Construction Management

SAFAT Collage of
Science & Technology

Eng. Mohamed Khalid Mohamed

 1.1- Introduction

 Organization implies structuring and integrating activities, that

is, people working or cooperating together in interdependent
relationship. Organization are: (1) goal-oriented, people with a
purpose; (2) psychosocial system, people using knowledge and
technique; (3) an integration of structured activities, people
working together in a patterned relationship.
 Management involves the coordination of human and material
resources towards objective accomplishment. Four basic
elements can be identified: (1) towards objective, (2) through
people, (3) via technique, and (4) in an organization.
It is helpful to distinguish organization theory and
management in order to provide a useful framework for
research and, teaching, and practice.
We suggest that organization theory is the body of
knowledge, including hypotheses and propositions,
stemming from research in a definable field of study which
can be termed organization science. Organization have
become increasingly complex over time. The trend begins
with the evaluation of organism, of which human beings
are the most complex example.
Development in science and technology have magnified trends
toward specialization. Scientists, researchers, technicians,
and other ‘knowledge workers’ are becoming increasingly
prevalent in organizations. Integration of their efforts
toward organization accomplishment can be difficult. There
may be difference in value system between scientists and
managers. The former may be concerned with effectiveness
of a product or process (i.e., striving for perfection), while
the manager may be more interested in efficiency (i.e.,
cost as related to effectiveness).
 What is an
Organization ?

Is a collection of  AAstructured
structuredsocial
socialsystem
 Is a collection of people
people who work system consisting
consisting ofand
of groups
who work together and
together and groups andworking
individuals individuals
coordinate their actions to
coordinate their workingtotogether
together to
meet some
achieve a wide variety of
actions to achieve a meet some agreed-
agreed-upon objectives.
goal
wide variety of goal upon objectives.
 Traditional Organization and Management
Concepts
 Management concepts and practice are influenced by the
ideologies of the broader society. Adam Smith (1776) in Wealth
of notion, provided the capitalistic ethic with its grand theory.
He argued for economic freedoms on the premise that
maximizing their self-interests, each persons would benefit the
total society. A systematic body of knowledge concerning
organization and management is the product of the late
nineteenth and the twentieth century. It is closely associated
with the industrial revaluation and the rise of large-scale
enterprises, which required the development of new
organization and management theory is based on contribution
from a number of sources, including scientific management,
administrative management theorists, the bureaucratic model,
microeconomic, and public administration. Eagle (1848) and
Marx (1876) saw the capitalistic system as a primary threat to
the social structure and recommended revolutionary remedies.
In 1936, Keynes provided the theoretical explanation for the
breakdown. (the great depression of the 1930s0
 Evolution Of Management

Classical Approaches Contemporary Approaches

1890 1900 1910 1920 1930 1940 1950 1960 1970

Quantitative Systems
Systematic Administrative Continge
management theory Current and
management management ncy
future revolutions
theory
Scientific Human
Management relations Organizational
behavior
Bureaucracy
Traditional (Classical ) Management Theory:
(1) Scientific Management Movement: Frederick W.
Taylor (1856-1915); the primary emphasis was on
planning, standardizing and improving the efficiency
of human work.
(2) Administrative Management Theory:
Henri Foyal (1841-1925) and H. Giant (1861-1919) ;
the primary emphasis was the fourteen principles
provided the basic foundation of this school.
(3) Bureaucratic Management Theory:
Max Weber (1864-1920); his viewed as the most
efficient form of complex organization.
 Systematic Management
Key concepts
Systematized manufacturing operations
Coordination of procedures and processes built into internal operations
Emphasis on economical operations, inventory management, and cost
control

Contributions
Beginning of formal management in the United States
Promotion of efficient, uninterrupted production

Limitations
Ignored relationship between an organization and it environment
Ignored differences in managers’ and workers’ views
 Scientific management

Frederick W. Taylor Enemy of the working man

Use time-and-motion study Use scientific approach: detailed

as a means of analyzing and observation and measurement of
standardizing work activities even the most routine work, to find
the optimum mode of performance

“He fused the perspective of an engineer w

ith an obsession for control”

