Land & Construction Management II

• Management Theory 1

• Contract Strategies

• Planning Techniques

• Management Theory 2

Land & Construction Management II

• Management Theory 1

• Contract Strategies

• Planning Techniques

• Management Theory 2

Introduction to

Management Theory

Learning Objectives:   • To understand the way in which management

thought has evolved in the West since 1900;

• To appreciate how these 'theories' may be applied in Hong Kong today;

• To compare and contrast the various theories presented.

Management Theory Exercise

• Prepare a five minute presentation on the work of one of the authors featured in Writers on Organisations, 1996, 5th ed, D S Pugh & D J Hickson.

• Use this book as your initial source of information. Indicate the main points in their work and discuss how these points might be applied to management today in Hong Kong and elsewhere.

• This session will be undertaken by splitting the class into three equal groups after week 4. Class reps are to ensure that the writers are equally represented in the presentations, i.e. no more than three presentations on any one writer.

Your Management Thoughts

Evolution of Management Thinking

The Management Theories

1. The Classical School

2. The Human Relations School

3. The Systems School

4. The Contingency School

The Management Theories

1. The Classical School

2. The Human Relations School

3. The Systems School

4. The Contingency School

1. The Classical School

Classical School

Henri Fayol:

- 5 Functions of Management

- 14 Principles of Management

Classical School

5 Functions of Management

14 Principles of Management

14 Principles of Management

Classical School

Key Points

Classical School - Key Points

Classical School

Critique

[The writings of the classical school] ‘have served to label our areas of ignorance, and may have fulfilled the need of telling managers what they should be doing (even if it did not tell them what they did). But the classical school has for too long served to block our search for a deeper understanding of the work of the manager.’

Mintzberg (1973)

Classical School - Critique

The Management Theories

1. The Classical School

2. The Human Relations School

3. The Systems School

4. The Contingency School

2. The Human Relations School

Human Relations School

Douglas McGregor

Human Relations School

Human Relations School

Human Relations School

Human Relations School

Key Points

Human Relation School – Key Points

Human Relations School

Critique

Human Relations School - Critique

The Management Theories

1. The Classical School

2. The Human Relations School

3. The Systems School

4. The Contingency School

3. The Systems School

Systems School

Organisational System

Johnson, Kast & Rosenweig (in “The Theory and Management of Systems”. 3rd Ed.)

Goals & Values

Managerial Subsystem

Technical Subsystem

Psychosocial Subsystem

Structural Subsystem

Socio-technical System

A Client need to build

Satisfaction of the client need

Start

End

Building Process

Design

Construction

Co-ordination

Higgin & Jessop (1965)

‘If the structure [of an organisation] is its skeleton, the jobs, perhaps, its muscles, the people its blood and guts and its physical perspectives its flesh, then there still remains the nervous system, the respiratory system, the circulation system, the digestive system, etc. As with the body, the systems of an organisation overlap and interlink the parts, the structure and its members. They are of a different logical order from the structure or the components pieces, for they are defined by their purpose, and are concerned with flows or processes through the structure. They are in fact ‘systems’ - it remains the best, if the vaguest, word meaning at its broadest only an interdependent set of elements.’

Handy (1985)

Systems School

‘If the structure [of an organisation] is its skeleton, the jobs, perhaps, its muscles, the people its blood and guts and its physical perspectives its flesh, then there still remains the nervous system, the respiratory system, the circulation system, the digestive system, etc. As with the body, the systems of an organisation overlap and interlink the parts, the structure and its members. They are of a different logical order from the structure or the components pieces, for they are defined by their purpose, and are concerned with flows or processes through the structure. They are in fact ‘systems’ - it remains the best, if the vaguest, word meaning at its broadest only an interdependent set of elements.’

Handy (1985)

Systems School

Systems School

Critique

Systems School - Critique

The Management Theories

1. The Classical School

2. The Human Relations School

3. The Systems School

4. The Contingency School

4. The Contingency School

• Reappraisal of the role of management theories.

• Each theory or school of thought can be no longer viewed as an independent approach.

• Rather than searching for the one best way to organise under all conditions, develop contingent upon the demands of the orgainsation task, technology, or external environment.

Contingency School

Burns and Stalker‘sTwo Types of Organisation

Mechanistic

Organisation

Organic

Organisation

Structure Rigid Flexible

Tasks, methods and duties

Well-defined Constantly adjusted

Communications Vertical

Hierarchy

Lateral Hierarchy

Mechanistic Organisation

Organic Organisation

Most appropriate for

Routine activities

Non-routine activities

Major concern Productivity Creativity & innovation

Decision making Programmable Encourage self-exploring

Lawrence and Lorsch (1967)

‘Contingency theory suggests that “organisational variables are in a complex inter-relationship with one another and with conditions in the environment”, and that environmental contingencies act as constraints and opportunities and influence the organisation’s internal structures and processes.’

Lawrence and Lorsch (1967)

Contingency School

Construction Industry

The Management Theories

1. The Classical School

2. The Human Relations School

3. The Systems School

4. The Contingency School

The Four Schools

Key points

The Four Schools - Key Points

Management Theory

Pre-Assignment

• Read Chapter 1, 2 and 3 of ‘The Practice of Construction Management’

• Obtain a copy of ‘Writers on organisations’

Management Theory Exercise

• Prepare a five minute presentation on the work of one of the authors featured in Writers on Organisations, 1996, 5th ed, D S Pugh & D J Hickson.

• Use this book as your initial source of information. Indicate the main points in their work and discuss how these points might be applied to management today in Hong Kong and elsewhere.

• This session will be undertaken by splitting the class into three equal groups after week 4. Class reps are to ensure that the writers are equally represented in the presentations, i.e. no more than three presentations on any one writer.

Video Viewing

‘Decisions, Decisions’

(A vital management skill)

‘Decisions, Decisions’

• Two separate but interlinked stages of the decision process:– making the decision– making it happen

‘Decisions, Decisions’

• A simple approach to take decisions:– Collect the facts– Consult the people– Make the decision– Communication the decision– Check