MANAGEMENT AND

ORGANIZATION
ARC7025
CONSTRUCTION MANAGEMENT
Prof. Dr. Esin Kasapoğlu
ORGANIZATION
A SOCIAL UNIT OF
PEOPLE THAT IS
STRUCTURED AND
MANAGED TO MEET
A NEED OR TO
PURSUE
COLLECTIVE GOALS.
ORGANIZATIONS ARE A NECESSARY
ELEMENT OF CIVILIZED LIFE FOR
SEVERAL REASONS:

 THEY ENABLE US TO
ACCOMPLISH THINGS
THAT WE COULD NOT DO
AS WELL-OR AT ALL –AS
INDIVIDUALS;
 THEY HELP PROVIDE A
CONTINUITY OF
KNOWLEDGE;
 AND THEY SERVE AS AN
IMPORTANT SOURCE OF
CAREERS.
BY OVERCOMING
OUR LIMITATIONS AS
INDIVIDUALS,
ORGANIZATIONS
ENABLE US TO
REACH GOALS THAT
WOULD OTHERWISE
BE MUCH MORE
DIFFICULT OR EVEN
IMPOSSIBLE TO
REACH.
ORGANIZATIONS PRESERVE KNOWLEDGE
 STORE AND PROTECT MOST OF THE
IMPORTANT KNOWLEDGE THAT OUR
CIVILIZATION HAS GATHERED AND
RECORDED.
 HELP TO MAKE THAT KNOWLEDGE A
CONTINUOUS BRIDGE BETWEEN PAST,
PRESENT, AND FUTURE GENERATIONS.
 ADD TO OUR KNOWLEDGE BY DEVELOPING
NEW AND MORE EFFICIENT WAYS OF
DOING THINGS.
COMMON ELEMENTS IN ALL
ORGANIZATIONS
 A GOAL OR A
PURPOSE
 A PROGRAM OR A
METHOD
 LEADERS OR
MANAGERS
AN ARCHITECTURAL DESIGN
OFFICE IS AN ORGANISATION
 THE GOAL IS
COMPLETING
ARCHITECTURAL
DESIGN
SUCCESSFULLY
 ARCHITECTS USE
DRAWINGS TO
PRESENT THEIR
DESIGN
 OWNER OF THE
OFFICE IS THE
LEADER OF THE
DESIGN TEAM
A CONSTRUCTION TEAM IS AN
ORGANIZATION

 THE GOAL IS COMPLETING

CONSTRUCTION PROJECT
SUCCESSFULLY
 DIFFERENT SCHEDULING
PROGRAMS AND
CONSTRUCTION METHODS
USED
 PROJECT MANAGER OR
SITE MANAGER IS THE
LEADER OF THE
CONSTRUCTION TEAM
WHAT IS MANAGEMENT?
 THE ART OF GETTING THINGS DONE
THROUGH PEOPLE
 MANAGERS ACHIEVE ORGANIZATION
GOALS BY ARRANGING FOR OTHERS TO
PERFORM WHATEVER TASKS MAY BE
NECESSARRY.
 MANAGEMENT IS THE PROCESS
UNDERTAKEN BY ONE OR MORE
INDIVIDUALS TO COORDINATE THE
ACTIVITIES OF OTHERS TO ACHIEVE
RESULTS NOT ACHIEVABLE BY ONE
INDIVIDUAL ACTING ALONE.
WHO ARE MANAGERS?

 ORGANIZATIONAL
PLANNERS
 ORGANIZERS

 LEADERS

 CONTROLLERS
WHO ARE MANAGERS?
 MANAGERS MUST ALSO DECIDE WHO IS TO
PERFORM A PARTICULAR TASK AND MUST
ASSIGN WORK TO AN APPROPRIATE
SUBORDINATE.
 MANAGERS MUST THINK ANALYTICALLY
AND CONCEPTUALLY
 MANAGERS ARE MEDIATORS

