ASSIGNMENT

NICMAR / CODE OFFICE

Course No.

- NCP 21

Course Title

- MANAGEMENT IN ORGANIZATION

Assignment No.

Date of Dispatch

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 Organization
Structure with following conditions:
i.
ii.

Organization should be as lean and thin as possible with bare minimum

of personnel on company roll up to Junior Engineer level.
All supervisors to down below will be temporary for project duration
only to be recruited locally from 100km radius.

Suggest and discuss an organization structure denoting responsibility, authority,

communication control for all facets of construction work and management
functions as visualized by you.
Housing Colony consists of 10 Bungalows for Senior Executives, 20 Apartments in
five buildings, 100 dwellings for White Collared Workers and 300 dwellings for
Blue Collared Workers. Colony will have market and entertainment complex.

SCOPE OF WORK:
The given situation is related to sketch an organization structure for a
construction company which has to build a Housing Colony which consists of 10
Bungalows for Senior Executives, 20 Apartments in five buildings, 100 dwellings
for White Collared Workers and 300 dwellings for Blue Collared Workers. Also the
Colony will have market and entertainment complex.
Here, as a Project Manager, the Scope of work involves:
1. Creating a Lean and Thin Organization Structure for performing the given
task.
2. Assigning the Roles, Responsibilities and Authority at each level for
successful completion of work.
3. Ascertaining the number of employees at each level and dividing the
functions in Technical and Administrative Heads.
4. Creating a communication flow for proper co-ordination between different
verticals.
5. Establishing proper control system in case of any problem.

FUNCTIONS:
For successful and timely completion of any work it is very important that a
Project Manager should clearly set up the functionality of the whole system. It is
very important to notice that if one desire to complete the work successfully then
one should understand first what the basic functions of a manager are. The
following are the functions of a Manager:

PLANNING

CONTROLLING

DIRECTING

ORGANISING

STAFFING

FUNCTIONS OF PROJECT MANAGER

1.
2.
3.
4.
5.

PLANNING:
ORGANISING
STAFFING
DIRECTING
CONTROLLING

Now let us understand every function of the manager:

1. PLANNING: This is the first and foremost step of every work and Planning
is always the first function performed by every manager. Planning refers to
deciding in advance what to do, how to do, when to do and who is going
to do it. Planning bridges the gap between where we at and today and
where we want to reach.
Every manager starts with deciding in
advance the objectives of an enterprise and how to accomplish these
objectives. Planning is base of all other function of management.

2. ORGANISING: After setting up of plans the next step is to look at all the
activities that are included to get the work done and on the basis of that a
manager has to set up an organization structure wherein he can clearly see
how he can execute the plan. Setting up of an organizational structure
into units and sub units so as to define all the activities to perform the
task is called ORGANISING.
Organizing includes important functions like how
many departments would be needed, how many posts will be decided for
each department and sub unit, defining authority and responsibility of each
post.
3. STAFFING: This is one of the major steps where manager has to make very
decision while selecting employees for the given task. Staffing is a function
that involves selecting Right Candidate, for the Right Post and at the
Right Time.
Staffing not only restricts to selecting candidates but it
is more elaborate function as it involves selection, deciding the
remuneration, providing training ,assigning duties to the employees,
maintaining cordial relations, listening and solving their grievances and
evaluating their performance.

4. DIRECTING: After the selection, the next step is to instruct the employees
and getting the work done. Directing refers to giving directions to the
employees by motivating them, supervising their activities and
communicating with them.
Manager acts a leader and guide his
team into right direction, so Directing includes Supervising, Motivating,
Communicating and Leadership.
5. CONTROLLING: This is the final step of the whole process. Here the
Mangers evaluate their actual performance with the Planned Performance
and if there is no match between both then managers try to find out the

reasons of deviation and suggest corrective measures to come on the path

of plan. Controlling functions refer to all the performance measurements
and follow up actions that keep the actual performance on the path of
plan.

ORGANISATIONAL STRUCTURE FOR THE FLOW WORK &

COMMUNICATION:

i.

