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Abs ac — Hunga y was eached by he g ea dep ession in
2008. The 5-yea c isis has no le he building.
Keywo ds— co po a e managemen , Ope a ions
managemen , S a egic managemen , P ojec managemen
I. INTRODUCTION
UNGARY was eached by he g ea dep ession in
2008 and he impac o his is pe cep ible in 2009.
The e ec s o he g ea dep ession a e s ill going on
oday. The 5-yea c isis has no le he building indus y
un ouched, he cons uc ion companies ha e los ed daily.
Based on he 2012 da a om he Cen al S a is ics O ice
(CSO) he p opo ion o he cons uc ion companies
discon inued is mo e han 50 % o 2013 and he numbe
o company ounda ions also declined in he cons uc ion
indus y. The cons uc ion equency was educed
because o he economic c isis, ha ’s why numbe o he
companies decla ed bank up because o he d as ic all
o new o de s.
The e o e, he objec i e ou s udy is o in oduce
e ec s o he g ea dep ession in he building indus y –
especially he small and medium-sized en e p ises – in
Hunga y
Fu he mo e, ou s udy aims o in oduce he posi ion
o he building indus y, o o m an objec i e iew o his
c isis si ua ion a ec ing he cons uc ion companies and
o p esen hose solu ions which can educe he e ec s o
he economic c isis.
We a e examining ha which ools and me hods cab
help o keep up wi h he compe i o s o a small and
medium-sized en e p ise in he c isis.
II. BUSINESS OPPORTUNITIES IN THE ECONOMIC CRISIS
Acco ding o he analys s he c isis was s ongly
in luenced by one o he wo ld's la ges in es men
bank’s (Lehman B o he s) announcemen in he yea
2008, ha he bank wen bank up and hey asked
p o ec ion om bank up because o he c edi o s’
p essu e. This was jus one o he miles ones o he g ea
dep ession. The c isis has mani es ed i sel much ea lie
in he eal economy.
“In ou coun y he cons uc ion sec o was mo e
a ec ed by he c isis in he yea 2008 han he o he
indus ial sec o s.” (O igo, 2009). The global economic
c isis om he Uni ed S a es o Ame ica eached Eu ope
and Hunga y so quickly and u hlessly. Because he e y
signi ican o eign eal es a e de elopmen companies
ha e gone bank up o ha e weakened, hey we e o ced
o liquida e hei suble s ope a ing in Hunga y (pl:
S abag, Colas, Swie elsky). Mo e people los hei jobs
in he cons uc ion sec o dec ease in he numbe o
cons uc ion p ojec s.
As a esul , he cons uc ion indus y has con inued o
de e io a e because he demands o building ma e ials
a e educed. Fo his eason, he manu ac u e o building
ma e ials companies closed down and liquida ed a
numbe o hei ac o y in Hunga y. „The si ua ion in he
cons uc ion sec o shows a coun y's economic si ua ion
e y well and as we can see i ’s no a h i ing indus y in
ou coun y nowadays” (EVOSZ, 2011).
Go e nmen and municipal o de s a e educing
con inuously and he p ojec s which p e iously p o ided
jobs a e disappea ing. Fig. 1 shows he changes o he
o de s in he building sec o .
THE ROLE OF THE CORPORATE
MANAGEMENT IN THE CRISIS
MANAGEMENT IN BUILDING INDUSTRY
Gyula BALOGH1, Timea TAKACS2, And ea MATKO 3
1 Uni e si y o Deb ecen, e-mail in [email protected]
2 Uni e si y o Deb ecen, e-mail in [email protected]
3 Uni e si y o Deb ecen, e-mail [email p o ec ed].hu
H
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Fig. 1. Con ac s in he building sec o acco ding o con ac o s (p ice (million F ) /yea ), (CSO, 2013)
The igu e clea ly shows ha he small and medium-
sized en e p ises in he cons uc ion indus y make he
signi ican pa o he con ac ual in es men s in he
building sec o . Only a small po ion o he in es men s
a e in he hands o he p i a e and non-building sec o .
We can obse e ha wi hin he small and medium-sized
en e p ises he con ac s a dec eased om yea o yea ,
bu did no show a dec ease as high as he non-
cons uc ion indus ial o ganiza ions. The numbe s o
o de s om he non-cons uc ion indus ial o ganiza ions
a e educed almos by hal om 2008 o 2011. The
e ec s o he economic c isis a ec especially he
esiden ial cons uc ion p ojec s and non-cons uc ion
indus y o ganiza ions.
Dec ease in he numbe o cons uc ion p ojec s lo s o
people los hei jobs in he cons uc ion sec o . This
esul ed in a u he de e io a ion o he building indus y
and educing demand o building ma e ials. The eby
engaged in p oduc ion o building ma e ials companies
closed and wound up hei se e al ac o ies in Hunga y.
