PGPPM11

Course No. PGPM 11 – Management in OrganisationName: Senthil Kumar.M, Reg.No.29-01-31-6690-2102(PGPPM)

Management in OrganisationA. Scope of Work

The Scope of work is to execute the contract of Construction of Housing Colony for an

Industrial Group in Maharashtra which has 10 Bungalows for Senior Executives, 20

Apartments in five buildings, 100 dwellings for white collar workers and 300 dwellings

for blue collar workers with market and entertainment complex. The Project Manager is

asked to evolve an Organization Structure with a set of conditions.

Introduction to Management:

“Management can be defined as all the activities and tasks undertaken by one or more persons for the purpose of planning and controlling the activities of others in order to achieve an objective or complete an activity that could not be achieved by the others acting independently.”

Management as defined by well-known authors in the field of management contains the following components:

Planning Organizing Staffing Directing (Leading) Controlling

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For definitions of the above terms, see the following table:

“An organization structure is effective if it facilitates the contribution of individuals to

the attainment of enterprise objectives”

“An organization structure is efficient if it aids accomplishment of objectives by people”

To an employee, an organization structure is likely to be one that operates without waste

or carelessness and makes for work satisfaction, has clear cut lines of authority and

proper exaction of responsibility , allows reasonable participation in problem solving ,

gives provision for job security and standing, furnishes an opportunity for personal

development and keeps pay rates as high as possible.

With the above lines of Koontz and O Donnell, this assignment of evolving an

organization structure for the housing colony for the Industrial Group in Maharashtra is

taken up in the following lines.

B.Functions:

1. Identification of Key Functions to be carried out for the project:

Construction project particularly housing projects are to be executed implementing many

parameters and dimensions. Each house will have one owner and their satisfaction levels

and requirements usually vary. In order to execute the project to the satisfaction of the

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customer abiding the specifications and conditions in the contract and also achieving the

objectives of our construction company for the project, the following key functions are

identified for the project.

1. Project Manager or Project Management

2. Planning, Quantity Estimation Survey, Costing and Scope Management.

3. Direct Execution at Site.

4. Accounts & Administration.

5. Project Health, Safety and Environment Management.

6. Quality Assurance and Quality Control

7. Time office and Industrial Relations

8. Plant & Machinery operations and Maintenance.

Enclosed - Fig 1 – Time spent in carrying out Managerial Functions for Housing

Colony for Industrial Group

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2. Breaking down the Managerial functions up to final level.

In every organization we decide how many subordinates a superior can manage.

Because there is a limit to the no. of persons, a manager can supervise, even though

the limit varies depending on situations, it is found that this number is usually four to

eight subordinates at upper levels and eight to fifteen or more at lower levels.

In addition, the following factors also play an important role in deciding upon the

structure.

1. Subordinate training - The better the training of subordinates, the less the

impact of necessary superior – subordinate relationship. Well trained subordinates

require not only less of their manager’s time but also fewer contacts with them.

2. Delegation of Authority - If a manager clearly delegates’ authority to undertake

a well defined task, a well trained subordinate can get it done with a minimum of

superior’s time and attention.

3. Need for Balance – The correct principle of span of management is that there is a

limit in each managerial position to the number of persons an individual can

effectively manage, but the exact number in each case will vary in accordance

with the effect of underlying variables and their impact on the time requirements

of effective managing. This basic principle does exist has not been superseded

and is useful in guiding managers towards ably managing more subordinates and

simplifying organization.

The following are the usual methods for departmentation or organization structure.

A. By time

B. By numbers

C. By Enterprise Functions.

D. By Territory

E. By Product

F. By Customer

G. By Marketing Channels

H. By process or Equipments.

I. By Service Departments.

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Considering the nature of the project and being a construction project, the functional type of organization will be well suited for this project. It has the following advantages and disadvantages.Advantages:

Logical reflection of functions. Follows principle of occupational specialization Maintains power and prestige of major functions. Simplifies training Means of tight control at top.

