ENGINEERING
MANAGEMENT
Module 1: Introduction
to Engineering
Management
What is Management?
The word “Management” originates from Old French ménagement “the art of
conducting, directing”, and from Latin manu agere “to lead by the hand”)
What is Management?
The process of achieving organizational goals by engaging in the four major functions of
planning & decision-making, organizing & staffing, directing/leading, and controlling.
Identifying a “force”/group of people whose job is to direct the effort and activities of other
people towards a common organizational objective.
The performance of conceiving and achieving desired results by means of group effort
consisting of utilizing resources, that will determine the success and failure of an organization.
Osama Shaltami, 2020
What is Engineering Management?
• Engineering management is a combination of students’ technical capabilities,
leadership knowledge and skills in order to prepare them for successful
careers they chose in highly technical organizations.
[Link]
What is Engineering Management?
“Engineering Management is concerned with the design, installation,
and improvement of integrated systems of people, material,
information, equipment, and energy by drawing upon specialized
knowledge and skills in the mathematical, physical, and social sciences,
together with the principles and methods of engineering analysis and
design to specify, predict, and evaluate the results to be obtained from
such systems”
Huthaifa Khalil, n.d
What is Engineering Management?
“The process of designing and maintaining an environment in which, individuals,
working together in groups, efficiently accomplish organizational goals/objectives.
– Management applies to any kind of organization.
– It applies to all managers at all organizational levels.
– Managing is concerned with productivity, which implies effectiveness and efficiency.”
Osama Shaltami, 2020
What is Engineering Management?
“Engineering management is the fusion of business
and engineering principles. By having knowledge of
economics and management they can forecast or can
predict the utility, advantages, disadvantages of the
product. also get to know the scope of the product
and it's contribution in growth. Specialized form of
management that is concerned with the application
of engineering principles to business practice.”
Huthaifa Khalil, n.d.
What is Engineering Management?
“Scientific discipline, which designs, implements
and/or develops models, processes and systems
by taking into account the engineering
relationships between the management tasks of
planning, organizing, leading and controlling and
the human element in production, research,
marketing, finance and other services.”
Huthaifa Khalil, n.d
Historical Evolution of Management
Management Thought Period Remarkable Contribution/Development
Ancient Management 3000 BC - 120 BC Production of Basic Engineering Ideas (Planning, Organizing,
Thoughts Controlling, Leading)
Production Practice 15th Century The building of factories and development of labour law
theories, the beginning of cost consideration and finance
management and early business alignments.
Industrial Revolution 18th Century Development and Application of duties of Managers; and
strengthening the organization to effect improvements
Industrial Development 19th Century Advanced Factories involving Machines and People
Science Management The need to teach Management in Academic Schools and
Universities; and Development of Training Programme
20th Century
Human Factors Behavioural Management and the effect of Incentive Schemes;
People’s Behavior
(Chang, 2005)
Evolution of Approaches to Management
Major Classification of Management Types
Scientific Management
Classical Approach
Bureaucratic Management
Administrative Management
Group Influences
Hawthorne Studies
Behavioural Approach Maslow’s Needs Theory
Theory X and Theory Y
Model I vs Model II values
Management Science or mathematical approach
Quantitative Approach
Operations Management
Management Information System
The Systems Theory
Modern Approaches
Contingency Theory
Theory Z and Quality Management
OSANO, 2013
Scientific Management
• Frederick Winslow Taylor
• – “Father "of Scientific Management (systematic study of the relationships
between people and tasks for the purpose of redesigning the work process
for higher efficiency”) in the late 1800’s to replace informal rule of thumb
knowledge.
• – Taylor sought to reduce the time a worker spent on each task by optimizing
the way the task was done.
Taylor’s Four Principles of Scientific
Management
• Scientifically study each part of a task and develop the best method for
performing it.
• Carefully select workers and train them to perform the task using the
scientifically developed method.
• Cooperate fully with workers to ensure that they use the proper method.
• Divide work and responsibility so that management is responsible for
planning work methods using scientific principles and workers are responsible
for executing the work accordingly.
Bureaucratic Management
Max Weber
– Developed the concept of bureaucracy as a formal system of organization
and administration designed to ensure efficiency and effectiveness.
Weber’s Theory of Bureaucracy
Weber’s Five Principles of Bureaucracy
• Authority is the power to hold people accountable for their actions.
• Positions in the firm should be held based on performance, not social contacts.
• Position duties are clearly identified so that people know what is expected of them.
• Lines of authority should be clearly identified such that workers know who reports
to who.
• Rules, standard operating procedures (SOPs), and norms guide the firm’s operations.
Administrative Management Theory
• Fayol developed theory of management. According to him managerial
excellence is a technically ability and can be acquired. He developed theories
and principles of management which are universally accepted and make him
universalistic. He was pioneer of the formal education in management.
