ENGINEERING PROJECT & RESOURCE MANAGEMENT ECM 527

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1 1 ENGINEERING PROJECT & RESOURCE MANAGEMENT ECM 527

2 ENGINEERING The American Engineers Council for Professional Development has defined engineering as follows: The creative application of scientific principles to design or develop structures, machines, apparatus, or manufacturing processes, or works utilizing them singly or in combination; or to construct or operate the same with full cognizance of their design; or to forecast their behavior under specific operating conditions; all as respects an intended function, economics of operation and safety to life and property. 2

3 PROJECT PMBOK GUIDE: Project, as defined in the field of project management, consists of a temporary endeavor undertaken to create a product or service. 3

4 RESOURCES American Heritage Dictionary Something that can be used for support or help The total means available for economic and political development, such as mineral wealth, labor force, and armaments. The total means available to a company for increasing production or profit, including plant, labor, and raw material; assets. 4

5 MANAGEMENT Management in business and human organization activity, in simple terms means the act of getting people together to accomplish desired goals 5

6 COURSE LEARNING OUTCOMES At the conclusion of this course, the student should be able to: Acquire and apply management concept in the work environment. Utilize the system approach to develop basic and comprehensive project plans. Develop and implement effective project monitoring and control system in work environment. Understand the activities to be carried out and undertake problem identification and solution during a project closing. 6

7 COURSE LEARNING OUTCOMES (CONTINUED) At the conclusion of this course, the student should be able to: Understand how the construction industry operates, its products, the sectors involved and their functions. Communicate effectively with the community at large by understanding the social, cultural, global and environment responsibilities of a professional engineer. 7

8 TOPICS Introduction to management concepts History and current developments in project management. Project management in Malaysia Project management definition Project planning Project monitoring and control Project closure Engineering economics Decision making strategies under various alternatives 8

9 9 TODAY S LESSON INTRODUCTION TO MANAGEMENT CONCEPTS

10 LESSON LEARNING OUTCOMES At the conclusion of this lesson, the student should be able to: Relate the significance of studying management to work performance Appreciate and understand the role and responsibility of a manager Understand the management process Begin developing skills necessary for holding management positions 10

11 WHAT IS WORK? 11

12 WHAT IS WORK? Definition of Work in Physics When a force acts to move an object, we say that Work was done on the object by the Force. Work = Force X Distance Travelled 12

13 WHAT IS WORK? Work (in management) is an activity that produces value for other people The need for work to be done well enough that people, organizations, and society as a whole may prosper is what makes the study of managers and management so meaningful. 13

14 WHAT IS MANAGEMENT? Management is the process of planning, leading, and controlling the use of resources to accomplish performance goals Henry Mintzberg (management theorist) It is the manager who determines whether our social institutions serve us well or whether they squander our talents and resources 14

15 WHAT IS MANAGEMENT? The art of getting things done through people [M. P. Follett, quoted in Daft 1993] 15

16 WHAT IS MANAGEMENT? The Manager s job can be broadly defined as deciding what should be done and getting other people to do it. [Rosemary Stewart quoted in Mullins 1999] 16

17 WHAT IS MANAGER? A manager is a person in an organization who is responsible for the work performance of one or more other persons Managers serve in positions with wide variety of titles, such as supervisor, team leader, division head, administrator, vice president and so on. Managers are persons to whom others report 17

18 WHAT IS A MANAGER? Someone whose primary responsibility is to carry out the management process Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources [Griffin 2003] 18

19 WHAT DO MANAGERS DO? Effective managers utilize organizational resources in ways that result in the following: High performance outcomes Performance effectiveness Performance efficiency High levels of satisfaction among people doing the work Quality of work life Performance effectiveness output measure of task or goal accomplishment Performance efficiency a measure of the resource cost associated with goal accomplishment 19

20 WHAT DO WE MEAN BY Effectiveness? The degree to which goals are achieved Making the right decisions and successfully implementing them Doing the right things in the right way at the right times Efficiency? Using minimal resources to produce the desired volume of output Using resources wisely and in a cost-effective way Operating in such a way that resources are not wasted 20

21 PERFORMANCE EFFECTIVENESS AND PERFORMANCE EFFICIENCY Goal High Effective but not efficient: Some resources wasted Effective and efficient:goals achieved and resources well utilized; area of high performance attainment Poor Neither effective nor efficient: Goals not achieved; resources wasted in the process Efficient but not effective:no wasted resources, but goals not achieved Poor Good Resource Utilization 21

22 A HIGH QUALITY OF WORK LIFE OFFERS SUCH THINGS AS Adequate and fair pay for a job well done Safe and healthy working conditions Opportunity to learn and use new skills Room to grow and progress in a career Protection of individual rights Pride in the work itself and the organization 22

23 THE MANAGERS CHALLENGE Manager s Boss Accountability Dependency Production Manager Work Unit performance: Effectiveness and Efficiency Manager s Subordinates 23

24 KEY CONCEPTS OF MANAGEMENT The four functions of management Planning Organizing Leading Controlling Sometimes a fifth is added: Staffing Attainment of organizational goals in an effective & efficient manner 24

