SYSTEM AND CONTINGENCY 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY GENERAL SYSTEM THEORY “A system is defined as an organised. unitary whole composed of two or more interdependent parts, components, or subsystems and delineated by identifiable boundaries from its environmental suprasystem.” - (Kast + Rosenweig, pg. 103) 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY “Basically any group of entities which are functionally interdependent can be called a system.” Any group of entities which are interrelated so as to perform some functions, or reach some goals, can be seen to be acting as a system”. - (Open Universal, 24) 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY SYSTEM APPROACH General System Theory - Ludwig von Bertalanffy. The theory of Open System in Physics and Biology – Science JAN. 13, 1950, PP. 23 – 29. 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY Biological System Electrical System Mechanical System Human System. Skeleton subsystem Nerves subsystem Blood circulation subsystem Muscular subsystem Social System Social Organisation Business Organisation 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY ORGANISATION AS A SYSTEM MANAGEMENT GOALS & VALUES TECHNICAL STRUCTURE ENVIRONMENT ENVIRONMENT PSYCHOSOCIAL ENVIRONMENT 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

Environmental Systems Environmental Systems Managerial Subsystems Goals & Values Managerial Subsystems Technical Psychosocial Structural The Organisational System 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY Goals & Values Culture philosophy overall goals group goals individual goals Psychosocial Human source Motivation Group dynamic Leadership Communications Interpersonal relations 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY Structural Task Work flow Work group Authority Information flow procedure and rules Technical Knowledge Techniques Facilities Equipment Managerial Subsystems Goal setting Planning Organising 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

THE MODERN VIEW: SYSTEMS AND CONTINGENCY CONCEPTS Subsystems or Components. Holism, Synergism, Organicism, and Gestalt Open Systems View Input-Transformation-Output Model System Boundaries Negative Entropy Steady State, Dynamic Equilibrium and Homeostasis Feedback Hierarchy Internal Elaboration Multiple Goal Seeking Equifinality of Open Systems 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

ORGANISATION AS AN OPEN SYSTEM Dynamic Stability Input Organisasi Output Transform resources and add value TRANSFORM Materials Money Effort Others. Products Services Goods Satisfaction Growth & survival Organisasi Sebagai Sistem Penukaran (Organisation as Transformation System) 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

KONTINGENCY VIEW ON ORGANISATION The contingency view seek to understand the inter-relationship within and among subsystem as well as between organisation and its environment and to define patterns of relationship or configurations of variables. Multivariate nature organisation How organisation operates under varying conditions and specific circumstances. Suggested organisation design and managerial action most appropriate. 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY APPROPRIATE PATTERN OF RELATIONSHIPS STABLE – MECHANISTIC ORGANISATION When: 1. Stable environment 2. Well defined goals and enduring goals. 3. Uniform and stable technology. 4. Routine activities and productivity is a major objective. 5. Decision making is programmable, coordination and control are tightly structured. ADAPTIVE ORGANIC ORGANISATION When: 1. Unstable and uncertain environment 2. Goals are diverse and changing. 3. Technology is complex and dynamic 4. Non- routine activities – need creativity and innovation. 5. Heuristic decision making. 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

CONTIGENCY VIEW OF MANAGEMENT Contigency views recognise both similarities and differences among organisation. Primary managerial role is to seek congrerence between organisation and its environment and among its subsystems. - Facilitate thorough understanding of complex situation and appropriate managerial action. 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

OPEN & CLOSE SYSTEM & ENVIRONMENT Stable, Predictable Tight Control Loose, Flexible Unstable, Uncertain 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY CONCLUSION System concepts are diverted toward providing a broad model for understanding all organisations. Contingency views recognise that the environment and internal subsystems of each organisation are unique and provide a basis for designing and managing specific organisations. 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY IN CONSTRUCTION 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

INPUT – CONVERSION – OUTPUT MODEL CONSTRUCTION PRODUCTION MANAGEMENT MANPOWER MANAGEMENT FEEDBACK MATERIALS MANAGEMENT CONSTRUCTION PRODUCTION MANAGEMENT PLANT MANAGEMENT BUILDINGS REPUTATION FINANCIAL MANAGEMENT 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

6 CONSTRUCTION PRODUCTION MANAGEMENT 4 ORGANISATIONAL SYSTEM A systems model of the construction organisation 2 ENVIRONMENTAL 3 STRATEGIC SYSTEM 5 INFORMATION SYSTEM 7 MANAGEMENT SYSTEM MANPOWER MANAGEMENT 2 MATERIAL MANAGEMENT 6 CONSTRUCTION PRODUCTION MANAGEMENT 3 7 MARKETING 4 PLANT MANAGEMENT FINANCIAL MANAGEMENT 5 4 ORGANISATIONAL SYSTEM 6 SOCIAL SYSTEM SYSTEM 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

SYSTEM MODEL AND CONSTRUCTION ORGANISATION PRIMARY TASK To obtain and execute construction projects to the clients satisfaction whilst meeting stakeholders objectives. BOUNDARY Definition is not easy It is an abstract conception – not physical. Must share the same goals of the system – what is inside. Including staff directly employed Assets owned by the firms. Include building site – temporarily owned. 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY CONSTRUCTION ORGANISATION SYSTEM Strategic Subsystem Perform the task of deciding and managing the L/term direction. Receive inputs in form of Mkt. Intelligence, assessments of current capabilities. Output – strategic, administrative and operating decisions. Structural Subsystem Differemtiation in a rational way Integration and coordination of activities. Imput to C/P environmental and organisation characteristics, current utilities and stakeholders attitude. Output – formal organisation structure and informal structure and complementary culture. 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY Social Subsystem Input – is people - process of motivation group formation, leadership, communication , etc. Output – satisfied, committed and involved personnel. The Information Subsystem Strategic Administrative – coordinatif. Operational Output – primary decision dan action - motivating environment to facilitate the implementation of decisions. 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY TENDER PREDESIGN DESIGN CONSTRN OCCUPATN PROJECT OBJECTIVES CONSTRUCTION PROCESS CONSTRUCTON PROJECT – A PROSES 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

MULTIPLE EXPERTISE INPUT PROJECT MANAGEMENT – AN ORGANISATION PROJECT OBJEKTIVES MANAGEMENT PROJECT MANAGEMENT – AN ORGANISATION 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

MULTIPLE INPUT PROCESS MULTIPLE EXPERTISE AND ACTIVITIES PREDESIGN DESIGN CONSTRN OCCUPATN PROJECT OBJECTIVES MULTIPLE EXPERTISE AND ACTIVITIES MULTIPLE INPUT PROCESS 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY

AHAB/252/SYSTEM & CONTINGENCY THANK YOU 11/18/2018 AHAB/252/SYSTEM & CONTINGENCY