Management

in
Organisation
NCP 21
Vishi Luthra

School of Distance Education, NICMAR,

Pune

Management in Organisation

2014

CONTENTS
1.

INTRODUCTION:

2.

SCOPE OF WORK:

3.

KEY FUNCTIONS

3.1.

PLANNING & SCHEDULING:

3.2.

ORGANISING

4.

BREAKDOWN IN MANAGEMENT 9

4.1.

PROJECT MANAGER:

10

4.2.

TECHNICAL TEAM

10

4.3.

ADMINISTRATIVE TEAM 12

5.

INPUT/COMMUNICATION REQUIREMENT AND FLOW

6.

RECOMMENDATIONS

7.

BIBLIOGRAPHY 18

14

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Management in Organisation

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1. 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.
2. SCOPE OF WORK:
The project is about construction of a housing colony for an industrial
group in Western Maharashtra in a coastal belt. There are main aspects to
be studied in the course of project are organization structure their
responsibilities &communication flow. Considering the fact that the local
supervisors can be engaged in the field from the local area:
a. No accommodation is must for local Supervisors & workers,
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b. Only travel arrangements can be made available on demand as the

people are around 100km radius from the work site and
c. The workers strength can be altered in the work load.
Apart from these as all the materials are purchased from the local
surroundings the availability of materials can be made on demand and
there will be an assured supply of materials.
1. The Complete colony area can be tentatively divided into three blocks
tabulated as,
Block

Area
(sq.m.)

Personal

Nos.

Remarks

120/Block

Senior
executives

10

10
Bungalows
comprising
of
two apartments
each

100

White
collared
workers

100

Individual House

80

Blue collared 300

workers

Individual House

2. Apart from the housing it is also proposed to build an entertainment

complex and market.
3. Entertainment complex comprises of theater and a multi-purpose hall
and a small park at the entrance. Considering on the economical basis
the market can be also kept inside the complex as a shopping mall.
Considering the fact that the local labours can be engaged in the field of
work due to the following facts:i. No permanent accommodation is required for local workers.
ii. Only travel arrangements can be made on demand as the people are
around100KMradius from the work site and
iii. The number of labours can be altered in the work load.
Apart from these as all the materials and are purchased from the nearby
market and availability of materials can be made on demand and there will
be an assured supply of materials.
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3. KEY FUNCTIONS
The key function of construction Project:
3.1.

PLANNING & SCHEDULING:

Planning is the first step of management in an organization. It is necessary

to perform managerial planning at various levels and then to visualize how
they relate to one another. A plan is a projected course of action. A
project plan will spell out the details in which the activities will be carried
out; resources will be deployed and time frames when certain outputs
should be expected. The plan of a course is an aggregate of schemes that
cumulative will lead to the targeted development objectives in the given
time and the resource creation and allocation for the purpose.
Steps in Planning:1. Working out the time schedule:
At the prior stage of construction project a precise and comprehensive
time schedule should be prepared. Time schedule gives the tentative time
duration of all the activities to be carried out during project right from the
start up to completion. By summing up a the time duration of a project
time schedule a complete idea about the total time required in executing
the project can be easily deduced.

TIME SCHEDULE FOR THE CONSTRUCTION PROJECT

PROJECT START DATE
S.No
.

01-06-14
Activity

Duration

1.

Taking Clearance from various Authorities

1 month

2.

Layout Planning

15 days

3.

Recruiting Man Power

15 days

4.

Arranging Various Utilities like electricity &

water etc.

1.5 months

5.

Constructing facilities like raw material storage,

Electricity & water distribution centre, canteen
etc.

2 months

6.

Finalizing vendors for various product required in

the project

15 days

Management in Organisation

2014

7.

Land excavation & levelling

15 days

8.

Marketing the land as per Layout

15 days

9.

Civil Foundation

2.5 months

10.

Construction of Buildings

15 months

11.

Construction of various other infrastructure like

shopping complex, park etc.

15 months

12.

Final finishing of building

10 days

13.

Evaluating cost of construction

5 days

PROJECT FINISH DATE

01-12-2016

TOTAL DURATION OF PROJECT

2.5 years
(Approx)

NOTE: Activities marked as serial no. 10 & 11 will be carried out

simultaneously.