III. SYSTEM AND DEVICES OF THE CORPORATE
MANAGEMENT
"Managemen is he o ganiza ional p ocess ha
includes s a egic planning, se ing objec i es, managing
esou ces, deploying he human and inancial asse s
needed o achie e objec i es, and measu ing esul s.
Managemen also includes eco ding and s o ing ac s
and in o ma ion o la e use o o o he s wi hin he
o ganiza ion. Managemen unc ions a e no limi ed o
manage s and supe iso s. E e y membe o he
o ganiza ion has some managemen and epo ing
unc ions as pa o hei job." (Hyssom, 2009).
Nowadays, he concep and he oles o business
adminis a ion and business managemen a e mixed
wi hin he cons uc ion sec o . In he case o cons uc ion
small and medium en e p ises a e usually no sepa a ed
he wo concep s because in he majo i y o cases he
same people a e esponsible o he heo e ical and he
p ac ical managemen o he company. The co po a e
leade ’s main ole is de ining he business goals, se ing
he s a egic di ec ions, easoning he decisions and
making decisions on co po a e objec i es. The co po a e
leade ’s esponsible is also commanding s a egic change
o di ec ion in a well-es ablished case and in he in e es
o his appoin ing he equi ed ac ions. The co po a e
managemen is success ul i i is a good example and
mo i a ion o he employees wi h cha isma ic
cha ac e is ic (Va sányi, 2006).
The managemen o he small and medium-sized
en e p ises in he cons uc ion indus y can be di ided
in o h ee basic pa s:
1) Ope a ions managemen : Ope a ions managemen
e e s o he adminis a ion o business p ac ices o
c ea e he highes le el o e iciency possible wi hin an
o ganiza ion. Ope a ions managemen is conce ned wi h
con e ing ma e ials and labou in o goods and se ices
as e icien ly as possible o maximize he p o i o an
o ganiza ion (In es opedia A, 2015).
2) S a egic managemen : S a egic managemen
in ol es se ing objec i es, analyzing he compe i i e
en i onmen , analyzing he in e nal o ganiza ion,
e alua ing s a egies, and making su e ha he s a egies
a e olled ou ac oss he o ganiza ion (In es opedia B,
2015).
3) P ojec managemen : The planning and o ganiza ion
o an o ganiza ion's esou ces in o de o mo e a speci ic
ask, e en o du y owa d comple ion. P ojec
managemen ypically in ol es a one- ime p ojec a he
han an ongoing ac i i y, and esou ces managed include
bo h human and inancial capi al (In es opedia C, 2015).
A cons uc ion in es men is a piece o planned wo ks
o an ac i i y ha is inished o e a pe iod o ime and
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in ended o achie e a pa icula pu pose (Camb idge
Dic iona y, 2015; Gyö gy, 2012).
The co po a e managemen ’s i s challenge is
ul illing he de ined esul s aking in o accoun
p ede ined limi s. The nex challenge is using op imally
he de ices which a e necessa y o achie e p ede ined
objec i es. The applica ion p ojec is an ope a ional
p ocess wi h using easonable esou ces ( ime, money,
human, ma e ials, ene gy, and space). The pu poses o
his a e con olling and managing cons uc ion and
ma e ial p ocu emen in he building indus y. Fig. 2
shows he ypically asks o he building indus y
managemen .
Fig. 2. The ypically asks o he building indus y
managemen
(Based on own da abase)
In small and medium-sized en e p ises in he building
indus y i is necessa y o comple e se e al s a egic
a ge asks concu en ly. I ollows ha usually going
implemen a ion o se e al p ojec s and applica ions
wi hin he examined company side by side o o e laps
wi h each o he o successi ely.
The ask o his company’s managemen is deciding
he p elimina y and inal s age o he p ojec s (manage
and bu sa ). Technical colla wo ke s’ and manual s a ’s
ask is execu ing he in e media e s ages. Fig. 3 shows
he o ganiza ional s uc u e o his company.
In he company he e a e linea esponsibili y and
hie a chical sys em (Fig. 3). The middle managemen ,
which can make decisions and con ol he company, is
missing. Tha ’s why he manage has o be p ac ical,
c ea i e, p ecise and open.
Fo he small and medium-sized en e p ises’ manage s
he mos impo an hings a e coope a ing wi h he
employees. This company’s manage is also a democ a ic
leade who in o ms he colleagues and in ol es hem o
he decisions. He shall seek he opinions o he
i espec i e colleagues and explains he si ua ions o he
non i espec i e colleagues.
