Module 1 - Introduction To Engineering Management

PHILIPPINE STATE COLLEGE OF AERONAUTICS
INSTITUTE OF ENGINEERING AND TECHNOLOGY

AERONAUTICAL ENGINEERING DEPARTMENT
Learning Module 01: Introduction to Engineering Management (Prelim)
LEARNING
MODULE 01:
Introduction to
Engineering
Management
AE 322 -
ENGINEERING MANAGEMENT
Prepared by:
AE 322 – ENGINEERING MANAGEMENT 1|Page

TABLE OF CONTENTS
Title Ref. no Page
INTRODUCTION 1 6
1. DEFINITION OF TERMS 2,3,4 6
2. BASIC ELEMENTS OF MANAGEMENT 5,6 7
3. PERSONALITIES IN ENGINEERING MANAGEMENT AND
7,8 10
MANAGEMENT THEORIES
3.1 Frederick Taylor 7 10
3.2 Max Weber 7 11
3.3 Henri Fayol 8,9 12
3.4 Henry Gantt 7 17
3.5 Mary Parker Follett, 10 18
4. PROJECT MANAGEMENT CYCLE 11,12 21
4.1 What is Project? 11 21
4.2 What is Project Management? 11 21
4.3 Project Management Characteristics 11 21
4.4 Project Characteristics 12 21
4.5 Why do companies use Project Management? 12 22
4.6 Why do people learn Project Management? 12 22
4.7 Project Challenges 11 22
4.8 Project Ecosystem 11 23
4.9 Project Constraints 11 24
4.10 Project Management Cycle 11 25
APPENDIX A: RUBRIC 30
TIME COMMITMENT FOR THIS MODULE

Video Materials Time
https://www.youtube.com/watch?v=km7PQnvmObU 10 Minutes
https://www.youtube.com/watch?v=hr68bgoP4z4 8 Minutes
Reading Materials
INTRODUCTION 1 Minute
1. DEFINITION OF TERMS 8.4Minutes
2. BASIC ELEMENTS OF MANAGEMENT 10 Minute
3. PERSONALITIES IN ENGINEERING MANAGEMENT AND MANAGEMENT
THEORIES
3.1 Frederick Taylor 10 Minutes
3.2 Max Weber 10 Minutes
3.3 Henri Fayol 20 Minute
3.4 Henry Gantt 5 Minutes
3.5 Mary Parker Follett, 10 Minute
4. PROJECT MANAGEMENT CYCLE
4.1 What is project? 2 Minutes
4.2 What is Project Management? 2 Minute
4.3 Project management characteristics 1 Minute

4.4 Project characteristics 1 Minute

4.5 Why do companies use project management? 2 Minutes
4.6 Why do people learn project management? 2 Minutes
4.7 Project challenges 2 Minutes
4.8 Project ecosystem 5 Minutes
4.9 Project constraints 5 Minutes
4.10 Project management cycle 15 Minutes
Module Activities
Learning Activity 1 10 Minutes
Learning Activity 2 10Minutes
Mastery Check 20 Minutes
Module Review Questions 15 Minutes
Outside Module Activities
Quiz No. 1 30 Minutes
Assignment 100 Minutes
LIST OF REFERENCES
References
No.
Roberto Medina, Engineering Management from
https://www.academia.edu/35813394/Engineering_Management_by_Roberto_Me 1
dina
St. Louis Community College, (2003 August) What is Engineering, from
2
http://users.stlcc.edu/Departments/fvengtech/whatis.html
University of Washington, Management, from
http://courses.washington.edu/inde495/leca.htm#:~:text=Management%20is%2 3
0a%20set%20of,an%20efficient%20and%20effective%20manner.
KU Edward Capus, Engineering Management, from http://emgt.ku.edu/ 4
Venkatesh, Objectives: Meaning, Features and Classification (with Diagram) from
https://www.yourarticlelibrary.com/management/objectives-meaning-features-
and-classification-with- 5
diagram/53199#:~:text=Mc.,to%20efforts%20of%20a%20manager.%E2%80%9
D
Commerce Forward, (2018 August 16) The five M’s of management explained,
retrieve from https://commerceforward.blogspot.com/2018/08/the-five-ms-of- 6
management-explained.html
Lumenwaymaker, Principles of Management, History of Management (Module 2),
retrieve from https://courses.lumenlearning.com/wm- 7
principlesofmanagement/chapter/scientific-management/
Shrey Mittal, The 14 Principles of Management by Henri Fayol, Retrieve from
https://courses.lumenlearning.com/wm- 8
C.P. Uzuegbu and C.O.Nndozie (2015), Henry Fayol’s 14 Principles of
Management: Impliations for Libraries and Information Centers. Retrieved from
9
https://www.researchgate.net/publication/281801296_Henry_Fayol's_14_Principl
es_of_Management_Implications_for_Libraries_and_Information_Centres
SammiCaramela, (2018 February 22), The Management Theory of Mary Parker 10

Follett, Retrieved from https://www.business.com/articles/management-theory-

of-mary-parker-follett/
Rodolfo Siles, (2010 September 13), Fundamentals of Project Management,
retrieved from https://www.slideshare.net/pm4dev/cfakepathcourse-fpm-
11
092709#:~:text=Project%20Management%20consist%20of%20six,%2C%20mo
nitoring%20%2C%20adapting%20and%20closure%20.
SatishYadavalli, (2013 July 21), Project Management, Retrieved from
12
https://www.slideshare.net/satishyadavalli/project-management-24470138
LIST OF FIGURES
FIGURES References
Commerce Forward, The five M’s of Management Explained, retrieved

