The building bridge company

University Degree Architecture, Building and Planning

Management Principles Coursework 2008-2009

The building Bridge Company

The Building Bridge Company

In my essay I am going to answer question one by explaining the systems theory, and where relevant contingency theory, identify and differentiate the different sub-systems and parts of the bridge building organisation that are represented in the case study. Then describe how these differentiated sub-systems and essential parts inter-act with each other and identify the failings in the first part of the storey. Describe the integrating processes and mechanisms that are developed during the storey to bring about greater integration and success in the later part of the storey.

Systems Theory

Systems theory has had a significant effect on management and understanding organisations. A system is a collection of part unified to accomplish an overall goal. If one part of the system is removed, the nature of the system is changed as well. For example, a pile of sand is not a system. If one removes a sand particle, you’ve still got a pile of sand. However, a functioning car is a system. Remove the car engine and you’ve no longer got a working car. A system can be looked at as having inputs, processes, outputs and outcomes. Systems share feedback among each of these four aspects of the systems.

Inputs would include resources such as raw materials, money, technologies and people. These inputs go through a process where they’re planned, organised, motivated and controlled, ultimately to meet the organisation’s goals. Outputs would be products or services to a market. Outcomes would be, e.g., enhanced quality of life or productivity for customers/clients, productivity. Feedback would be information from human resources carrying out the process, customers/clients using the products, etc. Feedback also comes from the larger environment of the organization, e.g., influences from government, society, economics, and technologies. This overall system framework applies to any system, including subsystems (departments, programs, etc.) in the overall organisation.

The effect of systems theory in management is that employees from different departments are helping managers to look at the organisation from a broader perspective. Systems theory has brought a new perspective for managers to interpret patterns and events in the workplace. They recognize the various parts of the organisation, and, in particular, the interrelations of the parts, e.g., the coordination of central administration with its programs, engineering with manufacturing, supervisors with workers, etc. This is a major development. In the past, managers typically took one part and focused on that. Then they moved all attention to another part. The problem was that an organization could, e.g., have a wonderful central administration and wonderful set of teachers, but the departments didn’t synchronize at all.

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Contingency Theory

The contingency theory asserts that when managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation at hand. Basically, it’s the approach that “it depends.” For example, the continuing effort to identify the best leadership or management style might now conclude that the best style depends on the situation. If one is leading troops in the Persian Gulf, an autocratic style is probably best (of course, many might argue here, too). If one is leading a hospital or university, a more participative ...

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Contingency Theory

Technical Subsystem

The technical subsystem refers to the knowledge required for the performance of tasks. Organisational technology means the transformation of inputs into outputs. The technical subsystem is determined by the purposes of the business and will vary according to task requirements.

Psycho-Social Subsystem

The social/political subsystem consists of individual behaviour and motivation, status and role relationships, group dynamics, and influence networks.

Structural Subsystem

Intermixed with technical and social/political subsystems is structure. Structure is concerned with the ways in which the tasks of the organization are divided and with the coordination of these activities. In a formal sense, structure can be set forth by organisation charts, job descriptions, floor diagrams, and rules and procedures. It is concerned with patterns of authority, communication and work flow.

Managerial Subsystem

A managerial subsystem is the function of supervising those that do the work; it plays the role of planning, monitoring, setting objectives and designing the organisation.

In the building bridge company the system theory is represented at the end of the case study where the members of staff input their information, human energy, skill, materials and money to work towards the company’s objectives. At the 10 o’clock meeting on Monday all the staff talked about the problems which had recently occurred then worked together to solve them, for example Dick Carroll wasn’t getting along with Newton Borough Councils quantity surveyor, So Angela Bader who was currently negotiating with him for another project said she would have a word with him and Dicks reply was ‘that’s not a bad idea, Angela, he’s probably more likely to take it from you than me. I just can’t seem to hit it off with him at all.’

The contingency theory was represented at the end of the meeting on Friday were Jack Grayson (manager) told everyone the reality of the situation, that all of their jobs were on the line if they didn’t make a success of new office. On Monday every one that was present for the meeting had a different attitude towards each other which led to them using all parts of the sub systems.

They all used their knowledge to perform tasks e.g. Ed Cochrane (purchasing manager) ordered a lot of materials at the beginning of the project. So tasks that couldn’t be completed because of the weather, other work could start because they already had the materials on site. Ed laughed and said ‘yes, I know you’ve all thought I was crazy to get the stuff too early.’ (which is part of the technical subsystem) They all talked about how they can work with the council and other companies that they need to work with to complete their tasks as I mentioned before. (This is part of psycho-social subsystem). The Structural subsystem was represented through the staff communicating with each other to organising how they are going to reach their objectives. The managerial subsystem is present when Jack asked to look over the schedules to see if any short cuts can be made and asked staff to get back to him on what they talked about in the meeting, it shows that he planning and monitoring his staff.

Subsystems are inter-related which all have dependencies upon each other. The managing system responds to the technology and people. The people respond to the actions of the management. The organisation itself is a subsystem of the supra-system and responds to changes in the environment and in other organisations. In the beginning of the storey we established there were some problems within the company but instead of trying to solve them together they were all blaming each other for the problems.

Organisations must balance differentiation and integration to be successful. Those companies who manage to achieve high sub-systems differentiation and yet still maintain high integration between sub-systems seem to be best equipped to adapt to environmental changes. Differentiation as "the state of segmentation of the organisational systems into subsystems, each of which tends to develop particular attributes in relation to the requirements posed by it relevant external environment." Integration is the process of achieving unity of effort of the various subsystems in the accomplishment of the organisation's tasks.

In the beginning of the storey the staff was blaming each other for the problems that occurred. In the second meeting in storey the employees were using their knowledge and skills to help each other complete tasks. The meetings took place to talk about why they fell behind the schedule and what they can do to get back on track, e.g. In the second meeting Ben Gibson said ‘I can reschedule some of the work I’m doing on our private housing at Wellcome Road. I’m ahead of schedule at the moment, Dick, and our sites are only two miles apart, so let me know your requirement if you want some more men, and I’ll switch them over to you.’ In the second meeting the employees were integrating with each other. The second meeting had a more cohesive outcome because the staff was processing their inputs together to produce the outputs the company requires to meet their organisational objectives. Feedback is also an essential part of an organisations success; the manager must develop sub-system to obtain adequate feedback upon which to take further decisions. At the end of the meeting Jack asked some the staff to get back to him on their progress with some of the tasks they set for themselves.

Conclusion

The state of inter-dependency and integrated function of the sub-systems presupposes that they all function in perfect co-ordination. Operational processes flow in sequence resulting in the output of a preceding sub-system as the input of the next or succeeding sub-system. In the Building Bridge organisation, for example, the Purchase department orders raw-materials and makes them available to the production department, who in turn converts them into finished goods and passes on to the sales department. Thus the sales department would be able to honour its delivery commitments only if the purchase and production departments co-ordinates their jobs under a common time-schedule. The inter-dependent departments through the technique of co-ordination are able to contribute towards a common goal. The result is seen as a single action of the whole and not as diverse acts of the individual parts.

Operating towards a common goal under a state of perfect co-ordinations the sub-systems bring about a role of synergy in management. Mutual association and harmonious inter-action of the sub-systems results in their collectively contributing more than the sum total of their individual outputs. Thus a group of five persons representing five different functions of a single job working in mutual coordination is able to render more output compared to the same job, when performed by them individually without coordination and without forming a single team. This is equally so, if all the five parts (functions) are bundled in a single part (person). In this case working for 5 days, the single person will be turning out less output than the case five persons referred earlier working co-ordinatedly for one day.