1. D39BU Business Management in the Built Environment
lesson 5 : strategic formulation
Structure follows Strategy”
Chandler, 1962.
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2. Alfred Chandler’s definition Unit 4 pg 2
Strategy is the determination of the long term goals and objectives of an enterprise and the adoption of courses of action to achieve or carry out these goals.
In his view, structure is determined by strategy and culture of the organisation
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3. Organisation structure affects the optimised allocation of resources
Business Management in the Built Environment
Organisation structure affects the optimised allocation of resources
Diagram : pg 2 of unit 2 - team building & organisation
Strategy
Market forces
Organisation politics
Merger/acquisition
communication
Structure
leadership
Culture
restructuring
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4. Organisation structure
Business Management in the Built Environment
Organisation structure
This is depicted by a simple OC – organisation chart Unit 2 Pg 4 showing : A) the position of the staff B) the chain of command C) Reporting relationships & communications Types of Organisations: from Pg 4-8 Functional Type Geographical Type Product based type Divisional type Matrix type
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5. Organisation Design – to determine span of control
Business Management in the Built Environment
Organisation Design – to determine span of control
This is governed by the following elements:
Assignment of tasks and responsibilities
Grouping of individual positions into units and departments
Determining various mechanisms for vertical and horizontal co –ordination
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6. Team Formation & Dynamics
Business Management in the Built Environment
Team Formation & Dynamics
Construction companies and built environment organisations are very labour intensive organisations, so teams and people influenced human behaviour due to different personality and types of leadership
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7. Business Management in the Built Environment
Bruce Tuckman’s 1965 Model
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8. 4 stages of team formation
Business Management in the Built Environment
4 stages of team formation
Stage 1: Forming
Stage 2: Storming
Stage 3 : Norming
Stage 4: Performing
Refer to Unit 2 pg 11
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9. IMPORTANCE OF TEAMWORK
Business Management in the Built Environment
IMPORTANCE OF TEAMWORK
INDIVDUALS CANNOT WORK ALONE IN BUILT ENVIRONMENT SO TRAINING FOR TEAM WORK IS VITAL FOR SUCCESS DIVERSE WORK TASKS AND LONG WORKING HOURS REQUIRE COHESIVENESS AND CO OPERATION SO EFFECTIVE TEAMS ARE THUS CRUCIAL FOR THE COMPLETION & DELIVERY OF PROJECTS (REFER TO TEXT)
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10. TEAM ROLES : M Belbin’s 1993 Model
Business Management in the Built Environment
TEAM ROLES : M Belbin’s 1993 Model
EVERY MEMBER PLAYS A VITAL ROLE IN EACH PROJECT – read Pg 13 -
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11. Business Management in the Built Environment Team building
TEAMS REALLY DO INFLUENCE PERFORMANCE IN A PROJECT WITHIN THE CONSTRUCTION ENVIRONMENT.
TEAMS PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS & PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMS
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12. Motivation & productivity
Business Management in the Built Environment
Motivation & productivity
Leaders motivate their co-workers and employees Employees are motivated by various needs to increase productivity and work towards organisational goals ….
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13. Maslow Hierarchy of Needs
Business Management in the Built Environment
Maslow Hierarchy of Needs
Unit 3 Pg 10
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14. HERZBERG’S MOTIVATORS
Business Management in the Built Environment
HERZBERG’S MOTIVATORS
Unit 3 Pg 11
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15. MCGREGOR’S THEORY X & Y Unit 3 Pg 12
Business Management in the Built Environment
Unit 3 Pg 12
MCGREGOR’S THEORY X & Y
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16. Business Management in the Built Environment
CULTURE AND ETHOS
Culture is a concept that is important in influencing the behaviour of members of an organisation/group .
Edgar Schein believed that there are 3 layers to the culture:
Level 1: Artefacts
Level 2 : Espoused values
Level 3: Basic assumptions
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17. Discussion and analysis (class discussion)
Business Management in the Built Environment
Discussion and analysis (class discussion)
A) identify examples of artefacts, espoused values and basic assumptions of the organisation you are working for B) Identify the different jobs/occupations such as Architects, QS, Project Managers, Civil Engineers and see what sets of cultural profiles they display C) How is culture communicated to the employees and clients?