Fig 2.1
from, https://commerceforward.blogspot.com/2018/08/the-five-ms-of-
management-explained.html
Fig. 3.1 Wikipedia, Frederick Winslow Taylor, retrieved from
https://en.wikipedia.org/wiki/Frederick_Winslow_Taylor
Fig. 3.2 Prachi M, (2019 May 23), Scientific Management, retrieved from,
https://theinvestorsbook.com/scientific-management.html
Fig. 3.3 New World Encyclopedia,(2018 September 6)Max Weber, retrieved from,
https://www.newworldencyclopedia.org/entry/Max_Weber
Fig. 3.4 Alison Neal,(2016), The Evolution of Management, retrieved from,
https://slideplayer.com/slide/10687750/
Fig. 3.5 Wikipedia, Henri Fayol, retrieved from,
https://en.wikipedia.org/wiki/Henri_Fayol
Fig. 3.6 Prachi M, (2019 May 21) Henri Fayol’s 14 Principles of Management,
retrieved from, https://theinvestorsbook.com/henri-fayols-14-principles-
of-management.html
Fig. 3.7 Wikipedia, Henri Gantt, retrieved from
https://en.wikipedia.org/wiki/Henry_Gantt
Fig. 3.8 Lumenwaymaker, Principles of Management, History of Management
(Module 2), retrieve from https://courses.lumenlearning.com/wm-
Fig. 3.9 Robert J. D., Mary Parker Follett, retrieved from
http://www.lastonearth.com/fhtml/f_follett_mp.html
Fig. 4.1, 4.3 – Rodolfo Siles, (2010 September 13), Fundamentals of Project
4.10 Management, retrieved from
https://www.slideshare.net/pm4dev/cfakepathcourse-fpm-
092709#:~:text=Project%20Management%20consist%20of%20six,%2
C%20monitoring%20%2C%20adapting%20and%20closure%20.
Fig 4.2 SlideGeeks, Project Management Elements, retrieved from
https://www.slidegeeks.com/business/product/project-management-
elements-ecosystem-ppt-powerpoint-presentation-gallery-microsoft

LEARNING OUTCOMES
Course Learning Outcomes (CLO]
CLO1. Develop understanding in the

fields of engineering management by Module Learning Outcomes [MLO]
the principles of the personalities, MLO 1. Familiarize with the common
scope of management and legal terms used in of Engineering Topic Learning Outcomes [TLO]
aspects in engineering. Management by identifying its purpose
TLO 01. Learners will be familiarize
CLO3. Understand the need for basic elements and principles.
with the common terms used
effective project management skills, MLO 2. Explain how the Project inEngineering Management by
training, and the specific training Management Cycle is being used in identifying its purpose and basic
needs of project managers for the an organization in an essay. principles.
success of project management.
MLO 3. Apply the knowledge of the TLO 02. Familiarized with thephases
CLO 04.State the best use of quality principles, practices, and of Project Management by creating a
engineering in an improving an methodologies of project management flow chart of its cycle.
organization bythe processes of by generating sample business that
integrating its several function. TLO 03. Recognize with the
shows an application of project
personalities in Engineering
CLO12 Demonstrate ability to management cycle.
Management by identifying their roles
collaborate within a diverse group of and contributions in engineering
people through modular activities and management.
research documents.
CLO13. Display Professional
commitment by complying with the
academic requirements such as
assignments, reasearch papers, and
other modular activities.
OVERVIEW
This module discusses the definitions of common terms used in Engineering

Management, basic elements of engineering management, fundamentals and phases of
project management cycle, and the different personalities in Engineering Management.
As an introductory activity, you are encouraged to watch a short video entitled

“EM1a Engineering Management Basics”, using the following link:
https://www.youtube.com/watch?v=km7PQnvmObUshows a discussion about the definition
of engineering management, discussion of its areas, roles and objectives. The speaker also
discusses the difference of engineering management from other engineering and the
difference between project and operation. Now, to get you acquainted with the terms as
well as concepts presented in the video, let us start our discussion with the important
terminologies in Engineering Management.

INTRODUCTION
Depending on their specialty and job level, engineers are expected to perform a multitude of
functions. It is important that the engineer knows what is expected of him so that he can
perform his job efficiently and effectively. His next concern would be to determine the
necessary skills but that he does not have.Since engineers are not equipped to communicate
directly with individuals, it is assumed that people-based skills will most often be their
weakness. When they are appointed to hold management roles, this challenge would be
more evident. It follows that if the engineering manager wanted to do his job well, there
would be a need for some exposure to engineering management activities.
1. DEFINITION OF TERMS
Engineering
The career in which the knowledge gained from research, experience, and practice of
mathematical and natural science is applied with judgment to establish ways of using,
economically, the materials and forces of nature for the benefit of humanity.
Management
A set of activities (including planning and decision-making, organizing, leading and

controlling) focused at the resources of an organization (human, financial , physical and
information) in order to effectively and effectively achieve organizational objectives.
Engineering Management
It is a specialized form of management that is required to successfully lead engineering or

technical personnel and projects. The term can be used to describe either functional
management or project management.
It refers to the activity combining “technical knowledge with the ability to organize and
coordinate worker power, materials, machinery, and money.
Managers – Engineers as Managers, those in positions of authority who make decisions to

commit their resources of others towards the achievement of the objectives of an
organization.
A manager is someone whose primary responsibility is to carry out the management

process. In particular. A manager is someone who plans and makes decisions, organizes,
leads, and controls human, financial, physical, and information resources
Management and managers make conscious decisions to set and achieve objectives.
Decision making is a critical part of all management activities.
Organization
It is a group of two or more individuals that exists and works to achieve widely held goals
that are clearly defined.
Efficient means using resources wisely and without unnecessary waste.
Effective means doing the right things successfully

