GEPM 467

PROJECT MANAGEMENT & FINANCE

Lecture 2
May 2, 2024
Introduction
• With the Best engineering skills and knowledge,
professionals cannot just sustain since any operational
issues require applying management techniques.
• Any engineer by profession is also a manager, as engineers
also qualify in the classical test of managerial roles such as
interpersonal roles, informational roles, and decisional roles.
Management – Definition!
• Operationally – “Management is the
“A dynamic process, that helps to get optimization of constraining
things done, through and with the efforts resources to achieve some
of people” intended goals.
• “Management is the exercise of
• “Resources” is a broad term
drawing the straight line from what and it encompasses
you are and where you are; to what everything that we require as
you want to be; where you want to go.
inputs (including knowledge
• The straight line connotes the
economy in time and means –
and information)
materials, and human; a journey • Resources are not available
starting from the starting point to the
destination.” in abundance, thus resource
constraints exist.
Nine Elements of Management
In which Management is conceived, evolved, and implemented.

1. Horizon – large or small, it has been defined for management within which they must
perform
2. Must be an Organization, which gives body to the management
3. Universal need for planning, implementation, and monitoring
4. Any management must be properly equipped with its staff
5. Management needs Leadership and Direction
6. Communication is the blood of the management process
7. There is a need for all-pervasive Coordination
8. Requires constant Evaluation, monitoring, and control
9. Innovation, pride of place in the competitive management process
 Chairman; Managing Director,
Types of Top President, Vice-President;
Management
Management: and similar other positions
heads of departments,
Levels Middle divisional heads,
Management general managers, etc
workers like supervisor,
foreman, superintendent
Lower Management and other operating
personnel

Workers
Process of Management
Forecasting Decision Making

Planning Controlling

Organizing Coordinating

Staffing Directing

The management process, involving four managerial functions, is an integration of the

manager’s functions.
 Planning involves advance
decisions related to what,
when, why, how, and who
• Self-appraisal to determine the
current position.
Planning • Study of the environment
around the organization.
The planning function of a • Specifications of goals and
(Key manager includes activities
that lead to the definition of
objectives and means to
achieve them.
Functions of ends and the management of
appropriate means to achieve
• Framework of policies,
procedures, standards, and
the defined end.
Management) anticipated course of actions.
• Forecasting.
• Resources to achieve the
forecast.
• Revision of plans and
adjustments in changed
situations.
• Coordination of processes
involving planning.
 Organizing involves those
activities of the
management that are
Organizing performed to translate the
required activities of plans
into a structure of task,
This framework includes authority, and
(Key people, tasks, resources, and
performance with respect to
responsibility.
• Defining the nature and
Functions of the organizational goals.
content of each job in the
organization.
Management) • Setting the base for
grouping the jobs together.
• Deciding the size of groups.
• Delegating authority to
assigned managers
 Directing and motivating
stimulate the organization to
undertake actions along the plan.
• Communication and explanation of
Directing & objectives to the subordinates.
• Assign the performance
Motivating Directing and motivating
standards.
• Helping subordinates through
channelize the proper guidance and personal
organizational behavior for interaction to meet the standards
(Key attainment of corporate
goals.
of performance.
• Reward for better performance
Functions of both financially and written
appreciation.

Management) • Praise and censuring the

employees wherever required.
• Management of change through
proper communication and
building confidence among
different layers of management
and workers.
• Coordination in the entire process
 Controlling relates to
measuring the
performance against the
Controlling goal, determining the
causes of deviations from
The control function is useful goals, and taking
for (a) short-range corrections corrective actions for
(Key through better directing, (b)
moderate corrections through
improvement. Managers
are required to assure that
Functions of re-engineering benchmarking,
and (c) long-term corrections
the actual outcomes are
consistent with the
through re-defining goals and
Management) new planning endeavors.
planned outcomes.
• Standard of performance.
• Information related to gaps
in standard and attained
performance.
• Corrective actions to bridge
the identified gaps.
Time spent (%) by each level of
management
Plannin
g

