Engineering Management

MCE 4521

Professor Dr. Mohammad Zoynal ABEDIN

abedin.mzoynal@gmail.com
+88 01829 311 650

Department of Mechanical Engineering

Dhaka University of Engineering and Technology, Gazipur
www.duet.ac.bd
 Class Schedule

Course No.: HUM 4521

Course Name: Engineering Management
Contact Hours: 3; Credit Hours: 4.50/Week
Teachers: Prof Dr. Mohammad Z. Abedin
Prof Dr. A. K. M. Masud

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Course Content

 Basic management theory and practice  Manpower planning-forecasting

 Division of management structure into elemental labour demand,
functions  Planning, scheduling and
 Management functions and their inter-relationships organising work,
 Industrial organisation and organizational objectives  Procedures for settlement of
disputes,
 Communications and job instructions
 Industrial accident prevention,
 Plant layout,
 Management of human resources  Working environment and material
handling,
 Team work
 Work study,
 Leadership and human relationship  Inventory control,
 Personnel system  Basic costing and budgetary
 Performance appraisal and incentive scheme control.
 Industrial relations-general framework
 Current development

Books: (i) Management, Thirteenth Edition (Global Edition) by Stephan P. Robbins and Mary Coulter
(ii) Engineering Management: Meeting the Global Challenges, Second Edition by C. M. Chang

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Management
 Management is a branch of study consisting of interlocking functions of
creating corporate policy and, hence organizing, planning, controlling
and directing an organization's resources in order to achieve the
objectives of that policy.
 Management is often included as a factor of production along with
machines, materials, and money.
 According to the management guru Peter Drucker (1909-2005), the basic task
of management includes both marketing and innovation.
 Practice of modern management originates from the study of low-efficiency and
failures of certain enterprises, conducted by the English statesman Sir Thomas
More (1478-1535).
 In our modern-day economy, customers’ needs are changing rapidly, the
marketplace is becoming global, and technology is advancing at an ever-
increasing speed.
 To maintain competitiveness in such a challenging environment, companies need
effective leaders who understand both technology and business.
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
 Engineers withGazipur
Dept. of ME, DUET, proper management knowledge,
Engineering Management training and experiences
IUT, Board Bazar, Gazipur
 Engineering Management
 Engineering management is the application of the practice of management to
the practice of engineering.
 An engineering management expert can contribute the largely in any fields
related to the engineering and managements aspects.
 Engineering management is a career that brings the technological problem-
solving ability of engineer together with the organizational, administrative, and
planning abilities of manager in order to oversee the operational performance of
complex engineering driven enterprises.
 It has the following areas to explore:
 Operations management, operation research and supply chain management
 Management of technology
 New product development and product engineering
 System engineering
 Industrial engineering
 Management science
 Management of market analysis
 Management of manufacturing
 Management of quality control and safety
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
 Management theories are the set of general rules that guide the
managers to manage an organization.
 Theories are an explanation to assist employees to effectively
relate to the business goals and implement effective means
to achieve the same.

 Six most popular management theories are listed below.

1. Frederick Taylor’s Theory of Scientific Management
2. Henri Fayol’s Administrative Management Theory
3. Max Weber’s Bureaucratic Theory of Management
4. Elton Mayo’s Behavioral Theory of Management
5. Ludwig Von Bertalanffy’s and Ross Ashby’s General System
Theory
6. Douglas McGregor X-Y Theory

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
1. Frederick Taylor’s Theory of Scientific Management:
Frederick Winslow Taylor (1856-1915)
 He is famous for developing the concept of scientific management; therefore, is known as the father
of scientific management.
 Initially, he worked as an apprentice in 1871 in a small machine shop in Philadelphia, US. In 1978, he
joined Midvale Steel Works as a mechanist and went up to the position of chief engineer in 1884.
After that, he joined Bethlehem Steel Works.
 Taylor conducted many experiments to understand the factors that enhance productivity.
 He developed the theory of scientific management that not only involves the application of scientific
methods of study and analysis of various management problems but also improves the productivity at
the manufacturing plant.
Apart from this, Taylor was also known for his contributions in the following areas:
 Use of descriptive cost accounting
 Concept of mutual understanding between workers and management
 Provision of bonus to workers for making suggestions for improvement in productivity
 Invention of an analytical machine, also known as differential machine.