 MANAGERS ARE POLITICIANS

 MANAGERS ARE DIPLOMATS

 MANAGERS MAKE DIFFERENT DECISIONS

MANAGERS USE ALL THE RESOURCES OF
THE ORGANIZATION

 FINANCES
 EQUIPMENT

 INFORMATION

 PEOPLE
MANAGERIAL AND
ORGANIZATIONAL PERFORMANCE

HOW SUCCESSFUL AN
ORGANIZATION IS IN
ACHIEVING ITS
OBJECTIVES AND IN
MEETING SOCIETY’S
NEEDS DEPENDS UPON
HOW WELL THE
ORGANIZATION’S
MANAGERS DO THEIR
JOBS.
MANAGEMENT IS THE PROCESS
OF PLANNING,ORGANIZING,
STAFFING, COORDINATING AND
CONTROLLING THE EFFORTS OF
ORGANIZATION MEMBERS AND USING ALL
OTHER ORGANIZATIONAL RESOURCES TO
ACHIEVE STATED ORGANIZATIONAL GOALS.
THE PROCESS OF MANAGEMENT

 IMPLIES THAT
MANAGERS THINK
THROUGH THEIR GOALS
AND ACTIONS IN
ADVANCE.
 THEIR ACTIONS ARE
USUALLY BASED ON
SOME METHOD, PLAN,
OR LOGIC, RATHER THAN
ON A HUNCH.
PLANS ARE NEEDED
TO GIVE THE
ORGANIZATION ITS
OBJECTIVES AND TO
SET UP THE BEST
PROCEDURE.
 PLANNING STEPS OF
A HOTEL DESIGN PROJECT IN BODRUM
DESIGN
PROCESS
WHAT ARE THE AIDS AND BARRIERS
TO COMPLETE THE PROJECT? THE
DESIGN TEAM HAS PAST
EXPERIENCES ON DESIGNING A
HOTEL PROJECT. BARIER IS THE
ZOONING ORDINANCES
COMPLETING
SUCCESSFULLY THE
HOTEL DESIGN
PROJECT IN BODRUM
HOW FAR IS THE TEAM FROM ITS
GOALS? WHAT RESOURCES ARE
AVAILABLE FOR REACHING THE
GOALS?
ARE NEW COMPUTERS NEEDED?
IS THE NUMBER OF ARCHITECTS
ENOUGH TO ACHIEVE THIS SIZE OF
PROJECT?
PLANNING STEPS OF A HOTEL
CONSTRUCTION PROJECT IN BODRUM

COMPLETING
SUCCESSFULLY THE
HOTEL CONSTRUCTION
CONSTRUCTION PROJECT IN BODRUM
PROCESS

HOW FAR IS THE TEAM FROM

ITS GOALS? WHAT RESOURCES
WHAT ARE THE AIDS AND BARRIERS ARE AVAILABLE FOR
REACHING THE GOALS?
TO COMPLETE THE PROJECT? DOES
THE CONTRUCTION TEAM HAVE IS GENERAL CONSTRUCTOR
PAST EXPERIENCES ON A HOTEL SELECTED?
PROJECT. BARIER IS THE PUBLIC WHICH SUB-CONTRACTOR
REACTION. TEAMS ARE NEEDED IN HE
PROCESS?
THE PROCESS OF MANAGEMENT
ORGANIZING
 MEANS THAT
MANAGERS
COORDINATE THE
HUMAN AND
MATERIAL RESOURCES
OF THE
ORGANIZATION.
 THE EFFECTIVENESS
OF AN ORGANIZATION
DEPENDS ON ITS
ABILITY TO MARSHAL
ITS RESOURCES TO
ATTAIN GOALS.
ORGANISING
ONCE MANAGERS
ESTABLISHED
OBJECTIVES AND
DEVELOPED PLANS
OR PROGRAMS TO
REACH THEM, THEY
MUST DECIDE AND
DEVELOP AN
ORGANIZATION THAT
WILL BE ABLE TO
CARRY OUT THOSE
PROGRAMMES
SUCCESSFULLY.
ORGANIZING PROCESS
OF A DESIGN TEAM
DETAILING OF WORK (ARCHITECTURAL DESIGN
AND ESTIMATING THE PROJECT)

DIVISION OF WORK INTO ACTIVITIES

(ARCHITECTURAL DESIGN, TWO DIMENSIONAL
DRAWINGS, THREE DIMENSIONAL DRAWINGS, COST
ESTIMATING, SCHEDULING)

DEPARTMANTALIZATION (DESIGN DEPARTMENT

WILL PREPARE TWO DIMENSIONAL DRAWINGS,
FINANCE DEPARTMENT WILL PREPARE
ESTIMATIONS)

COORDINATION (IS THE OWNER ARCHITECT THE

ONLY PERSON WHO CAN MAKE DECISION?)

