UC- 6 level 5

Information Sheet For UC-6 Construction Management Level V
UC- 6: Manage People and Equipment Performance
This competency unit covers the knowledge, skills and attitude to develop key result areas and
key performance indicators and standards, coupled with regular and timely coaching and
feedback, provide the basis for performance management of an employees and equipment.
Learning outcomes includes
LO1. Allocate work
LO2. Assess performance
LO3. Provide feedback
LO4. Manage follow-up
Key result areas of performance means: Those areas of project performance which are
critical to the overall success of the business (or section of a projects).
Key performance indicators means: Those measures developed to gauge performance
outcomes against targets.
Performance standards means: The level of performance sought of an individual or group
which may be expressed either quantitatively or qualitatively.
Code of Conduct means: An agreed (or decree) set or rules relating to employee
behavior/conduct with other employees or customers.
Supply chain means: Network of people transforms into work services and then finished
products, and delivers them through a distribution system. It span s work distribution; views
them not as discrete elements but interlinked.
Risk analysis means: a determination of the likelihood of a negative event preventing the
organization meeting its objectives and the likely consequences of such an event on
organizational performance.
Performance management means: a process or set of processes for establishing a shared
understanding of what an individual or group is to achieve, and managing and developing
individuals in a way which increases the probability it will be achieved in both the short and
longer term in accordance with relevant industrial agreements.
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Performance reports:
 individual or team performance
 equipment performance
o condition monitoring results
o underperformance
o misuse / overuse
Excellence in performance means: regularly and consistently exceeding the performance

targets established whilst meeting the organization’s performance standard.
The Importance of Human Resource Management
• People determine the success and failure of organizations and projects
What is Project Human Resource Management?
• Project human resource management includes the processes required to make the most
effective use of the people involved with a project. Processes include;
– Organizational planning
– Staff acquisition
– Team development
Keys to Managing People
• Psychologists and management theorists have devoted much research and thought to the
field of managing people at work
• Important areas related to project management include
– motivation
– influence and power

– effectiveness
Ways to Influence that Help and Hurt Projects
• Projects are more likely to succeed when project managers influence with
– expertise
– work challenge
• Projects are more likely to fail when project managers rely too heavily on
– authority
– money
– penalty
• Project managers can apply Covey’s 7 habits to improve effectiveness on projects
– Be proactive
– Begin with the end in mind
– Put first things first
– Think win/win
– Seek first to understand, then to be understood
– Synergize (interaction or cooperation of two or more organizations, substances,

or other agents to produce a combined effect greater than the sum of their
separate effects.)
– Sharpen the saw
Empathic Listening and Rapport (a close and harmonious relationship in which there is
common understanding.)
• Good project managers are empathic listeners; they listen with the intent to understand.
• Before you can communicate with others, you have to have rapport.
• Mirroring is a technique to help establish rapport Professionals often need to develop

empathic listening and other people skills to improve relationships with users and other
stakeholders.
Improving Relationships between Users and Developers
• Some organizations require business people, not technical people, to take the lead in
determining and justifying investments in construction industry.
I. Organizational Planning
• Organizational planning involves identifying, documenting, and assigning project roles,

responsibilities, and reporting relationships.
• Outputs and processes include;
– project organizational charts
– work definition and assignment process
– responsibility assignment matrixes
– resource histograms
Figure 9-2. Sample Organizational Chart
II. Staff Acquisition
• Staffing plans and good hiring procedures are important in staff acquisition, as are
incentives for recruit and retention
• Some companies give their employees one dollar for every hour a new person they
helped hire works
• Some organizations allow people to work from home as an incentive
• Research shows that people leave their jobs because they don’t make a difference, don’t
get proper recognition, aren’t learning anything new, don’t like their coworkers, and want
to earn more money
Resource Loading and Leveling
• Resource loading refers to the amount of individual resources an existing project

schedule requires during specific time periods.
• Resource histograms show resource loading;
• Over allocation means more resources than are available are assigned to perform work at
a given time
• Resource leveling is a technique for resolving resource conflicts by delaying tasks
• The main purpose of resource leveling is to create a smoother distribution of resource

usage and reduce over allocation
III. Team Development
• It takes teamwork to successfully complete most projects
• Training can help people understand themselves, each other, and how to work better in
teams
• Team building activities include
– physical challenges
Reward and Recognition Systems
• Team-based reward and recognition systems can promote teamwork
• Focus on rewarding teams for achieving specific goals
• Allow time for team members to mentor and help each other to meet project goals and
develop human resources
Managing the Project Team
• Project managers must lead their teams in performing various project activities.
• After assessing team performance and related information, the project manager must
decide:
– If changes should be requested to the project.
– If corrective or preventive actions should be recommended.
– If updates are needed to the project management plan or organizational process

