately exposes claims to the
critical evaluation of experimental analysis, commonsense
method fails to test conclusions in any scientific fashion
 Role & Functions of a
manager & activities of
management
 Functions of Manager :

 Planning
 Organizing
 Staffing
 Directing
 Controlling
 Nature Management Functions :

 Management functions are universal

 Management functions have interactive quality
 Although management process suggests a sequential
arrangement of functions its not always possible in the
performance of managerial functions strictly in a sequence
 Since there are many managerial functions often a question
arises which management function is more important so
that managers devote more time to that
 Diagram
Planni
ng
Contro organiz
lling ing

directi Staffin
ng g
 Roles Of Manager :

 Interpersonal Role
 Informational Role
 Decisional Role
 Management Role :
Formal authority &status
+
Personal skills & characteristics

Interpersonal roles International roles

Figurehead Monitor
Leader Disseminator
Liaison spokesperson
Functions at Various Levels of Management
:
Management

Top Management Middle Management Supervisory Management

Board of Directors Departmental heads Senior supervisors

Divisional Intermediate
chairman heads supervisors

Chief Sectional Front-line

executive heads supervisors
 Top Management :

 Top management of an organization consists of board of

directors, chairman & chief executive officer
 Functions of Board of Directors :
 A board is elected by the owners (shareholders) & is
responsible to them as their agent for managing the affairs
of the organization.

 Board has authority to manage subject to the limitations

imposed by the Memorandum of Association & Articles of
Association of the company as well as the provisions of the
Companies Act
 Board of Directors

Divided into 6 categories :

 trusteeship, function implying that board
must use the property of the company
 Determination of basic objectives & policies
of the organization
 Selection of top executives & determination
of overall organization structure
 Approval of financial matters like
END