Case Study 1 Seagraves

 Due: Wednesday, Feb. 1

 CS, Peer Evals, and Rubric online
 Five (5) minutes to:
– Pick your team
– Exchange phone/email
– Make a plan

Chapter 2 Historical Perspectives 1

 Chapter 2
ISEN 442

Historical Developments
Spring 2017

ISEN 442: Organizational Systems

Chapter Objectives

 Describe the origins of engineering

management
 Identify the different basic management
philosophies
 Discuss the future issues that will affect the
continued development of engineering
management.

Chapter 2 Historical Perspectives 3

Ancient Times

 6000BC – tribes living in groups with

some form of structure (management)
 4500 BC – irrigation = first crops which
required bookkeeping and
management

Chapter 2 Historical Perspectives 4

3000 BC

 Mesopotamia – north of Babylon

 Temples were organized into
corporations with a common
management
– One high priest – ceremonial and religious
activities
– One administrative high priest coordinated

Chapter 2 Historical Perspectives 5

Egypt 4500 years ago

 Pyramid of Cheops
 13 acres
 2300 stone blocks @5000 lbs each
 10,000 men 20-30 years to build
 Levers, rollers, and ramps
 Tolerances ½ inch
 Same effort as it took to put men on the
moon!
Chapter 2 Historical Perspectives 6
Ancient - Egyptians

 4000 – 1600 B.C.

 Used managerial principles know at the
time
 Built pyramids - construction
 Used job descriptions

Chapter 2 Historical Perspectives 7

Code of Hammurabi (2123-2081
BC)

 Codes of laws (282) which governed

business relationships of other social
matters
 If a builder builds something and it fails
causing the death of the owner, the
builder shall be put to death!

Chapter 2 Historical Perspectives 8

Ancient – Military
 356-323 B.C.
 Alexander the Great
Staff system
– Informal Council with specific functions
– Supply, Provost Marshal, and Engineer

Chapter 2 Historical Perspectives 9

Ancient - Romans

 284 B.C.
 Estate and farm management
 Emphasis on personnel selection and
placement
 Known for building roads, bridges, and
water management
 Military – Roman Legions (centurions)
Chapter 2 Historical Perspectives 10
Imperial Rome

 Governed 50 million people

 Empire broken down into 4 regions, 13
dioceses, and 110 provinces
 Impressive road system from which to
move troops and communications

Chapter 2 Historical Perspectives 11

Roman Empire Vast and
Influential

Chapter 2 Historical Perspectives 12

City of Rome a design marvel!

Chapter 2 Historical Perspectives 13

Medieval Period

 Four centuries of Dark Ages

 No books on management written

Chapter 2 Historical Perspectives 14

China-2350 BC

 Organization by Chinese emperors

 Spread to India 321 BC
 Brahman Kaultilya – proposed pure
objectivity in dealing and much less on
morality
– Sinister and unscrupulous management

Chapter 2 Historical Perspectives 15

Origins – Arsenal of Venice

 Early 1400s
 Manufacturing
 Numbering of inventory parts
 Standardization of parts
 Assembly line
 Could have been the start of industrial
engineering work

Chapter 2 Historical Perspectives 16

Origins – Arsenal of Venice

 Early 1400s

Chapter 2 Historical Perspectives 17

Origins – Arsenal of Venice

 Early 1400s

Chapter 2 Historical Perspectives 18

Arsenal – Venice 1400’s

 Factories
– Manufacturing arms
– Storage of equipment (inventory)
– Assembling and refitting of ships held is
reserve

Chapter 2 Historical Perspectives 19

Arsenal – Venice 1400’s

 Systematic warehousing policies

 Well developed personnel policies
 Piecework pay and day wages
 Standardization of rudders for ships
 Two journal accounting
 Cost accounting and cost controls

Chapter 2 Historical Perspectives 20

Venice Today

Chapter 2 Historical Perspectives 21

 Industrial Revolution
1750-1800 England
End of the cottage industry ---factories

– Spinning Jenny – Power Loom

– Water Frame – Chlorine Bleach
– Mill – Steam Engine
– Power Loom – Screw-cutting
Lathe
Later in the 1800’s in the US
Interchangeable Manufacture

 Page 26 – Thomas Jefferson to John

Jay
 “Construction of muskets…. Every part so
exactly alike…may be used for every other
musket in the magazine… fitted in the most
perfect manner.. Advantage when out for
repair”

Chapter 2 Historical Perspectives 23

Industrial Revolution (IR)
Problems of the Factory System

 Recruiting/Training Workers
 Explosive Growth in Mill Towns
 Poor living conditions
 Supervisors, No Background
 Upper Management, Sons or Relatives
not scientific at all
 No professional managers!
Chapter 2 Historical Perspectives 24
IR in America

 The colonies were viewed as a captive

market for English factories
 English Iron Act (1750) – illegal for
colonies to build mills and furnaces
 Textile mills were started in New
England

Chapter 2 Historical Perspectives 25

War of 1812

 Accelerated the building of American

factories
 1830’s most factories were small and
used water power
 Springfield Armory – government
owned

Chapter 2 Historical Perspectives 26

America….