Disadvantages: Responsibility for profits at top only. Over specialization and narrows viewpoints of key personnel. Limits development of general managers. Reduces coordination between functions. Makes economic growth of company as a system difficult.

Considering all the above factors, advantages and disadvantages, the organization structure for housing colony is formed. The typical functional type organization chart and Skills versus management levels chart are given in the as follows.

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C.Input / Communication Requirement and Flow

1. Evolving Required Flow of Communication

According to Koontz and O Donnell “The more clear the line of authority from the

ultimate authority for management in an enterprise to every subordinate position , the

more effective will be responsible decision making and organized communication.”

The project requires that the communication generated at the topmost level of the project

(the Project Manager) should reach the Foreman level and similarly the feed back should

reach the Project Manager. The flow of communication for this project is arranged in

such a way that the functional heads shall discuss between each other and the Project

Manager can discuss with the Functional heads. The lower white collared staff shall

restrict their communication to the other Functional heads in terms of requesting their

needs.

Usually the communication regarding the daily activities shall be restricted to the

function heads who in turn will communicate the major problems / significant decisions

to the Project Manager. Project Manager shall have a meeting with the Function heads to

discuss on the plan and implementation.

Communication from the customer shall be routed through the Planning Department to

the Execution team and the Project Manager, which will ensure that proper

documentation, is established.

Line members who are directly responsible for the construction shall invariably

communicate with the staff function who support the activities of construction on day to

day basis.

Staff members in pure staff capacity shall investigate research and give advice to line

managers.

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D.Authority to carry out functions

1. Assigning Responsibility, Correlating authorities to perform the tasks in the

project.

The responsibilities of the personnel involved in the construction of the project and the

authority delegated to them shall be as follows.

A. Project Manager

Responsibilities Authority to be delegated by the

management

Ensure Project Completion in Time.

Ensure preplanned parameters such

as Cost, Quality, and Safety etc are

achieved.

Ensure Customer Satisfaction

Ensure Organizational objectives

from the project are achieved.

To take any decision regarding the

project.

To select the team required for the

work.

Financial Independence.

b. Planning Manager

Responsibilities Authority to be delegated by the Project

Manager

Assist Project Manager to ensure

Cost efficiency of the project.

Continuous schedule monitoring

and suggesting action plan in case

of any variations.

Contracts Management.

Preparation of client bills and

vendor bills for the work done.

Request procurement of materials

as per specifications etc.

Communication with the customer

To take decisions or assist Decision

Making on Financial Matters and

Contract Management.

To communicate with his

counterparts to ensure

implementation of systems

followed in the organization.

To mobilize planned resources from

various sources.

c. Execution Head

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Manager

Ensure work is executed as per the

predetermined plan and other

parameters.

Mobilize resources required for the

work.

All line members involved in direct

execution shall report to him.

Shall directly discuss with the

Project Manager and clients

regarding work progress etc.

d. Manager (Accounts & Administration)


Manager

Responsible for handling the entire

finance of the project including

book keeping.

Comply all statutory provisions of

the state, centre and Construction.

Review the costs incurred and sales

done at the end of every month.

Shall be independent of the

execution and will have the

authority to take any independent

decisions regarding finance.

d. Manager (HSE), Manager (Quality Control & Assurance) and Engineer (Plant &

Machinery)


Manager

Responsible for ensuring

achievement of predetermined

parameters in their functional

departments.

Shall be independent of the execution

and will have the authority to take any

independent decisions regarding their

departments in consent with the Project

Manager.

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All staff members assisting the Managers and Department heads shall be responsible for

direct execution of the work and shall be responsible for the productivity of the workmen,

Plant & Machinery they are engaging and shall be accountable for the materials they

procure for the execution of the work.

They will have authority to engage workers and procure materials as per the procedure

laid out by the Execution Head / Project Manager and also use the available Plant &

Machinery.

