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Spatial- and Settlement Management Electronic Textbook version 3.0

Spatial- and Settlement Management Electronic Textbook version 3.0
Table of Contents

1. Spatial- and Settlement Management Electronic Textbook version 3.0 Error: Reference source not found

1. Preface Error: Reference source not found

1.1. 1. Introduction Error: Reference source not found

1.2. 2. Main contents Error: Reference source not found

1.3. 3. Objectives and requirements Error: Reference source not found

2. 1. Tasks and activities of settlement and spatial management Error: Reference source not found

2.1. 1. Objectives Error: Reference source not found

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2.3. 3. The phrasing of contents Error: Reference source not found

2.3.1. The definition and types of management Error: Reference source not found

2.3.2. The stages of spatial and settlement management Error: Reference source not found

2.3.3. The definition of spatial and settlement management Error: Reference source not found

2.4. 4. Summary Error: Reference source not found

2.5. 5. Self monitoring questions Error: Reference source not found

2.6. 6. Test questions Error: Reference source not found

3. 2. Municipal models Error: Reference source not found

3.1. 1. Objective Error: Reference source not found

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3.3.1. The main features of Europe’s historical regions Error: Reference source not found

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3.3.3. The Mediterranean model Error: Reference source not found

3.3.4. The Scandinavian model Error: Reference source not found

3.3.5. The German model Error: Reference source not found

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4.3.3. The internal administration Error: Reference source not found

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4.3.5. Strategic and operational management Error: Reference source not found

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5.3.3. Management in accordance with the Christianity Error: Reference source not found

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6. 5. The new public management and the private sector Error: Reference source not found

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6.3.1. The decentralised management of public duties Error: Reference source not found

6.3.2. Traditions and changes in public management: techniques from some European countries Error: Reference source not found

6.3.3. Public management in Europe Error: Reference source not found

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7. 6. Public administration, public law relationships, public servants and service Error: Reference source not found

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7.3.1. The relevance of human resources in organizations Error: Reference source not found

7.3.2. Some practical aspects Error: Reference source not found

7.3.3. Personnel management Error: Reference source not found

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7.5. 5. Self monitoring questions Error: Reference source not found

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8. 7. Urban management and the system of factors of the functions of town municipalities, the decentralized management of public functions, co-operative city management? Error: Reference source not found

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8.3.1. Urban management Error: Reference source not found

8.3.2. Co-operative urban management Error: Reference source not found

8.3.3. Integrated urban development in the EU Error: Reference source not found

8.3.4. Co-operative urban management in Hungary Error: Reference source not found

8.4. 4. Summary Error: Reference source not found

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9. 8. The management of rural settlements and municipalities Error: Reference source not found

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9.3.1. Definition of rural and the village Error: Reference source not found

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9.3.3. Rural development and management – some success stories Error: Reference source not found

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10. 9. The special tasks of micro-regional management Error: Reference source not found

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10.3.1. The micro-regional level in Hungary Error: Reference source not found

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10.3.3. Practical experiences Error: Reference source not found

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11. 10. Tourism-destination management – a specific domain Error: Reference source not found

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11.3.1. The main definitions of the destination management Error: Reference source not found

11.3.2. The basics of TDM system Error: Reference source not found

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12. 11. The management of value-added chains and local developments Error: Reference source not found

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12.3.4. Hungarian experiences from the RUBIRES programme Error: Reference source not found

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13. 12. The management of LEADER action groups Error: Reference source not found

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13.3.1. LEADER: a new rural development approach Error: Reference source not found

13.3.2. The LEADER approach in Hungary from the experimental programme (2000-2005) to the new LEADER (2007-2013) Error: Reference source not found

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13.3.4. Experiences from the Hungarian LEADER programme Error: Reference source not found

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Chapter 1. Spatial- and Settlement Management Electronic Textbook version 3.0

This course is realized as a part of the TÁMOP-4.1.2.A/1-11/1-2011-0038 project.





1. Preface

1.1. 1. Introduction

The broad variety of the profession means a great challenge even for the professionals of regional and settlement development. Understanding the tasks of regional and settlement development only in a narrower sense we may speak about a manifold and complex definition, theory and a broad spectra of practical activities (planning, project management, fundraising, community development, lobbying, monitoring etc.) as well.

