ASSIGNMENT

ON

Principles and Practices of Management

PGCM 11
___________________________________________________________________
_

SUBMITTED BY:
ALOK SHETTAR
PGPCM,
REG NO: 215-07-11-50460-2171
ASSIGNMENT NO - 1

___________________________________________________________________
_
DEPARTMENT OF PGPCM
NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT AND RESEARCH
SCHOOL OF DISTANCE EDUCATION
25/1, BALEWADI, N.I.A. POST OFFICE, PUNE 411045

NICMAR - SODE OFFICE

COURSE TITLE : Principles and Practices of Management
COURSE : CONSTRUCTION MANAGEMENT
COURSE NO : PGCM 11
STUDENT REGISTRATION NO : 215-07-11-50460-2171
ASSIGNMENT NO : 01

ASSIGNMENT
Your company has bagged a lucrative contract to construct a housing colony for
an Industrial Group to be located in Western Maharashtra in a coastal belt. You
as a Project Manager have been asked by the company to evolve Organization
Structure with following conditions.
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 10 km radius.
Suggest and discuss an organization structure denoting responsibility, authority,
communication control for all facets of construction work and management
functions as visualized by you.
Housing colony consists of 10 Bungalows for senior executives, 20 Apartments
in five building, 100 dwellings for white collar workers and 300 dwellings for
blue collared workers. Colony will have market and entertainment complex.

ABSTRACT
This Project Report is about management in an organization, organization here
is a construction cum residential project comprising of a housing colony having
residential blocks for different level of personnel based on the hierarchy / and
their designation in the firm they work for. The project range varies from
bungalows for senior executives

to apartments & dwellings for white

collar and blue collar workers.

Succeeding report projects the responsibility and duties of a project manager
which he has to undertake and subsequently perform for the construction project
in the due course of time. The responsibilities & duties of Project manager
mainly encapsulates: Visualizing all key functions to be carried out for the project.
Framing managerial functions and categorizing them into technical &
administrative functions.
Establishing flow of communication
Recruitment of required man power
Assigning duties to the Authorities along with giving suitable jobs to
junior staff members
Controlling and forming a structure required for the proper execution of
project.
Deciding optimum quantity of resources to be utilized at each level and
stage of project.

INTRODUCTION
Main pillars on which a construction project is laid are proper, effective and
efficient planning and management of material flow. Materials right from the
raw form to semi-finished and then finally in to finished state must be planned
and managed in such a way that no wastage or misuse comes in to scene. The
introduction of supply chain management in construction is intended to
integrate processes, manage interfaces between companies in projects, reduce
uncertainties and weed out inefficiency as much as possible. The elimination
of waste and inefficiency from the supply chain builds in value in the process.

All the authorities guiding personnel at different level of construction project

should be in a perfect sync and well-coordinated. Flow of information from the
top level of management to bottom and vice-versa must be smooth, lucid and
clear avoiding any conflict and misguidance. Manpower should be as lean as
possible avoiding any over numbered people situation at project site.
For planning, managing and executing a construction project following key
areas are the axis around which a Project manager emphasis and concern should
revolve: Committed leadership.
Determining bottlenecks and then methods to get rid from it.

 Framing guideline easy to follow.

Quality driven agenda
Making a task schedule clearly indicating start and finish date of project
along with time taken to complete different individual tasks at different
levels and stages of project.
Intelligent planning off finances and cash flow.
.

The present assignment paper is done by keeping in mind the above factors for
attaining the best and profitable output

SCOPE OF WORK
The project is about construction of a housing colony for an industrial group in
Western Maharashtra along a coastal belt. Following points must be strictly
considered and followed during the start of project:Maintaining as less no of people as possible on company roll up to junior level.
This will cut down the cost involved in arranging and maintaining
man power.

Avoid over crowded situation on construction site.

Easy and less hectic management system.

Less controlling and monitoring required.

Supervisors below junior level will be on temporary job basis and to be

recruited locally from 100 km radius.

 No accommodation is must for local workers.