assets.
Characteristics of Effective Team Members
For a team to be successful, it needs to have high-performing members. Some of the

characteristics necessary for a highly performing team member include the following:
o Technical skill
o Able to communicate well
o Ability to take direction
o Willingness to give up some personal interests in the interest of team success
o Desire to help teammates operate at a higher level
o A strong work ethic
o Effective communication,
o High trust level,
o Results orientation,
o Interest in membership,
o High energy level and enthusiasm,
o High morale,
o Be Change oriented,
o Cooperation,
o Ability to work with others,
o Safety consciousness,
o Communicative skills,
o Job attitude,
o Time and cost consciousness,
o Ability to meet quality of work standards,
o Ability to meet quantity of work standards
Characteristics of Successful Team Leaders
 Successful team leaders will display the characteristics of successful team members, but
additional characteristics are needed, as well, such as:
o Honesty and integrity

o Respect for others, both on and off the team
o Vision
o Confidence in the team members
o A problem solver that enjoys challenges
o A strong desire to lead
Many successful team members do not want to be the team leader. Many successful team
members do not succeed as team leaders because they lack leadership characteristics.
Characteristics of Successful Teams
Great team performance tends to be a fleeting thing. It is very difficult to maintain a high level of
performance over an extended period of time. Certainly, a successful team needs to have
successful members and a successful team leader. In addition, the team needs to have such
characteristics as:
a) The ability to develop well-defined team performance objectives

b) Mutual, internal accountability
c) High credibility and trust
a) To perform at a high level the team members must know exactly what is expected of the
team and of each member on the team. Any lack of definition will result in hesitancy, and
hence, diminished performance.
b) Accountability is important in performance at any level. For a team, there is hardly any
stronger motivation to perform at a high level than the motivation to support other team
members and not to let the team, or any of its members, down.
c) Credibility and trust are essential to a high-performance team. Each member must trust the
other members. Each must trust the team leader and have confidence that following the
leader will result in the best possible outcome. When the team makes commitments, the
members must believe that the commitments will be kept.
Construction Equipment & Plant Management
 Factors Affecting the Selection of Construction Equipment

1. Standard Type of Equipment.
There is no such definition of standard type of equipment. An equipment maybe standard to one
contractor but may not be to another. It depends on the operations of a contractor/company.
2. Special Equipment.
One definition of special equipment is one that is manufactured for use on a single project or a
special type of operation.
3. Replacement of Parts.
One factor in the Selection of branded equipment is the availability of replacement parts. When
buying equipment, spare parts must be readily available or could be easily purchased. A truck
with a broken axle is useless until the axle is replaced. A contractor should know where to obtain
spare parts for his equipment, if not, then it may be wise to purchase or rent another equipment.
4. Cost of Owning and Operating Construction Equipment.
There is no exact method of determining the probable cost of owning equipment. Carefully kept
records should give information as a guide as to the type of equipment you need to purchase. The
number and the kind of projects a contractor is involved in should indicate what kind of
equipment he has to purchase.
5. Economic life of construction equipment.
The owner of the construction equipment should be interested in obtaining the lowest possible
cost per unit of production. In order to accomplish this objective, he must follow an informed
program of equipment replacement. How many years will he use his equipment? Do his
maintenance costs warrant the operation of the equipment or is there a need to dispose the
equipment and buy another one? The owner must consider all the costs related to the ownership
and operation of the equipment. The costs to be considered are: depreciation and replacement,
investment, maintenance and repairs, downtime, obsolescence. An analysis of the effect which
hours of usage will have on each of these costs will establish the time at which a machine should
be replaced.
6. Sources of Construction Equipment.
Contractors are frequently concerned about whether to purchase or lease construction equipment.
Under certain conditions, it is financially advantageous to purchase whereas under the conditions
it is more economical and satisfactory to rent it.
Specific Factors Affecting Selection of Construction Equipment
• To be Competitive – contractor’s equipment spread must be competitive – mechanically

and technologically.
• Most often, a piece of equipment does not work as a stand-alone unit. Work in groups.
• In some cases, value of equipment may be greater than the contract value – used over a
series of jobs.
• Equipment intensive operations come with major risks.
• Selection of the most suitable equipment
• Equipment must pay for itself.
– Should earn more than it costs.
• Not possible to own all types and sizes of equipment
• Questions to be asked:
– Is project large enough to justify purchasing?
– Is it possible to dispose of the equipment at reasonable price?
– Can the equipment currently owned do the job, though not ideal?
• Ability of the equipment to perform required work

