Management theory and practice
WEEK 2 – MANAGEMENT THEORY:
Organisations exist so that groups of people working together can achieve more achievements which
the individuals in the organisation could produce when working separately. Co-operation could be
counterproductive if people in the organisation have different outcomes.
- Work involves a physical or mental effort/ activity to achieve a result.
- Physical work = lifting, shifting, building, and moving.
- Knowledge/ mental work = Thinking, expertise, and support.
Organisations:
Argyris (1960) stated that organisations as planned human endeavour (try hard) to achieve goals. The
study included 847 employees. Argyris talks about the hidden and informal tacit agreement between
foreman and workers.
- Common features of an organisation: Purpose, people, and structure.
Relationship organisations have to the built environment:
- Primary businesses/ organisation activities
- Schools for the future – education
- Health authority – improve health care.
- Extend factory – To produce more widgets due to increased demand.
Construction management in practice: Time management, cost management, quality management,
health and safety management, environmental management, waste management, risk management,
change management, procurement management, resource management, human/ skilled people
management, knowledge management and communication management.
Management definitions:
- To manage is to forecast and plan to organise, to command, to co-ordinate and to control -
Fayol (1916)
- Management is a social process the process consists of planning, control, coordination, and
motivation – Kontz and O’Donnell (1984)
- Management consists of organised activity, objectives, relationships among resources,
working through others and decisions – Cleland and King (1983)
- Management is how best to organise the efforts of individuals to achieve desired objectives
has been one of the world’s most important, difficult, and controversial problems – Likert
(1961)
Organisational behaviour:
Describes how people interact with one another inside of an organisation (business) which influences
how the organisation itself behaves and how well it performs.
Organisational behaviour is used to streamline efficiency, improve productivity, and spark innovation
to give firms a competitive advantage.
Objectives can be affected by the individual (compatibility between actor and organisation), group
(co-creation and collaboration), organisation (structure, processes, and systems) and environment
(operates within a broader environment).
Management history:
,Management theory and practice
Push factors to focus on organisational control – poor living conditions, starvation, low education, and
poor health care
Pull factors to focus on organisational control – housing, employment income, improved education,
and improved health care.
Management theory developed from practising managers, experience and efficiency regarding with
what works (trial and error) and social scientists and academics who reflect on studying people and
behaviour.
Management theory – A collection of ideas that recommend general rules for how to manage an
organisation or business. Management theories address how supervisors implement strategies to
accomplish organizational gaols and how they motivate employees to perform at their highest ability
Management categorisation is a conceptual framework which organises our thinking from classical,
human relationships, system and currently contingency.
Human relations/ social science management theory:
An approach to management based on the ideas that employees are motivated not only by financial
reward but also by a range of social factors for example praise and pride in ones work.
People desire to be part of a supportive team that facilitates development and growth. Employees
receive special attention and are encourages to participate, they perceive work as having significance
and are motivated to be more productive which results in high quality work.
- The human and social consideration of work: Recognition of informal organisations within
formal organisations. The challenge to classical theory is based on machines.
- Humanising the work environment is the wider social needs of people which includes group
values and norms.
Basics of the human relation management theory:
- Treating employees as if work is as natural as play or rest, just as motivation theory states.
- Sharing the big picture objectives toward which their work is aimed.
- Empowering them to innovate and make as many independent decisions as they can handle.
- Training and developing them, increasing freedom and responsibility as their capabilities
grow.
- Providing appropriate recognition and rewards when they achieve company goals.
Advantages of the human relations management theory:
- Gives more freedom to the worker as they can express their opinion more.
- Greater level of communication and teamwork – democratic workforce.
- Beneficial for all people in the organisation.
Disadvantages of the human relations management theory;
- Increases the responsibilities of the individual which causes stress.
- Sign of pressure
- More freedom means that all people have less control over the workers.
Classical management theory:
,Management theory and practice
This theory believes that employees are strongly motivated by physical needs and more specifically
monetary incentives.
