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CHAPTER 1

THE FIELD OF MANAGEMENT

1.1. About Management and Managers.


Each of us is managed or manage - at work, in school and in other organi zations to which we belong. We cannot escape being given instructions, counsel and assignments. We also cannot avoid making decisions, being evaluated by those to whom we report, setting objectives and making plans to achieve the proposed objectives. Therefore, management is specific to any organization, regardless its nature and size. rganizations e!ist because most of the times no one individual can suc cessfully cope with all the various demands for skills, e!perience, knowledge and ability that are re"uired to accomplish the organizations# goals. $ence, an organization results from a combination of people who have common goals and work within the boundaries of their particular skills and e!pertise. The process of breaking down the work to be carried out into smaller tasks, then to be carried out by groups of individuals or by individuals who have specialist skills and knowledge is known as the di ision o! "abour . This is one of the three basic features of any organization. The other two are that every organization cannot e!ist without having set goa"s and various degrees of aut#orit$. There are hundreds of different kinds of organizations - some of them seek profit, some do not, but they all seek to attain goals of some kind and therefore need management. %anagement is as old as civilization, but the formal study of it is recent. &t the beginning it started as an art, in that it was not structured as a formal body of knowledge and principles. Those who were rulers or leaders of some kind relied themselves mostly on their e!perience, common-sense and traditions. The early days of management as a subject of study were related to the 'ndustrial (evolution )*+,- *.,-/. 'n the first stage, attention was paid to improving the methods necessary for an increase in production of goods by the use of mechanical power. 0uring the *..-#s in 1.2.&., 3re derick Winslow Taylor )*.,4 - *5*,/ - the 63ather of the 2cientific %anagement6 - commenced his researches to find better ways to manage. $e was dissatisfied of the lack of standards for worker performance, une"ual distribution of work loads and decision making based on hunch and in tuition as opposed to facts and logic. ne of his main preoccupation was to create a mental revolution among both workers and managers in industry, believing that scientific analysis of work should be undertaken by managers. 'n *5** he published first version of his book 62cientific %an agement6. $e stressed the need for division of labour and spent a considerable amount of effort on the elaboration of what today is known as 6Work 2tudy6 )the study and improvement of the methods of work, motion study/. $e also advocated for precise job specification and responsibilities, using of planning schedules and other aids to the industrial management. 3or that period, the application of Taylor#s contributions to management was very precious. 1sing Taylor#s ideas, $enry 3ord in *5*7 introduced the assembly line and reduced car assembly time from +8. hours to 59 minutes. 'n si! years 3ord#s market share went from *-: to almost ,-:. ther important figures of the management recent history are; $enry <antt, $enry 3ayol, %a! Weber, &braham %aslow, 0ouglas %c<regor, $enry %intzberg, =eter 0rucker and others. 3rom those early beginnings, the techni"ues of management have tended to find their support and application in the field of manufacturing industry rather than in construction. %anagement comes from the verb 6to manage6, which can be defined as; to conduct, to administer, to handle, to supervise, to be a head of. 't follows that any manager is the head of a group of individuals who perform a function. Thus a site manager for e!ample conducts, controls, administers and is the head

of a construction team on site. 'f he is to do this effectively and efficiently, he will re"uire a suitable "ualified team to provide back-up services in both administrative and technical fields. n the other hand he or she must perform various but interrelated functions. 'n this respect, management %an be de!ined as t#e &ro%ess o! a%#ie ing an organi'ation(s goa"s as e!!i%ient"$ as &ossib"e) t#roug# t#e %oordi * nated &er!orman%e o! !i e s&e%i!i% !un%tions+ &"anning) organi'ing) sta!!ing) dire%ting and %ontro""ing. )Fig.1.1/

P"

C
0ecision %aking D
2 ,

Fig. 1. 1 Management &ro%ess

& manager manages by carrying out or by motivating someone else to carry out a series of tasks. The accomplishment of each task will necessitate making decisions as well as taking actions. Each decision re"uires the solution of a problem. %anagement problems, like technical problems can only be solved if logically and scientifically approach. >ecause of its importance, management is regarded as a factor of produc tion with land, labour and capital. 'ts role is to make efficient the 6transformation process6 of an organization. ) Fig.1.,./
EN-IRONMENT

INP.T @ Aabour @ %aterials @ %oney @ %achines @ 'nformation

ORGANI/ATION @ Transformation process @ %anagement 3eed back )by control/

O.TP.T @ Bonstructed facility or services

Fig. 1. , T#e management o! an organi'ation as a %$berneti% o&en s$stem.