MONITORING AND REORGANIZING (IT CAN BE A

LARGE SCALE PROJECT AND TEAMS CAN NEED NEW
MEMBERS OR NEW TEAMS CAN BE NEEDED?)
ORGANIZING PROCESS
OF A CONSTRUCTION TEAM
DETAILING OF WORK (MOBILIZATION,
EXCAVATION, ROUGH WORK, FINISHING WORKS )

DIVISION OF WORK INTO ACTIVITIES (ROUGH WORK:

CONSTRUCTING STRUCTURAL SYSTEM,
FOUNDATION, FLOOR; FINISHING WORKS WALLING,
ROOFING …)

DEPARTMANTALIZATION (ROUGH WORK WILL BE

COMPLETED BY GENERAL CONTRACTOR; WALLING
AND ROOFING BY SUBCONTRACTORS)

COORDINATION (IS THE PROJECT MANAGER THE

ONLY PERSON WHO CAN MAKE DECISION?)

MONITORING AND REORGANIZING (IT CAN BE A

LARGE SCALE PROJECT AND TEAMS CAN NEED NEW
MEMBERS OR NEW TEAMS CAN BE NEEDED?)
THE FORMAL
ORGANIZATIONAL STRUCTURE
 FUNCTIONAL
ORGANIZATION
 PRODUCT/MARKET
ORGANIZATION
 MATRIX
ORGANIZATION
FUNCTIONAL ORGANIZATION
IT IS USED MAINLY (BUT NOT ONLY) BY
SMALLER FIRMS THAT OFFER A LIMITED LINE
OF PRODUCTS, BECAUSE IT MAKES
EFFICIENT USE OF SPECIALIZED RESOURCES.
FUNCTIONAL ORGANIZATION

GENERAL
MANAGER

FINANCE MARKETING SALES PRODUCTION

PRODUCT / MARKET
ORGANIZATION
1. DIVISION BY PRODUCT
2. DIVISION BY GEOGRAPHY
3. DIVISION BY CUSTOMER
DIVISION BY PRODUCT
IN DIVISION BY PRODUCT, EACH
DEPARTMENT IS RESPONSIBLE FOR A
PRODUCT OR RELATED FAMILY OF
PRODUCTS.
DIVISION BY PRODUCT

GENERAL
MANAGER

WASHING
DISHWASHER REFRIGERATOR
MACHINE
DIVISION BY GEOGRAPHY
DIVISION BY GEOGRAPHY BRINGS TOGETHER
IN ONE DEPARTMENT ALL ACTIVITIES
PERFORMED IN THE REGION WHERE THE
UNIT CONDUCTS ITS BUSINESS.
DIVISION BY GEOGRAPHY

