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D 39 BU – Business Management in the Built Environment Introduction and outline of module Dr. Turker Bayrak
Relevance • Your first group discussion: – Is this relevant to your profession? – Is this relevant to your degree? – Is this relevant to you? – What do you want from this course?
Relevance of strategic management • Professional bodies view this as fundamental to the success of their members education (you) and their own success – the bodies themselves are an organisation! • Your profession requires you to understand display a good knowledge of strategy. They argue that your success and theirs is dependent on such knowledge. • The success of your professions strategy is rooted in its members holding strategic management positions within organisations and in its members ability to think.
Relevance of strategic management • You will all have to exercise your technical skills within the activities of an organisation but your success is also dependent on you understanding the ‘game’’. It’s not always as simple as you may think. • Organisations want strategic thinkers who understand the challenges organisations face and can develop and implement solutions. • Your accredited degree is therefore based on the premise that you are developed into strategic thinkers who can grasp and understand the complexity of strategy formulation and implementation.
Relevance of strategic management • HWU SBE is not here to provide graduates with only technical skills, we want to provide high quality professionals who are capable of independent thought, taking the initiative, debating and communicating complex ideas. • By doing the above, we are responsible for developing the disciplines and the professionals as well as industry. • Remember we are a HE institute and you will leave here with an honours degree that represents HWU
Relevance of strategic management • Engaging with this course is therefore fundamental to developing you as a fully rounded professional. • The course will also provide you with a platform to understand the complexities of the organisational world and most importantly, strategy. • The course will also challenge you to think in a very different way from the dominant paradigm used in your technical education. • An understanding of and an ability to engage with and develop strategic management qualities sets you out for promotion. It makes a huge difference to your future
Things I hope you want. . . • • To learn To be treated as motivated learners To be challenged intellectually An interesting time on Friday mornings To be told what is in the exam Me to avoid providing simple recipe’s To walk into the exam not worrying about what the questions might be • To pass the exam well
Other things you should develop • To be an independent learner by having the freedom to explore academic material • An ability to find, deconstruct and interpret material to aid understanding • Freedom to think and express your views • A healthy dose of cynicism • Presentation and communication skills
All this requires a different approach A shift to a dominantly activity based style of teaching I want to improve me, my teaching and you I’m here to facilitate your learning not talk at you for hours on end
Groups – 5 minutes to discuss If contact time is 20+ hours then how much more effort is required to pass this professionally accredited course? Who is best placed to influence learning and outcome of the course? How is this non-contact effort to be spent?
Course effort • For a 15 credit course 150 hours of sweat and toil required (focused) – Required by HE – Accredited by the professional bodies • Generally speaking, little of worth is easily acquired • 20 -22 hours contact time • 130 hours Research, reading and writing • May be more for some. . . • Who is best placed to influence the outcome? • 4 courses effort in 15 weeks = 15 working weeks
Aims of this module • Broadly introduce Business management (planning in a sense) issues (with a capital B) • To explore the strategic arena in which the BIG decisions are made • To introduce strategic management theories • To provoke you into thinking more broadly and strategically about your industry and its relation to the strategic management literature • To explore briefly the changes and challenges that MAY face your industry • To further develop your academic knowledge and research skills • To develop your professional knowledge of organisations
Principles of management 1. Management theory 2. Management of human resources 3. Importance of effective communications
Application of management techniques 1. Organisation 2. Principles of organisation structure
Management is not new …. . although theory might be. Consider: • The building of the pyramids • The building of the Great Wall of China All these had to be managed somehow
Class Activity Think about how they managed a pyramid construction perhaps up to 5000 years ago. Discuss in your group and report; 1. Critically apprise how efficient it was? Since the pyramids are still up there, and considered to be world wonders, did we need to change our management styles at all? 2. Report if the management methods they used in pyramids so different from medieval cathedral constructions, since these cathedrals were constructed up to 4500 years after the pyramids? Were there any similarities? 3. Did something happen recently and we changed our management methods now? What is it we do differently if any?
