Management Fundamentals of Organisation - Report Example

Management Fundamentals Introduction Every project requires certain amount of coordination and organisation which are in accordance to the policies and regulations being followed by the organisation or the project originator. Management has always been a part of the overall development of a project, even when the project has been undertaken in the past. In fact, the historical projects are also constructed as per the management decisions taken by the leaders as shown the case study being discussed in detail in this paper. In order to understand the evolving nature of management and the influence of economic, social and political conditions on management decisions, the paper would compare between the management styles being followed by a historical project and a recent commercial project. 1. Historical Management Project: Taj Mahal The Taj Mahal, one of the Seven Wonders of the World is an incredible monument, constructed on the order of Emperor Shah Jehan in honour of his wife Mumtaz Mahal. Known, as one of the finest creation of Mughal architecture, it is a combination of Islamic, Turkish, Persian and Indian architectural styles. The construction of Taj started in 1632 and took around 22 years to complete and around 5 more years for completing the garden. The massive work was completed with the help of around 20,000 workers, which included masons, sculptors, calligraphers and craftsmen from Ottoman Empire, Persia and Europe (Preston and Preston 2008). The structure is based on a raised, square platform with the corners being truncated giving it a form of an unequal octagon. The monument was built using the design technique of interlocking arabesque concept, wherein all the elements used in the design has a unique place in the entire structure and yet integrates seamlessly with the main structure. Although, it is tough to estimate about the total cost incurred to construct the mausoleum, historians estimate that around 32 million Rupees were spent during that time (Preston and Preston 2008). As the project was completely financed by the emperor himself, it was possible to undertake such a massive project. Further, Taj Mahal was constructed for emotional reasons and not for commercial gains and therefore, the project despite its expense, was not disbanded in the mid-way, which has been seen in most cases about projects based on gaining creativity and excellence. 1.1. Management decision processes The management style used for the construction of Taj Mahal can be defined as an autocratic or authoritarian one, as it was a personal project of Emperor Shah Jahan, who was also the ruler of India at that point of time. Thus, all the important decisions related to the project were taken by the emperor himself, including closely supervising and controlling the workers as well. In such a management style, the supervisor only undertakes a one-way communication and gives orders for others to follow, which are expected to be obeyed by the workers. Although, such a management style has its limitations as it does not help in motivating the employees, it could have been quite effective in the case of constructing Taj Mahal as the decisions involved in making such a massive project could be taken quickly without any bureaucratic hindrances (Baker 2008). 1.2. Application of management theory The construction of the iconic monument however took 22 years to complete and a huge funding, which could have been reduced if proper management techniques were undertaken. For instance, the management style used for the construction of Taj Mahal was an autocratic one, which meant that only the Mughal Emperor was the decision-maker and everyone had to abide by that. Although, this helped in decreasing obstacles in the project, it also led to delays and lack of motivations among the employees. As the emperor was not available to make every decision, the work often may have to be put on hold. In such a case, implementation of Max Weber’s (1946) theory related to bureaucracy could have resulted in a better project output. Weber stated that such a form of organisation helps in transitioning from the small-scale to the larger organisation as the organisation is strictly being governed by rules. There is also a defined hierarchical system of authority in bureaucracy, wherein the labour is divided as per specialisation and duties. Further, the work is also rewarded as per the competence of the workers. Therefore, the work instead of being stalled due to lack of decisions being made would have continued with the decisions being undertaken by the next-in-command. Further, implementation of a proper management process would have ensured that a certain collection of rules, methods, principles and procedures are being established which are also checked and tried through experience. Such a theory, propagated by Fayol (2004) focuses on the fact that the emperor should have established a management that looked after the entire gamut of work including planning, organising, coordinating, commanding and controlling, while guiding the mangers on how to run various operations. As per Fayol (2004) managerial abilities are very important for the success of any project, and therefore for the speedy construction of the iconic monument, it was important to focus on creating a strong management team, with decision-making powers. The project was completely based on the orders given by the emperor. This resulted in a one-way communication between the emperor and the workers, which further led to de-motivation among workers and delays in the project. Instead, with the use of proper human relations management, the dehuminising effect of the commands and orders of the emperor could have been reduced and attention to individual capabilities