Construction Management

Chapter 10
Personnel Management
10.1 Management principles: Administration and Organization principles

10.2 Centralization and Decentralization.

Submitted By:
Submitted To:
Samundra Poudel [PAS076BCE105]
Sandip Duwadi
Saroj Dhungana [PAS076BCE117]
Assistant Lecturer
Subash Shrestha [PAS076BCE129]
Paschimanchal Campus
Uday Jimba [PAS076BCE141]
Construction Management Slide 1

Personnel Management
Personnel Management in construction refers to the systematic planning,
organizing, and overseeing of the workforce involved in construction projects.
Personnel Management plays a pivotal role in ensuring the success, efficiency, and safety of
construction projects.
Construction Management Slide 2

Role of Personnel Management in construction include:

• Recruitment and Selection: Identifies and hires skilled professionals to form a
capable project team.
• Training and Development: Ensures ongoing skill enhancement through training
programs, keeping the team updated on industry practices.
• Performance Appraisal: Evaluates individual and team performance for continuous
improvement and recognition.
• Compensation and Benefits: Establishes competitive compensation packages and
manages benefits to attract and retain skilled workers.
• Safety and Compliance: Enforces safety measures and ensures compliance with
regulations for a secure work environment.
• Team Collaboration: Fosters effective communication and collaboration among
project participants for efficient teamwork.
• Resource Allocation: Optimizes resource distribution to meet project deadlines within
budget constraints.
Construction Management Slide 3

Personnel Management
10.1 Management principles:
Administration and Organization principles
10.2 Centralization and Decentralization.
Construction Management Personnel Management Slide 4

Management principles:

The foundational guidelines and concepts that guide the decision-making and
actions of individuals in leadership positions.
Essential for achieving organizational goals, optimizing resources, and ensuring
effective coordination among various components.
Construction Management Personnel Management Slide 5

Management principles:
There are four basic management principles or management function.

1. Planning: Planning involves choosing tasks that must be performed to attain

organizational goals, outlining how the tasks must be performed, and indicating
when they should be performed. Managers outline exactly what organizations
should do to be successful.

2. Organizing: Organizing can be thought of as assigning the tasks developed in

the planning stages, to various individuals or groups within the organization.
Organizing is to create a mechanism to put plans into action.
Construction Management Personnel Management Slide 6

Management principles:

3. Influencing: Influencing is referred to as motivating, leading or directing.

Influencing can be defined as guiding the activities of organization members in
the direction that helps the organization move towards the fulfillment of the
goals. The purpose of influencing is to increase productivity.

4. Controlling: In controlling, information is gathered that measures present

performance and compared to pre-established performance norms. The next
action plan and modifications is determined for meeting the desired performance
parameters. Controlling is an ongoing process
 Management
Construction Management Personnel Management principles: Slide 7

Administration principles Organization

principles:

1. Coordination and Control:

• Involves harmonizing the efforts of different teams and departments to
ensure that they work together towards common project objectives.

• Control mechanisms might include regular project meetings, progress

reports, and the use of project management software to monitor timelines
and budgets.

2. Strategic Planning:

3. Decision-Making:
 Management
Construction Management Personnel Management principles: Slide 8

Administration principles Organization principles:

1. Coordination and Control:

2. Strategic Planning:
• Focuses on defining the project's vision and establishing long-term goals.

• Includes the allocation of resources, assessment of risks, and formulation of

strategies to address challenges that may arise during the project lifecycle.

3. Decision-Making:
 Management
Construction Management Personnel Management principles: Slide 9

Administration principles Organization

principles:

1. Coordination and Control:

2. Strategic Planning:
3. Decision-Making:

• Involves the process of evaluating various options, considering risks and

benefits, and making high-level decisions that impact the overall direction of
the project.

• A high-level decision in construction administration could be the selection of a

construction method. The decision between traditional construction and
modular construction, for instance.
 Management
Construction Management Personnel Management principles: Slide 10

Organization principles: Administration principles

Organization
A systematic framework by which a group of people communicates,
develop goals and work on achieving the goals is termed as organization.

