Mutual Respect between employee and manager is always needed, however I think that a manager doesn't necessarily need to be from the same discipline or have extreme technical knowledge of a matter for their employee's or project's to be successful (of course, a degree of knowledge of the industry/project is important and needed). I think a manager's respect should come from their ability to help the employee grow, become more successful, and equip them with the resources they need to be successful. I may have more technical experience than my manager, but that doesn't mean I should have difficulty respecting them (especially as everyone has different areas of knowledge). If you do have more technical knowledge/experience than your manager, then I think it is on you to work on communication to explain your reasonings (Although engineering is a technical field, communication is still the most important thing). 

I also think this ties into a difference between managers and research fellows (Subject Matter Experts). From what I've seen, at a certain point in a career in industry, you are asked to choose between the managerial route or the technical route. Of course, the technical route means you will eventually become an expert on a topic and that you will always be reporting to a manager that will know less than you about that topic. That doesn't mean the technical person shouldn't respect their manager, but should work on their ability to communicate their thoughts/ideas to their manager more clearly.

Thanks,

Matt