'n the conte!t of the systems approach, an organization may be seen as an %$berneti% o&en s$stem A s$stem is an interrelated set of elements functioning as a whole wherein a change in one part necessarily has an effect on the others. (ii) An o&en s$stem is one in which the system has free interaction with the environment within it e!ists. 't must also be capable of maintaining its stability to act through out, regardless of any changes that may take place in the environment. The environment consists of all those influences that can act on an organization; legal re"uirements, technological constraints, educational limitation, skill of labour force, political structure, climatic factors, ground conditions, rate of inflation etc. (iii) &s a conse"uence of management influence on the transformation process, an organization become a %$berneti% o&en s$stem . That means that it can adjust its performance - because of feedback - in order to cope with the environment influences and?or influences from within the organization itself. The construction process, carried out by a construction firm )contracting firm/, accepts its input of human resources, materials, plant, money and information from the environment and transforms them into a constructed facility; a construction work, a part of a construction or the construction as a whole. (i)

The mobile of the process is the reword )usually money/ that should be received to compensate the members of the organization for their effort as well as to pay for the other resources used )cost/. & surplus is re"uired too, to ensure the continued e!istence and developing of the organization )profit/. Ciewing organizations in the conte!t of the systems approach has the important attribute of stressing the dependence of the organization with its related human, technical and financial resources, on its ability to provide a desired service in order to satisfy an established demand. &nother meaning of the term of management is 4t#e &eo&"e in o" ed in t#e running o! an organi'ation4. T#e &eo&"e 5#ose 6ob is to &er!orm t#e !i e !un%tions t#at a%#ie e goa"s are managers . The job titles for managers depend on the organization and on the manager#s organizational level. 'n most organizations we find three distinct levels of management; top )senior/, middle and first )operational/. )Fig.1.2./
Type of organization Educational Top %iddle 3irst )operational/ peratives (ector 0ean Cice - dean %ilitary <eneral %ajor Aieutenant Bonstruction 0irector &gent 2ite

manager
3aculty staff 2oldiers Workers

Fig. 1. 2 Manageria" 6ob tit"es

%anagement is both art and s%ien%e. <ood engineering management is an art, in that a good manager achieves its objectives by stimulating the creating effort of a group of peopleD but it is an art backed by s%ienti!i% &rin%i&"es . Bonse"uently management can be taught, although some inborn "ualities basic to sound leadership are essential to the development of a successful engineer-manager. >ut above all, a good engineer-manager must first be a good engineer. 3%ienti!i% management can be defined as the use of codified and verified knowledge in the management of any organized activity. 't has for its basis a rational or systematic approach as follows; 't relies upon the premise that problems can not be solved properly if assumptions are not made about any of the relevant factors. The problem situation must first be studied rigorously and factors lending themselves to "uantitative evaluation must be measured before analysis takes place. 't is based upon prescribing sets of thoughtfully designed and relevant procedures, together with the necessary control functions. 't re"uires the study and analysis of all operations in order to make them as efficient as possible. This implies that they will be designed to achieve objectives at the optimum cost and duration, in time and with the appropriate "uality. 2cientific management is analytical, rational and "uantifiable. 't relies on techni"ues and methods having a mathematical basis which assist the decision- marking process. This collection of tools )techni"ues and methods/ form the %anagement 2cience or alternatively named perational (esearch. perational (esearch can be used to deal effectively with problems such as; programming and scheduling, inventory control, "ueuing etc., but it founds relatively little application in the behavioral aspects of management. 'n these cases the artistic approach to management could be more appropriate. Artisti% Management is the conscientious use of skill and creative imagination in planning and e!ecuting the goals of an organization. 't is subjective and behavioral, usually backed up by knowledge and skills provided by psychology, sociology and other behavioral sciences.

)adapted from ?94?/

1. ,. T#e Fun%tions o! Management.