2. Engineering:
The company will outsource the engineering from a detail engineering
subcontractor. The engineering consultant in coordination with planning
department will prepare architectural drawings. The consultant will do the
structural designing of the buildings. Prepare drawings for the same. The
drawings will be issued for approval of client. The corrections shall be
made if any and the revised drawings shall be issued on site only after the
final go of the client. Mechanical and electrical part of designing will also
be done by the engineering consultant.
3. Site execution and control:
The site execution team is directly dealing with the labors and subcontract
ors. On site execution and control on the construction activities will be
carried out by this department. The department will be dealing with
measurement book and daily progress report for the project. Execution
will be done with safety on prime concern. This team will handle the
labours and supervisors. The quality and speed of construction will
be taken care of. Material use and cost control will be monitored and
wastage should be minimized.
The team must manage resources including labor, materials andequipment
to ensure that the project is being constructed as per plan, onschedule and
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within budget. In doing so, they must monitor the construction schedule,
maintain accurate cost control plans, and calculate productivity and
material yields. All employees on site are responsible for their own
personal safety and that of their co-workers.
4. Procurement & Stores:
The Procurement Department is responsible to ensure that
company
receives the most favourable vendor pricing. Payment terms shall be
consistent with acceptable quality and availability in the procurement of all
materials and services for all project operations. They research and provide
material pricing to the Planning Department for all estimates .They will
carry out the ABC analysis and will provide optimum supply on site. This
department will take care that work will not stop because of nonavailability of the materials. The material standby time and labour stand by
time will be balanced. All the necessary documentation part regarding
supply will be carried out by this department. The department will handle
the store on site and will issue the materials after accepting the material
requisition. The department will coordinate with other departments with
the help of planning department. The department will take care of
disposing the scrap.
5. Personnel & Administration
This department provides administrative and clerical support to various
departments within organization. Administrative Assistants are responsible
for records management, file maintenance, preparation of correspondence,
scheduling of meetings.
In this project, the personnel and administration
department will look after the records of the workers that are recruited on
site for this project only. For the company persons, the records will
be maintained by the head office. The general office services like daily
attendance and other services will be taken care of by this department.
This department will also take care of the taxes, licensing and RC books for
the equipments. The fuel charges will be paid by this department.
6. Accounts
The department will look after the processing of payroll and accounts
payable to the employees those who are appointed locally for this
particular project. Only records for the salary will be maintained. The
workers will receive weekly salary every Tuesday. This salary will be issued
by the person coming from the head office on the salary day.
7. Quality Assurance & Quality Control (QA/QC)
The Quality assurance and quality control department checks the
qualityof construction and performs laboratory tests for the quality check a
nddocumentation regarding that. The main objective of this department is
to provide quality product with optimum use of funds. The QA/QC
department provides training to the site engineers to maintain quality in

Management in Organisation

2014

the job. On site tests such as cube test etc. are conducted by this
department.
8. Equipment Service Division (ESD)
Equipment Service division handles all the machinery part of work. Thisdep
artment looks after the maintenance of the equipments. This department
gives training for the safe and efficient equipment handling. The study for
the numbers of equipments needed and the type of equipment needed is
done by this department. This department suggests the use of best
possible equipment that can be economically used for the task. Equipment
Service Division shall also do planning and scheduling for sharing of
equipments with the help of planning department
9. Safety
The Safety Department provides support in all aspects of health andsafety
relating to field and administrative operations.
The Department is committed to ensuring the health and well-being of the
public, the environment and all employees, subcontractors and suppliers.
The Safety Department is responsible to ensure that all health and safety
related laws and regulations are followed. They develop and implement
various safety programs, perform regular job site/ work place inspections
and assessments, develop and conduct in-house safety training programs,
conduct accident and incident investigations and manage claims and
administration.
10.
Security
The security is needed for the material that is available on site. The labour
colonies do need security.

3.2.

ORGANISING

Organising is the second of management in an organization. The

organizing process brings together the basic resources of a project in an
orderly manner, and arranges people and resources in an acceptable
pattern so that they could perform the required activities efficiently and
achieve the project completion objective. It is the process that enables
man power to work effectively and efficiently. The organising process deals
with:

Creating a structure.

