Table of Contents
An opening
Main body
Benefits
Drawbacks
The Contingency Theory is a management approach that suggests the most appropriate leadership style depends on the situation.
In summary
Cites
Starting off,
Management theories were developed to help managers understand their roles and functions. They have a significant impact on the performance of the construction industry as well as the many organisations involved in it.
We will discuss management thinking’s evolution over time in this essay. We will then examine the impact of management theories and their influence on the construction industry. The last section of this essay will examine the roles of management and their relevance to successful construction managers.
Main BodyMass production and Industrial Revolution created new management requirements. Businesses grew in size, production and required managers to manage them. Management theories were not required for most organizations or military before the Industrial Revolution. Management became a key theoretical topic in business studies due to expanding industry. Leaders are those who have a long-term view of the company’s future. They can set high goals and encourage staff commitment. They ensure orders are completed on time and motivate employees.
A business’s success is dependent on its management team. Managers must be able to adapt quickly to the changing marketplace. Today’s managers must address these issues differently than they did 100 years ago. Times have changed. Labour has changed. But, what is most important, how management philosophies are changing? Managers can still use the management philosophies from yesterday.
Weber invented the notion of bureaucracy. It is an organizational structure that has specialized jobs, strict rules and clear accountability relationships. Promotions and employment are based on seniority and merit.
Max Weber’s bureaucratic theory suggests that organizations can have three types power: charismatic, traditional, and legal. In his bureaucratic theories, he calls the latter a bureaucracy. Every aspect of democracy is organized on the basis of rules and laws. This makes established jurisdiction supreme.
These three elements are necessary for effective bureaucratic leadership:
All activities in a bureaucracy are considered official duties.
Management can impose rules.
It is easy to follow established procedures and rules.
The main plus of having a bureaucracy is that it allows giant companies with multiple levels of authority to be organized and run proficiently. Employees can be efficient and work consistently by following established procedures.
Management can now maintain control and adjust as necessary. In organisations that have legislation as a key component of delivering consistent output, bureaucracy is a natural part.
DisadvantagesBureaucracy is characterised by a large amount of red tape, paperwork, many desks, certain office culture and slow bureaucratic communication due to its many hierarchical layers. This is the biggest problem of bureaucratic organizations. This makes employees less loyal and keeps them distant from one another.
Employees of bureaucratic organizations are not allowed to speak out or influence decision-making, which can lead to a demotivating environment for them.
Administrative management is the practice of managing people and resources. Fayol made two key contributions to management.
The first dealt with the universality fundamental management principles. These principles can be applied to any form of human organization.
Below are the 14 Principles of Management of Fayol.
Division of work – Employees who are skilled can produce more because they are more efficient and skilled.
Authority – Managers should have the authority and responsibility to issue orders.
Discipline – Organizations must maintain discipline, although methods can differ.
Unity of command – All employees should have a single supervisor.
Unity of Direction: Teams that share the same goal must work under one manager. They should use the same plan. This will ensure proper coordination of action.
Subordination of Individual Interests and the General Interest – It is not acceptable for one employee’s interests to be more important than the group’s. Managers are also included.
Fair remuneration – Employee satisfaction is dependent on fair remuneration. This includes both non-financial and financial compensation.
Centralization – This principle refers the degree of employee involvement in decision-making. Achieving a balance is crucial.
Scalar Chain: Employees must know their place in the organization’s hierarchy or chain.
Order – Employees should feel safe and comfortable in their workplace. Everything should be in its right place.
Equity – Managers need fairness with staff, be kind and maintain discipline.
Stability in Tenure – Managers need to work hard to ensure that employees are not constantly on the move. Planning for personnel should always be a priority.
Initiative – It is important that employees have the freedom to design and implement plans.
Esprit de Corps: Organizations should promote unity and team spirit.
His second principle was that there was a wealth of knowledge about the management functions that could and should be taught. This concept resulted in the creation of a management discipline, which can be validly taught at the college. His ideas can be used as a guideline, especially when using contingency management.
Fayol has six primary functions of management that go hand in glove with the Principles.
Forecasting.
Planning.
Organizing.
Commanding.
Coordinating.
Controlling.
Fayol made a significant contribution to the understanding of management as a set or function that is performed by supervisors within organizations. Fayol clearly distinguished between managerial and technical skills, and stated that the supervisor must have both of these skills to succeed. “Management is an essential part of the government of undertakings. It applies to all kinds of undertakings, whether they are small or large, industrial, commercial or political. I’ll be sharing my ideas about the best way to play this role. Fayol’s 1949 p.88. Fayol was a practical manager who reflected on his long management career and tried to put aside all the principles he knew. He did not try to formulate a management theory or self-contained philosophy. However, his observations fit in amazingly well with the current method of managing theory.
Frederick W. Taylor, the father of efficiency manufacturing, introduced the American concept of scientific management. He developed a method that encourages increased production, improved working conditions, and increases earnings. His main role was to codify the principles of European factory management and make them accessible to American factory managers. Taylor’s main goal was to create a “mental revolution”, in which managers wanted to increase productivity, share these gains with workers, and make work easier and more enjoyable. The following duties were created by Taylor’s philosophy regarding workers.
To develop a science to replace the outdated rule-of-thumb approach.
You must select, train, educate, and develop scientifically skilled workers.
To ensure that employees are treated with respect, it is important to cooperate with them.
Work and responsibilities should be divided between workers and management.
Motivate workers with incentive wages.
