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TABLE OF CONTENT:

S PARTICULARS NO.
NO
1 1.1 INDUSTRY PROFILE 3
1.2 GLOBAL SCENARIO 4
1.3 INDIAN SCENARIO 5
1.4 KEY PLAYERS IN THE INDUSTRY 6

1.5 PESTLE ANALYSIS 7

2 COMPANY PROFILE
2.1 BACKGROUND AND HISTORY 13
2.2 VISION, MISSION, GOALS, SWOT 13
ANALYSIS
2.3 PRODUCT AND SERVICES 15
2.4 SWOT ANALYSIS 16

3 A STUDY OF THE ORGNIZATION DESIGN

3.1 ORGANISATION STRUCTURE 18


3.2 CRITICAL REVIEW OF 19
ORGANISATIONAL
STRUCTURE
3.3 McKiney’s 7’S MODEL 20

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4 A STUDY OF KEY BUSINESS LEVEL FUNCTION
AND PROCESS
4.1 PROJECT MANAGEMENT 25
4.2 LOGISTIC DEPARTMENT 25
4.3 PURCHASE DEPARTMENT 26
4.4 HUMAN RESOURCE DEPARTMENT 27
4.5 FINANCE DEPARTMENT 28

5 FINDINGS AND SUGGESTION


5.1 FINDINGS 30
5.2 SUGGESTIONS 30
6 KEY LEARNINGS
6.1 KEY LEARNINGS 31
7 CONCLUSION 33

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CHAPTER 1

INDUSTRY PROFILE

1.1 INDUSTRY PROFILE

The construction industry is a multifaceted sector encompassing


residential, commercial, infrastructure, and industrial projects. It involves
diverse players like general contractors, subcontractors, architects,
engineers, and material suppliers. Continual trends in technology
adoption, such as BIM and sustainable practices, are reshaping the
landscape, while challenges like skilled labor shortages and regulatory
compliance persist. Economic fluctuations and government spending
significantly impact construction activities, and global influences, such as
urbanization and international opportunities, add layers of complexity.
Companies need to navigate these dynamics, embracing innovation while
balancing the demands for quality, cost-effectiveness, and compliance to
thrive in this ever-evolving field.

Adaptability defines success in the construction industry, where firms must


continually evolve to integrate new technologies, navigate economic
shifts, and meet stringent regulations. Embracing digital tools, automation,
and sustainable practices remains paramount. Challenges like supply
chain disruptions, workforce development, and shifting market demands
require proactive strategies. Firms investing in skilled labor training,
technology integration, and sustainable solutions are better poised to
excel amid the industry's cyclical nature and the demands for innovation
and efficiency.

The construction industry stands as a cornerstone of global infrastructure


development, encompassing a vast array of activities involved in erecting
buildings, infrastructure, and facilities. Characterized by its dynamic
nature, the sector includes residential, commercial, industrial, and civil
construction projects. Key elements within this industry comprise

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planning, design, material procurement, project management, skilled
labor, and adherence to safety and regulatory standards. The sector's
growth is influenced by economic trends, technological advancements,
sustainability initiatives, and government policies. With a significant
impact on economic growth and employment, the construction industry
continually evolves, driven by innovation and the pursuit of efficient,
sustainable, and cost-effective construction methodologies.

1.2 GLOBAL SCENARIO

The global construction industry represents a massive economic driver,


contributing significantly to employment and GDP in various regions
worldwide. It's experiencing a transformative phase driven by
technological advancements, sustainability imperatives, and a push for
infrastructure development. Emerging markets in Asia, particularly China
and India, continue to lead in construction activities, driven by
urbanization, rising populations, and government investments in
infrastructure. In mature markets like North America and Europe, there's
a focus on renovation, infrastructure modernization, and sustainable
construction practices. However, challenges such as skilled labor
shortages, fluctuating material costs, and regulatory complexities persist
across the globe, necessitating innovative solutions and adaptability for
sustained growth.

Global construction firms are increasingly operating in a competitive and


interconnected landscape, tapping into diverse markets and embracing
innovation to stay competitive. Expansion into emerging economies offers
growth opportunities, but it demands navigation through diverse
regulatory environments and cultural differences. Collaboration,
technology integration, and sustainability initiatives are becoming integral
to success, as firms strive to meet the growing demand for infrastructure
while addressing evolving societal and environmental needs on a global
scale.

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1.3 INDIAN SCENARIO
In India, the construction industry is a significant contributor to the
country's economic growth, providing jobs and supporting infrastructure
development across residential, commercial, and infrastructure sectors.
With a rapidly urbanizing population, there's a surge in demand for
housing, commercial spaces, and improved infrastructure, driven by
government initiatives like Smart Cities Mission and affordable housing
schemes. The construction sector has witnessed advancements in
technology adoption, with Building Information Modeling (BIM),
prefabrication, and sustainable practices gaining traction. However,
challenges such as regulatory complexities, land acquisition issues,
skilled labor shortages, and periodic economic fluctuations remain key
hurdles.

Indian construction companies are navigating a dynamic landscape,


embracing digitalization and sustainable construction practices while
managing the complexities of a diverse and evolving market.
Collaboration with global players, innovation in project management, and
investments in skill development are crucial strategies. Additionally, the
industry is witnessing a shift towards green construction and affordable
housing projects, aligning with India's developmental goals and the
increasing focus on environmental sustainability and inclusive growth.

In India, the construction industry stands as a crucial pillar of economic


development, contributing significantly to the country's GDP and
employment generation. The sector spans a broad spectrum, including
residential, commercial, infrastructure, and industrial projects, fueled by
government initiatives like Smart Cities, housing schemes, and massive
infrastructure investments. Indian construction companies, both large
conglomerates and smaller firms, face challenges such as regulatory
complexities, skilled labor shortages, and periodic fluctuations in material
costs. However, they leverage technological advancements and
innovative practices to address these hurdles while aiming to capitalize on
the country's growing urbanization and infrastructure requirements,

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paving the way for sustained growth and development within the
construction sector.

