BASIC CONCEPTS OF MANAGEMENT INTRODUCTION
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MANAGEMENT IS AN IMPORTANT ELEMENT IN
EVERY ORGANIZATION. IT IS THE ELEMENT THAT
COORDINATES CURRENTS ORGANIZATIONAL
ACTIVITIES AND PLANS FOR THE FUTURE.
THE MANAGEMENT ADAPTS THE ORGANIZATION
TO ITS ENVIRONMENT AND SHAPES THE
ORGANIZATION TO MAKE IT MORE SUITABLE TO THE
ORGANIZATION.
THIS FUNCTION EXPECTED TO BE CARRIED OUT THROUGHOUT
THE ORGANIZATION. IT SHOULD BE PERFORMED BY THE
MANAGER AT ALL LEVELS.
ORGANIZING
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DEFINITION
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“MANAGEMENT IS THE ART OF “KNOWING WHAT YOU
WANT TO DO” AND THEN SEEING THAT IT IS DONE IN
THE BEST AND CHEAPEST WAY.
……F.W.TAYLOR
MANAGEMENT AS A PROCESS “CONSISTING OF
PLANNING, ORGANIZING, ACTUATING AND
CONTROLLING, PERFORMED TO DETERMINE AND
ACCOMPLISH THE OBJECTIVE BY THE USE OF PEOPLE
AND RESOURCES.” ……GEORGE R. TERRY
IN THIS DEFINITION,
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DIRECTING
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PLANNING MEANS PLAN IN ADVANCE.
ORGANIZING MEANS COORDINATION BETWEEN HUMAN
RESOURCES AND MATERIAL RESOURCES.
ACTUATING MEANS MOTIVATION AND GIVING DIRECTION TO
SUBORDINATE.
CONTROLLING MEANS TO ENSURE ABOUT
IMPLEMENTATION OF PLAN WITHOUT DEVIATION.
THUS, THIS DEFINITION TELLS THAT MANAGEMENT IS ACT OF
ACHIEVING THE ORGANIZATION OBJECTIVES.
MANAGEMENT FUNCTIONS OR THE PROCESS OF MANAGEMENT
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PLANNING, ORGANIZING, LEADING &
CONTROLLING (NEWMAN & SUMMER)
PLANNING, ORGANIZING, COMMANDING,
COORDINATING AND CONTROLLING (HENRI
FAYOL)
‘POSDCORB’: PLANNING, ORGANIZING,
STAFFING, DIRECTING, COORDINATING,
REPORTING & BUDGETING (LUTHER GULICK)
DECISION MAKING, ORGANIZING, STAFFING,
PLANNING, CONTROLLING, COMMUNICATING &
DIRECTING (WARREN HAYNES & JOSEPH MASSIE)
PLANNING, ORGANIZING, STAFFING, DIRECTING &
CONTROLLING (KOONTZ O’DONNELL)
FUNCTIONS OF MANAGEMENT
PLANNING: IT IS A PROCESS OF DECIDING THE
BUSINESS OBJECTIVES AND CHARTING OUT THE PLAN/
METHOD FOR ACHIEVING THE SAME. THIS INCLUDES
DETERMINATION OF WHAT IS TO BE
DONE, HOW, AND WHERE IT IS TO BE DONE, WHO WILL
DO IT AND HOW RESULT IS TO BE EVALUATED.
ACCORDING TO ALLEN, THE ORGANIZING REFERS TO “
THE STRUCTURED WHICH RESULTS FROM
IDENTIFYING AND GROUPING THE WORK,
DEFINING AND DELEGATING RESPONSIBILITY AND
AUTHORITY AND ESTABLISHING RELATIONSHIPS.”
TO ORGANIZE A BUSINESS IS TO PROVIDE IT WITH
EVERYTHING USEFUL TO ITS FUNCTIONING I.E.
PERSONNEL, RAW MATERIALS, MACHINERIES,
CAPITAL ETC.
ONCE OBJECTIVES ARE ESTABLISHED, MANAGER HAS
TO DEVELOP PLAN TO ACHIEVE THEM WITH HELP OF
HUMAN RESOURCES AS WELL AS
MATERIAL RESOURCES.
DIRECTING INVOLVES COMMUNICATION,
LEADERSHIP AND MOTIVATION.
COMMUNICATION IS THE PROCESS OF PASSING THE
INFORMATION AND UNDERSTANDING IT FROM ONE
PERSON TO ANOTHER PERSON.
LEADERSHIP IS THE FUNCTION WHEREBY THE PERSON OR
MANAGER GUIDES AND INFLUENCES THE WORK OF HIS
SUBORDINATES.
MOTIVATION IS TO MOTIVATE THE EMPLOYEE TO GIVE
THEIR BEST TO THE ORGANIZATION.
CONTROLLING
THE CONTROLLING INVOLVES:
1. ESTABLISHING STANDARDS OF PERFORMANCE.
2. MEASURING CURRENT PERFORMANCE AND
COMPARING IT AGAINST THE ESTABLISHED STANDARD.
3. TAKING CORRECTIVE ACTION THAT DOES NOT MEET THE
STANDARD.
CONTROL COMPELS THE EVENTS TO CONFIRM TO PLANS.
INNOVATION AND REPRESENTATION
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THESE ARE ALSO TWO IMPORTANT ADDITIONAL
MANAGERIAL FUNCTIONS.
INNOVATION MEANS CREATING NEW IDEAS WHICH MAY
EITHER RESULT IN THE DEVELOPMENT OF NEW
PRODUCTS OR FINDING NEW USES FOR OLDER
ONES. IT IS NECESSARY TO GROW BETTER.
THE MANGER HAS TO REPRESENT HIMSELF FOR THE
ORGANIZATION. A MANGER MUST WIN SUPPORT
EFFECTIVELY FROM DIFFERENT GROUPS (EITHER
INTERNAL OR EXTERNAL).
IMPORTANCE OF MANGEMENT
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MANAGEMENT IS CRITICAL ELEMENT IN THE
CRITICAL GROWTH OF THE COUNTRY.
MANAGEMENT IS ESSENTIAL IN ALL ORGANIZED
EFFORT, BE IT BUSINESS ACTIVITY OR ANY OTHER
ACTIVITY.