STAY HOME 10 SAFE OR SAVE YOUR LIFE FROM PANDEMIC COIVID -
19!!
• Should earn more than it costs
• Standard equipment vs. special equipment
• Owning and operating costs
– Cost of equipment
– Severity of conditions under which used
– No. of hours used per year
– Care in maintenance and repair
– Salvage Value
Factors which affect the cost of owning and operating equipment:
o cost of equipment
o severity of conditions under which used
o number of hours used per year
o number of years used
o care in maintenance and repair
o salvage value - demand for used equipment
Ownership costs:
o investment
o depreciation
Operating costs:
o maintenance
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o repairs
o lubrication
o fuel
o labour
Investment costs:
o interest on money invested
o taxes
o insurance
o storage
 Realistic approach:
o for each year the equipment is used deduct from its earnings an amount equal to
the annual cost of depreciation.
 Annual average cost of interest - based on average value of the equipment during its
useful life.
• Example:
o original cost of equipment = ETB.500,000
o Estimated useful life = 5 yrs.
o Average annual cost of depreciation = 500,000/5

= ETB.100,000

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Three Methods by which a Contractor may secure the Use of Equipment;

1. Purchase
2. Rent (Lease agreement)
3. Rent to own
A. Advantages of Owning Equipment
1. It is more economical if the equipment is used sufficiently.
2. It is ready available or immediately at the disposal of the owner.
3. It is better maintained and better in mechanical condition
B. Disadvantages of Owning Equipment
1. It is more expensive than renting.
2. Substantial investment is required
3. The ownership may influence the contractor to continuously use the equipment in lieu of
more modern equipment.
4. The ownership may influence to do the kind of work using his equipment but that which
may require different equipment.
5. The ownership may influence the contractor to use equipment beyond its economic life.

19!!

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Information Sheet For UC-6 Construction Management Level V

UC- 6: Manage People and Equipment Performance

Learning outcomes includes

LO1. Allocate work

LO2. Assess performance

LO3. Provide feedback

LO4. Manage follow-up

o condition monitoring results

Excellence in performance means: regularly and consistently exceeding the performance

The Importance of Human Resource Management

• People determine the success and failure of organizations and projects

What is Project Human Resource Management?

Keys to Managing People

• Important areas related to project management include

– influence and power

Ways to Influence that Help and Hurt Projects

• Project managers can apply Covey’s 7 habits to improve effectiveness on projects

– Begin with the end in mind

– Put first things first

– Seek first to understand, then to be understood

– Synergize (interaction or cooperation of two or more organizations, substances,

– Sharpen the saw

• Mirroring is a technique to help establish rapport Professionals often need to develop

Improving Relationships between Users and Developers

• Organizational planning involves identifying, documenting, and assigning project roles,

• Outputs and processes include;

– project organizational charts

– work definition and assignment process

– responsibility assignment matrixes

Figure 9-2. Sample Organizational Chart

II. Staff Acquisition

• Some organizations allow people to work from home as an incentive

Resource Loading and Leveling

• Resource loading refers to the amount of individual resources an existing project

• Resource histograms show resource loading;

• Resource leveling is a technique for resolving resource conflicts by delaying tasks

• The main purpose of resource leveling is to create a smoother distribution of resource

III. Team Development

• It takes teamwork to successfully complete most projects

• Team building activities include

Reward and Recognition Systems

• Team-based reward and recognition systems can promote teamwork

• Focus on rewarding teams for achieving specific goals

Managing the Project Team

– If changes should be requested to the project.

– If corrective or preventive actions should be recommended.

– If updates are needed to the project management plan or organizational process

Characteristics of Effective Team Members

For a team to be successful, it needs to have high-performing members. Some of the

Characteristics of Successful Team Leaders

o Honesty and integrity

Characteristics of Successful Teams

a) The ability to develop well-defined team performance objectives

Construction Equipment & Plant Management

 Factors Affecting the Selection of Construction Equipment

4. Cost of Owning and Operating Construction Equipment.

5. Economic life of construction equipment.

6. Sources of Construction Equipment.

Specific Factors Affecting Selection of Construction Equipment