could have been stressed upon. Further, behavioural sciences would have helped in understanding the workers’ needs and eventually aligning them with the policies and needs of the organisation, which in this case was the passion of the emperor to make a mausoleum for his beloved wife (Cleland and Ireland 2006). Elton Mayo (1977), for instance, propagated a supervisory role wherein the manager needs to be open, concerned and willing to listen to the employees. He said such a change would result in creating better bonds within the organisation and teams. Further, construction of such a massive monument required constant coordination between workers and even managing artisans from different parts of the world. Managing different nationalities, artisan temperaments and building an architectural wonder would not have been an easy task. However, with the implementation of the scientific management theory, it could have been easier to manage such a disparate group by turning the project like a manufacturing plant through routine and ongoing checks about the various tasks being undertaken. On the basis of the inspection, workers could have been punished or rewarded, which would helped in speeding the process of the construction. As such a huge project also meant casualties and problems therefore it would have been advisable to use contingency theory as well to help in making decisions based on the current situation and issue (Barry 1997). Scientific management propogated by F.W. Taylor (1923) studies the relationship between people and tasks for redesigning the work for getting higher efficiency. Such a management style helps in reducing the time taken by workers on each task through optimising their work and time. This helps in significantly improving the productivity. Taylor believed that providing achievable performance standards would help in reducing soldiering. Further, he also introduced the concepts of project management and incentive schemes to help in planning the work in a better manner and motivating the employees. Some of the major principles being followed by Taylor (1923) included studying the way the jobs were currently being performed and based on that create new ways to improve them. Further, he suggested that the workers should be taught about new methods to improve processes, while giving benefits for higher productivity. He recognised that it was important to understand the relationship between employers and workers and stated that it is the task of the management to plan work and monitor the employees effectively. Frank and Lillian Gilbreth also investigated the scientific management style and stated that each work component needs to be broken down further and finding better ways to perform the task. Thus, with the implementation of a scientific management style, it would have been possible to understand the capabilities of the employees and use their abilities in an optimal manner for completing the task on time. 2. Modern Management Project: Burj Khalifa The strategic management and the project management process have evolved with time and a number of changes have been incorporated in the last century. This can be studied through the project management of the tallest building in the world, Burj Khalifa being developed in Dubai. The project was undertaken by the government and was started in the year of 2004 and was completed in the year of 2009, and it was opened for business in the year of 2010. The project was developed to ensure that the tallest building in the world could be established in the region and the developers also aim to ensure that it could become a commercial hub. The region is undergoing a change and it is one of the most important changes that have occurred in the region that has helped in the development of the region in the recent years. Burj Khalif is being developed by Emaar Properties, who are considered to be the largest real estate and land developer in the Gulf region. Skidmore, Owings & Merrill (SOM) was employed to create the design for the tower, while the construction process was being undertaken by Samsung Engineering and Construction. Further, Turner Construction Co. was hired as the project’s construction manager. There are a number of economic challenges that had come forward during the development of project which the management had to look into including international economic and political pressures. The project ran into trouble when Dubai was indicated to be undergoing financial distress during the end of 2009. It was analysed that Dubai would not be able to settle its debt and would become illiquid if assistance is not provided. This debt default could have also meant halting major construction projects in the city, including Burj Khalifa. However, with an assistance of US$ 10 billion from Sheikh Khalifa bin Zayed al-Nahyan, head of UAE and ruler of Abu Dhabi, the project was back on track. The construction of the tower was also not without hindrances. On March 21, 2006, around 2,500 migrant labourers protested against the management and rioted to demand for pay raise. These workers asked for better wages, facilities and treatment from their foremen and supervisors. The protest turned ugly with the workers beating security officers, destroying office equipments and construction machines. The total damage was estimated to be around US$ 1 million. 