MANAGEMENT IS THE DYNAMIC, LIFE-GIVING
ELEMENT IN EVERY ORGANIZATION.
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LEVELS OF MANAGEMENT
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LOWER LEVEL (FIRST LINE): FOREMEN & WHITECOLLAR SUPERVISOR
MIDDLE MANAGEMENT: SALES MANAGERS,
PERSONNEL MANAGERS, OTHER DEPARTMENTAL
HEADS
TOP MANAGEMENT: COMPANY PRESIDENTS,
EXECUTIVES, VICE PRESIDENTS
MANAGERIAL SKILLS
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HE ALSO ENCOURAGED EMPLOYERS TO PAY
MORE PRODUCTIVE WORKERS AT A HIGHER RATE THAN
OTHERS, USING A "SCIENTIFICALLY
CORRECT" RATE THAT WOULD BENEFIT BOTH
COMPANY AND WORKER.
THIS SYSTEM IS CALLED DIFFERENTIAL RATE SYSTEM
GANTT ORIGINATED A CHARTING SYSTEM FOR
PRODUCTION SCHEDULING.
EVERY WORKER'S PROGRESS WAS RATED PUBLICLY
AND RECORDED ON INDIVIDUAL BAR CHARTS, --IN
BLACK ON DAYS THE WORKER MADE THE STANDARD,
IN RED WHEN HE OR SHE FELL BELOW IT. GOING
BEYOND THIS.
FRANK B. AND LILLIAN M. GILBRETH
COLLABORATED ON FATIGUE AND MOTION STUDIES
AND FOCUSED ON WAYS OF PROMOTING THE
INDIVIDUAL WORKER'S WELFARE. TO THEM, THE
ULTIMATE AIM OF SCIENTIFIC MANAGEMENT WAS TO
HELP WORKERS REACH THEIR FULL POTENTIAL AS HUMAN
BEINGS.
CONTRIBUTIONS OF SCIENTIFIC MANAGEMENT THEORY
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THE MODEM ASSEMBLY LINE POURS OUT FINISHED
PRODUCTS FASTER THAN TAYLOR COULD EVER HAVE
IMAGINED. THIS PRODUCTION "MIRACLE" IS THE GIFT
OF SCIENTIFIC MANAGEMENT.
IN ADDITION, ITS EFFICIENCY TECHNIQUES HAVE
BEEN APPLIED TO MANY TASKS IN NON-INDUSTRIAL
ORGANIZATIONS, RANGING FROM FAST-FOOD
SERVICE TO THE TRAINING OF SURGEONS.
LIMITATIONS OF SCIENTIFIC MANAGEMENT THEORY
EVOLUTION OF MANAGEMENT THOUGHT
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THE NEED TO STUDY MANAGEMENT AROSE WITH THE
INDUSTRIAL REVOLUTION IN EUROPE (MORE
SPECIFICALLY, ENGLAND).
THE INDUSTRIAL REVOLUTION AND THE SYSTEMATIC
STUDY OF MANAGEMENT ARE THE RESULT OF A
REMARKABLE CONFLUENCE OF IDEAS AND EVENTS.
MANAGEMENT AND ORGANIZATIONS ARE
PRODUCTS OF THEIR HISTORICAL AND SOCIAL
TIMES AND PLACES.
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TAYLOR'S SYSTEM CLEARLY MEANT THAT TIME WAS OF
THE ESSENCE. HIS CRITICS OBJECTED TO THE "SPEED UP"
CONDITIONS THAT PLACED UNDUE PRESSURES ON
EMPLOYEES TO PERFORM AT
FASTER AND FASTER LEVELS.
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THE EMPHASIS ON PRODUCTIVITY—AND, BY
EXTENSION, PROFITABILITY—LED SOME MANAGERS TO
EXPLOIT BOTH WORKERS AND CUSTOMERS. THIS
CONDITION CREATED MISTRUST / SUSPICIOUS
RELATIONSHIP BETWEEN LABOR AND SUPERVISOR OR
MANAGEMENT.
SCIENTIFIC MANAGEMENT THEORY
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FREDERICK W. TAYLOR, HENRY L. GANTT, AND FRANK
AND LILLIAN GILBRETH DEVISED THE BODY OF
PRINCIPLES KNOWN AS SCIENTIFIC
MANAGEMENT THEORY.
TAYLOR BASED HIS MANAGEMENT SYSTEM ON
PRODUCTION-LINE TIME STUDIES. USING TIME STUDY
AS HIS BASE, HE BROKE EACH JOB DOWN INTO ITS
COMPONENTS AND DESIGNED THE QUICKEST AND
BEST METHODS OF PERFORMING EACH COMPONENT.
CLASSICAL ORGANIZATION THEORY
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CLASSICAL ORGANIZATION THEORY CONCERNED
ABOUT THE NEED TO FIND GUIDELINES FOR
MANAGING COMPLEX ORGANIZATIONS SUCH AS
FACTORIES.
HENRI FAYOL IS THE FOUNDER OF THE CLASSICAL
MANAGEMENT THEORY.
FAYOL BELIEVED THAT SOUND MANAGEMENT PRACTICE
FALLS INTO CERTAIN PATTERS THAT CAN BE IDENTIFIED
AND ANALYZED.
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FAYOL WAS INTERESTED IN THE TOTAL
ORGANIZATION AND FOCUSED ON
MANAGEMENT, WHICH HE FELT HAD BEEN THE MOST
NEGLECTED OF BUSINESS OPERATIONS.
BEHAVIOURAL MANAGEMENT THEORY NEO CLASSICAL THEORY
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FAYOL’S 14 PRINCIPLES OF MANAGEMENT
1. DIVISION OF LABOR
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2. AUTHORITY
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3. DISCIPLINE
4. UNITY OF COMMAND
THIS THEORY PUTS MORE EMPHASIS ON
INDIVIDUAL’S ATTITUDES, BEHAVIOURS AND ON THE
GROUP PROCESSES. IN THIS APPROACH OF
MANAGEMENT HUMAN FACTOR REMAIN
CENTRAL FOCUS.