1942
 Five principle of Taylor

• Shift all responsibility for the organization of work

from the worker to manager
• Use scientific methods to determine the most
efficient way of doing work
• Select the best person to perform the job thus
designed
• Train the worker to do the work efficiently
• Monitor worker performance to ensure that
appropriate work procedures are followed and that
appropriate results are achieved.
Scientific Management (cont.)
Key concepts
Used scientific methods to determine the “one best way’
Emphasized study of tasks, selection and training of workers, and
cooperation between workers and management
Contributions
Improved factory productivity and efficiency
Introduced scientific analysis to the workplace
Piece rate system equated worker rewards and performance
Limitations
Simplistic motivational assumptions
Workers viewed as parts of a machine
Potential for exploitation of labor
Excluded senior management tasks
 Administrative Management
 Emphasized the perspective of senior managers
 Five management functions
 planning
Henri Fayol
 organizing Classical Management
 commanding Theory
 coordinating
 controlling
 Fayol’s Principles of Management
 Division of Labor: allows for job specialization.
 Fayol noted jobs can have too much specialization
leading to poor quality and worker dissatisfaction.
 Authority and Responsibility
 Fayol included both formal and informal authority
resulting from special expertise.
 Unity of Command
 Employees should have only one boss.
 Fayol’s Principles of Management
(cont’d)
 Line of Authority
 A clear chain of command from top to bottom of
the firm.
 Centralization
 The degree to which authority rests at the top of
the organization.
 Unity of Direction
 A single plan of action to guide the organization.
 Fayol’s Principles of Management
(cont’d)
 Equity
 The provision of justice and the fair and impartial
treatment of all employees.
 Order
 The arrangement of employees where they will be of the
most value to the organization and to provide career
opportunities.
 Initiative
 The fostering of creativity and innovation by
encouraging employees to act on their own.
 Fayol’s Principles of Management
(cont’d)
 Discipline
 Obedient, applied, respectful employees are necessary
for the organization to function.
 Remuneration of Personnel
 An equitable uniform payment system that motivates
contributes to organizational success.
 Stability of Tenure of Personnel
 Long-term employment is important for the development
of skills that improve the organization’s performance.
 Fayol’s Principles of Management
(cont’d)
 Subordination of Individual Interest to the
Common Interest
 The interest of the organization takes precedence
over that of the individual employee.
 Esprit de corps
 Comradeship, shared enthusiasm foster devotion to
the common cause (organization).
Administrative Management (cont.)
Key concepts
Fayol’s five functions and 14 principles of management
Executives formulate the organization’s purpose, secure employees,
and maintain communications
Managers must respond to changing developments
Contributions
Viewed management as a profession that can be trained and developed
Emphasized the broad policy aspects of top-level managers
Offered universal managerial prescriptions
Limitations
Universal prescriptions need qualifications for
environmental, technological, and personnel factors
 Bureaucracy
 Bureaucratic structures can eliminate the
variability that results when managers in
the same organization have different
skills, experiences, and goals
 Allows large organizations to perform the
many routine activities necessary for
their survival
 People should be treated in unbiased
manner
 Personalities
 Max Weber
 Weber’s
Principles of
Bureaucracy
 Weber’s Five Principles of
Bureaucracy
 Authority is the power to hold people
accountable for their actions.
 Positions in the firm should be held based on
performance, not social contacts.
 Position duties are clearly identified so that
people know what is expected of them.
 Lines of authority should be clearly identified
such that workers know who reports to who.
 Rules, standard operating procedures (SOPs),
and norms guide the firm’s operations.
 The Behavioural and Management Science
Revolution

 Management science can be considered as a basic

extension of scientific management but with
modification. It is considered with the organization
primarily as an economic-technical system. the
primarily emphasis of this school is in the
establishment of normative models of managerial and
organizational behaviour for maximizing efficiency.
The second major segment came from the behaviour
science. They emphasize the psychosocial system with
primarily consideration of the human components.
 Elton Mayo (1927-1932) and his associate were the pioneer of
human relations school. Also concepts of organizational
behaviour have been strongly influenced by the theory of
motivation advanced by Maslow (1954). His hierarchy
directed the emphasis away from satisfaction of basic
economic and survival needs towards higher-level social,
esteem, and self actualization needs. Organizations are
complex systems made up of psychological, technical, and
economic elements that require intensive investigation. The
view that is emerging as a basis for modification theory focus
on system and contingency concepts. A system can be defined
as an organized, unitary whole composed of two or more
independent parts, components, or subsystem and delineated
by identifiable boundaries from its environmental
suprasystem. The open system is in continual interaction with
its environment and achieves a ‘steady state’ or dynamic
equilibrium.
 Human Relations