2. BASIC ELEMENTS OF MANAGEMENT

a. Objectives
• are goals – target to school for states of being or places to be reach through plans
and finally actions.
• Objectives are the targets for the achievement of which management tasks are
driven. Effective management is only possible by the setting of targets, and all
management efforts should be geared towards achieving these goals. Objectives
constitute the purpose, the attainment of which is necessary for the business.If well-
defined objectives have been set, an organization will develop in an orderly way. A
pre-requisite for planning is objectives. Without setting targets, no preparation is
possible.
“Objectives are the goals, aims, or purposes that organizations wish

to achieve over varying periods of time.” Mc. Farland
b. Financial, Human and Material Resources of Management – The 5 M’s of

Management.
Fig 2.1 5 M’s of Management
Money
• The financial resource of an organization which is its base and
foundation.Money is the most critical and all-purpose resource because it
is used to acquire or hire other resources. In organization, money is
employed to generate more money in the form of profits or surplus. A
business firm or enterprise requires money in the form of fixed capital and
working capital.
Manpower
• The human resource of an organization through which things are done or
objectives are achieved. It refers to the managerial and non-managerial
personnel employed in an organization. Other resources cannot act by
themselves and have to be utilised by human beings. Therefore, human

resources mobilize, allocate and utilize the physical and financial

resources of an organization.
Materials
• The resources used by individuals to do stuff and fulfill the organization's
goals. It refers to physical raw materials and intermediate products (semi-
finished goods) which, with the assistance of certain processes and
technologies, are converted and/or assembled into finished products.
Machines
• Those resources that help facilities to perform all activities toward the
achievement of the objectives. They are the equipment used to process
the materials into finished or semi-finished products. Employment of
modern machinery helps to reduce costs and to improve the quality of
output. Technology has therefore become an important ingredient in the
efficient management of organizations.
Methods
• Refer to the normal and prescribed ways of doing things various
operations are performed according to certain systems and procedures.
Use of right methods helps to increase efficiency of operations and
contributes to effective management.
c. People – the managers and manpower.

LEARNING ACTIVITY 1
Accomplish the following activities in an “8.5 x 11” word document.
1. Define the term“Engineering” in your own words.

2. What is Management?
3. Discuss the purpose and role of Engineering Management by correlating the terms
Engineering and Management.
4. Enumerate and discuss briefly the elements of Engineering Management.
*Refer to page 30 Appendix A for the rubric
HONESTY CLAUSE
The students are expected to accept and maintain principles of intellectual and academic integrity
as members of the academic community. The state college expects the students to be honest
as a basic and minimum standard of conduct in academic matters and that they only
submit the outputs of their own efforts for credit.
For Submission: Kindly attach the file on our Google Classroom with a file name
“Module 1 – Learning Activity 1 – (Surname)”.

3. PERSONALITIES IN ENGINEERING MANAGEMENT AND

MANAGEMENT THEORIES
3.1 Frederick Taylor

Most corporations were small operations before the
Industrial Revolution, averaging three or four individuals.
Owners always worked next to workers, knew what they
were capable of, and directed their work closely. With the
Industrial Revolution, the dynamic of the workplace shifted
significantly in the United States.Factory owners and
managers did not possess close relationships with their
employees. The workers “on the floor” controlled the work
process and generally worked only hard enough to make
sure they would not be fired. There was little or no incentive
to work harder than the next man (or woman).
Taylor was a mechanical engineer who was particularly

interested in the kind of work that was performed in
factories and mechanical shops. He noticed that little was
known to the owners and managers of the factories about Fig 3.1 Frederick
what actually took place in the workshops. Taylor felt that it Taylor
was possible to change the system, and he looked around for
an opportunity.
He settled on money. He believed a worker should get “a fair day’s pay for a fair
day’s work”—no more, no less. If the worker couldn’t work to the target, then the
person shouldn’t be working at all. Taylor also believed that management and labor
should cooperate and work together to meet goals. He was the first to suggest that
the primary functions of managers should be planning and training.
Taylor issued The Principles of Scientific Management in 1909. He proposed in this

book that if workers were optimized and simplified, productivity would increase. He
also suggested assigning a worker to a specific job that matched the skill level of the
individual and then teaching the worker to do that job in a particular way. Taylor first
developed the idea of breaking down each job into component parts and timing each
part to determine the most efficient method of working. Soon afterward, two
management theorists, Frank and Lillian Gilbreth, came up with the idea of filming
workers to analyze their motions. Their ideas have since been combined into one
process (called time and motion studies) for analyzing the most productive way to
complete a task.
He was considered as “Father of Modern Management” by means of his systematic

study of relationships between people and task for the purpose of redesigning the
work process for higher efficiency. He also sought to reduce the time a worker spent
on each task by optimizing the way the task was done.
AE 322 – ENGINEERING MANAGEMENT 10 | P a g e

Taylor’s Four Principles of Scientific Management

a. Scientifically study each part of a task and
develop the best method for performing it.
b. Carefully select workers and train them to
perform the task using the scientifically
developed method.
c. Cooperate fully with workers to ensure that they
use the proper method.
d. Divide work and responsibility so that
management is responsible for planning work
methods using scientific principles and workers
are responsible for executing the work
accordingly.
Taylor developed his method for use in areas where, such Fig. 3.2 Taylor’s Four
as in factories, work could be quantified, systemized, and Principles of Scientific
standardized. There is one correct way to do a job in Management
scientific management; employees were not allowed (in
fact, they were prohibited) to make decisions or analyze acts that could yield a better
outcome. Taylor was more concerned about the performance than the happiness or
enthusiasm of the employees.Taylor’s work introduced for the first time the idea of
systematic training and selection, and it encouraged business owners to work with
employees to increase productivity and efficiency. And he introduced a “first-class
worker” concept to set the standard for what a worker should be able to produce in
a set period of time. Scientific management grew in popularity among big businesses
because productivity rose, proving that it worked.
3.2 Max Weber