2.1. Compare and contrast the management process In the past few years, the entire façade of Dubai has seen a massive change with the construction of Burj Khalifa, a magnificent modern wonder. The completion of the project received widespread news coverage throughout the world, with comparison being drawn with the existing as well as planned skyscrapers. It received myriad coverage from appreciation to criticism. Such an architectural wonder truly does not have a modern equivalent and therefore, could only be comparable with the magnitude of the extraordinary monument, Taj Mahal. It has been seen that most great projects during the course of history are being undertaken during the regimes which has been witnessing a prosperous and stable period. For instance, during the progress of the Pharaohs, the pyramids were built, while during the time when the Mings decided to consolidate their power, the Great Wall of China was built. In today’s contemporary and post-imperial era, the rises of the Asian and Arab civilizations have been evident, especially the Arab civilization, wherein huge amount of resources are being invested into to various future projects that are changing even the face of the other parts of the world. Due to the huge amount of liquidity available in the region, the Arab civilization has been undertaking various ambitious and audacious projects for the last few years. Among the vast number of such projects, the Burj Khalifa stands out being the tallest building in the world (Moore and Beadle 2006). However, both the magnificent structures faced several management issues during their construction, which were elaborated in the previous sections. While Taj had implemented an autocratic management style, where the emperor was the first and last command, Burj utilised the management style of using force to command the employees and not pay them according to their labour. Thus, both the management of the structures used a very autocratic management style, where in the labours were forced to work long hours, in un-healthy conditions, under bad management and for low-wages. While, the workers at Taj did not have much choice, the Burj workers decided to protest against the management, which resulted in huge damages (Mintzberg 1994). In order to survive various economic, political and social challenges, it is important for the management to take a fresh look at the strategies and methods that it has undertaken and ensure that the employees are motivated towards their work. It is also necessary to examine the areas where the depth of commitment has been lacking and ensure the change and revision of the strategies that are flawed and have not yielded the requisite results (Futoran et al. 1997; Wheelen and Hunger 1998). However, such a strategy was not adopted in case of these two structures, which resulted in delaying of the project in case of Taj and dissatisfaction among employees in case of Burj. Further, in order to create a sustainable project, it is important to place a realistic understanding of the economic climate that creates new opportunities if the company has to try and improve market position and its chances of development through a process of construction of customer trust, creation of a meaningful brand differentiation, remodeling and customizing offers in the context of customer needs that are evolving and, if necessary, the negotiation of new terms (Cummins and Hubbard 1994; Zeitoun and Helmy 1977). Although, Burj had been able to adopt these management fundamentals as it is a commercial project, Taj could not incorporate these as it was a project undertaken due to emotional and personal reasons. Another important area that has to been focused upon by the organisation is that the management also has to look into the social responsibility that it has towards the society. This is done by the organisations through a number of strategies, such as employing the minorities and the women so that they can be developed and bettered in society (Verlag 2009). This will also have a positive impact on the finances of the organisation as the government provides rebate and subsidies to organisations which invest in such ventures. Thus, the overall result of such investment on the part of the organisation will be reflected in the finances and the functioning of the enterprise in the long run. It has tried to ensure that it could increase the social and economic development in the region by attracting foreign investment in the region for growth and development (Griffin and Putsay 1998). With regards to Burj or Taj such management practice could not be found as both were somewhat pompus in their outcome and thought more towards economic or creative gain rather than benefitting the society at large. Although, construction of Burj did lead to employment and investment in the region, it mostly benefitted the promoters of the project rather than the society at large. It has been observed that the role of the management of the modern project is highly different than the one that was followed when developing the Taj Mahal. The reasons for the development of each project were different. The first was for emotional reason and the second was more organized and well structured. Both have certain positives, but the later was more effective and structured (Cleland and Ireland 2006). Thus it has to be realized that the role of strategic management has evolved and changed with time, and there are today certain changes that are result of technical variations where as others are results of political social and economic reasons (Barry 1997). The most important fact that has to be kept in mind is that management has always been a part of all aspects of functioning and that it is only through evolution and change that more efficient methods of functioning can be established. Reference Baker, W.T. 2008, Architectural excellence in a diverse world culture, Images publishing Barry D 1997, Strategy Retold, Towards a narrative view of strategic discourse, Academy of Management Review, Vol 22, No 2, pp 429-52. Cleland D I, Ireland L R 2006, Project Management: strategic design and implementation, The McGraw Hill, 2006, 3rd ed, pp 20-34. 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