Fig. 3. The o ganiza ional s uc u e o he company
(Based on own da abase)
„The democ a ic leade ship s yle is based on mu ual
espec . I is o en combined wi h pa icipa o y
leade ship because i equi es collabo a ion be ween
leade s and he people hey guide. In ol es a eam
guided by a leade whe e all indi iduals a e in ol ed in
he decision-making p ocess o de e mine wha needs o
be done and how i should be done. The g oup's leade
has he au ho i y o make he inal decision o he g oup.”
(Business Dic iona y, 2015; S . Thomas Uni e si y,
2014; Va sányi, 2006).
Fig. 4 shows wo ypes o managemen s yles in a
company.
I a company would like o be success ul in he c isis,
i can ind he middle way be ween he wo ypes. In his
case he managemen can wo k oge he wi h he
employees unde con olled condi ions and limi a ions
( igu e 4). Fo he small and medium-sized en e p ises in
he building indus y he quali y wo k and compliance
wi h ISO is also e y impo an in he c isis. The
co po a e managemen has o keep in mind he quali y in
all ci cums ances in he sa u a ed cons uc ion ma ke .
The numbe o published ende p ojec s is limi ed so
ha ’s why he well-es ablished quali y managemen
sys em has a e y impo an ole in he ma ke
compe i ion. This company a aches g ea impo ance o
main aining and enewing yea by yea he quali y
sys em
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Fig. 4.. Types o managemen s yles
(Va sányi, 2006)
because i go lo s o job because o he KIR-MIR-
MEBIR sys ems.
The exis ence o a quali y managemen sys em can
ou pu small and medium-sized en e p ises in he
cons uc ion om he c isis. The companies which ob ain
he ce i ica ions ha e a g ea e chance o win wo ks
because he quali y managemen sys em is in e na ionally
ecognized. This sys em imp o es he p o essional
s anda d, inc eases cus ome sa is ac ion, pays a en ion
o he aining o employees and uses mo e economically
e icien me hods. And i c ea es a s able deploymen o
well- ained managemen leade ship o small and
medium-sized en e p ises in he building indus y.
IV CORPORATE MANAGEMENT OF CRISIS MANAGEMENT
IN THE CONSTRUCTION INDUSTRY
The company was analysed by us is one o he small
and medium-sized en e p ises in he building indus y.
The economic c isis is a majo challenge o he
company so i pays g ea a en ion mi iga ing he e ec s
o he c isis. The company didn’ inc ease he numbe o
physical and in ellec ual wo ke s. Fu he measu es o
educe he e ec s o he c isis a e he ollowing:
1) mo ed o a common o ice, he eby
2) close coope a ion be ween he p epa a ion and
execu ion, and
3) mo e s uc u ed ope a ion, and
4) o e head educ ion, and
5) managemen ’s daily con ac s wi h a eas.
Fig. 5..Types o managemen s yles II.
(Va sányi, 2006)
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The cons uc ion o small and medium-sized
en e p ises should aim he o ganiza ional cul u e based
on esul s. This can inspi e he people wi h in e nal
mo i a ion and pe sonal commi men . Fu he mo e o
he mo e e icien wo k his company has o keep ou
managemen s yle in he ed zone in Fig. 5 (Szilágyi,
2009).
The e o s manage o he company o m mixed s yle
o leade ship o democ a ic leade ship s yle each can
achie e an incen i e o employees. The employees a e
mo e en husias ic i he managemen ask hei opinion
abou he impo an ques ion a ec ing hei job and hei
company. O he s ong incen i e is when he manage
p aises he aluable con ibu ions and makes public
bene icial e ec s o he common decisions. Wi h his
managemen s yle:
1) he nega i e e ec s o he c isis dec ease
2) wo kplace pe o mance inc eases
3) he quali y o wo k imp o es.
This con inuously con olled managemen p ac ices
will no allow he c isis o gene a e i e e sible e en s
because o he la e esponse. In his managemen s yle i
is necessa y o c ea e he middle managemen nex o he
manage . The middle manage has o be a good
specialis , a good leade and coope a i e wi h he
managemen . Based on hese his company changed i s
o ganiza ional s uc u e as ollows.
Two leading and con olle g oup was o med nex o
he manage and he economic manage (Fig. 6). This
achie e ha he lowe -le el managemen asks we e
c ea e which had been missing ea lie . The blue line
shows he main line o con ol. I can be seen ha he
manage and he economic manage a e con olling all
g oups, bu he communica ion is bidi ec ional. The
middle managemen laye in he ed zone is in close
con ac wi h senio managemen and he p epa a o y
g oup. As he company can’ employ mo e people he
middle manage s a e o me employees because o he
eo ganiza ion. In he g een zone he e a e he
p epa a o y g oups. These g oups’ ask is aking a
con ac wi h he con ac o s, he chie mechanics, he
manual wo ke s and he subcon ac o s.