Types of Organization:
• Line organization
• Line and shaft organization
• Functional organization
• Project organization
• Matrix organization
 Management
Construction Management Personnel Management principles: Slide 11

Organization principles: Administration principles

Types of Organization:
• Line Organization:
Straightforward structure where authority flows in a single line from top to bottom. Like a traditional family,
where parents make decisions and children follow.
• Line and Staff Organization:
Combines line structure with specialized staff roles for support and advice. A company with managers (line) and
specialists (staff) like HR or IT.
• Functional Organization:
Organized by functions or departments, each handling a specific aspect of the business. A school with separate
departments for teaching, administration, and maintenance.
• Project Organization:
Teams are created for specific projects and dissolve when the project is complete. A construction company
forming a team for building a new bridge.
• Matrix Organization:
Combines elements of both functional and project structures, individuals report to both functional managers and
project managers. An employee working on a project but also reporting to a department head.
 Management
Construction Management Personnel Management principles: Slide 12

Organization principles: Administration

principles

1. Structure and Design:

• Encompasses the definition of roles, responsibilities, and reporting
relationships within the project team.

• Aims to establish a clear and logical organizational structure that facilitates

effective communication and collaboration.

• In a construction project, this might include having a project manager

overseeing the entire project, with specialized teams for design,
procurement, and construction.
2. Hierarchy:
3. Team Dynamics:
 Management
Construction Management Personnel Management principles: Slide 13

Organization principles: Administration principles

1. Structure and Design:

2. Hierarchy:
• Defines the chain of command within the project, indicating levels of
authority and responsibility.

• Helps streamline decision-making processes and ensures that decisions are

made by individuals with the appropriate level of authority.

• For instance, in a construction project, the project manager may be at the top
of the hierarchy, followed by discipline-specific managers (architectural,
structural, etc.), and then team members.
3. Team Dynamics:
 Management
Construction Management Personnel Management principles: Slide 14

Organization principles: Administration principles

1. Structure and Design:

2. Hierarchy:
3. Team Dynamics:
• Focuses on understanding how individuals within the project team interact,
collaborate, and contribute to project success.

• Recognizes and leverages the strengths and weaknesses of team members to

optimize overall team performance.

• For instance, recognizing that architects and structural engineers need to

closely collaborate during the design phase to ensure structural integrity and
aesthetic alignment
Construction Management Slide 15

Personnel Management
10.1 Management principles:
Administration and Organization principles
10.2 Centralization and Decentralization.
Construction Management Personnel Management Centralization and Decentralization. Slide 16

Centralization
Centralization refers to the concentration of decision-making authority
at the top levels of an organization.

Decentralization
Decentralization involves distributing decision-making authority across
various levels of an organization.
Construction Management Personnel Management Centralization and Decentralization. Slide 17

Side by side comparison

Aspect Centralization Decentralization

Concentrated at the top levels of Distributed across various levels

Decision-Making
the organization and departments

Speed of Decision-Making Potentially slower due to Potentially faster, as decisions can

hierarchy and approval processes be made locally

Local Autonomy Limited autonomy at lower levels High autonomy at lower levels

May be slower to adapt to More adaptable to changes and

Adaptability
changes local conditions
Construction Management Personnel Management Centralization and Decentralization. Slide 18

Aspect Centralization Decentralization

Limited empowerment for lower- Empowers employees with a sense

Employee Empowerment
level employees of ownership

Centralized risk management and Risk spread across various levels and
Risk Management
mitigation strategies departments

Centralized control over resource

Resource Allocation Local control over resource allocation
allocation

More fluid and direct communication

Communication Flow Hierarchical communication flow
pathways
Construction Management Personnel Management Centralization and Decentralization. Slide 19

Aspect Centralization Decentralization

Centralized approach to stakeholder Local teams engage directly with

Stakeholder Engagement
engagement stakeholders

Limited opportunities for leadership Opportunities for leadership

Leadership Development
development development at lower levels

May be less responsive to local client Can respond more effectively to local
Client Responsiveness
needs client needs

Promotes consistency in decision- Decisions may vary based on local

Decision Consistency
making conditions
Construction Management Personnel Management Centralization and Decentralization. Slide 20

Centralization:
Advantages:
• Consistency
• Cost Efficiency
• Control and Coordination
• Crisis management
• Specialization

Disadvantages:
• Rigidity
• Bureaucracy
• Limited Local Autonomy
• Delayed decisions
Construction Management Personnel Management Centralization and Decentralization. Slide 21

Decentralization:
Advantages:
• Environmental Adaptability
• Diversification
• Competitive organizational climate
• Local Expertise
• Employee Empowerment
• Quick Decision-Making

Disadvantages:
• Inconsistency
• High cost
• Handicap in emergency
• Difficulty in specialization
• Difficulty in Coordination
Construction Management Slide 22

Personnel Management
10.1 Management principles:
Administration and Organization principles
10.2 Centralization and Decentralization.