SYSTEM AND CONTINGENCY 1222020 AHAB252SYSTEM CONTINGENCY 1 GENERAL

SYSTEM AND CONTINGENCY 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 1

GENERAL SYSTEM THEORY “A system is defined as an organised. unitary whole composed of two or more interdependent parts, components, or subsystems and delineated by identifiable boundaries from its environmental suprasystem. ” - (Kast + Rosenweig, pg. 103) 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 2

“Basically any group of entities which are functionally interdependent can be called a system. ” Any group of entities which are interrelated so as to perform some functions, or reach some goals, can be seen to be acting as a system”. - (Open Universal, 24) 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 3

SYSTEM APPROACH General System Theory - Ludwig von Bertalanffy. The theory of Open System in Physics and Biology – Science JAN. 13, 1950, PP. 23 – 29. 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 4

Biological System Electrical System Mechanical System Human System. Skeleton subsystem Nerves subsystem Blood circulation subsystem Muscular subsystem Social System Social Organisation Business Organisation 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 5

ENVIRONMENT GOALS & VALUES TECHNICAL MANAGEMEN T STRUCTUR E PSYCHOSOCIAL ENVIRONMENT 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY ORGANISATION AS A SYSTEM 6

Environmental Systems Goals & Values Psychosocial The Organisational System 12/2/2020 Managerial Subsystems Technical Structural AHAB/252/SYSTEM & CONTINGENCY 7

Goals & Values v v v Culture philosophy overall goals group goals individual goals Psychosocial v v v 12/2/2020 Human source Motivation Group dynamic Leadership Communications Interpersonal relations AHAB/252/SYSTEM & CONTINGENCY 8

Structural v v v Task Work flow Work group Authority Information flow procedure and rules Technical v v Knowledge Techniques Facilities Equipment Managerial Subsystems v Goal setting v Planning v Organising 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 9

THE MODERN VIEW: SYSTEMS AND CONTINGENCY CONCEPTS Subsystems or Components. Holism, Synergism, Organicism, and Gestalt Open Systems View Input-Transformation-Output Model System Boundaries Negative Entropy Steady State, Dynamic Equilibrium and Homeostasis Feedback Hierarchy Internal Elaboration Multiple Goal Seeking Equifinality of Open Systems 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 10

ORGANISATION AS AN OPEN SYSTEM Dynamic Stability Input Ø Ø Materials Money Effort Others. 12/2/2020 Organisasi Transform resources and add value TRANSFORM Output Ø Ø Ø Products Services Goods Satisfaction Growth & survival Organisasi Sebagai Sistem Penukaran (Organisation as Transformation System) AHAB/252/SYSTEM & CONTINGENCY 11

KONTINGENCY VIEW ON ORGANISATION The contingency view seek to understand the interrelationship within and among subsystem as well as between organisation and its environment and to define patterns of relationship or configurations of variables. Multivariate nature organisation How organisation operates under varying conditions and specific circumstances. Suggested organisation design managerial action most appropriate. 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY and 12

APPROPRIATE PATTERN OF RELATIONSHIPS v STABLE – MECHANISTIC ORGANISATION When: 1. 2. 3. 4. 5. Stable environment Well defined goals and enduring goals. Uniform and stable technology. Routine activities and productivity is a major objective. Decision making is programmable, coordination and control are tightly structured. v ADAPTIVE ORGANIC ORGANISATION When: 1. 2. 3. 4. 5. Unstable and uncertain environment Goals are diverse and changing. Technology is complex and dynamic Non- routine activities – need creativity and innovation. Heuristic decision making. 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 13

CONTIGENCY VIEW OF MANAGEMENT Contigency views recognise both similarities and differences among organisation. Primary managerial role is to seek congrerence between organisation and its environment and among its subsystems. - 12/2/2020 Facilitate thorough understanding of complex situation and appropriate managerial action. AHAB/252/SYSTEM & CONTINGENCY 14

OPEN & CLOSE SYSTEM & ENVIRONMENT Environment Close System Stable, Predictable Tight Control Loose, Flexible Unstable, Uncertain 12/2/2020 Open system AHAB/252/SYSTEM & CONTINGENCY 15

CONCLUSION System concepts are diverted toward providing a broad model for understanding all organisations. Contingency views recognise that the environment and internal subsystems of each organisation are unique and provide a basis for designing and managing specific organisations. 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 16

IN CONSTRUCTION 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 17

INPUT – CONVERSION – OUTPUT MODEL MANPOWER MANAGEMENT FEEDBACK MATERIALS MANAGEMENT PLANT MANAGEMENT CONSTRUCTION PRODUCTION MANAGEMENT BUILDINGS REPUTATION FINANCIAL MANAGEMENT 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 18

2 ENVIRONMENTAL 3 STRATEGIC SYSTEM 2 MANPOWER MANAGEMENT 3 MATERIAL MANAGEMENT 4 PLANT MANAGEMENT 5 5 INFORMATION SYSTEM 7 MANAGEMENT SYSTEM 6 CONSTRUCTION PRODUCTION MANAGEMENT A systems model of the construction organisation 7 MARKETING FINANCIAL MANAGEMENT 4 ORGANISATIONAL SYSTEM 12/2/2020 6 SOCIAL SYSTEM AHAB/252/SYSTEM & CONTINGENCY SYSTEM 19

SYSTEM MODEL AND CONSTRUCTION ORGANISATION PRIMARY TASK To obtain and execute construction projects to the clients satisfaction whilst meeting stakeholders objectives. BOUNDARY 12/2/2020 - Definition is not easy - It is an abstract conception – not physical. - Must share the same goals of the system – what is inside. - Including staff directly employed - Assets owned by the firms. - Include building site – temporarily owned. AHAB/252/SYSTEM & CONTINGENCY 20

CONSTRUCTION ORGANISATION SYSTEM Strategic Subsystem q Perform the task of deciding and managing the L/term direction. q Receive inputs in form of Mkt. Intelligence, assessments of current capabilities. q Output – strategic, administrative and operating decisions. Structural Subsystem q Differemtiation in a rational way q Integration and coordination of activities. q Imput to C/P environmental and organisation characteristics, current utilities and stakeholders attitude. q Output – formal organisation structure and informal structure and complementary culture. 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 21

Social Subsystem Input – is people process of motivation group formation, leadership, communication , etc. Output – satisfied, committed and involved personnel. The Information Subsystem Strategic Administrative – coordinatif. Operational Output – primary decision dan action - motivating environment to facilitate the implementation of decisions. 12/2/2020 AHAB/252/SYSTEM & CONTINGENCY 22