Estate Management - What You Need To Know What is…
Functions of Estate Management – Duties of An Estate Surveyor / Manager
At the mention of the term ‘‘Estate Management’’, what readily comes to mind is that Estate Management refers to the general supervision of an estate or property. However, the functions of the management are broader in scope and include the following:
Property Development and Project Management
Property Rating & Taxation
Compulsory Acquisition & compensation
Feasibility and viability Appraisal
These functions that can be referred to as occupational functions of Estate Management from the Scope of Services rendered in the practice of the profession of Estate Management. It is pertinent to note here that the person charged with the responsibility of ‘directing’ and supervising’ of interests in landed property/estate and the carrying out the practice of an Estate Surveyor. This term covers a broader scope of other appellations used to refer to a person engaged in the practice of Estate Management. These includes;
a) Estate Valuer- where the person performs valuation functions
b) Project Manager – where he performs development and project management functions
c) Estate /Agency- where he performs agency functions
d) Estate/Property Management- where he performs property management functions
e) Other Appellations include Auctioneer, Valuation officer, Estate consultant ,Land Economist,Arbitrator e.t.c
The basic function and expertise of an Estate Surveyor is in the act of valuation. This is the process of assessing what a particular interest in property worth at a particular time. Valuation can be defined as the determination of the monetary worth or value at a specified date and for a specific purpose of the property right encompassed in an ownership. However, a more detailed definition based on the foregoing has evolved. Therefore we can simply define valuation as an art or science of determining for a specific purpose at some specific date the monetary worth of property interest or right encompassed in an ownership and by one authorized to do so. Valuation functions seek to provide answer to the following question;
How much loan can I obtain from the bank using this property/ asset as collateral i.e. mortgage valuation.
How much should this property/ asset be purchased if sold? I.e. open market valuation.
What should I charge or pay for the use of this property? That is, rental valuation.
What is fair claim for property that is compulsorily acquired by a government agency? That is, valuation for compensation.
How much this property should be insured? That is, insurance valuation.
What is this property be insured? That is, investment valuation.
What is the value of my real estate in my current business operations? That is rating, valuation and property taxation.
What is my tax liability for capital gains probate or property taxes? That is, rating, valuation and property taxation.
How much should these plant or machinery be purchased if sold? That is plant and machinery valuation.
The valuation services of the registered surveyor in a general practice from are available to all property owners, investors and developers large and small including large retail shop groups, industrial concerns, property companies, financial institution and private individuals.
PROPERTY DEVELOPMENT AND PROJECT MANAGEMENT
The estate surveyor constitutes an integral part of a development team. His primary role in any development project is basically to acts as a project manager. This function includes;
Identification and Preliminary evaluation of opportunity for development.
The preliminary financial analysis
Assistance with preparation of architect’s brief and evaluation of design proposals.
Feasibility and viability studies
Packaging the development proposal to obtain development financing
Project (construction) management – coordination of consultants involved in real estate development.
ESTATE AGENCY FUNCTIONS
The agency functions of a surveyor can be divided into three aspects, viz;
LEASE: Under a lease arrangement, the functions of the surveyor include;
Sourcing and Selection of Tenants: – In order to ensure good property management it is important to select good tenants. The methods of sourcing for prospective tenants are;
World Wide Web.
Handbills and bulletin.
The criteria considered in selection of tenants are:
Financial ability and security
Agreement between the landlord and the tenant
Suitable for use
Negotiation Lease Terms: These terms include rent to be paid, length of the lease and tenants covenants and liabilities.
PURCHASE: The function of the surveyor will cover;
Sourcing of property in consonance with client’s/ purchaser’s requirements.
Negotiation of terms and closing of the transaction.
Processing the transfer of ownership
SALE: The functions of the surveyor covers:
Exposure of the property for sale of the open market.
Receiving offers and negotiation of price
Recommendation of appropriate price for the property.
In order for the above functions to be properly carried out, the surveyor must have a sound knowledge of the property market.
CONCEPT OF ESTATE AGENCY
Estate Agency can be said to be one of the many functions of the Estate surveyors and valuers. Estate agency is the act of liaising between two parties to bring about the transfer of an interest in landed property either by outright assignment or the creation of an interest in the form of a lease or term of years.
ROUTINE MANAGEMENT FUNCTIONS:
These functions are concerned with matters, which have to be attended to form time to time to ensure smooth running of an estate. This can also be referred to as the traditional functions of estate management. The stages in the process are steps that must be carried out as so as to perform the following traditional functions.
