ASSIGNMENT

NICMAR / SODE OFFICE

NAME

Ajay

REG. No.

214-08-11-12287-2161

Course No.

PGCM 11

Course Title

Principles and Practices of Management

Assignment No.

Date of Dispatch

Last date of receipt

Of Assignment at SODE office

ASSIGNMENT
ON

Principles and Practices of Management

PGCM 11

SUBMITTED BY:

Ajay,
PGCM,
REG NO: 214-08-11-12287-2161

ASSIGNMENT:
2

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.
i.

Organization should be as lean and thin as possible with bare

ii.

minimum of personal on company roll up to junior level.

All supervisors to down below will be temporary for project
duration only to be recruited locally from 100km 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 5 buildings, 100 dwellings for white collar workers and
300 dwellings for blue collar 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 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 and
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 and 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.
INTRODUCTION:
Main pillars on which a construction project is laid are proper, effective
and efficient planning and management of material flow. Materials right
4

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 in
efficiency 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.
5

 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 rollup 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 100 km radius from the work site.
6

 The number of workers can be altered according to work

load.
The Complete colony area can be tentatively divided as indicated in the
tabulated form given below:BLOCK

AREA
(sq.m.)

PERSONNEL

NOS

REMARKS

120/BLOCK

Senior Executives

10

10 Bungalows

100

White Collared
Workers

100

Individual
House

80

Blue Collared
Workers

300

Individual
House

A small shopping complex equipped with shops providing daily uses

items and recreation hubs like multiplex is also proposed to be built
along with the housing colony at the Centre of the colony. A park for
children is also been proposed at the entrance.
Apart from these entire basic infrastructures a small medical dispensary
will also be an integral part of the residential colony project.

FUNCTIONS
The key function of construction Project:

1. Planning and scheduling: Planning involves formulation of

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 into a time scale. It
shows the duration and order of various construction activities.
2. 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.
3. Staffing: Organizing involves division of project work into section
and Staffing is the provision of people to fill the position so
created.
4. Directing: the directing function is concerned with the training to
the subordinate t carry out assigned task supervising their work and
guiding their efforts. The essence of directing lies in the ability to
motivate people individually and as groups.
5. Controlling: Controlling is necessary for ensuring effective and
efficient working. It involves review of the work plan to check on
actual achievement and to discover and to rectify deviation through
appropriate corrective measures.
6. 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.
8

Based on key functions we can make a management chart

BREAKDOWN MANAGEMENT
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 engineers through their
senior engineer who is guided by the construction manager. The
functions of the personnel are discussed briefly below:
1. PROJECT MANAGER:
The project manager is a leader of the team.
The project manager will have clear idea about the entire
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 sub-contractors
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.
9

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.
The achievement of these project objectives is closely linked with the
skill, effectiveness and efficiency of the project management team, and
how it is organized for conducting its operations. This team consists of
the functional of heads or the body of manager in a project.
i.

PROJECT COORDINATOR
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.
COST SPECIALISTS: analysis the day to day change in
field of construction financially and run the project
economically.

10

ii.

DESIGN CONSULTANT:
The design manager makes the plan and does the design of
every single member of a structure that has to come in the
project.
As for the residential project, he does prepare the layout of the
entire colony with specification of the every single
apartment and bungalow allocated as per the specification
proposed by the clients.
He prepares the drawings which provide all the essentials for
the structure.
QC INSPECTOR: He takes care in examining the quality of
the all the products from reinforcement, concrete to a completed
building.
SAFETY INSPECTORS: He assures the safe working
condition prevails in the site to all the people working in the site.
Thus he assures that the risk factors in the site are minimized and a
safe working environment is provided.
2. CONSTRUCTION MANAGER
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.
11

 He has a team consisting of engineers ad his sub ordinates for

various works in the field.
The table below gives the outline for the entire assignment as a precise
for the above all discussions:

12

SR.NO

DESIGNATION

QUALIFICATION &
EXPERIENCE

NO

Project In-Charge

Min 15 years of exp in

the field of construction

Asst. Project Manager

Min 10 years of exp in

the field of construction

Account Manager

Construction Manager

Quality Control InCharge

Engineers

Foreman & supervisor

Min 10 years of exp in

the field of accounting
& auditing

REMARKS
From the head
of the project
nominated via
board of
members in
company
Recommended
by the project
in charge
Takes sole
responsibility
for maintain the
cash flow
control for the
entire project