Fig. 6. The company’s changed o ganiza ional s uc u e
(Based on own da abase)
The middle managemen has o know he human
esou ce needs o p ojec s ha in case hey need o be
able o in e ene. This a oids la e paymen and
unnecessa y

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ex a wo k paid which is a e y signi ican economic
sa ings o a cons uc ion small and medium-sized
en e p ises. The company leade ’s asks a e he
ollowing:
1) moni o ing all exis ing and new applica ions
2) p o iding con ac ed wo k o he company
3) moni o ing o p ice compe i ion in he
cons uc ion ma ke o small and medium-sized
en e p ises
4) pe cep ioning he success o ende s
5) con olling eam wo k.
The con olle p o ides suppo i e economic se ices
o he managemen o he dedica ed planning and
managemen . He is coo dina ing he sub- a ge s and sub-
plans, o ganizing a u u e-o ien ed epo ing sys em,
discussing he di e ences wi h esponsible leade s and
discussing he possible app op ia e measu es.
In addi ion nex o he ans o ma ion o he
o ganiza ional s uc u e i is necessa y o ans o ma ion
he quali y assu ance sys em (KIR, MIR, MEBIR). Based
on he expe ience he company should implemen he
TQM (To al Quali y Managemen ) sys em.
The concep o TQM: “The con inuous p ocess o
educing o elimina ing e o s in manu ac u ing,
s eamlining supply chain managemen , imp o ing he
cus ome expe ience and ensu ing ha employees a e up-
o-speed wi h hei aining. To al quali y managemen
aims o hold all pa ies in ol ed in he p oduc ion
p ocess as accoun able o he o e all quali y o he inal
p oduc o se ice.” (In es opedia D, 2015). Agains he
KIR, MIR, MEBIR he e a e no limi a ions, obliga o y
s anda ds poin s and ce i ica ion p ocedu e, bu he e a e
sel -assessmen ca ied ou by he company (IdeSol,
2012).
Fig. 7 shows he majo p inciples o To al Quali y
Managemen .
Fig. 7. TQM
(Va ga, 2005)
The 5 pilla s o TQM show ha he company equi es
he es ablishmen o his sys embased on p og essi e
changes:
1) c ea ing a sui able a mosphe e
2) use ocusing
3) managemen based on ac s and igu es
4) con inuous quali y imp o emen
5) in ol emen employees (Va ga, 2005).
Nex o he cons uc ion o TQM sys em I would
ecommend o he cons uc ion o small and medium-
sized en e p ises using Gan -diag ams and lowcha s in
he Mic oso O ice P ojec p og am as shown in Fig. 8.
„A Gan cha is a isual ep esen a ion o a p ojec
schedule. A ype o ba cha , a Gan cha s show he
s a and inish da es o he di e en equi ed elemen s o
a p ojec . Hen y Lau ence Gan , an Ame ican
mechanical enginee , is ecognized o de eloping he
Gan cha . Gan cha s a e use ul in planning how long
a p ojec should ake and helping o sequence he e en s
by laying hem ou in he o de in which he asks need o
be comple ed. Typically, asks a e shown on he e ical
axis, and he p ojec ime span is ep esen ed on he
ho izon al axis. Each ask has a co esponding ba ha
shows he ime span equi ed o ha ask. The ba can
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be illed in o show he pe cen age o he ask ha has
been comple ed. Gan cha s also indica e dependencies,
hose asks ha a e dependen upon o he asks. Today
he e a e many so wa e applica ions a ailable o
c ea ing
Gan cha s, as well as unc ions in popula p og ams
such a Mic oso Excel.” (In es opedia E, 2015).
Fig. 8. Mic oso O ice P ojec p og am
(Based on own da abase)
IV. CONCLUSION
Acco ding o he CSO da a, he cons uc ion sec o is
he mos a ec ed by he c isis. Tha ’s why we examined
his sec o in ou s udy. We examined a company’s
ac i i y om 2009 o 2012 o choose hose a eas o
g oups which need o be imp o ed.
Ou i s conclusion was changes can be made in
se e al a eas wi hin he ope a ion o he company. I
conside he de elopmen o a quali y managemen
sys em om KIR, MIR, MEBIR o TQM. Nex o he
cons uc ion o TQM sys em using Gan -diag ams and
lowcha s in he Mic oso O ice P ojec p og am is
also e y impo an o each success. I is necessa y o
c ea e he middle managemen nex o he manage who
has o be a good specialis , a good leade and coope a i e
wi h he managemen .
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