(i) Rent Collection: It is the duty of the property manager to ensure that rents are paid in the manner stipulated as at when due. To this end he ensures that notices for payment of rent are sent to all tenants before the rent fail due in order to avoid rental default and in the event of default he must take appropriate steps to remedy the situation.
(ii) Preparation and Interpretation of Leases: The estate manager is responsible for advising solicitors on the terms of leases that is needed for meeting the objective of the owners. The estate manager must be knowledgeable in Laws relating to landlords and tenants relations to be able to interpret leases. Nevertheless, the solicitors rely upon the professional counsel of the estate managers in the following matters:
(i) Description of the properties
(ii) Length of the lease term
(iii) The rent payable
(Iv) Provisions and restrictions for subletting
(v) Responsibility for services repair and insurance
(vi) Payment of services charges
(vii) Covenants between landlord and tenant
(iii) Tenant selection: A good tenant selection will lead to good property management thus making selection of tenant very important in estate management. The means of reaching out to prospective tenant are:
(i) Advertisement in newspapers
(iii) Information technology such as the internet
(iv) Handbills and bulletins
The criteria considered in selection of tenants are:
Financial ability and security
Agreement between the Landlord and the tenant
Suitability of use
(iv)Periodic Inspection: The property manager undertakes periodic inspections of the property in order to assess the condition of the property. The aim of this periodic inspection is to enable the manager ascertain the nature and extent of repair works to be carried out (if any) and the level of compliance of tenants’ covenant and to stop any breach of such covenants.
(v)Entertaining tenants’ complaints: Entertaining tenants complaints and acting on behalf of the property owner to take immediate action on such complaints.
(vi) Action under Leases: This is the enforcement of all covenants contained in the lease agreement i.e. Landlord and Tenants covenant. To ensure compliance, frequent inspection of the property is necessary. An estate manager should as well give adequate notice for rent payment, renewal and meeting notices. An estate manager should avoid delay in enforcing breech of covenant as it can lead to problems in management.
(vii) Record Keeping: The property manager ensures that records of all transactions con concerning a property are well kept reports of such records are rendered to the property are well kept and that reports of such records are rendered to the property owner from time to time.Such records will include information about tenants, their leases, as well as service charge account.
(viii) Settlement of Rates and Taxes: It is the function of the property manager to ensure that all rates and taxes levied on the property are remitted to the appropriate authorities as at due.
(ix) Insurance: The property manager will ensure that adequate insurance coverage is taken out on the property. He also ensures the regular payment of insurance premiums on the insured property. When properties are not adequately insured, they may soon be out of existence because certain mishaps can affect them. The best basis of insurance cover should always be reinstatement i.e. when total cost is suffered, the property will be put back into its former position as soon as possible. The property manager must ensure regular payment of premiums on the insured properties. It is not good to let one’s client’s properties be under insured and it will be very foolish to over insure clients’ properties.
PROPERTY MAINTENANCE FUNCTIONS
Property maintenance functions are aimed at preserving buildings with their services, fitting and appearances in their original state so that they continue to provide effective amenities and facilities thereby securing optimum returns for the property owner. Generally, maintenance functions include repainting, reduction refurbishment, repairs, cleaning and services. These are the important functions of estate management since it is good maintenance that can ensure that properties continue to meet their objective. When properties are not properly maintained, they continue to run down and eventually become obsolete. Maintenance of properties gives the properties a good appearances, prevents expensive redecoration and preserves the market value of the properties.
Maintenance can be defined as the work necessary to preserve a building in its original state so that it continues to provide the same services it provided when it was new. Maintenance includes replacement of building components, repair, servicing and clearing. BS3811 defines maintenance as work undertaken in order to keep or restore every facility, that is, every part of a site , building and contents to an acceptable standard. Maintenance could be preventive or corrective.
The following affects maintenance cost of a building.
Nature of site
Quality of workmanship
Quality of material used
British Standard 3811 sub-divided maintenance into:
(a) Planned Maintenance
(b) Unplanned Maintenance
This is further divided into:
(I) Preventive maintenance
(ii) Corrective maintenance
A planned preventive maintenance is work directed to the prevention of failure of facilities, carried out within the expected life of the facility to ensure its continued operation. Planned preventive maintenance can also be broken into running and shutdown maintenance.
Running maintenance involves a situation where work can only be done when the facility is in service, while shut down maintenance work can only be carried out when the facility is or taken out of service.