 Aimed to understand how psychological and social

processes interact with the work situation to influence
performance
 Hawthorne Studies
 Hawthorne Effect - workers perform and react differently
when researchers observe them
 Argued that managers should stress primarily employee
welfare, motivation, and communication
 Personalities
 Abraham Maslow
 Human Relations (cont.)
Key concepts
Productivity and employee behavior are influenced by the informal
work group
Cohesion, status, and group norms determine output
Social needs have precedence over economic needs
Contributions
Psychological and social processes influence performance
Maslow’s hierarchy of need
Limitations
Ignored workers’ rational side and the formal organization’s
contributions to productivity
Research overturned the simplistic belief that happy workers are more
productive
 Behavioral Organization
These early theories may not be valid, but they do form
the basis for contemporary theories and are still used by
practicing managers.

Maslow’s Hierarchy of Needs Theory

McGregor’s Theory X and Theory Y

Herzberg’s Two-Factor Theory

McClelland’s Theory of Needs

 Hierarchy of Needs Theory
Abraham H. Maslow, a psychologist in the 1940s developed the
hierarchy of needs theory. This theory remains valid today for
understanding human motivation, management training, and
personal development.

02/25/22 28
Physiological. Includes hunger, thirst, shelter, sex, and other bodily
needs.
• Safety. Includes security and protection from physical and
emotional harm.
e what one is capable of becoming.

Social. Includes affection, belongingness, acceptance, and

friendship.
• Esteem. Includes internal esteem factors such as self-respect,
autonomy, and
achievement; and external esteem factors such as status, recognition,
and
attention.
• Self-actualization. Includes growth, achieving one’s potential, and
self-fulfillment.
This is the drive to becoming
 Theory X and Theory Y (Douglas
McGregor)
 Douglas McGregor, an American social psychologist,
proposed in 1960 "McGregor's XY Theory". This
theory still remains central to organizational
development, and to improving organizational culture.

 This theory is a useful and simple reminder of the

natural rules for managing people, which under the
pressure of day-to-day business are all too easily
forgotten.
Theory X and Theory Y (Douglas
McGregor)
 Alderfer’s ERG Theory
 The theory was developed in the 1969 by a psychologist Clayton
Alderfer. It is an extension of Maslow's theory.

 Three groups of core needs:

 Existence (Maslow: physiological and safety)
 Relatedness (Maslow: social and status)

 Growth (Maslow: esteem and self-actualization)

 Removed the hierarchical assumption

 Can be motivated by all three at once
 Existence Needs
 Provides our basic material existence requirements
 They include Maslow’s physiological and safety needs.
 Relatedness Needs
 The desire we have for maintaining important
interpersonal relationships
 These social and status desires require interaction with
others.
 They align with Maslow’s social need and the external
component.
 Growth Needs
 An intrinsic desire for personal development
 These include the intrinsic component from Maslow’s
esteem category and the characteristics included under
self-actualization.
 McClelland’s Theory of Needs
McClelland’s theory of needs was developed by David
McClelland and his associates to help explain motivation.15 The
theory focuses on three needs: achievement,
power, and affiliation. They are defined as follows:
• Need for achievement. The drive to excel, to achieve in
relation to a set of
standards, to strive to succeed.
• Need for power. The need to make others behave in a way that
they would not
have behaved otherwise.
• Need for affiliation. The desire for friendly and close
interpersonal relationships.
 Herzberg's Motivator - Hygiene (Two-factor)
Theory
 Frederick Herzberg and his associates developed
the dual-structure theory in the late 1950s and
early1960s.

