How the Organisation Should Be Managed - Literature review Example

Institution : xxxxxxxxxxx Title : xxxxxxxxxxx Tutor : xxxxxxxxxxx Course : xxxxxxxxxxx @2012 Introduction The practice of management in any particular organization should be concerned with the application and knowledge of management theories. Nevertheless, there exists a persistent opinion that management in theory and in practice are two opposite aspects. This viewpoint has therefore overlooked or ignored the notion that the adoption of good theories leads to improved practice. Theoretically management is described as a process of getting things done through people. What is evident is that sometimes the implementation of the theoretical aspects of management differs from the actual management practice that is adopted by an organization. It against this backdrop that this paper seeks to explore the theoretical and actual practice of management in Tagara one of the leading construction companies in southern Australia. The analysis will be grounded on evaluation of teams work in the work-place and decision making in the organisation How the organisation should be managed based on the relevant theory or textbook suggestions Team Work Team working can be described as the practice of working together as a group in order to attain a certain objective (Scaife, 2004). Team work is one of the fundamental practices within the construction industry. In the industry, the construction team usually comprises of various individuals such as the engineer or the architect, constructers and consultants who are in charge of developing a construction document for the entity owning the building/project. According to Bende and Septelka (2012) one of the essential practices in managing team work within the construction industry is the development of clear objectives. Bende and Septelka (2012) highlight that in any sort of construction project; team members have different priorities and perspectives that manifest during the working process. It is therefore essential for the team members to have a clear understanding of the goals that are to be attained. If the goals of the team are clearly defined then the team members will be able to subordinate their individual concerns to those of the team goals. A study undertaken by Pinto and Kharbanda (1995) to examine the behaviour of effective team work, revealed that the more time spent on clarifying and defining the goals of a team, the lesser the time that is required in resolving disputes and problems that arise later in the construction of many buildings. Bende and Septelka (2012) further propose that the goals of the team should not only be clearly defined but rather they should be shared among the team members of the project. This is because many construction projects usually fail due to the lack of shared objective, which is a crucial aspect in attaining the objectives of the team. Productivity of team members is also a vital aspect within the construction industry. As opposed to other industries, a lot of effort and also brain work in needed in construction projects. For instance a constructer does not only require a lot of physically energy but also a lot of planning and coordination is needed. Marisa (2011) therefore proposes that in order to enhance the productivity of construction team members motivation is an important aspect. For instance; a study conducted by Marisa (2011) to examine the importance of motivating teams in the construction industry revealed that it is risky for construction companies to have de-motivated employees because without motivation, the productivity of the project team members will definitely be low. Consequently, Hedley, (2012) proposes that in order to effectively motivate teams in the construction industry and thus to improve productivity, the team members require two major things; good monetary rewards and happiness. Hedley, (2012) suggests that the monetary rewards should encompass competitive benefits and fair pay. Happiness on the other hand will come if the working environment is conducive and fair. Chow & Martin, (2005) highlight that; in order to effectively manage teams in the construction industry interdependence amongst team members is required. The construction industry workplace should be designed in a manner in which contributors or the team members become interdependent. This is due to the fact that in order to undertake various tasks, the input of all stakeholders is significant. Most of the tasks in the construction industry are usually interdependent and frequently one task can not be initiated before another has been completed. For instance a constructer can not begin to construct a house before the architect completes the design of the house. Consequently, Chow & Martin, (2005) highlight that in order to effectively manage teams in this industry there is need to develop positive interdependence. According to Chow & Martin, (2005) positive interdependence occurs when the team members have an understanding of the way in which their efforts or input have to be connected to those of other team members in order for the objectives of the team to be fully attained. Chow & Martin, (2005) argue that if positive interdependence is created, the team members will be able to share resources and ideas, work together, support each other and finally share the success of the project together. Decision Making in the Organisation Weippert (2001) argues that the culture of decision making within construction companies should not be individualistic but rather construction companies should adopt a corporate approach in making decisions. This implies that discussion making in the industry should basically be shared or group decisions. Fung (1991) however highlights that if decision making is done individually it should be based on the four force model, whereby individual decision making is influenced by a variety of factors as highlighted by Figure (1). Figure I: Four Force Model for Decision Making According to Chapman (1998) group decision making is an effective technique of detecting and also measuring risks in the construction industry. Risk is an unavoidable part of any particular project or in the operations that take place in a construction company. Furthermore, the total procedures of risk management and analysis bring about the biggest impact on the entire operations of the organization. Thus, Chapman (1998) argues that in order to embark on efficient risk analysis, it crucial to integrate the judgments of the core team members of the project. The way in which these judgments are collected is a principle factor in the effectiveness and value of the entire working process of the organization. Chapman (1998) conducted a study to evaluate the proficiency or effectiveness of group decision making in the process of risk identification and valuation. Chapman (1998) implemented the model of evaluating the effectiveness of groups in decision making, as suggested by Charles Handy. The model involved using techniques such as; normal group discussion techniques, brain storming and the Delphi approach. The findings of the study revealed that by adopting such methods the group embers were able to quickly identify risk and the ways in which the risk can be managed. Kerzner, (2006) also argues that group decision making is also effective in reacting quickly and solving problems that may arise in the working environment. Kerzner, (2006) highlights