engineering management ch 1-2

7/30/2019 Engineering Management Ch 1-2

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Tabuk University

College of Engineering

Engineering Management

Chapter 1 & 2

EE 329

Dr. Bahaa M. Nasser

First term 1432-1433


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Tables of Contents

1- Growth of industry

2- PLANT Organization

3- Forms of Business Organization and Corporation

4- Manufacturing systems

5- ProductDesign and Decisions Making

6- Inventory Model

7- Project Scheduling

8- Quality Control


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Chapter1

Growth of industry

During the latter phases of the medieval period the most usual mean of commercial

production in Western Europe was, the 'handicraft' system, followed 200 years later by

the "putting-out" system or "cottage" system. Since there were no clear-cut stages of

development, these systems of production, though declining continued to exist

side-by-side with the rise of the "factory' system, which ushered in "large-scale

enterprises". This development was and is the same, in and outside ofEurope.

Hand-operated production

Handicraft system

The business units under the handicraft system were small privately owned shops,

sometimes private households working with members of the family of the owner. In

addition to that some employed journeymen (i.e. workers skilled at given trades) to

turn-out custom-made-products with hand tools. From approximately the 14th century

until well after the beginning of the factory system in the 18th century, consumer

goods were produced in this way. Using his own tools, a journeyman carried the

fabrication of leather goods, furniture, metal ware, or other consumer commodities

from the raw-material stage to completion. The designing of the product and the

planning of fabrication methods depended upon his own handy-work and ingenuity.

Specialization of tasks was nearly unknown. Management was comparatively simple,

and the journeyman was left largely to his own initiative.

The business interests and external commercial relations of the handicraft shops were

promoted and regulated by craft guilds. Whose membership included both

journeymen and owner in any given vocation, (such as carpentry or cobbler).

Organized and managed by the members, each association promoted their interests by

regulating prices, wages, Working conditions, apprenticeships, and the quality ofproducts. Labor relations were simple since the shops were small and, little social


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distinction existed between the journeymen and the masters. Throughout most ofthe

medieval period, merchant guilds, representing the traders of a given town, held a

monopoly over the town's trade. However, the various craft guilds in order to avoid

the severe regulations ofthe merchant guilds, began to market their own products and

thus gradually brought about the decline of merchant guilds. The craft guilds, during

the lath century, eventually-gained control over the economic life-ofthe towns.

Putting-out system

The craft guilds were weakened when members, to escape guild regulations, left the

towns. The putting-out (or cottage) system evolved and was prominent from the 16th

to about the middle of the 18th century. It was marked by the appearance of the

middlemen merchant who bought raw-materials; put them out to workers at their

Households, and then found a market for the finished products. In some cases the

middle-man: provided hand tools and hand-operated equipment for the craftsman,

who thus became gradually separated from the ownership of his tools. Although the

putting-out system was time--consuming .and the quality of the product difficult to

control, it was flexible and it avoided the restrictive practices of the craft guilds.

Moreover, business operations were carried out on abroad scale: products were turned

out in more variety and in greater volume. The entrepreneur of the putting-out system

was the forerunner of the industrialist of the factory system.

Machine-operated production

Factory system

During the 18th

century and continuing in the 19th

and 20th

centuries technological andeconomic developments, called "Industrial Revolution" were the origin of modern

mass production and business organization. It first evolved in England and then spread

to the European continent and to the USA.

Through a series of inventions (for example: "spinning jenny", 'Water frame" "Mule",

power loom steam engine and machine lathe) tools were mechanized and powered, the

steam engine using coal as fuel was the earliest primary source of power. The more

efficient powered machines displaced the hand tools and the stilled labor of the


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cottage - and the handicraft - shop. Individuals who possessed or acquired investment

funds (industrialists) were able to accumulate these new, but expensive machines.

House them in special structure (factories) and profit by the new form of production.