SITE ORGANIZATION STRUCTURE:

EXECUTIVE ENGINEER

ASSISTANT ENGINEER
(PHE SERVICES)

ASSISTANT ENGINEER
(CIVIL WORKS)

JUNIOR ENGINEER

FORE MAN 1

LABOURS

FORE MAN 2

LABOURS

ASSISTANT ENGINEER
(ELECTRICAL)

After having decided the organizational structure in a construction company, the

next step is to spell out the tasks, power and responsibilities of all its functionaries. Telling
an accountant that he is to look after the accounts work or telling the foreman that
he is to supervise the daily wage workers at the site is not enough. Specific job detailing i.e.
what is to be done by whom, at what time and how it is to be done is the starting point of the
site organization. Site organization, in simple terms, means how to organize the construction
activities on site. A typical site organization for a division, headed by an executive engineer.
Important Duties/Roles Executive Engineer:
To coordinate the work of various contractors and to check whether all necessary
instructions have been provided to the contractors.
To check the progress of work regularly and to arrange for rectification of
faulty workmanship or inferior quality material.
Clearing all bills related to construction work for which he is the final
authority.
To carry out technical audit and settlement of final contractual dues.
Important Role of Assistant Engineer:
To check the specifications of construction jobs in regard to the quality of materials,
method of workmanship.
To plan and organize construction work in his section in order to avoid delay in the
process of work.
To keep a record of all measurements of work done and tests carried out at site.
To report regularly to the executive engineer on all the above matters.
Important Role of Junior Engineer/Supervisor/Foremen:
To supervise the execution of work at the site in their respective sections.
To place indents of material well in advance to avoid delay in the progress of
construction work.
To control and provide technical guidance to workers.
To check and test materials for quality and quantity.
To measure the quantity of work done for the purpose of payment and progress.

To report regularly to the assistant engineer on all matters related to site.

Important Role of Skilled worker:

This category includes carpenters, steel fixers, machine operators, drivers, fitters,
pipe jointers etc. They are usually recruited locally for their respective jobs. Their job is to keep
the work going at the right speed and in the right manner in their sections.
Important Role of Labours:
They are the ones who assist skilled workers and performed many unskilled jobs at the site.
They expect the right payment and need to be given clear instructions regarding what to do.

ii.

CONTRACTORS SITE ORGANIZATION:

In contractor's site organization, key persons involved in a project are described below:

PROJECT MANAGER

RESIDENT MANAGER

JUNIOR ENGINEER 1

JUNIOR ENGINEER 2

FORE MAN 1

FORE MAN 2

FORE MAN 1

LABOURS

LABOURS

LABOURS

FORE MAN 2

LABOURS

Important Duties/Role of Project Manager:

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 head office depending on the size of the project, policy of
the firm, distance from head office and also 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 periodically joint meeting of several key personnel working at the
site to review progress and to issue instruction for speeding up work, if required.
The duties of the resident engineer, Site engineer etc. and are similar to those of the
Executive Engineer, Assistant Engineer etc.
The project management construction manpower planning is primarily concerned
with estimating the worker's productivity, scheduling manpower employment,
and structuring it into workers' team and work groups, with a view to economically match
manpower supply with the task requirements. The setting up of a suitable organization
for various civil engineering works is all the more necessary because the construction industry
is a competitive field of endeavors which is susceptible to many risks, variable labors condition
and diverse construction problems.

In order to be effective, an organization has to follow certain basic principle

given below:
Principle of Objectives:
The organizational objectives should be clearly defined. The structure of the organization
should be geared to achieve these objectives at minimum cost and effort.
The Scalar Principle:
An organizational structure consists of different levels of authority arranged in a
hierarchical manner. The line of authority should be clearly defined from the chief executive at
the top to the first line supervisor at the bottom. This is known as Scalar principle. The
importance of scalar principle lies in the fact that the understanding of authority

relationships within an organization becomes easier. It also throws light on how

different parts of an organization are created and held together.
Principle of balance between Authority and Responsibility:
In order to work properly, it is essential that everyone knows his duty, responsibility and
authority of powers. Authority means right to act, decide and command. The delegate will not
be able to perform his task properly unless he is given necessary powers. So, whenever a task
is assigned to a person, he must be given sufficient power to exercise control in order to
achieve desired objectives. Responsibility is the obligation of a subordinate to perform any job
allotted to him by his superiors. A person, who is assigned responsibility to do a certain job,
must be given appropriate authority to achieve the same. Thus authority and responsibility go
hand in hand and must be balanced rationally to produce best results. For example, if a civil
engineer in a construction firm is asked to carry out constructions of different structure, and is
not given corresponding authority to procure the various resources, responsibility given to the
civil engineer would be illogical and unbalanced.
Principle of Unity of command:
Each person in an organization must know to whom he has to report and from whom he has
to receive order. He should also know the persons both upwards and downwards whom he is
to consult. The principle that each subordinate report to only one superior is called the "Unity
of Command". This not only avoids confusion but also helps in maintaining definite line of
commands. In order to avoid indiscipline, delay, disorder and undermining of authority, a
subordinate should receive orders from only one superior and not from a number of
superiors.
Principle of Span of Control:
According to this principle, there is a limit to the number of subordinates an executive can
effectively supervise. There are many factors on which the span of control depends, such as
the type of work, whether routine or repetitive, level in the organization, type of problems
encountered and ability of person involved. The optimum span of control varies from person
to person and job to job. Sometimes number six is taken as the effective span of control.