GENERAL
MANAGER

ISTANBUL ANKARA

BEŞİKTAŞ KADIKÖY
DIVISION BY CUSTOMER
DIVISION BY CUSTOMER OCCURS WHEN A
DIVISION SELLS MOST OR ALL OF ITS
PRODUCTS TO A PARTICULAR CLASS OF
CUSTOMER.
MATRIX ORGANIZATION
IN A MATRIX STRUCTURE, EMPLOYEES HAVE
IN EFFECT TWO BOSSES-THAT IS, THEY ARE
UNDER DUAL AUTHORITHY.
THE PROCESS OF MANAGEMENT
STAFFING
THE RECRUITMENT
AND PLACEMENT OF
THE QUALIFIED
PERSONNEL NEEDED
TO DO THE
ORGANIZATION’S
WORK.
STAFFING IN
AN ARCHITECTURAL DESIGN OFFICE
BEFORE BEGINNING
AN ARCHITECTURAL
DESIGN PROJECT,
ONE OF THE MAIN
PROBLEMS IS IF THE
MEMBERS OF THE
DESIGN OFFICE
HAVE NECESSARY
QUALIFICATIONS TO
SUCCEED THE
PROJECT.
THE PROCESS OF MANAGEMENT
COORDINATING
 THE PROCESS OF  MOTIVATION
INSTRUCTING,  LEADERSHIP
GUIDING AND  COMMUNICATION
INSPIRING HUMAN
FACTORS IN THE
ORGANIZATION TO
ACHIEVE
ORGANIZATION
OBJECTIVES.
 GETTING OTHERS
TO PERFORM
ESSENTIAL TASKS
THE PROCESS OF MANAGEMENT
CONTROLLING
 MANAGERS ATTEMPT
TO ASSURE THAT THE
ORGANIZATION IS
MOVING TOWARD ITS
GOALS.
 THE PROCESS
THROUGH WHICH
MANAGERS ASSURE
THAT ACTUAL
ACTIVITIES CONFORM
TO PLANNED
ACTIVITIES.
STEPS IN THE CONTROL PROCESS
1. ESTABLISHING STANDARTS AND METHODS
FOR MEASURING PERFORMANCE
2. MEASURING THE PERFORMANCE
3. DOES PERFORMANCE MATCH THE
STANDART?
4. TAKING CORRECTIVE ACTION
WE NEED THEORIES

INTUITION
HUNCH
THE EVOLUATION OF
MANAGEMENT THEORY
THE CLASSICAL SCHOOL (1880-1930)
THE BEHAVIORAL SCHOOL (1920-1950)
MANAGEMENT SCIENCE SCHOOL (1940- )
CONTEMPORARY APPROACHES (1980 - )
THE EVOLUATION OF
MANAGEMENT THEORY
 PEOPLE HAVE BEEN
MANAGED IN GROUPS
AND ORGANIZATIONS
SINCE PREHISTORIC
TIMES.
 EVEN THE SIMPLEST
OF HUNTING AND
GATHERING BANDS
GENERALLY
RECOGNIZED AND
OBEYED A LEADER OR
A GROUP OF DECISION
MAKERS RESPONSIBLE
FOR THE WALLFARE
OF THE BAND.
THE EVOLUATION OF
MANAGEMENT THEORY

THE INDUSTRIAL
REVOLUTION OF THE
19. CENTURY GAVE
RISE TO THE NEED
FOR A SYSTEMATIC
APPROACH TO
MANAGEMENT.
THE EVOLUATION OF
MANAGEMENT THEORY
THE DEVELOPMENT OF
NEW TECHNOLOGIES AT
THAT TIME
CONCENTRATED GREAT
QUANTITIES OF RAW
MATERIALS AND LARGE
NUMBERS OF WORKERS
IN FACTORIES. GOOD
WERE PRODUCED IN
QUANTITY AND HAD TO
BE DISTRIBUTED
WIDELY.
REQUIRES WELL-EDUCATED,
KNOWLEDGEABLE, AND HARD-WORKING
INDIVIDUALS DECIDING THAT A MANAGER
CAREER IS OF VALUE TO THEM PERSONALLY.

THE FUTURE
SUCCESS OF THE
COUNTRIES OR
ORGANIZATIONS
LIES IN MANAGING
PRODUCTIVITY,
BEING ABLE TO
COPE WITH
ENVIRONMENTAL
CHANGES, AND
PROPERLY
MANAGING THE
WORKFORCE.
THE CLASSICAL SCHOOL
(1880-1930)
FINDING WAYS TO 1. INCREASING THE
MANAGE WORK AND PRODUCTIVITY OF
ORGANIZATION SO INDIVIDUALS
THAT HIGHER PERFORMING
LEVELS OF OUTPUT WORK
WOULD BE 2. INCREASING THE
PRODUCED AT PRODUCTIVITY OF
LOWER COSTS ORGANISATIONS
WITHIN WHICH
WORK IS
PERFORMED.
THE CLASSICAL SCHOOL
(1880-1930)

