PGPCM-SODE Module 11 NCP 21


SUBMITTED BY: Ajeet Singh REG. NO.: 213-03-11-11416-2153 SODE-PGPCM

No. communication control for all facets of construction work and management functions as visualized by you. Course No. authority. ii. You as a Project Manager have been asked by the company to evolve Organization Structure with following conditions. 20 Apartments in five building. ole Housing colony consists of 10 Bungalows for senior executives. . Course Title Assignment No.ASSiGNMENT NICMAR/CODE Office Name Reg. Organization should be as lean and thin as possible with bare minimum of personnel on company roll upto Junior Engineer level. All supervisors to down below will be temporary for project duration only to be recruited locally from 10 km radius. i. 100 dwellings for white collar workers and 300 dwellings for blue collared workers. Colony will have market and entertainment complex. Suggest and discuss an organization structure denoting responsibility. Date of Dispatch Last Date of Receipt AJEET SINGH 213-03-11-11416-2153 (PGPCM) NCP 21 Management in Organisation 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.

Let us divide the project into Two phases. Only after the planning and layout of these can the construction of the quarters begin.SCOPE OF WORK Since this is a large project. This may be taken up in phase-2. This will create a safe environment to the occupants and help this township flourish. The Scope of work under each phase is described as follows:PHASE 1 Construction of quarters of essential staff will be undertaken first.  Phase-I will take the largest time as ground work such as laying of Water Supply lines. Sewage lines. In this phase we will construct the following: 5 Bunglows 12 Apartments 50 dewllings 100 dwellings Market for senior executives in 3 buildings for white collar workers for blue collar works  The project may be assumed to be located at a distant location and therefore it is essential to provide a market for daily chores.   Entertainment complex is Maslow’s II order need.  The skeleton structures constructed during this phase will act as temporary dwellings for the construction staff. Communication Lines etc has to be laid out first underground. the whole project may be divided into phases. Largest number of dwellings may be taken up in this phase so as to provide accommodation to larger number of people. Electricity Lines. .

PHASE 2 5 Bunglows 8 Apartments 50 dewllings 200 dwellings for senior executives in 3 buildings for white collar workers for blue collar works Entertainment Complex  By the time of completion of Phase-I.  At this point of time it will need more workers than managers.  At this point of time. 40% apartments and 50% white collared workers. 60% apartments and 50% dwellings for white collar workers is provided against only 33% dwellings for blue collar workers. Hence 50% Quarters for senior execs.  Further development of new facilities such as club house etc may be also taken up in this phase if there is demand. the second order needs will be visible among the occupants and it is desirable to give an entertainment complex in this phase. Hence 66% of dwellings for blue collared workers will be constructed in this phase against 50% for senior execs. it may be reasonably assumed that the industrial group has began its operations and now in the process of expanding. Intially. . the industrial group for whom the colony is being constructed will require more of Senior Execs and Managers to commence its operations in this new place.

bureaucratic structures still inherit the strict hierarchies.Different types of organisational setups Bureaucratic Structures Bureaucratic structures maintain strict hierarchies when it comes to people management. These structures follow the principle of hierarchy. The work culture is neutral in outlook and the main stress is on the following of procedures. Usually the structure is centralized and there is only one key decision maker. 2 . There are three types of bureaucratic structures. They follow techniques such as total quality management (TQM).Post-bureaucratic Structures The organizations that follow post. Usually this type of structures can be observed in small scale.Bureaucratic structures These structures have a certain degree of standardization. . control and communication in a strict up-down approach. 1 . This type of structures is quite helpful for small organizations due to the fact that the founder has the full control over all the decisions and operations. Different levels have no freedom to bypass their immediate level even if the need is so. culture management etc. start-up companies. Bureaucracy works on strict following of rules and decisions are based on following of procedures rather than being result-oriented. These structures are quite suitable for tall organizations. but open to more modern ideas and methodologies.Pre-bureaucratic structures This type of organizations lacks the standards. 2 . The communication is done in one-on-one conversations. When the organizations grow complex and large. bureaucratic structures are required for management.