Only travel arrangements can be made on demand as the people are
around 100km radius from the work site.
The number of workers can be altered according to work load.
From the brief above we understand that,
The project requires developing an organization structure for the work of
building a housing colony.
Local human resources to be introduced.
Optimum utilization of the available resources, both natural as well as
personnel, within a proper framework of time and money.
High quality output.
Proper safety measures.
Eco friendly work procedures so that the coastal environment, where the
project is, is not disturbed in any way.
The scope of work includes the following:
Forming a lean organization structure with transparency at all levels for
better output of work.
Communication systems- Day to day monitoring and reporting within the
site and outside the site ( to Head Office)

Various Clearances from local authorities.

Motivation of the all employees at different levels of the organization

Recruitment , application and selection of employees

Training of employees, especially the supervisors who will be recruited

locally and acquainting them to the company policies, methodology and
working procedures.

Monitoring and controlling each facet of the organization structure built

up.

Tracking the project progress and leading it to timely, smooth and within
the budget completion.

ORGANISATION STRUCTURE
To start with the planning, we need to find the appropriate Organization
Structure for the said project.
Organization Structure can be of two types
Tall structure with a lot of Control at a single point.

Flat or Lean Structure where the control is distributed over a number of

points.

The advantage of having a flat structure is extensive delegation and

decentralization of control or Authority resulting in
Improved vertical communication
Rapid Decision Making
Better development of subordinates

 Greater feeling of team due to reduced levels

Top quality management throughout the organization
Centralized financial control
Hi speed reporting system
Therefore out of the two we will be going for the flat structure of organization
which will be most beneficial for this project.

KEY FUNCTIONS
The key function of construction Project:
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.
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: Organizing involves division of project work into section and
staffing is the provision of people to fill the position so created.

 DIRECTING: The directing function is concerned with the training to the

subordinate to carry out assigned task, supervising their work and guiding
their efforts.

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-ORDINATING: 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.

WORK BREAKDOWN STRUCTURE

Since habitation pattern of the colony can be predicted with some accuracy
therefore the work package can be divided into following packages:
1ST PHASE: 2 Bungalows for visiting senior officers, 1Apartment, 50 white
color dwellings for white collared Workers and 100 blue collar dwelling will be
taken up in phase 1.
2ND PHASE: 2 Bungalows ,2 apartment buildings, 25 White Collared Worker
Dwellings,100 Blue Collared Dwellings

3RD PHASE: 1 Bungalow,1 Apartment Building, 25 White Collared Workers

Dwellings, 100 blue collared Workers dwellings.
4THPHASE : Entertainment Centre and Shopping Centre
This phasing will allow the same team to perform 4 similar tasks one after the
another, thus reducing employee requirement by at least 70-75% which would
otherwise be needed

SITE ORGANISATION AND THE TEAM

Essentially a project for getting success needs a good responsible team. The
team works with a goal of completing the project in time within the specified
costs and quality specifications. To achieve the goal, the work and
responsibilities are divided within the team. The work management will be as
per the chart showing the site organization team. The brief role and
responsibilities of various personals involved in the project are as follows.

BREAK DOWN MANAGEMENT

foreman
foreman

foreman

 PROJECT MANAGER
He is appointed by the head office to look after the complete project. He is the
head of the project team and is responsible for any act at site. He manages the
entire construction process and is accountable to the client. He should get all
site and head office related information. If any decision is needed the project
manager would be the top most authority to give or arrange the answer of the
decision.
A Project Manager has to guide & Monitor the activities of both the Technical and
Administrative time which comes directly under his control.
TECHNICAL TEAM
QUALITY ENGINEER: He takes care in examining the quality of
the all the products from reinforcement, concrete to a completed
building.
MAINTENANCE ENGINEER: Responsible to maintain the
condition of all equipment at site, ensuring the proper working of the
equipment.
PROJECT CO-ORDINATOR: The decisions at head office and the
problems or demands at site are coordinated by the project
coordinator. Project coordinator acts as a link between the project
manager and site engineer. He should be very well aware of the work
happening at site and the decisions taking place at head office. It

