This chapter outlines the historical development of engineering management from ancient civilizations through the present. It discusses the origins of engineering management in ancient Mesopotamia, Egypt, China, and Rome. During the Industrial Revolution, new inventions led to problems in factory management that drove approaches like scientific management. Administrative, behavioral, and contemporary approaches to management then developed in response to changing business needs. The chapter introduces influential thinkers, successful executives, and authors that have shaped the field of engineering management.

1. Chapter 2
Historical Development of
Engineering Management

2. • Origins of Engineering Management
• Impact of Industrial Revolution
• Development of Scientific Management
• Development of Administrative
Management
• Development of Behavioral Management
• Current Contributions
Chapter Outline

3. 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

4. Origins of Engineering Mgmt –
Ancient Civilizations
Mesopotamians
• ~4500 - 2000 B.C.
• Used canals for irrigation
• Had management system and job descriptions
• Hammurabi Law (2023-2081 B.C.)
Egyptians
• 4000 – 1600 B.C.
• Built pyramids (2.3M stone blocks, @5000 lbs)
• 100,000 men x 20~30 years
• Used managerial principles

5. Origins of Engineering Mgmt –
Ancient Civilizations
Chinese
• Principles of organizing, planning, directing, controlling
(~1100 B.C.)
• Built Great Wall: ~4000 miles (~500 B.C.)
Romans
• 284 B.C.
• Estate and farm management
• Emphasis on personnel selection and placement
• Known for building roads, bridges, and water
management

6. 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

7. Origins of Engineering Mgmt –
Ancient Mass Production
Arsenal of Venice (Early 1400s)
• Manufacturing
• Numbering of inventory parts
• Personnel policies
• Standardization of parts
• Assembly line
• Accounting in two journals and one ledger, with annual
auditing

8. Industrial Revolution 1750-1800:
Important Inventions
• 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

9. Industrial Revolution:
Problems of the Factory System
• Recruiting/Training Workers
• Explosive Growth in Mill Towns
• Supervisors, No Background
• Upper Management, Sons or Relatives

10. 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

11. 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

12. Management Philosophies
• Scientific Management
• Administrative Management
• Behavioral Management

13. 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

14. 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

15. Scientific Management
• Replaced old rule of thumb
• Believed in selecting, training, teach and
developing workers
• Time Study
• Standards planning

16. Criticism of Scientific Management
• Productivity, not quality
• Separating Planning and execution

17. 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):
– Division of labor
– Hierarchy of authority
– Employment based on expertise
– Decisions & rules in writing
– Separation of management & ownership

18. 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

19. Behavioral Management
• Maslow: Hierarchical theory of human needs
– Biological / Physiological Needs
– Security / Safety Needs
– Social Needs
– Ego Needs
– Self-actualization Fulfillment

20. Contemporary Management:
Issues and Challenges
• Quality Management
– 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

21. Contemporary Management:
Issues and Challenges
• Customer Focus
– CASA/SME CIM
Wheel

22. Contemporary Management:
Issues and Challenges
• Information Technology
– Computers and Microprocessors
– Internet
– Engineering Functions: Design, Manufacturing
– Business Practice: Supply Chain, e-Business
• Project Management
– Complex systems
– Dynamic
• Globalization

23. 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

24. 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

25. Contemporary Management:
Famous Authors
• Peter Senge
– The Learning Organization
• Systems thinking
• Personal mastery
• Mental models
• Building shared vision
• Team learning

26. Contemporary Management:
Famous Authors
• Steven Covey
– The Seven Habits of Highly Effective People
• 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 Self-
Renewal

27. Contemporary Management:
Famous Authors
• Tom Peters
– In Search of Excellence: Lessons from
America's Best Run Companies
• 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.

28. 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

29. 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?