Assigning duties.

Providing tasks to perform.

Management in Organisation

Sets hierarchy for smooth and efficient working.

Sorts issues with authorities.

2014

The following organization charts are applicable only

for this housing
colony project. The project is to be completed in all respects in two and
half years. So job should be done with quality as well as speed. The speed
and quality is attainable only when adequate numbers of employees are
available. The project has four different phases of construction viz.
a) Bungalows for senior executives,
b) Apartments,
c) Dwellings for white collar workers,
d) Dwellings for blue collar workers.
We plan to complete the construction part in 24 months and finishing work
in 6 months along with construction of internal roads network with 2
months spare for the worst scenario in consideration.
PROJECT MANAGER

4. BREAKDOWN IN MANAGEMENT

ADMINISTRATIVE TEAM

TECHNICAL TEAM

OPERATIO
N HEAD

CONSTRUCTIO
N HEAD

PROJECT
CONTRO
L HEAD

SITE
ENGINEE
R

QUALITY
ENGINEE
R
MAINTENANCE
ENGINEER

SCHEDULER

DOC.
CONTROLLE
R

SERVICE
HEAD

MARKETING
HEAD

FINANCE
HEAD

TENDERING &
COST
SPECIALIST

SAFETY
ENGINEE
R
SECURITY
PERSONNEL

ACCOUNTAN
T
9
PURCHAS
E

Management in Organisation

2014

The above chart is the outline for the breakdown for the management in the
organisation. The top most position in any project is the project manager. The
orders are executed by the junior engineers through their senior engineer who
is guided by the construction manager. The functions of the personnel are
discussed briefly below
4.1. PROJECT MANAGER:

The project manager is a leader of the team.

The project manager will have clear idea about all the process that
takes place in the project.

He should be influencing the team to follow in the achievement of a

common goal.

He should be able to identify the delay if it is occurred and should be

able to rectify it. He is answerable to the top level management of the
firm and to the clients.

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 subcontractors and

material suppliers with or without reference to H.O depending on the
sizes of the project, policy of firm, distance from H.O 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 periodical joint meetings of several key personnel working at the

site to review progress and to issue instruction for speeding up work if
required.

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A Project Manager has to guide and monitor the activities of both technical
and administrative time which comes directly under his control.

4.2. TECHNICAL TEAM

OPERATIONS HEAD

The function of an operations head is to ensure the smooth working of

construction activities.
He is responsible for maintaining the quality of work during execution of
project.
He is assisted by:
Quality Engineer:
He takes care in examining the quality of the all the products from
reinforcement, concrete to a completed building
Maintenance Engineer:
He is responsible to maintain the condition of all equipment at site,
ensuring the proper working of the equipments.

CONSTRUCTION HEAD
He is the head of the execution department. The main function of the
execution department is to execute the orders received from the planning
department.
The most active post in the organization is the construction manager since
he decides upon the plans proposed on assumed working conditions and
executes them under the actual working conditions.
He has a team consisting of engineers and his sub ordinates for various
works in the field.
He is assisted by

Site engineers:
Supervise the execution and all the erection activities at site. Authorized
to instruct and control junior level and workers.

PROJECT CONTROL MANAGER

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The function of a project control manager is to regularize the work flow in

the project. He forms a planning department under which all the essentials
of the project are been maintained and recorded.
The project control manager being the head of the planning department
has to keep up the above mentioned functions.
He is assisted by:
Schedulers:
Prepares the work flow for a project.
Document controllers:
Maintains all the records of the project.

4.3. 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 the project
and people linked with it.
He is assisted by:
Safety in charge:
Responsible for the safety of people working at the construction site.
Security in charge:
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:
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Tendering & cost specialist:

Do all thetendering required for bagging any project. Analysis the
day to day change infield 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 table below gives the outline for the entire assignment as a precise for
the above all discussions:
S. No.

DESIGNATION

QUALIFICATION
& EXPERIENCE

N
O

REMARKS

Project In-charge

Min. 15 years exp.

In the field of
construction

Forms the head of

the project
nominated via
board of members
in company

Operations Head

Min. 10 years exp.

In the field related
of construction
operations

Makes the entire

work flow
operation in the
project

Project Control
Head

Min. 10 years exp.

