2 Lecture 1a RMK 252 Organization and Management FEB 2012 For Students - 2

ORGANIZATION AND MANAGEMENT
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RMT553/LECTURE 1/JUN2003
Organization and The Needs for Management

we are members of one organization or another - a sport team - a musical group - a civic organization - a religious organization - arm forces - business some are formal Informal common elements - army - business - sports team - musical group - goals - plan + mobilization of resources - managers/leaders
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WHY ORGANIZATION IS NEEDED?

Serves society.
Accomplish objectives.
Preserves knowledge.
Organizations provide career.
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WHY MANAGEMENT IS NEEDED

TO SERVE ORGANISATIONS TO GUIDE ORGANISATIONS TO PLAN FOR ORGANISATION TO CONTROL ORGANISATION TO MONITOR ORGANISATION
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SIZE OF ORGANIZATIONS AND COMPLEXITY
SMALL COMPLEXITY EMPLOYEE MEDIUM
LOW
MANAGEMENT AND ADMIN PROCESS SALES AND TURNOVER COMMUNICATION SYSTEM
LARGE
INFORMAL SECTOR HIGH
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MNAGEMENT IS AN INTELLECTUAL WORK people in organization MAKING IMPORTANT DECISIONS
TYPE, SIZE
OrganizationS
GOALS/VALUES PERFORMANCE
Management
effectiveness efficiency
Organizations Growth
People
In size, diversity, complexity
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Organization and Internal Culture

A set of values, belief, understanding
Commonly shared
Management Role:- to shape up culture management style. Organizational Culture & Management Style
Have significant impact on 2 fundamental values;
1.
Productivity
2.
Well being
Increase performance
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Managerial and Organizational Performance
Organizational Performance
goal/objectives is a measure of goals/objective accomplishment.
Managerial Performance
How well managers do their jobs
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THE MEASURE OF HOW EFFECTIVE AND EFFICIENT A MANAGER IS HOW WELL HE OR SHE DETERMINES TO ACHIEVES APPROPRIATE OBJECTIVES
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A MEASURE OF ACHIEVING
ORGANIZATION
GOALS OBJECTIVES
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ORGANIZATIONAL GOALS/OBJECTIVES

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PROFIT PRODUCTIVITY LESS COST ON TIME QUALITY USEFUL PRODUCTION /SERVICES CUSTOMERS SATISFACTION ENVIRONMENTAL FRIENDLY MEETING ECONOMIC OBJECTIVE MEETING SOCIAL OBJEVTIVE MEETING ENVIRONMENTAL OBJECTIVE SUSTAINABLE PRODUCTION PROCESS ETC.
DOING THINGS RIGHT
DOING THE RIGHT THING

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ORGANIZATION
DEFINITION
Structuring and integrating activities. People and task and cooperation in interdependent relationship.
So Organisation is:
goal oriented arrangement

Psychosocial system people interact in groups Technological system
An integration of structured activities.
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EVOLUTION OF ORGANIZATION
LARGE COMPLEX MULTIPLE OBJECTIVES
SMALL FAMILIES
VILLAGES
COMMUNITEE
FEUDAL NATION
OTHER SOCIAL ORGANIZATIONS

MANAGERS & ADMINISTRATORS
SMALL SIMPLE SINGLE OBJECTIVE
BUSINESS ORGANIZATIONS
MANAGERS
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ORGANIZATION CHART
TOP
CEO
MIDDLE
MANAGER MANAGER MANAGER MANAGER
BOTTOM
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ENVIRONMENT
1 2
ENVIRONMENT
INPUT 5 OUTPUT
4
1. 2. 3. 4. 5. Goal & values sub-system Technical sub-system Structural sub-system Pschosocial sub-system Managerial sub-sistem
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ENVIRONMENT
ORGANIZATION AS A SYSTEM
MANAGEMENT
DEFINITIONS Many authors defined management differently due to differ in perceptive and backgound. Till today there is no definition that can be regarded as comprehensive and totally acceptable at all situation.
(i) As a process where a group of people cooperate and coordinate their actions to achieve the same goal. - Massie, J.L., Essentials of Management.
(iI) As a process of planning, organizing, leading and controlling the work of organization members and of using all available resources to reach stated organizational goals. - J.A.F. Stoner, Management, 1982.
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DEFINITION ctd
All the above definitions shows that:

