Helious - Pre-Master - Full
Helious - Pre-Master - Full
Helious - Pre-Master - Full
Hanoi, 2017
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Course Contents
• Introduction to Management
• Introduction to Managerial Economics
• Introduction to Project Management
• Roles of Construction Project Stakeholders
• Construction Project Management in
Vietnam
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References
Robbins, S. and M. Coulter (2012), Corporate
Management, 11th edition, Prentice Hall
PMI (2013), Project Management Body of
Knowledges (PMBOK), 5th edition
The National Assembly (2014), The Construction
Law, No 50/2014/QH13
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1. INTRODUCTION TO
MANAGEMENT
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LEARNING OBJECTIVES
• You should be able to:
• Define organization
• Distinguish between organisation and group of
people
• Describe what an organization is and how the
concept of an organization has changed
• Define management
• Distinguish between efficiency and
effectiveness
• Describe the basic management functions and
the management process
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LEARNING OBJECTIVES (continued)
• You should be able to:
• Describe the skills managers need
• Explain what managers do using the systems
perspective
• Identify what managers do using the
contingency perspective
• Explain the value of studying management
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1. Introduction to Management
- Organization
• A deliberate arrangement of people to
accomplish some specific purposes.
• Name the organizations that you belong
to.
• Work in group:
• Differentiate between group of people and
organization
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1. Introduction to Management
- Organization Structures
• Organizational structure is the formal
arrangement of jobs within an
organization
• Work in group:
• List out positions in the organization that
you work for.
• Which position is the most important, why?
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Organization Common Characteristics
Characteristics of organizations
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Transformation process in organisations
• Individual Work:
• What are your organization’s
goods/services?
• What are the inputs for your organization?
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THE ORGANIZATION AS AN OPEN SYSTEM
Environment
System
Inputs Transformation Outputs
Raw materials Employee’s work Products and services
Human resources activities Financial results
Capital Management Information
Technology activities Human results
Information Technology and
operations methods
Feedback
Environment 1-11
Transformation process
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Transformation process
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THE CHANGING ORGANIZATION
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1. Introduction to Management
- What is management?
• Management is a set of activities directed
at an organization's resources with the
aim of achieving organizational goals in
an efficient and effective manner.
• Management is the process of achieving
goals and objectives effectively and
efficiently through and with the people.
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1. Introduction to Management
- Managers
• Someone who coordinates and oversees
the work of other people so that
organizational goals can be accomplished
• Work in group:
• Who are your direct managers and what
does she/he do in your organization?
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WHO ARE MANAGERS? (continued)
• Managerial Titles
• First-line managers - manage the work of non-
managerial individuals who are directly involved with
the production or creation of the organization’s
products
• Middle managers - all managers between the first-
line level and the top level of the organization who
manage first line managers
• Top managers - responsible for making
organization-wide decisions and establishing the
plans and goals that affect the entire organization
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Levels of management
Top
Management
President, CEO,
Executive
Vice Presidents
Middle Management
Plant Managers, Division Managers,
Department Managers
First-Line Management
Foreman, Supervisors, Office Managers
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EFFICIENCY AND EFFECTIVENESS IN
MANAGEMENT
Efficiency (Means) Effectiveness (Ends)
Resource Goal
Usage Attainment
Low Waste High Attainment
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1. Introduction to Management
- Management Functions
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WHAT DO MANAGERS DO?
• Management Skills
• Technical - knowledge of and proficiency in a
certain specialized field
• Human - ability to work well with other people both
individually and in a group
• Conceptual - ability to think and to conceptualize
about abstract and complex situations
see the organization as a whole
understand the relationships among subunits
visualize how the organization fits into its broader
environment
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SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS
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2. Introduction to Managerial Economics
- Concepts
• Economics is
• The science of making decisions in the
presence of scare resources.
• Social science, which studies human
behaviour in relation to optimizing allocation
of available resources to achieve the given
goals.
• Managerial Economics
• The study of how to direct scarce resources
in the way that most efficiently achieves a
managerial goal. 1-26
2. Introduction to Managerial Economics
- Goals and Constraints
• Sound decision making involves having
well-defined goals.
• Leads to making the “right” decisions.
• In striking to achieve a goal, we often face
constraints.
• Constraints are an artifact of scarcity.
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2. Introduction to Managerial Economics
- Profits
• Accounting Profits
• Total revenue (sales) minus monetary cost of
producing goods or services.
• Reported on the firm’s income statement.
• Economic Profits
• Total revenue minus total opportunity cost.
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2. Introduction to Managerial Economics
- Costs
• Accounting Costs
• The explicit costs of the resources needed to
produce goods or services.