A planned corrective maintenance is work performed to restore a facility to operation or to an acceptable standard.
This is work resulting from unforeseen breakdown or damage due to external forces or causes. Furthermore, maintenance work has also been categorized as “Predictable” and “Avoidable”.
Predictable maintenance being regular periodic work that may be necessary to return the performance characteristic of a product as well as that required for replacing or repairing the product after it has achieved a useful life span.
Avoidable maintenance work on the other hand is work required to rectify failures caused by incorrect, and the installation or the use of faulty materials.
Concept of Management
Managing is one of the most imperative human activities; from time human beings formed social organizations to achieve aims and objectives they could not accomplish as individuals’ therefore managing has been essential to ensure the coordination of individual efforts. As society continuously replying on group effort, and as many organized groups have become large,the tasks of the managers has been increasing in importance and complexity. Consequently, Managerial Theory has become crucial in the way manage complex organizations.
Managers who blend management theory in their every day practice, have had better chances of managing their organizations more completely, efficiently and effectively to achieve both individual and organizational goals and objectives.
Therefore, Managers of contemporary Organizations ought to appreciate the important role Management theories play in respective Organizations if they are to achieve the sets contemporary theories of management tend to account for and help interpret the rapidly changing nature of the today’s organizational environments goal.
Management has had several definitions from various literature.
According to Stoner et al (1996) “Management is the process of planning, organizing, leading and controlling the work of organizational members and using all available organizations to reach stated organizational goals”.
Mosley, Pietri and Megginson (1996)defined Management as “process of Planning, organizing, leading and controlling the activities of employees in combination with other resources to achieve organizational objectives.
Ejiofor (1991)defines Management as the art of working, particularly through, for the achievement of the broad goals of an organization. In trying to achieve this goal s, the manager has to map out and keep remapping his strategy. He must find the people, the material to do the job, get them to do the job assign them to different people to different jobs, ensure that the jobs are being done as planned, and report the outcome of his effort to his own boss.
Nwachukwu (1998) defines it as getting things done through other. He also sees Management as the supervision,controlling and coordination of activities to attain optimum results with organizational resources.
Rue and Byar (1995) defines Management as a form of work that involves coordinating an organization’s resources Land, Labour and Capital towards accomplishing organizational objectives.
Mary parker follet also gave a simple definition to Management: It could be regarded as the art of getting things done through people.
Theory can be defined as a set of interrelated statements about reality, usually involving one or more cause –effect relationship. It can be described as a coherent group of assumptions put forth to explain the relationship between two or more observed facts. It should be distinguished from hypothesis, as hypothesis refers to a proposition that is yet to be tested for its validity. Hypothesis is a link between theory and facts.
Theory has the following three (3) features:
There is empirical reference, i.e. the facts are immediately available.
The statement of the Theory admits of Rejection or Acceptance.
There is some connection or possible connection with other theories of a similar nature.
Management theory is a way of classifying significant and pertinent Management knowledge. It contains a number of principles, which are interrelated and have predictive value for the manager. When concepts are formed they are tested as hypotheses under the scientific method and this given principles are fundamental truths explaining the relationship between two or more variables or phenomenon. Principles describe how one variable relates to another and what will happen when these variables interact, but they do not state what people will do.
Role of management Theory
The Role of Management Theory includes:
Classification and analysis of facts to establish relationship
Determination of facts from observation.
Generalization to form a particular or specific image. These mental images are called concepts
Testing of generalizations or hypotheses for accuracy. If true it reflects reality, that is, principle in Management is called fundamental truths at any given time.
The explanation of relationships between two or more sets of variables dependent and independent variables.
The Classical Management Approach
The Classical School believes in carrot and stick, hence they preached effectiveness and efficiency. The Classical Management Approach is grouped into Bureaucracy, Scientific Management Approach and Administrative management.
Bureaucracy has three contradictory meanings.
Firstly, it refers to a Red-tape bound body of civic servant, inefficient, negative, bored, impolite and unhelpful to citizens seeking services.
Secondly, it conjures up visions of a body of all too efficient exercisers and often abusers, of arbitrary power deciding matters without due process.
Finally, it also has a natural or favorable meaning it refers to the formal, rational organization of relations among persons vested with administrative authority and the staffing of administration with qualified, full time, salaried civil servants.
We can therefore conclude the Bureaucracy refers to the organizational characteristics of specialization, hierarchy, system of rules and impersonality.
Max Weber’s Ideal Bureaucracy
German sociologist Max Weber (1864-1920) who is known as the father of Modern sociology.
