Business Management Theories for Engineering Management

Miles (1975) discern 3 main theories of management, namely, (a) the traditional model, (b) the human relations model, and (c) the human resources model. Each of these models have a specific set of (a) assumptions about human nature, especially employees' attitude to work, (b) management policies, and (c) expectations on employees' morale and performance. The assumptions on human nature make much use of motivation theories, such as Maslow's hierarchy of needs and McGregor's Theory X/Y. In this case, the traditional model is based on McGregor's Theory X while the human resources model adopts Theory Y as its assumption of human nature. From a historical perspective, management thinking evolves from the traditional model, towards the human relations model; Finally, it endorses more human resources model in its practices. This observation represents the general evolutionary trend in management thinking.

Management theories describe how and why employees behave in certain ways, under specific conditions. These management theories are descriptive and, very often, prescriptive. They are so constructed as to be logical in their reasoning based on their set of assumptions. Which management theory to adopt by management of a specific company depends a number of factors, e.g. the stage of economic development of a country, personal value of management, and national culture, etc. Miles (1975) also mentioned that some managers prefered themselves to be treated with the human resources model while they favoured using the traditional model to deal with their own subordinates.

Engineering management, especially in industrial engineering, has long been influenced by a specific school of management thinking that belongs to the traditional model, known as scientific management. As a result, engineering management thinking is very much in line with the traditional model of Miles. If we consider that engineering management is dominated by hard systems thinking, it is easy to understand that both the human relations model (a more humanized form of traditional model) and the human resources model (when based on hard systems thinking) can be assimilated in prevailing engineering management theories and practices. I consider the Just in Time (JIT) management philosophy as a human resources model, which is also a main subject in Engineering Management. The following diagram depicts the ideas here:

My view is that the human resources model can be anchored with Soft Systems Thinking. Meanwhile, it is interesting to examine the more problematic relationship between engineering management-based business management theories (which tends to be more hard systems based) and soft-systems-based business management theories. This is an interesting and important research topic in Engineering Management and Systems Research.

Some specific points as related to Engineering:
(re: Morse, L.C. and Babcock, D.L. (2007) "Chapter 1: Engineering and Management" Managing Engineering and Technology, Prentice Hall)

1. The profession of Engineering defined: the art of directing the great sources of power in nature, for the use and convenience of man.
2. Professional requirements: intensive preparation via lifelong learning.
3. Main professional practices:
• Managing machines
• Application of science and mathematics by which the properties of matter and the sources of energy in nature are made useful to man in structures, machines, products, systems and processes.

References

1. Miles, R.E. (1975) Theories of Management, McGraw-Hill
2. Lockett, M. and Spear, R. (editors) (1983) Organizations as Systems, Chapter 5, written by Trist, E. "A socio-techhnical critique of scientific management", pp, 56-65, The Open University Press.