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PCM Chapter 2

This document discusses management principles and concepts. It defines management as a process of planning, organizing, directing, and controlling organizational resources to achieve goals. The document outlines the development of management from early human resources approaches to modern theories like systems theory and contingency theory. It describes the functions of managers as planning, organizing, staffing, leading, and controlling. Finally, it discusses roles of managers in interpersonal areas like leadership and liaison work, as well as informational roles in monitoring, disseminating, and being a spokesperson.

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32 views

PCM Chapter 2

This document discusses management principles and concepts. It defines management as a process of planning, organizing, directing, and controlling organizational resources to achieve goals. The document outlines the development of management from early human resources approaches to modern theories like systems theory and contingency theory. It describes the functions of managers as planning, organizing, staffing, leading, and controlling. Finally, it discusses roles of managers in interpersonal areas like leadership and liaison work, as well as informational roles in monitoring, disseminating, and being a spokesperson.

Uploaded by

ሄኖክ ብርሃነ
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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PROGRAM:CONSTRUCTION TECHNOLOGY AND

MANAGEMENT
PRINCIPLES OF CONSTRUCTION
MANAGEMENT(COTM
MANAGEMENT (COTM 2171)
CHAPTER-2
CHAPTER-
General Management basics and organization

March,2015

Minweyelt.E
CONTENTS
Development of management
Basic functions of management and roles of
managers
Definition of Management
Management can be defined in many ways;
v A means of getting things done through people in
order to achieve objectives.
v A means of integrating resources (materials,
finance, human resources, information, etc.,) in
order to achieve organizational objectives efficiently
and effectively.
v A process of planning, organizing, directing and
controlling of organizational activities and resources
in order to achieve objectives (Management
function)
General management: major components
– Property Management
– Production & Distribution Management
– Organization Management
– Resources Management
– Project Management
– Strategic Management
– Stakeholders (Relationships) Management
– Process / Result Management
– Information Management
– Research & Development (Knowledge)
– Performance Management, and
– Network Management
The Development of Management
Early development
• Classify management as applicable to only
business or industry related discipline.
Industrial development
• Human Resources Management (Robert Owen)
– Limit working hours
– Monitoring mechanism to boost productivity
• Scientific Management (Charles Babbage)
– Division of labor for development
– Observation of operation processes to improve them
• Importance & initiatives for Management Training
(Andrew Ure & Charles Duprin)
Classical Development
• Henri Fayol:
– Division of work or labor,
– Authority and Responsibility,
– Discipline,
– Unity of Command,
– Unity of Direction,
– Subordination of individual interest to the general interest,
– Remuneration,
– Centralization,
– Scalar chain or line of authority,
– Order,
– Equity,
– Stability of tenure of personnel,
– Initiative, and
– Esprit De Corps or Union is Strength.
Classical Development
• Frederick W. Taylor (Father of Scientific
Management)
– Planning
– Organizing
– Coordinating (staffing)
– Managing (monitoring)
Behavioral Development (Maslow)
Ø Maslow’s hierarch of needs theory
Self actualization needs Involvement in planning one’s work
Opportunity for growth and development
Reaching ones’ potential
Opportunity to help others
Independence Creativity Creative work
Growth Self expression Freedom to make decisions
Esteem Needs
needs Responsibility Self-respect
Status symbols
Recognition, awards
Recognition Sense of accomplishment Challenging work
Sense of competence Sense of equity Opportunity for advancement
Sharing decision making
Social/affiliation needs Opportunities to interact/network
Compassion Acceptance Team based work
Love and affection Group membership Friendly co-workers
Job security
Safety/security needs Sound policies and practices
Proper supervision
Deficiency Security for self and position
Safe working condition
Avoidance of risk Avoidance of pain
needs Fringe benefits
Physiological needs Adequate compensation
Food Clothing Rest periods
Labor saving devices
Shelter Comfort
Efficient work methods
Self-preservation
Behavioral Development (McGregor)
Douglas McGregor

Theory X assumption Theory Y assumption


ØPeople inherently dislike work and, whenever ØPeople are able to view work as natural as rest
possible, will attempt to avoid it or play
ØBecause employee dislike work, they must be ØEmployees will direct with themselves toward
forced or threatened to achieve goals goal achievement if committed to those goals
ØEmployees need direction to perform and avoid ØMost employees accept responsibility and may
responsibility if possible. of these actively seek it
ØEmployees do not have a lot of ambition; they ØEmployees at all levels are innovate; not only at
are more interested in job security management level
Quantitative contributions