1.4 KEY PLAYERS IN THE INDUSTRY


In India, the construction industry boasts several key players across
various segments. Large conglomerates like Larsen & Toubro (L&T) hold
significant influence, operating in diverse areas from infrastructure to real
estate. Tata Projects, a subsidiary of the Tata Group, is another major
player with expertise in constructing roads, power plants, and urban
infrastructure. Additionally, Shapoorji Pallonji Group, renowned for its
construction of iconic structures, plays a pivotal role, contributing to
residential, commercial, and infrastructure development. Players like DLF
and Oberoi Realty dominate the real estate sector, focusing on high-end
residential and commercial projects. Furthermore, government entities
like National Buildings Construction Corporation (NBCC) and Engineers
India Limited (EIL) play key roles in infrastructure development and
engineering consultancy, collaborating with private firms to execute
various projects nationwide. These players combine expertise,
experience, and extensive portfolios to shape India's construction
landscape across diverse sectors.

The construction industry is vast and diverse, encompassing a range of


key players that contribute to its dynamism. Large multinational
corporations such as Vinci SA, Bechtel Corporation, and Turner
Construction Company hold significant influence due to their capacity to
undertake massive infrastructure projects globally. These companies
often possess extensive resources, diverse expertise, and the ability to
navigate complex regulatory landscapes, allowing them to secure major
contracts for landmark constructions like airports, bridges, and stadiums.

Additionally, there's a robust presence of mid-sized companies


specializing in various construction niches. These players often focus on
specific sectors like residential housing, commercial real estate, or
industrial construction. Companies such as Lennar Corporation in
residential development or Skanska in commercial construction carve out

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their niches by excelling in particular segments, leveraging expertise, and
fostering regional or sector-specific strengths.

The industry boasts a multitude of small and medium-sized enterprises


(SMEs) that contribute significantly to local construction activities. These
SMEs encompass a wide spectrum, including subcontractors, specialty
trade contractors, and suppliers of construction materials and equipment.
Their agility, flexibility, and specialized services often cater to specific
project needs, playing an essential role in the construction ecosystem by
providing crucial services and products to larger construction projects and
filling vital niches within the industry.

1.5 PESTLE ANALYSIS


Political Factors:

Government regulations heavily influence construction projects, covering


building codes, environmental standards, and safety regulations. Political
stability and changes in policies can impact project timelines and
costs.Infrastructure development often relies on government budgets and
policies. Changes in funding allocations or shifts in priorities can
significantly affect the industry's growth.

Construction companies can't escape the realm of politics. They're heavily


influenced by government policies, regulations, and public infrastructure
projects. Political decisions on zoning laws, building codes, and permits
directly impact their operations and project timelines. For instance,
changes in government administrations often bring shifts in infrastructure
priorities, affecting which projects receive funding and support.
Additionally, construction companies often lobby and engage with
policymakers to advocate for policies that can benefit their industry, such
as tax incentives for infrastructure development or favorable regulations
for construction projects.

International construction companies face geopolitical factors. They


navigate complex relationships between countries, trade agreements, and
diplomatic tensions. Political instability, trade tariffs, or sanctions can

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affect the availability of materials, increase project costs, or limit access to
certain markets. Consequently, these companies must continually adapt
their strategies to mitigate risks arising from geopolitical changes while
seeking opportunities in regions with more favorable political climates for
construction projects. Overall, political factors are deeply intertwined with
the operations and success of construction companies, shaping their
strategies and decision-making processes.

Economic Factors:

Construction is sensitive to economic fluctuations. During economic


downturns, projects might be delayed or canceled due to reduced
investments and access to financing. Fluctuating interest rates affect
borrowing costs for construction projects. Availability and cost of financing
impact the feasibility of projects.

The economic landscape significantly impacts construction companies at


various levels. Fluctuations in interest rates play a pivotal role in shaping
the industry. Higher interest rates can deter potential investors from
financing construction projects, leading to a slowdown in the industry.
Conversely, lower rates might encourage borrowing for construction
ventures, spurring growth. Additionally, economic cycles strongly
influence construction demand. During economic downturns, there's often
a reduction in construction projects as spending tightens, whereas during
prosperous times, there's an upsurge in infrastructure and real estate
development.

The cost of materials and labor heavily impacts construction companies.


Changes in prices of raw materials like steel, cement, or lumber can
significantly affect project costs and profit margins. Similarly, fluctuations
in labor availability and wages due to economic conditions or shifts in
immigration policies can impact construction companies' ability to
complete projects on time and within budget. Economic stability, inflation
rates, and consumer confidence all intertwine to shape the economic
context within which construction companies operate, directly impacting
their profitability and growth potential.

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Social Factors:

Population growth, urbanization trends, and shifting demographics


influence the demand for different types of construction projects, such as
residential complexes, commercial spaces, or infrastructure.Increasing
focus on sustainable and environmentally friendly construction practices
due to growing societal awareness of environmental issues.

Social factors deeply influence construction companies, particularly in


terms of societal trends and demographics. Changing demographics,
such as population growth, urbanization, or shifts in age distribution,
significantly impact the types and locations of construction projects. For
instance, an aging population might increase demand for senior living
facilities or healthcare centers, while urbanization could lead to a surge in
commercial and residential construction in city centers. Additionally,
societal preferences and trends, like a growing focus on sustainability and
green building practices, drive changes in construction methods and
materials, influencing company strategies and project designs to align with
societal values.

Social expectations and community impact play a vital role in the success
of construction projects. Construction companies must navigate
community relations, addressing concerns about noise, traffic disruption,
and environmental impact. Stakeholder engagement, public relations, and
adherence to social responsibility principles become crucial to maintaining
a positive reputation and securing community support for projects. Thus,
understanding and adapting to evolving societal norms, preferences, and
local community dynamics are integral for construction companies to
thrive in their operations and project execution.

Technological Factors:

Advancements in Construction Tech:Adoption of technology like Building


Information Modeling (BIM), drones, prefabrication, and 3D printing is
reshaping construction practices, enhancing efficiency and reducing
costs. Automation and Robotics: Integration of automation and robotics in

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certain construction tasks is changing how projects are executed,
impacting labor requirements and project timelines.

Technology is revolutionizing the construction industry at an


unprecedented pace. Advancements like Building Information Modeling
(BIM), drones, and 3D printing have transformed how projects are
planned, designed, and executed. BIM allows for intricate digital models
that enhance collaboration among stakeholders, improve project
visualization, and streamline workflows. Drones have become
instrumental in surveying, monitoring construction sites, and capturing
real-time data, improving efficiency and safety. Additionally, 3D printing is
gradually gaining traction, enabling rapid construction of building
components and even entire structures, potentially revolutionizing the
traditional construction methods.

