BUSINESS MANAGEMENT

1. BUSINESS MANAGEMENT 6506BESG Business Management FIONA BORTHWICK f.borthwick@ljmu.ac.uk Modified by Sally Low for TGC email : sallyklaus@yahoo.com

2. What do you think the Module is about?

3. What elements of a business need to be managed and by who?

4. Module Details • Aims: To broaden your appreciation of the complexities of modern business in particular factors affecting current and future business practice. To evaluate the major principles and techniques of effective management.

5. Context • Construction industry refers to construction and property sector (REMB, CM, BSEPM students registered / Full, Part and Block Delivery students) • Specific reference will distinguish between the various sectors and parties – Folders in BB

6. Module Details Learning Objectives • Critically examine the areas of ethics and social responsibility for an individual and an organization working within the construction industry. • Identify and evaluate aspects of strategic decision making for operating in a global market place.

7. Module Details Learning Objectives • Analyse the role of the 'manager' within a business context. • Critically evaluate a range of management techniques and carry out an analysis of how they can improve organizational and employee performance.

8. Module Details Learning Objectives • Analyse the impact of modern business processes on management and decision making within an organization in the Construction Industry. • Critically analyse aspects of change management.

9. Assessment • For this module you are required to complete two pieces of work. • 30% Individual Research Paper • Completed draft paper deadline week 6 • Feedback by appointment in week 7 • Turnitin available before submission deadline • 70% Closed book 3 hour exam • 3 questions from 5

10. What is expected as an answer for each exam question?

11. Submission • Research paper will be submitted Electronically through Blackboard in week 8 (Friday 5pm) • Word processed as one document • Maximum 1500 words • Research paper format • Harvard Reference Section

12. Today’s Lecture – Industry Factors • Factors Affecting the Structure of the Construction Industry • Nature of the Construction Industry • Importance of the Construction Industry • Determinants of Business Performance • Business Development • Managing Change

13. Factors Affecting the Structure of the Construction Industry What do you think are the factors?

14. Factors Affecting the Structure of the Construction Industry • Role of Government • State/ form of Capital/ investment Markets • Taxation • Nature of Clients

15. BREXIT???Do you think this is/will impact on construction and property sector? • Yes • No • Not sure

16. Factors Affecting the Structure of the Construction Industry • Organisation and Responsibilities of Designers and Contractors • Role of Legislation – Planning • Parties (stakeholders) Involved in the Construction Process

17. Factors Affecting the Structure of the Construction Industry Do you think these factors apply just to the UK?

18. Factors Affecting the Structure of the Construction Industry • These factors can be applied to different countries and they will be influenced by: • Economics • Culture • History

19. Nature of the Construction Industry • Complex • Diversity (variety) of technology • Nature of customers/ clients • Parties involved in the sector • Fragmented (disjointed) • Large number of small and medium firms and a small number of large firms

20. Importance of the Construction Industry Is the industry important? Why ?

21. Importance of the Construction Industry • 8-15% of GDP (Gross Domestic Product) • One of the major industries • Employs a high % both directly and indirectly • 20% of EU population • Seen as an economic barometer/ indicator

22. ORGANISATIONS Distinguish the language for the module (organisation and companies/firms) Identify types of firms

23. What is an Organisation? • An organization is a group of people organized to accomplish an overall, common goal or set of goals. • Business organizations can range in size from two people to tens of thousands.

24. What is management ? • Management is a process which exists to get results by making the best use of the human, financial and material resources available to the organisation and to the manager. The aim of management is to achieve goals through the coordination of available resources.

25. Roles of the Management Read Pg 3

26. Management Roles in a project

27. Hierarchy of Management Roles

28. Two ways of governing an organisation Pg 7

29. The Sectors: The Economy can be divided to Public and Private sector. The private sector: • Private individuals and firms that are owned by private individuals • Examples of firms in the private sector includes • Sole traders • Private Limited companies (Ltd) • Partnerships • Public limited companies (Plc)

30. The public sector: • Made up of central government, local government, and business that are owned by government • In the last 20 years the number of government-owned firms in the UK has shrunk massively • Example type of firm includes Public Corporations

31. Public Corporations • Public ownership • Government ministers appoint board, workers are not civil servants • Often seen as government owned • Not a strong profit motive

32. Roles within Construction Define one of the following roles: GP Surveyor Construction Manager Building Services Engineer

33. Roles within Construction • Difference can be the role with the Client • The Project Team • Architect / Designer / Specialist • Project Manager (client based) • Quantity Surveyor / Commercial Manager / Cost Consultant • Site Manager / Project Manager • Other roles • Developer • Contractor / subcontractor • Suppliers

34. Project Stakeholders

35. Stakeholders • Primary and secondary stakeholders • Position is determined by proximity and relationship to core activities • Primary are key – direct and economic impact • Owners • Suppliers • Competitors • Employees • Customers

36. Secondary stakeholders are: • Government • Local Authority • Local communities • Political groups • Consumer groups, etc • Within construction, the governmenthas a huge part to play, namely • Policies • Legislation It is normally considered primary

37. Other key players: Statutory authorities planning building control health and safety executive environmental health fire authority highways Interested parties building occupiers and tenants neighbours community groups police

38. STAKEHOLDERS AND THEIR EXPECTATIONS Compensation Security Job Satisfaction Compensation Prestige Power Fair Employment No Discrimination Taxes Employment Employees Managers Minority Groups Governments Employment Preservation of Environment FIRM Community Regular Payments Continuity of Business Suppliers Creditors Customers Shareholders Interest Security of Capital Product Quality Service Value Dividends Capital Growth Safe Investment

39. Summary • Construction and property sectors involves a wide variety of different types of Firms/Companies types. • Different firms have different organisational structures. • For successful firms to operate, the proper organisational structure should be in place from the very early stages of establishing the company

40. Summary Assignment : • Identify key factors that can influence how organisations operate in the business environment and explain how these factors may differ with different company structures