Expanding transportation facilities (canals, railways and steamers) broadened the

marketing area and linked the sources of coal, iron and other raw materials with the

growing industrial centers. With the factory system the managerial problems of

coordinating and controlling: men, materials and machines grew up in order to obtain

the desired quantity and quality of goods. These problems gradually led to the

development of scientific management and of professional management.

Large-scale industry

The rate of shift from the early manual systems of commercial production to the factory

system varied from industry to industry and from region to region. The Industrial

Revolution affected in the sequence of manufactured products at first the

consumer-goods industries, e.g. textile industry, clothing, metal products; foodstuffs

and transportation industries. Then, factory output of capital goods followed the

industrialization of Consumer-goods output, e.g. machinery and equipment and

together with these the large-scale, production of iron and steel. The last step of

industrialization is the mechanized large-scale industry for extractive goods, e.g.

mining, lumbering, agriculture and chemical processes. The growth of' large-scale

industrialization depends not only on the existence of favorable resources,

technological development, and savings and investment, but also' on an-eyer-widening

scope of the market.

Especially in the USA with, the surplus of resources, the comparative lack of labor and

a large rich home market, the development of laborsaving automatic machinery led to a

rapid output of products according to mass-production methods with the manufacture of

standardized interchangeable Darts.


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Consequences of development

1. Effects on production

1. Workers were separated from ownership of the tools of production andbecame dependent on the sale of their labor services to the factory

owner.

2. Production by machinery increased the proportion of capital anddecreased the proportion of labor required per unit of output.

3. Factory production transferred the skill from the worker to the machine.Quality and quantity are depending more upon the machine process than

upon the machine operator.

4. The transfer of skill to machines decreased the proportion of skilled laborand increased the proportion of semiskilled labor utilized in the output ofgoods.

5. The factory system of production created managerial problems, leadinggradually to the development of professional and scientific management.

2. Economic effects

1. The more efficient production system led to greater volume output, ahigher standard of living, and greater profit, which were largely invested

in industrial expansion.

2. The joint-stock company and the corporation evolved as the principalmeans of amassing capital for the exploitation of the new technology.

3. The concentration and urbanization of population in commercial areascreated mass markets and facilitated the distribution of goods.

4. The new system of production led to the rise of new economic groups:factory workers and industrialists.

5. By displacing handicraft production, the factory system lowered thestatus of the skilled craft worker and expanded the labor market to

include unskilled male and female labor.

6. The diminished rule and the lowered status of the worker in the industrywere a factor in the growth of trade unionism, which increased the

complexity of Labor-management relations.


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Chapter 2

PLANT Organization

Concepts of Management and Organization

1- MANAGEMENT AND ORGANIZATION DEFINED

Management includes those personnel who have the right to make decisions that affect

a company's affairs. Their primary purpose is to make possible the accomplishment of

stated objectives with the material and human resources available to them.

Organization is the means by which management coordinates the efforts of employees

to attain the company's objectives.

2- ORGANIZATION

The three generally recognized theories of organization are the classical, the non

-classical, and the modern (contemporary).

(1)The earliest form of recognized organization theory is the classical theory, whichstresses a formal organization structure. Its primary concerns involved a highly

structured bureaucracy (authority based on position), implementation of scientific

management (where the worker earns greater economic rewards through greater

productivity), and administrative management theory (broad principles applied to

higher levels of general management). F. W. Taylor was a classical theorist and is

considered by some to be the founder of scientific management. It was he who

expounded the concept that higher wages encouraged greater levels of productivity,

and thus greater earnings for employees. He also ran studies to determine what

constituted a fair day's work, thus making him an originator of time and motion

studies, and proposed an ability-based system of supervision.

(2)In contrast to the classical theory, which ignores the human element, thenon-classical theory reflects the influences of behavior scientists and the industrial

revolution. It rejected the theory that increased pay was in itself a sufficient

stimulus for optimal productivity and recognized the business organization as a


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social system wherein psychological and emotional factors (such as pride and

satisfaction in one's work, pleasant working conditions and relationships, a feeling

of belonging and contributing to the organization) had a significant effect on

continuing business efficiency. Basically, the neoclassicists put human relations on

a par with productivity.

