D 39 BU Business Management in the Built
D 39 BU Business Management in the Built Environment LESSON 5 : STRATEGIC FORMULATION Structure follows Strategy” Chandler, 1962. sl/BMBE/2017 1
Alfred Chandler’s definition Unit 4 pg 2 Strategy is the determination of the long term goals and objectives of an enterprise and the adoption of courses of action to achieve or carry out these goals. In his view, structure is determined by strategy and culture of the organisation sl/BMBE/2017 2
Business Management in the Built Environment Organisation structure affects the optimised allocation of resources an rg io Structure n M s ic at ge r e lit po ic un ac / r n m m is u q io at is n o i it Strategy co ar M t e k r fo O s e c leadership Culture restructuring Diagram : pg 2 of unit 2 - team building & organisation sl/BMBE/2017 3
Business Management in the Built Environment Organisation structure This is depicted by a simple OC – organisation chart Unit 2 Pg 4 showing : A) the position of the staff B) the chain of command C) Reporting relationships & communications Types of Organisations: from Pg 4 -8 Functional Type Geographical Type Product based type Divisional type Matrix type sl/BMBE/2017 4
Business Management in the Built Environment Organisation Design – to determine span of control This is governed by the following elements: • Assignment of tasks and responsibilities • Grouping of individual positions into units and departments • Determining various mechanisms for vertical and horizontal co –ordination sl/BMBE/2017 5
Business Management in the Built Environment Team Formation & Dynamics Construction companies and built environment organisations are very labour intensive organisations, so teams and people influenced human behaviour due to different personality and types of leadership sl/BMBE/2017 6
Business Management in the Built Environment Bruce Tuckman’s 1965 Model sl/BMBE/2017 7
Business Management in the Built Environment 4 stages of team formation Stage 1: Forming Stage 2: Storming Stage 3 : Norming Stage 4: Performing Refer to Unit 2 pg 11 sl/BMBE/2017 8
Business Management in the Built Environment IMPORTANCE OF TEAMWORK INDIVDUALS CANNOT WORK ALONE IN BUILT ENVIRONMENT SO TRAINING FOR TEAM WORK IS VITAL FOR SUCCESS DIVERSE WORK TASKS AND LONG WORKING HOURS REQUIRE COHESIVENESS AND CO OPERATION SO EFFECTIVE TEAMS ARE THUS CRUCIAL FOR THE COMPLETION & DELIVERY OF PROJECTS (REFER TO TEXT) sl/BMBE/2017 9
Business Management in the Built Environment TEAM ROLES : M Belbin’s 1993 Model EVERY MEMBER PLAYS A VITAL ROLE IN EACH PROJECT – read Pg 13 - sl/BMBE/2017 10
Business Management in the Built Environment Team building TEAMS REALLY DO INFLUENCE PERFORMANCE IN A PROJECT WITHIN THE CONSTRUCTION ENVIRONMENT. TEAMS PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS & PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMS sl/BMBE/2017 11
Business Management in the Built Environment Motivation & productivity Leaders motivate their co-workers and employees Employees are motivated by various needs to increase productivity and work towards organisational goals …. sl/BMBE/2017 12
Business Management in the Built Environment MASLOW HIERARCHY OF NEEDS Unit 3 Pg 10 sl/BMBE/2017 13
Business Management in the Built Environment HERZBERG’S MOTIVATORS Unit 3 Pg 11 sl/BMBE/2017 14
Business Management in the Built Environment Unit 3 Pg 12 MCGREGOR’S THEORY X & Y sl/BMBE/2017 15
Business Management in the Built Environment CULTURE AND ETHOS Culture is a concept that is important in influencing the behaviour of members of an organisation/group. Edgar Schein believed that there are 3 layers to the culture: • Level 1: Artefacts • Level 2 : Espoused values • Level 3: Basic assumptions sl/BMBE/2017 16
Business Management in the Built Environment Discussion and analysis (class discussion) A) identify examples of artefacts, espoused values and basic assumptions of the organisation you are working for B) Identify the different jobs/occupations such as Architects, QS, Project Managers, Civil Engineers and see what sets of cultural profiles they display C) How is culture communicated to the employees and clients? sl/BMBE/2017 17
Business Management in the Built Environment UNIT 3: Human Resource Management 3. 7 FUNCTIONS OF HR : Recruitment and selection Training and development Human resource planning Provision of contracts Provision of fair treatment Equal opportunities Assessing performance of employees Employee counselling sl/BMBE/2017 18
Business Management in the Built Environment 3. 8 Recruitment Unit 3 Pg 5 Recruitment is an HR function whereby the firm goes out into the marketplace to attract potential employees sl/BMBE/2017 19