Weber was born in 1864 in Germany and grew up
during the period when government, industry, and
culture were transformed by industrialization. In
industrial capitalism, an economic system where
industry is privately controlled and operated for profit,
Weber was interested. Weber wanted to know why, in
some countries and not in others, industrial capitalism
was efficient. He believed that large-scale
organizations such as factories and government
departments were a characteristic of capitalist
economies.
To study the U.S. economy, Weber visited the United Fig 3.3 Max Weber
States in 1904. Here he was witnessing the spirit of
capitalism. He observed that competition and innovation were promoted by
capitalism in the United States. He also realized that companies were managed by
skilled managers and that through economic relationships they were connected.He
contrasted this with capitalistic practices in Germany where a small group of
powerful people controlled the economy. In Germany, tradition dictated behaviors.
People were given positions of authority based on their social standing and
connections, and businesses were linked by family and social relationships.

Weber was concerned that power was not a function of knowledge and expertise,
but of social standing. Managers were not committed to the organization because of
this. Instead of achieving organizational objectives, organizational resources were
used for the benefit of owners and managers. Weber was convinced that
organizations based on rational authority, where authority was given to the most
competent and qualified people, would be more efficient than those based on who
you knew. Weber called this type of rational organization a bureaucracy.
Fig 3.4 Weber’s Five Principles of Bureaucracy
Weber’s Five Principles of Bureaucracy

a. Authority is the power to hold people accountable for their actions.
b. Positions in the firm should be held based on performance, not social
contacts.
c. Position duties are clearly identified so that people know what is expected of
them.
d. Lines of authority should be clearly identified such that workers know who
reports to who.
e. Rules, standard operating procedures (SOPs), and norms guide the firm’s
operations.
3.3 Henri Fayol

In 1841, Henri Fayol was born in Turkey. He
encountered several of the same organizational
innovations in Europe that fascinated Weber, even
though he was older than Weber. Fayol, who
became the president of a major mining firm, was
a mining engineer. He desired managers to be
accountable for more than just increasing
production.The story goes that he came to this
insight when a mine was shut down after a horse
broke a leg and no one at the mine had authority
to purchase another. Fayol saw this as a direct
failure of management to plan and organize the
work. Following this, Fayol began experimenting
with different management structures. Fig 3.5 Henri Fayol

He condensed his ideas and experiences into a series of tasks and principles of
management, which he published in the book General and Industrial Management in
1916. Some of Weber's ideas were incorporated by Fayol into his theories. However,
Fayol was concerned with how employees were treated and how they contributed to
the organization, unlike Weber. He thought that successful companies were bound to
happy and empowered workers, and thus effective management.
Fayol’s five duties of management were as follows:

a. Foresight: Create a plan of action for the future.
b. Organization: Provide resources to implement the plan.
c. Command: Select and lead the best workers through clear instructions and
orders.
d. Coordinate: Make sure the diverse efforts fit together through clear
communication.
e. Control: Verify whether things are going according to plan and make
corrections where needed.
These duties evolved into the four functions of management: planning (foresight),
organizing (organization), leading (command and coordinate), and controlling
(control).
14 Principles of Management by HenriFayol
Fig 3.6 14 Principles of Management by Henri Fayol
1. Division of Work.
• Specialization helps the individual to build up expertise and constantly
develop his skills. He will be more efficient through that.
• People perform better at work because, according to their specialties,
they are given jobs. Therefore, the division into smaller elements of work
then becomes paramount.
2. Authority.
• The power to issue orders in which the balance of responsibility for its
role must go.

• This principle indicates the need for supervisors to have authority to order
subordinates to conduct jobs while being responsible for their actions.
This is formal as well as informal and is recommended for managers. The
formality is in the organizational expectations for the manager (his
responsibilities), whereas the informality (the authority) can be linked to
the manager’s freedom to command, instruct, appoint, direct, and ensure
that his or her responsibilities are performed successfully. Again, the two
are like checks and balances on the manager: he must not abuse power
(authority). He must use it in tandem with the corresponding
responsibility. Fayol therefore claimed that because a manager must be
accountable for his duties, he should also have authority to back him up
to perform his duties. For organizational performance, this is right and
very crucial.
3. Discipline.
• Employees must obey, but this is two-sided: employees will only obey
orders if management play their part by providing good leadership.
• This theory promotes consistent rules and regulations aimed at achieving
good discipline and compliance among employees. The natural human
tendencies towards lawlessness must have been noticed by Fayol. He
viewed the degree of organizational chaos that could explode if workers
were not strictly directed by management laws, standards, and
regulations. This is true and has all along resulted in staff control in
organizations. But in recent times, it has not been the best method to
achieve long-term organizational order and goals.
4. Unity in Command.
• Each worker should have only one boss with no other conflicting lines of
command.
• This principle states that workers can only accept orders from one
supervisor and report directly to him. This implies that employees are only
expected to be accountable to one immediate supervisor or superior.
Orders-cum-directives come from one source and no two people at the
same time send an employee orders to prevent conflict.
5. Unity in Direction.
• In a single plan, individuals engaged in the same type of activities must
have the same goals. To maintain stability and cooperation in the
organization, this is important. Unity of command does not exist without
unity of direction but does not necessarily flows from it.
• This principle proposes that there should be only one plan, one objective,
and one head for each of the plans. Of course, organizations run on
established objectives (Drucker, 1954). But, for departments and units
that seem to have their own goals, this should not be miss-interpreted.
What Fayol meant is that, of course, an organization would have core
objectives that need to be met and also departmental and unit objectives
that need to be achieved in order to achieve the unified target.
6. Subordination of individual interest to general interest. (to the general

interest).
• Management must see that the goals of the firms are always paramount.

