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Saturday, 13 December 2014


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 Organisation structure with following conditions.
i.                   Organisation should be as lean and thin as possible with bare minimum of personnel on company roll up to junior Engineer level.
ii.                 All supervisors to down below will be temporary for project duration only to be recruited locally from 100 km radius.
Suggest and discuss an organisation structure denoting responsibility, authority, communication control for all facts of construction work and management functions as visualised by you.
Housing colony consists of 10 Bungalows for senior executives, 20 Apartments in five buildings, 100 dwellings for white collar workers and 300 dwellings for blue collared workers. Colony will have market and entertainment complex.

This Project report is about Principles & Practices of Management; Organisation 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 form they work for. The Project contains various types of residence like bungalows for senior executives and apartments and 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 are listed below:-
·        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 for proper execution of project.
·        Deciding optimum quantity of resources to be utilized at each level and stage of project.
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 value in the process.
All the authorities guiding personnel at different level of construction project should be in perfect synchronisation and well coordinated. Flow of management 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 surplus 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 should revolve:-
·        Committed leadership.
·        Determining the 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 of financial and cash flow.
The present assignment paper is done by keeping in mind the above factors for achieving the best and profitable output.
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 the junior level.
o   This will cut down the cost involved in arranging and maintaining the manpower.
o   Avoid over crowded situation on construction site.
o   Easy and less hectic management system.
o   Less controlling and monitoring required.
·        Supervisors below junior level will be on temporary job basis and to be recruited locally from 100KM radius.
o   No accommodation is must for local workers.
o   The frontline local supervisors are know the nature and work style of the locale worker because of the locality in which they live, so that they can easily handle the masons and labours.
o   Only travelling arrangements can be made on demand as the people are around 100km radius from the work site.
o   The number of worker can be altered according to work load.
The Compete colony area can be tentatively divided as giving below:-
1.     10 Bungalows for Senior executive
2.     100 Dwellings for White collar workers
3.     300 Dwellings for Blue collar workers
4.     Market & entertainment complex
Market equipped with shop providing daily uses items and entertainment place like amphitheatre, Game rooms for children, Small Library, Children play area and A Park for Senior citizens to be build along with the housing colony at the centre of the colony.
Apart from these entire basic infrastructures a small medical dispensary will also be an integral part of the residential colony project.

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.
A complete layout of project gives a crystal clear idea about the volume of the project and depicts the clear picture of the way and probable routes for executing the project.
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 time duration of a project time schedule a complete idea about the total time required in executing the project can be easily deduced.
S. No.
Master Planning
1.5 months
Obtaining approvals from authorities.
1 month
Planning management of Resources, Equipments and personnel
15 days
Arrangement of various Utilities like electricity & water etc.
1.5 months
Constructing facilities like raw material storage, Electricity & water distribution centre, canteen etc.
2 months
Finalizing vendors for various products required in the project.
1 month
Site preparation and excavation
1 month
Marking the land as per layout.
1 month
Civil Foundation.
2.5 months
Construction of buildings.
20 months
Construction of various other infrastructures like shopping complex.
15 months
Final finishing of buildings.
1 month
Evaluating cost of construction.
15 days

Total Duration of Project
3 Years (Approx.)

Planning routes for receiving and transporting the raw material is vital for avoiding any delay in project execution and necessary for proper flow of material from one place to another at construction site without causing any congestion and dumping. The main points to be considered while planning effective material handling process and started as under:-

·        Ample space for material receiving to be planned.
o    Raw material storage yard along with small auxiliary yards to be incorporated in planning.
o    Check points & weight bridges to be installed for monitoring the material consumption.
o    Go downs for finished goods required, shall also be provided in Material handling planning.
Organising is the second step 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:-
·        Cresting a structure
·        Assigning duties
·        Providing tasks to perform
·        Set hierarchy for smooth and efficient working
·        Sort-out issues with authorities

