People and Organizational Management in Construction

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Transcript of People and Organizational Management in Construction

People and organizational management in construction


People and organizational management in construction

Shamil p o u m 1

Published by Thomas Telford Publishing, Thomas Telford Ltd, 1 Heron Quay, London El4 4JD. URL: Distributors for Thomas Telford books are USA: ASCE Press, 1801 Alexander Bell Drive, Reston, VA 20191-4400, USA Japan:Maruzen Co. Ltd, Book Department, 3-10 Nihonbashi 2-chome, Chuo-ku, Tokyo 103 Atrstmlia; DA Books and Journals, 648 Whitehorse Road, Mitcham 3132, Victoria


Preface About the author AcknowledgmentsFirst published 2001 lso available from Thomas Telford Books he Decision makers: ethics for engineers. James ArmFZEii$g-bd3-MmT , m a Rabhsan. ISBN: C? 7277 2598 X ~ lent decisions for engineers. James Parkin. IS= 0 7277 2501 ue record for this book is available from the British Library


Chapter 1 Introduction The meaning of organization Aim and learning objectives of the lrrook Need for the book Approach to the book The plan of the book Chapter 2 Evolution of organization and management theory Learning objectives - The meaning of management Evolution of management theory Classical theory (1850s-1930s) Human relations theory System theory Contingency theory The concept of models Summary and conclusion Chapter 3 The environment Learning objectives The environment, boundaries and organizations as an open system Characteristics of the external environment Forces of the external environment on organizations Strategic response to the environment




c)Dr Shamil Naoum and Thomas Telford Limited 2001All rights, ~ncluding translation, reserved. Except as permitted by the Copyright, Designs and Patents Act 1988, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior written permission of the PubIishing Director, Thomas Telford Publishing, Thomas Telford Ltd, 1Heron Quay, London El4 4JD. This book is published on the understanding that the author is solely responsible for the statements made and opinions expressed in it and that its publication does not necessarily imply that such statements and/or opinions are or reflect the views or opinions of the publishers. While every effort has been made to ensure that the statements made and the opinions expressed in this publication provide a safe and accurate guide, no liability or responsibility can be accepted in this respect by the authors or publishers. y Academic + Technical Typesetting, Bristol d bound in Great Britain by MPG Books, Bodmin, Cor




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ContentsChapter 4 Organizational strategy Learning outcomes The concept of strategy Strategic management Types of strategies Advantages of a planned business strategy The business strategy process Apparent characteristics of a business strategy Summary Case study 1.A medium-sized regional contractor Case study 2. A progressive quantity surveying practice Chapter 5 Organizational structure Learning outcomes The meaning of organizational structure Topics associated with organizational structure Types of organizational structure Factors influencing the choice of organizational structure Configurations of the organization The relationship between organizational structure and performance Summary Case study. The growing pains of Harvey (Engineers) Ltd Chapter 6 Work groups Learning outcomes The meaning of groups The purpose of groups Bases for grouping Interdependence and communication networks Factors affecting group cohesiveness and effectiveness Team building Group conflict Summary and conclusion Case study. Chelston plc Chapter 7 Organization culture Learning objectives The concept of culture The Harrison/Handy culture types Characteristics of culture The best fit Theoretical framework of factors that contribute to a change of organizational culture Strong and weak cultures Culture and company performance Summary Case study. Culture change and quality improvement in British Rail


Chapter 8 Leadership Learning objectives The nature of leadership Leadership versus management Leadership theories Trait theories Style theories Contingency theories Conceptual model of leadership effectiveness in organizations Leadership effectiveness of construction projects Summary Case study. A change of project managers Chapter 9 Motivation and job satisfaction Learning objectives The meaning of motivation Content theories of motivation Process theories of motivation Factors influencing employees' motivation within an organization Productivity model of a construction site A productivity survey Summary and conclusions Chapter 10 Personnel management Learning objectives The meaning of personnel management The personnel function Manpower (human resource) planning Recruitment Staff appraisal Staff training Management development Investors in People (IIP) initiative Health and safety Summary Case study. Investors in People at Shepherd Construction Index

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About the author

The importance of the construction industry is highlighted by the fact that it is very labour intensive and provides work for about 6-7% of the total work force in the UK. Despite its importance, there seems to have been a limited amount of research conducted on the behavioural aspects of the construction industry. Moreover, the texts that are available on the management of organizations and people in construction are also limited. The aim of this look is therefore to fill this important gap by applying general principl~ of management specifically to the construction industry. The idea of writing this book grew out of my belief that people are the heart of any successful organization and can be regarded as the building blocks of its structure. Throughout my career as a project manager and as a lecturer in construction management, I became convinced that practitioners, as well as construction students, needed a book that could offer an applied approach to people and organizational management in order to help them understand human and organizational behaviour as well as to assist in the search for the most appropriate ways of improving organizational performance and effectiveness. In this book, this will be achieved through the study of the management concepts and theories and the application of these concepts and theories in construction-related case studies. It is the blending of theory with practice that is at the heart of good management of people and organization and the study of the subject should reflect that experiential learning, as in the case studies and examples presented in this book. The key issues which will be discussed in this book are evolution of management theories, environmental forces, strategy, organization structure, work groups, organizational culture, leadership, motivation and personnel management.









Dr Shamil Naoum is a senior lecturer at South Bank University. He received a BSc in Building and Construction Engineering from the University of Technology in Baghdad, an MSc in Construction Management and Economics from Aston University in Birmingham, and a PhD in Construction Management from Brunel University in Middlesex. Before beginning his academic career he worked in the construction industry as a site engineer and project manager. He is a full member of the Chartered Institute of Building and the American Society of Civil Engineers. Dr Naoum has considerable research experience in construction management related areas such as Human Resources Management, Procurement Methods and Information Technology. Dr Naoum also supervises PhD students researching into construction management problems. He wrote the well known book Dissertation Research and Writing fov Construction Students, which was published by ButterworthHeinemann in 1998. During his academic career, Dr Naoum has presented papers at many international conferences and for publication in a diverse group of scholarly journals, including Construction Engineering and Management by the American Society of Civil Engineers (USA), International Journal of Project Management (UK),lournal of Engineering Construction and Architectural Management (UK) and Occasional Papers No. 45 by the Chartered Institute of Building (UK).


Robert Newcombe and Mike Hancock for their workbook 1 and 2 on Concepts of Management, MSc in Construction Management by distance learning, produced by the University of Bath (1996). Antony Sidwell for his notes on Organizational Theory, MSc in Construction Management and Economics, University of Aston (1980), unpublished notes. r Andrew Brown for his book, Organisational Culture, published by Pitman (1998), second edition. References to sources of information and material are given as accurately as possiljle throughout this book. Apologies are expressed if any acknowledgment has inadvertently not been recorded.

This book builds on the thoughts and ideas of earlier writers on the subject of organization and human behaviour. I would like to give special credit to previous contributors in the field. In particular, I wish to record my acknowledgments to the work of the following writers. Laurie Mullins for his book, Management and Organizational Behaviour, published by Pitman (1999)) fifth edition. Fremont Kast and James Rosenzweig for their book, Organization and Management - A System and Contingency Approach, published by McGraw-Hill (1985),fourth edition. David Langford, Mick Hancock, Richard Fellows and Andy Gale for their book, Human Resources Management in the Construction Indus