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice

Frederick Taylor’s Theory of Scientific Management

 The theory aims at the improving economic efficiency, especially labor
productivity.
 Taylor had a simple view about the money which motivated people at work.
 He felt that workers should get a, fair day's pay for a fair day's work, and that
pay, should be linked to the amount produced.
 Therefore he introduced the, Differential Piece Rate System, of paying wages to
the workers.

Principles of Scientific Management

Four principles of scientific management are:
1. Time and motion study: study the ways, jobs are performed and find new
ways to do them.
2. Teach, train and develop the workman with improved methods of doing
work. Codify the new methods into rules.
3. Interest of employer and employees should be fully harmonized so as to
secure mutually understanding relations between them.
4. Establish fair levels
Professor Dr. Mohammad of performance
Zoynal ABEDIN HUM 4521 and pay a premium
Departmentfor
of EEEhigher
performance.
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
2. Henri Fayol’s Administrative Management Theory
Henry Fayol (1841-1925)
 Henri Fayol was a French mining engineer and an industrialist.
 His main focus was on improving the efficiency of operations management in organizations.
 He developed the concept of administrative management, wherein he formulated several
management principles that could be applied to all types of organizations.
 Henri Fayol is also considered as the father of modern management.
 He also laid down best practices for managers, which are as follows:
 Managers must be able to complete work within a specified period of time
 Managers must organize both human and non-human resources in order to carry out tasks
effectively.
 Managers must take commands while selecting and assessing workers.

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
Henri Fayol’s Administrative Management Theory:
 Henri Fayol known laid down the 14 principles of Management.
1. Division of work
2. Delegation of authority
3. Discipline
4. Unity of commands
5. Unity of direction
6. Interrelation between individual interests and common organizational goals
7. Compensation package
8. Centralization
9. Scalar chains
10. Order
11. Equity
12. Job guarantee
13. Initiatives
14. Team-Spirit

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
3. Max Weber’s Bureaucratic Theory Of Management
Max Weber (1864-1920)
 Max Weber is a German sociologist, philosopher, jurist, and political economist. He is famous
for developing the bureaucratic management theory in which he emphasized
the requirement of a hierarchy in organisations.
 He also advocated that there should be well-defined regulations and
authority in organisations.
 Weber perceived three types of administration, namely traditional,
charismatic, and bureaucratic.
 In traditional organisations, managerial positions are handed down from
one generation to the other irrespective of intelligence, knowledge,
and experience.
 In charismatic organisations, management functions are not delegated
and all the employees are considered to be the loyal subjects of a
leader.
 In bureaucratic organisations, a person is given a managerial
responsibility as per his/ her capability.
 In Weber’s view, bureaucratic administration
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521
was the ideal one for all
Department of EEE
organisations.
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
Max Weber’s Bureaucratic Theory of Management:
 Weber made a distinction between authority and power.
 Weber believed that power reduces obedience through force or the threat of
force which induces individuals to adhere to regulations.
 According to Max Weber, there are three types of power in an organization:-
1. Traditional Power
2. Charismatic Power
3. Bureaucratic Power or Legal Power.

 Features of Bureaucracy:
1. Division of labor
2. Formal hierarchical structure
3. Selection based on technical expertise
4. Management by rules
5. Written documents
6. Only legal power is important
7. Formal and impersonal relations
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Evolution of Engineering Management
4. Elton Mayo’s Behavioral Theory of Management
George E. Mayo (1880-1949)
 George E. Mayo, also known as Elton Mayo, was an Australian psychologist.
 He is famous for his contribution in Hawthorne studies which were conducted
to find the relation between physical environment and workers’ output.
 Hawthorne experiments were conducted at Western Electric Plant at Chicago.
 Mayo was involved in the project in 1929 and 1930, and interviewed the
workers involved in the experiments.
 Through these studies, Mayo concluded that workers become more
productive if they receive attention from the management.
 The outcome of his findings in Hawthorne studies later gave way to the human
relations movement.
 The movement focuses on the concept of job satisfaction, group norms,
and leadership quality and their significance in the improvement of
productivity .