• The interests of the organization supersede every other interest of staff,

individuals, or groups. Imperatively, employees must sacrifice all their
personal interests for the good of the organization. In other words,
organizations should not tolerate any staff that are not committed to the
organization’s objectives and order even if it is to the detriment of
personal and family interests.
7. Remuneration.
• Payment is an important motivator although by analyzing a number of
possibilities.Fayol points out that there is no such thing as a perfect
system.
• Payment of wages for workers should be as deserved. Both workers and
management should have a fair wage and neither group should be short-
changed. Every staff member's pay must be justifiable. A supervisor
should receive more pay than line staff. Thus, whosever management
appoints to be supervisor takes more than the subordinates by virtue of
his or her responsibilities. It does not really matter whether a subordinate
works harder and is more productive than the supervisor. As long as
management does not promote the subordinate he continues to receive
lesser pay to what his boss gets even as he works more than his boss.
The above generally encapsulates Fayol’s position on remuneration.
8. Centralization.(or Decentralization).
• This is a matter of degree depending on the condition of the business and
the quality of its personnel.
• This principle suggests that decision-making should be centralized. This
means that decision-making and dishing-out of orders should come from
the top management (central) to the middle management, where the
decisions are converted into strategies and are interpreted for the line
staff who execute them (decentralization). This is still working in many
organizations. Library and information centers also apply this principle.
9. Scalar Chain. (Line of Authority).

• A hierarchy is necessary for unity of direction. But lateral communication
is also fundamental, as long as superiors know that such communication
is taking place. Scalar chain refers to the number of levels in the hierarchy
from the ultimate authority to the lowest level in the organization. It
should not be over-stretched and consist of too-many levels.
• This principle is a product of the formal system of organization. It is also
known as the hierarchy principle. It asserts that communication in the
organization should be vertical only. It insists that a single uninterrupted
chain of authority should exist in organizations. Horizontal communication
is only allowed when the need arises and must be permitted by the
manager.
10. Order.
• Both material order and social order are necessary. The former minimizes
lost time and useless handling of materials. The latter is achieved through
organization and selection.
• This is another formal organizational control system which has been
interpreted in different ways. Some see it as the rule of giving every

material its right position in the organization and others think that it
means assigning the right job to the right employee (Rodrigues, 2001).
11. Equity.
• In running a business a ‘combination of kindliness and justice’ is needed.
Treating employees well is important to achieve equity.
• Another word for equity is fairness. Henri Fayol suggested that managers
should be fair to their staff.
12. Stability of Tenure.
• Employees work better if job security and career progress are assured to
them. An insecure tenure and a high rate of employee o turnover will
affect the organization adversely.
• In this principle, Fayol articulates the need to hire the right employees
and train them on the job in the hope of retaining them for a long time.
The foundation of this principle is the belief that the expertise and
experience they might have acquired in the process of working for the
company will be placed back into the company by those workers with a
secured tenure. This, however, is considered an old-fashioned way of
approaching management. Contemporary management is suggesting the
recruitment of staff that are already-made with experience and with the
right qualifications. Some organizations have gone further to downsize
staff recruited in the old system because of their unwillingness to adapt to
new ways of performing jobs in the organization.
13. Initiative.
• Allowing all personnel to show their initiative in some way is a source of
strength for the organization. Even though it may well involve a sacrifice
of ‘personal vanity’ on the part of many managers.
• A good manager must be one who can be creative to initiate new ideas
and also be able to implement them.
14. Esprit de Corps.

• Management must foster the morale of its employees. He further
suggests that: “real talent is needed to coordinate effort, encourage
keenness, use each person’s abilities, and reward each one’s merit
without arousing possible jealousies and disturbing harmonious relations.”
• This is a French phrase which means enthusiasm and devotion among a
group of people. Fayol is of the view that organizations should enforce
and also maintain high morale and unity among their staff. This is
imperative as the existence of an organization is a result of the coming
together of men and women under a collective interest. Thus,
understanding, love for each other, unity, peace, and common
determination is paramount to their success.

3.4 Henry Gantt

He was also an associate of Taylor. He is
probably best known for two key contributions
to classical management theory: the Gantt
chartandthe task and bonus system.
The Gantt chart is a system that offers a visual

(graphic) representation of what happens during
a project. The sequential output of tasks that
make up a project is the subject of the map. For
each aspect of a task, it defines main tasks,
assigns an approximate time to complete the
task, and establishes a start date.Gantt
differentiated between a terminal-element that
must be completed as part of a larger task. The
Fig 3.7Henry Gantt
related terminal elements together created what
he called the summary element.
T
h Fig 3.8 Example of Gantt Chart
e
Gantt chart has multiple benefits for project management:
• It aids in the breakdown of tasks into specific elements.

• It allows for the monitoring of projected timelines.
• It identifies which tasks are dependent upon a prior task or element and
which are independent and can be completed at any time.