In the field of
scheduling &
documents
controlling

All data &

document
controlling comes
into his scope

Construction
Head

Min. 10 years exp. In

the field of

Responsible for all

the project
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erection and
execution work.

construction
5

Services Head

Min. 10 years exp. In

the field of safety in
site and security
handling

Ensures the
project going at a
good rate to the
expectance of
others.

Marketing Head

Min. 15 years exp. In

the field of tendering
and estimation.

Handles the
responsibility of
evaluating tenders
of different
bidders.

Finance Head

Min. 15 years exp. In

the field of accounting
and purchase.

Takes sole
responsibility for
maintain the cash
flow control for
the entire project.

Engineers

Min. 0-5 years exp. In

the field of
construction

58

For site work

Foreman &
Supervisor

Min. 5-20 years exp.

In the field of
construction

20

For site work

The number of technical officials

: 15-20

The number of skilled labours

: 50 (may vary on demand)

The number of Semi-skilled labours

: 100 (may vary on demand)

The number of unskilled labours

: 300 (may vary on demand)

5. INPUT/COMMUNICATION REQUIREMENT AND FLOW

As discussed above the breakdown in an organisation
categorized precisely under four departments namely,

can

1. Planning & Infrastructure department,

2. Finance and Marketing department,
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Management in Organisation

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3. Quality & Maintenance department and

4. Execution department.
The functions of all the above departments are explained elaborately below
1. 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.

2. 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.

3. Quality & maintenance 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.

4. Execution department:

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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.

COMMUNICATION FLOW:
Communication is defined as exchange of facts, ideas, opinions or emotions
by two or more persons. Any project involves interaction of employees and
workers working at different levels with a view to achieve the predetermined
planning/goals. If the planning is to be achieved effectively and efficiently
proper communication among various employees and workers are necessary.I
mportance of communication to a project can be compared to the importance
nerves to a human being. Communication is the sum of all things one person
does when he wants to create an understanding in the minds of another
person.
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.
The flow chart below shows the information flow in a construction company:

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Management in Organisation

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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 a for an efficient project there is a must that all should be knowing the
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 time 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.
AUTHORITY TO CARRY OUT FUNCTIONS
Being a Project manager I have the right to give order, make decision and
enforce obedience to carry out all the functions need to be done to complete
this project in time and securely. The materials and services procured are to
be directly linked up with stock taking and giving authority. Technical
supervisors should listen to the senior engineer and obey their orders and
they should report to the senior engineer what they observed. And the senior
engineer should report to the project manager and obey the orders given by
the project manager. Recruitment of laborers and supervisors should be
adjusted well so that the communication among them and the higher officials
is excellent.
Personnel should be hired based on their merit, education qualification and
work experience. Salary decided by the higher authority would be final. It will
be better if we hire personnel from Maharashtra itself and near about places.
The reason is that the employees and workers will be familiarize with the local
language Marathi and the local atmosphere. They can communicate with
more people. It will help the project to run smoothly. These will save time and
cost. Unnecessary time and money will not be wasted. Uses of modern
equipment can reduce man power and time. Tasks can be performed more
accurately.
6. RECOMMENDATIONS
Having stated that the non-integration of the construction supply chain
hinders the creation and improvement of value for money in the
construction process. Specifically the recommendations are anchored on
collaboration and supply chain management. The recommendations include:

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;
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Integrating pre-construction and construction activities and adopting

common processes such as ICT;

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 programs;

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 and deemphasizing
the use of management contracting as well as traditional forms of
contracting and

Mobilizing and developing people in order to ensure employee satisfaction

through integrated teams.

7. BIBLIOGRAPHY
1. Management in Organisation (NCP),NICMAR Publication
2. Hinks, J., Aouad, G., Cooper, R., Sheath, D., Kagioglou, M. andSexton, M.
(1997) IT
3. and The Design and Construction Process: A Conceptual Model of CoMaturation,
4. The international journal of construction IT , July
5. Construct IT report. (1995) Occasional Paper No. 1: A Process-Based Study
of an IT
6. Research Work Plan, University of Salford.
7. Hughes, W. (1991) Modelling the Construction Process Using Plans of Work,

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