ion and the Construction Process

8/7/2019 ion and the Construction Process

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Managers depend on effective

organisations for achieving their

objectives

Meeting the objectives through

organisation


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Stems from first wave of writing on

management in early part of last century

and is characterised by the work ofTaylor and Foyol

Was the foundation of managementpractice up to about 1950


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Taylor laid the foundation of scientific

management

The approach suggests that it is possibleto get maximum output by minimum

input if tasks are scientifically structured

Fayols work was influential as lead otherscientists to develop principles of

management

Pyramidal organisation structure


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Authority is delegated downwards


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This approach became a deterministic

approach and was known as the only

way to organise

Fayol did not intend this, however theuser applied this view of organisation (still

is the case)


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The soundness and good working order ofthe body corporate depends on a certainnumber of conditions termed

indiscriminately principles, laws, rules. Forpreference I shall adopt the term principleswhilst disassociating it from any suggestionof rigidity, for there is nothing rigid orabsolute in management affairs, it is all a

question of proportion. Seldom, do we haveto apply the same principle twice inidentical conditions; allowance must bemade for different changing circumstances


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Recognition of informal organisation in

parallel with formal organisations

Study of management should be

cantered on interpersonal relations orshould be seen as a social network


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Because people cannot be treated as

machines

Peoples behavioural response to theirposition within a formal organisation

cannot be expected to subscribe to thepredetermined manner in which they

are expected to perform


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Goal complexity within organisations leads todisparity between the official goals of anorganisation and the goals actually pursued

This then governs the behaviour of theparticipants

The existence of informal goals creates aninformal structure intended to achieve them

The recognition of this phenomenonchallenged the classical approach to

organisations


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Based on the studies conducted by TheTavistock Institute of Human Relations

(London) in 1950s and 1960s The business organisation is both social

and technical system

The needs of both the technical and

social aspects should be served byorganisations

Scott (1992) notes that the goal shouldbe one of joint optimisation


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It combines the conception of like

People without organisation (Bennis 1959)

Organisation without people (Bennis 1959)


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A way of thinking about complex

processes so that the interrelationships of

the parts and their influence upon theeffectiveness of the total process can be

better understood, analysed and

imroved


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An entity, conceptual or physical, which

consists of interdependent parts. Each of

a systems elements is connected toevery other element, directly or

indirectly, and no sub-set of elements is

unrelated to any other sub-set


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Architect

Engineer

Quantity surveyor

Contractors...


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It depends upon them perceiving the sameobjectives for the project and recognisingthat what each of them achieves dependson what the others do

With this view they should be able to standabove the particular interests of their owncontribution and see the problem posed bythe project as a whole

The advent of project manager has comeabout as a result of the inability of thecontributors to achieve this


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Closed system Does not respond to events and occurrences outside

the system

It cannot adapt to changes It is predictable

Open system Adapts to events and occurrences outside the

system

Permeable boundary Import and export between open system & its

environment

Dynamic

Always changing and evolving


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Which one is open system/closed system

Overloaded washing machine

Living organism Motor car fuelled by dirty petrol


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Yes

A central heating system and the human

body They are systems that defend itself from

having to adapt fully to its environment

Also called Homeostatic


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Open system

The system must adapt to the clients

demands It imports ideas, energy, materials,

information, etc from its environment

It transforms the inputs into outputs(finished construction)

Output is exported to the environment


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Transformation

ConstructionProcess System

People and/or machines

Input Output

Buildings

RoadsPlant

Bridgesetc

Ideas

InformationEnergy

Materialsetc

The environment


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Identifying, communicating and adaptingthe systems objectives

Ensuring that the parts of the system are

working effectively Ensuring that appropriate connections are

established between the parts Activating the system so that the

connections that have been establishedwork effectively Relating the total system to its environment

and adapting the system as required inresponse to changes in its environment


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Anticipating the chain reactions of

decisions and developments that occur

on the project


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As a result of an upturn in the business,

the client may decide at a late stage in

the design of a project to be submittedfor competitive tender, that substantially

more floor area is needed in the factory.

What measures do you consider as a

project manager?


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Its effect on the project cost

Completion time

Functional efficiency

Evaluated against alternatives

Providing the additional area in a different

form, e.g. Leased accommodation Providing the additional area in a different

method, e.g. A negotiated contract for theadditional area


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Relationship between time and cost

Interaction between all the contributors

etc


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System theory provides a platform so

that all other schools of management

join together within a framework with lessrigidity and more recognition of

interdependency in organisations


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Organisation is a function of the nature

of the task to be carried out and its

environment Different environments create different

levels of uncertainty that requires theseparation between units of an

organisation (e.g. Architect, engineer,

contractor) and hence they require

different degrees of integration


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The extent of differentiation (separation)depends; Uncertainty

Diversity of environment

The effect of environment diversity on the waythe task is managed or organised

Contingency theory believes thatmanagers have to respond to the

environment of their organisations indesigning organisations

Managers are responsive to, and their

actions determined by, the environment


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Considers an open system approach similar tocontingency theory

Managers have choices and although theenvironment may constrain their choices tosome extent it does not determine them

Rather than being a function of task andenvironment, organisation structures aredetermined by political contests withinorganisations leading to a framework for thepower-driven political explanation oforganisational structure


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Arises from open system framework

