1. August 15 Lotfi K. Gaafar1 Engineering and Project Management Introduction to Management Dr. Lotfi K. Gaafar, The American University in Cairo Based on Management. 5 th ed. By Ricky Griffin, 1996 and input from Dr. A. A. Elimam.

2. August 15 Lotfi K. Gaafar2 Course Outline  Principles of Engineering Management  The importance of management to engineers  Applications of these Principles in Engineering Organizations

3. August 15 Lotfi K. Gaafar3 Management Is getting work done through others. Requires a set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organization’s resources (human, financial, physical, and information), with the aim of achieving organizational goals in an effective and efficient manner. An organization is a group of people working together in a structured and coordinated fashion to achieve a set of goals.

4. August 15 Lotfi K. Gaafar4 Management in Organizations

5. August 15 Lotfi K. Gaafar5 Management in Organizations Manager: Someone whose primary responsibility is to carry out the management process. Effective: Making the right decisions and successfully implementing them. Efficient: Using resources wisely in a cost- effective way.

6. August 15 Lotfi K. Gaafar6 Management Functions Planning: Setting goals and deciding how best to achieve them. Decision Making: Selecting a course of action from a set of alternatives. Organizing: Grouping activities and resources in a logical fashion. Leading: Processes to get members of the organization to work together to further the interests of the organization. Controlling: Monitoring organizational progress toward goal attainment and taking corrective action when needed.

7. August 15 Lotfi K. Gaafar7 Management Functions Most managers engage in more than one activity at the same time

8. August 15 Lotfi K. Gaafar8 Management: Origins

9. August 15 Lotfi K. Gaafar9 What is Engineering? The profession in which a knowledge of the mathematical and natural sciences gained by study, experience, and practice is applied with judgment to develop ways to utilize, economically, the materials and forces of nature for the benefit of mankind. (ABET) Engineer: A person applying his/her mathematical and science knowledge properly to solve practical problems.

10. August 15 Lotfi K. Gaafar10 What is Engineering Management? Engineering management is a process of leading and controlling a technical function/enterprise. Engineering management is similar to other definitions of management, but with a slant toward technical issues.

11. August 15 Lotfi K. Gaafar11 Management Levels and Areas

12. August 15 Lotfi K. Gaafar12 Management Levels LevelType of Job First-line Managers  Directly supervise non-managers.  Carry out the plans and objectives of higher management using the personnel and other resources assigned to them.  Short-range operating plans governing what will be done tomorrow or next week, assign tasks to their workers, supervise the work that is done, and evaluate the performance of individual workers. Middle Management  Manage through other managers.  Make plans of intermediate range to achieve the long-range goals set by top management, establish departmental policies, and evaluate the performance of subordinate work units and their managers.  Provide and integrating and coordinating function so that the short-range decisions and activities of first-line supervisory groups can be orchestrated toward achievement of the long-range goals of the enterprise. Top Management  Responsible for defining the character, mission, and objectives of the enterprise.  Establish criteria for and review long-range plans.  Evaluate the performance of major departments, and they evaluate leading management personnel to gauge their readiness for promotion to key executive positions.

13. August 15 Lotfi K. Gaafar13 Basic Managerial Skills

14. August 15 Lotfi K. Gaafar14 Basic Managerial Roles

15. August 15 Lotfi K. Gaafar15 Some reasons an engineering background can help prepare for an engineering management position 1. Engineers: logical, methodical, objective, and make unemotional decisions based on facts. 2. Use their technical knowledge to check the validity of information. 3. Can analyze problems thoroughly, look beyond the immediate ones, and ask good questions to explore alternative solutions to technical problems. 4. Understand what motivates engineers. 5.Can review and evaluate the work of their subordinates since they understand what they are doing.

16. August 15 Lotfi K. Gaafar16 Some reasons an engineering background can help prepare for an engineering management position 6.Can engage in future planning with appropriate consideration for technology and its relationship to cost effectiveness. 7.Engineering backgrounds help in technical discussions with customers. 8.Their background increases the manager's credibility with subordinates, customers, and superiors. People attribute qualities, abilities, skills, and knowledge to them, which allows the manager to influence those who have that perception.

