d39bu lesson one: introduction to business management · pdf filed39bu lesson one:...
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D39BU LESSON ONE:
INTRODUCTION TO BUSINESS
MANAGEMENT IN BUILT
ENVIRONMENT (BMBE)
1
Business Management in the Built Environment
sl/BMBE/2016
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D39BU – BUSINESS MANAGEMENT IN THE BUILT ENVIRONMENT
Lesson One :
Introduction , outline of module &
Overview of Strategic Management Approaches
Adapted from HW University ‘s notes from Dr Scott Fennie & Dr
Turker Bayrak
2 sl/BMBE/2016
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Why is this course relevant ?
• It is fundamental to the success of their members education (you) and their own success – the bodies themselves are an organisation!
• Our profession requires us to understand and display a good knowledge of strategy.
• It is for our career development within the organisation
hierarchy to know the Art of War with regards to strategy
• HWU SBE is not here to provide graduates with only
technical skills, we want to provide high quality professionals
who are capable of independent thought, taking the initiative,
debating and communicating complex ideas.
3 sl/BMBE/2016
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Relevance of strategic management
• Engaging with this course is therefore fundamental to developing you as a fully rounded professional.
• The course will also provide you with a platform to understand the complexities of the organisational world and most importantly, strategy.
• The course will also challenge you to think in a very different way from the dominant paradigm used in your technical education.
• An understanding of and an ability to engage with and develop strategic management qualities sets you out for promotion. It makes a huge difference to your future
4 sl/BMBE/2016
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Aims of this module
• Broadly introduce Business management (planning in a sense) issues (with a capital B)
• To explore the strategic arena in which the BIG decisions are made
• To introduce strategic management theories
• To provoke you into thinking more broadly and strategically about your industry and its relation to the strategic management literature
• To explore briefly the changes and challenges that MAY face your industry
• To further develop your academic knowledge and research skills
• To develop your professional knowledge of organisations
5 sl/BMBE/2016
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OUR MODULE CATCHPHRASE?
“Think Squirrels. Think nuts.”
“Some Strategic advice:
What does a squirrel do in summer?
It buries nuts. Why?
Well, in wintertime it’ll have something to eat and won’t die.
So, collecting nuts in the summer is worthwhile work.
Every task you do at work, think…
Would a squirrel do that?”
Clegg et al. (2005), p409
D39BU – Business Management in the Built Environment
6 sl/BMBE/2016
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STRATEGIC & BUSINESS
MANAGEMENT …IT’ S NO
JOKE!
D39BU – Business Management in the Built Environment
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IMPORTANCE OF STRATEGIC BUSINESS
MANAGEMENT:
• TO INCREASE SHAREHOLDER VALUE
• TO ACHIEVE GROWTH WITHIN THE
MARKETPLACE;
• TO IMPROVE PROFITS AND MAXIMISE
SUCCESS
• TO SATISFY CUSTOMERS
• TO PROVIDE EMPLOYMENT
D39BU – Business Management in the Built Environment
8 sl/BMBE/2016
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Relevance & importance of business management to
you and I (as managers & leaders)
• FUNDAMENTAL GROUNDING OF MANAGEMENT THEORIES;
• DISPLAY A GOOD KNOWLEDGE OF STRATEGY AT WORKPLACE;
• HELPS MANAGERS TO HARNESS ABILITY TO THINK;
• ENABLES MANAGERS TO THINK STRATEGICALLY & TO PLAN AHEAD;
• ENABLES MANAGERS TO COUNTERACT CHALLENGES FACED AT THE WORK SITUATIONS BY APPLYING MANAGEMENT TECHNIQUES AND MODELS ….
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What YOU hope to achieve from this course?
• TO PREPARE AND PASS THE EXAMS WELL
• TO HAVE SUFFICIENT KNOWLEDGE TO APPLY AT THE WORKPLACE
• TO BECOME BETTER MANAGERS AND LEADERS
• TO BE MORE FORWARD THINKING AND PROACTIVE
• TO FACE CHALLENGES HEAD ON …
D39BU – Business Management in the Built Environment
10 sl/BMBE/2016
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Other things you should develop
• To be an independent learner by having the freedom to
explore academic material
• An ability to find, deconstruct and interpret material to aid
understanding
• Freedom to think and express your views
• A healthy dose of cynicism
• Presentation and communication skills
D39BU – Business Management in the Built Environment
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Objectives & Aims of this module
• Broadly introduce Business management (planning in a sense) issues (with a capital B)
• To explore the strategic arena in which the BIG decisions are made
• To introduce strategic management theories
• To provoke you into thinking more broadly and strategically about your industry and its relation to the strategic management literature
• To explore briefly the changes and challenges that MAY face your industry
• To further develop your academic knowledge and research skills
• To develop your professional knowledge of organisations
D39BU – Business Management in the Built Environment
12 sl/BMBE/2016
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Broad themes to be covered in module
(refer to Textbook )
• Introduction
• Schools of thought (1)
• The strategic management process
• Strategic analysis & Strategic Choice
• Change in construction Industry
• Implementation and feedback
• Q&A feedback sessions
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Let’s start off with the meaning of “Built Environment “
Built environment refers to the human-made
surroundings that provide the setting for human
activity , ranging in scale from personal shelters
and buildings to neighborhoods and cities that
can often include their supporting infrastructures,
such as water supply or energy networks etc..
D39BU – Business Management in the Built Environment
14 sl/BMBE/2016
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3 main areas in Built Environment
• Architecture & Environmental Psychology
• Landscape Architecture
• Urban Planning
• The field of Built Environment is generally not regarded as a traditional profession or academic discipline in its own right, instead drawing upon areas such as economics, law, public policy, management, design, technology, and environmental sustainability.