 He began by interviewing approximately two

hundred accountants and engineers in Pittsburgh.
He asked them to recall time when they felt
especially satisfied and motivated by their job and
times when they felt particularly dissatisfied and
unmotivated. The responses to the questions were
recorded and later subjected to the content
analysis.
Two-Factor Theory (Frederick
Herzberg)
Contrasting Views of Satisfaction
and Dissatisfaction

Presence Absence
Key Point:
Satisfaction and dissatisfaction are not opposites
but separate constructs

Extrinsic and Intrinsic and

Related to Related to
Dissatisfaction Satisfaction
Relationship of Various Needs
Theories

39
 Systems Theory
Key concepts
Organization is viewed as a managed system
Management must interact with the environment
Organizational goals must address effectiveness and efficiency
Organizations contain a series of subsystems
There are many avenues to the same outcome
Synergies enable the whole to be more than the sum of the parts

Contributions
Recognized the importance of the relationship between the
organization and the environment
Limitations
Does not provide specific guidance on the functions of managers
 Management and Organizational Behavioral
Science Research
 Pugh (1979) defined ‘organization theory’ as the
study of the structure and functioning of
organizations and behaviour of groups and
individuals between them.
 Organization and management of construction
activity, being a rather new and interdisciplinary
field of study, showed a relatively low development
in comparison with general organization theory
 The system approach to organizational
effectiveness combines elements from the
foregoing models and organizational process,
emphasizing their significance in terms of the
subsystems of the organization as well the
environment (Etzioni, 60; Parsons, 56; Metron, 57
ed. Sey et al., 1981).
Kast and Rosenzweig (1981) viewed the
organization as an open socio-technical system
composed of a number of subsystems, as illustrated
in Fig. 3. Under this view, an organization is not
simply a technical or a social system. Rather, it is
the structuring and integration of human activities
around various technologies.
Applying this concept to the construction industry,
the organization of a building project becomes a
process of structuring and integrating human
activities around various technologies. The network
of relationships and procedures created by the
organization structure of a project can be
considered as the third sub-system, mediating

between task and human subsystem.

Fig. 3 Interaction of Organizational Sub-Systems
(from Kast and Rosenzweig 1981)

Technical sub-
system

Structural
Goals and sub-system
values sub- Managerial
system sub-system

Psychosocial
sub-system

System/environment interaction
Input – Output flow of materials, energy
and information
The modified Kast and Rosenzweig (1981)
model (Fig. 3) by Harding (1980), (see Fig.
4) called for a view of construction
organization as a system composed of six
subsystems:
the people subsystem,
the technology subsystem,
the managing subsystem,
the purpose subsystem,
the culture subsystem, and
the structure subsystem.
Fig 4 Harding’s Model of Construction Organization
(1980)

Subsystem/environment
interaction

Purpose sub-
system

People sub-
Managing system
subsystem

Culture
sub-system

System/environment
interaction

Technology
Structure sub-system
sub-system
Shaddad (1983, pp.82-87) argued that Harding's (1980,
pp.16-22) model does not put emphasis on the role of
the managerial subsystem as an integrating and
controlling factor of the other subsystem. Shaddad
(1983), proposed a more comprehensive model (see Fig.
5), suggesting that the project managerial activities can
achieve a maximum productivity of the construction
project by the following
seven subsystems: -
- Organization of the environmental subsystem,
- Organization of the resources composition subsystem,
- Organization of the capital resources subsystem,
- Organization of the information subsystem,
- Organization of the structural subsystem,
- Organization of the training and selection subsystem,
&
- Organization of the motivational subsystem,
Fig 5 Modified Model of a Construction Organization by
Shaddad (1983)
Fig 5 Modified Model of a Construction
Organization by Shaddad (1983)

Political

Designer
Client

ORGANIZTION OF
MOTIVATIONAL
SUBSYSTEM
VARIABLE 2.6 Fin-
Indu anc-
strial ORGANIZTION OF ial
- relat ENVIROMENT
SUBSYSTEM VARIABLE
ion 2.7
ORGANIZTION OF
INFORMATION
SUBSYSTEM
VARIABLE 2.5

ORGANIZTION OF PROJECT
TRAINING & MANAGERIAL
SELECTION ACTIVITIES
SUBSYSTEM VARIABLE 1.1
VARIABLE 2.1

ORGANIZTION OF
COMPOSITION Soc-
SUBSYSTEM VARIABLE
2.4
ial

Indu ORGANIZTION OF
STRuCTURAL
str SUBSYSTEM VARIABLE
-ialis 2.2 ORGANIZTION OF
CAPITAL SUBSYSTEM
ation VARIABLE 2.3
Supplier

