Reviewer in IE-MANE
Lesson 1: Engineering Management
Engineering - The profession in which a
knowledge of the mathematical and
natural science gained by study, experience,
and practice is applied with judgement to
develop ways to utilize, economically, the
materials and forces of nature for the benefit
of mankind
Management - A set of activities (including
planning and decision making, organising,
leading and control) directed at an
organisation's resources (human, financial,
physical and informational) with the aim of
achieving organisational goals in an efficient
and effective manner.
ORIGIN OF ENGINEERING
"Engineer" & "Ingenious" stem from Latin
word "Ingenium"
- Skillful
- Talent, natural capacity
- Clever inventions
ENGINEERING PROFESSION
"The art of directing the great sources of
power in nature, for the use and
convenience of man" -The first issue (1866)
of the English journal engineering
"The profession in which a knowledge of the
mathematical and natural sciences gained by
study, experience, and practice is applied with
judgment to develop ways to utilize,
economically, the materials and forces of
nature for the benefit of mankind." -
Engineers' Council for Professional
Development
WHAT ENGINEERS DO?
--U.S. BUREAU OF LABOR STATISTICS
 Engineers apply the theories and
principles of science and
mathematics to the economical
solution of practical technical
problems. Engineers design machinery,
products, systems, and processes for
efficient and economical performance
 Types Engineers: Civil Engineers,
Agricultural Engineers, Mechanical
Engineers, Electrical Engineers,
Industrial Engineers, Chemical
Engineers, Aerospace Engineers,
Computer Engineers, Software
Engineers Biomedical Engineers.
 Engineering Jobs: Manufacturing
Industries Service Industries
Government
MANAGEMENT
 Needs: Objectives, Resources, Methods,
Organization Setting, People
Management Levels
 First-line managers: Supervisor,
foreman
 Middle managers: Plant manager,
Division head, Chief, OM
 Top managers: Chief of board,
President, Executive, CEO
Manager
 Functions: Planning, Organizing,
Directing, and Controlling
Management Skills ENGINEERING MANAGEMENT
 Top management - Conceptual Engineering Management is the art and
(ability to solve long term problems science of planning, organizing, allocating
and view the total organization as an resources, and directing and controlling
Interactive system) activities which have a technological
 Middle management - Human component.
relation (ability to work effectively, Engineering management is a field that
lead and assure harmonious bridges the gap between engineering and
interpersonal relations) management.
 Supervisory management - Technical Engineering management involves the
(ability to use tools, apply specialized overall management of organizations with
knowledge and manage processes and an orientation to manufacturing,
techniques) construction, engineering, technology or
production.
- Manager should have
objective in mind
Planning - Helps manager to do right
things Lesson 2: History of Management Thought
- Deciding what/when
how/who
- Gathering and allocating
resources
- Coordinating the work of
Organizing the organization
- Deliberate creation a
configuration (how
authority is structured,
communication flows, tasks
are accomplished)
- Redirecting human behavior
Directing - Motivating others to
produce
- Influencing subordinates
Major Schools of Management Thought
- REPORTS (Keeping things
on track, Master A. Classical Approaches
Information list) B. Behavioral Management (or human
Controlling - GOAL (Steering resources) Approaches
performance towards C. Quantitative Management Approaches
desired goals, Goal Review)
D. Modern Approaches
- ΚΡΙ (Coordinating
monitoring and adjusting
performance, Setting
targets)
A. CLASSICAL APPROACHES  Command - to lead, select, and
 Developing universal principles for use in evaluate workers to get the best work
various management situations. toward the plan. Coordination - to fit
 (Assumption: People are rational) diverse efforts together, ensure
 Approaches Included: information is shared and problems
- Scientific Management solved.
- Administrative Principle  Control - to make sure things happen
- Bureaucratic Organization according to plan and to take
necessary corrective action
o Key principles of management:
SCIENTIFIC MANAGEMENT  Scalar chain - there should be a clear
- Frederick Taylor and unbroken line of communication
from the top to the bottom of the
o Emphasizes careful selection and training
organization.
of workers and supervisory support.
 Unity of command - each person
o Four guiding action principles:
should receive orders from only one
 Develop for every job a "science" that
boss.
includes rules of motion, standardized
 Unity of direction - one person should
work implements, and proper working
be in charge of all activities with the
conditions for every job.
same performance objective.