Sees managers making strategic choiceswithin constraints to reduce theirdependencies which shows similarity with

strategic contingency approach

Managers do not have unbridledstrategic choice


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Concerned with the impact of institutions

(government, professional groups),

public opinion and pressure groups onthe structure of organisations


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Meyer and Rowan (1977) Many of the positions, policies, programs, and

procedures of modern organisations are

enforced by public opinion, by the views ofimportant constituents, by knowledgelegitimated through the educational system, bysocial prestige, by the laws, and by thedefinitions of negligence and prudence used by

the courts. Such elements of formal structure aremanifestations of powerful institutional ruleswhich function as highly rationalized myths thatare binding on particular organisations


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Criticisms stem from its supposed

disregard of the informal organisation

It assumes that people in organisationsbehave predictably and calculatedly

The idea of an organisation having a

goal or single objective(oversimplification of the problem)


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Mintzbergs classification of the structure

of organisations has a strong appeal to

people in the construction industry He adopts an open system

He incorporated the contingency theory

He believes an effective organisationachieves appropriate balance between

task, environment and organisation

structure


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He introduces 7 organisation

configurations

The Entrepreneurial

Organisation

The machine

organisation

The Diversified

organisation

The professional

organisation

The innovative

organisation

The missionary

organisation

The politicalorganisation


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Simple organisations that are run by their

leader

One person at the top retains so muchinfluence

Dynamic system

Are able to outmanoeuvre thebureaucracies


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Work is very formalized

There are many routines and procedures

Decision-making is centralized

Tasks are grouped by functional

departments

Jobs will be clearly defined There will be a formal planning process

with budgets and audits


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Tight vertical structure

Functional lines go all the way to the top,allowing top managers to maintaincentralized control

These organizations can be very efficient,and they rely heavily on economies of

scale for their success The formalization leads to specialization

and, pretty soon, functional units can haveconflicting goals that can be inconsistent

with overall corporate objectives


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If an organization has many different

product lines and business units, you'll

typically see a divisional structure inplace

A central headquarters supports anumber of autonomous divisions that

make their own decisions, and have theirown unique structures


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Large and mature organizations that

have a variety of brands, produce a

wide range of products, or operate indifferent geographical regions

The key benefit of a divisional structure is

that it allows line mangers to maintain

more control and accountability than ina machine structure


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Divisions can tend to be in conflict,because they each need to compete forlimited resources from headquarters

Can be inflexible

They work best in industries that are stableand not too complex

If your strategy includes product or marketdiversification, this structure can work well,particularly when the company is too largefor effective central decision-making


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In new industries, companies need to

innovate and function on an "ad hoc"

basis to survive

With these organizations, bureaucracy,

complexity, and centralization are far

too limiting


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Filmmaking, consulting, and

pharmaceuticals are project-based

industries that often use this structure Decisions are decentralized, and power

is delegated to wherever it's needed. Thiscan make these organizations very

difficult to control

There can be lots of conflict whenauthority and power are ambiguous


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Very bureaucratic

The key difference between these and

machine organizations is thatprofessional organizations rely on highly

trained professionals who demandcontrol of their own work

While there's a high degree of

specialization, decision making isdecentralized


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The professional organization is complex,and there are lots of rules and procedures

You can act as if you were self-employedyet regularly receive a paycheck

Enjoys the efficiency benefits of a machinestructure, even though the output is

generated by highly trained professionalswho have autonomy and considerablepower


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The clear disadvantage with the

professional structure is the lack of

control that senior executives canexercise, because authority and power

are spread down through the hierarchy.

This can make these organizations hard

to change.


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It is common in places like schools and

universities, and in accounting and law

firms


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Rich system of values and beliefs aboutan organisation, shared by its members,that distinguishes it from otherorganisations

Their tendency to be small facilitatespersonal relationships

the founding members frequently sharea set of strong basic beliefs, and the

founders of new organisations are oftencharismatic individuals, energising andknitting members together

Co-exists with other type of organisations


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Developing an ideology in an existingorganisation is possible but much moredifficult

The Missionary form may not beappropriate for the large firm which has astrong ideology

Japanese corporations, with their lifetimeemployment, consensual decision-making,collective responsibility, slow evaluationand promotion, implicit and informalcontrol, non-specialised career paths, andholistic concern for the employee


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Usually co-exists with more conventionalpatterns but maybe strong enough tostand alone

Politics is the dominant system Political activities pitches individuals or

groups against the organisations systemsof influence, different systems against

each other The lack of any preferred form of order,

structure or coordination typifies the

political organisation


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Client organisation could be any of theMintzbergs configuration

Design firm could be a professionalorganisation but may tend towards an

innovative organisation

Other professional consultancies could

have similar profiles but with engineersand quantity surveyors more likely to bemore based towards a professionalorganisation


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Depending on the contract strategy, the

construction firms may need to be more

strongly biased towards professional andinnovative organisations . e.g. Design-

and-build and build-operate-transfer

projects


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Project organisation which overlays and

comprises a range of firms each of which

has a structural orientation which suitesits particular contribution to the project


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Have a read through transaction cost

framework


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Chaos and complexity theory

The transaction cost approach and its

application to construction industry Critical theory

postmodernism


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Much of contemporary organisational

theory stems from systems theory,

contingency theory, resourcedependency theory, institutional theory

and the work of Mintzberg

All of these provide a basis for analysing

construction project organisations

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ion and the Construction Process