Chapter 2
Historical Development of
Engineering Management
Chapter Outline
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Origins of Engineering Management
Impact of Industrial Revolution
Development of Scientific Management
Development of Administrative
Management
• Development of Behavioral Management
• Current Contributions
Learning 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
Origins of Engineering Mgmt –
Ancient Civilizations
Mesopotamians
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~4500 - 2000 B.C.
Used canals for irrigation
Had management system and job descriptions
Hammurabi Law (2023-2081 B.C.)
Egyptians
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4000 – 1600 B.C.
Built pyramids (2.3M stone blocks, @5000 lbs)
100,000 men x 20~30 years
Used managerial principles
Origins of Engineering Mgmt –
Ancient Civilizations
Chinese
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Principles of organizing, planning, directing, controlling
(~1100 B.C.)
Built Great Wall: ~4000 miles (~500 B.C.)
Romans
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284 B.C.
Estate and farm management
Emphasis on personnel selection and placement
Known for building roads, bridges, and water
management
Origins of Engineering Mgmt –
Ancient Military
Cyrus the Great (Persia) 576-530 B.C.
– Use of staff
– Recognized use of order and division of work
Alexander the Great (Greek) 336-323 B.C.
– Distinction between line and staff
– Used discipline and delegation
Origins of Engineering Mgmt –
Ancient Mass Production
Arsenal of Venice (Early 1400s)
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Manufacturing
Numbering of inventory parts
Personnel policies
Standardization of parts
Assembly line
Accounting in two journals and one ledger, with annual
auditing
Industrial Revolution 1750-1800:
Important Inventions
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Spinning Jenny, James Hargreaves, 1764
Water Frame, Richard Arkwright, 1771
Spinning Mule, Samuel Crompton, 1779
Power Loom, Edmund Cartwright, 1785
Chlorine Bleach, Claude Louis Berthollet, 1785
Steam Engine, James Watt, 1769
Screw-cutting Lathe, Henry Maudslay, 1797
Interchangeable Manufacture, Eli Whitney, 1798
Industrial Revolution:
Problems of the Factory System
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Recruiting/Training Workers
Explosive Growth in Mill Towns
Supervisors, No Background
Upper Management, Sons or Relatives
Industrial Revolution:
Industrial Development in America
• Fist advanced textile mill was built in 1790, 269
mills in 1810
• Canals (1790~1830): William Weston
• Railroad (1830~1850): John Stevens
• Telegraph line (1844~1860): Samuel Morse
• Steel making (1870~1900): Andrew Carnegie
Industrial Revolution:
Development of Eng. Education
• Apprenticeship, 18th century
• First Eng. School: 1747 in France  Ecole des
Ponts at Chaussees (School of Bridges and Roads)
• US Military Academy at West Point, 1802
• Civil Eng. Program at West Point, 1817
• First Eng. School: Norwich (Connecticut) Univ.
(1819)
• Rensselear Polytechnic Institute (1823), Union
College (1845), Harvard, Yale, Michigan (1847)
• Morrill Land Grant Act, 1862
Management Philosophies
• Scientific Management
• Administrative Management
• Behavioral Management
Scientific Management
• Charles Babbage (1792-1871)
– Invented 1st mechanical calculator “difference
engine”
– Method of observing manufactures (1832)
• Henry Towne and ASME: Management Div.