 Carefully select workers with the right
- Mary Parker Follett
abilities for the job.
o Groups and human cooperation
 Carefully train workers to do the job
 Groups are mechanisms through which
and provide proper incentives.
individuals could combine their talents
 Support workers by carefully planning
for a greater good.
their work and removing obstacles.
 Organizations as cooperating
- The Gilbreths
"communities" of managers and
o Motion study - Science of reducing a job
workers.
or task to its basic physical motions.
 Manager's job is to help people in the
o Eliminating wasted motions improves
organization cooperate and achieve an
performance.
integration of interests.

ADMINISTRATIVE PRINCIPLE
BUREAUCRATIC ORGANIZATION
- Henri Fayol
- Max Weber
o Proper management of organizations
o Rational and efficient form of organization
and of the people within them
founded on logic, order, and legitimate
o Five rules or duties of management:
authority.
 Foresight - to complete plan of action o Bureaucracy- An ideal, intentionally
for the future.
rational, and very efficient form of
 Organization - to provide and mobilize
organization. Based on principles of logic,
resources to implement the plan.
order, and legitimate authority.
o Characteristics of bureaucratic
MASLOW'S THEORY OF HUMAN NEEDS
organizations:
 Clear division of labor o A need is a physiological or psychological
 Clear hierarchy of authority deficiency a person feels compelled to
 Formal rules and procedures satisfy.
 Impersonality o Need levels
 Careers based on merit  Physiological
o Possible disadvantages of bureaucracy:  Safety
 Excessive paperwork or "red tape"  Social
 Slowness in handling problems  Esteem
 Rigidity in the face of shifting needs  Self-actualization
 Resistance to change
 Employee apathy

B. BEHAVIOURAL MANAGEMENT
(or human resources) approaches…
 Human needs, the work group, and social
factors in the workplace
 Approaches Includes:
- Hawthorne Studies
- Maslow’s Theory of Human Needs
- McGregor’s Theory X and Theory Y
- Argyris’s Theory of Adult Personality
HAWTHORNE STUDIES
o Employee attitudes, interpersonal
relations and group processes
 Some things satisfied some workers but
not others.
 People restricted output to adhere to
group norms.
o Lessons
 Social and human concerns as keys to
productivity.
 Hawthorne effect - people who are
singled out for special attention perform
as expected.
MCGREGOR'S THEORY X AND THEORY Y
o Managers create self-fulfilling prophecies.
o Theory X managers create situations
where workers become dependent and
reluctant.
o Theory Y managers create situations
where workers respond with initiative and
high performance.
 Central to notions of empowerment and
self-management.
o McGregor’s theory x assumes that workers:
 Dislike work
 Lack ambition
 Are irresponsible
 Resist change
 Prefer to be led
o McGregor’s theory y assumes that workers:
 Willing to work
 Capable of self-control
 Willing to accept responsibility
 Imaginative and creative
 Capable of self-direction
ARGYRIS'S THEORY ADULT PERSONALITY
o Classical management principles and
practices inhibit worker maturation and
are inconsistent with the mature adult
personality.
o Management should accommodate the
mature personality.
o Management practices consistent with the
mature adult personality:
 Increasing task responsibility
 Increasing task variety
 Using participative decision making
C. QUANTITATIVE APPROACHES
 Use of mathematical techniques for
management problem solving.
WHAT IS THE ROLE OF QUANTITATIVE
ANALYSIS IN MANAGEMENT?
o MANAGEMENT SCIENCE (OPERATIONS
RESEARCH) FOUNDATIONS
 Scientific application of mathematical
techniques to management problems
 Techniques and applications include:
 Mathematical forecasting
 Inventory modeling
 Linear programming
 Queuing theory
 Network models
 Simulations
QUANTITATIVE ANALYSIS TODAY
 Use of staff specialists to help managers
apply techniques.
 Software and hardware developments
have expanded potential quantitative
applications to managerial problems.
 Good judgment and appreciation for
human factors must accompany use of
quantitative analysis.
D. MODERN APPROACHES
 Systems and contingency views of
organization.
SYSTEMS THINKING
o System - Collection of interrelated parts
that function together to achieve a
common purpose.
o Subsystem - A smaller component of a
larger system.
o Open systems - Organizations that
interact with their environments in the
continual process of transforming
resource inputs into outputs.
CONTINGENCY THINKING
o Tries to match managerial responses with
problems and opportunities unique to
different situations.
o Especially individual or environmental
differences.
o No "one best way" to manage.
o Appropriate way to manage depends on
the situation.