Producer

Social

Geographical
The subsequent stages of this study will be directed
towards the operationalization and integration of
the seven interrelated subsystem variables
(Shaddad's model Fig. 5) with the aim of developing
the conceptual framework of the determinates of
performance of the project as in organizations-
behaviour science model (Fig. 6). The variables listed
above will be taken into consideration in terms of
both:
- Parents’ organization,
- The project organization.
The weighing of these variables may differ
according to the level in question. It is also
necessary to consider the interaction of these levels
in the formulation of the model. The
operationalization of the variables in the framework
presented will be followed by empirical testing of
the model.
The basic casual model in Fig. 6 (Conceptual Framework
of the Determinates of Productivity in
Organizations-Behaviour Science Approach (Kopelman,
1986) links project managerial activities the primary
variable, with system performance, the end result. The
model as hypothesized states that system performance the
end-result variable, is a function of all seven variables
causing changes in system performance through a number
of unspecified intervening variables. Although considerable
improvement in system performance of the project can be
achieved through improvement in any one of these
subsystems to maximize system performance. Feedback
mechanisms are fundamental to any process based upon
the scientific method.
 Environment
Organizational
Characteristics

Reward systems Goal

setting And MBO
Selection, Training
&Development
Leadership
Organization Knowledge, Skills,
structure abilities,
Motivation Beliefs
and Values
Attitudes
Work Individual
Characteristics Characteristics

Objective
Performance
Feedback
Judgmental Work Behavior
Performance Productivity
Feedback
Job design
Work schedule

Work Performance
Productivity

End
Results

Organizational
Effectiveness
Productivity

Fig. 5

Environment
Proposed of the Framework of an Analytical Model
in Evaluating
of the Effectiveness of Project Organization

INPUT TRANSFORMATION OUTPUT

SYSTEM

FEEDBACK

Fig. 7 General Model of Organization as an Open System

by Kast and Rosenzweig (1981)
Kast and Rosenzweig (1981) considered
organization in terms of a general open-
system model as in Fig. 7. The open system
is in continual interaction with the
environment and achieves a “steady state”
or dynamic equilibrium while still retaining
the capacity for work or energy
transformation. The survival of the system,
in effect, would not be possible without
continuous inflow, transformation, and
outflow. A system model allows the
investigation of the interrelationship
between the parts (subsystem) and how
the relate to the whole (building process or
industry).
The above model by Kast & Rosenzweig (1981) in
Fig. 7, linking project Managerial Activities, a
primary variable with System Performance of the
project, can be elaborated further to include the
seven managerial subsystem as suggested by the
conceptual model presented by Shaddad in Fig. 5. A
simplified result is a schematic causal model shown
in Fig. 8, with a modification of adding Human
Resources Management as central and secondary
variable.
The modified model in Fig. 8, hypothesis the
basic model linking a managerial activities as an
input (as primary variable) with a transformation
elements, the seven subsystem (as intermediate
variables) and their affect on human resources
development (as secondary variable) with the
output, system performance of the project (as an
end variable). The basic objective of this thesis is
the study of the influence of managerial activities on
system performance of the project.
 Feedback PROJECT MANAGERIAL
ACTIVITIES VARIABLE
1.1

ORGANIZTION OF
MOTIVATIONAL
SUBSYSTEM
VARIABLE 2.6

ORGANIZTION OF
ENVIROMENT
SUBSYSTEM
VARIABLE 2.7 ORGANIZTION OF
INFORMATION
SUBSYSTEM
VARIABLE 2.5

ORGANIZTION HUMAN
OF TRAINING & RESOURCES
SELECTION MANAGEMENT
SUBSYSTEM VARIABLE 3.1
VARIABLE 2.1
ORGANIZTION OF
COMPOSITION
SUBSYSTEM
VARIABLE 2.4

ORGANIZTION OF
STRUCTURAL
SUBSYSTEM
VARIABLE 2.2 ORGANIZTION OF
CAPITAL SUBSYSTEM
VARIABLE 2.3

OUTPUT

Feedback
PROJECT PERFORMANCE
END VARIABLE 1.1

Fig. 8 Modified and Basic Model linking Project Managerial Activities With System Performance of a Project