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CONSTRUCTION METHODS AND PROJECT 2.3 THE STRUCTURAL ORGANIZATION MANAGEMENT Structural Organization LECTURE 2: CONSTRUCTION PROJECT - It is the formal arrangements that are ORGANIZATION...

CONSTRUCTION METHODS AND PROJECT 2.3 THE STRUCTURAL ORGANIZATION MANAGEMENT Structural Organization LECTURE 2: CONSTRUCTION PROJECT - It is the formal arrangements that are ORGANIZATION established to coordinate all activities in order 2.1 INTRODUCTION to implement a given strategy - Thus, structure reflects the anatomy of a film Management Team through its focus on mechanisms and processes - The driving force behind every organization that link both vertically and horizontally the various - Different teams operate in different ways parts of organization - There is no universal accurate management to Structural Elements of an Organization: define the one that is best - Just the concept that explains why some operations Men were managed successfully in the past to suggest Materials what can be done in for the future Machine Methods 2.2 WHAT IS AN ORGANIZATION? Money Organization 1. Men – These are the different members of the - Is a group of individuals who are cooperating organization starting from the very top of the last willingly and effectively for a common goal workman in the enterprise - It is nothing more than mechanism by which 2. Materials – Represents the materials necessary in administration directs, coordinates and the distribution of functions or in the attainment of its controls its business objectives - Are structured to promote better management. 3. Machine – The tools necessary in producing its However, it is the performance of the people who desired output fill the positions that determines the success of 4. Methods – The procedures and ways used in the the enterprise and not the organizational design course of its actions itself 5. Money – The financial resources of the organization The Major Elements of Organizational Structures: - a clear and complete definition of the objective must be known Distribution of Functions - any business concerned or any individual must Vertical and Horizontal Authority Relationships adhere to a definite purpose or aim Communication and Decision Processes 2. Analysis Policies - A sound business judgement attempts to build an organization through full knowledge of the 1. Distribution of Functions – The functions to be requirements of the business performed, the groupings of functions, and the vertical - There should be a study as to whether the project and horizontal task relationships among functions could be finished at the right time and at the right 2. Vertical and Horizontal Authority Relationships – price the client would be able to pay who are the authority to do what 3. Simplicity 3. Communication and Decision Process – The - The simplest organization that will serve to attain manner in which formal decisions are made and by the desired objective is considered the best whom 4. Functionalism 4. Policies – the decision, rules or guidelines - The organization should be built around the main established functions of the business and not around the individuals - A function is a normal or a characteristic way of 2.4 PRINCPLES OF GOOD ORGANIZATION doing a task that stands out distinctively by itself Principle Objective 5. Departmentalization Analysis - In an organization, the scoop of operation can be very broad, necessitating departmentalization to Simplicity achieve a smoother flow operation Functionalism - Departmentalization can be through function: Departmentalization o Functions Centralization of Authority and Responsibility o Products Limited Span of Control o Location o Projects by the Organization 1. Principle Objective 6. Centralization of Authority and responsibility 2.6 WHAT IS MANAGEMENT? - In every organization, there should be centralized Management is a process executive control or command authority Management is a function - This is necessary in order to have authority and responsibility definitely fixed 1. Management is a process 7. Limited Span of Control - It is the process of directing and facilitating the work - The number of subordinates an executive of people who are organized for a common purpose subordinates can manage effectively - It is the process of combining the efforts and resources of individuals with a common interest to achieve a desired objective 2.5 ORGANIZATION AND BUSINESS 2. Management is a function Business - It is a function of getting things done through the efforts of others - Had been defined as an organization of people with: - It is the application of authority and the assumption varied skills, which uses capital and talents to of responsibility produce goods, or services, which can be sold to - It is an art, the art of handling people. others of more than their cost, or it may be - Management properly applied, gives individuals in considered as; the system through which economic the same organization the feeling of security, of activity was organized by those who seek to make recognition, of opportunity and of belonging profit - To be effective, human activities have to be 2.7 MANAGEMENT CONCEPT coordinated. Efficient coordination requires much more than organizational framework Management to be effective must be systematic - At the top of the foundation is coordination Management to be successful must be scientific Management must be humanistic 2.8 MANAGEMENT STRUCTURES Effective Communication System - The primary objective of management structure is - An effective communication system is an important to facilitate the coordination and control over the element of executive control activities of the company - To the manager, information has four - In sizable organization, there should be delegation - purposes to serve: of responsibility because: o It must answer the questions what are we o It is physically impossible for one person to going to do? control effectively all the works of a large o How well are we doing? organization through personal contact with it o How can we do better? o No person possesses the skills necessary to o Does it serve as an aid to coordination? guide personally the highly specialized activities in a modern construction business 2.10 THE MANAGER Qualities of an Effective Manager: 2.9 MANAGEMENT CONTROL He studies, analyzes and dissects his job. Control He knows how to delegate the administrative - Control as a verb is defined by Webster's new details of his job. college dictionary as “to check or regulate... To He is willing to delegate to and share with his keep within limits.” subordinates the credit of a job well done. - Yet, managerial control carries with it a much He trains and develops his men to prepare them broader interpretation to apply: not only to check to assume delegated work. nor command, but also the whip. Not only to He knows how to control and plan his time. regulate, but also to stimulate He institutes controls for effective - To have effective control, the manager must know performance. by heart the reasons why his business or enterprise - exist. Thus, a manager must be a good planner and a good organizer 2.11 EXECUTIVE FUNCTIONS influences the work of others in choosing - Managers do not do the actual work of an and attaining particular ends. organization o Coordination. The process