 Canals were the first construction

practices
 Erie Canal 1816-1825 363 miles from
Albany to Buffalo
 Training for our early civil engineers
 Studied by the French

Chapter 2 Historical Perspectives 27

Railroads

 First high tech industries

 Col. John Stevens “father of American
engineering”
 First rail line
– 23 mile line Camden & Amboy line
– Samuel Morse – 1844 – 1860 = 50,000 miles of
telegraph lines
– Set the stage for the telephone

Chapter 2 Historical Perspectives 28

Col. John Stevens, III

 Col. John Stevens, III (June 26, 1749 -

March 6, 1838) was an American lawyer,
engineer, and inventor who constructed the
first U.S. steam locomotive, first steam-
powered ferry, and first U.S. commercial ferry
service from his estate in Hoboken. He was
influential in the creation of U.S. patent law

Chapter 2 Historical Perspectives 29

Col. John Stevens, III

Chapter 2 Historical Perspectives 30

The American Explosion

 Fostered by the railroads

 Andrew Carnegie (1835- 1919)
 Penn Railroad
 1872 with Andrew Bessemer a new
process for steel production
 Out produced England!

Chapter 2 Historical Perspectives 31

Management Philosophies

1) Scientific

2) Administrative

3) Behavioral

Chapter 2 Historical Perspectives 32

Scientific Management

Frederic W. Taylor: Father of Scientific

Management
1856-1915

– Time and Motion Studies

– Believed in selecting, training, teaching,

and developing workers
– Beginnings of IE fostered
Chapter 2 Historical Perspectives 33
Fred Taylor – Scientific
Management

A handout on Fred Taylor is provided on

the eCampus web site. This is a “must
read” document!

Chapter 2 Historical Perspectives 34

Scientific Management

Frank B. Gilbreth: (1868-1924) Devised a

system for classifying hand motions into 17
basic divisions Therbligs [time and motions
studies and synthetic work standards]
Lillian Moller Gilbreth: 1878-1972)
First Lady of Management, Human Factors
born

Chapter 2 Historical Perspectives 35

Frank and Lillian Gilbreath

Two monumental personalities in the Scientific Management

Development and Human Factors growth

Chapter 2 Historical Perspectives 36

Scientific Management

 Replaced old rules of thumb

 Believed in selecting, training,
teach and developing workers
 Time Study
 Standards planning
 Pay based on output (incentive)
Chapter 2 Historical Perspectives 37
Administrative Management

 Henri Fayol

 Max Weber

Chapter 2 Historical Perspectives 38

Henri Fayol 1841-1925

 Engineer

 Developed 14 “general principles of

administration”

 Divided management activities into five

divisions

Chapter 2 Historical Perspectives 39

Fayol

 Planning
These are the classical
 Organizing functions that all
engineering
management texts
 Command cover

 Coordination
 Control

Chapter 2 Historical Perspectives 40

Administrative
Functions of Managers

 Planning
 Organizing
 Staffing (included in organizing)
 Leading
 Controlling

Chapter 2 Historical Perspectives 41

Comparison
Fayol and Taylor

 Both referenced functional specialization

Fayol-principles of management
Taylor-secure efficiencies
– Promoted classical industrial engineering
– But we have lost our way to over emphasis on OR
(English “invention” WWII)
 Both emphasized “one best way”

Chapter 2 Historical Perspectives 42

Administrative Management

 Max Weber (1864-1920):

Major influence in a classical
 organizational theory
– Division of labor
– Hierarchy of authority
– Employment based on
on expertise
– Inflexible
– Rigid
– Impersonal

Chapter 2 Historical Perspectives 43

Behavioral Management

 Hawthorne Studies
– Western Electric plant in Chicago
– Early 1930’s

 Abilene Paradox

 Maslow Theory (early 1940’s)

Chapter 2 Historical Perspectives 44
Behavioral Management
Hawthorne Studies – 30’s

Read page 39

Original intent was find the level of

illumination that made the work of female coil
winders, relay assemblers, and small parts
inspectors more efficient.

Conclusion - persons singled out for special

attention perform as expected

Chapter 2 Historical Perspectives 45

 Behavioral Management Abilene
Paradox

The Abilene paradox is a paradox in which a group of people

collectively decide on a course of action that is counter to the
preferences of any of the individuals in the group.
It involves a common breakdown of group communication in which
each member mistakenly believes that their own preferences
are counter to the group's and, therefore, does not raise
objections.
A common phrase relating to the Abilene paradox is a desire to not
"rock the boat".

Chapter 2 Historical Perspectives 46

Behavioral Management Maslow –
1940’s into the 1960’s

Hierarchical theory of human needs

Biological / Physiological Needs

Security / Safety Needs
Social Needs
Ego Needs
Self-actualization
Fulfillment
Chapter 2 Historical Perspectives 47
Overview of Maslow’s Needs
Theory

Chapter 2 Historical Perspectives 48

Contemporary Management Issues
- Challenges

 Quality and Productivity

 Customer Focus
 Information Technology
 Project Management
 Globalization
 Management Theory and Leadership

Chapter 2 Historical Perspectives 49

Announcements

 Read
– Taylor Handout
 Will discuss in class on Monday, Jan. 30
– Chapter 3

Chapter 2 Historical Perspectives 50