MME 1103 ENGINEERING MANAGEMENT

Section 2 and 3

INTRODUCTION TO THE PRINCIPLES OF MANAGEMENT

Learning Objectives

the major challenges of managing; the drivers of competitive advantage; the functions of management and how they are evolving in today’s business; the nature of management at different organizational levels; andthe skills you need to be an effective manager, and what to strive for as you manage.

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New EraManagement

Internet

CollaborationAcross

“Boundaries”

KnowledgeManagement

Globalization

Managing In The New Era

Managerial practices will always separate effective from ineffective organizationsFour key elements are new elements in business today

Managing In The New Era (cont.)The Internet

communication technologies are driving massive changeinitial enthusiasm for e-business has dwindled

25% of publicly-held Web companies became profitable in 2002

most profitable Web companies sell information-based products that don’t require shippingold economy types now using the Internet as a tool to solidify their future

Managing In The New Era (cont.)

Globalizationfar more than in the past, enterprises are globalcompeting globally is not easy

companies often overestimate the attractiveness of foreign markets

even small firms that do not operate on a global scale must make strategic decisions based on international considerations

face intense competition from high-quality foreign producers

Managing In The New Era (cont.)Knowledge management

practices aimed at discovering and harnessing an organization’s intellectual resources

unlock people’s expertise, skills, wisdom, and relationships

intellectual capital is the collective brainpower of the organization

Collaboration across “boundaries”capitalize on the ideas of people outside the traditional company “boundaries”

occurs between as well as within organizations– e.g., must effectively capitalize on customers’ brains

CompetitiveAdvantage

CostCompetitiveness

SpeedQuality

Innovation

Managing For Competitive Advantage

Best managers and companies deliver all four

Managing For Competitive Advantage(cont.)

Innovationthe introduction of new goods and services

comes from peoplemust be a strategic goalmust be managed properly

Qualityexcellence of a product, including its attractiveness, lack of defects, reliability, and long-term durabilityimportance of quality has increased dramaticallycatering to customers’ other needs creates more perceived quality

Managing For Competitive Advantage (cont.)Speed

fast and timely execution, response, and delivery of resultsoften separates winners from losers in world competitionrequirement has increased exponentially

Cost competitivenesscosts are kept low enough so that you can realize profits and price your products at levels that are attractive to consumerskey is efficiency - accomplishing goals by using resources wisely and minimizing wastelittle things can save big money

cost cuts involve tradeoffs

The Functions Of Management

Managementthe process of working with people and resources to accomplish organizational goalsgood managers must be:

effective - achieve organizational goalsefficient - achieve goals with minimum waste of resources

there are timeless principles of managementstill important for making managers and companies greatmust add fresh thinking and new approaches

Planning

Leading

Controlling

The Functions Of Management (cont.)

Organizing

The manager who does not devote adequate attention and resources to all four functions will fail

The Functions Of Management (cont.)

Planningspecifying the goals to be achieved and deciding in advance the appropriate actions taken to achieve those goalsdelivering strategic value - planning function for the new era

a dynamic process in which the organization uses the brains of its members and of stakeholders to identify opportunities to maintain and increase competitive advantageprocess intended to create more value for the customer

The Functions Of Management (cont.)Organizing

assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goalsbuilding a dynamic organization - organizing function for the new era

viewing people as the most valuable resourcethe future requires building flexible organizations

The Functions Of Management (cont.)Leading

stimulating people to be high performersin the new era, managers must be good at mobilizing people to contribute their ideas

Controllingmonitoring progress and implementing necessary changesmakes sure that goals are metnew technology makes it possible to achieve more effective controlsfor the future, will have to be able to monitor continuous learning and changing

Management LevelsTop-level managers (strategic managers)

senior executives responsible for the overall management and effectiveness of the organizationfocus on long-term issuesemphasize the survival, growth, and effectiveness of the firmconcerned with the interaction between the organization and its external environmenttitles include Chief Executive Officer (CEO), Chief Operating Officer (COO), company presidents and vice presidents

Management Levels (cont.)

Middle-level managers (tactical managers)located between top-level and frontline managers in the organizational hierarchyresponsible for translating strategic goals and plans into more specific objectives and activitiestraditional role was that of an administrative controller who bridged the gap between higher and lower levelsprovide operating skills and practical problem solving the keep the company working

Management Levels (cont.)

Frontline managers (operational managers)lower-level managers who supervise the operational activities of the organizationdirectly involved with nonmanagement employeesincreasingly being called on to be innovative and entrepreneurialtitles include supervisor or sales manager

Working leaders with broad responsibilitiesin small firms and large firms that have adapted to the times, managers have strategic, tactical, and operational responsibilities

Transformation of Frontline Management Roles and Tasks

• From operational implementers to aggressive entrepreneurs

• Driving business performance by focusing on productivity, innovation and growth within frontline units

Changing roles

Primary value

Key activities• Creating and pursuing new opportunities for the business

• Attracting and developing resources and competencies

• Managing continuous performance improvement within the unit

Transformation of Middle-Level Management Roles and Tasks

• From administrative controllers to supportive coaches

• Providing the support and coordination to bring large company advantage to the independent frontline units

• Developing individuals and supporting their activities

• Linking dispersed knowledge, skills, and best practices across units

• Managing the tension between short-term performance and long-term ambition

Changing roles

Primary value

Key activities

Transformation of Top-Level Management Roles and Tasks

• From resource allocators to institutional leaders

• Creating and embedding a sense of direction, commitment and challenge to people throughout the organization

• Challenging embedded assumptions while establishing a stretching opportunity horizon and and performance standards

• Institutionalizing a set of norms and values to support cooperation and trust

• Creating an overarching corporate purpose and ambition

Changing roles

Primary value

Key activities

Management SkillsSkill - specific ability that results from knowledge, information, and aptitudeTechnical skill

ability to perform a specialized task that involves a certain method or processmanagers at higher levels rely less on technical skills

Conceptual and decision skills ability to identify and resolve problems for the benefit of the organizationassume greater importance as manager acquires more responsibility

Management Skills (cont.)

Interpersonal and communication skills

ability to lead, motivate, and communicate effectively with others

people skillsimportant throughout your career at every level of management

You And Your CareerJobs are no longer as secure for managers as they used to be

organizations still try to develop and retain good employeesemployee loyalty and commitment are still important

Companies offering “employability” to workers tend to be more successful

provide training and other learning experiencesemployees perform work with greater responsibility

Thank You