Engineering Management

Geneva P.
Concon
DMET-3
Engineering Management
FUNCTIONS OF MANAGEMENT
Management is an art of getting things done through and with the people in formally organized groups.
It is an art of creating an environment in which people can perform and individuals and can co-operate
towards attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what
to do, when to do and see that it is done in the best and cheapest way”. Management is a purposive
activity. It is something that directs group efforts towards the attainment of certain pre – determined
goals. It is the process of working with and through others to effectively achieve the goals of the
organization, by efficiently using limited resources in the changing world. Of course, these goals may
vary from one enterprise to another. E.g.: For one enterprise it may be launching of new products by
conducting market surveys and for other it may be profit maximization by minimizing cost.
Fayol’s Functions Of Management
Henri Fayol (1841 – 1925) defined the five functions of management in his 1916 book Administration
industrielle et Generale, which defined his general theory of business administration and surprisingly,
this text is still seen as a one of the basic definitions of management. He defined five primary functions
of management and 14 principles of management: The five functions are:
1.To forecast and plan. Forecasting determines what is likely to be required form the organisation;
opportunities and demands for its services or products, this information helps define the current set of
prioritized objectives. Planning is the function of management that involves determining the best course
of action for achieving the prioritised objectives of the organisation as defined and agreed by the
executive and the governing body5. Planning requires managers to be aware of environmental
conditions facing their organisation (constraints, resources, competition, etc), the capacity and capability
of the organisation, and to forecast future conditions and trends. There are many different types of
plans and planning:
Strategic planning involves analysing competitive opportunities and threats, as well as the strengths and
weaknesses of the organisation, and then determining how to position the organization to best achieve
its objectives strategic planning has a long time frame and is the link between governance and
management with a shared responsibility to develop the ‘right strategy’ to ethically achieve the
organisation’s objectives.
Tactical planning is intermediate-range planning that is designed to develop relatively concrete and
specific means to implement the strategic plan.
Operational planning is short-range planning that is designed to develop specific action steps that
support the strategic and tactical plans. Project and program planning is short to medium term focused
on achieving the objectives the project or program has been created to deliver.
2.To organise. Organizing involves developing an organizational structure (hierarchy, divisions,
departments, etc) and allocating human and other resources to ensure the accomplishment of the
organization’s objectives and implementation of its strategic plan. The structure of the organization is
the framework within which effort is coordinated and is shaped by the ethical and cultural requirements
of the governing body. It involves the design of individual jobs within the organization and striking a
balance between the need for worker and management specialization and the need for people to have
jobs that entail variety and autonomy. Many jobs are now designed based on such principles as job
enrichment and teamwork. The management framework needs to support the needs of the governance
framework, and be accountable to the governing body for the actions and achievements of the
organization.
3.To command or direct subordinates. Providing direction and leadership to lower level managers and
workers so that they are aware of their obligations and are willing to carry them out efficiently and
effectively.
 Leading involves influencing others toward the attainment of organisational objectives. Effective
leading requires the manager to motivate subordinates, communicate effectively, and use
his/her power and authority judiciously. If managers are effective leaders, their subordinates
will be enthusiastic about exerting effort toward the attainment of the objectives.
4.To coordinate. Coordination is inherent in the other aspects of management and is primarily focused
on organization of the different elements of the organization, or an activity, so as to enable them to
work together effectively:
5.To control (French: controller). A manager must receive feedback about a process in order to analyze
any deviations from the plan and make necessary adjustments to correct negative deviations and
prevent future deviations controlling consists of three basic steps, plus the requirement to provide
assurance that the controlling process if functioning effectively:
 Establishing the plan or required performance standards;

 Comparing actual performance against the required standards at appropriate intervals, and
 Taking corrective or preventative action when necessary.
 Providing assurance to the organization’s governing body that all levels of management and
staff are held accountable for their actions and are performing and conforming to the
organizations objectives and governing principles.
Inherent in all of these functions is decision making! The primary role of management is to make
decisions and value judgements within the framework set by the governing body, including the
organisation’s ethical and cultural standards, to achieve the objectives set by the governing body. This
required the delegation of appropriate levels of responsibility and authority to decision makers and the
decision makers being prepared to accept this responsibility and be accountable for their actions. The
primary output from management can be defined as information and instructions that have to be
communicated to others. The communication is firstly to the workers so they understand what has to be
produced, where and when; secondly to the governing body to provide assurance that the right
decisions have been made and the right things are being produced in the right ways applying the
organisation’s policy framework correctly.

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Geneva P.

Fayol’s Functions Of Management

 Establishing the plan or required performance standards;

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