 SCIENTIFICMANAGEMENT
 CLASSICAL ORGANIZATION THEORY

 BUREAUCRACY SCHOOL
SCIENTIFIC MANAGEMENT
 SCIENTIFIC MANAGEMENT AROSE IN PART
FROM THE NEED TO INCREASE
PRODUCTIVITY.
 TO EXPAND PRODUCTIVITY WAYS HAD TO
BE FOUND TO INCREASE THE EFFICIENCY
OF WORKERS.
 FREDERICK W. TAYLOR AND SCIENTIFIC
MANAGEMENT
 COULD SOME PART
OF THE WORK BE IN HIS PURSUIT OF
ELIMINATED OR ANSWERS TO SUCH
SOME PARTS OF QUESTIONS,
OPERATION FRADERIC TAYLOR
COMBINED? SLOWLY BUILT THE
 COULD THE BODY OF
SEQUENCE OF PRINCIPLES THAT
THESE TASKS BE CONSTITUTE THE
IMPROVED? ESSENCE OF
 WAS THERE «ONE SCIENTIFIC
BEST WAY» OF MANAGEMENT.
DOING A JOB?
THE PROPONENTS OF SCIENTIFIC
MANAGEMENT OVERLOOKED

 THE SOCIAL NEEDS OF WORKERS AS

MEMBERS OF A GROUP AND NEVER
CONSIDERED THE TENSIONS CREATED
WHEN THESE NEEDS WERE FRUSTRATED.
 OVERLOOKED THE HUMAN DESIRE FOR
JOB SATISFACTION
CLASSICAL
ORGANIZATION THEORY
 CONSERNED WITH INCREASING THE
PRODUCTIVITY OF THE SHOP AND THE
INDIVIDUAL WORKER.
 GREW OUT OF THE NEED TO FIND
GUIDELINES FOR MANAGING COMPLEX
ORGANIZATIONS, SUCH AS FACTORIES.
HENRI FAYOL AND CLASSICAL
ORGANIZATION THEORY

 FOUNDER OF
CLASSICAL
ORGANIZATION THEORY
 DEFINED THE PROCESS
OF MANAGEMENT
 BELIEVED THAT SOUND
MANAGERIAL PRACTICE
FALLS INTO CERTAIN
PATTERNS THAT CAN BE
IDENTIFIED AND
ANALYZED.
HENRI FAYOL AND CLASSICAL
ORGANIZATION THEORY
MANAGEMENT IS A SKILL LIKE ANY OTHER –
ONE THAT COULD BE THOUGHT ONCE ITS
UNDERLIYING PRINCIPLES IS UNDERSTOOD.
CLASSICAL
ORGANIZATION THEORY
 FAYOL OBSERVED THAT ABILITIES NEEDED BY
MANAGERS IN A GIVEN ORGANIZATION
DEPEND ON THE MANAGERS’ POSITION IN ITS
HIERARCHY.
 IN A LOWER-LEVEL JOB, SPECIFIC TECHNICAL
SKILLS BUT VERY LITTLE MANAGERIAL
ABILITY ARE NEEDED.
 ON THE TOP OF THE HIERARCHY,
MANAGERIAL ABILITIES BECOME MORE
IMPORTANT AS COMPARED TO TECHNICAL
SKILLS.
 THE NEED FOR MANAGERIAL ABILITIES IS
ALSO RELATED TO THE SIZE OF THE
ORGANIZATION.
BUREAUCRACY SCHOOL

THE TERM
"BUREAUCRACY" IS
FRENCH IN ORIGIN
AND COMBINES THE
FRENCH
WORD BUREAU –
DESK OR OFFICE –
WITH THE GREEK
WORD ΚΡΆΤΟΣ
(KRATOS) – RULE OR
POLITICAL POWER.

RULE BY DESKS OR OFFICES.

BUREAUCRACY SCHOOL
BUREAUCRACY IS AN ORGANISATIONAL
STRUCTURE THAT IS CHARACTERISED BY
MANY RULES, STANDARDISED PROCESSES,
PROCEDURES AND REQUIREMENTS,
NUMBER OF DESKS, METICULOUS DIVISION
OF LABOUR AND RESPONSIBILITY, CLEAR
HIERARCHIES AND PROFESSIONAL, ALMOST
IMPERSONAL INTERACTIONS BETWEEN
EMPLOYEES”.
BUREAUCRACY SCHOOL