THIS APPROACH CAN BE STUDIED INTO TWO
PHASES –
A. HUMAN RELATION MOVEMENT
B. BEHAVIOURAL SCIENCE APPROACH
MAJOR CONTRIBUTORS TO THIS APPROACH WERE
ELTON MAYO, ABRAHAM MASLOW AND DUGULAS
MCGREGOR
5. UNITY OF DIRECTION
6. REMUNERATION
HUMAN RELATION MOVEMENT
7. SUBORDINATION OF INDIVIDUAL INTEREST TO THE
COMMON GOOD
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8. CENTRALIZATION
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9. THE HIERARCHY
10. ORDER
11. EQUITY
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12. STABILITY OF STAFF
13. INITIATIVE
14. ESPIRIT DE CORPS
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CONTRIBUTION OF CLASSICAL MANAGEMENT THEORY
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BEFORE FAYOL, IT WAS GENERALLY BELIEVED THAT
"MANAGERS ARE BORN, NOT MADE."
FAYOL HOWEVER, SAID THAT MANAGEMENT WAS A
SKILL LIKE ANY OTHER--ONE THAT COULD BE TAUGHT
ONCE ITS UNDERLYING PRINCIPLES WERE UNDERSTOOD.
IT IDENTIFIED KEY MANAGEMENT PROCESSES,
FUNCTIONS AND SKILLS.
IT FOCUSED ATTENTION ON MANAGEMENT AS A
VALID SUBJECT OF SCIENTIFIC STUDY.
IT LED FOUNDATION FOR LATTER DEVELOPMENTS IN
MANAGEMENT THEORY.
HUMAN RELATIONS IS FREQUENTLY USED AS A
GENERAL TERM TO DESCRIBE THE WAYS IN WHICH
MANAGERS INTERACT WITH THEIR EMPLOYEES.
WHEN "EMPLOYEE MANAGEMENT" STIMULATES
MORE AND BETTER WORK, THE ORGANIZATION HAS
EFFECTIVE HUMAN RELATIONS; WHEN
MORALE AND EFFICIENCY DETERIORATE, ITS HUMAN
RELATIONS ARE SAID TO BE INEFFECTIVE.
THE HUMAN RELATIONS MOVEMENT AROSE FROM
EARLY ATTEMPTS TO SYSTEMATICALLY DISCOVER THE
SOCIAL AND PSYCHOLOGICAL FACTORS THAT WOULD
CREATE EFFECTIVE HUMAN
RELATIONS.
THIS APPROACH AIMS AT PROVIDING HIGH DEGREE
OF SATISFACTION AND MOTIVATION THROUGH
IMPROVED WORKING CONDITIONS, STYLE OF
SUPERVISION AND SENSE OF SECURITY.
CONTRIBUTION OF HUMAN RELATION MOVEMENT
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THIS MOVEMENT THROWN LIGHT ON, AN
EMPLOYEE DOESN’T WORK ALWAYS FOR MONEY
ONLY. NON-FINANCIAL REWARDS ALSO
SIGNIFICANTLY AFFECTS THE BEHAVIOR OF THE
EMPLOYEE.
THERE IS NO CORRELATION BETWEEN IMPROVED
WORKING CONDITIONS AND HIGH PRODUCTION.
THE INFORMAL GROUP AND NOT THE INDIVIDUAL IS
THE DOMINANT UNIT OF ANALYSIS IN
ORGANIZATIONS.
LIMITATIONS OF CLASSICAL THEORY
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THIS THEORY IS MORE APPLICABLE FOR STABLE
AND SIMPLE ORGANIZATIONS THAN TODAY’S
COMPLEX AND DYNAMIC
ORGANIZATIONS.
THIS THEORY TREATS EMPLOYEES AS A
ELEMENT RATHER THAN RESOURCES.
THE PROCEDURE GOVERNED BY THIS THEORY
MAY NOT BE APPLICABLE IN CERTAIN SITUATION.
LIMITATION OF THE HUMAN RELATIONS MOVEMENT
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THIS APPROACH OVER-EMPHASIZES ON SYMBOLIC
REWARDS AND UNDERPLAYS THE ROLE OF
MATERIAL REWARDS.
THIS APPROACH GIVES MORE IMPORTANCE TO
INFORMAL GROUPS BY DESCRIBING THEM AS A
MAJOR SOURCE OF SATISFACTION FOR INDIVIDUAL
WORKERS.
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THIS APPROACH IS BASED ON THE ASSUMPTION THAT
SATISFIED WORKERS ARE MORE PRODUCTIVE WORKERS.
ATTEMPTS TO INCREASE OUTPUT BY IMPROVING
WORKING CONDITIONS AND THE HUMAN RELATION
SKILLS OF MANAGER.
MODERN APPROACHES – QUANTITATIVE APPROACH
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BEHAVIOURIAL SCIENCE APPROACH
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THIS APPROACH IS AN IMPROVED VERSION OF THE
HUMAN RELATIONS APPROACH TO
MANAGEMENT.
DOUGLAS MCGREGOR, ABRAHAM MASLOW, KURT
LEWIN, CHESTER BARNARD, MERRY FOLLETT ETC. ARE
SOME OF THE FOREMOST BEHAVIOURIAL SCIENTISTS
WHO MADE SIGNIFICANT
CONTRIBUTIONS TO THE DEVELOPMENT OF THE
BEHAVIOURIAL APPROACH TO THE
MANAGEMENT.
THIS APPROACH RECOGNIZES THE PRACTICAL AND
SITUATIONAL CONSTRAINTS ON HUMAN RATIONALITY
FOR MAKING OPTIMAL DECISIONS.
CONTD…
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CONTRIBUTION OF BEHAVIOURAL MANAGEMENT THEORY
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CONTD…
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TO BEHEVIOURAL SCIENTISTS, THE REALISTIC MODEL OF
HUMAN MOTIVATION IS COMPLEX MAN. IT SUGGEST
THAT DIFFERENT PEOPLE REACT DIFFERENTLY TO SAME
SITUATION OR REACT SAME WAY TO DIFFERENT
SITUATIONS.
THE ORGANIZATION CONSIDERED AS A GROUPS
OF INDIVIDUALS WITH CERTAIN GOALS.
IT RECOGNIZES THAT CONFLICT IS INEVITABLE AND EVEN
SOMETIMES DESIRABLE AND SHOULD BE FACED WITH
UNDERSTANDING AND
DETERMINATION.