Functional Structure The organization is divided into segments based on the functions when managing. Functional structures appear to be successful in large organization that produces high volumes of products at low costs. In addition to such advantages. there can be disadvantage from an organizational perspective if the communication between the functional groups is not effective. This allows the organization to enhance the efficiencies of these functional groups. The low cost can be achieved by such companies due to the efficiencies within functional groups. Divisional Structure These types of organizations divide the functional areas of the organization to divisions. In this case. This way. As an example. Each division is equipped with its own resources in order to function independently. Software engineers will only staff the entire software development department. organization may find it difficult to achieve some organizational objectives at the end.There can be many bases to define divisions. . take a software company. These is a coordination department to achieve the synergy and sum up the output of the divisionis. management of this functional group becomes easy and effective.

QA engineers of project A. As an example. there are many teams in this organization such as software engineers of project A.This way. turbine division. etc. The teams are formed based on the functions they belong to (ex: software engineers) and product they involved in (ex: Project A). the company uses teams to complete tasks. or any other measurement. etc. .In this type of an organization. and these divisions have their own marketing teams. products / services basis. In that sense.Divisions can be defined based on the geographical basis. It can have microwave division. software engineers of project B. finance teams etc. Matrix Structure When it comes to matrix structure. The matrix structure gives the best of the both worlds of functional and divisional structures. the organization places the employees based on the function and the product. take a company such as GE.. each division can be considered as a micro-company with the main organization.

Training is generally on-site training especially for the lower staff. In our case we should keep in mind the type of industry we are operating in and the end results required. . The salient features of the construction business are:  The construction industry is labour and capital intensive industry.  High level of mechanisation is required to accurately plan and schedule. Trained staff is scarce and most of the construction work in developing countries is dependent on non-standard site practices and rule-of-thumb.Conclusion Every organization needs a structure in order to operate systematically. Machines provide higher output for a given input. the nature of human resources and technical qualification. The organizational structures can be used by any organization if the structure fits into the nature and the maturity of the organization. In most cases.  Construction activity is generally 24x7 business and hence staff as well as managers have to stay at worksite where keeping the family is usually not possible. One company may start as a pre-bureaucratic company and may evolve up to a matrix organization.  The staff often needs to work in hazardous conditions hence safety should be taken care of with priority. Hence some incentive to account for this hardship should exist. organizations evolve through structures when they progress through and enhance their processes and manpower. training etc to come to a concluding organisational structure. can perform larger tasks which will otherwise require impossible amount of manpower.

. Manpower Management 4. However. separate departments for material management and accounting should be there as construction project generally involve large scale consumption of material and well as big spending. Materials Management 3. However. Following are the main functions which need to be performed under this project:1. in our case we will assume that the scale of operations is not very large and hence the establishment matters are dealt in by Project Engineers. Also it is generally a good practice to keep materials management a separate activity to avail the benefits of centralised purchasing. Safety Management These activities are essential for any organisational setup to function properly. Planning and Scheduling 2. large number of labourer/staff is involved so there may be a separate Personnel Department depending upon the scale of operations.Functions Functions needed to be performed should identified first. Site Management 6. Budgeting and Accounting 5. In construction activity.

Organisational Setup Designation PM Project Engineer Gr-1 Project Engineer Gr-2 Materials and Logistic Manager Funds and Accounts Manager Junior Engineer (JE) Safety Supervisor Site Supervisor (SS) Artisan Staff Number 1 2 2 1 1 6 1 12 Status Permanent Permanent Permanent Permanent Permanent Permanent Permanent Temporary Temporary Need based Labourers Temporary .