Makes the
entire work
flow operations
in the project

Min 10 years of exp in

the field of quality and
control

Ensures the
project works
are done with
quality

Min 0-2 years of exp in

the field of construction

Min 10 years of exp in

the field of construction

Min 5-20 years of

experience in the field of
construction

20

For site work

For site work

13

INPUT/COMMUNICATION REQUIRETMENT AND FLOW

As discussed above the breakdown in an organization can be categorized
precisely under four departments namely,
Planning and Infrastructure department,
Finance and Marketing department,
Quality department and
Execution department.
The functions of all the above departments are explained elaborately below:
PLANNING AND 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,
14

 A coordinative effort between these two divisions will ensure that the
product is ready for the execution team to deliver.
FINANCE AND MARKETING DEPARTMENT:
The team will work around the year to ensure that the required cash
flow is 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 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.

15

 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 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.
COMMUNICATION FLOW
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 coordinate various activities in a project.
Motivation is very essential in modern management technique. The job
of managerial person is to motivate the workers for effective working.
This can be achieved by economic, psychological and sociological
satisfaction of workers.
Functional authority is the common thing in organization. It is the power
which an individual or department may have delegated to it for specific
processes, practices, policies and related matters. A Managing Director
may have the complete authority to manage the company subject to the
16

superintendence and control of board of Directors. But he is not expert

in every function in the company and has officer responsible for
technical, production, finance, personnel matters etc. Theoretically all
these officers must give advice to managing Director and the latter alone
will issue instructions. However, Managing Director delegates authority
to these officers to issue instruction directly to the line organization.
This is called functional authority. Since functional authority is an act
of delegation, it may create confusion. A project manager reports to the
managing Director. He may receive instruction from Finance Manager
who is of equal status. Functional Manager generally lay down the rules,
procedures, forms, norms, time schedule etc. in regard to the discharge
of work. Line Managers function within the framework.
The main objective of any management, i.e. to achieve a time cost
balance relationship by proper planning and scheduling the project has
already been explained in previous clauses. Man power and equipment
have been assumed to be available as and when they are needed, which
is off course not usual. The basic planning problem is therefore, how to
decide between alternative ways of using resources such that the best
profits are obtained. These decision are perhaps more difficult that the
management has to face.
The resource analysis report allows a manager to best use all means at
his disposal. It is a technique to level out the peaks and the valleys that
prevail in the managers industry. In planning resource requirements,
therefore, the following key questions have to be answered.
What are the total requirements of resource for a project over its
duration? If resource available are insufficient than what is the minimum
duration by which the completion period of the project can be delayed?
What is the best utilization of the available resources to carry out the
project in a fixed time? There are two basic problems involved in
17

resource scheduling. Project duration being fixed, to level or to

smoothen the resource demand avoiding peaks and valleys as far as
possible. It is called resource aggregation, i.e. unlimited resources are
available for disposal. With fixed availability of resources, to minimize
the project duration, i.e. Resource allocation. It occurs when there is
scarcity of resources.
The above discussion is precisely shown in the flow chart below:

Client

Consultant

Constructor

Needs

Design and

Management

Subcontractor

Suppliers

Fabrication

Parts production

Capacity

Material

Studies

Use

Site
Construction

Production

Information Flow (orders, programs estimates, procedures, etc.)

Resources Flow (supplies, finished products, equipment, etc.)

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
18

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.
CONCLUSIONS
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 Materials, services and
Suppliers. A real example was used based on the quality document obtained from
one company. Later, other documents used by the company may be included.
This will allow for the registration of the experiences. The Organized 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 of its collaborations.
The Recommendations include:
Ensuring the early involvement of the key project team member that have
expert knowledge so that an appropriate level of client satisfaction and
value can be defined.
Establishing of subcontractor a supplier relationship by selecting teams
based on value rather than lowest price.

19

 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 program.
Developing and implementing sound risk management processes.
Dealing with the risks and rewards by using modem commercial
arrangements such as collaborative contract forms target cost and open
book accounting.
Using non adversarial forms of contract 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.

BIBLOGRAPHY:
Chapter on Organization Management Koontz Odoneal McGraw Hill
Publications
Report of the Committee on the Placing and Management of Contracts
for Building and Civil Engineering Works - Banwell, H.
Modeling the Construction Process Using Plans of Work - Hughes, W

20

21