Decision making process using


mathematics, statistics and other
quantitative techniques.
Systems Developments (Theory)
• a system is a assemblage of interrelated parts
that work together by way of some driving
process Systems are often visualized or
modeled as component blocks that have
connections drawn between them.
Contingency Theory
• Situational management
• Management actions and styles should be
dependent upon the circumstances of the
situation confronting the manager.
Environmental factors such as public opinion,
employee and management attitudes might
have impact on the decision making process.
Recent Contributions
New management principles
• Total quality management (TQM),
• Management by projects (MBP),
• Business process re-engineering (BPR), Value
engineering/ management (VE/ VM), and
• Concurrent engineering (CE).
Total Quality Management
• A cooperative form of doing business that
relies on the talents and capabilities of labor
and management, using teamwork, to
continually improve quality, economy and
productivity, to complete satisfaction and
delight of the customer.
Total Quality Management
• ISO 9000:2000
• Customer focus
• Leadership
• Involvement of people (Training & Empowerment)
• Process approach
• Continuous Improvement
• Mutual beneficiary supplier relationship
• Factual approach to decision making
• Systems approach to management
Management by Projects (MBP):
• Management by projects is a way, an outlook,
and an attitude cultivated to treat any trade of
work, undertaking, scheme, assignment or a
set of activities, as a project.
Business Process Re-engineering
• rapid thinking,
• creating new scenario,
• simplify processes,
• information technology to reintegrate works,
• fewer skilled employees, and
• flatter organization
Value Engineering / Management (VE /
VM )
• Value Engineering is a systematic study of
project requirements using a multi-disciplined
team to identify and eliminate unnecessary
costs and poor performance by using
functions.
Concurrent Engineering (CE)
• A systematic approach to the integrated,
concurrent design and their related processes,
including manufacturing and support. This
approach is intended to cause developers
from the outset, to consider all elements of
the product life-cycle from conception
through disposal including quality, cost,
schedule, and user requirements.
Functions of Management
Functions of Managers (Taylor)
– Planning
• Establishing goals and standards, developing rules and procedures,
developing plans and forecasting
– Organizing
• Create an organization structure that facilitates communication,
interactions and at the same time shows a clear responsibility and duty.
– Staffing/ Procuring
• Type of people to be hired, recruiting prospective employees, selecting
employees, setting performance standards, compensating employees,
evaluating performance, counseling employees, training and developing
employees
– Leading/Directing
• Getting others to get the job done, maintaining morale, motivating
subordinates and communicating instructions and orders
– Monitoring/Controlling
• Checking to see how actual performance compares with standards and
taking corrective actions as needed
Roles of managers
Interpersonal Roles These roles are related to formal authority base of managers.
Figurehead Roles related to ceremonial in nature.
Leadership Roles related to ensuring achievement of goals.
Liaison Roles related to communication with internal and external stakeholders to develop favorable relationships and networks.

Informational Roles These roles are related to availing sufficient information to carryout jobs effectively. Because they are information centers
Monitor for information and communication source.
Disseminator Roles related to scanning internal and external environments of their organizations for selecting useful information.
Spokesperson Roles related to sharing and distributing useful information to employees.
Roles related to information communications to external stakeholders.

Decision Roles These roles are related to processing information to reach conclusions.
Entrepreneur Roles related to initiating new developments.
Disturbance Handler Roles related to conflict resolution and problem solving.
Resources Allocator Roles related to distribution and assignment of different resources to projects.
Negotiator Roles related to win comparative & competitive advantages to achieve goals.
Levels of management

Top Middle Lower


Management Management Management
Top
Mangt

Conceptual Conceptual

Conceptual
Human

Middle Management
Human

Technical
Human

First – Line or
Lower Technical
Management
Technical
Managerial skills

Conceptual Skills
Intellectual ability to process information and make accurate
decision about the work, group, and the job

Interpersonal Skills
Management Skills
Communication , conflict resolution, leading

Technical Skills
Knowledge and ability to accomplish the specialized activities
of the work group
THANK YOU!

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