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Real Estate Industry is a strategic balance of
several activities
Capital Risk –huge sums of money involved
Ownership risk
Development risk – vertical and horizontal
Management risk
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Real Estate Industry Roles in the economy
• Land speculation - land /property brokers
• land development – technical prof/financial prof/consultants/general management people
• Building development- construction management/leasing prof/brokers
• Ownership of a stabilized asset development – property owners/stakeholders such as portfolio management/asset management prof/property management prof/consultants/maintenance services professionals
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The nature of construction business
• Involves a complex array of independent activities, materials
and people with the following challenges:
a. The demand for construction is inconsistent
b. Work is seasonal not continuous
c. Wide range of designs and lack of uniform in presentation
d. Technological challenges
e. High risk of unforeseen circumstances such as natural
disasters, calamities and human errors
f. Challenge of getting the right manpower and labour
g. Output is also dependent on many factors in spite of good
design
h. Refer to pg 7 of Unit 1
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Understanding management principles
• What is the role of a manager in a built environment
setting?
• Development of management thinking and philosophy
• Traits of a good manager
• Leadership and theories
• Traits of a good leader
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WHAT IS MANAGEMENT?
Some definitions of management includes the
following:
• Running things properly and efficiently
• Getting things done through people –
• Making decisions to achieve goals set by
organisation
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Development of Management Thinking
Frederick Taylor – Father of Scientific Management :
His principles were:
• Develop a systematic and consistent approach (or science) for each
operational activity
• Replace “ad-hoc” or “rule of thumb” practice
• Determine accurately the most suitable method and allowable time
for each task
• Establish an organisation structure in which management is
responsible for managing workers, who will do the actual job
performance
• Use systematic or scientific recruitment and training of the
workforce, so that the best available staff are trained to perform their
tasks most efficiently
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What makes a good manager?
Essential Traits of a Manager
• List at least 4 qualities of what you think makes
a good manager?
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ESSENTIAL TRAITS OF MANAGERS? Pg 6
Initiative meticulous
Passion sense of urgency
Stress tolerance self control/discipline
Reliability thirst for knowledge
Positive attitude willingness to work
Mental toughness approachable & friendly
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LEADERSHIP pg 9 of unit 1
A GOOD LEADER IS ONE WHO POSSESS THE FOLLOWING:
• ABILITY TO CREATE VISION AND MOTIVATION
• ABILITY TO COMMUNICATE EFFECTIVELY
• ABILITY TO EMPOWER SUBORDINATES BY SHARING POWER
• ABILITY TO ORGANISE TEAMS BASED ON THE STRENGTHS AND WEAKNESSES OF EACH PERSON
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LEADERS VS MANAGERS
TRAITS OF A GOOD LEADER?
A brainstorming session
Then, discuss:
Critically analyze the traits which characterize a
successful leader /entrepreneur
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Tannenbaum & Schmidt’s leadership continuum
Refer to Fig 1.3 : PG 11 OF Chapter 1 (draw the diagram)
Business Management in the Built Environment
The manager’s use of authority
Subordinate’s scope for discretion
tight flexible
Mgr makes Decisions alone
Mgr consults group first
Mgr & group Discuss & decides
Subordinates Makes decisions
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Leadership Styles pg 10 Unit 1
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SITUATIONAL LEADERSHIP MODEL: HERSEY &
BLANCHARD
Refer to Pg 13 of Unit 1
And discuss the scenarios from the
construction industry about the different
types of leadership style with this model in
mind ..
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Exam questions related to leadership
1A) Reflecting upon Tannenbaum and Schmidt (1973)
leadership style continuum theory, evaluate how two world
famous leaders of your choice would be classified?
B) Critically assess the long term implications of leadership
style in staff retention.
2A) Different types of leaders derive their powers from
different sources. Reflecting upon the types of leaders you
are familiar with;
B) Analyse the weaknesses and strengths of each of these
leader types possess
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Class discussion and exercise:
What are the differences between Japanese
construction companies and Western
Construction companies:
sl/BM
BE/20
16
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External macro environment (STEEPanalysis ) The internal analysis can identify the firm's strengths and weaknesses and the external analysis reveals opportunities and threats. A profile of the strengths, weaknesses, opportunities, and threats is generated by means of a SWOT ANALYSIS An industry analysis can be performed using a framework developed by Michael Porter known as Porter's five forces. This framework evaluates entry barriers, suppliers, customers, substitute products, and industry rivalry. (to be discussed in later lessons )
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WHAT ARE THE FORCES IN THE ENVIRONMENT that affects your
organisation? You need an environmental scan with Internal analysis
of the firm & external assessment (Unit 5 )
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References for reading
• Bennis, W. (1989). On Becoming a Leader. New York: Addison Wesley.
• Fryer, B. (2004). The Practice of Construction Management. Bodmin, Cornwall:
MPG Books Ltd.
• Ganaway, N. B. (2006). Construction Business Management "A guide to
Contracting for Business Success". Oxford: Elsevier.
• Hawkes, D. (2011). A Report Exploring Skills in the UK Construction Industry.
Englemere, Berkshire, UK: Chartered Institute of Building (CIOB).
• Kerzner, H. (2009). Project Management : A Systems Approach to Planning,
Scheduling, and Controlling. New York: Wiley.
• Schaufelberger, J. (2009). Construction Business Management. New Jersey:
Pearson.
• Volpe, S. P., & Volpe, P. J. (1991). Construction Business Management. USA:
Wiley.
•
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