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
Elton Mayo’s Behavioral Theory of Management:
 Elton Mayo's experiments showed an increase in worker
productivity was produced by the psychological stimulus of being
singled out, involved, and made to feel important.
 Hawthorne Effect, can be summarized as Employees will respond
positively to any novel change in work environment like better
illumination, clean work stations, relocating workstations etc.
 Employees are more productive because they know they are being
studied.

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
5. Ludwig Von Bertalanffy’s and Ross Ashby’s General System
Theory
Ludwig von Bertalanffy (1901-1972) and Ross Ashby (1903-1972)
 General system theory was proposed in the 1940's by the Austrian biologist
Ludwig Von Bertalanffy and furthered by W. Ross Ashby (1964), an English
psychiatrist and a pioneer in cybernetics, the study of the science of communications and automatic
control systems in both machines and living things.
 Ludwig Von Bertalanffy is considered to be the founder and principal author of
general systems theory.
 Bertalanffy (1968) wrote that a system is a complex of interacting elements and
that they are open to, and interact with their environments.
 In addition, they can acquire qualitatively new properties through emergence,
thus they are in a continual evolution.
 When referring to systems, it also generally means that they are self-regulating
(they self-correct through feedback).
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
General System Theory
 A fundamental notion of general systems theory is its focus on interactions. The
center in relationships lead to sustain that the behavior of a single autonomous
element is different from its behavior when the element interacts with other
elements.
 Another core tenet is the distinction between open, closed and isolated systems.
In open systems there are exchanges of energy, matter, people, and information
with the external environment. In closed systems there are no exchanges of
information and matter, just exchanges of energy. In isolated system there is no
exchange of elements.
 Building on general systems theory many approaches developed. Among others
there are open system theory, viable system model and viable system
approach.
 Open system theory (OST) looks at the relationships between the
organizations and the environment in which they are involved. This focus reflects
on organizations’ ability to adapt to changes
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521
in environmental conditions (with or
Department of EEE
without the need for information processing).
Dept. of ME, DUET, Gazipur
This theory assumes
Engineering Management
that entities
IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
General System Theory
 Two orders of adaptive levels are identified, both referring to the informative
deviation:
 (i) counteraction – first level (to process information from an organism’s
environment), related to the ability of steering through a personal purposive
behavior;
 (ii) amplification – second level, related to constructivism theory (as opposed
to realism) leading to work on self-organization apply the concept of open
system to the organization. The organization is seen as a system built by
energetic input-output where the energy coming from the output reactivates
the system.
 Viable System Model (VSM) outlines a system as an entity that is adaptable
for the purpose of surviving in its changing environment. The viable system is an
abstracted cybernetic description that is applicable to autonomous organizations.
Since cybernetics represents an interdisciplinary study of the structure of
regulatory systems, it refers to the study
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521
of how actions by Department
a system of EEE
cause
changes in DUET,
Dept. of ME, the Gazipur
environment that are understood
Engineering Managementby the systemIUT,
itself
Boardin terms
Bazar, Gazipurof
 Basic Management Theory and Practice
General System Theory
 In cybernetics, the system and the environment present different levels of
complexity, as the environment has degrees of complexity that are not
perceptible to the system.
 When applied to organizations viable system model focuses on conceptual tools
for understanding the organization of systems in order to redesign them through:
 (i) change management;
 (ii) understanding the organization as an integrated whole;
 (iii) evaluating the essential functions of implementation, coordination,
control, intelligence and policy.
 Finally, Viable system approach (VSA) suggests a new interpretation of
consolidated strategic organizational and managerial models: sub-systems and
supra-systems. Sub-systems focuses on the analysis of relationships among
enterprises’ internal components while supra-systems focus on the connections
between enterprises and other influencing systemic entities in their context.
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
6. Douglas McGregor X-Y Theory
Douglas McGregor (1906-1964)
 An American social psychologist and MIT professor, proposed his famous X-
Y theory in 1960.
 McGregor's X-Y theory remains central to organizational development, and
to improving organizational culture.
 McGregor's ideas suggest that there are two fundamental approaches to
managing people.
 Many managers tend towards theory x, and generally get poor results.
 Enlightened managers use theory y, which produces better performance
and results, and allows people to grow and develop.
 McGregor's ideas significantly relate to modern understanding of the
Psychological Contract, which provides many ways to appreciate the
unhelpful nature of X-Theory leadership, and the useful constructive
beneficial nature of Y-Theory leadership.

