ASSIGNMENT ON MANAGEMENT IN ORGANISATIONS NCP 21

SUBMITTED BY

ASSIGNMENT NICMAR/CODE OFFFICE

1. Course No 2. Course title 3. Assignment No 4. Date of dispatch

: : : : :

NCP 21 Management in Organisations 01 17-08-2011 30-10-2011

5. Last date of receipt of Assignment at CODE office

ASSIGNMENT Your company has bagged a lucrative contract to construct a housing colony for an industrial group to be located in western Maharashtra in a coastal belt. You as a project manager have been asked by the company to evolve organisation structure with following conditions. i. Organisation should be as lean and thin as possible with bare minimum of personnel on company roll up to junior level. ii. All supervisors to down below will be temporary for project duration only to be recruited locally from 100km radius. Suggest and discuss an organisation structure denoting responsibility, authority, communication control for all facets of construction work and management functions as visualised by you. Housing colony consists of 10 bungalows for senior executives, 20 apartments in 5 buildings, 100 dwellings for white collar workers and 300 dwellings for blue collar workers. Colony will have market and entertainment complex.

SCOPE OF WORK The project is about construction of a housing colony for an industrial group in Western Maharashtra in a coastal belt. There are main aspects to be studied in the course of project are organisation structure their responsibilities & communication flow. Considering the fact that the local supervisors can be engaged in the field from the local area:
a. No accommodation is must for local Supervisors & workers, b. Only travel arrangements can be made available on demand as the people

are around 100km radius from the work site and

c. The workers strength can be altered in the work load.

Apart from these as all the materials are purchased from the local surroundings the availability of materials can be made on demand and there will be an assured supply of materials.
1. The colony may be divided into three blocks tabulated as,

BLOCK

AREA (sq.m.)

PERSONELL SENIOR EXECUTIVES

NOS

REMARKS

6000

40

10 bungalows comprising of two apartments each. individual house

1500

WHITE COLLARED WORKERS BLUE

100

individual

2000

COLLARED WORKERS

300

house

Apart from the housing it is also proposed to build an entertainment complex and a market. Key Functions The key function of construction Project:
1.

Planning & Scheduling: Planning involves formulation of a number of alternative realistic work plans for achieving specified objectives. Finally selecting a plan which is best suited from the stand-point of available resources and constraints imposed upon the project. Scheduling is fitting of the final work plan in to a time scale. It shows the duration and order of various construction activities. Organizing: Organizing is concerned with division of total project in to manageable departments/sections and systematically arranging various operations by delegating specific task to individuals. Staffing: Organising involves division of project work into section and staffing is the provision of people to fill the position so created. Directing: The directing function is concerned with the training to the subordinate to carry out assigned task, supervising their work and guiding their efforts. The essence of directing lies in the ability to motivate people individually and as groups. Controlling: Controlling is necessary for ensuring effective and efficient working. It involves constant review of the work plan to check on actual achievement and to discover and to rectify deviations through appropriate corrective measures. Co-ordinating: Since authority coverage to the top of the organizational pyramid, it is necessary to bring together and coordinate the work of various department and sections. This requires an efficient system of communication so that each department and section is aware of its role and assistance to be expected from others.

2.

3.

4.

5.

6.

Based on key functions we can make a management chart BREAKDOWN IN MANAGEMENT

The above chart is the outline for the breakdown for the management in the organisation. The top most position in any project is the project manager. The orders are executed by the junior engineers through their senior engineer who is guided by the construction manager. The functions of the personnel are discussed briefly below I. PROJECT MANAGER: The project manager is a leader of the team. The project manager will have clear idea about all the process that takes place in the project. He should be influencing the team to follow in the achievement of a common goal. He should be able to identify the delay if it is occurred and should be able to rectify it. He is answerable to the top level management of the firm and to the clients. To coordinate the entire construction work on site and with the head office. To direct and control the construction work on site.

To employ work force, hire machinery, engage sub contractors and material suppliers with or without reference to H.O depending on the sizes of the project, policy of firm , distance from H.O and alos his standing within the firm.