 MAX WEBER DEVELOPED A THEORY OF

BUREAUCRATIC MANAGEMENT THAT
STRESSED THE NEED FOR A STRICTLY
DEFINED HIERARCHY GOVERNED BY
CLEARLY DEFINED REGULATIONS AND
LINE OF AUTHORITY.
 THE IDEAL ORGANIZATION TO BE A
BUREAUCRACY WHOSE ACTIVITIES AND
OBJECTIVES WERE RATIONALLY THOUGHT
OUT AND WHOSE DIVISIONS OF LABOR
WERE EXPLICITY SPELLED OUT.
BUREAUCRACY SCHOOL

 MAX WEBER BELIEVED THAT BUREAUCRACY

WAS A BETTER THAN TRADITIONAL
STRUCTURES. IN A BUREAUCRATIC
ORGANISATION, EVERYONE IS TREATED
EQUAL AND THE DIVISION OF LABOUR IS
CLEARLY DESCRIBED FOR EACH EMPLOYEE.
 A STRUCTURE WAS INDISPENSABLE IN LARGE
ORGANIZATIONS IN STRUCTURALLY
PERFORMING ALL TASKS BY A GREAT NUMBER
OF EMPLOYEES. IN ADDITION, IN A
BUREAUCRATIC ORGANISATION, SELECTION
AND PROMOTION ONLY OCCUR ON THE BASIS
OF TECHNICAL QUALIFICATIONS.
 THE BEHAVIORAL
SCHOOL
(1920-1950)
EMERGED IN PART
BECAUSE MANAGERS
FOUND THAT THE
CLASSICAL
APPROACH DID NOT
ACHIEVE COMPLETE
PRODUCTION
EFFICIENCY AND
WORKPLACE
HARMONY.
THE BEHAVIORAL SCHOOL
 MANAGERS STILL ENCOUNTERED
DIFFICULTIES AND FRUSTRATIONS
BECAUSE PEOPLE DID NOT ALWAYS
FOLLOW PREDICTED OR RATIONAL
PATTERNS OF BEHAVIOR.
 THERE WAS INCREASED INTEREST IN
HELPING MANAGERS DEAL MORE
EFFECTIVELY WITH THE «PEOPLE SIDE» OF
THEIR ORGANIZATIONS.
THE BEHAVIORAL SCHOOL

SEVERAL
INDIVIDUALS TRIED
TO STRENGTEN
CLASSICAL
ORGANIZATION
THEORY WITH THE
INSIGHTS OF
SOCIOLOGY AND
PSYCLOGY.
THE BEHAVIORAL SCHOOL