(1886)
• Frederic W. Taylor: (1856-1915)
– Time and Motion Studies
– Believed in selecting, training, teaching, and
developing workers
Scientific Management
• Frank B. Gilbreth: (1868-1924)
– Best way of laying bricks
– Devised a system for classifying hand
motions into 17 basic divisions Therbligs
• Lillian Moller Gilbreth: (1878-1972)
– Psychology of Management (Human Factors)
– First Lady of Management
Scientific Management
• Replaced old rule of thumb
• Believed in selecting, training, teach and
developing workers
• Time Study
• Standards planning
Criticism of Scientific Management
• Productivity, not quality
• Separating Planning and execution
Administrative Management
• Henri Fayol (1841-1925):
– Developed 14 “general principles of administration”
– Divided management activities into five divisions
(Planning, Organizing, Command, Coordination,
Control)
• Max Weber (1864-1920):
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Division of labor
Hierarchy of authority
Employment based on expertise
Decisions & rules in writing
Separation of management & ownership
Behavioral Management
• Hawthorne Studies
– 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
• Abilene Paradox
– Failing to manage agreement effectively
Behavioral Management
• Maslow: Hierarchical theory of human needs
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Biological / Physiological Needs
Security / Safety Needs
Social Needs
Ego Needs
Self-actualization Fulfillment
Contemporary Management:
Issues and Challenges
• Quality Management
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Meeting customers’ requirements
Commitment by senior management and all employees
Continuous improvement
Planning quality into products and processes
Teams
Employee involvement and empowerment
Recognition
Benchmarking
Certification (ISO)
Six sigma
Contemporary Management:
Issues and Challenges
• Customer Focus
– CASA/SME CIM
Wheel
Contemporary Management:
Issues and Challenges
• Information Technology
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Computers and Microprocessors
Internet
Engineering Functions: Design, Manufacturing
Business Practice: Supply Chain, e-Business
• Project Management
– Complex systems
– Dynamic
• Globalization
Contemporary Management:
Successful Executives
• Chester Barnard (telecommunications executive)
– Functions of the Executive
• Alfred P. Sloan (GM)
– Annual styling changes
– Pricing structure
• Walt Disney (Walt Disney)
– Treating customers as “guests”
• Thomas Watson Jr. (IBM)
– Service
– Customer satisfaction
Contemporary Management:
Successful Executives
• Admiral Zumwalt (Navy)
– “People will respond well to being treated as grownups”
• Bill Hewlett & Dave Packard (HP)
– Management by walking around
• Sam Walton (Walmart)
– Driving costs out of the merchandising system
• Bill Gates (Microsoft)
– Range of products
• Jack Welch (GE)
– innovative management strategies and leadership style
Contemporary Management:
Famous Authors
• Peter Senge
– The Learning Organization
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Systems thinking
Personal mastery
Mental models
Building shared vision
Team learning
Contemporary Management:
Famous Authors
• Steven Covey
– The Seven Habits of Highly Effective People
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Habit 1: Be Proactive: Principles of Personal Vision
Habit 2: Begin with the End in Mind: Principles of Personal
Leadership
Habit 3: Put First Things First: Principles of Personal
Management
Habit 4: Think Win/Win: Principles of Interpersonal
Leadership
Habit 5: Seek First to Understand, Then to be Understood:
Principles of Empathetic Communication
Habit 6: Synergize: Principles of Creative Communication
Habit 7: Sharpen the Saw: Principles of Balanced SelfRenewal
Contemporary Management:
Famous Authors
• Tom Peters
– In Search of Excellence: Lessons from
America's Best Run Companies
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1) A bias for action,
2) Staying close to the customer,
3) Autonomy and entrepreneurship,
4) Productivity through people,
5) Hands-on, value driven,
6) Stick to the knitting,
7) Simple form, lean staff, and
8) Simultaneous loose-tight properties.
Contemporary Management:
Famous Authors
• Michael Hammer
– Re-engineering the corporation
• Scott Adams
– Dilbert comic strip
• Michael Porter
– Strategic Management and Strategy Theory
• Peter Drucker
– Management By Objectives
• Thomas Friedman
– The World Is Flat: A Brief History of the Twenty-First
Century
Discussion Questions
1. Compare the impacts of Industrial Revolution
with the “Information Revolution”.
2. Could you identify some other issues and
challenges faced in today’s engineering
management fields?
3. Could you identify some other famous authors
who are influencing management practices of
today?