This management theory was introduced during the industrial revolution to improve productivity
within factories and other businesses. It is less common today. It is a theory based on the belief that
workers only have a physical and emotional need. It doesn’t consider social need or job satisfaction
but advocated specialization of labour, centralized leadership and decision making and profit
maximization.
It’s based on:
- Scientific management to determine the most efficient way to do a job.
- Employees are selected to perform tasks based on their skills and specializations.
- Operations should be streamlined as much as possible.
- Decisions are made by a single person or by a select few authority figures.
- Productivity is the primary goal
- Increased profit is given priority.
Concepts if the management theory:
The centralized structure of leadership (3 levels):
- 1st – includes business owners/ or executives of the company. Individuals are given the
highest level of authority and set the long-term goals of an organization.
- 2nd – includes middle management. Individuals considered to be middle management oversee
managers and setting department level goals.
- 3rd – Supervisors or managers who oversee the day-to-day operations of the business.
Labour specialization:
Breaking down large tasks/ projects into smaller tasks that are assigned to employees. Workers are
responsible for only 1 specific task to prevent multitasking and increase productivity.
Wage incentives:
Places emphasis on physical needs rather than job satisfaction or social needs. Physical needs can be
met through income and monetary incentives and uses the opportunity for wage increases to motivate
employees.
Advantages of the classical management theory:
- Clear organizational hierarchy – Provides clear responsibilities and objectives for each
member of management and reduces any confusion as to what a particular manager should
focus on.
- Easy to understand division of labour – Establish clear divisions of labour that outline the
expectations and duties of each employee. Tasks are easier to understand, and employees are
given specific projects to complete that fall within their abilities and specializations. So,
productivity increases = avoid multitasking to fulfil duties.
- Increased productivity through monetary rewards – employees are motivated through
monetary incentives as it increases the employees feelings of appreciation through recognition
of there accomplishments.
- Single leader decision makers – Single/ few leaders make decisions on behalf of the company.
Businesses make decisions at the highest level and then communicate this down the ladder of
management. This is beneficial for businesses who need to make decisions quickly or for
smaller businesses who rely on a single leader.
Disadvantages of the classical management theory:
- Limited emphasis on employee job satisfaction and human relations – CMT mainly focuses
on the physical needs and tend to overlook social needs which is vital for individuals overall
job satisfaction.
- Increased pressure on employees – Concerned with employees’ productivity and output.
Employees can feel pressure to complete tasks in a certain period which may cause stress and
discouragement.
- Restricts the implementation of new ideas and concepts – Based on one right way to complete
tasks for maximum production this cause a limited ability for the organization to grow.
Employees may feel restricted in their ability to express their ideas and unique value.
, Management theory and practice
Systems management theory:
Businesses consist of multiple components that work together so that larger functions optimally.
Businesses consist of multiple components that work in harmony so that larger systems can function
optimally.
They view organisations as an open social system who interacts with their environments to survive.
- An organisation is a system of related activities – the interaction of input and outputs.
- A whole collection of parts that interact.
- Open systems – Interacts with its environment and adapts to the situation.
- Closed systems – do not interact with the environment.
Socio-technical systems are the creation of a system that enables interaction between people and
machines. This links to social and technology approach.
A construction process is a socio-technical system.
Contingency management theory;
An organizational theory claims that there is no best way to organize a corporation, lead a company or
make decisions so it depends on the internal and external environment.
Management effectiveness is contingent or dependent upon the interplay between the application of
management behaviours and specific situations. The way you manage should change depending on
the circumstances.
It is concerned with structure but there is not one single solution.
- Relate structures to tasks and circumstances.
- Universities are moving from a bureaucratic to contingency approach.
- Situation management – appropriate/ pragmatic leadership approach.
Modern service management:
Gronroos (1993) considers service as the organisational imperative.
- Consider value to customer
- Determine how organisations can deliver.
- Consequently, how it should be managed
- Ensure organisations function to achieve utility.
WEEK 19 – LEADERSHIP AND GROUP BEHAVIOUR:
Leadership: The ability of an individual or a group of individuals to influence and guide followers or
other members of an organization.