3.5 Mary Parker Follett or the "Mother of

Modern Management,"
She believed that management was "the art of
getting things done through people."
Though she never managed a for-profit enterprise,

she offered valuable insight on the importance of
"powering with" rather than "powering over," and
integrating with employees to solve conflicts.
"Leadership is not defined by the exercise of

power but by the capacity to increase the
sense of power among those led," Follett
once said. "The most essential work of the
leader is to create more leaders." Fig 3.9 Mary Parker Follett
Follett practiced these principles of coordination that helped develop her

theory of management:
• Direct contact.
Direct contact between employees and managers helps organizations avoid
conflict and misunderstandings. Holding regular meetings or discussing
assignments in person is a simple way to practice this principle.
• Early stages.
Coordination should be learned and mastered straight away. No employee
should feel less important than the next; each has a significant role that
compliments the roles of others.
• Reciprocal relationship.
Every worker, regardless of their level in hierarchy, is responsible for pulling
their weight and integrating with the rest of the organization. No one person
should be trying less or more than another – it's a team effort.
• Continuous process.
Coordination must be maintained. Don't just learn it and forget about it;
channel it in everything you do.
Known well for her mediating tendencies and managing tactics, Follett created a
management theory that is still in favor today. Its main principals include:
Integration
Follett thought that workers of all levels should integrate to reach the organization's
goals. If conflict arises, there should be a conscious effort to pull instead of push,
and to work together as a team. Because each member is doing their part, overall,
they'll be more likely to be content with result.

Power with
Rather than establishing a strict hierarchy and delegating power to certain individuals
over others, Follett believed that workers should practice co-active power. Powering
with their team is better than powering over them; this way, each member feels just
as valued as the next.
This is not to say that hierarchy should be eliminated entirely, however. Structure is
still crucial, but employees should not feel like they are less valuable than their
managers.
Group power
Group power should be valued over personal power. Organizations do not exist for
one person's benefit, but rather the entire company of workers. If this selfless
mindset prevails, then all workers will feel like they're on the same team, rather than
in competition with each other.

LEARNING ACTIVITY 1
IDENTIFICATION: Identify the following personalities described below.
_________1. Best known for two key contributions to classical management theory and one of
them is the bonus system.
__________2. This person published the book General and Industrial Management in 1916.
__________3. He believed a worker should get “a fair day’s pay for a fair day’s work”—no more,
no less and published the book The Principles of Scientific Management in 1909.
_________4. Well known in mediating tendencies and managing tactics, who is this personality
that created a management theory?
__________5. The author of the Five Principles of Bureaucracy.
ENUMERATION:
1. Enumerate the Four (4) Principles of Scientific Management
2. Enumerate the (5) Principles of Bureaucracy
HONESTY CLAUSE
For Submission: Kindly attach the file on our Google Classroom with a file name
“Module 1 – Learning Activity 2 – (Surname)”.

4. PROJECT MANAGEMENT CYCLE

As an introductory activity, you are encouraged to watch a short video entitled “What is
Project Management? Introduction in 7 Minutes (PMP/CAPM Basics/PMBOK Guide 101)”,
using the following link: https://www.youtube.com/watch?v=hr68bgoP4z4 shows a brief
discussion about the project management. Now, to get you acquainted with the terms as
well as concepts presented in the video, let us start our discussion with the important
terminologies in Project Management.
4.1 WHAT IS PROJECT

• A temporary process, which has clearly defined start and end time, with a set
of tasks and a budget, developed to accomplish a well-defined objective.
• A temporary effort of sequential activities designed to accomplish aa unique
purpose.
• A group of inter-related activities, constrained by time, cost, and scope,
designed to deliver a unique purpose.
• A temporary endeavor undertaken to create a unique product or service.
• An undertaking that encompasses a set of task or activities having an
identifiable starting point and well defined objectives.
4.2 WHAT IS PROJECT MANAGEMENT?

• “Unique process consisting a set of coordinated and controlled activities with
start and finish dates, undertaken to achieve an objective conforming to
specific requirements, including constraints of time, cost and resources”. ISO
10006
• “A temporary organization that is needed to produce a unique and predefined
outcome or result at a pre-specified time using predetermined resources”
PRINCE2
• “A time and cost constrained operation to realize a set of defined deliverables
up to quality standards and requirements,” ipma
• “Project management is the application of knowledge, skills, tools, and
techniques to a broad range of activities in order to meet the requirements of
a particular project.” Pmi
4.3 PROJECT MANAGEMENT CHARACTERISTICS

✓ Coordinated and controlled activities
✓ A temporary organization
✓ A time and cast constrained operation
✓ Application of knowledge, skills, tools, and techniques
4.4 PROJECT CHARACTERISTICS

✓ Temporary : HAS DEFINITE Start and Finish
✓ Unique : Project/Service is different in some distinguishing way

4.5 WHY DO COMPANIES USE PROJECT MANAGEMENT?

✓ To handle projects effectively
✓ To define the project and agree with the customer
✓ To plan and assess resource needs for the project
✓ To estimate project cost and make proposals
✓ To plan and schedule activities in a project.
✓ To allocate the right resource at the right time.
✓ To assess risk and failure points and make back up plans.
✓ To lead a project team effectively and communicate well.
4.6 WHY DO PEOPLE LEARN PROJECT MANAGEMENT?