To organize, direct and control men working under him.

 To check the progress of work regularly in orders to avoid delay in construction work. To call periodical joint meetings of several key personel working at the site to review progress and to issue instruction for speeding up work if required.

The achievement of these project objectives is closely linked with the skill, effectiveness and efficiency of the project management team, and how it is organized for conducting its operations. This team consists of the functional of heads or the body of manager in a project. To quote example, Turnkey contractor's project management team comprising of heads of staff and line department of a typical housing units building construction project of bungalows, Apartments etc. as shown below: Establishing Workers' Productivity Standards The basic equation for determining the workers required for accomplishing a specific activity is as Workers required = Work quantity X Workers' productivity Standards/ Completion Period Workers' Productivity Standards = Worker's output norms X production efficiency factor Workers' productivity standard is defined as the effort in man-days or manhours needed for accomplishing a unit quantity of work, while working efficiently but allowing for normal delays and wastage. Work quantity of the activity involved is expressed in standard work units. Completion period is taken as working days or hours planned or earmarked to accomplish the task. Workers production norms are expressed is man-days or man hours, category wise required for accomplishing the unit work. Production efficiency factor is the multiplier used to convert production norms into productivity standards expected under job condition at the site.

In this basic equation for determining manpower, the quantity of work to be performed can be accurately estimated from the construction drawings and specifications. If the work is to be completed within the stipulated period, the variable in assessment of workers' requirement is the productivity standard.

I. PROJECT COORDINATOR

The function of a project control manager is to regularise the work flow in the project.

He forms a planning department under which all the essentials of the project are been maintained and recorded. The project control manager being the head of the planning department has to keep up the above mentioned functions. He is assisted by: SCHEDULERS: prepares the work flow for a project. DOCUMENT CONTROLLERS: maintains all the records of the

project COST SPECIALISTS: analysis the day to day change in field of construction financially and run the project economically.
I. DESIGN CONSULTANT:

The design manager makes the plan and does the design of every single member of a structure that has to come in the project. As for the residential project, he does prepare the layout of the entire colony with specification of the every single apartment and bungalow allocated as per the specification proposed by the clients.

He prepares the drawings which provide all the essentials for the structure.

QC INSPECTOR: He takes care in examining the quality of the all the products from reinforcement, concrete to a completed building. SAFETY INSPECTORS: He assures the safe working condition prevails in the site to all the people working in the site. Thus he assures that the risk factors in the site are minimized and a safe working environment is provided. I. CONSTRUCTION MANAGER He is the head of the execution department.

The main function of the execution department is to execute the orders received from the planning department. The most active post in the organisation is the construction manager since he decides upon the plans proposed on assumed working conditions and executes them under the actual working conditions.

He has a team consisting of engineers ad his sub ordinates for various works in the field.

The table below gives the outline for the entire assignment as a precise for the above all discussions: S NO 1 DESIGNATION QUALIFICATION & EXPERIENCE Project In-charge Min 15 years exp in the field of construction NO 1 REMARKS Forms the head of the project nominated via board of members in company Recommended by the project in

Asst. Project Manager

Min 10 years of exp in the field of

construction 3 Accounts manager Min 10 years of exp in the field of accounting & auditing Min 10 years of exp in the field of construction Min 10 years of exp in the field of quality and control Min 0-2 years of exp in the field of construction Min 5-20 years of experience in the field of construction : 10 : 50 : 100 1

charge Takes sole responsibility for maintain the cash flow control for the entire project Makes the entire work flow operations in the project Ensures the project works are done with quality For site work

Construction manager

Quality control in-charge Engineers

Foreman & Supervisor

20

For site work

The number of technical officials The number of skilled labours The number of Semi skilled labours The number of unskilled labours

(may vary on demand) (may vary on demand) vary on demand)