Who is a Manager? The person responsible for coordinating the use of an organisation’s resources to meet its goals
Management is (1) All the employees within an organisation whose job is to control other people and resources, given the objectives of the organisation It might be stated that: “The management had a meeting this morning”
Management is (2) The process which has to be done to make something happen It might be stated that: “The management of this course takes a lot of effort”
Management is (3) A specific area of knowledge in which the work of managers and organisations is studied It might be stated that: “We will be taking an examination in management in January”
Definitions for Management: “The process of planning, organising, leading and controlling the efforts of organisation members and of using all organisational resources to achieve stated goals. ” (Mescon, Albert, and Khedouri 1985) “Getting things done by other people. ” (Follet 1941) “The process of optimising human, material and financial contributions for the achievement of organisational goals” (Pearce and Robinson 1989)
Management as Optimisation Management is making the best possible use of resources, for example People Land Equipment Money Space Time …. . in order to achieve understood and discussed objectives
Origins of Management can be seen as a twentieth century phenomenon, because of the changes that happened since the middle of nineteenth century. • The need for large organisations • The entrepreneurship and economic growth that is associated with the development of western capitalism, • Development of the division of labour and specialisation of function, • The factory system of manufacture, and associated technological developments, • The growth of mass national and international markets, • The supply, trading and distribution arrangements which fuelled this growth.
What is management? • Efficiency – getting the most output from the least amount of inputs • Effectiveness – completing activities so that organizational goals are attained
G. Jones, J. M. George (2003)
Management Functions Planning - defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities Organising - determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are made Leading - directing and motivating all involved parties and dealing with employee behaviour issues Controlling - monitoring activities to ensure that they are going as planned
Management Roles • Interpersonal - involve people and duties that are ceremonial and symbolic in nature • Informational - receiving, collecting, and disseminating information • Decisional - revolve around making choices • The emphasis that managers give to the various roles seems to change with time
Management Skills • Write down three most important skills you would expect your manager to have; 1. _________________ 2. _________________ 3. _________________ 4. _________________ 5. _________________ 6. …. .
Management Skills • Technical - knowledge of and proficiency in a certain specialized field • Human - ability to work well with other people both individually and in a group • Conceptual - ability to think and to conceptualize about abstract and complex situations – see the organization as a whole – understand the relationships among subunits
Management Principles Henri Fayol developed some basic functions for management very early: • Forecasting & planning • Organisation • Commanding or directing • Controlling • Co-ordination In addition to that we will study another management function • Motivation
Forecasting & Planning Forecasting = looking into the future • Financial forecasting • Company annual turnover • Company cash flow • Individual project cash flow • Construction workload forecast & workload estimating • Resource forecasts • Staffing & key labour • Sub-contractor resource
Forecasting & Planning = making of decisions based on these forecasts • Strategic planning • Business planning • Long & Short-term planning Planning first involves consideration of the objectives of the business: • Profit • Growth
Organisation = grouping of work & allocation of duties, responsibilities/ authority: • Organisation structure of company/ departments/ projects • Defining roles & responsibilities • Provision of job description Most times, businesses are divided into sections: • Function • Product • Location
Controlling Control = continuous checking of performance with the plan & taking corrective action. Example: • Establishing budgetary control procedures within the organisation • Control of cash flow • Control of project cost • Control of project quality
Co-ordination • Co-ordination = unification of effort between the company’s personnel to ensure that the declared policies are fully implemented. • This is necessary to ensure smooth running of the business.
Motivation In your opinion please identify what motivates people? Hygiene Factors • Pay and conditions • Job security • Quality of supervision and management • Status • Quality of interpersonal relations • Company policy and administration Motivating Factors • The nature of work carried out by individual • The level of personal responsibility involved • Personal achievement • Recognition by peers and super-ordinates • Personal growth and empowerment
Commanding or directing • Commanding = giving of instruction to ensure that the agreed policies are carried out • Involves the granting of authority before commands can be issued.
Communication = three way transfer of information between client, contractor and staff. Kindly give examples of modern communication systems? E-mail, fax, etc Why do we need some of these? For efficiency – less paperwork, more profit, durability of information, etc
Leadership Styles What is leadership style? Autocratic One who commands Expects everyone to comply Dogmatic – arrogant assertive Positive – clear cut, decisive Often rules by threat or reward Democratic Manages by consultation with subordinates Encourages participation Develops a team approach Sees the good in people around him