NATIONAL INSTITUTE OF CONTRUCTION

MANAGEMENT& RESEARCH
(NICMAR) PUNE.

SCHOOL OF DISTANCE EDUCATION

(SODE)

By

ASSIGNMENT 1

1: COURSE NO PGCM 11

2: COURSE TITLE PRINCIPALS AND PRACTICES OF

MANAGEMENT

3: SCOPE OF WORK 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 Project Manager have
been asked by the company to evolve Organization Structure with the
following conditions.
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 100 km radius.
Suggest and discuss an organization structure denoting responsibility.
Authority communication control for all facets of construction work and
management function as visualized by you.
Housing colony consists of 10 Bungalows for senior executives, 20
Apartments in five building, 100 dwellings for white collar workers
and 300 dwellings for blue collared workers. Colony will have
market and entertainment complex.

THE KEY FUNCTION REQUIRED TO BE CARRIED OUT AS FOLLOW

Planning & Scheduling:
Planning involves formulation of a number of alternative realistic work plans for
achieving specified objectives. Finally selecting a plan which is best suited from
the stand-point of available resources and constraints imposed upon the project.
Scheduling is fitting of the final work plan in to a time scale. It shows the duration
and order of various construction activities. There are basically 2 stages of
planning i.e. Pre tender and post tender stages.
Organizing:
Organizing is concerned with division of total project in to manageable
departments/sections and systematically arranging various operations by delegating
specific task to individuals.
Staffing:
Staffing is the provision of people to fill the position so created. It involves
Recruitment, Job planning, Interviews, selection and placement etc. .
Directing:
The directing function is concerned with the training to the subordinate to carryout
assigned task, supervising their work and guiding their efforts. The essence of
directing lies in the ability to motivate people individually and as groups.

Controlling:
Controlling is necessary for ensuring effective and efficient working. It involves
constant review of the work plan to check on actual achievement and to
discover and to rectify deviations through appropriate corrective measures.

 Co-ordination:
Since authority coverage to the top of the organizational pyramid, it is necessary to
bring together and coordinate the work of various department and sections. This
requires an efficient system of communication so that each department and section
is aware of its role and assistance to be expected from others.

ORGANIZATION STRUCTURE FOR PROJECT:

Directors
of Firms

Administr
ation
(HO)

Project
Coordinat
or
General
Manager
Project
Manage
r

Store
Keeper

Billing/
QC
Engg.

Billing/
QC
Engg.

Supervisor

Fitter/Carpent
er

Surveyo
QA/QC
Sr.
r
Engg.
Enginee
Jr.
r
Jr.
Engineer
Engineer

Electricia
n&
Mechanic

Supervisor

Labour

Finishing
contractor

Other
labour
contractor
s

Project coordinator/General manager/ Project Manager/ Construction

Superintendent/ Planning and Controlling Manager, can be single individual.
Project Manager/ resource Procurement Manager/ Construction Superintendent all
can be centralized in one person depending on mass of project in terms of quantity
of project and precision required in work.
However organization structure and number of staff to be deploy directly
proportion to quantum of work and activity required to be carryout in work and
inversely proportion schedule of work in which project has to be complete.

Site Organization
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 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 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 labours 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
RESPONSIBILITY:

BALANCE

BETWEEN

AUTHORITY

AND

In order to work properly, it inessential 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 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 Depart mentation:
Depart mentation 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 withal 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 for accomplishing the unit work.
Production efficiency factor is the multiplier used to convert production norms
into productivity standards expected under job condition at the site.
In this basic equation for determining manpower, the quantity of work to be
performed can be accurately estimated from the construction drawings and
specifications. If the work is to be completed within the stipulated period, the
variable in assessment of workers requirement is the productivity standard.

AUTHORITY TO CARRY OUT FUNCTION:

I.S. 10302: 1982, Indian standards on "Unified nomenclature of workman for civil
engineering", published by its construction management section committee
includes around95 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:
Sr. 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.
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.
Role of Mistry/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.
Role of Laborers:
They are the ones who assist skilled workers and performed many unskilled jobs
at the site. The expect the right payment and need to be given clear instructions
regarding what to do.
In contractors site organization, key persons involved in a project.
COMMUNICATION REQUIREMENT AND FLOW:
Co-ordination of workers their views and finally completion of project are the
necessary task of manager. He has to collect views of various persons at different
level and required to execute the job to be more correct, realistic and feasible. He is
also required to co-ordinate various gangs, persons involved in construction. He
has also to co-ordinate various activities in a project.
Motivation is very essential in modern management technique. The job of
managerial person is to motivate the workers for effective working. This can be
achieved by economic, psychological and sociological satisfaction of workers.
Functional authority is the common thing in organization. It is the power which an
individual or department may have delegated to it for specific processes, practices,
policies and related matters. A Managing Director may have the complete authority
to manage the company subject to the superintendence and control of board of
Directors. But he is not expert in every function in the company and has officer
responsible for technical, production, finance, personnel matters etc. Theoretically
all these officers must give advice to managing Director and the latter alone will
issue instructions. However, Managing Director delegates authority to these
officers to issue instruction directly to the line organization.
On the human level, controls often come down to telling people what to do
and criticizing them or applying other pressures if they dont do what they are told.
This aspect of controlling performance is inescapable. It can pose a problem
because many people do not like to be controlled or to be corrected for off-standard

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

RECOMMENDATIONS
The data available is inadequate, since there are no details regarding the finance
available for the project. If it had been given, it would have been more feasible to
decide the strength of manpower and would also help for better resource allocation
of the project.

BIBLIOGRAPHY / READINGS

MANAGEMENT A GLOBAL PERSPECTIVE BY HAROLD KOONTZ

MANAGEMENT IN ORGANISATIONS
THE LESSON BOOK COMPILED BY NICMAR
INTERNET