THE ORGANIZATION IS PEOPLE

 HUMAN RELATIONS
MOVEMENT
HUMAN RELATIONS IS
FREQUENTLY USED AS A GENERAL
TERM

TO DESCRIBE THE WAYS IN WHICH

MANAGERS INTERACT WITH THEIR
SUBORDINTES.
HUMAN RELATIONS MOVEMENT
 AROSE FROM EARLY ATTEMPTS TO
SYSTEMATICALLY DISCOVER THE SOCIAL
AND PSYCHOLOGICAL FACTORS THAT
WOULD CREATE EFFECTIVE HUMAN
RELATIONS.
 TO CREATE GOOD HUMAN RELATIONS,
MANAGERS MUST KNOW WHY EMPLOYEES
ACT AS THEY DO AND WHAT SOCIAL AND
PSYCHOLOGICAL FACTORS MOTIVATE
THEM.
 THIS EXPERIMENT LED
MAYO TO AN
ELTON MAYO IMPORTANT
AND THE DISCOVERY : THAT
SPECIAL ATTENTION
HAWTHORN
(SUCH AS BEING
EXPERIMENTS SELECTED AS
PARTICIPANTS IN A
STUDY BACKED BY TOP
MANAGEMENT)
FREQUENTLY CAUSES
PEOPLE TO INCREASE
THEIR EFFORTS. THIS
PHENOMENON HAS
BECOME KNOWN AS
THE HAWTHORNE
EFFECT.
 MANAGEMENT SCIENCE
SCHOOL (1940- )
 SOLVING A PROBLEM BEGINS WHEN A
MIXED TEAM OF SPECIALISTS FROM
RELEVANT DISCIPLINES IS CALLED INTO
ANALYZE THE PROBLEM AND PROPOSE A
COURSE OF ACTION TO MANAGEMENT.
 THE TEAM CONSTRUCTS A
MATHEMATICAL MODEL TO SITUMULATE
THE PROBLEM.
 THE MODEL SHOWS, IN SYMBOLIC TERMS,
ALL THE RELEVANT FACTORS THAT BEAR
ON THE PROBLEM AND HOW THEY ARE
INTERRELATED.
MANAGEMENT SCIENCE SCHOOL
 BY CHANGING THE VALUES OF THE
VARIABLES IN THE MODEL (SUCH AS
INCREASING THE COST OF RAW
MATERIALS) AND ANALYSING THE
DIFFERENT EQUATIONS OF THE MODEL
WITH A COMPUTER, THE TEAM CAN
DETERMINE WHAT THE EFFECTS OF EACH
CHANGE WOULD BE.
 EVENTUALLY, THE MANAGEMENT
SCIENCE TEAM PRESENTS MANAGEMENT
WITH A RATIONAL BASIS FOR MAKING A
DECISION.
 THE EVOLUTION OF
MANAGEMENT SCIENCE SCHOOL
 THE SYSTEMS APPROACH
 THE CONTINGENCY APPROACH
THE SYSTEMS APPROACH
 ATTEMPTS TO VIEW THE ORGANIZATION
AS A UNIFIED, PURPOSEFUL SYSTEM
COMPOSED OF INTERRALATED PARTS.
 RATHER THAN DEALING SEPARATELY
WITH THE VARIOUS PARTS OF AN
ORGANIZATION, THE SYSTEMS APPROACH
GIVES MANAGERS A WAY OF LOOKING AT
AN ORGANIZATION AS A WHOLE AND AS A
PART OF THE LARGER, EXTERNAL
ENVIRONMENT.
THE SYSTEMS APPROACH
 A WAY OF THINKING ABOUT MANAGEMENT
PROBLEMS
 VIEWS AN ORGANIZATION AS A GROUP OF
INTERRELATED PARTS WITH A SINGLE
PURPOSE.
 BECAUSE THE ACTION OF ONE PART
INFLUENCES THE OTHERS, MANAGERS
CANNOT DEAL SEPERATELY WITH INDIVIDUAL
PARTS.

 BUILDING SYSTEM
 Structural Systems (beams, columns, etc.)
 Functional Elements ( external, walls, and roof)
 Service Systems (heating/cooling/ventilating systems)
THE SYSTEMS APPROACH
THE CONTINGENCY APPROACH
 DEVELOPED BY MANAGERS,
CONSULTANTS, AND RESEARCHERS WHO
TRIED TO APPLY THE CONCEPTS OF THE
MAJOR SCHOOLS TO REAL-LIFE
SITUATIONS.
 THE TASK OF MANAGERS IS TO IDENTIFY
WHICH TECHNIQUE WILL, IN A
PARTICULAR SITUATION, UNDER
PARTICULAR CIRCUMTANCES, AND AT A
PARTICULAR TIME, BEST CONTRIBUTE TO
THE ATTAINMENT OF MANAGEMENT
GOALS.
 CONTEMPORARY
APPROACHES
(1980 - )