that; these can be done through the use of group decision making whereby people with the most knowledge are given a chance to evaluate the problem. In addition these people should be rendered decision making authority and responsibility. Actual (practice) In the Tagara Construction Company Team Work Tagara Builders Company focuses on building commercial construction projects and also residential houses; however the company currently focuses more on commercial constructions. In practice, the management of the company considers team work as very essential in the organization. In any particular project that the company is involved in, teams are usually formed. The team consists of architect, constructers and consultants. In terms of the development of clear objectives for team work, the team leaders of Tagara company projects ensure that; before initiating any type of project, the goals of the team are clearly defined. For instance in the recently completed project of known as the Prime space project, the team members developed precise objective that were met as intended. The facility was competed on time and the design was very unique as highlighted by the objectives. There is no specific difference that exists between theory and practice when it comes to the development of clear objective in team working. This is because the first priority of team working in Tagara is to develop clear objectives. In order to enhance the productivity of the team members, the management of team of Tagara has also adopted motivation as a fundamental strategy. For instance when a project is successful, the team members are usually given bonuses. The rewards are however not extended to all the departments in organization. There is actually no difference in the aspect of motivation as suggested by various theories. This is because the use of bonuses when projects succeeded is an effective strategy of making the team members more productive. Interdependence amongst team members also exists in Tagara Company. This occurs among the senior staff. For instance the views of the architect have to be adopted by construction managers. Among the junior staff interdependence is practiced through the adoption of a mentoring program. Tagara provides mentoring programs where most of the junior employees, who are usually generation Y employees, form teams where mentoring programs are provided by the senior member staff. However, during the mentoring program, the relationship between the junior and the senior staff is not fully interdependent. This is because the input of the junior management is not integrated. This implies that there is not much interdependence between the senior and junior management. There is a difference in the implementation of interdependence in managing teams. As highlighted by Chow & Martin, (2005) positive interdependence is created, when the team members are be able to share resources and ideas, work together, support each other and finally share the success of the project together. However in the context of Tagara, junior team members are not fully interdependent. Decision Making in the Organisation In terms of decision making, Tagara Company is actually managed very differently as compared to other companies. This is because instead of depending on a structure of a hierarchical pyramid, the structure of the company is inverted. This therefore implies that only the senior management in the organization does the thinking. Morgan and Laura, (2011) highlights that the inverted structure is mainly not a top management control approach, but rather the views of the senior management are complimented by the low level staff. However what is evident is that the approach promotes top management decision making as opposed to a group/corporate decision making approach. A difference can be noted in terms of the aspect of decision making as proposed by various theoretical proposals. This is because most of the theoretical proposals, propose the need for group decision making in the construction industry. This is based the fact that, as discussed earlier, group/corporate decision making can lead to effective assessment and also measuring risks and also solving problems that arise in the workplace,. Recommendations Tagara Builders Company should work towards creating positive interdependence in teams essential for teams that consist of junior employees. As argued by Chow & Martin, (2005) positive interdependence occurs when the team members have an understanding of the way in which their efforts or input have to be connected to those of other team members in order for the objectives of the teams to be fully attained. Consequently there is need for the company to also focus on integrating the efforts or inputs of the junior staff within the various teams. Also it is important for the company to adopt a collective decision making approach. Scaife, (2004) highlights that; group decision making can work because it leads to developing innovative and quality decisions. When the ideas of many individuals are brought together it is possible that the final outcome of the project will be of quality. In addition the thoughts of the various members of the group can be integrated in order to come up with innovative ideas. In order to come up with quality and innovative decisions, the organization should not only rely on top management decisions. Conclusion The discussion has presented views concerning theoretical suggestions on team working and also the aspect of decision making within the construction industry. The discussion takes note of the fact that team working is significant in the industry. In addition various approaches have to be adopted in managing teams which include, developing clear goals, creation of interdependence and enhancing productivity. It terms of decision making, group decision making was suggested as effective. When making an evaluation of the theoretical suggestions and the actual application of the suggestion in the Tagara Builders Company, the paper acknowledges the fact that there exists certain difference essentially in the aspect of decision making. The paper therefor proves that there is a difference between the implementation of the theoretical aspects of management and the actual management practice. References Chow, L and Martin, S, 2005, Characteristics of Teamwork in Construction projects, Queensland University of Technology. Chapman, R, 1998, ‘’The effectiveness of working group risk identification and assessment techniques, International Journal of Project Management’’ 16(6). Hedley, G, 2012, Motivating Strategies to Gain Better Performing Construction Employees, Construction News. Kerzner, H, 2006, Project management: a systems approach to planning, scheduling and controlling, John Wiley and Sons, New Jersey. Marisa, A, 2011, A study on the Importance of motivation in constructions companies, Journal of Science, Engineering and Technology. Morgan, D and Laura, C, 2011, Growth through Values, Service and Technology, Tagara Group, Business Review. Scaife, R.(2004). Best practice Guidance on Team working and safety, Prism. Septelka D and Bender,(2012), W Teambuilding in the Construction Industry, Sage. Tagara Website, 2012, Retrieved Weippert, A, 2001, Construction Industry culture , a need for change, Research by the Australian Cooperative Research Center for Construction Innovation Appendixes Organizational Chart for Tagara Builders Company Retrieved Read More