Organisation Chart P R O J E JE-2 C T PROJECT ENGINEER GR-2 JE-4 SS-8 M JE-5 A N A SAFETY G SUPERVISOR MATERIALS E MANAGER ACCOUNTS R MANAGER PROJECT ENGINEER GR-2 JE-6 SS-12 SS-10 SS-11 Responsible for construction of Dwelling for Blue collar workers SS-9 SS-6 SS-7 Responsible for construction of Dwelling for White collar workers PROJECT ENGINEER JE-1 GR-1 PROJECT ENGINEER JE-2 GR-1 SS-4 SS-5 Bunagalows/Apartments SS-2 SS-3 Market/Entertainment Complex Responsible for construction of SS-1 Responsible for construction of .

each person will report to the higher authority mentioned in the column preceding him. the Project Manager (PM) will be overall in-charge of the project and he will report directly to CPM who will have several such projects going on under him.Communication and Authority As is clear by the organisational setup. This is a hierarchy based setup and chosen due to the following reasons: Construction project involve large scale labour and few officers/supervisors. Due to this particular trait.  The setup may allow flow of information and horizontal/upward communication from Project Engineer level. All Financial and establishment powers are vested in him. drunkenness. . brawls etc and to nip these problems in the bud. In this setup.  Often site conditions and other social factors cause problems like in-subordination./other agencies. He will also be responsible for Liaoning with Govt. it is utmost necessity that setup should be authority based rather than communication based. it is necessary to enforce strict discipline and hence authoritarian setup is required especially till the level of Junior Engineer.  Accounts Manager and Materials Manager will report directly to the PM as these functions are largely centralised.  Safety is paramount and hence Safety Supervisor will report directly to PM for more effectiveness. He may delegate his powers as per his wish to Project Engineers depending upon his personal rapport with each.

Map reading etc. He will also plan the need for materials/funds and intimate Materials Manager/funds Manager sufficiently in advance to facilitate the smooth functioning of activities. Junior engineer will assist the Project Engineer. layouts and surveys. Apartments. They will also report the behavioural pattern of the workers and their demands to JE. Market and Entertainment Complex under various phases of implementation.Project Engineer Gr-1 will be a senior and experienced Engineer and he will look after the construction of important assets such as Bungalows. He will report directly to PM. . It is difficult to determine the financial powers at each level at this point of time but it is also beyond doubt that adequate financial powers should be given at each level so as to enable the employees taken decisions falling under their domains. He will be responsible for day to day functioning of his area. Site supervisors will be locally recruited and therefore well conversant with the local language. Financial powers may be delegated by PM to different levels depending upon the need of the project. His responsibilities will be same as PE Gr-1. Project Engineer Gr-2 will be junior to Gr-1 and will look after the construction of dwelling for white collar and blue collar workers. They will ensure that the instructions passed by the junior engineers are clearly understood and followed on the worksite. manpower planning. His responsibility will mainly be on site and will be responsible for quality control. Hence they will be the most important link in this chain. He will report directly to PM. Site Supervisors will form a link between the labourers/Artisan Staff and Junior Engineer.

Suitable leave structure should be devised to allow the employees enjoy their social life. Robbins .     Theories of Elton Mayo et al maybe implemented at middle and higher management levels. However.Recommendations:  Generally speaking. This will facilitate the flow of knowledge and help workers benefit from each other’s ideas. construction industry has its unique nature and hence Scientific Management as propagated by Wilson works best at lower levels.McGraw Hill Publications Management and Organisational Behaviour – Laurie J. At this level.  The Project Manager should hold monthly workshops to promote the welfare policies of the company and should make the employees aware of these welfare policies.  Timely workshops should be conducted to highlight and award the employees who have made certain innovations in their fields. Also this will improve communication among the organisation. Recommended Readings:     Chapter on Organisation Management – Koontz Odoneal. There should be a system of group incentive as well as individual incentive to get maximum output. most of the personnel involved are struggling with Maslow’s first order needs and simple management principles and clear and tangible incentives work best with them. Community Centre should also be provided in this colony.C. Tulsian Organizational Behaviour – P. “SOLDIERING” comes into picture at lower levels. employees are not “cog in the machine”. Mullins Business Organisation and Management – P. Site supervisors and junior engineer play a vital role in this scheme and incentives will be distributed based on their feedback.