whereby an - His specific functions are: executive develops an orderly pattern of o to Plan group effort among the subordinates, and o to Direct secures unity of action in the pursuit of o to Organize common purpose. o to Control 4. Control - The process by which an executive gets the 1. Planning performance of his subordinates to correspond as - Is the job of making things happen that would closely as possible to chosen plans, orders, otherwise not occur. objectives, or policies - It is an intellectual process. Policies and Procedures - Plans may be classified as: o Objective of the enterprise - In planning, the critical task is the formulation of o Policies policies. o Procedures o Policies are general statements, which o Budget guide or channel the thinking and action of o Programs members of an organization 2. Organizing o Procedures are reflection of policy. It - A good organizational structure does not guarantee involves the selection of a course of action good performance, but a poor one makes good and applied to future activities performance impossible, either the caliber of the individual managers notwithstanding 2.12 EXECUTIVE LEADERSHIP 3. Directing - The bridge between objective and result - It is guiding and overseeing subordinates - As a leader, the manager should be an exemplar of - There are two processes of directing: good personal appearance, pleasant mannerisms, o Leadership. The process by which an friendliness, cheerfulness, and good health so that executive imaginatively directs, guides or he can command respect among his subordinates  - Leadership is the ability to motivate subordinates - The shortage of people who are capable of leadership and other people toward the achievement of and supervision of other is one of the biggest difficulties organizational objects encountered by companies, and this may be due to: o Lack of incentive in the supervisory positions 2.13 DELEGATION OF AUTHORITY o Inadequate or ineffective recruitment of - The key to effective management. In order to have those possessing potential leadership control, the manager must have authority ability - Authority is the power of an administrator to o Insufficient training of present and delegate functions to the next ranking executive, potential supervisory personnel who in turn transmit it to the employees who are charged with the actual operations 2.15 SCIENTIFIC MANAGEMENT - Delegation of task to a subordinate is a - The root of management science extends to the manifestation of faith and confidence towards the work of Frederick W. Taylor, who propounded the ability of a subordinate machine model or scientific or task management theory with the following peculiarities: o Division of labor and specialization 2.14 PERSONNEL COORDINATION o Unity of command and centralization of - The company organization is also dependent upon decision making the special abilities and skills of personnel to o One way authority perform the work. o Narrow span of control - Two factors are significant: Frederick W. Taylor – an Engineer who was accredited o The need for close supervision as judged the title of father of scientific management by the skill of the workers and the difficulty of the operations o The ability of experienced and Engineers have five habits in mind: trustworthy personnel capable of acting in supervisory capacity 1. They know where their time goes. They work systematically at managing the little of their time. 2. They focus on outward contribution. They gear their 2.16 HUMANISTIC MANAGEMENT efforts to results rather than to work. - The management philosophy adopted by Konosuke Matsushita, the founder of Panasonic Corporation 3. They build on strengths. They do not build on of Japan was presented to know the secret of his weakness. They do not start up with the things they cannot business success. do. - Their management is an anchored on the following 4. They concentrate on a few major areas where principles: superior performance will produce outstanding o We have a good staff results. They force themselves to set priorities. They have o Our policies were clear no choice but to do first thing first and second things not at o We upheld an ideal to be striven for our all. chosen field of business was appropriate at the time 5. Engineers finally make effective decisions. They o We did not allow factions to form within know that this is above all a matter of system of the right our company steps in the right sequence. And they know that to make o We regarded the company as a public many decisions fast means to make the wrong decisions. institution What is needed are few, but fundamental decisions. o We followed a policy of open management o We worked towards a system of Work Simplifications management by all employees - Rank and file employees are frequently called upon to contribute. The term simplification is often used Five Key Points to Success in enterprise Management: to designate the cooperative project. - To have a clear management philosophy, clear goals, and definite ideal. - To manage a company with the full realization that every enterprise is a public enterprise. - To practice open management. - To collect the wisdom of the many.  - To try your best to acquire an unflappable and When to have written orders? supremely adaptable mind to enable you to see 1. When precise figures or complicated details are things as they actually are without clinging to 2. involved preconceived notions. 3. When orders must be passed on to someone else 4. When the workers involved are slow to According to Konosuke Matsushita, for a corporation to understand and forgetful achieve its objective, it must above all else, succeed in 5. When you want to hold the receiver strictly cultivating its human resources. accountable 6. When particular sequence must be followed exactly 2.17 DIRECTING PEOPLE ON THE JOB 7. When a notice board can be suitable used What is an order? 8. When you are quoting general instructions on higher authority - A specific message conveyed by a leader to 9. When a record is desirable, perhaps the order follower for the purpose of influencing the follower may need to referred to in the future to take desired action. It can be either verbal or written Whether verbal or written, every order will fall into one When to use verbal orders? of the four distinct categories such as: 1. When the order is simple and the message can a. A request be clearly heard b. A suggestion 2. When privacy is important c. Asking for volunteers 3. When the follower is intelligent and reliable d. A direct order 4. When a demonstration is involved Guiding principles on how to phrase orders - Whatever the industry, the success of any business effectively: depends on the flexibility, resourcefulness and innovation knowledge workers bring to the firm. a. clear b. complete c. concise d. acceptable 2.18 HOW TO GIVE EFFECTIVE ORDERS 1. Clarify your objective. 2. Obtain favorable attention. 3. Make it simple and specific. 4. Phrase it tactfully for best results. 5. Explain why it should be done your way. 6. Learn how much information and guidance he needs. 7. Let him have it. 8. Inspire his confidence in you and the correctness of your order. 9. Note his readiness to act. 10. Give him faith in his ability to carry it out. 2.19 THE KNOWLEDGE WORKERS Human Resource - Most important resource in any organization