According to Max Weber Bureaucracy is characterized by the belief in the rules and legal order. The position of the bureaucrat, his relationship with the ruler, the ruled and his colleagues, are strictly defined
By impersonal rules, as against the personal rules of charismatic and a traditional leader. Their rules demarcate, in a rational way, the hierarchy of the apparatus, the rights and duties of every position, the methods of recruitment and promotion.
Characteristics of Max Weber’s ideal Bureaucracy
Labour is divided into offices or spheres of competence and responsibility is defined by law and administrative regulations.
Each office or position is supposed to be the sole or primary occupation of the incumbent.
Although the incumbent will usually enjoy tenure, he cannot personally own the office or position, or even the means of production and administration.
The official’s appointment and job replacement are based upon his technical qualifications and presumably, special training. (Principle of man-to-cracy).
The official’s acceptance of appointment is based on a free contractual relationship.
There is hierarchal separation between subordinate and subordinate officers.
The hierarchical structure provides for:
A supervision of lower officers by highest ones;
A stable and careful delimited distribution of authority
Varying degrees of social esteem
Fixed salaries paid in money and granted in accordance with responsibility as well as social status;
Promotions and career advancements on the basis of both seniority and achievement;
Appeal and grievances machinery the ombudsman (Public Complaints commission)
A pure Bureaucracy operates in accordance with general rules and regulations although:
Office holders may be free from such rules in their personal affairs and there is a systematic control over their official actions;
The dominant norms are concepts of straight forward duties without regard to personal considerations.
Every act of personal discretion, even those which are aimed at preserving or enhancing the official’s power, must be justified by impersonal ends.
Max Weber identified another type of Bureaucracy which he called patrimonial Bureaucracy. According to him this differed from the rational type of bureaucracy because it depended upon unfree officials rather than contractually appointed men. He found examples in ancient Egypt, the later Roman Empire and in Byzantine Empire. He considered rational Bureaucracy as a major element in the rationalization of the modern world, for him it was the most important of all social processes. He formulated eight propositions on structuring of legal authority systems, thus:
Official tasks are organized on a continuous, regulated basis.
These tasks are divided into functionally distinct spheres each furnished with the requisite authority and sanctions.
Offices are arranged hierarchically, the rights of control and complaints between them being specified.
The rules according to which work is conducted may be either technical or legal. In both cases, trained men are necessary.
The resources of the organization are quite distinct from those of the members as private individuals.
The office holder cannot appropriate his office.
Administration is based on written documents and this tends to make the office the hub of modern organizations.
Legal authority systems can take many forms, but seen at their purest in a bureaucratic administrative staff.
Robert Merton’s Idea of Bureaucracy
One of the well known essays questioning the idea of rational bureaucracy is an article by Robert Merton, “Bureaucratic Structure and Personality”. Merton argues that emphasis on precision and reliability in administration may well have self-defeating consequences. For instance, rules designed as means to ends may well become ends themselves. Where officials are supposed to serve the public the norms of impersonality, which govern their behavior may cause conflict with individual citizens. What he is stressing is that structure that is rational in Max Weber’s sense can easily generate consequences which are expected and detrimental to the attainment of organization’s objectives. The official ha s characteristics as a social being beyond those which administrative code specified and like other men he has interests, prejudices and fears.
The Scientific Management Theory
Frederick Winslow Taylor (1856-1916) did most to develop the scientific management theory. He was a mechanical engineer who held significant position in the steel and metal -working industries in America. What good management really means according to Taylor is the good management’s produces profit for the owners of the enterprise and at the same time employees enjoy exceptional opportunities for personal welfare and the public secures some degree of services.
Taylor suggested that gains where possible because “the possibility of coupling high wages with low labour cost rests mainly upon the enormous difference between the amount of work a first class man can do under favorable conditions and the work actually done by the average man”.
Taylor used the opportunity as an engineer to carry out his leadership role and rationality in the solution of managerial problems. He wanted to reduce the rule of thumb and personality factors in decision making. He advocated Management system and standards.
He made major contributions and could be said to have developed the Motion and time Study, Specialization, standardization Planning Techniques, Slide rule and other work saving instruments such as Work instruction, Work standard, Piece Rates, Wage Systems production and Implement Classification Systems, Routing and Modern Cost systems.
Scientific management advocates of work specialization had little to say about leadership per se. Leadership under Taylors formulation was a matter of applying science while motivation was a question of offering a financial return corresponding with the effort expended towards the class designed by managers. Taylor’s book the Principles of Scientific Management was published in 1911.