IT PROVIDES IMPORTANT INSIGHTS INTO
MOTIVATION, LEADERSHIP, GROUP DYNAMICS AND
OTHER INTERPERSONAL PROCESS IN
ORGANIZATIONS.
THIS THEORY CHALLENGED THE VIEW THAT
EMPLOYEES ARE TOOLS INSTEAD EMPLOYEES ARE
VALUABLE RESOURCES.
FOCUSED MANAGERIAL ATTENTION ON
EMPLOYEE RELATED PROCESS.
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MANY BEVIOURAL CONCEPT COULDN’T BE
APPLIED IN ORGANIZATIONAL PROCESSES
BECAUSE OF MANAGER RELUCTANCE.
THE COMPLEX HUMAN NATURE CANN’T BE
PREDICTED.
THE FINDINGS OF BEHVIUORAL SCIENCE OFTEN
COULD NOT BE COMMUNICATED TO THE PRACTICING
MANAGER IN AN UNDERSTANDABLE MANNER.
THIS APPROACH GAINED MOVEMENT DURING
WORLD WAR II WHEN UK AND USA TRYING TO
SEEK SOLUTIONS FOR A NUMBER OF NEW
COMPLEX PROBLEMS OCCURRED DURING THE WAR.
THE GROUP OF SCIENTISTS ENGAGED FOR THIS
PURPOSE WERE KNOWN AS OPERATIONS RESEARCH
(OR) TEAM.
THE MANAGEMENT APPROACH GAINED
POPULARITY THROUGH TWO POSTWAR
PHENOMENA. THE DEVELOPMENT OF HIGH◻SPEED
COMPUTERS AND OF COMMUNICATIONS
AMONG COMPUTERS PROVIDED THE MEANS FOR
TACKLING COMPLEX AND LARGE-SCALE
ORGANIZATIONAL PROBLEMS.
CONTRIBUTIONS OF QUANTITATIVE MANAGEMENT THEORY
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THE KEYNOTE OF THIS APPROACH IS PRECISION AND
PERFECTION WHICH IS ACHIEVED BY
EXPRESSING RELATIONSHIPS AND FACTS IN
QUANTITATIVE TERMS.
IT IS WIDELY USED IN PLANNING AND CONTROL
ACTIVITIES WHERE PROBLEMS CAN BE PRECISELY
IDENTIFIED AND DEFINED IN QUANTITATIVE TERMS.
IT HAS LED TO INCREASING USE OF INFORMATION
TECHNOLOGY, ELECTRONIC DATA PROCESSING SYSTEM
AND OTHER SOPHISTICATED QUANTITATIVE DEVICES FOR
MAKING DECISIONS.
LIMITATIONS OF QUANTITATIVE MANAGEMENT THEORY
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LIMITATIONS OF BEHAVIOURAL MANAGEMENT THEORY
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THIS APPROACH HAS BEEN CALLED AS THE
MANAGEMENT SCIENCE APPROACH.
THE FOCUS OF THE QUANTITATIVE APPROACH IS
ON DECISION MAKING – TO PROVIDE QUANTITATIVE
TOOLS AND TECHNIQUES FOR MAKING OBJECTIVELY
RATIONAL DECISIONS. IT MEANS AS ABILITY OR
WILLINGNESS TO FOLLOW A REASONED, UNEMOTIONAL,
ORDERLY AND
SCIENTIFIC APPROACH IN VISUALIZING THE TOTALITY
OF THE DECISION ENVIRONMENT.
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THIS APPROACH HAS VERY LIMITED APPLICATION
BECAUSE OF ONLY ATTENTION TOWARDS
PROBLEM SOLVING AND DECISION-MAKING.
IT FAILS TO EXPLAIN OR PREDICT ABOUT
BEHAVIOUR OF THE PEOPLE OF THE
ORGANIZATION.
MANAGEMENT MAY BE ABLE TO ACHIEVE
MATHEMATICAL SOPHISTICATION AT THE EXPENSE OF
OTHER IMPORTANT MANAGERIAL SKILLS.
SYSTEM APPROACH
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THIS APPROACH IS AIMED AT IDENTIFYING THE NATURE
OF RELATIONSHIP AMONG VARIOUS COMPONENTS OF
THE ORGANIZATION WHICH IS CONSIDERED AS
LARGER SYSTEM.
CHESTER BARNARD, GEORGE HOMANS, HERBERT
SIMON ETC. ARE THE CONTRIBUTORS IN SYSTEM
APPROACH.
THIS APPROACH GIVES MANAGERS A WAY OF
LOOKING AT THE ORGANIZATION AS A WHOLE AND
AS A PART OF THE LARGER, EXTERNAL
ENVIRONMENT.
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CONTD…
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SYSTEMS THEORY TELLS US THAT THE ACTIVITY OF ANY
SEGMENT OF AN ORGANIZATION AFFECTS, IN
VARYING DEGREES, THE ACTIVITY OF EVERY OTHER
SEGMENT.
IT CALLS ATTENTION TO THE DYNAMIC AND
INTERRELATED NATURE OF ORGANIZATIONS AND THE
MANAGEMENT TASK.
IT PROVIDES A FRAMEWORK WITHIN WHICH WE CAN
PLAN ACTIONS AND ANTICIPATE BOTH IMMEDIATE
AND FAR-REACHING
CONSEQUENCES WHILE ALLOWING US TO
UNDERSTAND UNANTICIPATED CONSEQUENCES AS
THEY DEVELOP.
CONTRIBUTION OF SYSTEM APPROACH
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KEY CONCEPTS OF SYSTEM APPROACH
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A SYSTEM IS A SET OF INTERDEPENDENT PARTS – AN
ORGANIZATION IS A SYSTEM COMPOSED OF FOUR
INTERDEPENDENT PARTS I.E. TASK, STRUCTURE, PEOPLE
AND TECHNOLOGY.
CENTRAL TO THE SYSTEM APPROACH IS THE
CONCEPT OF “HOLISM” – MEANS NO PART OF THE
SYSTEM CAN BE ACCURATELY ANALYZED AND
UNDERSTOOD APART FROM WHOLE SYSTEM.