Fayol's principles of management meet the requirements of modern
management.
Henry Fayol’s 14 Principles of Management
• Division of Work Individual Interest to • Stability of Tenure of
• Authority and General Interests Personnel
Responsibility • Remuneration • Initiative
• Discipline • Centralization • Spirit of Cooperation
• Unity of Command • Scalar Chain Hierarchy
• Unity of Direction • Order
• Subordination and • Equity
Division of Work
• The more people
specialize the more
efficiently they can
perform their work.
Specialization increases
output by making
employees more
efficient
Authority and Responsibility
• Responsibility is a corollary and a
natural consequence of authority.
Responsibility implies an obligation
to perform the task in a satisfactory
manner.
Discipline
• Good discipline is the result of
effective leadership a clear
understanding between
management and workers regarding
the organization’s rules and the
judicious use of penalties for
violation of the rules.
Unity of Command
• Every employees should receive
order and instruction from only
one superior. Dual command is a
perpetual source of conflict. If a
person receives order from more
than one superior, it would lead to
confusion and chaos.
Unity of Direction
• Unity of Direction: - This principle
calls for one manager one plan for
all operations having the same
objectives. This principle when
applied properly, ensure unity of
action and facilitates coordination.
Subordination of Individual Interest to the
General Interests
• The interest of the organization is
above the individual and the group.
This can be achieved when
manager set an example through
their exemplary behaviour. They
must be prepared to sacrifice their
personal interest when ever such
interest are in conflict with
organizational interest.
Remuneration
• Workers should be paid a fair wages
for their service. The method of
wage payment should provide
maximum possible satisfaction to
both employees and employer.
Centralization
• Everything that goes to increase the
subordinate role is decentralization,
everything which goes to reduce it is
centralization. Whether decision
making is centralized (to management)
or decentralized (to subordinates) is a
matter of proper proportion. The
problem is to find the best amount of
centralization in each case.
Scalar chain hierarchy
• The graded chain of authority from
top to bottom through which all
communication flow is formed the
“Scalar Chain”.
Order
• People and material should be in
the right place at the right time. A
place for everything and everything
in its place.
Equity
• Manager should be both friendly
and fair to their subordinates.
Employees should be justice and
kindness promotes better relation
between employees and employer.
Stability of tenure of personnel
• Management must implement
practice which encourages long
term commitment of employees.
Instability of tenure can
significantly affect the fortunes of a
company
Initiative
• Employees must be encouraged to
think and implement a plan of
action even through some mistake
may result. The opportunity to
perform independently is an
essential component of employee
growth and development.
Spirit of Co-operation (Spirit de crops)
• This principle state that “Union is
Strength”. Fayol defined esprit de
corps as unity of effort through
harmony of interest. Promoting
team sprit will give the organization
a sense of unity.
Modern Management Theory
• The past thirty years witnessed a “Knowledge Explosion” in the field of
managements. During this period management writer have been primarily
concerned with integrating the findings of scientific management, principles of
management and human relations movements. However two integrating trends have
developed throwing adequate light on the dynamic nature of management namely:
System Approach and Contingency Approach. These modern management
theories considered all elements the whole organization as well as components parts.
The organization is viewed as adaptive systems which must in order to survive
adjust to environmental changes.
A. System Approach
• A system in simple terms is a set of interrelated parts. It is a group of
interrelated but separate elements working towards a common purpose. The
arrangement of elements must be orderly, there must be proper
communication facilitating interaction between the elements and finally the
interaction should lead to achieve a common goal. The organization
transforms input into a variety of outputs and offers the same to the external
environment in the form of products good and services. Sale of the output
provides the necessary energy (feedback) to the system cycle.
The system approach provides a unified focus to organizational efforts. A major
contribution of the system approach results from its strong emphasis on the
interrelatedness or mutuality of the parts of an organization. Another important
benefit of system theory lies in its treatment of the organization as an open system.
A close system imports something from the environment and exports something into
the environment.
Characteristics of System Theory of
Management
The system approach provides a unified focus to organizational efforts. A major
contribution of the system approach results from its strong emphasis on the
interrelatedness or mutuality of the parts of an organization. Another important
benefit of system theory lies in its treatment of the organization as an open system.
A close system imports something from the environment and exports something into
the environment.
Dynamic
Within the organization the process
of interaction between subsystem is
dynamic.
Multilevel and
Multidimensional
It is micro within the
nation’s industrial network
and it is macro with respect
to its internal units. The
modern manager is forced
to recognize the importance
of parts as well as the
whole.
Multi-motivated
Motivation is an
extremely complex
process and drawing
simplistic equation is a
futile exercise.
Probabilistic
Modern theory tends to
probabilistic. “Statement in
modern theory tends to be
qualified with phrases such
as “may be”, in general”
and usually” because
modern theory recognizes
that few predictive
statement can be made with
certainty.