(3). Modern (contemporary) organization theory is essentially an extension, whichcombines both classical and non-classical thought. It views the 'organization as a

total system having distinctive pans (i.e., individuals, formal and informal

relationships, a physical environment, goals, and a communications network) and

holds that a change in one part affects the operation of the others.

3- ORGANIZATIONAL STRUCTURE

Organization involves structure. An organizational structure is a framework enabling

management to delegate and control the responsibilities of individuals and

departments.In this way, a company can function as a unit with the same efficiency as a

business run by one person.

Once organizational structure has been establishedareas (and subareas)of activities,

levels of authority, and duties must be clearly defined.

EXAMPLE 1

A manufacturing department, which is a major area of activity, has within it such subareas

as the tool department and the assembly department. The supervisor of each department

is the authority at that level, and his or her duties are as clearly defined as the duties of

those above and below.

Yet within this structure, allowance must be made for initiative. Good management

permits employees (and managers) to grow according to individual abilities. This is a

valuable asset to a company in that individual talents contribute to organizational

growth. Where workers feel they are mere cogs in a wheel, their morale falls and their

work efficiency decreases, and the firm loses the benefits it might have otherwise

derived from its employees.


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Thus, communication is of great importance In organizational structure. A smooth,

two-way flow (from management to employees and from employees to management)

ensures efficient functioning through feedback, suggestions, and grievances.

4- FORMS OF ORGANIZATIONAL STRUCTURE

. There are four basicforms of organizational structure: line, lineand staff, functional,'

and committee.

Line Organization

In a line organization, the flow of authority is in a direct line from the highest-level

executive to the lowest-rankedemployee. See Fig. 1.

The advantages of a line organization are:

(1) Each employee reports to one individual,

(2) Decisions are more easily reached, and

(3) Responsibilities are clearly defined.

Disadvantages are that a supervisor needs competency in diverse skills, different lines

of departmental authority can be difficult to integrate, and much of the final

responsibility for departmental operations may rest with upper level management,

which should be free to develop general policies and practices.


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Line and Staff Organization

In this structural form, the formal line, organization is augmented by a variety of staff

specialists who act in advisory capacities. Line departments contribute directly to

organizational goals; while staff departments provide specialized consultation enabling

line departments to function efficiently (see Fig. 2).

Line and staff division has the advantages of:

(1) freeing line management from specialized duties outside their areas of competency,

(2) providing line management with specialized advice relating to their areas ofresponsibility while,

(3) Maintaining a clear flow of authority to those responsible for organizational

operations.

Among its disadvantages are those:

(1) Friction sometimes develops over the importance of line and staff contributions to

the organization.

PRESIDENT

Executive Vice President

Vice President

Production

Vice President

Marketing

Vice President

Finance

Section A

Manager

Section B

Manager

Sales

Manager

Promotion

Manager

Accounting

Manager

Credit

Manager

Supervisors Supervisors Workers Workers Workers Workers

Workers Workers

Fig. 1 Line Organization Structure


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(2) Conflict may result from staff specialists seeking to exert too much authority over

line managers with ultimate responsibility.

(3) Staff specialists may be blamed for recommendations unsuccessfully implemented

by line departments.

EXAMPLE 2

In a large organization, the personnel department has important staff functions. Itprovides top management with recommendations for personnel policies, employment

statistics, etc., and assists all levels of management by advertising open positions,

screening prospective employees, maintaining master personnel records, and

counseling individual managers about particular employee problems. It may also assist

employees' efforts to move from one department to another.