The above chart is the outline for the breakdown for the management in the organization. The top most position in any project is the project manager. The orders are executed by the junior level through their engineers who are controlled and guided by their team heads. The functions of the personnel are discussed briefly below:-
I.              PROJECT MANAGER
·        The project manager is a leader of the team.
·        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 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.
·        Project manager has to guide & monitor the activities of both the Technical and Administrative which comes directly under his control.
·        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 the project
·        He is assisted by:
                                                             i.      QUALITY ENGINEER - He takes care in examining the quality of the all the products from reinforcement, concrete to a complete building.
                                                           ii.      MAINTENANCE ENGINEER – responsible to maintain the condition of all equipment at site, ensuring the proper working of the equipments.
·        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:
                                                             i.      SITE ENGINEERS– Supervise the execution and all the erection activities at site. Authorised to instruct and control junior level and workers.
·        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:
                                                             i.      SCHEDULERS – prepares the work flow for a project.
                                                           ii.      DOCUMENT CONTROLLERS – maintains all of the records of the project.

·        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 led them providing safety and security to the project and people linked with it.
·        He is assisted by:
                                                             i.      SAFETY INCHARGE– responsible for the safety of people working at the construction site.
                                                           ii.      SECURITY INCHARGE – provides safety to the people working at site and valuable material lying at site
·        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 company’s potential in an effective and positive way in front of them.
·        He is assisted by:
                                                             i.      TENDERING & COST SPECIALIST – does all the tendering required for bagging any project. Analysis the day to day changes in field of construction financially.
·        He looks after all the capital required to run a project.
·        All the items required and purchased under his surveillance.
·        Managing all the financial activities like expenses, salary are his sole responsibility.
·        He is assisted by:
                                                             i.      ACCOUNTANT – does accountings for the project.
                                                           ii.      PURCHASE ENGINEER – purchase items required in the construction and all other auxiliary system.

The table below gives the outline for the entire assignment as a precise for the above all discussions:
Sr. No.
Qualification & experience
Project In-charge
Min 20 years exp in the field of construction
Forms the head of the project nominated via board of members in company
Operations Head
Min 15 years of exp. In the field related to constructional operations
Makes the entire work flow operations in the project
Project Control Head
Min 15 years of exp. In the field of scheduling and document controlling
All data & document controlling in his scope
Construction Head
Min 15 years of exp. In the field of construction
Entire project execution work
Service Head
Min 15 years of exp. In the field of safety in site & security handling
Ensures the project executing safely
Marketing Head
Min 15 years of exp. In the field of tendering & cost estimation
Handles the responsibility of evaluating tenders of different bidder
Finance Head
Min 15 years of exp. In the field of accounting & purchase.
Takes sole responsibility for maintain the cash flow
Civil Engineers
Min 0-5 years of exp. In the field of construction
For Site work
The number of technical officials – 15-20
The number of skilled labours – 20 (may vary on demand)
Totally around 110 persons required.
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
·     Construction department
The functions of all the above departments are explained elaborately below
·   The planning team would work on the Layout 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 team work.
·   A coordinated effort between these two divisions will ensure that the product is ready for the execution team to deliver.

·   The team will work around the year to ensure that the required cash flows are maintained and also to ensure that the work doesn’t 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.
·   The 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.
·   They ensure that the Managers who look after the individual portfolios execute the plans according to the vision and direction of the Program Manager.

·   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 of 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 company time efficiency is gained which at the day’s end earns a lot of profit and fame for the concern.

The structure proposed for the organization of the knowledge based on the Document, Processes, Elements and Basic Materials trees for a small building company has enabled the relation to be made among Material, Services and Suppliers. A real example was used based on the quality documents obtained from one company. Later, other documents used by the company may be included. This will allow for the registration of experiences. The organization and integrated knowledge originated from a classification structure can work as a professional habilitation/updating tool, capable of integrating the knowledge of the area under consideration. Moreover, it can contribute to the strengthening of the technical history of the company and work as a channel to disseminate this knowledge to its collaborators.
·          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 and quality.
·          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 relationship 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.
·          Mobilising and developing people in order to ensure employee satisfaction though integrated teams.


Essentials of  MANAGMENT, An International Perspective – Koontz Odoneal MacGraw Hill Publications.

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