Projekbestuur 4A Project Management 4A

Unit 3: Effective and Efficient Site Management

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 Aim of this unit.

This unit discusses various management tools and concepts for improving the efficient and effective utilisation of resources on the site. We focus on these tools to understand the use and deployment of such tools. Investigate key components for construction managers to attain both effective and efficient methods on site. Ways and methods for the measurement of the construction organisations performance is discussed.
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 Efficiency
The ability to get things done correctly. Ratio of output to input. Efficient manager achieves higher outputs (results, performance) with less inputs (materials, labour, money). Minimise cost of resources and maximise output for given imput.

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 Effectiveness
The ability to do things right. Effective managers select the right things to do as well as the right method to use. Concentrate resources and efforts on the right things to do.

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 Current nature and pressures on the Construction Industry

To maximise customer relationships. Supplying what the customer wants. Retaining long-term customers by maintaining relationships. Ensuring long-term workloads and cash flow Surviving in highly competitive market. Each project must have a successful outcome for both contracting parties.
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 Organisational structures
Organisational structure must facilitate or improve company performance. Various types of structures:
Entrepreneurial Bureaucratic Matrix

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 Entrepreneurial Structure (Fig 3.1)

Starts out as sole trader. Activities focused on the owner/manager Extend the capacity of the owner by attaching others to him/her. Owner fully controls the group until critical mass is reached. With growth eventually reaches a stage where owner cannot further manage effectively and efficiently because of many varied demands.

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 Bureaucratic structures
Hierarchical structures with multi-layers of supervisors and subordinates Authority of superior is legal or rational and is linked to level of office. Pyramid shaped providing line and staff structure (see figure 3.2) Organisational control exerted through CEO Main features See list on p27.

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 Matrix Structure (See figure 3.3)

Each member has specialist function with overlapping competence to other group members. Matrix overcomes disadvantages of both bureaucratic and entrepreneurial structures. Takes form of functional and project related groupings. Clear lines of authority and accountability is established. Allows for better reaction to dynamic operating environments.
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 Leaderhip
Leaders are born not made..? . Plato Styles of leadership (fig 3.4, 3.5 & 3.6)
Authoritarian leader controls amount and nature of work of subordinates Democratic group determines own work schedule and methods Laissez-faire abdication of responsibility. Subordinates make decisions Charismatic leader attracts a personal following who puts great faith in quality of leader.

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 Construction Site Management

Construction Site Manager (CSM) conducts, controls, administers and heads the construction team on site. SM stands at the heart of the construction process SM plays crucial role in the success of their organisations SM must have key managerial skills Prime functions are communicating, planning & organizing.
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 Key managerial skills for Construction Site Managers See table 3.1 for rankingwhy is this?
Forecasting Planning Organising Controlling Motivating Co-ordinating Communicating
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 Construction Site Manager

Most demanding, responsible function in construction process. Characterised by high work overload, long working hours, high level of conflict. SMs must be dedicated individuals with extremely strong character. SM link between senior management and site personnel. Control of day-to-day activities using clearly defined targets of performance.
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 Time allocation for Construction Site Managers

See figure 3.8 Administration Work allocation Meetings Checking Problem solving Health & safety Other
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25% 19% 15% 14% 11% 9% 7%

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 Key issues for attaining an efficient & effective construction site (Study Table 3.2)
Managing people = respect and courtesy Enforcement of rules = fairly and consistent Innovation = create correct environment Lead by example Plan all work activities = co-ordinated and safe working practices Communication = all involved IT = be familiar and make best use of IT Training = undergo and ensure adequate training Delegation = be prepared to delegate
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Critical success areas for CSM

Completion of project on time Completion of project within budget Attaining specified quality levels

Problematic issues affecting above

Health & Safety considerations Obtaining information (communication flow) Technical knowledge (CPD requirements) General paperwork & administration very time-consuming!
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Summary
See text block on page 39
Future extremely prosperous Shortage of skilled workers Contracts are under-staffed Contract periods too tight Site-based paperwork ever-increasing Extremely long working hours Evolvement of site managers role Position of immense responsibility Training crucial
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Organisation Development & Growth (p39)

Methods of growth:
Internal development Acquisition or merger
Vertical - acquisition of supplier Horizontal combining with similar activity Conglomerate completely unrelated

Joint development - JVs

Choice between above is trade-off between cost, speed and risk.

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 Strategic Analysis and corporative planning (see Fig 3.12)

For correct decisions regarding growth Key issues:
Human factors Timeliness Setting of goals Business principles

Steps required
Current objectives Internal appraisal External appraisal
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 Network Organisations (new corporative strategic thinking)

Four types are available (table 3.4)
Productive network (in one organisation) Bilateral network (joint ventures) Hun Network (Turnkey projects) Federation (partnerships)

Applicable to construction as mechanism for obtaining/maintaning competitive advantage in dynamic environment

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 Best Practice and Benchmarking (p49)

Implementing best practice is acid test for any company Companies face stiff competition National boundaries are no longer constraints Production excellence and best practice is central element in overall success Purpose Planning Process Performance measurement Identify best practise Benchmark Identify critical success factors (CSF) Formulate strategy for improvements
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For Ps of Best Practice

Implementation process (fig 3.15)

 Management Theory
Fayols approach
Activities of the organisation Elements of management Principles of management

Webers ideas
Distinguished between power and authority Three categories of leaders
Charismatic Traditional (custom) Bureaucratic

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 Management theories
Taylor
Obsessed with maximising efficiency Assumed people to be essentially lazy, disinterested in organisation, basically irrational, incapable of self-control. Founder of O&M (organisation and method studies) Proposed Scientific Management

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 Motivational theories
Maslow
Pyramid of ascending needs (fig 3.16) Need acts as motivators as long as it remains unsatisfied. Motivators subject to change depending on circumstances Workers as capable of self-motivation and control Management has role of catalyst and facilitator (see table 3.6 for implementation)

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 Motivational theories
F Herzberg (Fig 3.17 & Tables 3.7 & 3.8)
Demotivators & motivators Differentiate between factors that lead to jobsatisfaction and those leading to job dissatisfaction Satisfaction and dissatisfaction are not opposites Motivator factors and hygienic factors Motivators primary cause of satisfaction Hygienic factors primary cause of unhappiness

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 Motivation
Influences
External influences (community, family, social class) Social comparison Expectations Individual differences

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 Systems Approach for Construction (p71)

Construction project is a temporary organisation specifically formed to complete a definable purpose. Starting point is the site System analysis
Define the system primary task
Establishment of boundaries

Identify component parts of system

Inputs, conversion process, outputs, feedback loops

Define the environment of the system

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 Morale Morale is the attitude of individuals and groups towards their work and the working environment. Morale determines how well or how badly people perform Factors to identify and measure
Labour turnover Level of absenteeism Timekeeping Number of accidents Quality of work Number of grievances & disputes
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 Influences on Morale
Adequacy of Supervision
Lack of leadership Poor delegation Inadequate knowledge of job Poor interpersonal skills Lack of caring and support Victimisation Excessive disciplinary measures Personality conflict

The job itself

Too much or too little work

Organisational climate
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 Group Dynamics
Formal and informal groups Group processes (table 3.9) Group pressure

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 Organisational culture
Vital aspect for motivation, morale and change management Can be formed or influenced by:

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Society culture Dominant leader Company history Competition Customers Legislation Goals, values and beliefs
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 Case Study
Carefully read the case study and answer questions 1 3.

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 Summary
Crucially important to ensure maintenance and improvement of construction site efficiency and effectiveness. Importance of motivations and morale on a construction site has been demonstrated. Case study highlights most of the theory covered.

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