: 300 (may

INPUT/COMMUNICATION REQUIRETMENT AND FLOW As discussed above the breakdown in an organisation can be categorized precisely under four departments namely,
i. Planning & Infrastructure department,

ii. Finance department,

iii. Quality department and

iv. Execution department. The functions of all the above departments are explained elaborately below PLANNING & INFRASTRUCTURE DEPARTMENT: The Planning team would work on the Layout, Town Planning and Connectivity. The Infrastructure team would ensure that the basic infrastructure like Water and Electricity is made available to the units. The intention to club these two divisions is based on logical interpretation of the basic tenets on which the two teams work. A coordinative effort between these two divisions will ensure that that the product is ready for the execution team to deliver. FINANCE DEPARTMENT: The team will work around the year to ensure that the required cash flows are maintained and also to ensure that the work doesnt get affected due to the inherent issues of managing the project. Employees in the Manager level will ensure that all the required books are to do the book keeping and also execute the plans of the General Managers. The General Managers are to ensure that the plans are made keeping in mind the vision and direction set by the Project Manager. QUALITY DEPARTMENT: The Quality Team will have a structure as follows: Quality Control plays a very vital role in a project. Hence, it would be critical to

have a Quality team member involved in every critical aspect of the project. A team member would be involved in the Planning and Infrastructure, one team member in Architecture and one in Execution. A team member of the cadre of an AGM would ensure that the Managers who look after the individual portfolios execute the plans according to the vision and direction of the Program Manager. EXECUTION DEPARTMENT: The primary thing that has to be realized is that execution is a very critical team for the success of the organization.

This team has to be closely monitored and should also be given enough flexibility to allow intelligent deviations from the plan and also should be flexible enough to incorporate the changing conditions in the environment.

COMMUNICATION FLOW: Co-ordination of workers their views and finally completion of project are the necessary task of manager. He has to collect views of various persons at different level and required to execute the job to be more correct, realistic and feasible. He is also required to co-ordinate various gangs, persons involved in construction. He has also to co-ordinate various activities in a project.

Motivation is very essential in modern management technique. The job of managerial person is to motivate the workers for effective working. This can be achieved by economic, psychological and sociological satisfaction of workers. Functional authority is the common thing in organization. It is the power which an individual or department may have delegated to it for specific processes, practices, policies and related matters. A Managing Director may have the complete authority to manage the company subject to the superintendence and control of board of Directors. But he is not expert in every function in the company and has officer responsible for technical, production, finance, personnel matters etc. Theoretically all these officers must give advice to managing Director and the latter alone will issue instructions. However, Managing Director delegates authority to these officers to issue instruction directly to the line organization. This is called functional authority. Since functional authority is an act of delegation, it may create confusion. A project manager reports to the managing Director. He may receive instruction from Finance Manager who is of equal status. Functional Manager generally lay down the rules, procedures, forms, norms, time schedule etc. in regard to the discharge of work. Line Managers function within the framework. For example: The finance Manager of a company will lay down the rule, procedures and methods of accounting, cash handling, spending, collections etc. He will also establish norms/rates etc. which should be adopted for profitable work. Line Managers will function accordingly and could make a reference if a deviation is needed. A small company may not have a Finance Manager; it may hire a firm of auditors/ chartered accountants to render this advice. There is no one way to manage things. Each organization has to find a method best suited to it. However, no organization should go against the principle of Unity of Command and no organization should do anything to weaken the authority of life Managers.

On the human level, controls often comes down to telling people what to do and criticizing them or applying other pressures if they do no what they are told. This aspect of controlling performance is inescapable. It can pose a problem because many people do not like to be controlled or to be corrected for offstandard performance. To a certain extent, the difficulty must be simply endured. Part of the unique responsibility of the managerial job is to exert this control over subordinate and