17. August 15 Lotfi K. Gaafar17 Role Differences Between Engineers and Managers

18. August 15 Lotfi K. Gaafar18 Role Differences Between Engineers and Managers

19. August 15 Lotfi K. Gaafar19 Engineers Versus Managers

20. August 15 Lotfi K. Gaafar20 Philosophical Similarities Between Engineering and Management  Both engineers and managers are trained to be decision makers in a complex environment.  Both allocate resources for the operation of existing systems or for the development of new systems.  Both have to recognize, identify and evaluate the interactions among system components. (Cleland and Kocaoglu 1981)

21. August 15 Lotfi K. Gaafar21 The Scope of Management Large businesses: Most knowledge comes from large profit-seeking organizations. Small and Start-Up Businesses: Management is key as wrong decisions may never be recovered. This is how most businesses start. Compaq started by 3 in 1982. In 1994 76 th largest with sales of $7b. International management: Most large organizations derive a significant portion of their business from international markets.

22. August 15 Lotfi K. Gaafar22 Nonprofit Organizations Government Organizations: Subject to political and public pressure. Educational Organizations: Unique management and administration problems. Healthcare Facilities: Clinics, Hospitals, HMOs. New educational programs. Nontraditional Settings: Religious organizations, service organizations, households, …, etc. Effective and efficient use of resources

23. August 15 Lotfi K. Gaafar23 Management: the driving forces Social Forces: The norms and values that characterize a culture. Economic Forces: Economic systems and general economic conditions. Market economy. Competition. Political Forces: Governing institutions and general policies and attitudes. Legal cases against business.

24. August 15 Lotfi K. Gaafar24 Management Perspectives Classical: Scientific (individual workers) and Administrative (whole organization) Behavioral: Individual attitudes and behaviors and group processes Quantitative: Applies quantitative techniques to management. Integrated: All three perspectives must be integrated for best performance (Systems and Contingency perspectives)

25. August 15 Lotfi K. Gaafar25 Scientific Management 1) Development of a science to replace rule -of-thumb working knowledge; 2) Scientific selection and development of individuals; 3) Combining the results of work study with selected and trained workmen; 4) Intimate, friendly co-operation between management and the workforce. UPS: Three feet per seconds Knock immediately Stores must handle 1,124 packages per hour Load packages at the rate of 500 per hour

26. August 15 Lotfi K. Gaafar26 Classical Perspective

27. August 15 Lotfi K. Gaafar27 Behavioral Perspective: Theories X and Y

28. August 15 Lotfi K. Gaafar28 Behavioral Perspective

29. August 15 Lotfi K. Gaafar29 Quantitative Perspective

30. August 15 Lotfi K. Gaafar30 Integrated Perspective

31. August 15 Lotfi K. Gaafar31 Contemporary Perspective Theory Z: A concept that combines the positive aspects of American and Japanese management into a modified approach aimed at increasing U.S. managerial effectiveness while remaining compatible with norms and values of the American society and culture. Developed by William Ouchi

32. August 15 Lotfi K. Gaafar32 External Environment: Everything outside an organization the might affect it. Internal Environment: The conditions and forces within an organization. Management Context

33. August 15 Lotfi K. Gaafar33 The External Environment General Environment: The set of broad dimensions and forces in an organization’s surroundings that create its overall context Task Environment: Specific organizations or groups that affect the organization.

34. August 15 Lotfi K. Gaafar34 The General Environment The Economic Dimension: The overall health of the economic system in which the organization operates. The Technological Dimension: The methods available for converting resources into products or services. The Sociocultural Dimension: The customs, mores, values, and demographic characteristics of the society in which the organization functions. The Political-legal Dimension: The government regulation of business and general relationship between business and government. The International Dimension: The extent to which an organization is involved in or affected by business in other countries.

35. August 15 Lotfi K. Gaafar35 The External Environment: Example Ford’s General Environment

36. August 15 Lotfi K. Gaafar36 The Task Environment Competitor: Competes for resources. Customer: Whoever pays money to acquire an organizations products or services. Supplier: Provides resources. Regulator: A unit that has the potential to control, legislate, or otherwise influence the organization’s policies and practices Regulator Agency: An agency created by the government to regulate business activities. Interest Group: A group formed to attempt to influence business. Strategic Ally: Another organization working in a joint venture or a similar arrangement.

37. August 15 Lotfi K. Gaafar37 The Task Environment: Example Ford’s Task Environment

38. August 15 Lotfi K. Gaafar38 Environmental Response

39. August 15 Lotfi K. Gaafar39 Management Ethical and Social Context Ethics: An individual’s personal beliefs regarding what is right and wrong or good and bad. Ethical Behavior: Behavior that conforms to generally accepted social norms.

40. August 15 Lotfi K. Gaafar40 Managerial Ethics

41. August 15 Lotfi K. Gaafar41 An Example Code of Ethics

42. August 15 Lotfi K. Gaafar42 Areas of Social Responsibility

43. August 15 Lotfi K. Gaafar43 Social Responsibility