Objectives of scientific management
To secure the maximum output for the employer instead of restricted output.
To reduce the cost of labor and secure large profits for the employers as well as develop all aspect of the business to a state of permanent maximum prosperity.
To increase the wages of the workers and thus secure maximum prosperity for each employee.
To remove all forms of antagonism between management and workers and replaces this with co-operation.
To replace management by rule of thumb and randomness with management system and standards.
To find way of developing the ability to each worker to perform as best as he could thereby achieving the greatest efficiency and prosperity.
Taylor’s philosophy of management was based on four basic principles which constitute the cardinal responsibilities of management. They include:
Development of True science: The has to do with the systematic observation, study and recording of work processes and skills required to do a job as to discover the best or most efficient method of performing the work instead of the Old Rule of Thumb.
Scientific Selection Workmen: workers must be employed on kind of work for which they are best thus enabling them to attain their optimum potential, rather than letting them choose their work habits and procedures.
Scientific Education and Development: workers progressive education, training and ability to accomplish his task as expected of him.
Loss in Case of Failure: Fredrick Taylor suggested that no one should fail in his task: where anybody does, such a failing worker must pay for it. This means that the worker should bear the loss in pay.
Fredrick Taylor had disciples like Henry Gantt, Frank and Lillian Gilbert who here to expend and popularize the scientific management.
Henry L. Gantt (The Gantt chart)
Henry L. Gantt (1861- 1919) worked with Fredrick Taylor in implementing his methods at the steel companies for many years, then Gantt became a consulting engineer making available his version of scientific Management to client companies. Gantt believing that the piece rate system developed by Taylor was not having the desired level of impact. Gantt focused his attention on techniques that would further motivate workers. His contributions are as follows;
A modification of the piece rate system, through a task and bonus wages system whereby production goals were established for the worker.
Development of the Gantt chart: a technique to show on a graph the scheduling of work to be done and itemization of the work that has been completed.
Gantt believe that production efficiency was the most important concern of a manager
The development of the task and bonus system was spawned by his belief that a generous bonus system would lead to more satisfied employees and therefore better output.
He emphasized the scientific selection of workers and harmonious cooperation between labour and management.
He also stressed the need for training
Frank and Lillian Gilberth
Frank Gilbert (1868 – 1924) and Lillian Gilberth(1878 – 1892) where couples interested in scientific management. Frank who after high school became a Brick layer apprentice He began by developing a series of short cut motions for laying Bricks and latter got married to Lilian a pshycologist with Lilian’s knowledge of Management and psychology and Frank’s understanding of the intricacies of work a unique and effective teams was formed. They divided job motion to 17 basic elements which he called Therbligs. The elements include:
Avoidable and unavoidable delays
They were convinced that it was possible to find the one best way of doing things. They devised the motion study. While Frank is noted for hide time and motion studies, Lillian focused on human aspects of work and the understanding of workers personalities and needs. They introduced the flow process chart which enables one to scientifically study a whole operation as opposed to single or one operation.
Henry Fayol(1841-1925) who was known as the father of Modern management was a celebrated French industrialist and theorist he began his working life as a young mining Engineer at the age of nineteen. He spent his entire working life with the company rising to the position of managing director at the age of 47. Under his leadership the company grown and prospered despite its near bankrupt state when he took over.
Fayol prefaces his famous definition of management i.e. to forecast and plan, etc. by stating what he considered to be the key activities of any industrial undertaking. He outlines six (6) such activities.
Fayol suggest that the five (5) above are well known but recognizes at the outset that the sixth group of activities will require further explanation for his readers. Whilst the other activities are all independent to some extent there is no single one with a concerned with broad planning and resourcing ’’ It is vitally necessary to isolate these activities” says Fayol and given the name “Managerial”
To manage by Fayol is to forecast and plan, to organize to control, to coordinate and to command. Fayol does not see managerial activities as exclusively belonging to the management, but as part and parcel of the total activities of an undertaking. In Fayol’s book he list fourteen (14) principle of management which he applied most frequently during his working life. They include
Division of work
Unity of command
Unity of direction
Subordination of individual interests to the general interest
Stability of tenure of personnel
Espirit de Corps
Systems Approach Theory
The systems Theory is based on the following:
In human science the smallest particle of any organism is the cell, which contains the Nucleus and Cytoplasm bounded by a thin film. A collection of Cells will give a Tissue, a collection of Tissues will give an Organ, a collection of Organs will give a system which has following characteristics?