✓ To explore the latest concepts and techniques of project management
✓ To increase value/contribution to the organization. To prove yourself skillful in
managing projects.
✓ To learn a new thought process that helps organized thinking and structured
approach.
✓ To acquire a professional degree/ recognition and increase job prospects.
✓ And endless possibilities and benefits…
4.7 PROJECT CHALLENGES

• Objectives not properly defined
• Insufficient planning and coordination of resources.
• Poor estimation of duration and cost
• Incomplete, unrealistic and outdated project plans
• Lack of communication
• Inadequate definition and acceptance of roles.
• Poor commitment to the project by the team
• Weak control processes
• Lack of risk analysis
• Lack of good quality controls
To be able to prevent increase in challenges, evaluation is required to be done. The

following are the example assessment questions for the evaluation:
1. What has changed in the last years that caused an increase in the
challenges?
2. What new competencies and skills are required today?
A project management methodology can help develop organizations to meet their

strategic goals by standardizing processes, reducing risk and avoiding duplication of
efforts.

4.8 PROJECT ECOSYSTEM

Development Projects must operate in a broader environment, project managers need to
consider projects within this greater context.
Projects don’t exist in isolation they are influenced by two strong

factors: the internal and external environment.
The internal environment includes conditions that the

organization has established for the project work, including: PROJECT
MANAGEMENT
Policies and procedures, compensations, benefits, standards,
access and use of technology, norms, values, politics and the
INTERNAL ENVIRONMENT
general organizational culture. EXTERNAL ENVIRONMENT
The external environmentis made of the conditions that the project Fig. 4.1 Project
has little or no influence to change, including: donor and government Environments
requirements, international or local regulations, local infrastructure,
limited availability of skills or a competitive labor market.
Every project is dependent upon the processes, people, and tools and they determine how
the work gets done. But these three essential elements are not equals. Each has its own
strengths and weaknesses, and provides different values to projects.
a. Process
The policies and procedures and the roles and responsibilities required in managing
development projects. Processes determine how the work needs to be accomplished.
b. People
The skills and capabilities of the people in charge of managing the project, and whether
or not they follow the processes and procedures to ensure quality of the services
provided by the organization.
c. Tool
The techniques and devices selected by the organization with the purpose to facilitate the
management of the project.
Fig. 4.2 Project Ecosystem

4.9 PROJECT CONSTRAINTS

A development project has to manage four basic constraints; scope, schedule, budget, and
quality.
The success of a project depends heavily on the ability, skills and knowledge of project
manager to take into consideration these constraints and develop the plans and processes
to keep them in balance.
a. Scope
- The boundaries of the project.
- It is what the project is trying to achieve, it entails all the work involved in delivering
the project outcomes and the processes used to produce them. Scope is the
boundary of a project, it is what the beneficiaries, and donors expect from the
project.
b. Schedule,
- The time to complete the project activities.
- It is defined as the time required to complete the project. It is an approximation of
the duration of all activities in the project. Schedule constraints include specific dates
to deliver an activity or complete the project.
c. Budget,
- The funding available to cover all expenses of the project
- These are the funds approved for the project, they include all the required expenses
needed in order to deliver the project within scope and schedule. A number of
constraints, financial, political, and organizational, may dictate the methods by which
resources such as personnel, equipment, services and materials are acquired.
d. Quality,
- It describes as the means of achieving the expectations of the stakeholders.
- It is defined as delivering the project outcomes according to the stated or implied
needs and expectations of the project beneficiaries and donor agency. Quality is also
defined as the conformance to requirements or fitness for use.
SCOPE
QUALITY
BUDGET SCHEDULE
Fig 4.3 Project Constraints

4.10 PROJECT MANAGEMENT CYCLE
INITIATION
CLOSURE PLANNING
ADAPTING IMPLEMENTATION
MONITORING
Fig 4.4 Project Management Cycle

Project Management consist of six (6) distinct Phases which are initiation, planning,
implementation, monitoring, adapting and closure.
a. Initiation
This stage is where a project is
approved and financed as an idea
or a concept. To explain its
objective and scope, it requires
some planning and estimating. The
major steps, during initiation
includes:
- Project Concept
- Concept Approval
- Project Proposal
- Proposal Approval
Fig 4.5 Initiation
- Project Negotiations
- Project Contract
b. Planning
This phase includes the
development of detailed plans
required to manage the
implementation of the project.
Major steps during planning
include:
- Project Charter
- Organize Project Team
- Project Kick off
- Project Management Plans Fig 4.6 Planning
- Project Plan Approval

- Communicate plans
c. Implementation
The implementation phase
includes taking all necessary
actions to ensure the activities
in the project plan are
completed and the outputs of
the plan are delivered. Steps
in this phase include:
- Develop Project Team
- Assign/designation of
Tasks
- Contract Management
- Procurement Processes Fig 4.7 Implementation
- Quality Assurance
- Communications/Reports
d. Monitoring
Monitoring is about measuring the
progress of a project against its
objectives, looking at deviations
from the plan, and recommending
corrective steps to put the project
back on track. Steps in this phase
include:
- Evaluation of Project
Reports
- Quality Control
- Issues/Risk Monitoring
- Team Evaluation
- Variance Analysis Fig 4.8Monitoring
- Determining the needs for changes/improvement
e. Adapt
The Adaptation phase refers
to the process by which the
project manager learns and
adapts the methods, plans,
and approaches and
determines what works best
for the project. Steps in this
phase include:
- Review of
Performance Reports Fig 4.9 Adaptation

- Review of Change Request / Recommendations

- Development of Proposals for Changes
- Update of Project Plans
- Capture Lesson Learned
f. Closing
The closing phase of the
project management is when
the project has achieved the
planned objectives and all
deliverables have been
completed. Steps in this
phase include:
- Project Evaluation
- Project Final Reports
- Closing Contracts
- Administrative Close
- Team Reassignments Fig 4.10 Closing
- Distribution of the Lesson Learned