When we have founded the academic specialization of regional manager MSc we wanted to create a type of geographer 2.0 based on German experiences. That’s why the title „manager” appearing in the name on the one hand means the adaptation of the German example, and on the other hand it indicates the development of a professional competence can tackle with the complex set of problems occurring.

Regional and Settlement Management is a key subject of the same name profession of the MSc training going on at the Department of Geography, EKC. As of this sort our students learn it through a theoretical and a practical course as well. Recent work aims to help students’ in learning beyond oral lectures. The course and recent work also relies on the knowledge of the BSc subjects named „Municipal Studies” and „The Public Administration of Hungary”.

The author is in a difficult situation as firstly he has to follow out a twofold aim, namely the adaptation of an alluring external example and the renewal of the education of geographers in Hungary at once inside the framework of this hybrid subject. Secondly the situation has become even more complex as the Hungarian systems of municipalities and public administration lives to see the most dramatic changes of the last 22 years, including the radical transformation of the institutional system of regional and local development.

Actually who can become a settlement or spatial manager, but the question can be asked, who can benefit from these ideas in the daily routine? The role of a settlement manager can be filled either by a major or a notary, vice-notary maybe by a head of office. The function of a spatial manager can be fulfilled by the leaders of the county municipality, district office leaders, or the head of the county government office etc.

1.2. 2. Main contents


  1. Tasks and activities of settlement and spatial management

  2. Municipal models

  3. Models of management: differences between strategic and operative management

  4. Characteristics of technocratic a bureaucratic management

  5. The new public management and the private sector

  6. Public administration, public law relationships, public servants and service

  7. Urban management and the system of factors of the functions of town municipalities, the decentralized management of public functions, co-operative city management?

  8. The management of rural settlements and municipalities

  9. The special tasks of micro-regional management

  10. Tourism destination management – a special field

  11. The management of value-added chains and local developments

  12. The management of LEADER action groups

1.3. 3. Objectives and requirements

After the completion of the course students will be able to comprehend the definitional frames of regional and municipality management.  They are going to get acquainted with the principal background and the practical manifestations of them as well. After the survey of theoretical questions concerning municipalities and public administration they’ll get familiar with special problems of certain regional and municipality management issues. Among them we may find problems of city and village development and the specific issues concerning micro regions. They are going to acquire the bases of the guidance and management of some particular, but for geographers relevant forms (TDM, value added chains and LEADER local action groups of rural development) too.

2. 1. Tasks and activities of settlement and spatial management

2.1. 1. Objectives

With acquiring the lesson students will be able to understand the special characteristics of management activities, respectively its types. With the cognition of the specialities of spatial and settlement management and the learning of some scientific management interpretations they are going to master those frameworks what determine the management activities. Explanations concerning to the birth of regional level additionally the organizational and functional elements connected to the functions of municipalities will be reviewed.

2.2. 2. Contents

The definition and types of management

The stages of spatial and settlement management

The definition of spatial and settlement management

2.3. 3. The phrasing of contents

2.3.1. The definition and types of management

Generally we see management as a form of activities done by one or more persons in order to harmonize or co-ordinate the work of an organization. According to another phrasing, management means the planning, organization, control and marketing of a process. (László, M. N.d.)

Harold Koontz differentiates many versions of the interpretation of management in his concluding article. According to him (Koontz, H. 1980):


  • The empirical approach states the conception of management is case-sensitive and depending on what leads to success or failure

  • The interpersonal behaviour approach says things become active through people, in the centre of management is the explanation of relations

  • The group behaviour approach puts the emphasis on the behaviour of group members and built on the experiences of sociology, anthropology and social psychology

  • The cooperative social system approach (organizational theory) mixes the elements of the two former ones into one system (organization), co-operation is the most important objective

  • The socio-technical system approach adds a further technical system dimension to the former ones, according to these methods and mechanisms have a great impact on society, while the role of the manager is to make harmony between the social and the technical dimension

  • The decision theory approach apostolates that management can be marked by the way of decision-making, that is why a systematic approach to this process is a must

  • The systems approach features management as something similar to biological systems, like the sum of coherent sub-systems, inputs and outputs, it is the most complex approach integrating the others