Business Management in the Built Environment 3. 8. 1 Recruitment Planning The HR manager can help to develop personnel forecasting and budgeting techniques as well as supplying forecasts of staffing needs, labour availability wages budgets and so on (Fryer, 2004). In order to forecast the labour requirements the HR management should take into account the natural wastage of employees such as retirement and turnover. In addition to that, promoted employees create vacancies at lower levels sl/BMBE/2017 20
Business Management in the Built Environment Problems of forecasting manpower One of the main problems in forecasting is obtaining reliable information from other managers. The current state of the labour market can be unknown or various departments might have an ambiguous view of their labour requirements. Therefore an employment plan must remain flexible. Demand for construction is not consistent. Technical innovations might change production methods. However these difficulties do not invalidate the need for a recruitment plan. Even when the unemployment is high, finding certain types of skilled labour might be difficult. In such situations the planning must include provision for training the existing employees in order to meet needs. sl/BMBE/2017 21
Business Management in the Built Environment 3. 8. 3 Advertising and recruiting The title of the job, The title of the job holder’s manager, The job location, The purpose of the job, A description of the job content, A list of responsibilities, Details of the subordinates, Standards of performance expected, Working conditions, Prospects for career development. sl/BMBE/2017 22
Business Management in the Built Environment Recruiting Advertisement Pg 6 A job can be advertised externally or internally. Two typical approach and their implications are as follows; Hidden recruitment uses company’s internal people and it is not advertised to outside world. Most firms use hidden advertisement in order to fill the senior roles within the company. However, this may exclude able outsiders who might bring new ideas and enthusiasm to the business. It saves money from advertisements, Successful applicant will be familiar to management and the company culture, Such practice motivates other employees and inspires loyalty. sl/BMBE/2017 23
Business Management in the Built Environment Recruiting Advertisement A job advert should include a personnel specification of the ideal candidate. Various aspects of a typical personnel specifications list include the following; Physical make-up including strength, health and professional appearance (within the ethical and legal boundaries defining anti-discrimination norms), Skills and abilities, Educational attainments, General intelligence such as ability to think analytically or capacity for difficult mental work, Specialised aptitudes such as reliability, selfconfidence, and ability to work with others, Interests such as social, practical or intellectual sl/BMBE/2017 24 activities.
Business Management in the Built Environment The selection process may involve : Biographical information Interviews Selection tests and questions Group methods Work sample testing Refer to Unit 3 Pg 5 -6 sl/BMBE/2017 25
Business Management in the Built Environment New Employee Orientation New employee orientation effectively integrates the new employee into an organization and assists with retention, motivation, job satisfaction, and quickly enabling each individual to become contributing members of the work team. sl/BMBE/2017 26
Business Management in the Built Environment Remuneration and pay According to Levander (2001), people are paid more based on the following: a. Education and training required to undertake the duties, b. Experience required, c. Originality and creativity in the job (such as art and design roles), d. Complexity of the job, e. Responsibility for others, f. Mental and physical demands of the job, g. Difficulty of the conditions over which job is done. sl/BMBE/2017 27
Business Management in the Built Environment Employing vs. Subcontracting Unit 3 Pg 14 What are the advantages of employing vs subcontracting In the built environment projects? sl/BMBE/2017 28
Business Management in the Built Environment Exam questions on HR Senior management is considering outsourcing its structural design development division. No final decision has been made but the outcome is likely to affect 40 employees. Produce a detailed report explaining the implications of both outsourcing and retaining the function within the organisation. (20 marks) 1. 2. Large number of new local employees will need to be recruited mostly from local civil engineers, architects, surveyors and technicians. Produce a detailed report explaining good practice in the recruitment process. sl/BMBE/2017 29
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