ENGINEERING MANAGEMENT

The Organization

Raymerose DaqueKinneth Mae MaghanoyEduard Animo

THE ORGANIZATION

An organization may be considered group of people with defined relationship to each other.

By an organization, one may also be referring to a collection of human and material resources, which are gathered together for a stated aim.

At a more general level, an organization may also refer to a structure defining the division of work and interaction between individuals, groups and resources.

THE ORGANIZATION

ELEMENTS: A collection of people in formal and informal groupings. Individuals who have defined tasks and responsibilities, some of

which may consist of specialization. The manner in which these tasks interact and relate to each other is

defined.

The tasks all lead to achievement of a common aim.

TRADITIONAL VIEW OF AN ORGANIZATION

• HIERARCHICAL

InformationCommand and control

TRADITIONAL VIEW OF AN ORGANIZATION

• FLATTENED

Command and control Information

THE ORGANIZATION

These changes have been driven by: The emphasis in organizations on the attainment of results rather on

the process used in achieving them. The emphasis on horizontal activities within the organization in

order to gain influence and information, rather than vertical activity. Many more opportunities for action and exerting influence within an

organization. The realization that external contacts are becoming an important

factor in being able to wield internal influence and power. Rapidly disappearing formal control mechanisms between

managers and subordinates. No clear career progression paths within the organization, but many

more opportunities for advancement.

ORGANIZATIONAL DYNAMICS

The Management create conditions for the organizationto learn and develop.

Staff take actions based on their past experience and memory, repeating

actions that were known to haveworked in previous similar

situations.

However, situations change, and staff must be willing to experiment,

learning from new experiences. For effective learning, the manager must create an open, questioning environment, very different from thestructures of the past, where staff obeyed orders either out of fear orblind loyalty.

ORGANIZATION STRUCTURES

Defining a structure

An organization structure is the way the organization allocates its resources towards meeting its strategic aims. It is commonly defined by organization charts.

ORGANIZATION STRUCTURES

Groupings for common organizational structures:ORGANIZATION STRUCTURES

GROUPING

LINE

STAFF

PROJECT-BASED

FUNCTIONAL

FLEXIBLE

MATRIX

INFORMAL

HIERARCHICAL

MATRIX

INFORMAL

Hierarchical Organizational Structure

Hierarchical organizational structures are probably the most common and often considered to be essential for control of large organizations. ( Jaques, 1990)

Definition of Terms

Span of Control. The number of people that report back to one manager in a hierarchy.

Chain of command. The order in which authority and power is delegated from top management to every employee at every level of the organization. eg; Military forces are an example of straight chain of command.

Authority. The rights inherent in the managerial position to tell people what to do and expect them to do it.

Unity of Command. The concept that a person should have one boss and should report only to him.

Types of Hierarchical Organizational Structure

Line Staff or Functional AuthorityLine-and-StaffGeographicFunctionalProject

Line Organizational Structure

There are only line departments- departments directly involved in accomplishing the primary goal of the organization. 

In a line organization, top management has complete control, and the chain of command is clear and simple.

Staff or Functional Authority Organizational Structure

The staff personnel who are specialists in some fields are given functional authority ( the right of staff specialists to issue orders in their own names in designated areas).

The principle of unity of command is violated when functional authority exists.

Some staff specialists may exert direct authority over the line personnel, rather than exert advice authority.

Line-and-Staff Organizational Structure

Has a direct, vertical relationships between different levels and also specialists responsible for

advising and

assisting line managers.

Most large organizations belong to this type of organizational structure.

In general, functional authority of staff is replaced by staff responsibility so that the principle of unity is not violated.

Geographic Organizational Structure

Geographic organizational structure is used for organizations that have offices or businesses units in different geographic locations.

Geographic organizational structure is used mainly in industries like retail and hotel chains, transportation and other large national and international organizations. Manufacturing organizations with several plants in different geographical locations may choose to operate using a geographic structure.

Functional Organizational Structure

In a functional structure, positions are grouped based on the type of work they do and the skills required to complete that work.

Organizations employing this kind of structure divide themselves into functional areas like marketing, engineering, and accounting.

Project Organizational Structure

Organizations arrange their activities into programs or portfolios, and implement them through the projects.

The project manager has full-time team members working under him.

A matrix organizational structure is a company

structure in which the reporting relationships

are set up as a grid, or matrix, rather than

in the traditional hierarchy. In other words,

employees have dual reporting relationships -

generally to both a functional manager and a

project manager.

Matrix management is suitable for use in

situations needing multiple simultaneous

management capabilities (Bartlett and Ghoshal,

1990).

Figure 1 A Simple management scheme

Responsibilities of Project and Functional manager within a

Matrix Organization

Project responsibilityProvide day-to-day guidance on work to be done

Determine all priorities related to work.

Ensure funding levels available for work including special tools

Ensure conflicts between functions resolved

Plan project and ensure project objectives are being met

Provide customer interface

Monitor project progress including resource usage and spend

Functional responsibilityProvide personnel of correct skills for job to be done.

Determine methods to be used in carrying out task, including tools.

Look after ‘pay and rations’ of staff including personal achievement.

Ensure technical know how transferred between projects.

Monitor progress of functional contributors and help with technical problems.

Functional manager is responsible for;

Looking after the personal needs of the

individual engineer

Ensuring that high quality standards are

followed on the project and;

There is a ‘home’ for the engineer to go to at

the termination of the project

Matrix organization

Functional organization

Project organization

Functional control (%)

Proj

ect o

rgan

izati

on (%

)

Figure 2 The relationship between project, functional and matrix organization

0 10050

50

100

The matrix organization has several aims:

To allow projects to be formulated, grow and deliver products to the costumer, including post-sales support, with minimum time and expense.

To provide staff leveling.

Project 1 Project 2 Project 4

Project 3

Overall staffing level

Figure 3 Staff levelling

To provide a project focus on all the work being.

To provide a focus on the costumer.

To provide a view across all the various functional areas in order to determine the impact of developments or changes in one area on another.

To provide platform for faster decision making, especially in relation to the impact on the costumer.

To allow the project to concentrate on delivering the product to the costumer, by moving some of the day-to-day issues to the functional organization.

Advantages to be gained for the engineer working in a matrix organization;

Experience is gained of working in a function and in a project

The engineer can learn from the various managers.

Appraisals and promotions are based on the input from two managers, so they are more likely to be related to merit rather than the whim of individual managers.

It is easier for the engineer to move between jobs.

THE INFORMAL ORGANIZATION

Formal Organizational Structure

DIRECTOR

MANAGER A MANAGER B MANAGER C MANAGER D

THE INFORMAL ORGANIZATION

Informal Organizational Structure

DIRECTOR MANAGER B

MANAGER A MANAGER C MANAGER D

PRESSURES FOR ORGANIZATIONAL CHANGE

New investment

Promotions

Leavers

New recruits

Career moves

Markets

Customers

Legislation

Technology

Competition

Suppliers

Ta

keove

r

Eco

nom

ics

BARRIERS TO CHANGE

• The inertia within the organization, caused by the norms that have been operating over several years. Norms are shared values within the organization and they prevent its employees from accepting that a different set of values, resulting from the change may be better.

• Employees feel threatened by the change. Managers may also feel that the change will result in loss of control over some of their staff and a reduction in their status.

• Employees may feel that they are no longer in control of their own career paths.

BARRIERS TO CHANGE

• There could be uncertainty about future roles. Employees may feel that they would no longer have a meaningful job in the new organization.

• Employees who are put into a new role by the change may feel that they would not be able to cope.

• Past experience within the organization often determines future behaviour.