PRESIDENT PRESIDENTLine Relationships

Staff Relationships

Consumer

Research

Personal

De artment

VP

Marketing

VP

FinanceVP

Production

Fig_ 2. Line and Staff Organization Structure


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Functional Organization

In a functional organization, each manager is a specialist and each worker has many

bosses. Manager-specialists have authority over all who perform the functions for

which they are responsible. This structure is rarely found in modern business

organization because its disadvantages (confusion among workers, overlapping areas

of responsibility, no direct line of authority) greatly outweigh the advantage of having

highly specialized managers.

Committee Organization

This organizational structure replaces individual authority at all supervisory levels with

a group representing a firm's various operating areas. It is rarely, if ever, used

exclusively in its pure form, although it is often combined with one of the types

previously mentioned.

The advantages of committees within an organization are that they

(1) Bring together individuals with various specialties and viewpoints

(2) Provide a forum for exchange among members.

(3) Give several people a say in important decision making.

The disadvantages include:

(1) The inconvenience of arranging meetings.

(2) The lack of authority to implement recommendations that often exists.

(3) The necessity for compromise.


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5- LEVELS OF MANAGEMENT

There are three management levels: top management, middle management, and

supervisory management. Top level managers are concerned with the setting of the

overall long-range objectives and policies. Middle managers are responsible for the

day-to-day results of the long-range objectives. Supervisory managers plan and put into

effect day-to-day activities, making certain that they are carried out by the workers.

PRESIDENT

Budget CommitteeMembers

Production Dept.

Marketing Dept.

Personal Dept.

Financial Dept.

ConsumerAffairsCommittee Members

Production Dept.Marketing Dept.

Personal Dept.

Financial Dept.

FinancialPersonalMarketingProduction

Fig. 3 Committee Combined with Line Organization Structure


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6- DECISION MAKING

The most important responsibility of a manager at any level is decision-making. (It is

often said that decisions are the motor of business.) Successful management is a matter

of skill in choosing from alternatives.

\Decision making can be broken down into five components:

(1) Recognizing the problem,

(2) Defining and analyzing the problem,

(3) Evaluating alternative solutions,

(4) Choosing the most favorable solution, and

(5) Implementing the approach chosen.

EXAMPLE3

The five components of decision making are illustrated in the hypothetical situation

below.

(1)General manager Dan Howard felt that the flow of work in his division wasinefficient.

TOP

MANAGEMENBoard of Directors

President and Vice Presidents

MIDDLE MANAGEMENT

Department Heads and Plant Managers

SUPERVISORY MANAGEMENT

Foremen and Supervisors

Fig. 4. The Management Pyramid


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(2) He decided that the division would benefit by reorganization(3)He considered bringing in a management consultant team to help deal with the

problem, but because of the expense decided instead to discuss steps that might

be taken with a few key employees

(4)One solution would have been to hire a new supervisor, a woman who workedfor a rival company and who, in a short amount of time, had made a

considerable reputation for herself. However, Howard felt that this would create

bad feelings among his personnel some of whom had been with/the company

for ten years. He decided, therefore, to promote Hal Ryerson to a supervisory

capacity to head a special group that would expedite the work How in a new

way, yet keep the lines of authority clear and recognizable.

(5)He planned to do this as the first order of business at the beginning of thefollowing week.

7- MANAGEMENT FUNCTIONS

The overall responsibility for decision making encompasses the following managerial

functions.

Planning. The process of establishing organizational goals and a strategy for their

accomplishment IS known as the planning function. It is concerned with the future

immediate and/or long range. Middle and operational management planning generally

stems from the goals (i.e. the plan) set by top management.

Organizing. Once goals and strategies have been formulated, organizing makes things

happen as planned. This is an operational function; it depends heavily on the

coordinated effort of an entire organization.

Directing. This us the-motivational function. An organized effort requires complete

cooperation and, in directing operations, management seeks to obtain a high level of

production from employees through motivation and proper guidance.

Controlling. The control function monitors the achievement of goals and compares

actual results with those projected in planning as well as actual performance in past

periods. It is directly related to the plans and performance standards established -by


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other managerial Junctions.