would be his duty to provide the project information to project

manager.
SITE ENGINEERS: The key person and the head of the team
working at site, is the Site Engineer or the Executive Engineer. He
operates the complete work at site making use of the available
resources and managing the workforce. Site Engineer would be
responsible for any work happening at site so it would be his duty to
check and study the execution of work.
FOREMAN: A foreman is the leader of the workforce. It would be
his responsibility to communicate directly to the workforce. After
getting approval of a drawing it would be the duty of the foreman to
dictate the workers what to do and to check the work progress. In
fact the foreman handles the labors.
OTHER TEAMS: Other teams will also be required onsite such as
MEP Consultants or their Representatives, HR and Public Relation
Officer, Design Consultants or their representatives, Finance people
that includes accounts and procurement.
ADMINISTRATIVE TEAM
SERVICES HEAD: The function of a services head is to look after the
serviced required for the proper and trouble free execution of construction
activities. He forms the team and lead them providing safety and security to t he
project and people linked with it. He is assisted by:
SAFETY INCHARGE: Responsible for the safety of people working
at the construction site.

 SECURITY INCHARGE: Provide safety to the people working at

site and valuable material lying at site
MARKETING HEAD
He is the interface between clients, vendors and the construction firm.

He along with his team serves the purpose of tendering and cost estimation
of a project.

As a marketing head he plays the vital role of bagging the offer of

construction from clients by attending meetings with them and presenting his
companys potential in an effective and positive way in front of them . He is
assisted by:

TENDERING & COST SPECIALIST: Do all the tendering required

for bagging any project. Analysis the day to day change in field
of construction financially.
FINANCE HEAD
He looks after all the finances required to run a project.
All the items required are purchased under his surveillance.
Managing all the financial activities like expenses, salary are his sole
responsibility. He is assisted by:
ACCOUNTANT: All accountings for the project and managing the
firms accounts are done by him.
PURCHASE ENGINEER: Items required in the construction and all
other auxiliary systems are purchased/ procured by him.

THE OUTLINE FOR THE ENTIRE ASSIGNMENT AS A PRECISE FOR THE ABOVE ALL
DISCUSSIONS:

S.NO
.
1

DESIGNATIO
N
Project Incharge

QUALIFICATION &
EXPERIENCE
Min 20 years exp in the field
of construction

NO

REMARKS

Forms the head of the project

nominated via board of members
in company

Operations Head

Project Control
Head

4
5

Construction
Head
Services Head

Min 15 years of exp. in the field

related to constructional operations
Min 15 years of exp. in the field
of scheduling & documents
controlling.
Min 15 years of exp. in the field
of construction
Min 15years of exp. in the field of
safety in site & security handling.

Makes the entire work flow

operations in the project
All data & document
controlling comes into his
scope.
Responsible for all the project
erection & execution work.
Ensures the project is going at a
good rate to the expectance
of others.

Marketing Head

Min 15years of exp. in the field

of tendering & cost estimation..

Finance Head

Min 15years of exp. in the field

of accounting & purchase.

Engineers

Min 0-5years of exp in the field

of construction

5-8

1
1
1

Handles the responsibility of

evaluating tenders of different
bidders.
Takes sole responsibility
for maintain the cash flow control
for the entire project.
For site work.

The number of technical officials : 15-20

The number of skilled labours

: 20 (may vary on demand)

The number of unskilled labours : 70

(may vary on demand)

Total = 110 persons minimum

COMMUNICATION
Any organization structure involves interaction of people working at different
levels with a view to achieve the predetermined goals. Effective communication

facilitates right information to the right person at the right time. The objectives
of communication can be stated as follows: Aid to the manager in decision process.
Appraising all the concerned about the goals of organization
Helps in Coordination
Proper understanding amongst the team members of the organization.
It is essential in recruitment, training, performance, evaluation, etc of
various people associated with the organization.
Thus Communication is basis of all the managerial functions. It helps in
providing information and understanding as well as attitudes necessary for
motivation, cooperation and ensuring effective group efforts.
COMMUNICATION FLOW
The communication flow can be vertically upward or downward. Through
downward communication the Superiors acquaint all concerned with the goals
of the organization, direct the efforts of all people, passing instructions as
regards the method of work, activity sequence, rewarding or punishing for
satisfactory or unsatisfactory performances.
Through upward communication the Subordinates update their superiors
about the progress of the project, informing about the various problems of
people working in the organization. This can be through reports, mails,
etc.