Middle
Organizin Controllin Managemen
g g t

Motivating &
Directing

0 20 50 70% 100
90
% % % %

Percentage of time spent in particular function of

management
 Formal Roles of Manager
Authority and
Status Informational Role
Decisional Role
• Monitor
• Entrepreneur
• Disseminator
• Disturbance
• Spokesman
Interpersonal Handler
Role • Resource Allocator
• Figurehead • Negotiator
• Leader Knowledge
• Liaison Leadership Role
• Knowledge Team Change Handler Role
Builder • Continuous
• Sustaining and Improvement
maintaining Support
knowledge • Benchmarking
Leader
• Re-engineering
Leader
Modified and enlarged in scope from: Henry Mintzberg,
1973,
The nature of Managerial Work, Harper & Row Pub NY, pp
93-94
 • Figure Head
• Representing the
organization to
perform ceremonial
duties. It means
symbolic head.
• Leader
Managerial Role INTERPERSONAL • Influencing
subordinates to
achieve their goals
and objectives
(motivating and
activating).
• Liaison
• It means
maintaining a
self-developed
network of outside
contacts and
information.
 • Monitor
• Collecting information
concerning the
organization and
shortlisting relevant
information (thorough
understanding of the
organization and
environment).

Managerial Role INFORMATIONAL • Disseminator

• Sharing relevant outside
information with
subordinates (filtering,
clarifying, interpreting,
and integrating different
information so that
value-added knowledge
emerges for the
organization)
• Spokesperson
• Maintaining protocol to
share information with
outsiders (an expert to
clarify the organizational
plan, policies, actions,
and results).
 • Entrepreneur
• Focusing on innovation and
change within the
organization (searching the
organization and its
environment for opportunities
and initiating the
“improvement (or change)
process” to bring about
transformation)
• Disturbance Handler
Managerial Role DECISIONAL • This means responsibility
related to corrective actions
when the organization faces
sudden, unexpected
disturbances. His actions
include review and
rectification of the crisis
• Negotiator
• This means representing the
organization at major
negotiations. His actions
include bringing advantage to
the organization during the
process of negotiation
• Resource Allocator
• Optimizing resource
allocation to different
competing needs within the
organization. actions involve
scheduling, budgeting,
allocation of duties to
subordinates, authorization,
etc
Managerial Role – Knowledge Leadership Role
• Knowledge Team Builder
• This means that the Managers should create teams that have expertise
in certain areas
• This is done through regular updating of knowledge through seminars,
journals, internet research, and the adoption of technology.
• Activities include finding the right people, who can share the same
expertise in building knowledge-base.

• Sustaining and Maintaining Knowledge

• This is related to knowledge management.
• Activities include documenting and sharing the expertise among group
members.
• If an individual leaves the organization, the knowledge should stay with
other members of the group.
Managerial Role – Knowledge Leadership Role
• Continuous Improvement Supporter
• Managers’ role is to develop a quality culture and teambuilding.
• Problems are identified and solved for small but gradual improvement
• The role of the manager is to tell everybody that there exists a better way of doing the thing which we are
doing now. It is the path that TQM also advocates.

• Benchmarking Leader • Re-engineering Leader

• Involves identifying “best practices” or • Is the total, radical redesign of the system.
world-class performers in your area and Managers have to prepare resources (including
identification of gaps. subordinates) for a total transformation.
• This gap is bridged through systematic planning • Unlike continuous improvement, which is
and leadership. gradual, and benchmarking, which is moderate,
• Manager’s actions involve the identification of re-engineering is a dramatic transformation. So,
benchmarks, building teams to make changes, the risk is higher.
and evaluation of performance during the • Therefore, its management is more difficult as
change. compared to the other two change process.
Conclusion
Now that we understand “Management”,
let’s look at “Organization”.