>ecause of the interrelationships among the various functions, manage ment is usually viewed as a process, or a logical and comple! flow of activities. To be aware of the content and implications of each of the management sub-domains )divisions/, the functions of management will be presented; P"anning. =lanning is the starting point of management. To plan means to set goals or objectives for the organization and then to develop practical policies )plans, programs, budgets etc./ for the attainment of the objectives. =lanning involves making decisions that will be implemented later. The objectives determination re"uires reliable forecasting since all future events and management decisions will be related to these objectives. Thus forecasting and the formulation of objectives should be responsibility of top level management, for only here can the basic information concerning the enterprise be properly related. &lthough planning begins at the top level of the organization, there are many levels of planning. Each plan should be carefully prepared in accordance with the managerial level and with the determination of the best practical course to reach specific objectives, after a balanced considera tion of the many relevant factors. To achieve their objectives, managers must formulate various kinds of plans. There are many directions for planning within a construction organization, according to the nature of the goals for whom are meant for; 0evelopingD &c"uisition of a capital investmentD 'ncreasing the company#s share of marketD E!ecution of a construction project. f all of these, the last one will be the main subject for the future discussions. Organi'ing To organize means to put in a state of order, that is to arrange or consti tute into a coherent unity in which each part relies to each other part. rganizing involves three steps; E!amine what must be done. 'n this case organizing overlaps with planning. <roup similar tasks. <rouping similar activities means establishing branches, departments units, work centers or even identifying trades to be employed to carry out the works. This is in fact the application of the division of work. 3urther more organizing is responsible with crea tion of the interrelation system between the parties. The works are then assigned to managers and operative personnel. (iii) &ssign resources. 'n order to be able to perform the assigned tasks, a manager or operative needs a proper lever of authority backed up by proper resources. rganizing is an important function since a great waste in an organization results from the way the work is organized; too many or too few people perform work. The division of work creates the organizational structure of the enterprise and of the works to be carried out. Thus, the two main aspects to be organized in an enterprise are the organization itself and the works under specified projects and contracts to be carried out by the company. 3ta!!ing 'n management, by staff we mean the personnel assigned to carry out a given task. The function of staffing is responsible with the provision of people to fill the positions created by the organizing function and then with training, evaluating and compensating people so that the work will be performed according to established standards and desired goals. (i) (ii)

Dire%ting 'n performing the function if directing, managers should try to motivate people to perform activities in the most efficient manner possible, to lead people toward goal achievement and communicate information and instructions clearly and effectively. %otivation involves discovering the inner forces )motives/ that moves a person to behave in a certain way and then choosing or establishing proper factors and means to motivate people to undertake desired tasks and actions. E!amples of motivation factors are; salary?wage or other fi nancial rewards, good working conditions, opportunity for advancement in career, independence of action, job security, recognition and status etc. %otivation is difficult because it is subjective, in that people#s wants dif fer and change as time passes, peoples attitudes and behavior are influenced by their culture and by the non work environment where management has no influence. Aeadership is considered the art of inspiring subordinates to perform their duties willingly and competently. & leader is one who, by e!ample and talent, plays a directioning role and wields commending influence over others. Bonfidence in and loyalty to a leader re"uire the conviction that his de cisions are soundly based. & person may be appointed had of on organization )manager/, but this does not make him automatically a leader. & true leader is a person recognized by a group because his behavior con forms to the group idea of leadership; they have confidence in him and trust his judgment. Thus leadership is not only a function of the person but also a function of the nature and size of the organization, the nature of the subordinates and of the situation )nature of task/. Types of leadership vary from the autocratic to the democratic. With the former, there is no consideration with subordinates before a decision is taken, whereas with the latter the problem will be discussed fully prior to a determination and the subordinates will be engaged in the decision- making process as a mean of self- motivation. 't is important to recognize the difference in the type of leaders, because the successful autocrat on smaller projects may fail on a larger job unless he can appreciate the necessity for a change in his own approach to leadership. Contro""ing The goal of controlling is to ensure that the work is performed as planned to achieve the objectives of the organization. & manager does this by constant review of the working plan, so as to check on actual achievements, to discover and rectify deviations, and to verify or adjust his predictions. 'f something goes wrong, the manager must determine firstly the cause which generated the fault, and then to bring about corrective action. Thus, the essential three steps of the control function are; (i) (ii) (iii) setting standards for work performedD monitoring the work and measuring performance against the standardsD taking corrective action for inade"uate performance when it occurs. Bontrolling is the function which provides feed-back for the management process. 3inally we can now conclude that Management is an indi idua" s%ien%e in t#at it #as its o5n !ie"d o! stud$ 7organi'ations 5it# t#eir te%#ni%a") e%onomi%a" and #uman re"ations &rob"ems8) its o5n organi'ed bod$ o! 9no5"edge and &rin%i&"es and its o5n &a%9age o! too"s &ro ided b$ bot# :e#a iora" 3%ien%es and b$ O&eration Resear%#. As an$ ot#er s%ien%e) Management uses s&e%i!i% mode"s to stud$ and a&&ro;imate t#e 4rea"* "i!e4 7e;+ net5or9s) "ine o! ba"an%e) %ost mode"s et%. 8 and s&e%i!i% units o! measure to <uanti!$ t#e !a%ts 7e;+ &rodu% tion rate) man #ours) rate o! &rogress) o&timum gang si'e et%. 8.

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