CONVERSELY THE WHOLE SYSTEM CANNOT BE
ACCURATELY PERCEIVED WITHOUT UNDERSTANDING
ALL ITS PARTS.
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CONTD…
SYNERGY – IT MEANS THAT AS SEPARATE
DEPARTMENTS WITHIN AN ORGANIZATION
COOPERATE AND INTERACT, THEY BECOME MORE
PRODUCTIVE THAN IF EACH WERE TO ACT IN
ISOLATION.
A SYSTEM CAN BE EITHER OPEN OR CLOSED – AN OPEN
SYSTEM INTERACT WITH ITS ENVIRONMENT. A CLOSED
SYSTEM IS INDEPENDENT OF THE
ENVIRONMENT.
EVERY SYSTEM HAS A BOUNDARY - EACH SYSTEM HAS A
BOUNDARY THAT SEPARATES IT FROM ITS
ENVIRONMENT. IN A CLOSED SYSTEM, THE SYSTEM
BOUNDARY IS RIGID; IN AN OPEN SYSTEM, THE
BOUNDARY IS MORE FLEXIBLE.
SYSTEM THEORY CALLS ATTENTION TO THE
DYNAMIC AND INTERRELATED NATURE OF
ORGANIZATIONS AND THE MANAGEMENT TASK. THUS,
IT PROVIDES A FRAMEWORK WITHIN WHICH WE CAN
PLAN ACTIONS AND ANTICIPATE BOTH IMMEDIATE
AND FAR-REACHING CONSEQUENCES WHILE
ALLOWING US TO UNDERSTAND UNANTICIPATED
CONSEQUENCES AS THEY
DEVELOP.
WITH A SYSTEMS PERSPECTIVE, GENERAL MANAGERS
CAN MORE EASILY MAINTAIN A BALANCE BETWEEN
THE NEEDS OF THE VARIOUS PARTS OF THE
ENTERPRISE AND THE NEEDS AND GOALS THE WHOLE
FIRM.
LIMITATIONS OF SYSTEM APPROACH
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CONTD…
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FLOW - A SYSTEM HAS FLOWS OF INFORMATION,
MATERIALS, AND ENERGY (INCLUDING HUMAN
ENERGY). THESE ENTER THE SYSTEM FROM THE
ENVIRONMENT AS INPUTS (RAW MATERIALS, FOR
EXAMPLE), UNDERGO TRANSFORMATION
PROCESSES WITHIN THE SYSTEM (OPERATIONS THAT
ALTER THEM), AND EXIT THE SYSTEM AS OUTPUTS
(GOODS AND SERVICES).
FEEDBACK - FEEDBACK IS THE KEY TO SYSTEM
CONTROLS. AS OPERATIONS OF THE SYSTEM
PROCEED, INFORMATION IS FED BACK TO THE
APPROPRIATE PEOPLE, AND PERHAPS TO A
COMPUTER, SO THAT THE WORK CAN BE ASSESSED
AND, IF NECESSARY, CORRECTED.
ACCORDING TO SOME EXPERTS, SYSTEM
APPROACH IS PURELY THEORETICAL,
CONCEPTUAL AND ABSTRACT. IT CAN CAN’T BE APPLIED
SUCCESSFULLY TO PRACTICAL SITUATION.
THE SYSTEM APPROACH NEITHER OFFERS ANY
TOOLS OR TECHNIQUE FOR ANALYSIS NOR IT
RECOGNIZES THE DIFFERENCES WHICH EXISTS
BETWEEN THE SYSTEMS.
CONTINGENCY APPROACH
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ACCORDING TO THE CONTINGENCY APPROACH THE
MANAGER'S TASK IS TO IDENTIFY WHICH
TECHNIQUE WILL, IN A PARTICULAR SITUATION, UNDER
PARTICULAR CIRCUMSTANCES, AND AT PARTICULAR
TIME, BEST CONTRIBUTE TO THE ATTAINMENT OF
MANAGEMENT GOALS.
METHODS AND TECHNIQUES WHICH ARE HIGHLY
EFFECTIVE IN ONE SITUATION MAY NOT WORK IN
OTHER SITUATIONS. RESULTS DIFFERS WITH
SITUATIONAL DIFFERENCE.
CONTRIBUTION OF CONTINGENCY APPROACH
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CONTINGENCY VIEWS ARE APPLICABLE IN
DESIGNING ORGANIZATIONAL STRUCTURE, IN
DECIDING THE DEGREE OF CENTRALIZATION AND
DECENTRALIZATION, IN PLANNING INFORMATION
DECISION SYSTEM, IN MOTIVATIONAL AND
LEADERSHIP APPROACHES, IN ESTABLISHING
COMMUNICATION AND CONTROL SYSTEMS, IN
RESOLVING CONFLICTS AND MANAGING CHANGE,
IN EMPLOYEE DEVELOPMENT AND TRAINING
PROGRAMMES ETC.
LIMITATION OF CONTINGENCY APPROACH
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IT COMPROMISES BETWEEN SYSTEM APPROACH AND
SITUATIONAL FACTORS.
IT IS TOTALLY PRACTICAL APPROACH WITHOUT
SUPPORT OF THEORETICAL AND CONCEPTUAL
FRAMEWORK.
SOMETIME MANAGER FINDS DIFFICULTIES IN
ANALYZING THE SITUATION AND DISCOVERING
APPROPRIATE MANAGEMENT TECHNIQUE IN ABSENCE
OF PROPER RESEARCH AND UNDERSTANDING
BEHAVIOUR OF THE SITUATION.
PROJECT MANAGEMENT
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WHAT IS A PROJECT
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A PROJECT IS A TEMPORARY ENDEAVOR DESIGNED TO PRODUCE A
UNIQUE PRODUCT, SERVICE OR RESULT WITH A DEFINED
BEGINNING AND END (USUALLY TIME CONSTRAINED, AND OFTEN
CONSTRAINED BY FUNDING OR DELIVERABLES) UNDERTAKEN TO
MEET UNIQUE GOALS AND OBJECTIVES, TYPICALLY TO BRING
ABOUT BENEFICIAL CHANGE OR ADDED VALUE
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WHAT IS PROJECT MANAGEMENT
THE BEGINNING PHASE OF EVERY PROJECT WHERE A
PROJECT MANAGER IS SELECTED.