 Principle of Departmentation:
Departmentation means the division of an organization in to several distinct departments
or sections. This helps in increasing efficiency and facilitates the execution of work. In
order to obtain optimum results, the function and scope of each department must be clearly
defined.
Principle of Specialization:
According to this principle, activities of the organization should be grouped as per the
functions and assigned to individuals according to their specialization.
Principle of Communication:
The number of supervisory levels in an organization must be kept as small as possible. This
helps in shortening the line of communication for passing on information, instructions and
suggestions from the chief executive level to the first line supervisor.
Principle of Flexibility and stability:
Flexibility and stability in an organization are closely inter-related. On the one hand, an
organization should be flexible enough to assess the changes which often become necessary
because of internal and external situations. While on the other hand, the organization must be
stable enough to withstand any organizational change which becomes necessary for the
accomplishment of its objectives.
Principle of Motivation and Professional Growth:
The organizational structure should be such that it provides enough opportunities to its
personnel for its professional growth and upward or lateral mobility. Job roles should be such
that each member of an organization achieves professional satisfaction and is
motivated towards loyalty for the organization.
Principle of Continuity:
The organizational structure should be dynamic so that it not only provides for the
activities necessary to achieve its objectives but also for the continuation of such
activities in the future. This maintains a link between the past and the future. The project
management team is led by a project manager, who is the agent of the client and acts on his
behalf. He either appointed by the client or is position at sight by the construction

management consultant of the client. He coordinates and communicates with all the agencies
engaged in project work. In particular, he is accountable for planning, mobilizing, and
motivation directing, coordinating and controlling all the activities at the project
site which are necessary for achieving the project objectives of time, cost & quality. Loosely,
the site in-charge of a major contractor is also referred as contractor's project manager or
general manager or construction manager. 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 man-hours 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
or 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. Authority to carry out function:
Construction involves multi-skill technology for its wide range of related activities.
These skills vary with the nature of job, type of project and corporate policy of the contractor.
The first step towards determining productivity standard is to identify the trade
workers needed for execution of the project. I.S. 10302: 1982, Indian standards on "Unified
nomenclature of workman for civil engineering", published by its
construction management section committee includes around 95 categories of
labours. The trade categories and crew sizes used for determining construction output also
varies with various agencies publishing output planning norms. On the whole, for a
given project, nomenclature of the trade categories needed for workers' planning,
mobilizing and monitoring productivity, should be identified and standardized.

SUITABLE SUB JUNIOR LEVEL WORKERS

CONSTRUCTION WORKS:
Shuttering Carpenter, wood Polisher, Carpenter helper, concrete Mason, Mason,
Tiling Mason, Mason helper, rebar fabricator, rebar helper, Painter,
painter helper , Electrician, Electrical helper, Plumber/Pipe Fitter, Plumber
Helper, General Helpers.

MECHANICAL TRADE:
Light vehicle drivers, Heavy vehicle drivers, equipment operators, Blacksmith, welder,
sheet fabricator, auto Electrician, Mechanic/operator, Helpers, Riggers and other
categories. Actual strength of workers category wise or construction work adjustment for daily
manpower requirement: Every construction site whether large or small requires
temporary services which are designed and provided by the contractor. The design and
selection of services depends on various factors including size and nature of the project,
location of the project, project cost, and number of working shifts per day and the specific
needs of the project. Temporary services consist of water supply, electricity
connection, repair and construction yards, material stores, approach and service
roads, sewage and sanitation arrangements, site office, labour huts etc.

BIBLIOGRAPHY:
Koontz Odoneal Mac Graw Hill Publications.
Business studies by Poonam Gandhi