CONSTRUCTION PROJECT

MANAGEMENT
ECM 566

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Topics

• Introduction to management concepts

• History and current developments in project management.
• Project management in Malaysia
• Project definition
• Project planning
• Project monitoring and control
• Project closure
• Earned Value Management
• Roles and Responsibilities of Project Manager

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 Today’s Lesson
INTRODUCTION TO MANAGEMENT CONCEPTS

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WHAT IS WORK?

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WHAT IS WORK?

Definition of Work in Physics

When a force acts to move an object, we say

that Work was done on the object by the
Force.

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 WHAT IS WORK?

Work (in management) is an

activity that produces value for
other people

The need for work to be done well enough that people, organizations, and society as a whole may
prosper is what makes the study of “managers” and “management” so meaningful.

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WHAT IS MANAGEMENT?

Management is the process of

planning, leading, and
controlling the use of resources
to accomplish performance
goals

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WHAT IS MANAGEMENT?

“The art of getting things

done through people”

[M. P. Follett, quoted in Daft

1993]

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WHAT IS MANAGEMENT?

“The Manager’s job can be

broadly defined as
deciding what should
be done and getting other
people
to do it.”

[Rosemary Stewart quoted in

Mullins 1999]
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WHAT IS MANAGER?

A manager is a person in an
organization who is responsible
for the work performance of one
or more other persons

Managers serve in positions with wide variety of titles, such as supervisor, team leader,
division head, administrator, vice president and so on.

Managers are persons to whom others report

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What is a Manager?

• Someone whose primary responsibility is to carry out the

management process

• Someone who plans and makes decisions, organizes, leads, and

controls human, financial, physical, and information resources
[Griffin 2003]

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WHAT DO MANAGERS DO?

• Effective managers utilize organizational resources in ways that

result in the following:
• High performance outcomes
1. Performance effectiveness
2. Performance efficiency

• High levels of satisfaction among people doing the work

1. Quality of work life

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What Do We Mean By…

• Effectiveness?
• The degree to which goals are achieved
• Making the right decisions and successfully implementing
them
• Doing the right things in the right way at the
right times

• Efficiency?
• Using minimal resources to produce the desired volume
of output
• Using resources wisely and in a cost-effective way
• Operating in such a way that resources are not wasted

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 Performance Effectiveness and
Performance Efficiency
Effective but not efficient: Effective and
efficient:Goals achieved
High Some resources wasted
and resources well
utilized; area of high
Goal performance

attainment Neither effective nor Efficient but not

efficient: effective:No wasted
Poor resources, but goals not
Goals not achieved;
achieved
resources wasted in the
process
Poor Good

Resource
Utilization
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WORK LIFE

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 A high quality of work life
offers such things as
• Adequate and fair pay for a job well done
• Safe and healthy working conditions
• Opportunity to learn and use new skills
• Room to grow and progress in a career
• Protection of individual rights
• Pride in the work itself and the organization

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THE MANAGERS CHALLENGE

Manager’s Boss

Accountability
Work Unit
performance:
Production Manager Effectiveness and
Efficiency
Dependency

Manager’s
Subordinates

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Key Concepts of Management

 The four functions of management

• Planning
• Organizing
• Leading
• Controlling
Sometimes a fifth is added:
• Staffing

 Attainment of organizational goals in an

effective & efficient manner
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Four Functions Defined

• Planning
• Setting an organization’s goals and selecting a course of
action from a set of alternatives to achieve them [Griffin 2003]
• Deciding in advance what to do, how to do it, when to do it,
and who is to do it

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• Organizing

• Determining how activities and resources are grouped [Griffin

2003]
• Determining the composition of work groups and the way in
which work and activities are to be coordinated

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Four Functions Defined

• Leading

• The set of processes used to get

organizational members to work together
to advance the interests of the organization
[Griffin 2003]
• Motivating and communicating with the
organization’s human resources to ensure
goals are attained

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Four Functions Defined

• Controlling

• Monitoring organizational progress towards goals [Griffin 2003]

• The process of comparing results and expectations and making the
appropriate changes

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• And that pesky fifth one: Staffing

• The recruitment, selection, assignment, training, development, evaluation

and compensation of staff

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Management Levels (typical)

/CIO

CTO

SOURCE: Adapted from Thomas V. Bonoma and Joseph C. Lawler, “Chutes and Ladders: Growing the General Manager,” Sloan Management Review (Spring 1989), 27-37.
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Management Levels Defined

 First line Managers

 directly responsible for day-to-day operations
 supervise and coordinate the activities of operating
employees
 Middle Managers
 work in the middle levels of the organization
 responsible for sections or departments
 supervise and coordinate the activities of
lower-level managers
 responsible for implementing the policies and plans
of top managers