Staffing. This is the process of finding the right -person for "eachjob. It involves

matching individual qualifications to job specifications. Staffing is an on-going

function because once a position is filled, performance must be evaluated and employee

growth encouraged. Further, the chain of promotions, retirements, resignations, and

terminations is perpetual and always results in staffing needs.

Innovating. This is the creative function. Changing times require new approaches;

advancing technology demands new procedures. Finding new and better ways to do the

job, handling the staff, and getting additional money are only some of the creative task

managers often deal with.

8- MANAGERIAL PERFORMANCE

It should be clear from the preceding section that successful managerial performance

rests on three basic elements: leadership, motivation, and communication.

Leadership. The leadership style a manager adopts depends as much on personal goals

and needs as on those of the subordinates involved. The general work environment also

influences it. Three basic styles can beisolated: autocratic, democratic, and free rein.

(1)Autocratic. Autocratic leaders are those individuals who assume responsibility for

all aspects of operations under their control such as motivating, decision making,

communicating, and controlling people. There is little or no opportunity for creativity

for the worker as the, leader checks every phase of the employee's work. It is best suitedin situations where workers require close supervision and lack training.

(2) Democratic. Participant leaders work' through consultation with workers. The

manager actively involves workers in company business by seeking their opinions,

comments, and ideas. Unlike the communication of autocratic leadership, which is

one-way from the manager downward, democratic leadership is a two-way method


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between workers and superiors. This is most appropriate where experienced workers

need involvement in their work.

(3)Free rein.Under this philosophy, managers give employees almost total authority

in all matters, assigning work and then letting employees decide how they will

complete- the job. In other words, there is little guidance, motivation, and control. This

is useful: when qualified subordinates are willing to accept responsibility. It should be

pointed out that no one leadership style is best for all types of situations. A good

manager will vary his or her style according to the situation.

EXAMPLE4

Although Marion Braunfeld was production manager of the Lohman Supply

Corporation, she always made it a habit to consult her subordinates before making

decisions that would affect them. For example, at an informal meeting she invited them

to express their views about theirjobs and ways that the positions could be improved,

and she learned that some differences of opinion were irreconcilable. However, she felt

that the meeting reinforced the employees' motivation by giving them the feeling that

they had say in the company's operation. At the same time, she found that it was at times

just as beneficial merely to issue the employees a directive, providing them with

guidelines to follow. For example, after consulting with her employees, she redefined

certain key positions to bring responsibilities into clearer focus and then issued a memo

informing everyone. She knew that a few would be unhappy with the directive, but it

was her experience that combining the democratic and the autocratic approaches gave

the best results in the long run. It was easy to see how the democratic approach worked,of course. As for the autocratic, Braunfeld knew that tosome people, that approach was

actually quitereassuring: it placed ultimate responsibility on her, where it belonged.

A variation ~on leadership style was formulated by Douglas McGregor using his

Theory X and Y The Theory X manager views his working staff as' disliking workand

requiring close supervision. The theory implies that people are motivated to workto

satisfy their physiological needs, Managers who believe in the concept of Theory Y'

stress that work is part ofa natural way of life in which people set themselves to goals


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that satisfy their need for respect and self-actualization, See Table 1.

Table 1

Factor Theory X Theory Y

. Work People do not like work. People do not dislike work.

Performance Workers must be forced to do the Workers use self-direction

ob, and self-control,

Motivation Threat ofpunishment Recognition and reward,

Personal gain Job security, Sense of fulfillment.

Responsibility Workers dislike it. Workers accept it.

Leadership Autocratic leadership necessary Democratic leadership

possible.

Motivation. The modern concept ofmotivation refers to the process of creating a work

environment that will stimulate employees to perform at superior levels. On the

manager's part, it means presenting a clear picture ofwhat is expected of employees,

providing them with necessary guidance, and giving them the feeling that their work is

important and contributes to end results. Basically, managers must make employees

feel that they are valued in the total effort. Because every organization needs to

motivate its employees, various managerial methods have been proposed. This has

been done because although wages and job security are important factors for all

workers, other human needs require satisfaction. One of the most important theories is

the hierarchy ofhuman needs developed by Maslow. In it he states that everyone has

needs that require satisfaction. These needs can be divided into five ascending levels

(see Fig. 5) in which each level must be satisfied before going on to the next. The lower

level needs have priority over higher-level needs. Therefore, once an employee's basic

needs of wages, fringe benefits, and security are met, the person's higher-level needs,

such as those for praise, respect, and self-actualization become more vital.


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Communication. In order for leadership and motivation to be effective, a manager

must be able to communicate well with subordinates and encourage feedback from

them. A lack of effective communication leads to artificial barriers where there is little

understanding between managers and subordinates, and where operational results are

based on abuses of authority rather than strong leadership and motivation. In the latter

case, operational results are generally less fruitful than they might otherwise have been.

Needs

Physiological

Safety

Social

Esteem

Self-Actualization

Description

Satisfying basic needs for food,

shelter, and clothing.

Safety from physical harm.

Desire to be accepted liked, and

loved.

Recognition and need for self-respect.

Ability to realize one's capabilities and

to work for one's, interests.

Fig. 5. The Hierarchy ofNeeds.


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SUMMARY

Authority. The right to make decisions and see them through.

Autocratic leader. One who makes decisions without consulting others and uses

authority as the means for achieving objectives.

Classical organization theory. Stresses bureaucracy, scientific management, and

administrative management theory for the formal organization.

Communication. The process which holds the organization together. Communication

may be written or oral, but always involves a two-way transmission of messages and

reactions.

Contemporary organization theory. Emphasizes systems theory and systems analysis

while incorporating aspects of the classical and neoclassical theories.

Decentralization. The act of delegating authority and responsibi lity to those at lower

manageriallevels.

Decision-making. Selecting a course of action from a variety of alternatives.

Delegation. The process of assigning responsibility and authority for seeing that tasks

are completed.

Demoractic fender. One who seeks subordinates' opinions in decisions affecting them

and strives for an atmosphere of mutual understanding.

Environmental information. The social-political-economic climate within which abusiness operates and will operate in the future.

Feedback. The flow of communication that goes from lower-level employees to those

at higher levels within the organization.

Formal organization. The organizational plan that specifies division of work for

achievement of goals.

Functional organization. Authority is centered in manager-specialists who have


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complete responsibility for a specific function as it relates to all employees.

Hierarchy of needs. Five levels of needs - physiological, safety, social, esteem,

self-fulfillment - which act as motivational forces for the individual afid are satisfied

systematically from the lowest to the highest level.

Informal organization. The relationships and associated patterns of cooperation and

communication not specified in the organization chart.

Internal organization. Data relating to a firm's strengths and weaknesses in terms of

employees, reputation, performance, financial resources, etc.

Lead time. The amount of time between the establishment of plans and the point where

work toward them is actually begun.

Line organization. Structure where there is a direct flow of authority from top

management to the lowest-level employee.

Line and staff organization. Organizational structure which incorporates staff

specialists as advisors to those in line management positions.

Management. The process of achieving objectives through the effective utilization of

resources - both human and nonhuman.

Management functions. The activities performed by management to achieve company

objectives.

Middle marwgement. Includes department managers, branch managers, production

superintendents, etc.

Motivation. The process of creating an atmosphere within the organization which

stimulates employees to perform at optimal levels.

Neoclassical organization theory. Behavioral theory which emphasizes the importance

of the human element within the organization.

Objectives. The goals of the organization, as well as those of individual managers.


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Operating management. Supervisory management, including supervisors and

foremen, which directthe activities of lower-level employees.

Organization. The process of establishing the firm's objectives and structuring work

activities to achieve them.

Organizationchart.A graphic representation of a business's formal structure.Responsibility. An obligation to perform in a prescribed manner and/or achieve

specified objectives.