MASTERY CHECK
IDENTIFICATION
1. A project constraint where project beneficiaries have a significant role.
2. A project phase where we can make changes to project plans approved?
3. It is a principle where each worker should have only one boss with no other
conflicting lines of command.
4. It means using resources wisely and without unnecessary waste.
5. They are the ends for the achievement of which managerial activities are
directed.
ENUMERATION
1. Enumerate the 5 M’s of Engineering Management.
2. Enumerate the 14 Principles of Henri Fayol.
3. Give some 5 examples of influence factors from the project external environment.
4. What are the project phases in an organization?
ESSAY
1. Discuss the definition of Project Management.
2. How does “Quality” became a part of project constraints?
3. Discuss the phases of Project Management Cycle in your own words.
*For essay, refer to page 30 Appendix A for the rubric.
HONESTY CLAUSE
For Submission:Kindly attach the file on our Google Classroom with a file name “Module
1 – Mastery Check – (Surname)”.

Module Review Questions

In an8.5” x 13” word document, write the answer for the following questions
1. A set of activities (including planning and decision making, organizing, leading and
controlling) directed at an organization’s resources (human, financial, physical and
information) with the aim of achieving organizational goals in an efficient and effective
manner.
2. It is made of the conditions that the project has little or no influence to change, including:
donor and government requirements, international or local regulations, local
infrastructure, limited availability of skills or a competitive labor market.
3. Measuring the progress of a project against its objectives, looking at deviations from the
plan, and recommending corrective steps to put the project back on track.
4. The one who developed concept of bureaucracy as formal system of organization and
administration designed to ensure efficiency and effectiveness.
5. It is a piece of work that is planned to achieve a specific purpose such as to give solution
to a problem, make something new, or to find information.
6. This phase includes the development of detailed plans required to manage the
implementation of the project.
7. What phase includes the step of approval of the project proposal.
8. It includes conditions that the organization has established for the project work, including:
Policies and procedures, compensations, benefits, standards, access and use of
technology, norms, values, politics and the general organizational culture.
9. Those resource utilized by people to do things and achieve the objectives of the
organization.
10. He is considered as the Father of Modern Management.
For Submission: Kindly attach the file on our Google Classroom with a file name “Module 1
– Module Review Questions – (Surname)”.

APPENDIX A: RUBRIC

Module 1 - Introduction To Engineering Management

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PHILIPPINE STATE COLLEGE OF AERONAUTICS

INSTITUTE OF ENGINEERING AND TECHNOLOGY

AE 322 – ENGINEERING MANAGEMENT 1|Page

TIME COMMITMENT FOR THIS MODULE

AE 322 – ENGINEERING MANAGEMENT 2|Page

4.4 Project characteristics 1 Minute

AE 322 – ENGINEERING MANAGEMENT 3|Page

Follett, Retrieved from https://www.business.com/articles/management-theory-

Commerce Forward, The five M’s of Management Explained, retrieved

AE 322 – ENGINEERING MANAGEMENT 4|Page

Course Learning Outcomes (CLO]

CLO1. Develop understanding in the

This module discusses the definitions of common terms used in Engineering

As an introductory activity, you are encouraged to watch a short video entitled

AE 322 – ENGINEERING MANAGEMENT 5|Page

A set of activities (including planning and decision-making, organizing, leading and

It is a specialized form of management that is required to successfully lead engineering or

Managers – Engineers as Managers, those in positions of authority who make decisions to

A manager is someone whose primary responsibility is to carry out the management

Efficient means using resources wisely and without unnecessary waste.

Effective means doing the right things successfully

AE 322 – ENGINEERING MANAGEMENT 6|Page

2. BASIC ELEMENTS OF MANAGEMENT

“Objectives are the goals, aims, or purposes that organizations wish

b. Financial, Human and Material Resources of Management – The 5 M’s of

Fig 2.1 5 M’s of Management

AE 322 – ENGINEERING MANAGEMENT 7|Page

resources mobilize, allocate and utilize the physical and financial

c. People – the managers and manpower.

AE 322 – ENGINEERING MANAGEMENT 8|Page

1. Define the term“Engineering” in your own words.

*Refer to page 30 Appendix A for the rubric

AE 322 – ENGINEERING MANAGEMENT 9|Page

3. PERSONALITIES IN ENGINEERING MANAGEMENT AND

3.1 Frederick Taylor

Taylor was a mechanical engineer who was particularly

Taylor issued The Principles of Scientific Management in 1909. He proposed in this

He was considered as “Father of Modern Management” by means of his systematic

AE 322 – ENGINEERING MANAGEMENT 10 | P a g e

Taylor’s Four Principles of Scientific Management

3.2 Max Weber

AE 322 – ENGINEERING MANAGEMENT 11 | P a g e

Fig 3.4 Weber’s Five Principles of Bureaucracy

Weber’s Five Principles of Bureaucracy

3.3 Henri Fayol

AE 322 – ENGINEERING MANAGEMENT 12 | P a g e

Fayol’s five duties of management were as follows:

14 Principles of Management by HenriFayol

Fig 3.6 14 Principles of Management by Henri Fayol

AE 322 – ENGINEERING MANAGEMENT 13 | P a g e

6. Subordination of individual interest to general interest. (to the general

AE 322 – ENGINEERING MANAGEMENT 14 | P a g e

• The interests of the organization supersede every other interest of staff,

9. Scalar Chain. (Line of Authority).

AE 322 – ENGINEERING MANAGEMENT 15 | P a g e

14. Esprit de Corps.

AE 322 – ENGINEERING MANAGEMENT 16 | P a g e