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18. UNIT 3: Human Resource Management
Business Management in the Built Environment
UNIT 3: Human Resource Management
3.7 FUNCTIONS OF HR :
Recruitment and selection
Training and development
Human resource planning
Provision of contracts
Provision of fair treatment
Equal opportunities
Assessing performance of employees
Employee counselling
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19. Business Management in the Built Environment
3.8 Recruitment Unit 3 Pg 5
Recruitment is an HR function whereby the firm goes out into the marketplace to attract potential employees
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20. Business Management in the Built Environment
3.8.1Recruitment Planning
The HR manager can help to develop personnel forecasting and budgeting techniques as well as supplying forecasts of staffing needs, labour availability wages budgets and so on (Fryer, 2004).
In order to forecast the labour requirements the HR management should take into account the natural wastage of employees such as retirement and turnover. In addition to that, promoted employees create vacancies at lower levels
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21. Problems of forecasting manpower
Business Management in the Built Environment
Problems of forecasting manpower
One of the main problems in forecasting is obtaining reliable information from other managers. The current state of the labour market can be unknown or various departments might have an ambiguous view of their labour requirements. Therefore an employment plan must remain flexible. Demand for construction is not consistent. Technical innovations might change production methods. However these difficulties do not invalidate the need for a recruitment plan.
Even when the unemployment is high, finding certain types of skilled labour might be difficult. In such situations the planning must include provision for training the existing employees in order to meet needs.
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22. 3.8.3 Advertising and recruiting
Business Management in the Built Environment
3.8.3 Advertising and recruiting
The title of the job,
The title of the job holder’s manager,
The job location,
The purpose of the job,
A description of the job content,
A list of responsibilities,
Details of the subordinates,
Standards of performance expected,
Working conditions,
Prospects for career development.
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23. Recruiting Advertisement Pg 6
Business Management in the Built Environment
Recruiting Advertisement Pg 6
A job can be advertised externally or internally. Two typical approach and their implications are as follows;
Hidden recruitment uses company’s internal people and it is not advertised to outside world. Most firms use hidden advertisement in order to fill the senior roles within the company. However, this may exclude able outsiders who might bring new ideas and enthusiasm to the business.
It saves money from advertisements,
Successful applicant will be familiar to management and the company culture,
Such practice motivates other employees and inspires loyalty.
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24. Recruiting Advertisement
Business Management in the Built Environment
Recruiting Advertisement
A job advert should include a personnel specification of the ideal candidate. Various aspects of a typical personnel specifications list include the following;
Physical make-up including strength, health and professional appearance (within the ethical and legal boundaries defining anti-discrimination norms),
Skills and abilities,
Educational attainments,
General intelligence such as ability to think analytically or capacity for difficult mental work,
Specialised aptitudes such as reliability, self- confidence, and ability to work with others,
Interests such as social, practical or intellectual activities.
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25. The selection process may involve :
Business Management in the Built Environment
The selection process may involve :
Biographical information
Interviews
Selection tests and questions
Group methods
Work sample testing
Refer to Unit 3 Pg 5-6
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26. New Employee Orientation
Business Management in the Built Environment
New Employee Orientation
New employee orientation effectively integrates the new employee into an organization and assists with retention, motivation, job satisfaction, and quickly enabling each individual to become contributing members of the work team.
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27. Business Management in the Built Environment
Remuneration and pay
According to Levander (2001), people are paid more based on the following:
a.Education and training required to undertake the duties,
b.Experience required,
c.Originality and creativity in the job (such as art and design roles),
d.Complexity of the job,
e.Responsibility for others,
f. Mental and physical demands of the job,
g.Difficulty of the conditions over which job is done.
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28. Employing vs. Subcontracting Unit 3 Pg 14
Business Management in the Built Environment
Employing vs. Subcontracting Unit 3 Pg 14
What are the advantages of employing vs subcontracting
In the built environment projects?
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29. Business Management in the Built Environment
Exam questions on HR
1. Senior management is considering outsourcing its structural design development division. No final decision has been made but the outcome is likely to affect 40 employees. Produce a detailed report explaining the implications of both outsourcing and retaining the function within the organisation. (20 marks)
2. Large number of new local employees will need to be recruited mostly from local civil engineers, architects, surveyors and technicians. Produce a detailed report explaining good practice in the recruitment process.
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