Staffing. Finding the right person for the job,

Theory X and Y. Management by' punishment and reward, respectively.

Top management. The highest managerial level. It includes the board of directors,

company president, key vice presidents, treasurer, etc .


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Review Questions

Part I: True or False

__ 1- A manager implements and controls.

__ 2- The most important function of management is controlling.

__ 3- Established firms set new goals every year.

__ 4- Individuals should be held responsible only for those activities over which they

exercise authority.

__ 5- In horizontal communication, workers communicate with their immediate

supervisor.

__ 6- According to Maslow, when a need is satisfied, it tends to lose its ability to

motivate.

__ 7- A participant style of leadership is probably the most successful in a situation that

requires teamwork and high employee morale.

__ 8- The style of leadership that most likely provides the greatest motivation to

employees is democratic leadership.

__ 9- A manager who believes that people inherently dislike work probably accepts

McGregor's Theory X.

__ 10- Managers who make decisions and then impose the decisions on the workers use

a free-rein style ofleadership.

__ 11- Staffing is the process of finding the right person for the job.

__ 12- The three broad groups of individuals to whom business management is

responsible are the owners, the employees, and the general public.


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Part II: Multiple Choices

1. Which of the following is not a staff function?

(a) Personnel, (b) finance, (c) sales, (d) public relations,

2. What characteristic distinguishes line management from staff management?

(a) Authority, (b) competence, (c) seniority, (d) level of productivity.

3. Managers are distinguished by their ability to

(a) make decisions, (b) supervise department members, (c) evaluate

achievement of defined objectives, (d) all the above.

4. Planning and policy making are primarily functions of

(a) top management, (b) middle management, (c) operating management.

5. Effective managerial performance is dependent on all but the manager's

(a) Level of motivation, , (b) work environment, (c) staff size, (d) skills,

6. "Ifthey don't like the work, they shouldn't have the job!" The managerial philosophy

reflected in this statement is

(a) people-oriented, (b) work-oriented, ( c) promotion-oriented, (d) volume-

oriented

7. The organization theory which emphasizes human behavior is the

(a) Classical, (6) modem, (c) neoclassical.

8. In a line type of organization, each worker reports

(a) directly to top management, (b) to a different boss for each job aspect, (c) to

a single superior who is responsible for all departmental functions and needs.


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9. Which of the following is not an advantage of committee organization?

(a) Gathering opinions from specialists in a variety of organizational areas, (b)

learning provided by internal communication, (c) absence of individual

responsibility for decisions and recommendations, (d) lack of implementative

authority.

10. An informal organization often exists within a business because

(a) not all relationships can be specifically defined, (b) small organizations do

not necessarily emphasize strict adherence to line authority, (c) human behavior

naturally crosses established authority lines, (d) all the above.

11. Establishing organizational goals and determining the manner of implementation

is what managerial function?

(a) Controlling, (b) decision making; (c) planning and policy making.


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Solve the following Problems

1. For which type of organizational structure was F. W Taylor responsible?

SOLUTION

2. Illustrate Taylor's functional structure of organization by means of an organization

chart.

SOLUTION

3. The essentials of any organization include objectives, coordination, authority, and

commonality of interest. Discuss.

SOLUTION


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4. Discuss the importance of communicationwithin the organization.

SOLUTION

5. What is the acceptance theory of authority?

SOLUTION

6. Why is an adequate balance between responsibility and authority important?

SOLUTION


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7. (a) Describe the system of management by objectives (MBO)

(b) What are some of its advantages-and disadvantages?

SOLUTION

8. On what does effective managerial performance depend?

SOLUTION

9. What kinds of information are needed to execute the planning function properly?

SOLUTION


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10. Discuss Maslow's theory of the hierarchy of needs.

SOLUTION

11. A manager's leadership style is closely associated with his or her value system.

Discuss the two theories of management (Theory X and, Theory Y) formulated by

Douglas McGregor.

SOLUTION

engineering management ch 1-2

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