Principles of Management: Key Definitions

Principles of Management (WEEK 1)

• Mary Parker Follet defined management as "the art of getting things done through people."
• Harold Koontz defined management as "the art of getting things done through and with people in formally organized groups."
• Lawrence A. Appley defined management as "the accomplishment of results through the efforts of other people."
• Stephen P. Robbins defined management as "the process of getting things done effectively and efficiently with and through other people."
• Terry & McFarland defined management as planning, organizing, actuating, and controlling to achieve objectives via people and resources.
• Sisk defined management as the coordination of all resources through planning, organizing, directing, and controlling to achieve stated objectives.
• Key characteristics of management are group endeavors, continuous processes, effectiveness and efficiency, and goal orientation.
• Management in the construction industry aims to efficiently and effectively complete projects within specified time and cost constraints.
• Construction management includes managing human resources, equipment, materials, cash flow, and schedules.
• Adam Smith's "The Wealth of Nations" (1776) introduced division of labor, job specialization, and productivity.
• The Industrial Revolution emphasized machine power, mass production, and efficiency.

Schools of Management Thought

• Classical Approaches include Scientific Management, General Administrative Theory, and Bureaucracy.
• Scientific Management (Frederick W. Taylor) focused on work standards, efficiency, and productivity, advocating for the "one best way" and economic incentives.
• General Administrative Theory (Henri Fayol) identified five management functions: Planning, Organizing, Commanding, Coordinating, Controlling.
• Fayol proposed 14 Principles of Management, including division of work, unity of command, and scalar chain.
• Bureaucracy (Max Weber) emphasized division of labor, hierarchy, formal rules, and selecting managers based on technical qualifications.
• Behavioral Approaches include Human Relations and Industrial Psychology.
• Human Relations (Mary Parker Follett) focused on workplace relationships, teamwork, decentralized decision-making, and employee participation.
• Industrial Psychology (Hugo Munsterberg) applied psychological principles to improve workplace productivity and employee satisfaction.
• Robert Owen was a Human Resource Pioneer who advocated for better treatment of workers and improved labor conditions.
• Quantitative Approaches include Management Science and Total Quality Management.
• Management Science uses mathematical and statistical techniques for decision-making, like Linear Programming and Six Sigma.
• Total Quality Management (W. Edwards Deming) focuses on continuous quality improvement using statistical methods and the PDCA Cycle.
• Joseph M. Juran's Quality Trilogy emphasized quality planning, control, and improvement.
• Contemporary Approaches include General Systems Theory and Contingency Theory.
• General Systems Theory (Ludwig von Bertalanffy) views organizations as interconnected systems, distinguishing between closed and open systems.
• Contingency Theory (Fred Fiedler) suggests that there is no "one best way" to manage; management depends on situational factors.

Malaysian Construction Industry Outlook

• Market Analysis involves sector classification, growth rate, trends, and profitability.
• Stakeholder Analysis includes suppliers, customers, employees, investors, and competitors.
• Industry Analysis involves life cycle, trends, and PESTEL impact (Political, Economic, Social, Technological, Environmental, Legal).

Managerial Roles and Functions (WEEK 2)

• Management functions include planning, organizing, leading, and controlling.
• Planning sets organizational goals and determines how to achieve them, involving strategic, tactical, and operational planning.
• Organizing structures tasks, roles, and resources, creating SOPs and timelines.
• Leading motivates, directs, and supervises employees, involving communication, conflict resolution, and team building.
• Controlling monitors progress, ensures goals are met, and involves corrective actions.

Managerial Roles (Henry Mintzberg)

• Interpersonal roles include figurehead, leader, and liaison.
• The figurehead is a symbolic head performing ceremonial duties.
• The leader motivates and directs employees.
• The liaison maintains relationships with external stakeholders.
• Informational roles include monitor, disseminator, and spokesperson.
• The monitor collects information from internal and external sources.
• The disseminator shares information within the organization.
• The spokesperson communicates information to external parties.
• Decisional roles include entrepreneur, disturbance handler, resource allocator, and negotiator.
• The entrepreneur initiates change and innovation.
• The disturbance handler resolves conflicts and crises.
• The resource allocator distributes resources.
• The negotiator represents the organization in negotiations.

Managerial Skills

• Technical skills involve knowledge of specific tasks and processes.
• Human skills involve the ability to work well with others.
• Conceptual skills involve the ability to think creatively and strategically.
• Motivation skills involve the ability to inspire and lead others.

Managerial Duties, Responsibilities, and Accountabilities

• Managerial duties involve formulating strategies, executing plans, setting policies, and controlling performance.
• Managerial responsibilities are task-oriented and character-oriented.
• Managerial accountabilities involve taking ownership of results and implementing corrective actions.

Organization Structure (WEEK 3 & 4)

• Organizations are systematic groups of individuals working towards common goals, with a distinct purpose, hierarchy, and coordination.
• Organizations interact with society as social institutions.
• Key organizational characteristics include common goals, division of work, hierarchy, and coordination.
• Organizational Design involves structuring and managing organizations to improve performance.
• Organizational Behavior studies how individuals and groups interact within an organization.
• Levels of Organizational Behavior are individual, group, and organizational.
• Factors affecting organizational design include size, life cycle, strategy, environment, mission, and technology.
• Aligning individual and organizational goals is important.
• Organizational structure outlines task allocation, coordination, supervision, reporting relationships, and communication channels.

Key Components of Organizational Structure

• Hierarchy refers to levels of authority.
• Division of work involves tasks divided based on specialization.
• Span of control is the number of subordinates a manager can supervise.
• Centralization concentrates decision-making at the top, while decentralization distributes it across levels.
• Departmentalization groups jobs by function, product, geography, or customer.
• Formalization is the degree of standardization in rules and procedures.

Types of Organizational Structures

• Functional structure groups employees by specialization.
• Divisional structure creates self-contained units based on product, region, or customer.
• Matrix structure has employees reporting to both functional and project managers.
• Team-based structure is composed of cross-functional teams.
• Network structure relies on external partnerships.

Advantages and Disadvantages of Different Structures

• Functional structures lead to efficiency but can create silos.
• Divisional structures focus on specific products or regions but can lead to duplication.
• Matrix structures provide flexibility and resource sharing but can cause role confusion.
• Team-based structures promote collaboration but may lack clear hierarchy.
• Network structures leverage external expertise but can be difficult to control.

Key Takeaways

• Core management functions are planning, organizing, leading, and controlling.
• Mintzberg’s managerial roles are interpersonal, informational, and decisional.
• Types of organizational structures include functional, divisional, matrix, team-based, and network.
• Organizational design and behavior impact efficiency, communication, and goal achievement.
• Different organizational structures have advantages and disadvantages.
• Review the historical evolution of management and different schools of thought.