• Reported on the firm’s income statement.
• Opportunity Cost
• The cost of the explicit and implicit
resources that are foregone when a decision
is made.
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2. Introduction to Managerial Economics
- The Time Value of Money
• Present value (PV) of a future value (FV)
lumpsum amount to be received at the
end of “n” periods in the future when the
per-period interest rate is “i”:
PV = FV/ (1+i)^ n
• $1 today is worth more than $1
tomorrow
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2. Introduction to Managerial Economics
- The Time Value of Money
• Example:
• Lotto winner choosing between a single
lump-sum payout of $104 million or $198
million over 25 years.
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2. Introduction to Managerial Economics
- The Time Value of Money
• The present value (PV) reflects the
difference between the future value and
the opportunity cost of waiting (OCW).
• Succinctly,
PV = FV – OCW
• If i = 0, note PV = FV.
• As i increases, the higher is the OCW and
the lower the PV.
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2. Introduction to Managerial Economics
- Net Present Value
• Suppose a manager can purchase a stream
of future receipts (FVt ) by spending “C0”
dollars today. The NPV of such a decision is
Decision Rule:
• If NPV < 0: Reject project
• NPV > 0: Accept project
Could you explain?
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Example
• You will be receiving 100 next year, 200 in
2 years and 50 in 3 years
• What is the present value of this income
stream if the interest rate is 10%?
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2. Introduction to Managerial Economics
- Demand and Supply
• Market Demand Curve
• Shows the amount of a good that will be
purchased at alternative prices, holding
other factors constant.
• Law of Demand
• The demand curve is downward sloping.
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2. Introduction to Managerial Economics
- Demand and Supply
Work in Group:
• What can be determinants of demand?
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2. Introduction to Managerial Economics
- Demand and Supply
The five determinants of demand are:
1. The price of the good or service.
2. Prices of related goods or services. These are
either complementary (purchased along with)
or substitutes (purchased instead of).
3. Income of buyers.
4. Tastes or preferences of consumers.
5. Expectations. These are usually about
whether the price will go up.
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2. Introduction to Managerial Economics
- Demand and Supply
• Market Supply Curve
• Shows the amount of a good that will be
purchased at alternative prices, holding
other factors constant.
• Law of Supply
• The supply curve is upward sloping.
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2. Introduction to Managerial Economics
- Demand and Supply
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2. Introduction to Managerial Economics
- Demand and Supply
Work in Group:
• What can be Supply Shifters?
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2. Introduction to Managerial Economics
- Demand and Supply
• Market Equilibrium
Can you explain the pictures below?
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3. INTRODUCTION TO
PROJECT MANAGEMENT
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3. Introduction to Project Management
- What is Project?
• A set of interrelated tasks to be executed
over a fixed period and within certain
cost and other limitations (Wikipedia).
• A temporary endeavor undertaken to
create a unique product, service, or
result.
• The temporary nature of projects
indicates that a project has a definite
beginning and end. (PMBOK)
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3. Introduction to Project Management
- Project Processes
• are performed by the project team with
stakeholder interaction and generally fall
into one of two major categories:
• Project management processes
• Product-oriented processes
• Work in pair:
• List out the project management processes
and produc-oriented processes that you
have involved in your job.
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3. Introduction to Project Management
- Project Management Knowledge Areas
• Project Integration Management
• Project Scope Management
• Project Time Management
• Project Cost Management
• Project Quality Management
• Project Human Resource Management
• Project Communications Management
• Project Risk Management
• Project Procurement Management
• Project Stakeholder Management 1-46
3. Introduction to Project Management
- Project Management Knowledge Areas
Additional Areas for Construction Projects:
• Project Safety Management
• Project Environment Management
• Project Financial Management
• Project Claim Management
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4. ROLES OF CONSTRUCTION
PROJECT STAKEHOLDERS
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4. Roles of Const. Project Stakeholders
- Concepts
Stakeholders:
• is an individual, group, or organization
who may affect, be affected by, or
perceive itself to be affected by a
decision, activity, or outcome of a project.
Stakeholders may be actively involved in
the project or have interests that may be
positively or negatively affected by the
performance or completion of the
project.
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4. Roles of Const. Project Stakeholders
- List of project stakeholders
Make your list:
1. A
2. B
3. C
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5. CONSTRUCTION PROJECT
MANAGEMENT IN VIETNAM
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5. Construction Project Management in
Vietnam
• scope and plan of tasks;
• work volume;
• construction quality;
• implementation schedule;
• construction investment costs;
• safety in construction;
• environmental protection in construction;
• selection of contractors and construction
contracts;
• risk management;
• management of the work information system
• and other necessary contents 1-52