THE PROJECT MANAGER WILL MEET WITH THE
PROJECT SPONSOR AND KEY STAKEHOLDERS TO
DETERMINE THE BUSINESS OR TECHNICAL
OBJECTIVES OF THE PROJECT.
DETERMINE ANY HISTORICAL INFORMATION
REGARDING THE PROJECT. BEGIN TO IDENTIFY WHO IS
NEEDED ON A PROJECT TEAM.
KEY OUTPUTS OF THIS PHASE ARE:
DEVELOP PROJECT CHARTER
DEVELOP PRELIMINARY SCOPE STATEMENT
IDENTIFICATION OF ALL STAKEHOLDERS
DIVIDE THE PROJECT INTO PHASES
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PLANNING PHASE
PROJECT MANAGEMENT IS THE DISCIPLINE OF INITIATING,
PLANNING, EXECUTING, CONTROLLING, AND CLOSING THE
WORK OF A TEAM TO ACHIEVE SPECIFIC GOALS AND MEET
SPECIFIC SUCCESS CRITERIA.
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PROJECT LIFE CYCLE
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• TO PROVIDE THE BASIC FRAMEWORK FOR MANAGING A
PROJECT.
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STANDARDS OF THE PROJECT MANAGEMENT INSTITUTE
PROJECT LIFE CYCLE
THE 5 PHASES OF PROJECT MANAGEMENT IS ALSO CALLED THE
PROJECT LIFECYCLE. THE 5 PHASES OF PROJECT MANAGEMENT
CONSIST OF:
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PROJECT INITIATION PHASE
PROJECT PLANNING PHASE
EXECUTION PHASE
MONITORING AND CONTROL PHASE
PROJECT CLOSEOUT PHASE
ONE OF THE LARGEST AND MOST IMPORTANT PHASES
OF EVERY PROJECT. THE PROJECT MANAGER WILL
DETERMINE THE TEAM, IDENTIFY ROLES AND
RESPONSIBILITIES AND SOLIDIFY A SCOPE
STATEMENT.
AT THIS PHASE THE PROJECT MANAGER WILL BEGIN TO
DEVELOP DIFFERENT PROJECT PLANS.
THEY CONSIST OF: –
COMMUNICATION PLAN (HOW WILL YOU
COMMUNICATE TO YOUR TEAM, TO YOUR
STAKEHOLDERS?) RISK PLAN (HOW WILL
RISKS BE DOCUMENTED HOW WILL THEY BE
ESCALATED?)
TESTING PLAN; PROJECT SCHEDULE
(TIMELINE)
DEVELOP A WBS – WORK BREAK DOWN
STRUCTURE A WORK BREAK DOWN
STRUCTURE IS KEY BECAUSE IT BREAKS
DOWN THE WORK INTO MANAGEABLE
WORK ACTIVITIES AND/OR TASKS.
PLANNING PHASE
THE NUMBER OF OUTPUTS FOR THE PLANNING PHASE IS LARGE
AND THAT IS WHY THE PLANNING PHASE SHOULD BE GIVEN
ADEQUATE TIME FOR PLANNING.
*PLEASE KEEP IN MIND THAT THIS PHASE WILL HAVE IS AN ITERATIVE
PROCESS. EVERYTHING WILL BE REVISED UNTIL
ALL PARTIES AGREE ON THE OUTPUTS AND FORMAL APPROVAL IS
GIVEN.
TRIPLE CONSTRAINT IS THE METHODOLOGY THAT IF THERE IS A
CHANGE IN COST, THEN THE CHANGE WILL IMPACT SCHEDULE OR
THE SCOPE AND VICE VERSA.
INITIATION PHASE
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DOCUMENTED
REPORTS
PERFORMANCE
MONITOR AND CONTROLLING PHASE
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THE PHASE WHERE RESULTS DERIVED FROM YOUR NEW
PROCESS OR PRODUCT ARE COMPARED TO THE METRICS
YOU OUTLINED IN YOUR PERFORMANCE PLAN.
IMPLEMENT YOUR CHANGE CONTROL PROCESS
DETERMINE VARIANCES AND IDENTIFY IF THEY
WARRANT CORRECTIVE ACTION OR CHANGE
FACILITATE CONFLICT RESOLUTION
USE ISSUE LOGS
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KEY OUTPUTS OF THIS PHASE ARE:
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TRIPLE CONSTRAINT
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THE TRIPLE CONSTRAINT IS THE COMBINATION OF
THREE MOST SIGNIFICANT ATTRIBUTES OF SCOPE,
COST AND TIME OF PROJECT MANAGEMENT.
THE FURTHER REFINEMENT HAS ADDED THE
ADDITIONAL CONSTRAINT OF QUALITY IN THE PM
TRIANGLE.
THESE PARAMETERS ARE OFTEN USED TO MEASURE THE
PERFORMANCE OF THE PROJECT AND ALSO
DECIDE SUCCESS OR FAILURE OF THE PROJECT.
CHANGE IN ANY SIDE OF THE TRIANGLE AFFECTS THE
OTHER SIDES OF THE TRIANGLE.
THE PRIORITY IN THE TRIPLE CONSTRAINT IS
DECIDED BY THE PROJECT SPONSOR.
PLANNING PHASE
KEY OUTPUTS OF THIS PHASE ARE:
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CREATE WBS AND WBS DICTIONARY
DEVELOP SCHEDULE
DEVELOP BUDGET. DETERMINE ROLES AND
RESPONSIBILITIES
DEVELOP COMMUNICATION PLAN
DEVELOP RISK PLAN
CREATE PERFORMANCE MEASUREMENT BASELINES
DEVELOP PRELIMINARY SCOPE STATEMENT
TEST PLAN. DETERMINE THE CRITICAL PATH
PREPARE PROCUREMENT DOCUMENTS
CREATE PROCESS IMPROVEMENT PLAN
GAIN FORMAL APPROVAL OF ALL PLANS AND KEY
DELIVERABLES
EXECUTION PHASE
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THIS PHASE IS WHERE YOU DO THE “WORK” OR
EXECUTE THE PLAN. THIS PHASE TYPICALLY REQUIRES
THE MOST AMOUNT OF TIME SINCE THE MAJORITY OF
THE WORK IS DONE IN THIS TIMEFRAME.