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Management Levels Defined

• Top (or Senior) Managers

• usually form a team
• manage the organization’s overall goals, strategy, and
operating policies
• responsible for the entire enterprise
• Middle and first line managers may also be:
• Functional Managers
• responsible for a distinct function in the enterprise

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 Horizontal Differences
• Functional managers
• Responsible for departments that perform a single functional
task

 General managers
 Responsible for several departments that perform different
functions 31
Managers by Area

• Marketing Managers
• Work in areas related to getting consumers and clients to buy
the organization’s products or services
• Financial Managers
• Deal primarily with an organization’s financial resources
• Operations Managers
• Concerned with creating and managing the systems that
create organization’s products and services
• May be IT managers in IT businesses (but even
then are primarily focused on production)
[Griffin 2003]

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Manager by Area

• Human Resource Managers

• Human resource planning, recruiting and selection, training
and development, designing compensation and benefit
systems, formulating performance appraisal systems
• Administrative Managers
• Generalists familiar with all functional areas of management
and who are not associated with any particular management
specialty
• Other Kinds of Managers
• Specialized managerial positions directly related to the
needs of the organization
• May include IT management
[Griffin 2003]

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Henry Mintzberg (Management Theorist)

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 Characteristics of Management
‘What managers actually do?’ study by Henry Mintzberg (1971)
#1 #4
The manager The manager sits
performs a great between his organisation
quantity of work at an and a network of
unrelenting pace. contacts

#2 #5
Managerial activity is The manager
characterised by shows a strong
variety, fragmentation preference for
and brevity. verbal
communication.

#3 #6
Managers prefer issues Despite his heavy
that are current, obligations, the manager
specific and ad hoc. appears to be able to
control his own affairs.

Mintzberg studied a number of chief executives and kept records of all their activities,
all their correspondence and all their contacts during the period of the study.
‘Why did the managers do what they did?’

• Mintzberg’s answer was that they were fulfilling certain roles.

• He identified 10 different roles into which he was able to fit all the
activities he observed.
• He grouped the 10 roles under three broader headings on the
grounds that, whatever they were doing, they were invariably doing
one of three things:
• making decisions,
• processing information, or
• engaging in interpersonal contact.

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10 Key Managerial Role
by Mintzberg

INTERPERSONAL
1. Figurehead
INTERPERSONAL 2. Leader
3. Liaison

INFORMATIONAL
1. Disseminator
INFORMATIONAL
2. Spokesperson
3. Monitor

DECISIONAL
DECISIONAL
1. Entrepreneur
2. Disturbance Handler
3. Resource Allocator
4. Negotiator
Involves the manager in relationships with other individuals both inside and outside
the firm

FIGUREHEAD

01
You represent your group to
your organization and the
community at large.

LEADER
02 You hire, train and
motivate employees.

LIASON
You maintain contact with colleagues
03 and stakeholders outside your
immediate chain of command.
Positions the manager so as to facilitate the sending and receiving of information

DISSEMINATOR

01
You feed information to
subordinates who lack your
access to critical data.

SPOKESPERSON
02 You provide information on behalf
of your unit to senior management
and outside organizations.

MONITOR
You leverage your personal network
03 to scan the environment for vital
information.
 ENTREPRENUER
01 You initiate projects to improve your
unit’s processes or profits.
The
manager
uses the
DISTURBANCE HANDLER
02
available
You manage crises precipitated by
information employees, customers, suppliers,
to make systems or accidents.
important
decisions
RESOURCE ALLOCATOR
03 You decide who will get what, Coordinate
the impact of interrelated decisions and
allocate managerial time.

NEGOTIATOR
04 You use strategic information to resolve
grievances, establish contracts and
promote shared decisions.
 Management Skills

• Management skills required

by management levels

Top Managers

Middle Managers

First-Line Managers Conceptual Skills “People” Skills Technical Skills

Non-managers (Personnel)

Ability to think , to Ability to Skill necessary to

integrate and to communicate with accomplish the
give direction so understand and specific kind of
that objectives are motivate both work in an
achieved individuals and organization
groups
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Fundamental Management Skills
• Technical
• Skills necessary to accomplish or understand the specific kind
of work being done in an organization

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• Interpersonal
• Ability to communicate with, understand, and motivate both
individuals and groups

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Fundamental Management Skills
• Diagnostic
• Ability to visualize the most
appropriate response to a
situation

• Communication
• Abilities both to convey ideas
and information effectively to
others and to receive ideas
and information effectively
from others

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• Decision-Making
• Ability to recognize and define problems and opportunities
correctly and then to select an appropriate course of action to
solve the problems and capitalize on opportunities

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Fundamental Management Skills

• Time-Management
• Ability to prioritize work, to work efficiently, and to delegate
appropriately
[Griffin 2003]

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