1. Land & Construction Management II Management Theory 1 Contract Strategies Planning Techniques Management Theory 2

2. Land & Construction Management II Management Theory 1 Contract Strategies Planning Techniques Management Theory 2

3. Introduction to Management Theory

4. Learning Objectives: To understand the way in which management thought has evolved in the West since 1900; To appreciate how these 'theories' may be applied in Hong Kong today; To compare and contrast the various theories presented.

5. Management Theory Exercise Prepare a five minute presentation on the work of one of the authors featured in Writers on Organisations, 1996, 5th ed, D S Pugh & D J Hickson. Use this book as your initial source of information. Indicate the main points in their work and discuss how these points might be applied to management today in Hong Kong and elsewhere. This session will be undertaken by splitting the class into three equal groups after week 4. Class reps are to ensure that the writers are equally represented in the presentations, i.e. no more than three presentations on any one writer.

6. Your Management Thoughts

7. Evolution of Management Thinking

8. The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

9. The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

10. 1. The Classical School

11. Classical School

12. Henri Fayol: - 5 Functions of Management - 14 Principles of Management Classical School

13. 5 Functions of Management

14. 14 Principles of Management

16. Classical School Key Points

17. Classical School - Key Points

18. Classical School Critique

19. [The writings of the classical school] ‘have served to label our areas of ignorance, and may have fulfilled the need of telling managers what they should be doing (even if it did not tell them what they did). But the classical school has for too long served to block our search for a deeper understanding of the work of the manager.’ Mintzberg (1973) Classical School - Critique

20. The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

21. 2. The Human Relations School

22. Human Relations School

23. Douglas McGregor Human Relations School

26. Key Points

27. Human Relation School – Key Points

28. Human Relations School Critique

29. Human Relations School - Critique

30. The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

31. 3. The Systems School

32. Systems School

33. Organisational System Johnson, Kast & Rosenweig (in “The Theory and Management of Systems”. 3 rd Ed.) Goals & Values Managerial Subsystem Technical Subsystem Psychosocial Subsystem Structural Subsystem

34. Socio-technical System A Client need to build Satisfaction of the client need Start End Building Process Design Construction Co-ordination Higgin & Jessop (1965)

35. ‘If the structure [of an organisation] is its skeleton, the jobs, perhaps, its muscles, the people its blood and guts and its physical perspectives its flesh, then there still remains the nervous system, the respiratory system, the circulation system, the digestive system, etc. As with the body, the systems of an organisation overlap and interlink the parts, the structure and its members. They are of a different logical order from the structure or the components pieces, for they are defined by their purpose, and are concerned with flows or processes through the structure. They are in fact ‘systems’ - it remains the best, if the vaguest, word meaning at its broadest only an interdependent set of elements.’ Handy (1985) Systems School

36. ‘If the structure [of an organisation] is its skeleton, the jobs, perhaps, its muscles, the people its blood and guts and its physical perspectives its flesh, then there still remains the nervous system, the respiratory system, the circulation system, the digestive system, etc. As with the body, the systems of an organisation overlap and interlink the parts, the structure and its members. They are of a different logical order from the structure or the components pieces, for they are defined by their purpose, and are concerned with flows or processes through the structure. They are in fact ‘systems’ - it remains the best, if the vaguest, word meaning at its broadest only an interdependent set of elements.’ Handy (1985) Systems School

37. Critique

38. Systems School - Critique

39. The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

41. Reappraisal of the role of management theories. Each theory or school of thought can be no longer viewed as an independent approach. Rather than searching for the one best way to organise under all conditions, develop contingent upon the demands of the orgainsation task, technology, or external environment. Contingency School

42. Burns and Stalker‘s Two Types of Organisation Mechanistic Organisation Organic Organisation StructureRigidFlexible Tasks, methods and duties Well-definedConstantly adjusted CommunicationsVertical Hierarchy Lateral Hierarchy

43. Mechanistic Organisation Organic Organisation Most appropriate for Routine activities Non-routine activities Major concernProductivityCreativity & innovation Decision makingProgrammableEncourage self- exploring Lawrence and Lorsch (1967)

44. ‘Contingency theory suggests that “organisational variables are in a complex inter-relationship with one another and with conditions in the environment”, and that environmental contingencies act as constraints and opportunities and influence the organisation’s internal structures and processes.’ Lawrence and Lorsch (1967) Contingency School

45. Construction Industry

46. The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

47. The Four Schools Key points

48. The Four Schools - Key Points

49. Management Theory Pre-Assignment Read Chapter 1, 2 and 3 of ‘The Practice of Construction Management’ Obtain a copy of ‘Writers on organisations’

50. Management Theory Exercise Prepare a five minute presentation on the work of one of the authors featured in Writers on Organisations, 1996, 5th ed, D S Pugh & D J Hickson. Use this book as your initial source of information. Indicate the main points in their work and discuss how these points might be applied to management today in Hong Kong and elsewhere. This session will be undertaken by splitting the class into three equal groups after week 4. Class reps are to ensure that the writers are equally represented in the presentations, i.e. no more than three presentations on any one writer.

51. Video Viewing ‘Decisions, Decisions’ ( A vital management skill )

52. ‘Decisions, Decisions’ Two separate but interlinked stages of the decision process: –making the decision –making it happen

53. ‘Decisions, Decisions’ A simple approach to take decisions: –Collect the facts –Consult the people –Make the decision –Communication the decision –Check