Frederick W. Taylor was a pioneer in the development of a management and production system. His contributions are partly responsible for the huge production systems in World War I/ II.
This method standardized labour and training, hired employees, and paid tied compensation for increased productivity. This approach was highly successful but did not consider the diverse abilities and needs of the workforce.
In the 1920s, a fundamental shift occurred in management philosophy. It emphasized human behaviours, needs, and attitudes at work over efficiency and production. Mary Parker Follett was the first to stress the importance of employee empowerment.
Mary Follet’s research is called administrative management. Her contributions focus on the need of an integrated organizational structure, where people work as a whole. This will result in greater productivity and job satisfaction than Frederick Taylor’s’solo worker” scientific management theory.
She stood for:
Empowerment of employees
Organizational structures that are flatter (horizontal).
Conflict resolution and management
Follett believed conflict can be used to create harmony between workers. There are four main ways to resolve conflict:
One party may submit a voluntary submission
One party wins over the other
A compromised
Integration is the finding of a solution that both sides can live with, without compromise or dominance.
She preferred the second method. She believed leaders in group situations are usually influential and are also influenced. Mary Follett was also the one who developed concepts like:
The overarching aim
The fundamental law
The law is the fact!
An organization’s universal goal is the sum of all the individual efforts that are directed towards the same goal.
It is a universal principle that communications and activities should have a reciprocal or circular response. She advocated for a feedback (control) system within the organization.
There is no one best way to manage a situation. It is up to the individual situation.
This new perspective led to the human resources perspective. Workers were viewed as a resource to fully utilize, not tools that can be extracted utility. It was clear that organizations need to be supportive of workers and provide leadership. This perspective opened up the possibility of the human relations department playing a vital role in today’s organizations.
Managers have been responsible for motivating and coordinating employees in order to achieve organizational goals, whether they are working in factories or e-businesses. Management philosophies have evolved with the times. Understanding the evolution and current management methods will help you understand where you are now and how you can improve your management in the future.
The Contingency TheoryContingency Theory was an offshoot system theory which was concerned with system designing. It developed from the mid-60s to 70s. Scott (1981), Heyday states that contingency theory is still the dominant approach to organizational design and the most commonly used theoretical approach for the study of organizations. Pfeffer (1997) says that structural contingency is no longer the dominant approach to organization design. However, it is the most widely used theoretical approach to the study of organizations. (Venkatraman and 1989). However, contingency theory acknowledges that too many variables can affect the organizational structure both internally and externally. Child (1975) stated that variability in an organization’s environment is a result of unexpected changes, which can be difficult to predict and are likely to cause uncertainty.
Contingency theory, an organisational theory, is based on the belief that project managers have the responsibility of finding the best fit between their organisation and its environment.
This theory is based in the belief, however, that not all management theories will be effective in every situation. The best way to approach a situation is to look at both external and internal factors. This makes it especially suitable for construction, where the environment is often unpredictable and not-routine.
Contingency theory refers to open systems. System that interact with the outside world, such as construction. Open systems can reach the exact same goal under different circumstances and with different organisational structures. This is called the equifinality or open system.
Project managers must be able to’satisfy’ (a combination the words satisfy’,’suffice’). This means they have to find a solution that meets the project criteria.
Management is composed of four functions: planning, organizing and leading. These four functions are essential for the achievement of organizational goals. Each function of management is a step in a process that builds on the others. Management must adhere to the order of these four functions in order for success.
Planning: Construction managers and project managers must have the ability to plan. This does not mean that they must only be able to follow and prepare a schedule or program. Construction managers must know how to plan and execute their projects today. They must also know what tomorrow will bring. They need to know what’s happening next week, next monthly and how their actions today will impact the outcome of next week and subsequent months. Planning involves ensuring that all the necessary people, materials, equipment, and supplies are available on time. Planning ensures that work is properly planned and completed on time.
Organization: Managers divide the project into different departments and assign tasks to each member of their team. Construction managers have an important role in ensuring that employees are assigned to the right departments and tasks.
Leading: Construction managers mentor, support, as well as correct their workers to make sure they do their jobs correctly.
Control: Construction managers communicate clearly about plans changes and ensure that every department understands its role. They assess the progress of active activities against the project plan and adjust to meet objectives and deadlines.
ConclusionManagement theories are a major influence on management today. Managers must respond to the needs of their team, particularly in these times of credit crunch. He should not only motivate his team but also encourage them to work hard.
Managers need to think outside the box in order for their organization to progress.
Citations
Mindtool (2020) Fayol’s 14 Principles of Management and Six Functions of Management available at https://www.mindtools.com/pages/article/henri-fayol.htm (Accessed: 19 November 2020)
Fayol. 1949. General and industry management. London, United Kingdom (UK)
Neupane Surendra; Parajuli , Ram Prasad; Jha, Deepak Kumar; Chhetri, Tuk Bahadur; Dulal, Gopal Prasad;. ‘Business Studies Class: XII. Kathmandu: Nawakala Publications 2011 A.D.33.48.
Sharma, Surendra Raj; Jha, Surendra Kumar;. ‘Business Studies Grade II.’ Kathmandu, Sakuntala Pustak Bhawan. 2011 A.D. 41–46.
Shrestha Kul Nasingh. ‘Business Organization Management’ Kathmandu: Nabin Publication. 2065 B.S. 53.
Team, Mindtool editorial. www.mindtools.com/pages/article/henri-fayol.htm. n.d. .