to accept and deal with any negative effects as expressed in anger, resentment, complaints or temporarily lowered morale. A supervisor who cannot at least partly offset the human problems of control will be at a distinct disadvantage because performance standards as far more successful when they are willingly accepted by the people who must strive to meet them. The main objective of any management, i.e. to achieve a time cost balance relationship by proper planning and scheduling the project has already been explained in previous clauses. Man power and equipment have been assumed to be available as and when they are needed, which is off course not usual. The basic planning problem is therefore, how to decide between alternative ways of using resources such that the best profits are obtained. These decision are perhaps more difficult that the management has to face. The resource analysis report allows a manager to best use all means at his disposal. It is a technique to level out the peaks and the valleys that prevail in the managers industry. In planning resource requirements, therefore, the following key questions have to be answered. What are the total requirements of resource for a project over its duration? If resource available are insufficient than what is the minimum duration by which the completion period of the project can be delayed? What is the best utilization of the available resources to carry out the project in a fixed time? There are two basic problems involved in resource scheduling. Project duration being fixed, to level or to smoothen the resource demand avoiding peaks and valleys as far as possible. It is called resource aggregation, i.e. unlimited resources are available for disposal. With fixed availability of resources, to minimize the project duration, i.e. Resource allocation. It occurs when there is scarcity of resources.

The above discussion is precisely shown in the flow chart below,

Thus it is very clear from the flow chart that in the field of construction there is no unidirectional flow of orders or communication it is a must that a for an efficient project there is a must that all should be knowing the happenings around them so as that the problems can be discussed and hurdles are overcome. So as a result the client is pleased and at the same time the work progress is also maintained at the same ratio. As a result for the company time efficiency is gained which at the days end earns a lot of profit and fame for the concern

CONCLUSION The task of organizing the information in the building field is not difficult due to the nonexistence of a national classification system with a general consensus, nor is there anational norm for the classification and organization of this information. As a solution tothis problem, the structure of the existing

(hierarchical and facets) classifications wasapproached and the choice was made for the classification by facets. The structure proposed for the organization of the knowledge based on the Document, Processes, Elements and Basic Materials trees for a small building company has enabled the relation to be made among Materials, Services and Suppliers. A real example was used based on the quality documents obtained from one company. Later, other documents used by the company may be included. This will allow for the registration of experiences. The organized and integrated knowledge originated from a classification structure can work as a professional habilitation/updating tool, capable of integrating the knowledge of the area under consideration. Moreover, it can contribute to the strengthening of the technical history of the company and work as a channel to disseminate this knowledge to its collaborators.

RECOMMENDATIONS Having stated that the non-integration of the construction supply chain hinders the creation and improvement of value for money in the construction process.Specifically the recommendations are anchored on collaboration and supply chain management. The recommendations include:

 Ensuring the early involvement of key project team members that have expert knowledge so that an appropriate level of client satisfaction and value can be defined; Establishing of subcontractor and supplier relationships by selecting teams based on value rather than lowest price; Integrating pre-construction and construction activities and adopting common processes such as ICT; Managing the project parameters of cost, schedule, quality, and H&S in unison; Working together as a team to agree mutual goals and devise dispute resolution mechanisms; Developing and monitoring continuous improvement programmes; Developing and implementing sound risk management processes; Dealing with risks and rewards equitably by using modern commercial arrangements such as collaborative contract forms, target cost and open book accounting; Using non-adversarial forms of contract and ensuring that contractual relationships are appropriate for expected project objectives;

Using cost-plus and design and build forms on contract and deemphasising the use of management contracting as well as traditional forms of contracting and

Mobilising and developing people in order to ensure employee satisfaction through integrated teams.

BIBLIOGRAPHY Hinks, J., Aouad, G., Cooper, R., Sheath, D., Kagioglou, M. and Sexton, M. (1997) IT and The Design and Construction Process: A Conceptual Model of CoMaturation, The international journal of construction IT, July Construct IT report. (1995) Occasional Paper No. 1: A Process-Based Study of an IT Research Work Plan, University of Salford. Hughes, W. (1991) Modelling the Construction Process Using Plans of Work,

Construction Project Modelling and Productivity - Proceedings of the International Conference CIB W65, Dubrovnik.Glaser, E.M. & Backer, T.E. (1973). A Look at Participant Observation, Evaluation, 1: 3: 46-49. Banwell, H. (1964) Report of the Committee on the Placing and Management of Contracts for Building and Civil Engineering Works, HMSO. Love, P.E.D., Smith, J., Treloar, G. and Li, H. (2000a). Some empirical observations of service quality in construction. Engineering Construction and Architectural Management