They are different; Emphasize different things; Overlapping term; But, The keyword is: A PROCESS Management is a process of integrating resources (human, plants, materials) which are unrelated to become a system so that organizational goals can be achieved effectively.
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MANAGEMENT CONCEPT
M A N A G E M E N T
Management Process Forecasting Planning Organizing Coordinating Controlling Motivating Monitoring Resources
Human Plants Materials
Achieving Organization Goals
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LEVEL OF MANAGEMENT
Environment
top strategic CEOs Functional managers First line Managers coordinative
middle
bottom
operative
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FUNCTIONAL & GENERAL MANAGER
Functional Management
General Manager (GM)
First-line Managers
First-line Managers
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Percentage Spent on Functional Activities by Organizational Level

Top Managers Planning 28% Organizing 36% Leading 22% Controlling 14%
Middle Managers
Planning 18% Planning 15%
Organizing 33%
Leading 36% Leading 51%
Controlg 13%
First-line Managers
Organizing 24%
Controlg 10%
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ORGANIZATION AND MANAGEMENTIS
Skills For Effective Performance
Top Conceptual
Middle Conceptual
Bottom Conceptual Human
Human Human Technical
Technical
Technical
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MANAGERIAL ROLES
A role consists of the behaviour patterns expected of an individual within a social unit. Interpersonal Roles Figurehead Leader Liaison Informational Role Monitor Disseminator Spokesman Decision Role
Entrepreneur Resource Allocator Negotiator
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The Challenge of Management

Preparing for the Future Management may rely heavily on Human Skills & Conceptual Skills
Major Changes Includes: Paradigm Shifts Chaos Theory Workplace Diversity Merger & Acquisition Not-for-profit Organization Globalization
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Paradigm Shifts
It is a mind-set that presents a fundamental way of thinking, perceiving and understanding the world.
Watch Technology Travel Technology Construction Procurement System
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The Challenge of Management Chaos Theory

The Existence of Randomness & Disorder Unpredictable
Shifting Paradigm from Predictable and control future events To Flexible, adaptable & stay connected with customers and environment. Managers concern more on Facilitating teams and managing overall pattern Than Detailed planning and controlling
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The Challenge of Management Workplace Diversity
Organization must learn to Welcome Diverse people at the Upper Ranks
Different Sex Different Race Different Nationality Internet
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Merger and Acquisitions
Mergers and Reorganizations are seen as an Opportunity for Companies to become more efficient.
Managers must be flexible to work for New Bosses
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Globalization
Managers need to think Globally because are enmeshed with Foreign competitors, suppliers, and customers.
AFTA NAFTA EU Successful managers of tomorrow will be able to cross borders, will be good at language, and will Understand cultural differences. Global experience is a prize asset of the managers of tomorrow.
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MANAGEMENT AND ORGANIZATION

Size, diversity, complexity
Internal Culture
Performance
ORGANIZATION
Quality Strength GOALS Management
Manager - Productivity - Well being Different styles
Permanent & Temporary

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TENDER
CONSTRUCTION A PROCESS
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COST TIME QUALITY And other Intagibles
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PROJECT SUCCESS/PERFORMANCE
COST TIME QUALITY COMMERCIAL VALUE (PROFIT) ENVIRONMENTAL PERFORMANCE USER EXPECTATION/SATISFACTION PARTICIPANTS SATISFACTION HEALTH AND SAFETY
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MULTIPLE INPUT PROCESS

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VARIOUS INPUT
MANAGEMENT
PROJECT OBJECTIVE
PROJECT MANAGEMENT AN ORGANISATION

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PROJECT MANAGEMENT - A PROCESS

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MANAGEMENT PROCESS AT PREDESIGN

FORECASTING PLANNING
ORGANISING
COORDINATION
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COMMUNICATION
MANAGEMENT PROCESS AT DESIGN STAGE

PLANNING ORGANISING CONTROL
COORDINATION MOTIVATION COMMUNICATION

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MANAGEMENT PROCESS AT COSTRUCTION STAGE

ORGANISE CONTROL
COORDINATION
COMMUNICATION
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MANAGEMENT PROCESS AT OCCUPATION STAGE

PLANNING ORGANISING CONTROL
CORDINATION MOTIVATION COMMUNICATION

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PLANNING
CONTROLLING
HIGH
LOW
PLANNING VS CONTROLLING IN CONSTRUCTION

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ASSIGNMENT 1
DUE DATE: 3 WEEKS (15 MARCH 2012, 4.30PM, OFFICE HBP)
WHAT IS MANAGEMENT PROCESS? DEFINE EACH ELEMENT OF MANAGEMENT PROCESS? HOW THESE ELEMENTS OF MANAGEMENT PROCESS INVOLVE IN CONSTRUCTION PROJECTS? WHY PLANNING AND FORECASTING ARE IMPORTANT TO THE TOP MANAGEMENT?
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2 Lecture 1a RMK 252 Organization and Management FEB 2012 For Students - 2

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2 Lecture 1a RMK 252 Organization and Management FEB 2012 For Students - 2

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ORGANIZATION AND MANAGEMENT

ORGANIZATION AND MANAGEMENT

Organization and The Needs for Management

ORGANIZATION AND MANAGEMENT

WHY ORGANIZATION IS NEEDED?

WHY MANAGEMENT IS NEEDED

SIZE OF ORGANIZATIONS AND COMPLEXITY

SMALL COMPLEXITY EMPLOYEE MEDIUM

MANAGEMENT AND ADMIN PROCESS SALES AND TURNOVER COMMUNICATION SYSTEM

INFORMAL SECTOR HIGH

ORGANIZATION AND MANAGEMENT

MNAGEMENT IS AN INTELLECTUAL WORK people in organization MAKING IMPORTANT DECISIONS

In size, diversity, complexity

ORGANIZATION AND MANAGEMENT

Organization and Internal Culture

ORGANIZATION AND MANAGEMENT

Managerial and Organizational Performance

goal/objectives is a measure of goals/objective accomplishment.

ORGANIZATION AND MANAGEMENT

DOING THINGS RIGHT

DOING THE RIGHT THING

ORGANIZATION AND MANAGEMENT

goal oriented arrangement

An integration of structured activities.

ORGANIZATION AND MANAGEMENT

OTHER SOCIAL ORGANIZATIONS

ORGANIZATION AND MANAGEMENT

ORGANIZATION AND MANAGEMENT

ORGANIZATION AND MANAGEMENT

ORGANIZATION AND MANAGEMENT

All the above definitions shows that:

ORGANIZATION AND MANAGEMENT

Human Plants Materials

Achieving Organization Goals

ORGANIZATION AND MANAGEMENT

ORGANIZATION AND MANAGEMENT

FUNCTIONAL & GENERAL MANAGER

General Manager (GM)

ORGANIZATION AND MANAGEMENT

Percentage Spent on Functional Activities by Organizational Level

Planning 18% Planning 15%

Leading 36% Leading 51%

ORGANIZATION AND MANAGEMENTIS

Skills For Effective Performance

Bottom Conceptual Human

Human Human Technical

ORGANIZATION AND MANAGEMENT

Entrepreneur Resource Allocator Negotiator

ORGANIZATION AND MANAGEMENT

The Challenge of Management

ORGANIZATION AND MANAGEMENT

The Challenge of Management

ORGANIZATION AND MANAGEMENT

The Challenge of Management Chaos Theory

ORGANIZATION AND MANAGEMENT

The Challenge of Management Workplace Diversity

Organization must learn to Welcome Diverse people at the Upper Ranks

Different Sex Different Race Different Nationality Internet

ORGANIZATION AND MANAGEMENT

The Challenge of Management

Managers must be flexible to work for New Bosses

ORGANIZATION AND MANAGEMENT