25 FOUR FUNCTIONS DEFINED Planning Setting an organization s goals and selecting a course of action from a set of alternatives to achieve them [Griffin 2003] Deciding in advance what to do, how to do it, when to do it, and who is to do it Organizing Determining how activities and resources are grouped [Griffin 2003] Determining the composition of work groups and the way in which work and activities are to be coordinated 25

26 FOUR FUNCTIONS DEFINED Leading The set of processes used to get organizational members to work together to advance the interests of the organization [Griffin 2003] Motivating and communicating with the organization s human resources to ensure goals are attained 26

27 FOUR FUNCTIONS DEFINED Controlling Monitoring organizational progress towards goals [Griffin 2003] The process of comparing results and expectations and making the appropriate changes And that pesky fifth one: Staffing The recruitment, selection, assignment, training, development, evaluation and compensation of staff 27

28 MANAGEMENT LEVELS (TYPICAL) /CIO CTO SOURCE: Adapted from Thomas V. Bonoma and Joseph C. Lawler, Chutes and Ladders: Growing the General Manager, Sloan Management Review (Spring 1989),

29 MANAGEMENT LEVELS DEFINED First line Managers directly responsible for day-to-day operations supervise and coordinate the activities of operating employees Middle Managers work in the middle levels of the organization responsible for sections or departments supervise and coordinate the activities of lower-level managers responsible for implementing the policies and plans of top managers 29

30 MANAGEMENT LEVELS DEFINED Top (or Senior) Managers usually form a team manage the organization s overall goals, strategy, and operating policies responsible for the entire enterprise Middle and top managers may also be: Functional Managers responsible for a distinct function in the enterprise 30

31 HORIZONTAL DIFFERENCES Functional managers Responsible for departments that perform a single functional task General managers Responsible for several departments that perform different functions 31

32 MANAGERS BY AREA Marketing Managers Work in areas related to getting consumers and clients to buy the organization s products or services Financial Managers Deal primarily with an organization s financial resources Operations Managers Concerned with creating and managing the systems that create organization s products and services May be IT managers in IT businesses (but even then are primarily focused on production) [Griffin 2003] 32

33 MANAGER BY AREA Human Resource Managers Human resource planning, recruiting and selection, training and development, designing compensation and benefit systems, formulating performance appraisal systems Administrative Managers Generalists familiar with all functional areas of management and who are not associated with any particular management specialty Other Kinds of Managers Specialized managerial positions directly related to the needs of the organization May include IT management [Griffin 2003] 33

34 KEY MANAGERIAL ROLES Informational Interpersonal Decisional Monitor Disseminator Spokesperson Positions the manager so as to facilitate the sending and receiving of information [Munsterberg] Figurehead Leader Liaison Involves the manager in relationships with other individuals both inside and outside the firm Entrepreneur Disturbance handler Resource allocator Negotiator The manager uses the available information to make important decisions SOURCE: Adapted from Van Fleet, David D., Contemporary Management, Second Edition, Houghton Mifflin

35 CHARACTERISTICS OF MANAGEMENT Managerial activities involve variety fragmentation brevity large volume of work performed quickly To illustrate: First line managers in an industrial firm may average over 500 incidents a day [Handy 1995] In a study of 100 managers over four weeks, each of them had on average only nine periods of half an hour without interruption [Rosemary Stewart] 35

36 MANAGEMENT SKILLS Management skills required by management levels Top Managers Middle Managers First-Line Managers Conceptual Skills People Skills Technical Skills Non-managers (Personnel) 36

37 FUNDAMENTAL MANAGEMENT SKILLS Technical Skills necessary to accomplish or understand the specific kind of work being done in an organization Interpersonal Ability to communicate with, understand, and motivate both individuals and groups Conceptual Ability to think in the abstract and to see the organization as a complete unit and to integrate and give direction to its diverse activities so that objectives are achieved [Griffin 2003] 37

38 FUNDAMENTAL MANAGEMENT SKILLS Diagnostic Ability to visualize the most appropriate response to a situation Communication Abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others Decision-Making Ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities [Griffin 2003] 38

39 FUNDAMENTAL MANAGEMENT SKILLS Time-Management Ability to prioritize work, to work efficiently, and to delegate appropriately [Griffin 2003] 39

40 CHAPTER CHECKOUT 1. For most organisations, top management consists of. a. any manager above the level of foreman. b. the chief executive officer, the president, and his vice president. c. the chief executive officer only. d. the chief executive officer and the president only. 2. The management functions are. a. planning, organising, staffing, leading controlling. b. organising, selling, accounting, leading, controlling. c. planning, accounting, leading, controlling, organising. d. planning, organising, selling, leading, controlling. 3. The categories of management roles are. a. figurehead, leader, liaison. b. monitor, disseminator, spokesperson. c. interpersonal, decisional, entrepreneur. d. interpersonal, informational, decisional. 4. The skills that all managers need are. a. planning, organising, controlling. b. conceptual, technical, human. c. effectiveness, efficiency, planning. d. interpersonal, decisional, informational. Answers 1.b 2.a 3.d 4.b 40