 TOTAL QUALITY MANAGEMENT

 OUTSOURCING

 DOWNSIZING

 CORE COMPEDENCE

 RE-ENGINEERING

 JUST IN TIME

 BENCHMARKING

 LEARNING ORGANIZATIONS

 PROJECT MANAGEMENT
TOTAL QUALITY MANAGEMENT
TQM MEANS THAT THE
ORGANIZATION'S CULTURE
IS DEFINED BY AND
SUPPORTS THE CONSTANT
ATTAINMENT OF
CUSTOMER SATISFACTION
THROUGH AN INTEGRATED
SYSTEM OF TOOLS,
TECHNIQUES, AND
TRAINING. THIS INVOLVES
THE CONTINUOUS
IMPROVEMENT OF
ORGANIZATIONAL
PROCESSES, RESULTING IN
HIGH QUALITY PRODUCTS
AND SERVICES.
OUTSOURCING
A PRACTICE IN WHICH
AN INDIVIDUAL OR
COMPANY PERFORMS
TASKS, PROVIDES
SERVICES OR
MANUFACTURES
PRODUCTS FOR
ANOTHER COMPANY
FUNCTIONS THAT
COULD HAVE BEEN OR
IS USUALLY DONE
INHOUSE.
 ELIMINATING
POSITIONS,
DEPARTMENTS AND
EVEN DIVISIONS OF DOWNSIZING
COMPANIES.
 DOWNSIZING ACTIVITIES
MAY IMPACT SEVERAL
EMPLOYEES OR A
SIGNIFICANT
PERCENTAGE OF A
COMPANY’S STAFF.
 IN ADDITION TO LETTING
EMPLOYEES GO,
DOWNSIZING IMPACTS
TECHNOLOGY UPDATES,
ONGOING PROJECTS AND
THE FUTURE COURSE OF
AN ORGANIZATION.
 CORE
COMPEDENCE
 A COMPANY'S UNIQUE
CHARACTERISTIC OR
CAPABILITY THAT PROVIDES A
COMPETITIVE ADVANTAGE IN
THE MARKET PLACE, DELIVERS
VALUE TO CUSTOMERS, AND
CONTRIBUTES TO CONTINUED
ORGANIZATIONAL GROWTH.
 TYPICALLY COMPRISE
FUNDAMENTAL KNOWLEDGE,
ABILITY OR EXPERTISE IN A APPLE’S DESIGN CAPABILITIES
SPECIFIC SUBJECT AREA OR NETFLIX’S CONTENT DELIVERY
PLATFORM
SKILL SET, ALLOW A BUSINESS GOOGLE’S EXPERTISE IN SEARCH
TO REACH A WIDE RANGE OF ALGORITHMS

MARKETS, AND CANNOT BE

EASILY REPLICATED BY
COMPETITORS.
RE-ENGINEERING
 THE ANALYSIS AND RE-
DESIGN OF WORK-
FLOWS WITHIN AND
BETWEEN
ENTERPRISES IN
ORDER TO OPTIMIZE
END-TO-END
PROCESSES AND
AUTOMATE NON-
VALUE-ADDED TASKS.
 RE-DESIGN AND RE-
ORGANIZATION OF AN
ENTERPRISE
JUST IN TIME

 THE PRODUCTION OF
THE MINIMUM NUMBER
OF DIFFERENT UNITS,
IN THE SMALLEST
POSSIBLE QUANTITIES,
AT THE LATEST
POSSIBLE TIME,
THEREBY ELIMINATING
THE NEED FOR
INVENTORY.
 THE PURPOSE OF JIT
PRODUCTION IS TO
AVOID THE WASTE
ASSOCIATED WITH
OVER PRODUCTION,
WAITING AND EXCESS
INVENTORY.
BENCHMARKING
THE PROCESS OF IMPROVING
PERFORMANCE BY
CONTINUOUSLY
IDENTIFYING,
UNDERSTANDING, AND
ADAPTING OUTSTANDING
PRACTICES AND PROCESSES
FOUND INSIDE AND OUTSIDE
AN ORGANIZATION
(COMPANY, PUBLIC
ORGANIZATION, UNIVERSITY,
COLLEGE, ETC.).
LEARNING ORGANIZATIONS
 CULTIVATE LEARNING
PROACTIVELY TO MAKE
THE TRANSITION TO A
KNOWLEDGE
INTENSIVE ERA.
 COLLECTIVE LEARNING
WITHIN AND ACROSS
WORK UNITS.

IN BUSINESS MANAGEMENT, A LEARNING

ORGANIZATION IS A COMPANY THAT
FACILITATES THE LEARNING OF ITS
MEMBERS AND CONTINUOUSLY
TRANSFORMS ITSELF.
PROJECT MANAGEMENT
 PROJECT: A PROJECT IS
A TEMPORARY
ENDEAVOR
UNDERTAKEN TO
CREATE UNIQUE
PRODUCT, SERVICE OR
RESULT.
 PROJECT MANAGEMENT
IS THE APPLICATION OF
KNOWLEDGE, SKILLS,
TOOLS AND
TECHNIQUES TO
PROJECT ACTIVITIES TO
MEET THE PROJECT
REQUIREMENTS.