Input conversion – output
It is made up of parts
These parts are interdependent
Whatever affects one part is felt by the other parts
There is equilibrium or balance for the system to perform normally
No part is greater than the whole
There is boundary, and environment which exerts tremendous influence on the systems.
A system can be defined as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. The unique characteristic of the system view point is the interrelationship of parts within the system. Every system is characterized by two diverse force Differentiation and integration.
In a system specialized functions are differentiated, which replace diffuse global patterns, such as in the human body, the heart, kidney and the brain all have distinct functions. In organization the integration is typically achieved through devices such as coordinated levels of hierarchy; direct supervision; as well as rules produces and polices. Every system therefore requires differentiation to identify its sub parts and integration to ensure that the system does not break down into separate elements.
THE MANAGEMENT SCHOOL OF THOUGHT
The behavioral school of thought
The school emerged partly because the classical approach did not achieve sufficient production efficiency and workplace harmony. Managers where frustrated because people did not always fellow predicted or expected patterns of behavior. The behavioral school is a group of management scholars trained in sociology, psychology, and related field who use their diverse knowledge to propose more effective way of managing people in their organization. Maslow Mcgregor, herzeberg and many others stressed the important of social relation in organization, understanding workers and manager’s human beings with social and emotional needs.
The Human Relations movement
George Elton Mayol
George Elton Mayol(December 26, 1880 – September 17 1949) was in Australian psychologist and organization theorist. He is known as the founder of human relationship movement, and is known for research including the Hawthorne Studies, and his book for social problem for an industrialized civilization (1933).
He lecturer at the University of Queensand from 1919 to 1923 before moving to the University of Pennsylvania, but6 spent most of his career at Harvard business school (1926 – 1947), where he was a professor of industrial research. The summary found in Elton Mayol can be viewed as
Work is group activity
A complaint is not necessarily an objective recital of facts; it is commonly symptoms manifesting disturbance of an individual’s status
The social world of the adult is primarily patterned about working activity
Worker is a person whose attitudes and effectiveness are conditioned by social demands from both inside and outside the work plant.
Informal groups within the work pants exercise strong social controls over the worker habits and attitudes to the individual workers
The needs for recognition, securing and sense of belonging are more important and determined a worker’s morals and productivity that the physical conditions under which he work.
The change form an established society in the home to an adaptive society in the work plant, resulting from the use of new techniques tends continually to disrupt the social organization of a worker plant and industry generally.
Group collaboration does not occur accidentally it must be planned and developed.
The management Science School
As a result of the world war 2 many countries faced with survival then created operational research (OR) team made up of mathematicians, physicist and other scientist which leads to technological development of Britain.
The management science school emphasizes upon approaching management problems through the use of mathematical techniques for their modeling, analysis, and solutions.
Management science school emphasizes upon approaching management problems through the use of mathematics techniques for modeling analysis and solution. When there is a problem, mixed team of specialist from the relevant disciplines is called in to propose a course of action to management, the team constructs a mathematical model that shows, in symbolic terms all relevant factors bearing on the problem and how they are interrelated. By changing the values of the variables in the model e.g. increasing the cost of raw materials and analyzing the different equations of the model with a computer, the team can determine the effects of each change, contingency approach
Also known as the situation approach it was developed by managers, consultant and researchers who tried to apply the concepts of previous management approaches to real life situations.
The approach holds that management technique that best contributes to the attainment of organizational goals would vary in various situations. The manager’s task is to identify which technique will, suite a particular situations. Under particular circumstances and at particular time. If workers need to be encouraged t9o increase productivity classical theorist will seek to create a psychologically motivating climate and recommend approaches like job enrichment.
The contingency theory represents an important turn in modern management because it portrays each set of organizational relationship in its unique circumstances,
Basically, contingency theory stresses that when managers make decisions, they must take into account all facts of the present situation and act on those aspects that are key to the situation at hand.
The dynamic engagement approach
Globalization has raised and blurred a lot of issues in management. For example there are boundaries between cultures and nations new communication technology, among others. Today’s business environment is change to emphasize the intensity of modern organization relationship and time pressure that govern these relationships.
Dynamic- the opposite of static, implies continuous change, growth and activity.
Engagement the opposite of detachment implies intense involvement with others.
There are six (6) keys areas of the dynamic engagement approach which include;
Globalization and management
New organizational management
Cultural and multiculturalism