The Engineer As Economist Analysis

Henry R. Towne in his writing “The Engineer as Economist” asserts the importance of placing attention to the “business like” methods and aspects of management of engineering operations. Similarly, Towne stated the importance of associating the duties into the industrial operations of the departments in order to reach a high level of productivity among all operations. Furthermore, the reading states the importance of combining two important elements “engineering” and “business like” skills to ensure that the individuals is qualified to enhance the development of the industry. Henry R. Towne argued, “… is essential to the successful management of industrial works, and has its highest effectiveness if united in one person…” (p. 49).

The author

Towne argued, “… to a special committee, by whom it can be carefully considered, and by whom, if it seems expedient to proceed further, the whole matter can be matured and formulated in an orderly manner…” (p. 52).

Where does the power of decision-making rest according to this reading in an organization?

The power of decision-making lies on the individual knowledge of the general principles of management such as the division of work, subordination, order and equity that a manager will eventually place during the industrial operations. The decision-making of the upper level managers and committees will help them to strengthen or weaken the operations and management of staff members or employees.

Compare and contrast in three sentences from the reading to the tenets that are fundamental to the Classical School of Thought. (You can find these in the introduction of the

“Under the head of Shop Management fall the questions of organization, responsibility, reports, systems of contract and piecework, and all that relates to the executive management of works, mills and factories. Under the head Shop Accounting fall the questions of time and wages systems, determination of costs, whether by peace or they-work, the distribution of the various expense accounts, the ascertainment of profits, methods of bookkeeping, and all that enters into the system of accounts which relates to the manufacturing departments of a business, and to the determination and record of its results” (p.50).

The third tenet dissemination of useful knowledge separates the functions and knowledge into two categories: shop management and shop accounting. The author asserts that shop management requires singular skills that are primarily developed for the executive management work. On the other hand, shop accounting provides skills that are specifically attach to the record of business. The interexchange of common experience could eventually help to the formation of new intellectual