Descriptive
Individuals are free to select
the objectives and the
methods to improve
organizational effectiveness.
Multivariable
There is no simple cause effect
phenomenon in organizational
activities. An event may be the
product of many factors that are
in turn interrelated and
interdependent.
Adaptive
An organization and its
environment are expected to
rearrange their parts.
Organization tries to cope with
environment changes through
the “feedback” mechanism. An
organization must produce
output acceptable to
components in environment.
B. Contingency Theory
“there is no one best way to manage”.
• According to this approach the best way to lead, plan organize & conduct
managerial activities varies with the situations. There are no plans,
organization structure leadership style or control that will fit all situations.
A manager trained in the contingency approach may offer a solution that is
responsive to the characteristics of the total situation being faced. Organization
characterized by the limited resources, unskilled labour force, limited training
opportunities, limited products offered to local markets- work simplification would be
ideal. Job enrichment programme would work better if the organization employs
skilled labour force. Applying a contingency approach requires that managers
diagnose a given situation & adapt to meet the conditions present.
The strength of contingency theory
• First it focuses attention on specific situation factors that influence the
appropriateness of one managerial strategy over another.
• Second it highlights the importance to managers of developing skills in
situational analysis. Such skills will help managers find out important
contingency factors that influences their approach to managing.
The contingency approach is a useful instructional device in the sense that it
compels us to be aware of the complexity in every situation and forces us to take an
active and dynamic role in trying to determine what would work best in each
case. The contingency theory is concerned with achieving a “fit” between
organization and its environment. The contingency approach dose not
incorporates all aspects of system theory. The goal of integrating functional,
quantitative behavioral and system approaches in the form of contingency model
may prove to be too difficult to realize because of the incomplete development of
the earlier approaches.
Additional Approaches
Empirical or Case Approach
• – Studies experience through cases.
• – Identifies successes and failures.
Mathematical or “Management Science”
Approach
• – Sees managing as mathematical processes, concepts, symbols, an models.
• – Looks at management as a purely logical process, expressed in
mathematical symbols and relationships.
Decision Theory Approach
• – Focuses on the making of decisions, persons or groups making decisions,
and the decision-making process.
• – Some theorists use decision making as a springboard to study all enterprise
activities. The boundaries are no longer clearly defined.
Re-engineering Approach
• – Concerned with fundamental re-thinking, process analysis, radical redesign,
and dramatic results.
Socio-technical Approach
• – Technical system has a great effect on the social system (personal attitudes,
group behavior).
• – Focuses on production, office operations, and other areas with close
relationships between the technical system and people.
Group Behaviour Approach
• – Emphasizes behavior of people in groups.
• – Based on sociology and social psychology.
• – Primarily studies group behavior patterns.
• – The study of large groups is often called organizational behavior.
Interpersonal Behaviour Approach
• – Focuses on interpersonal behavior, human relations, leadership, and
motivation.
• – Based on individual psychology.
Cooperative Social Systems Approach
• – Concerned with both interpersonal and group behavioral aspects leading to
a system of cooperation.
• – Expanded concept includes any cooperative group with a clear purpose.
McKinsey’s 7-S Framework
• – The seven S’s are:
• (1) strategy,
• (2) structure,
• (3) systems,
• (4) style,
• (5) staff,
• (6) shared values, and
• (7) skills.
Total Quality Management Approach
• – Draws together concepts, principles, techniques, and knowledge from
other fields and managerial approaches.
The Managerial Roles Approach
• – Original study consisted of observations of five chief executives.
• – On the basis of this study, ten managerial roles were identified and
grouped into interpersonal, informational, and decision roles.
Engineering Management Domain
Huthaifa Khalil, n.d
Engineers/Managers
Managers within the field of engineering are trained to understand Human
resource management, finances, industrial psychology, quality control,
operations research and environmental management.
Huthaifa Khalil, n.d
Management
Needs
Activity 1 - Understanding the Field
• In your own words, explain what Engineering Management [Link]
how it is different from pure engineering work and why it is important in
real-world engineering projects.
Activity 2 - Management Functions in Action
• Describe how the four management functions: planning, organizing, leading,
and controlling, would be applied in a 3-day engineering [Link] at least
one example for each function.
Activity 3 - Management Skills Reflection
• Write a short reflection identifying:
• Two technical skills
• Two human skills
• Two conceptual skills
• Explain why each skill is important for an engineering manager.
Activity 4: Personal Insight
• As a future geodetic engineer, explain how learning engineering management
can help you in your [Link] at least two real-life situations where
management skills would be necessary.
Activity 5: Personality Test
• Answer the personality test and make a reflection in understanding your
management potential and work style, personality type related to leadership,
Teamwork style and Decision-making tendencies
• Free personality test, type descriptions, relationship and career advice |
16Personalities