  • The management science approach supposes that problems may be tackled in a mathematical model which contains the basic connection forms in order to optimize the objective

  • The situational approach says management actions are dependent upon the situation, we must take into consideration the effect of them on the behavioural patterns of individuals and the whole organization as well

  • The managerial roles approach originates from the research of Mintzberg aiming to investigate the roles filled by the manager

  • The operational approach is trying to mix all former ones and so produces one unique understanding of management which can demonstrate the degree of complexity needed by the manager

Inside management different functions can be distinguished. One of the most important is planning, which means the definition of the organizational aims and of the steps needed to reach them, it is a conscious adaptation to environmental changes and so a minimizing of risks (Figure 1).

Figure 1 Existing sub-systems and active forces in organizational systems (Own edition after Gáspár, M. 1995)



Figure2 The 7S model of McKinsey about the structure of management system (Source: Gáspár, M. 1995)

The 7S model of McKinsey summarizes the dimensions should be touched by management activities in a given organization. (Figure 2) In any organization do exist or revive different kind of forces and there are more or less formalized units whose operations are crucial for the manager.

The stress of individual dimensions can be different in the life of certain organizations; according to it Mintzberg distinguishes seven kind of organizational structures. (Table 1)

Table 1 Organizational structure types written by Mintzberg (Source: Gáspár, M. 1995)

Source: Own edition after Gáspár, M. 1995

It is crucial for a manager to be aware of which type his organization fits in best according to the inner circumstances.

The temporality of management activities can’t be overstressed. Regulation plays an exceptional role in it as it is able to install feedback points into the processes of the organization. In case of permanently repeating activities planning, doing, checking and acting are recurring in continuous cycles, we call it PDCA cycles. (Figure 3)

For the realization of plans organization is inevitable, which helps to secure resources needed for functioning. It is supplemented on the one hand by the guidance which adjusts the input side of the organizational units, and on the other hand by the control which covers the direct or indirect (communication) command of human resources. Especially in case of organizations acting through democratic legitimacy, organizational policy must be arranged when decisions are to be passed by the stakeholders.

According to the timeframe of objectives we can distinguish different types of managements:



  • strategic management

  • tactic management

  • operative management

Figure 3 The PDCA model (Source: hci.co.au Downloaded 10 February 2013)

For the production of different goods the co-operation of value added chains formed by different economic units is needed. The most important sub-systems of such a chain are as follows:


  • Primary activities, sub-systems directly connected to the market

  • Marketing management to get connection with market

  • Innovation management in order to gain competitive advantage

  • Production and service management

  • Quality management

  • Logistics

  • Human resource management

  • Information management

  • Financial management

2.3.2. The stages of spatial and settlement management

The subject of management can be all short of phenomena, we may speak about business, project and financial etc. management. Especially for geographers management of different spatial units arises as a problem to be answered. While settlements are relatively well-defined, the determination of areas or regions is more indistinct. (Bujdosó, Z. 2008)



Figure 4 The system of districts in Hungary (Source: www.jarasok.com Accessed: 10 December 2012)

Changes occurring in the Hungarian national spatial system have brought a new situation in the scope of duties of spatial management. (Figure 4 and 5)

Figure 5 The statistic-planning micro regions in Hungary (Source: www.ksh.hu Accessed: 10 December 2012)

Many authors has tried to define the concept of settlements has been tried by many authors. Our opinion is that from them the so-called „tetrahedron model” formulated by József Tóth is adequate to serve as a base for the refinement of the subject of settlement management. According to this author a settlement is a co-operative system based on the interaction of natural, social, economic and infrastructural spheres. The dynamism being in the definition must be highlighted as all sides of the tetrahedron adjacent the others, so a change in one dimension affects every other side. During the process of settlement management attention has to be paid on it as well. (Tóth, J. 2002)

In the functions of municipalities three kind can be differentiated, such as basic, service functions additionally management tasks directing-organizing the former ones. (Figure 6)

Municipal systems of the member states of the European Union are extremely multicoloured, except the regions, micro and macro areas of the 27 member states being at different autonomy degree. The legislation of the EU does not possess full competency or decisive legitimacy in these topics, so the role of the national level is still dominant. The Community legislative contains mainly protocols and non-binding legal elements. The veteran European Charter of Local Government accepted in 15 October 1985 or the European Charter of Regional Government are of this sort. (Figure 7)

