CA3686

Construction Contract and

Management

Introduction to Management

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 Intended Learning Outcomes

 The ILOs for the students are as follows:

 ILO1 – Recognize what management is and why

management is required

 ILO2 – Explore the organization concept

 ILO3 – Introduce management levels and management

skills

 ILO4 – introduce manager’s functions and roles

 ILO5 – Introduce management in construction industry and

projects
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 How to define ‘Management’?

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 ‘Management’
 The process of getting things done with and
through other people, effectively and
efficiently.
 The process of planning, organizing, leading,
and controlling the work of organization
members and of using all available
organizational resources to reach stated
organizational goals. (Stoner et al, 1995)

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Why study ‘Management theories’?
Management theories rely upon observations and mathematics
to construct models or principles for business activities.

Develop insight into and predict the behaviors of individuals and

the organizations.

Management is universally needed in all organizations, and we

interact with organizations every day.

An understanding of the theories provides the foundation for

developing into managers

Be well managed.

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What is an “Organization”?

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 Organization defined

An organization is a co-operative goal-

realizing unit in which participants
consciously enter into a mutual
relationship and work together in order to
attain common goals. (Keuning 1998)
A social entity brought into existence and
sustained in an ongoing way by humans to
serve some purpose. (Rollinson & Broadfield 2002)

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 Organization
an “Organization”
⇒ is a social arrangement

⇒ has a boundary

⇒ has an objective/purpose

⇒ controls its own performance

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Who is a Manager?
 Who is a Manager?

Non-managerial employees work directly on a job

or task, and have no one reporting to them.

Gets work done through other people

- by initiating and directing actions and overseeing
the process
 Managerial Roles
Henry Mintzberg1 concluded that what
managers do can best be described by
looking at the managerial roles they engage
in at work

- A `role' consists of the behaviour patterns

expected of an individual within a social unit.

Question: what are your roles in the school and

your family? Any difference?
1Mintzberg, H. 1973. The Nature of Managerial Work . New York: Harper & Row
 Managerial Roles

Interpersonal Informational Decisional

• Leader • Monitor • Deciding
• Liaison • Share • Handling
• Symbol information disagreements
• Spokesperson • Allocate
resources
• Initiative

(Source: Mintzberg 1973)

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Management levels and skills
In traditionally structured organization,
managers can be broadly divided into
3 levels, namely:
a) Top management,
b) Middle management, and
c) Front-line /First-line management.
 Position of Three Level Management

Source: Keuning, D. 1998. Management- A Contemporary Approach. London: Pitman, p.23.

What types of skills do managers
need?
Robert L. Katz1 proposed that managers need
three critical skills:

Conceptual;
Human; and
Technical.
1Katz, R. L. 1974. Skills of an Effective Administrator. Harvard Business
Review, September/October, pp. 90–102.
 Management Skills
 Technical skills are the job specific
knowledge and techniques needed to
proficiently perform work tasks.

managing employees who use tools and

techniques to produce the organization’s
products or service the organization’s
customers.

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 Management Skills
 Human skills involve the ability to work
well with other people both individually and
in a group.

Managers should know how to communicate,

motivate, lead, and inspire enthusiasm and
trust.
Managers with good human skills get the best
out of their people.

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 Management Skills
 Conceptual skills are the skills managers
use to think and to conceptualize about
abstract and complex situations.

Managers visualize how the organization fits

into its broader environment; understand the
relationships among various subunits and see
the organization as a whole.

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Relative skills needed for effective Performance at Different levels of
Management

(Source: Stoner et al. 1995, p.18)

Functional perspective
Management can be identified as a series of
functions, namely:
a) Planning, b) Leading,
b) Organizing, d) Controlling

The model which identifies major management activities

being Planning, Organizing, Leading and Controlling
was developed by Henri Fayol1, a French
businessman, at early part of the twentieth century
and is still in use today.

(1Fayol, H. 1916. Industrial and General Administration. Paris: Dunod )

Planning

Goals and actions thought in advance.

• Gives organizations its objectives.
• Set up the best procedure for reaching the
objectives.

(Source: VITEX.com, 2012 Oct)

Organizing

The process of arranging and allocating

work, authority and resources.
• Different goals require different structures.
Matching of structures (organizational
design).
 Leading
directing, influencing, and motivating
employees to perform essential tasks.
• Through people to accomplish goals.
• By establishing the proper atmosphere,
managers help their employees do their
best.

(Source: An Ol’ Broad’s Ramblings, 2009 Feb)

Controlling
Ensure actions move toward goals (over time).
• This process of monitoring, comparing, and
correcting
• To ensure that goals are being met and that
work is being done as planned, managers must
monitor and evaluate performance.
 Functions of Management

(Source: Robbins & Coulter 2012, p.9)

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Project Management

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What is a project?

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Definition:
 A project is the change caused by a series of

activities which are undertaken within specific

constraints.
 A project is a temporary endeavor undertaken

to create a unique product, service, or result. (PMI,

2004)
 temporary – definite beginning and a definite end
 unique – owner, design, location, team, etc.

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 Project Management
 The CIOB defines project management as
“the overall planning, coordination, and
control of a project from inception to
completion aimed at meeting a Client’s
requirements in order to produce a
functionally and financially viable project
that will be completed on time, within
authorized cost and to the required quality
standards.”
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Objectives of a construction project

Time

Also to meet the requirements of

Environmental & Safety concerns
Scope
People
Cost Quality

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Stages of the project development

(CIOB 2002)

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 End of presentation

(All text and illustrative materials reproduced in this presentation is solely for education purpose)

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 References
Stoner, J.A.F., Freeman, R.E. and Gilbert, D. R.,
1995. Management. 6th Ed. Englewood
Cliffs: Prentice Hall.
Calvert, R.E., Coles, D.C.H. and Bailey, G.J.,
1995. Introduction to building management.
6th ed. Oxford: Butterworth Heinemann.
Robbins, S.P. and Coulter, M., 2012.
Management. 11 ed. New Jersey: Prentice
Hall.
Mawdesley, M., 1997. Planning and
controlling construction projects: the best
laid plans. Essex: Longman.
Project Management Institute, 2004. A
guide to the project management body of
knowledge (PMBOK guide). 4th ed. New
York: Springer.
Chartered Institute of Building, 1988.
Project management in building. 3rd ed.
Ascot: CIOB.
Chartered Institute of Building, 2002. Code
of practice for project management for
construction and development. 3rd ed.
Malden: Blackwell
Rollinson, D. and Broadfield, A., 2002.
Organisational behaviour and analysis - an
integrated approach. 2nd ed. Harlow:
Financial Times/Prentice Hill.
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