YOU WILL SOLIDIFY THE TEAM; CONDUCT
TEAMBUILDING EXERCISES. HOLD PROGRESS AND
STATUS MEETINGS
FOLLOW THE PROCESSES IN YOUR PROJECT PLANS.
RECOMMEND CHANGES AND CORRECTIVE ACTIONS.
CONTINUOUS IMPROVEMENT
KEY OUTPUTS OF THIS PHASE ARE:
SIGNOFF THAT KEY MILESTONES
ARE COMPLETE.
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RECEIVE ALL SIGNOFFS THAT
WORK IS COMPLETED AS PER
REQUIREMENTS. –
ARCHIVE ALL PROJECT ASSETS
CREATE AND DOCUMENT LESSONS
LEARNED
PROJECT CLOSURE PHASE
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THIS IS THE FINAL PHASE OF THE PROJECT LIFE
CYCLE.
DEVELOP CLOSURE PROCEDURES. DOCUMENT FINAL
PERFORMANCE REPORTING
HANDOFF COMPLETED PRODUCT. RELEASE
RESOURCES.
COMPLETE CONTRACT CLOSURES.
KEY OUTPUTS OF THIS PHASE ARE:
RECEIVE ALL SIGNOFFS THAT WORK IS
COMPLETED AS PER
REQUIREMENTS.
INDEX AND ARCHIVE ALL PROJECT
ASSETS
CREATE AND DOCUMENT LESSONS
LEARNED
CELEBRATE PROJECT SUCCESS!
PRECEDENCE DIAGRAMMING METHOD (PDM) IS A STRATEGY
FOR DEVELOPING A PROJECT SCHEDULE NETWORK DIAGRAM
THAT UTILIZES NODES TO REPRESENT ACTIVITIES AND ASSOCIATES
THEM WITH PROJECTILES THAT ILLUSTRATE THE DEPENDENCIES.
NB. DPWH D.O. 133, S. 2015
USE OF SOFTWARE
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THERE ARE SEVERAL PROJECT MANAGEMENT
SOFTWARES IN THE MARKET.
COMMON PAID SOFTWARE IS MS PROJECT.
FREE PROJECT MANAGEMENT SOFTWARE
THE CRITICAL PATH (OR PATHS) IS THE LONGEST PATH (IN TIME)
FROM START TO FINISH; IT INDICATES THE MINIMUM TIME
NECESSARY TO COMPLETE THE ENTIRE PROJECT.
PROJECTLIBRE IS AN OPEN SOURCE, FREELY AVAILABLE
PROJECT MANAGEMENT SOFTWARE SYSTEM
INTENDED ULTIMATELY AS A STANDALONE
REPLACEMENT FOR MICROSOFT PROJECT.
CURRENTLY, PROJECTLIBRE IS CERTIFIED TO RUN ON
LINUX, MACOS AND MS WINDOWS.IT IS RELEASED
UNDER THE COMMON PUBLIC ATTRIBUTION LICENSE
(CPAL) AND QUALIFIES AS FREE SOFTWARE
ACCORDING TO THE FREE SOFTWARE FOUNDATION.
COMMON TERMS
BRAINSTORMING- THE GATHERING OF IDEAS RELATED TO PROJECT
AND PRODUCT REQUIREMENTS.
WORK BREAKDOWN STRUCTURE -A HIERARCHICAL
DECOMPOSITION OF THE TOTAL SCOPE OF WORK TO BE CARRIED
OUT BY THE PROJECT TEAM TO ACCOMPLISH THE PROJECT
OBJECTIVES AND CREATE THE REQUIRED DELIVERABLES.
GANTT CHART- A VISUAL VIEW OF TASKS SCHEDULED OVER TIME.
SHALLOW IF IT IS LESS THAN 50 FEET DEEP. THE SOURCE OF A WELL
IS AN AQUIFER.
S-CURVE - AN S-CURVE IS A MATHEMATICAL GRAPH THAT
DEPICTS RELEVANT CUMULATIVE DATA FOR A PROJECT—SUCH AS
COST OR MAN HOURS—PLOTTED AGAINST TIME.
DEEP WELL MAY REFER TO: A WATER WELL, AN EXCAVATION OR
STRUCTURE CREATED TO ACCESS GROUNDWATER IN
UNDERGROUND AQUIFERS. DEEP WELL DRILLING, THE PROCESS OF
DRILLING AN OIL OR GAS WELL TO A DEPTH OF 10,000 FEET OR
MORE.
OCMP - OVERHEAD, CONTINGENCY , MISCELLANEOUS (OPTIONAL),
PROFIT
-----------------------------------------------------------------------------------GEORGE TERRY- POSDCON
PLANNING
ORGANIZING
STAFFING
DIRECTING
CONTROLLING
1. ILANG PERCENT ANG NAKALAAN FOR CONTINGENCY PLAN?
ANS: 5-10%
2. ANONG TAWAG SA PAGLILIPAT NG EQUIPMENT, SUPPLIES SA
SITE?
ANS: MOBILIZATION
3. ANONG IBIGSABIHIN NG PERFORMANCE BOND OR
CONSTRUCTION BOND?
A FINANCIAL GUARANTEE THAT THE TERMS OF A CONTRACT WILL
BE HONORED. IF ONE PARTY TO A CONTRACT CANNOT COMPLETE
THEIR OBLIGATIONS, THE BOND IS PAID OUT TO THE OTHER PARTY
TO COMPENSATE FOR THEIR DAMAGES OR COSTS.
WHAT IS A VARIATION ORDER? A VARIATION ORDER REFERS TO
ANY INCREASE/DECREASE IN QUANTITIES WITHIN THE GENERAL
SCOPE OF THE PROJECT AS BID AND AWARDED, IN ANY OF THE
FOLLOWING ASPECTS: INTRODUCTION OF NEW WORK ITEMS THAT
ARE NOT INCLUDED IN THE ORIGINAL CONTRACT; OR.
A SHALLOW WELL IS A HOLE WHICH HAS BEEN DUG, BORED,
DRIVEN OR DRILLED INTO THE GROUND FOR THE PURPOSE OF
EXTRACTING WATER IS A WELL. A WELL IS CONSIDERED TO BE
WHAT TEMPORARY FACILITIES DO YOU NEED ON CONSTRUCTION
SITES?