Accordingly there exists a principled framework that at least in Europe tries to standardize the frames of management of municipalities. However, management activities are realized over it in the everyday practice. As Cameron Harcourt stated in his analysis of Vancouver, cities are the results of those everyday choices which are taken by us as leaders, activists or citizens. (Harcourt, C. 2007)



Figure 6 The so-called cube model of municipal activities (Source: Gáspár, M. 1995)



Figure 7 Countries signing the European Charter of Local Government (Source: upload.wikimedia.org)

The region is a broadly used key phrase applied by many actors consequently a broad set of meaning has been connected with it. The European territorial actors have conceived their special region interpretation. In a county-conference held in Hungary in 1998 Hans De Belder, the representative of the Assembly of European Regions has defined the region as follows:

„a democratically elected political authority that is situated directly under the government and more-or-less autonomous economically and financially. Very often they can possess their own culture, history, identity etc.”(De Belder, H. 1998)

Social geography is not uniform in the definition of regions. Our opinion is that the interpretation of regions of Anssi Paasi is a properly complex definition as it states that regions are culturally and socially created units, historical creatures, formations that change in time. They are born by social activities and communication, but more than the pure image of momentarily perceived reality.(Paasi A. 1991)

Paasi (1986) differentiates the REGION from PLACE. The latter is related to the experiences, everyday life and personal meanings of individuals. The former is paralleled with society and collective. (Figure 8) „REGION” is the result of institutionalized practices and collective meanings. Naturally individuals and society are in constant interaction consequently the system is reproduced and transformed.



Figure 8 The presence of individual and society in human activities (Paasi, A. 2000)

2.3.3. The definition of spatial and settlement management

The phrasing of settlement management – similarly to the former ideas – is not an effortless duty. According to some authors settlement management is in fact not the agency of individual actions, but that of action-networks. Anyway relationships among different organizations are important. In the complex and inordinate, un-sutured system of inter-organizational networks authorities are only one part of input, in no case represent the whole system. (Czarniawska, B.2002)

Spatial and regional management is an even more complex definition than settlement management. It concerns not only the co-operation of individual settlements, but of many more actors (enterprises, NGOs, national and regional authorities and organizations etc.) that can’t be tied to one particular settlement.

Besides there is another explanation of regional management, namely the comprehensive control of organizational units of global companies acting in different geographical areas. (Ambos, B. – Schlegelmilch, B. B. 2010)

The person of settlement and regional manager is substantial despite – as we stated above – management is about the activities of supra-individual networks. Still in the spider web spiders have a crucial role holding the end of pile in his hands and detects all movements of sub-systems.

However the settlement and regional manager is the man nestled between politicians and the technical-executors. Ultimately his activities can be characterized not so by innovation as the endeavour towards the accuracy of reproduction and execution. (Czarniawska, B. 2002)

We may give a complex answer to the question whether what activities do managers have to care about. The performance of an organization, like settlement and areas can be divided into two parts: we may distinguish professional and constitutional issues. While the former ones pertain to relations originated in connection with the main activities of the organization, to the latter ones the next can be instanced:




Conceiving among the frameworks of the traditional thinking, management activities to a great extent are about information processing with the next parts:

  • analysis: the collection of information about the internal-external environment of the organization

  • communication: regularly with stakeholders (maintainers, users, inferior staff members)

  • planning and henceforth the improvement of the efficacy of decision-making

  • implementation: a more effective execution (the improvement of info-systems, the training of human resources etc.)

  • utilization: with the implementation resources needed for the work of the organization are born

  • follow-up

The manager in other worlds can be named a problem-solver what function may be depicted by a standard formula:

  • Raising and determining of problems

  • The analysis of the external and internal environment

  • The establishment of the framework priorities – the designation of basic values, organizational mission

  • Problem analysis (SWOT)

  • Search for and evaluation of solutions

  • the examination of feasibility

  • cost-benefit analysis

  • To draft the detailed map of solution

  • The detailed description of activities

Expressing a bit in a post-modern way, one main role of a manager is sense-production what can be affected by functionality and the force of authority as well. Another key function is to rule difficulties or the struggle with daily problems including planning and the vision of implementation as well. As a manager it is hard to find peace, it is a must to construct and reconstruct permanently in a way to focus on a further and further piece of reality. Fastening belongs to it as well, thus new inspirations and ideas must be tested by possible actors in order to secure their support.