 There is also lateral communication between individuals at same levels

in an organization. This is very important for exchange of ideas,
information, and is very important for preventing delays.
The communication can be verbal, non-verbal, Written. But all the important
communication is always in written format. Verbal communication is the fastest
way but not trustworthy, whereas written communication is foolproof but time
consuming. Communication can be explained as below:
Information Sent

Information Coded

Information Transmitted

Information verified

Information Understood

Information Decoded

Information Received

If the information is transferred is this manner then only the project is

completed without any hassles. For effective communication following things
can be done: The objective of communication must be clearly known
The form and medium of communication must be appropriate
Language selection
Complete information without any assumptions and Proper Follow up .

INPUT/COMMUNICATION REQUIRETMENT AND FLOW

As discussed above the breakdown in an organization can be categorized precisely under

four departments namely,

Planning &Infrastructure department,

Finance & Marketing department,

Quality & Maintenance department and

Construction department.

The functions of all the above departments are explained elaborately below :
PLANNING & INFRASTRUCTURE DEPARTMENT:
The Planning team would work on the Layout, Town Planning and
Connectivity.
The Infrastructure team would ensure that the basic infrastructure like Water
and Electricity is made available to the units.
The intention to club these two divisions is based on logical interpretation of
the basic tenets on which the two teams work.
A coordinative effort between these two divisions will ensure that that the
product is ready for the execution team to deliver.

FINANCE & MARKETING DEPARTMENT:

 The team will work around the year to ensure that the required cash flows are
maintained and also to ensure that the work doesnt get affected due to
the inherent issues of managing the project.
Employees in the Manager level will ensure that all the required books are to
do the book keeping and also execute the plans of the General Managers.
The General Managers are to ensure that the plans are made keeping in mind
the vision and direction set by the Project Manager.
QUALITY DEPARTMENT:
The Quality Team will have a structure as follows: Quality Control plays a
very vital role in a project. Hence, it would be critical to have a Quality team
member involved in every critical aspect of the project.
A team member would be involved in the Planning and Infrastructure, one
team member in Architecture and one in Execution.
A team member of the cadre of an AGM would ensure that the Managers
who look after the individual portfolios execute the plans according to the
vision and direction of the Program Manager.
EXECUTION & CONSTRUCTION DEPARTMENT:
The primary thing that has to be realized is that execution is a very critical
team for the success of the organization.

 This team has to be closely monitored and should also be given enough
flexibility to allow intelligent deviations from the plan and also should be
flexible enough to incorporate the changing conditions in the environment.
Thus it is very clear from the flow chart that in the field of construction there is no
Unidirectional flow of orders or communication it is a must that for an efficient
project there is a must that all should know about what happenings around them so
as that the problems can be discussed and hurdles are overcome. So as a result the
client is pleased and at the same times the work progress is also maintained at the
same ratio. As a result for the company time efficiency is gained which at the days
end earns a lot of profit and fame for the concern.

RECOMMENDATIONS
Ensuring the early involvement of key project team members that have
expert knowledge so that an appropriate level of client satisfaction and
value can be defined.
Establishing of subcontractor and supplier relationships by selecting
teams based on value rather than lowest price.
Managing the project parameters of cost, schedule, quality, and H&S in
unison. Working together as a team to agree mutual goals and devise
dispute resolution mechanisms.

 Developing and monitoring continuous improvement programme.

Developing and implementing sound risk management processes
Dealing with risks and rewards equitably by using modern commercial
arrangements such as collaborative contract forms, target cost and open
book accounting.
Using non-adversarial forms of contract and ensuring that contractual
relationships are appropriate for expected project objectives.
Using

cost-plus

and

design

and

build

forms

on

contract

underemphasizing the use of management contracting as well as

traditional forms of contracting. Mobilizing and developing people in
order to ensure employee satisfaction through integrated teams.

BIBLIOGRAPHY/ READINGS
Management in Organizations IDM 11
Organization Management - Koontz Odoneal McGraw Hill Publication.