TEMPORARY FACILITIES. E.G. A SITE OFFICE, TOILETS, AND OTHER
WELFARE FACILITIES.
TEMPORARY FACILITIES AND THE NECESSARY CONTROLS FOR THE
PROJECT INCLUDING UTILITIES, TELEPHONE, SANITARY FACILITIES,
FIELD OFFICE, STORAGE SHEDS AND BUILDING, SAFETY
REQUIREMENTS
PROJECT CHARTER- PROJECT CHARTER IS A FORMAL SHORT
DOCUMENT THAT STATES A PROJECT EXISTS AND PROVIDES
PROJECT MANAGERS WITH WRITTEN AUTHORITY TO BEGIN WORK.
A PROJECT CHARTER DOCUMENT DESCRIBES A PROJECT TO CREATE
A SHARED UNDERSTANDING OF ITS GOALS, OBJECTIVES AND
RESOURCE REQUIREMENTS BEFORE THE PROJECT IS SCOPED OUT IN
DETAIL.
-PUNCHLIST- AFTER MAGAWA NG CONSTRUCTION MERON PANG
FINAL INSPECTION
EXAMPLE: KUNG NA FURNISH N ABA LAHAT NG WALLS? ETC…
-STAKEHOLDERS- LAHAT NG TAONG INVOLVE SA CONSTRUCTION
-OCCUPANCY PERMIT - BUILDING OFFICIAL
- PAG DI NA MEET YUNG EXACT TIME SISINGILIN KA NG
LIQUIDATED DAMAGES
-YUNG MGA WALA NA SA CONTRACT NA ADDITIONAL WORKS,
DYAN PINAPASOK SA SCOPE CREEP
GROUP 1
1. IS IT POSSIBLE NOT TO DO PRE-CONSTRUCTION IN A
PROJECT?
ANS. (YES. IT DEPENDS ON THE SIZE OF A PROJECT. IT IS USUALLY
NOT APPLIED IN SMALL SCALE PROJECTS E.G. RESIDENTIALS)
2. IN WHAT STEPS OF PRE-CONSTRUCTION DOES THE
CONTRACTOR INVOLVED IN A PROJECT?
ANS.
- PROCUREMENT/BIDDING
- CONSTRUCTION
3. WHAT ARE THE STEPS OF A BIDDING PROCESS?
ANS.
1. INVITATION TO BID
2. PRE-BID
3. SUBMISSION AND RECEIPTS OF BIDS
4. BID EVALUATION AND RATING
5. POST-QUALIFICATION
(CHECKING THE FINISHED PROJECTS MADE BY THE CONTRACTOR AS
WELL AS THE AVAILABILITY OF EQUIPMENTS, TOOLS, ETC.)
6. BID SELECTION
NOTE: THE SELECTED BIDDER WILL THEN RECEIVE (NOA - NOTICE OF
AWARD) AND WILL WAIT FOR THE (NTP - NOTICE TO PROCEED) TO
BE RELEASED BEFORE STARTING THE CONSTRUCTION.
GROUP 4: SITE LAYOUT PLAN
1. IT IS THE TRANSPORT OF CONSTRUCTION MATERIALS FROM ONE
PLACE TO ANOTHER OR TO CONSTRUCTION SITE.
-MOBILIZATION
2. IS IT ALLOWED TO USE THE ZONING SETBACK FOR
TEMPORARY FACILITIES DURING CONSTRUCTION?
-YES, BECAUSE TEMPORARY FACILITIES ARE UTILIZED AND BUILT
DURING CONSTRUCTION ONLY. IT WILL BE PERMISSIBLE AS LONG AS
IT WILL NOT POSE HAZARD OR NUISANCE TO NEIGHBORING
PROPERTIES.
3. IT IS A TYPE OF WATER SOURCE THAT PROVIDES WATER
SUPPLY FOR CONSTRUCTION ACTIVITIES.
-DEEP WELL
1.) management
2.) planning
motivation
leadership
10. ) innovation
CONSTRUCTION TOOLS
1. gantt chart
2. work breakdown structure (WBS)
3. s curve
4. precedence diagram method
5. critical path
Triple Constraints
1. time
2. cost
3.
scope
PRE CONSTRUCTION
- OWNER
- PROJECT MANAGER
- ARCHITECTURAL TEAM
- GENERAL CONTRACTOR
- CONTRACT ADMIN
APPROACHES
- SCIENTIFIC MANAGEMENT THEORY
• TAYLOR'S SYSTEM CLEARLY MEANT THAT TIME WAS OF THE ESSENCE. HIS CRITICS OBJECTED TO THE "SPEED UP" CONDITIONS
THAT PLACED UNDUE PRESSURES ON EMPLOYEES TO PERFORM AT FASTER AND FASTER LEVELS.
- CLASSICAL ORGANIZATION THEORY
• CLASSICAL ORGANIZATION THEORY CONCERNED ABOUT THE NEED TO FIND GUIDELINES FOR MANAGING COMPLEX
ORGANIZATIONS SUCH AS FACTORIES.
- BEHAVIOURAL MANAGEMENT THEORY
• THIS THEORY PUTS MORE EMPHASIS ON INDIVIDUAL’S ATTITUDES
• HUMAN RELATION MOVEMENT
• INTERACT WITH THEIR EMPLOYEES.
• BEHAVIOURAL SCIENCE APPROACH
• IMPROVED VERSION OF THE HUMAN RELATIONS APPROACH
- MODERN APPROACHES – QUANTITATIVE APPROACH
• THIS APPROACH HAS BEEN CALLED AS THE MANAGEMENT SCIENCE APPROACH.
• THE FOCUS OF THE QUANTITATIVE APPROACH IS ON DECISION MAKING
- SYSTEM APPROACH
• THIS APPROACH IS AIMED AT IDENTIFYING THE NATURE OF RELATIONSHIP AMONG VARIOUS COMPONENTS OF THE ORGANIZATION
WHICH IS CONSIDERED AS LARGER SYSTEM.
• FLOW
• FEEDBACK
- CONTINGENCY APPROACH
• PARTICULAR