It should be noted here that the function managers have to delegate the major portion of

their work to their subordinates, who shall also feel that there importantance in this

project.

2. Control on the Project – Concepts & Desired Steps.

According to Koontz and O Donnell “the primary responsibility for the execution of

control rests in every manager charged with the execution of plans”

Control Systems are essentially the same for cash, office, procedures, morale, product

quality or anything else. It always involves the following three steps.

1. Establishing standards.

2. Measuring performance against these standards.

3. Correcting Deviations from Standards and plans.

The following broad steps will be followed in this project.

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Establishing Standards

A Budget of Cost provision shall be prepared before the start of execution and

shall be approved by the management. This budget will have a detailed breakup of

provision in four heads namely Labour, Material, Plant & Site Establishment.

The Activity wise plan with Work Breakdown Structure shall be prepared which

shall be the base plan for the project.

Method Statements and Quality plan shall be prepared for each and every activity

of work.

Safety, Health and Environment (SHE) plan shall be prepared covering all

potential hazards, risks, action plan etc.

Project Risk plan shall be prepared for all critical activities and contractual

matters.

Measuring performance against these standards.

A Job Cost Report for the project shall be prepared every month and comparision

with the budget shall be made.

Schedule variance monitoring shall be done every fortnight.

Product Quality checks shall be done every day and deviations will be recorded.

Post pour checks will also be conducted.

The Safety Management shall be integrated in each and every activity.

Risk Review Committee shall be formed and every risk will be thoroughly

analyzed.

Correcting Deviations.

Correction of Deviations shall be implemented by discussing the deviations in a

review meeting along with the Department Heads and after concluding the

suggestions from each and every member.

3. Assigning Junior Level workers to Function and verifying their sufficiency.

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Considering the importance of the project the following Junior Level workers are

assigned to the function as below.

Sl.No Category of Workmen Nos Assigned to Function

1 Technical Assistants 2 Planning

2 Accounts Assistants 2 Accounts

3 Mechanics 1 Plant & Machinery

4 Electricians 3 Plant & Machinery

5 Helpers 5 Plant & Machinery

6 Supervisors 9 Execution Head & Engineers

7 Assistants 2 Quality Assurance.

8. Safety Stewards 3 HSE Department.

TOTAL 27

The above junior workers will be engaged in Daily paid basis / Monthly paid basis from

the local areas within 100 Km radius.

As the direct recruitment or posting from the organization is restricted, the 27 nos. of

workers in the temporary category seems to be reasonable. Further the project is also a

lucrative one for the organization. Considering the scope such as bungalows, Apartments

and number of dwellings, the supervision, documentation, maintenance, Quality

Assurance etc will be of utmost importance and hence this strength stands justified.

However the requirement will be reviewed once in every three months depending on the

progress of the project.

E.Recommendations

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The following points will be my recommendations to the Project Manager.

Time is the essence of the contract. Hence top priority should be given for

completion of the project in time. If this aspect requires reorganizing the

manpower, staff, function etc. it should be done without any hesitation. Projects

completed as per schedule will surely have all the other parameters in its place.

Control Measures should be initiated right in the beginning of the project or else it

will not be possible to implement them once the project is progressing.

The Project Manager shall ensure that the Junior Staff and workers are delegated

enough responsibility and by executing that they take the pride of the same.

Work life Balance is one more important aspect which is not prevailing in

projects, particularly construction projects. Steps should be undertaken to initiate

get together, meetings and informal visits to colleagues place etc which will help

the communication process flow in a very smooth way.

The project is awarded to us by a Customer who trusts our capability, integrity

and efficiency. Hence it is utmost important to achieve ‘Customer Satisfaction’

and meet the ‘Objectives of the Organization’.

F.Biblography

1. Essentials of Management – Koontz and O’Donnell – McGraw-Hill Publishing

Company Limited.

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PGPPM11