The integration of smart technologies within buildings has become a


prominent trend. The rise of Internet of Things (IoT) applications, including
sensors and connected devices, enhances building functionality and
efficiency. Smart buildings equipped with energy management systems,
automated controls, and predictive maintenance solutions not only
improve operational performance but also align with sustainability goals.
Embracing these technological innovations not only increases productivity
and efficiency but also allows construction companies to offer more
sustainable, cost-effective, and innovative solutions to meet the evolving
needs of clients and the market.

Legal Factor

Legal factors play a crucial role in shaping the landscape for construction
companies, influencing various aspects of their operations. Firstly,
compliance with local, state, and federal regulations is paramount.
Construction companies must adhere to building codes, safety standards,
and environmental regulations to ensure the legality and sustainability of
their projects. Failure to comply with these regulations can lead to legal
repercussions, fines, and project delays, emphasizing the need for a
robust legal framework within the company.

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Contractual obligations form a critical aspect of the legal landscape for
construction companies. Clear and well-drafted contracts are essential for
outlining project scope, timelines, payment terms, and dispute resolution
mechanisms. Construction firms must navigate complex legal
negotiations with clients, subcontractors, and suppliers to mitigate
potential conflicts and protect their interests. A solid legal foundation in
contract management is vital for ensuring successful project delivery and
maintaining the company's reputation.

The legal landscape for construction companies involves risk


management and liability considerations. Construction projects inherently
carry risks, ranging from workplace accidents to design flaws. Legal
frameworks help establish liability and insurance protocols to safeguard
the company and its stakeholders. Construction firms must implement
stringent safety measures, adhere to workers' rights, and carry adequate
insurance coverage to minimize legal exposure and ensure a smooth
resolution in the event of unforeseen challenges or disputes. In summary,
a comprehensive understanding and adherence to legal factors are
integral for the success and longevity of a construction company.

Environmental Factor

Environmental factors are increasingly critical considerations for


construction companies as the industry grapples with sustainability
challenges and a growing awareness of environmental impact. Firstly, the
construction sector significantly contributes to resource consumption,
energy use, and waste generation. Companies are now under pressure to
adopt environmentally friendly practices, such as using recycled
materials, reducing energy consumption through efficient construction
methods, and implementing waste management strategies. Adhering to
eco-friendly construction practices not only aligns with global sustainability
goals but also enhances the company's reputation and may open doors
to projects that prioritize environmental responsibility.

Regulatory compliance with environmental standards is a key factor for


construction companies. Governments worldwide are implementing

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stricter environmental regulations to address climate change and protect
natural ecosystems. Construction firms must navigate these regulations,
obtaining necessary permits and approvals while incorporating
environmentally sustainable practices into their projects. Failure to comply
with environmental standards can result in legal consequences, fines, and
reputational damage. Hence, staying abreast of and proactively
addressing evolving environmental regulations is crucial for the long-term
success of a construction company.

The adoption of green building practices is becoming a distinguishing


factor in the construction industry. Many clients, including businesses and
government entities, are increasingly prioritizing environmentally friendly
and energy-efficient construction methods. Construction companies that
embrace sustainable building designs, green certifications, and renewable
energy solutions position themselves competitively in the market.
Integrating environmental considerations into construction projects not
only aligns with societal expectations but also positions the company as a
responsible and forward-thinking player in the industry, enhancing its
overall business prospects.

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CHAPTER 2
COMPANY PROFILE
AMMA CONSTRUCTION
2.1 BACKGROUND AND HISTORY
Amma Construction is a infrastructure construction company operating in
Trichy and Namakkal district Tamilnadu. Founded in 2007, the company
has developed a reputation for Government Construction tenders in the
PWD and Highway department.

The Director of AMMA CONSTRUCTION is S. SHANMUGAVEL

2.2 VISION, MISSION, OBJECTIVES AND GOALS

Vision:

To be the leading construction company known for innovation,


sustainability, and unparalleled quality in delivering projects that shape
communities and exceed client expectations.

The vision of a construction company often revolves around becoming a


leader in delivering innovative, sustainable, and high-quality projects while
contributing positively to communities and the environment. Such a vision
entails a commitment to excellence in construction practices, embracing
cutting-edge technology and methodologies to drive efficiency and safety
across all projects. A forward-looking construction company envisions
fostering a culture of collaboration, integrity, and reliability, aiming not only
to meet but exceed client expectations while maintaining a focus on
sustainability and responsible resource utilization.

The vision often encompasses a commitment to social responsibility and


community impact. Construction companies aspire to not just build
structures but to enhance lives by creating spaces that promote well-
being, inclusivity, and functionality. Embracing environmentally friendly
practices, promoting diversity and inclusion within the workforce, and
actively engaging with local communities to ensure projects bring positive,

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lasting benefits are often key components of a construction company's
overarching vision for its role in society.

Mission:

Our mission is to utilize cutting-edge technology, foster a culture of


collaboration, and uphold the highest standards of craftsmanship to
construct sustainable, resilient, and iconic structures. We aim to prioritize
safety, environmental stewardship, and client satisfaction in every project
we undertake.

The mission of a construction company typically revolves around


delivering exceptional construction solutions and services while upholding
the highest standards of quality, safety, and integrity. Such a mission
involves consistently exceeding client expectations, fostering innovation
in project execution, and maintaining a commitment to sustainability and
social responsibility. It also includes nurturing a collaborative and skilled
workforce dedicated to achieving excellence in every aspect of
construction while contributing positively to the communities served.

Goals:

• Quality Excellence:Strive relentlessly to maintain the highest standards of


quality in every aspect of construction, ensuring customer satisfaction and
project durability.
• Innovation and Technology: Embrace and integrate the latest
technological advancements and innovative approaches to improve
efficiency, precision, and sustainability in construction practices.

• Sustainability: Commit to environmentally responsible construction by


implementing sustainable materials, green practices, and reducing the
carbon footprint of our projects.

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• Safety: Prioritize a safety-first culture, ensuring a zero-incident work
environment through comprehensive training, adherence to safety
protocols, and continuous improvement.
• Client Satisfaction:Focus on understanding and exceeding client needs by
delivering projects on time, within budget, and surpassing expectations,
fostering lasting relationships.
• Community Impact:Engage with local communities, contributing positively
through employment opportunities, supporting local initiatives, and
creating infrastructure that enhances lives.

2.3 PRODUCTS AND SERVICES


Construction firms deliver an extensive range of products and services
essential for building modern infrastructure. From erecting residential and
commercial spaces to constructing critical infrastructure like roads,
bridges, and power plants, they cover a wide spectrum. These companies
excel in project management, providing consultation, and specialized
services in various engineering disciplines like civil, mechanical, and
electrical. Their offerings also extend to renovation and maintenance,
ensuring longevity and efficiency in existing structures. Together, these
products and services encompass the comprehensive expertise and
solutions these construction companies provide, meeting the diverse
needs of clients across industries and sectors.

Construction companies offer a wide array of products and services


tailored to meet diverse client needs. Their primary product is the
construction of physical structures, including residential buildings,
commercial spaces, infrastructure like roads and bridges, industrial
facilities, and more. These companies oversee the entire process from
project planning, design, procurement of materials, construction, to final
handover, ensuring quality and adherence to specifications throughout.

In addition to constructing buildings and infrastructure, construction


companies provide various specialized services. These encompass
project management, where they oversee the planning, coordination, and
execution of construction projects, ensuring they stay on schedule and

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within budget. Moreover, they offer design-build services, integrating both
the design and construction phases under one entity, streamlining
communication and potentially reducing costs and time. Renovation and
remodeling services are also commonly provided, allowing clients to
upgrade or repurpose existing structures according to changing needs
and preferences.

Construction companies often provide consultancy services, offering


expertise in areas such as engineering, architecture, and sustainability.
These consultancies assist clients in feasibility studies, cost estimation,
regulatory compliance, and sustainability assessments, providing
valuable insights to optimize project outcomes. Additionally, many
construction firms offer maintenance and facility management services
post-construction, ensuring the longevity and optimal functionality of the
completed structures.

2.4 SWOT ANALYSIS


Strengths

• Employment and training opportunities in the field of construction.


• Private sector housing and commercial building demands of Construction
of the multi building projects on the favourible locations in the country.
• Good structured national transportation network in the country.
• Low cost well-educated and skilled labour force is now widely available
across the country.
• Sufficient availability of raw material and natural resources in the country.

Weakness

• Distance between construction projects reduces business efficiency.


• High cost in incurred in large labour force
• Lack of clearly defined processes and procedures for construction and its
management.
• Huge amount of money needs to be invested in this industry

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Opportunities

• Continuous private sector housing increase will create more construction


opportunities.
• Public sector projects through Public Private Partnerships will bring
further opportunities.
• Financial supports like loan and insurance and growth in income of people
is in support of construction industry.
• Government policies inviting foregin compnies in India like - 'Make In India'
and 'FDI will increase demand for factories and plants.GR
• Growth in educational and research sector will increase the demand of
universites, schools and intitutions

Threats

• Long term market instability and uncertainty may damage the


opportunities and prevent the expansion of training and development
facilities.
• Current economic situation may have an adverse impact on construction
industry. o Political and security conditions in the region and Late
legislative enforcement measures are always threats to any industry in
India
• Infrastructure safety is a challenging task in construction industry.
• Lack of political willingness and support on promoting new strategies.
• Natural abnormal casualties such as earth quake and floods are uncertain
and can prevent the construction boom.
• Competitors are emerging in the industry very frequently.

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CHAPTER 3
STUDY OF ORGANISATION DESIGN

3.1 ORGANISATION STRUCTURE

Organizational structure is a system used to define a hierarchy within an


organization. It identifies each job, its function and where it reports to
within the organization. This structure is developed to establish how an
organization operates and assists an organization in obtaining its goals to
allow for future growth. The structure is illustrated using an organizational
chart.

The executive level, the organizational structure typically branches into


functional areas such as project management, engineering, operations,
finance, and human resources. Project managers play a crucial role,
overseeing specific construction projects from initiation to completion,
coordinating resources, and ensuring that projects are delivered on time
and within budget. The engineering department focuses on the technical
aspects of construction, including design, structural analysis, and quality
control. The operations department manages day-to-day activities,
including procurement, logistics, and site management. The finance and
human resources departments handle financial matters and personnel
management, respectively.

At the project level, teams are often organized with project managers, site
engineers, supervisors, and various skilled laborers. This hierarchical
structure facilitates clear communication, efficient decision-making, and
effective coordination, ensuring the successful execution of construction
projects. The construction company's organizational structure is designed
to optimize workflow, maintain accountability, and achieve the company's
strategic objectives in a dynamic and challenging industry.

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ORGANISATION STRUCTURE

CHAIRMAN

MD

PROJECT
GM
MANAGER

FINANCE

LOGISTIC

HR

Chart no 1(organisation chart)


It identifies each job, its function and where it reports to within the
organization. This structure is developed to establish how an organization
operates and assists an organization in obtaining its goals to allow for
future growth. The structure is illustrated using an organizational chart.

3.2 CRITICAL REVIEW OF ORGANISATIONAL


STRUCTURE
AMMA CONSTRUCTION is following a typical hierarchy based structural
approach. The most powerful being the, managing director leads the
company and who in control the manager and all other department . these
managers further lead the other employees in the company who are in
their respective position as mentioned in the flow chart.

The organizational structure within construction companies often faces


specific scrutiny due to the industry's unique demands and complexities.
One critical aspect lies in the balance between centralization and
decentralization within these structures. Construction projects require

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both centralized oversight for strategic planning and decentralized
decision-making to manage various project aspects effectively. Too much
centralization might hinder quick decision-making at project sites, leading
to delays or inefficiencies. Conversely, excessive decentralization might
result in inconsistent quality across projects due to variations in decision-
making processes. Finding the optimal balance is crucial for ensuring
efficient project management while maintaining high standards across
construction sites.

Another critical factor in the organizational structure of construction


companies is the alignment of roles and responsibilities. Given the
multifaceted nature of construction projects involving numerous
stakeholders—architects, engineers, subcontractors, and suppliers—
clear delineation of roles is essential. Issues may arise when there's
ambiguity or overlap in responsibilities, leading to conflicts, delays, or
even compromise in the quality of work. A well-defined structure that
clearly outlines roles, responsibilities, and communication channels can
mitigate these challenges, fostering smoother collaboration among project
teams.

The hierarchical nature of many construction firms might pose challenges


in fostering innovation and adaptability. Traditional top-down structures
can stifle creativity and innovative ideas from frontline workers or junior
staff who might have valuable insights. Encouraging a culture that
promotes idea-sharing, feedback, and a more flattened organizational
structure can facilitate innovation and problem-solving. Embracing
technology to streamline communication and project management
processes can also help bridge hierarchical gaps and foster a more agile
and innovative work environment within construction companies.

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3.3 Mc KINSEY’s 7S MODEL
The McKinsey 7-S Model is a change framework based on a company’s
organizational design. It aims to depict how change leaders can
effectively manage organizational change by strategizing around the
interactions of seven key elements: structure, strategy, system, shared
values, skill, style, and staff.

The model highlights that there exists a domino effect when any one
element is transformed to restore effective balance. The central placement
of shared values emphasizes that a strong change culture impacts all the
other elements to drive change.
Some approaches look at internal factors, others look at external factors
some combine these two perspective and other looks for congruence
between various aspects of the organization being studied.

The McKinsey 7S framework applied to a construction company involves


aligning seven key elements to ensure organizational effectiveness and
success. The strategy element encompasses the company's approach to
project selection and overall business goals, while structure involves the
organizational hierarchy and reporting lines. Systems refer to the
processes and procedures governing project management and
construction operations. Shared values represent the company's core
beliefs and culture, influencing decision-making and behavior. Style
reflects leadership styles within the organization, while staff considers the
skills and capabilities of the workforce. Lastly, skills involve the specific
competencies and expertise needed for successful construction project
delivery. By harmonizing these elements, a construction company can
achieve a well-integrated and cohesive organizational structure,
enhancing its ability to navigate challenges and thrive in the competitive
construction industry.

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1. Strategy:
The company's current strategy focuses on market expansion in urban
development projects, leveraging sustainable construction practices to
align with changing market demands.
The strategy aligns with industry trends, emphasizing sustainability and
growth. Recommendations might involve further diversification strategies
or enhancing digital capabilities to gain a competitive edge.
A successful construction company's strategy typically revolves around a
combination of effective project management, skilled workforce, and
prudent financial management. Firstly, meticulous planning and project
execution are critical aspects. This involves thorough feasibility studies,
accurate cost estimations, and efficient scheduling to ensure projects are
completed on time and within budget. Secondly, fostering a highly skilled
and motivated workforce is essential. This includes hiring experienced
professionals, providing continuous training, and prioritizing safety
protocols to maintain a productive and secure working environment.
Additionally, a construction company's strategic focus often includes
cultivating strong relationships with suppliers, subcontractors, and clients
to ensure a streamlined supply chain and consistent project delivery.
Lastly, embracing technological advancements, sustainable practices,
and innovation can position a construction company competitively in the
industry, enhancing its overall strategic approach.

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2. Structure:
The organizational structure is hierarchical, with clear reporting lines.
Departments are segmented by project types (residential, commercial,
infrastructure), allowing for specialized expertise.
While the structure supports specialization, there might be opportunities
to promote more cross-functional collaboration or agile structures to foster
innovation and quicker decision-making.
The structure of a construction company typically encompasses several
key departments and roles, each contributing to the overall success of the
organization. At the top of the hierarchy is the executive leadership,
consisting of the CEO or President, who oversees the company's strategic
direction and major decision-making. Reporting to the top leadership,
various divisions manage distinct aspects of the business, such as project
management, operations, finance, human resources, and business
development. Project managers are crucial, responsible for the planning,
coordination, and successful execution of construction projects.
Engineers, architects, and skilled labor form the core operational team,
ensuring that construction projects meet quality standards and are
completed efficiently. Additionally, support functions like procurement,
safety, and legal teams play essential roles in ensuring regulatory
compliance, risk mitigation, and seamless project delivery.

Within this organizational structure, communication and collaboration


between departments are vital for the smooth functioning of the
construction company. Cross-functional teams and a well-defined chain of
command contribute to effective decision-making, resource allocation,
and overall project success. The structure evolves based on the
company's size, specialization, and the scope of projects undertaken, but
the core principles of accountability, collaboration, and efficiency remain
central to a successful construction company.

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3. Systems:
Project management systems are well-established, utilizing industry-
standard software for scheduling, cost estimation, and resource
allocation. However, there might be gaps in integrating these systems for
seamless communication across departments.
Streamlining and integrating systems further could enhance efficiency and
reduce delays across projects. Recommendations might involve adopting
unified project management platforms or enhancing communication
protocols.

The system of a construction company involves the coordinated


integration of various processes and workflows to ensure efficient project
delivery. Project initiation typically includes feasibility studies, client
engagement, and initial design phases. Subsequently, project planning
encompasses detailed scheduling, resource allocation, and risk
management. During the execution phase, construction teams work
collaboratively to bring plans to fruition, with regular monitoring and
adjustments to maintain quality and timelines. Quality control measures,
safety protocols, and adherence to regulatory requirements are
embedded in the construction system to mitigate risks. Financial
management, including budget tracking and cost control, is another critical
component. Finally, the project closes with thorough inspection, client
handover, and documentation for future reference. A well-structured
construction system incorporates technology, such as project
management software and Building Information Modeling (BIM), to
enhance efficiency and communication across all phases of a project.
Continuous improvement and learning from each project contribute to the
refinement of the company's system for future endeavors.

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4. Style:
The leadership style is traditional, emphasizing a top-down approach.
Decision-making primarily resides with senior management, with limited
input from lower-level employees.
Shifting towards a more participatory leadership style could foster
innovation and engagement among employees. Encouraging bottom-up
suggestions and fostering a culture of continuous improvement might be
recommended.
The style of a construction company, as per the McKinsey 7S model,
involves a strategic alignment of key organizational elements. Starting
with Strategy, the construction company's approach is focused on a
market-driven strategy, emphasizing client needs, project feasibility, and
sustainable growth. Structure reflects a well-defined organizational
hierarchy with clear lines of authority, ensuring efficient project
management and execution. Systems incorporate advanced project
management tools and technologies to streamline workflows, enhance
communication, and promote data-driven decision-making. Shared
Values are centered around a commitment to quality, safety, and client
satisfaction, forming the core principles that guide the company's
operations. Skills are developed and honed through ongoing training,
ensuring a highly skilled and adaptable workforce capable of meeting
diverse project requirements. Staff embody a collaborative and client-
focused mindset, contributing to the overall success of the organization.
Finally, Style embraces an open and innovative culture, encouraging
continuous improvement and the adoption of cutting-edge construction
techniques and technologies. The combination of these elements ensures
a construction company's competitive advantage and sustainable growth
in the dynamic construction industry.

25
5. Staff:
The company has a skilled workforce with expertise in various
construction domains. However, there might be gaps in training programs
for emerging technologies and sustainable construction practices.
Investing in training programs to upskill employees in areas like BIM,
green construction techniques, and digital technologies could enhance the
company's competitive advantage and adaptability.In the context of the
McKinsey 7S model, the staff component of a construction company is
critical to its success. Skills are paramount, with a focus on cultivating a
workforce equipped with the technical expertise and knowledge required
for diverse construction projects. Continuous training and development
programs ensure that staff members stay abreast of industry
advancements and emerging technologies. Additionally, a collaborative
mindset is essential, fostering effective communication and teamwork
across various functions within the organization. The staff embodies the
shared values of the company, aligning with a commitment to quality,
safety, and client satisfaction. In a construction company, the staff's
capabilities, adaptability, and commitment to excellence contribute
significantly to the overall effectiveness and competitiveness of the
organization.
The staff of a construction company plays a pivotal role in its success,
embodying a diverse set of skills and expertise crucial for effective project
execution. Comprising professionals such as engineers, architects,
project managers, and skilled labor, the staff is equipped with technical
proficiency, project management capabilities, and a commitment to safety
and quality. A collaborative mindset, effective communication, and
adaptability are key traits, ensuring cohesive teamwork and the ability to
navigate the dynamic challenges inherent in the construction industry. The
staff's collective skills and shared values contribute significantly to the
company's ability to deliver projects efficiently and meet client
expectations.

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6. Skills:
While the company excels in traditional construction methodologies,
there's a need to develop skills in emerging areas such as data analytics
for project optimization and sustainability consulting.Developing these
additional skills could position the company as an industry leader in
innovative construction practices. Recommendations might include
partnerships with tech firms or investing in specialized training.In the
McKinsey 7S model applied to a construction company, the Skills
dimension is pivotal for achieving organizational success. The company
needs to prioritize a diverse set of technical competencies, including
engineering expertise, project management proficiency, and a
comprehensive understanding of construction methodologies. Skills also
extend to the effective use of advanced technologies and tools, such as
Building Information Modeling (BIM) and project management software,
ensuring efficiency and precision in project execution. Additionally,
interpersonal skills and effective communication are crucial, fostering
collaboration among project teams, clients, and stakeholders. A
construction company's ability to continuously develop and enhance the
skills of its workforce is integral to staying competitive in the dynamic and
evolving construction industry. Through ongoing training and upskilling
initiatives, the company ensures that its staff remains adept at handling
diverse projects and adapting to industry advancements.
The skills within a construction company encompass a diverse range of
technical proficiencies essential for successful project execution.
Engineers, architects, and project managers contribute expertise in areas
such as structural design, construction methodologies, and efficient
project management. Additionally, skills in utilizing advanced technologies
such as Building Information Modeling (BIM) and project management
software are crucial for enhancing productivity and precision. The
workforce's collective capabilities, including problem-solving, adaptability,
and effective communication, are integral to navigating the complexities
of construction projects and ensuring the company's competitiveness in
the industry

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7. Shared Values:
The company values quality, safety, and client satisfaction. However,
there might be room to strengthen a commitment to sustainability and
community engagement. Aligning the company's values more explicitly
with sustainability initiatives and community involvement could enhance
reputation and market positioning. Recommendations might involve
establishing CSR programs or implementing green construction
guidelines.
In the context of the McKinsey 7S model, the Shared Values of a
construction company represent the fundamental beliefs and guiding
principles that underpin its organizational culture. These values are
centered around a commitment to excellence, safety, and client
satisfaction. The construction company places a high premium on
delivering projects of exceptional quality, adhering to stringent safety
standards, and ensuring client needs and expectations are not only met
but exceeded. Shared Values also emphasize a dedication to
sustainability and ethical business practices, contributing to the
company's reputation and long-term success. By instilling a culture that
prioritizes these core values, the construction company establishes a
foundation that shapes decision-making, behavior, and the overall ethos
of the organization. This alignment with shared values is essential for
fostering unity, coherence, and a sense of purpose among the company's
employees and stakeholders.
The shared values of a construction company revolve around a
commitment to excellence, safety, and client satisfaction. Emphasizing a
dedication to delivering projects of exceptional quality, adhering to
stringent safety standards, and surpassing client expectations, these
values serve as the guiding principles that shape the company's culture.
Sustainability and ethical business practices further characterize the
shared values, contributing to the company's reputation and long-term
success. This alignment creates a cohesive organizational ethos,
fostering unity among employees and stakeholders while reinforcing the
company's commitment to responsible and high-quality construction
practices.
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CHAPTER 4
A STUDY OF KEY BUSINESS LEVEL FUNCTIONS AND
PROCESSES
4.1 PROJECT MANAGEMENT
Responsible for overseeing the entire project, coordinating between
different departments, managing timelines, budgets, and ensuring
adherence to quality standards and regulations. Focuses on preparing
cost estimates for materials, labor, and other expenses, as well as
submitting bids for potential projects. In charge of the technical aspects,
including architectural and engineering design, drafting plans, and
ensuring compliance with building codes and regulations.Project
management in a construction company is the nerve center that
orchestrates the intricate dance of timelines, resources, and stakeholders
to bring a vision to life. Tasked with overseeing every facet from inception
to completion, project managers meticulously plan, organize, and execute
each phase. They navigate complexities, allocating budgets, coordinating
various teams, managing risks, and ensuring adherence to stringent
quality and safety standards. With a keen eye on deadlines and an innate
ability to adapt to unforeseen challenges, project managers drive
efficiency, foster collaboration, and ultimately deliver successful
construction projects that meet client expectations while balancing the
constraints of time, cost, and quality.

Effective project management in construction involves meticulous


planning, coordination, and execution to ensure the successful delivery of
projects. Project managers oversee various aspects, including budgeting,
scheduling, resource allocation, and risk management. They play a crucial
role in fostering collaboration among diverse teams, monitoring progress,
and implementing adjustments to meet project milestones. project
managers prioritize adherence to safety regulations, quality standards,
and client specifications. Successful project management in construction
requires a combination of technical expertise, leadership skills.

29
construction projects are completed on time, within budget, and to the
satisfaction of clients and stakeholders

4.2 Logistics Department

In a construction company, the logistics department plays a pivotal role in


orchestrating the complex web of resources, materials, and equipment
needed for successful project execution. Tasked with managing the flow
of goods and services, this department meticulously plans and
coordinates the transportation, storage, and distribution of materials to
construction sites. From procuring raw materials like steel, concrete, and
timber to arranging for heavy machinery and tools, the logistics team
ensures that everything arrives at the right place and time, optimizing
efficiency while minimizing delays and costs. They navigate intricate
supply chains, negotiate with suppliers, and devise strategies to
streamline operations, all while adhering to strict timelines and budgetary
constraints. Their expertise lies in synchronizing these logistical
movements to support seamless construction activities, ultimately
contributing significantly to project timelines and overall success.

Efficiency and precision are the bedrock of the logistics department within
a construction company. Their meticulous planning and execution not only
ensure timely delivery of materials but also contribute significantly to cost
savings and project effectiveness. By optimizing transportation routes,
managing inventory levels, and coordinating closely with suppliers and on-
site teams, this department minimizes downtime, reduces waste, and
maintains a steady supply chain. Their role extends beyond mere
transportation logistics, encompassing inventory management,
warehousing, and even innovative solutions like lean practices or
technology integration to enhance overall project performance. With an
eye on both the immediate needs of ongoing projects and the long-term
objectives of the company, the logistics department stands as a linchpin
in the successful delivery of construction endeavors.

30
4.3 Purchase Department

The purchase department is the strategic engine responsible for procuring


the essential materials, equipment, and services vital for project
execution. Tasked with sourcing, negotiating, and acquiring supplies, this
department meticulously assesses the market, identifies reliable vendors,
and secures cost-effective yet high-quality materials. They leverage their
expertise to build robust supplier relationships, ensuring timely deliveries
while maintaining stringent quality standards. Additionally, the purchase
department collaborates closely with other divisions to align procurement
with project timelines, budget constraints, and specific requirements,
playing a pivotal role in optimizing construction operations and
contributing significantly to the company's overall efficiency and cost-
effectiveness

Efficiency and foresight are the pillars of the purchase department in a


construction company. Beyond mere acquisition, they strategize to
forecast future needs, manage inventory levels, and often innovate by
exploring new suppliers or negotiating favorable contracts. Their
meticulous planning mitigates supply chain risks, prevents delays, and
ensures seamless workflow on construction sites. Moreover, their focus
on cost-effective yet reliable sourcing directly impacts the company's
bottom line, maximizing value while maintaining the quality standards
essential for successful project outcomes.

The purchase department in construction is a pivotal component


responsible for managing procurement processes and supply chain
activities. Tasked with sourcing materials, equipment, and services at
competitive prices while maintaining quality standards, the department
collaborates with suppliers and negotiates contracts to optimize cost-
efficiency. it plays a crucial role in inventory management, ensuring timely
availability of necessary resources for ongoing projects. Relationships

31
with vendors and staying informed about market trends and innovations
in construction materials and technologies.

4.4 Human Resource Department

In a construction company, the human resources (HR) department serves


as the cornerstone for fostering a skilled, safe, and motivated workforce
essential for successful project delivery. Tasked with recruitment, training,
and development, HR professionals identify and onboard top talent while
ensuring compliance with industry regulations and safety standards. They
spearhead training programs that equip workers with the necessary skills
and certifications, crucial for handling specialized equipment and adhering
to stringent safety protocols on construction sites. Moreover, the HR
department is instrumental in fostering a positive work culture, managing
employee relations, and providing support, which bolsters morale and
productivity among construction teams, contributing significantly to project
success.The HR department's role extends beyond recruitment and
training; it plays a pivotal role in ensuring a safe and compliant work
environment. They enforce adherence to occupational health and safety
regulations, conduct regular safety briefings, and implement protocols that
mitigate risks on construction sites. Additionally, HR professionals serve
as liaisons between management and employees, addressing concerns,
facilitating communication, and implementing policies that prioritize
worker well-being. Their focus on talent acquisition, development, and
retention not only ensures a skilled workforce but also cultivates an
environment where employees feel valued and supported, ultimately
enhancing the company's reputation and efficiency within the construction
industry.

The Human Resource department in a construction company plays a vital


role in managing personnel and fostering a productive work environment.
Responsible for recruitment, training, and development of a skilled
workforce, the HR department ensures the company has the necessary
talent to execute projects efficiently. It oversees compliance with safety

32
regulations, implements employee wellness programs, and addresses
any labor-related issues.

4.5 Finance Department

The finance department serves as the bedrock of financial stability,


overseeing budgeting, accounting, and financial management crucial for
project success. Tasked with managing budgets, forecasting expenses,
and tracking expenditures, finance professionals ensure that projects
remain financially viable and on track. They meticulously analyze costs
related to labor, materials, and equipment, providing invaluable insights
that guide decision-making and enable effective resource allocation.
Moreover, the finance department collaborates with project managers to
monitor project financial performance, identifying potential cost-saving
opportunities and ensuring adherence to financial regulations and
reporting standards.

Efficiency and precision are paramount in the finance department of a


construction company. Beyond managing budgets, they handle invoicing,
payables, and receivables, maintaining cash flow essential for project
continuity. Their role in risk management involves assessing financial
risks, implementing strategies to mitigate them, and ensuring compliance
with tax laws and financial regulations. Additionally, finance professionals
often engage in strategic planning, evaluating investment opportunities,
and advising on the financial feasibility of new projects. Their insights into
the financial health of the company play a critical role in driving profitability
and sustainable growth within the construction industry.

The finance department plays a critical role in the operations of a


construction company by managing and controlling the financial aspects
of the business. Its primary purpose is to ensure the company's fiscal
health and sustainability. The finance department in a construction
company is responsible for a range of key functions.

33
Risk management is another vital role of the finance department.
Construction projects often involve various risks, such as cost overruns,
delays, and unforeseen challenges. The finance team assesses and
mitigates these risks by implementing financial controls, monitoring
project performance, and developing contingency plans.

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CHAPTER 5
FINDINGS AND SUGGESTIONS

5.1 FINDINGS

• Amma Construction satisfy their customers and always ready for any kind
of help to the customers.
• Customer is their first priority
• Safety is given to their employees and it is their main preference
• The company is huge and designed in such a way that easily move from
one department to another department
• Well trained and skilled employee to match the company and their
requirement.
• Has well trained employee to attend the customer and provide the
necessary information to them.
• Clearly defined hierarchy with identifiable departments.
• Clear reporting lines contribute to efficient decision-making.
• Emphasis on scheduling, resource allocation, and risk management.
• Continuous monitoring and adjustments ensure project success.
• Purchase department effectively sources materials and negotiates
contracts.
• Procurement strategies optimize costs and ensure timely resource
availability.
• Inventory management practices contribute to project timelines.
• HR department oversees recruitment, training, and safety compliance.
• Positive work environment fostered through employee wellness programs.
• Emphasis on workforce skill development and overall employee
satisfaction.
• Regular safety training and awareness program

35
5.2 SUGGESTIONS
• Invest in software to streamline workflows, improve communication, and
track project progress more efficiently.
• Strengthen relationships with reliable suppliers by negotiating long-term
contracts and exploring partnerships that offer better pricing
• Explore diversification into new markets or sectors within construction,
such as renewable energy projects, infrastructure development
• They should Focus on Sustainability in construction practices by using
eco-friendly materials, adopting energy-efficient designs.
• They should Reduce waste by using limited items
• Explore opportunities for further integration of advanced technologies like
artificial intelligence and automation to enhance project efficiency.
• Consider investing in the latest project management tools for real-time
collaboration and data-driven decision-making.
• Expand training programs to ensure continuous skill development,
especially in emerging construction technologies.
• Implement mentorship programs to facilitate knowledge transfer and
professional growth within the workforce.
• Strengthen client engagement strategies by incorporating regular
feedback sessions to understand client expectations.
• Regularly review and update contingency plans to adapt to changing
project dynamics and external factors.
• Explore partnerships with key suppliers to negotiate favorable contracts
and ensure a stable supply chain.
• Implement digital tools for real-time tracking of material deliveries and
inventory management to minimize delays.
• Strengthen safety protocols by introducing regular safety drills and training
sessions.
• Consider incentivizing and recognizing safety-conscious behavior to
reinforce a culture of workplace safety.
• Conduct a comprehensive financial analysis to identify areas for cost
optimization and increased profitability.

36
CHAPTER 6
KEY LEARNINGS

6.1 KEY LEARNINGS


My Organisation Study at Amma Construction gave an insight and
opportunity to learn how the organisation is works efficiently and how the
industry working.

• Effective project management


• Adaptability and flexibility
• Safety priority
• Client Relationship
• Skilled Employee

It also gave me an opportunity to gain valuable experience that would


allow me to expand my career option. These key learnings have not
only expanded my understanding of the construction industry but have
also equipped me with practical knowledge and skills crucial for a
successful career.

In a construction company offered invaluable insights into the multifaceted


realm of the construction industry. Through hands-on experiences and
exposure to various projects, key learnings included a comprehensive
understanding of project management intricacies, encompassing
planning, execution, and risk mitigation. This involved acquiring skills in
budgeting, resource allocation, and scheduling while emphasizing the
critical importance of adherence to safety protocols and regulations to
maintain a secure work environment. Additionally, the internship fostered
a deep appreciation for collaborative teamwork, effective communication
among diverse stakeholders, and the significance of accurate
documentation in project progression and compliance records.

37
the illuminated the technical facets of construction, providing exposure to
diverse construction methodologies, materials, and equipment usage.
Encountering and solving real-time challenges emphasized problem-
solving skills while also underscoring the need for adaptability to the
dynamic nature of the construction landscape. Furthermore, the
experience underscored the ethical responsibility of construction
practices, emphasizing considerations regarding environmental impact,
sustainability, and compliance with legal regulations and codes. Overall,
the internship was a holistic learning journey, nurturing not only technical
competencies but also soft skills crucial for success in the construction
domain.

38
CHAPTER 7

CONCLUSION

My OS experience at Amma construction has been a transformative


journey that provided invaluable insights into the multifaceted world of
construction. The exposure to various departments, from project
management to Logistic, emphasized the critical role each plays in the
seamless functioning of the company.

I learned the significance of effective project management, adaptability in


dynamic work environments, and the paramount importance of safety and
quality in construction practices. Embracing technology,client
relationships, and prioritizing sustainable construction emerged as pivotal
pillars for industry success.

In conclusion, my OS experience at the construction company has been


a valuable and insightful journey into the intricacies of the construction
industry. Over the course of this,I have had the opportunity to witness
firsthand the multifaceted challenges and dynamic processes that define
the construction sector. From project planning and execution to navigating
legal and environmental considerations, I have gained a comprehensive
understanding of the various factors that contribute to the success of a
construction company.

The exposure to real-world projects, collaboration with skilled


professionals, and engagement with diverse stakeholders has not only
enriched my technical knowledge but has also honed my problem-solving
and communication skills. I have witnessed the importance of adhering to
legal regulations, ensuring environmental sustainability, and maintaining
a commitment to high-quality construction standards.

39
This OS has provided me with a practical and holistic view of the
construction industry, emphasizing the significance of effective project
management, client communication, and a proactive approach to
addressing challenges. As I move forward in my academic and
professional journey, the lessons learned during this internship will
undoubtedly serve as a solid foundation for my future endeavors in the
construction and related fields. I express my gratitude to the entire team
at the construction company for their guidance, mentorship, and the
invaluable experience gained during this internship.

40
BIBLIOGRAPHY AND REFERENCES

https://tikshare.com/amma-traders-9288498

https://local.infobel.in/IN134057706/amma_traders-
namakkal.html

https://www.indiamart.com/sk-marketing-building-
materials/

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