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
Theory X ('authoritarian management' style)
1. The average person dislikes work and will avoid it if he/she can.
2. Therefore, most people must be forced with the threat of punishment to work
towards organisational objectives.
3. The average person prefers to be directed; to avoid responsibility; is relatively
unambitious, and wants security above all else.

Characteristics of an X-theory manager

 Results-driven and deadline-driven,  Issues threats to make people follow
instructions
to the exclusion of everything else  Does not participate
 Intolerant  Does not team-build
 Issues deadlines and ultimatums  Unconcerned about staff welfare, or
 Distant and detached morale
 Aloof and arrogant  Proud, sometimes to the point of self-
 Short temper destruction
 Shouts  One-way communicator
 Issues instructions, directions  Poor listener
Professor Dr. Mohammad Zoynal ABEDIN HUMAnti-social
4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Does not thank or praise
 Basic Management Theory and Practice
Managing an X-theory Boss:
Working for an X theory boss isn't easy - some extreme X theory managers make
extremely unpleasant managers, but there are ways of managing these people
upwards. Avoiding confrontation and delivering results are the key tactics. Following
are some ways:
 Theory X managers are primarily results oriented - so orientate your own
discussions and dealings with them around results.
 Theory X managers are facts and figures oriented - so cut out the incidentals, be
able to measure and substantiate anything you say and do for them, especially
reporting on results and activities.
 Theory X managers generally don't understand or have an interest
in human issues - so don't try to appeal to their sense of humanity or morality. Set
your own objectives to meet their organisational aims and agree these with the
managers; be seen to be self-starting, self-motivating, self-disciplined and well-
organized - the more the X theory manager sees you are managing yourself and
producing results, the less they'll feel the need to do it for you.
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
Managing an X-theory Boss
 Always deliver your commitments and promises. If you are given an unrealistic
task and/or deadline, state the reasons why it's not realistic, but be very sure of
your ground, don't be negative; be constructive as to how the overall aim can be
achieved in a way that you know you can deliver.
 Stand up for yourself, but constructively - avoid confrontation. Never threaten or
go over their heads if you are dissatisfied or you'll be in big trouble afterwards
and life will be a lot more difficult.
 If an X theory boss tells you how to do things in ways that are not comfortable or
right for you, then don't questioning the process, simply confirm the end-result
that is required, and check that it's okay to 'streamline the process' or 'get things
done more efficiently' if the chance arises - they'll normally agree to this, which
effectively gives you control over the 'how', provided you deliver the 'what' and
'when'.

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
Theory Y ('participative management' style)
 Effort in work is as natural as work and play.
 People will apply self-control and self-direction in the pursuit of
organisational objectives, without external control or the threat of
punishment.
 Commitment to objectives is a function of rewards associated with their
achievement.
 People usually accept and often seek responsibility.
 The capacity to use a high degree of imagination, ingenuity and creativity
in solving organisational problems is widely, not narrowly, distributed in
the population.
 In industry, the intellectual potential of the average person is only partly
utilized.
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Basic Management Theory and Practice
Comparison between Theory X and Theory Y

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Thank you
for
your cooperation

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur