CEM 483 1

CHAPTER 1
Learning Outcomes

At the end of this chapter, student should be able to:

Illustrate the system

Illustrate several
Apply management approach to develop
definition of
concept in the work basic and comprehensive
management
environment. (CO1:PO1) project management.
(CO1:PO1)
(CO1:PO1)

2
WHAT IS PROJECT?
PROJECT DEFINITION AND CHARACTERISTIC

The definition of Projects

Complex, non- routine, one-time
effort limited by time, budget,
resources and performance
specification designed to meet
customer needs.

The discipline of planning, organizing,

securing and managing resources to
bring about the successful completion
of specific project goals and
objectives.
NATURE OF PROJECT 5

Specific
objectives

Risk and
Unique
uncertainty

PROJECTS

Managing
timeline
diversity

Managing
resources
The major characteristic of project :

An establish objectives
A defined lifespan with beginning and an end
Usually, involvement of several departments and
professionals
Typically, doing something that has never been
done before
Temporary organizations
 7

WHAT IS CONSTRUCTION?
Act of building
In project architecture and civil engineering, construction is
the building or assembly of any infrastructure on a site or
sites.
 8

What is management?
Management in business and human organization activity, in
simple terms means the act of getting people together to
accomplish desired goals.
 Management process 9

Resources Mangement

Employees
Planning
Financial
Organising
Products
Leading
Location
Controlling
Information
 10

What is construction
management?

Refers either to the study and practice of the managerial and

technological aspects of the construction industry (including
construction, construction science, construction management, and
construction technology)
OR
To a business model where one party to a construction contract
serves as a construction consultant, providing both design and
construction advice.
WHAT IS PROJECT MANAGEMENT?
 Definition of Project Management

According to Oxford Dictionary, Project Management can be

defined as:
The art and science of controlling people, equipment,
materials, money and schedule to complete on time and
within approve cost the operation of building planned/
undertakings.

According to Chartered Institute of Building (CIOB), U.K.,

Construction Project Management is defined as:
The overall planning, control and co-ordination of a project
from inception to completion aimed at meeting a clients
requirements.
@
The overall planning, control and co-ordination of a project
from inception to completion; concern with the identification of
the clients objective in term of activity, function, quality, time
and cost.
Objective of Construction Project Management

The objective of construction project management is to

make sure that the project completion on time, within
cost and to required quality of standards.
Managing the projects includes:

Establishing clear and achievable objectives

- Easy to understand, unique, measurable

Identifying requirements
- Specific information through the organizational charts
and meet the need.

Balancing the competing demands for quality, scope,

resources, risk, time and cost to produce a quality
deliverable.

Adapting the specifications, plans and approach to the

different concerns and expectations of various stakeholders.
Concept of Project Management

There must be one person responsible for the project.

There is an approved scope, budget and schedule for the project.
There is a project organizational chart shows authority and
responsibilities for all team members.
It must have a work breakdown structure (WBS) that divides the
project into definable and measurable units of work.
The project tasks are organized around the work to be performed.
The schedule and budget are linked to the scope of project.
There should be an explicit (clear and precisely expressed)
operational work plan to guide the entire work.
Management Key Concepts

Organisation : People working together and coordinates

their actions to achieve specific goals.
Goals : A desire future condition that the organisation
seeks to achieve.
Management : The process of using the organisation
resources to achieve the organisations goals by
Planning, organising, staffing, ,monitoring and
controlling
Additional Key Concepts
Resources are organisational assets and include:
People
Machineries
Raw materials
Information, skills
Financial capital

Managers are the person who are responsible for

supervising the use of an organisations resources
to meet its goals.
Organisational Performance
Measure how efficiently and effectively managers use
resources to satisfy customers and achieve goals

Efficiency:
A measure of how well resources are used to achieve a
goal.

Effectiveness:
A measure of a appropriateness of the goals chosen and
the degree to which they are achieved.
Managerial Functions
Henri Fayol was the first to describe the four managerial
functions when he was the CEO of a mining company in the
later 1800s.
Fayol noted managers at all levels operating in a for profit
or not for profit organisation, must perform each of these
functions:
Planning
Organising
Leading
Controlling
Planning
Planning is the process used by the managers to identify
and select appropriate goals and courses of action for an
organisation.

The planning function determines how effective and

efficient the organisation is and determine the strategies
of the organisation.
Organising
Manager creates the structure of working relationships
between organisational members that best allows them to
work together and achieve goals.
Managers will group people into departments according to
the task performed.
Give authority and responsibility.
Organisational structure is the outcome of organising.
The structure coordinates and motivates employees so that
they work together to achieve goals.
Staffing
Staffing is filling and keeping filled with qualified
people all positions in the business.
Recruiting, hiring, training, evaluating and
compensating are the specific activities included
in the function.
Getting the right person for the right job is the
outcome of staffing.
Leading
Managers determine direction, state a clear vision
for employees to follow and help employees
understand their roles.
Leadership involves a manager using power,
influence, vision, persuasion and communication
skills.
Outcome of the leading function is a high level of
motivation and commitment from employees to the
organisation.
Controlling
Manager evaluate how well the organisation in achieving
its goals and takes corrective action to improve
performance.
Manager will monitor individuals, departments and the
organisation to determine if desired performance has
been achieved.
The outcome of controlling is the accurate measurement
of performance and regulation of efficiency and
effectiveness.
Management Levels

Top Managers

Middle Managers

First-line Manager

Non-management
Management Levels
Top Manager : Responsible for the performance of all
departments and have cross-departmental responsibilities.
Establish organisational goals monitor middle managers.
Example:???

Middle managers : Supervise First-line Managers.

Responsible to fine the best way to use departmental
resources to achieve goals.
Example:???

First-line Managers : Responsible for day-to-day

operation. Supervise the people performing the activities
required to make the good or service.
Example:???
Managerial Skills
There are three skill sets that managers need to perform
effectively.
i. Conceptual skills: the ability to analyze and
diagnose a situation and find the cause and effect.
ii. Human skills: the ability to understand, alter, lead,
and control peoples behavior.
iii. Technical skills: the job-specific knowledge
required to perform a task. Common examples
include marketing, accounting, and manufacturing.
Skill Type Needed by Manager Level

Top
Managers

Middle
Managers

Line
Managers

Conceptual Human Technical

Time spent in carrying out 29

managerial functions

Organising

controlling
planning

Leading
Top
manager

Middle
manager

First line
manager
0% Percent effort 100%
KEY MANAGERIAL ROLES 30

Monitor
Disseminator Informational
Spokesman

Entrepreneur
Disturbance handler
Resource allocator
Negotiator

Figurehead
Leader
Liason
Management Challenges
Increasing number
of global
organizations.
Building competitive
advantage through
Using new superior efficiency,
technologies. quality, innovation,
and responsiveness.

Increasing
Managing an performance while
increasingly diverse remaining ethical
work force. managers.
 Why we need to have Project management for the construction
Project:

i. Due to latest technology and knowledge explosion

ii. Shorter construction period allocated
iii. Cost of project normally more than 1 million
iv. Coordination of all various sub-organizations
v. Lack off local resources (human) and management of various foreigner
workers
vi. Complexity and changed (technology, cost and risk )in the construction
industry
vii. Sources of funding such as World Bank need proper management for the
project.
viii. Indirect effect to other industries (education, factory, hospital and etc)
ix. Funding policies and etc.
x. Image of the country
Basic Management Concept
Classical Theories
- Administrative Management (Henri Fayol)
- Scientific Management (Frederick
Winslow Taylor)

Human Relation Theories

- Hawthorne Effect (Elton Mayo)
- Theory X and Y (Douglas McGregor)
History of Project Management

Project management has been practiced since early civilization.

As a discipline, Project Management developed from several fields of

application including civil construction, engineering, and heavy defense
activity.

Two forefathers of project management are Henry Gantt, called the father of
planning and control techniques, who is famous for his use of the Gantt chart
as a project management tool; and Henri Fayol for his creation of the 5
management functions which form the foundation of the body of knowledge
associated with project and program management.

Henry Gantt (1861-1919)

Henri Fayol (1841-1925)
French management theorist whose theories
concerning scientific organisation of labour were
widely influential in the beginning of 20th
century.
His theories deal with the organisation of
production in the context of a competitive
enterprise that has to control its production
costs.
Fayol was the first to identify the four functions
of management: planning, organizing,
directing, and controlling, although his version
was a bit different: plan, organize, command,
coordinate, and control.
Cont
He also identified 14 principles that he saw as
common to all organisations.

Specialisation/ Remuneration
division of labour. Centralisation
Authority with Chain / line of authority
responsibility Order
Discipline Equity
Unity of command Lifetime jobs (for good
Unity of direction. workers)
Subordination of Initiative
Individual Interests Esprit de corps
Frederick Winslow Taylor (1856-1915)
American industrial engineer, who originated
Scientific Management in business.
Scientific method to the management of workers
could improve productivity.
He assumed that:
- working systems were generally inefficient
because no-one had bothered to make
them efficient.
- workers were naturally inclined to be lazy
and inefficient.
Cont

Develop Time & Motion Study.

- business efficiency technique
- refined by Frank and Lillian Gilberth.
- to reduce the number of motions in performing a
task in order to increase productivity.
- the best known experiment involved bricklaying.
Workers should cooperate with management (no trade
union).
Cont
Best results would come from the partnership
between a trained and qualified management
and a cooperative and innovative workforce.
Developed five principles of Scientific
Management:
- Develop a science for every job.
- Select workers with right abilities.
- Provide proper training & incentives.
- Support workers.
Elton Mayo (1880 1949)
Introduce Hawthorne Effect.
Improvements in productivity or quality resulting
from the fact that workers knew they were being
studied or observed.
When workers are paid attention to, chances are
they will respond positively.
People have different sources of job satisfaction.
Interpersonal relations are required in the job
setting.
Style of supervision effects level of productivity.
Cont
Four general conclusions were drawn from the
Hawthorne studies:
- The aptitudes of individuals are imperfect
predictors of job performance.
- Informal organization affects productivity.
- Work-group norms affect productivity.
- The workplace is a social system.
Douglas McGregor
(1906 1960)
An American social psychologist, proposed his
famous X-Y theory in his 1960 book 'The Human
Side Of Enterprise'.
Theory X:
- People born disliking work, will avoid if can.
- Most people must be controlled and
threatened before they will work hard
enough.
- The average human prefers to be directed,
dislikes responsibility.
- Only small % community are born leaders,
others are followers.
Cont
Theory Y
- Working natural as playing and resting.
- Control and punishment are not the only ways to
make people work.
- If a job is satisfying, then the result will be
commitment to the organization.
- People usually accept and often seek
responsibility.
- People are self-directed.
Comments on the theory
McGregor sees these two theories as two quite separate
attitudes. Theory Y is difficult to put into practice on the
shop floor in large mass production operations, but it can
be used initially in the managing of managers and
professionals.
Managers should accept Theory Y.
Not solution for all problems, but framework for improved
management performance.
Theory Z (William Ouchi)
Theory Z was developed by not by William Ouchi,
in his book 1981 'Theory Z: How American
management can Meet the Japanese Challenge'.
Often referred to as the 'Japanese' management
style.
Advocates a combination of all that's best about
theory Y and modern Japanese management,
which places a large amount of freedom and trust
with workers, and assumes that workers have a
strong loyalty and interest in team-working and
the organisation.
Cont

Places more reliance on the attitude and

responsibilities of the workers, whereas
Mcgregor's X & Y theory is mainly focused on
management and motivation from the manager's
and organisation's perspective.
Maslow's hierarchy of needs (1940-50's )

Self-actualisation
personal growth and fulfilment

Esteem needs
achievement, status, responsibility, reputation

Belongingness and Love needs

family, affection, relationships, work group, etc

Safety needs
protection, security, order, law, limits, stability, etc

Biological and Physiological needs

basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc.
Maslow's hierarchy of needs (1940-
50's )

Each of us is motivated by needs. Our most basic needs

are inborn, having evolved over tens of thousands of
years.
Maslow's Hierarchy of Needs states that we must
satisfy each need in turn, starting with the first, which
deals with the most obvious needs for survival itself.
Cont
Only when the lower order needs of physical and
emotional well-being are satisfied are we
concerned with the higher order needs of influence
and personal development.
Conversely, if the things that satisfy our lower
order needs are swept away, we are no longer
concerned about the maintenance of our higher
order needs.