The management in the construction industry

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Foundations of management :

The main topics that are discussed in this are management perspectives, objectives of the organization, external and internal influences in the organization, financial structures of organizations and the organizational structures.

Functions of management :

This topic mainly covers methods on managing the organization which includes marketing, production , finance and personnel.

Human aspects of management :

The following topics coming under this topic are : management behavior, leadership , individual motivation, work groups, industrial relations, and employment law.

Management applied to the construction industry :

This topics discussed under this are :market strategies and policy matters for construction firms, management and financial control of construction projects, production management and construction and future prospects for the management of construction.


The main intention of the book is to provide the readers a complete idea on how the management process is carried out in a construction industry.

Foundations of management:

This gives an overview of the broad applications of management. The purpose of the book is to examine the principal concepts of management and its applications to the construction industry.

It also explains that there is no single perspective which explains the theory and practices of management. It looks down into the financial stability of the organization by looking onto the profitability. Special attention is given to the market position of the organization. including the impact of public policy and finally the legal regulation of the organization was briefed. The internal influences explains whether the manager is capable of pursuing the objectives other than maximizing the profitability. To begin with this the diversity of people in an organization was identified.

It mainly focuses on the financial structure of the organization. For this, the financial structures are related to the financial objectives of the firm. This leads to a better understanding of the firm's financial position. Finally to achieve their objectives, organizations began to structure themselves and further explained it through hierarchies and relationships in organization. This led to the multi- divisional form or M- form of organizational struture.

Functions of management :

This gives a foundation to the practical functions of management. Planning and control concepts are applied to the management functions such as marketing, production, finance and personnel.

Marketing management involves generation of revenue in such a way that profitability is achieved which is the organizations objective. This is defined with a mixture of certain elements such as : product, price, promotion and distribution.

Production management explains the actual wealth required by the customers and the society which is achieved in a cost - effective and profitable way. It can be classified as technological and social. It is usually measured by checking the productivity.

Financial management involves the review of the financial statements and then the examination of financial ratios. Management of the firms finances involves the budgeting process, costing and capital investment appraisal.

Personnel management includes the management functions which supports marketing and production. This personnel function is not equally treated in all the organizations and these functions consists recruitment and selection, evaluating the job, appraisal for the specific performance and training.

Human aspects of management

Emphasized on the human aspects of management. And this is concerned with the managers unlike the previous chapters, which were focused on the management. This is explained by looking onto various topics such as management behavior. This includes an analysis of the manager's job such as examination of the management roles, certain data's to explain how they spend their time, and the talents they require to proceed with the work. The key factor under this is leadership. Various types of leaders are identified and theories of leadership are found which depends on the qualities of the individual leader. It also determines the culture of the organization.

Motivation is one of the accepted topics in management. It can be an individual or a group work. Considering the individual aspect, the nature of the needs of an individual is considered. An individual's motivation is enhanced within an organization. Whereas, taking the group work, if an organization consists of various tasks, groups are often necessary to carry those tasks. These groups are of different types- formal or informal and primary or secondary. It involves certain group behaviors such as development of the group, efficiency of the group and the competition between the groups. This is also concerned with the multi - disciplinary project teams in the construction industry.

Another topic that is explained in this is the industrial relationship between the management and the trade unions. A key issue discussed in this is about the collective bargaining. Another interesting topic in this context is conflicts specially strikes. Legal policy is another aspect that is considered in the employment law. Construction contracts and contract law is useful here. It is mainly governed by contract and tort which are considered as the civil law. There are individual and collective law, where the former is dominated by the contract of employment, whereas the collective law involves the trade unions, collective bargaining and takes industrial actions. It also includes the statute law which has an increased political importance.

Management applied to the construction industry

This explained the market strategies for the construction firms especially the contractors. Certain structural principles are applied to this topic. This also considers the structure of the industry and competition. Quantity and quality of demand and the methods in which they can be delivered or realized are considered. In addition to this short and long term finance are also considered.

Construction firm policies are also generally discussed under this topic and it explains that majority of the firms are market oriented and the chosen organizational structure is in a M- form. Plant management , quality management and health and safety policy are considered under this category. Even though it aims on managing the firms , it affects the management of construction projects.

It also emphasizes on the management of projects. One of the feature that is distinctive from managing the firms is that they take place in a given time span. And hence it gives greater importance to the management of time, then later on move to the management of costs and production.


The book provides an information on managing the construction industry. It explains about  the foundations of management, functions of management, human aspects of management, and management applied to the construction industry. The information obtained from the book is reliable and helps the managers of today's world to efficiently manage the construction industry.  

The details given by author Stephen Lavender provides an overview of the management of construction industry. The information available is supported by a number of other articles and journals. In order to obtain an in depth information about construction industry management, it is better to read through the articles, and journals provided in the further reading section of the book.



The first edition of the book management for the construction industry was published in 12th July 1996. So the book provides an overview of the management perspectives in the 1990's. Over the last few years, many new advancements have been brought about in the management of the industries. The book I have taken for preparing the comprehensive annotated bibliography was published in the 1996. The information available in the book is used by many of the managers and the analysts in the modern world. On the contrary, the book is not updated with the modern techniques utilized in the management and efficient running of the construction industries.


The resource is utilized by many of the managers, analysts and the workers in the construction industry. Most of the industries utilize many of the management perspectives provided in the resource, even though it is not up to date. The book provides the data at an intermediate level. The resource forms the foundation for more advanced studies regarding the professional aspects of management, and also provides a subsequent information of basic disciplines such as technology, economics and law, and the problems associated in the management of the construction industry.