At last but not least the job of a manager is to peg away at beauty, since either a sound machine or a run-in inter-organizational mechanism is beautiful as well. The aim of the manager is to secure this beauty. (Czarniawska, B. 2002)

According to another approach spatial and settlement managers basically direct different energies as long as from a mere idea a tangible project emerges, as Viktor Schauberger, the great Austrian researcher stated:

„If I want to make an apple pie, there is first the idea, then the planning, translating this through visualization and then finally the physical creation of the pie. This is much more important than we realize. From the simplest task like tying your shoelace, to the complex challenge of becoming a tennis champion, the better the 'mind pictures' of how we are going to perform the required actions, the more successful will be the outcome. The force, the impulse, which is the motivator for us to create, is an unseen energetic process.” (cited by: Bartholomew, A. 2003)

According to different sciences settlement and spatial management can be interpreted in different ways as well.

In history the stories of different settlements and areas, the examination of the relationship between leader persons and phenomena plays elemental importance. In jurisprudence the survey of legal acts and aspects determining development are of primary relevancy. In economics these units exist as the places of economic activities. It is argued by some authors that controlling a city resembles being a multinational company’s CEO. (Czarniawska, B. 2002)

Sociologists analyze the population of settlements and areas, their social constitution that is they are looking for internal factors behind surface processes. According to administration science management is that part of the operation of the given organization which is responsible for the environmental adaptation skills, additionally harmonizes and makes goal oriented different functions. (Gáspár, M. 1995)

Geography as a chorological science deals on the one hand with the spatial distribution of administrative and management activities on the other hand with the geographic relations of different actors. Initiating from the theory of institutionalization by Paasi the task of a spatial or settlement manager can be specified as the second or the arranger of the institutionalization process. (Figure 10)



Figure 9 The system of agents concerning the performance of settlement municipalities (Source: Gáspár, M. 1995)



Figure 10 The draft of the institutionalization of regions (Source: Paasi, A. 2000)



Animation 1: The system of agents concerning the performance of settlement municipalities

2.4. 4. Summary

In this chapter we introduced some possible ways of the interpretation and the types of management. We indicated that in different organizations diverse sub-systems and forces can work, henceforth the tasks of managers can be standardized only to a relatively small extent. It is a crucial statement, that it is not enough to deal with the work of an organization at a glance but rather to analyse it in dynamic. Different assistant methodologies that can be summarized with PDCA cycles serve this purpose. The settlement and spatial management can occur in diverse scenes out of which in recent chapter we highlighted settlement municipalities and different spatial units (regions). The common regulation of the agency of municipalities has been started for more than 25 years, despite the national control today for the main is integer.

Different sciences try to interpret spatial and settlement management by their special point of view, for geographers the theory of the institutionalization of regions by Paasi provides a complex way of understanding.

2.5. 5. Self monitoring questions



  1. What types of management can be distinguished?

  2. What does PDCA model mean?

  3. What are the special tasks of settlement management?

  4. What is a region?

  5. What steps constitute the institutionalization of regions?

  6. Which countries have ratified the European Charter of Local Government?

  7. When did Hungary ratify this agreement?

  8. What kind of financial sources must be made for the European municipalities?

  9. What is predicated by the so called cube model of municipal agency?

  10. What main points constitute the system of agents concerning the performance of settlement municipalities?

2.6. 6. Test questions

Conjugate the organizational structure types written by Mintzberg to the below characteristics!




Organization type

Character of the organization

1. Entrepreneurial

a, A permanent conflict situation, the cohesion is depending on the efficiency of the conflict management

2. Mechanic bureaucratic

b, Internal cohesion given by the organization culture, loosely formalized other internal contacts

3. Diversified

c, Instable organization, strong service units, complex co-operation mechanisms

4. Professional

d, A priority of the professional staff, democratic decentralization

5. Innovative

e, Strong mid-level, sub-units with a high level of autonomy

6. Missionary

f, A strong formal control, quality assurance and limited decentralization

7. Political

g, A tight control over the executives
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