Project Man Slide 3

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Projekbestuur 4A

Pro ect Mana ement 4A

Copyright D Kruger 2010 UJ1

Unit 3:

Effective and Efficient Site

Management


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Aim of this unit. This unit discusses various management tools

and concepts for improving the efficient andeffective utilisation of resources on the site.

We focus on these tools to understand theuse and deployment of such tools.


managers to attain both effective and efficientmethods on site.

Ways and methods for the measurement of

the construction organisations performance isdiscussed.


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Efficiency The ability to get things done correctly.

Ratio of output to input.

Efficient manager achieves higher outputs

(results, performance) with less inputs

materials, labour, mone .


Minimise cost of resources and maximise

output for given imput.


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Effectiveness The ability to do things right.

Effective managers select the right things to

do as well as the right method to use.

Concentrate resources and efforts on the right

thin s to do.



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Current nature and pressures on theConstruction Industry

To maximise customer relationships.

Supplying what the customer wants.

Retaining long-term customers by maintaining


Ensuring long-term workloads and cash flow

Surviving in highly competitive market.

Each project must have a successful outcomefor both contracting parties.


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Organisational structures Organisational structure must facilitate or

improve company performance.

Various types of structures: Entrepreneurial

Bureaucratic


Matrix


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Entrepreneurial Structure (Fig 3.1) Starts out as sole trader.

Activities focused on the owner/manager

Extend the capacity of the owner by attachingothers to him/her.


mass is reached.

With growth eventually reaches a stage where

owner cannot further manage effectively and

efficiently because of many varied demands.


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Bureaucratic structures Hierarchical structures with multi-layers of

supervisors and subordinates

Authority of superior is legal or rational and islinked to level of office.

P ramid sha ed rovidin line and staff


structure (see figure 3.2) Organisational control exerted through CEO

Main features See list on p27.


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Matrix Structure (See figure 3.3) Each member has specialist function with

overlapping competence to other groupmembers.

Matrix overcomes disadvantages of bothbureaucratic and entrepreneurial structures.


groupings.

Clear lines of authority and accountability isestablished.

Allows for better reaction to dynamicoperating environments.


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Leaderhip Leaders are born not made..? . Plato

Styles of leadership (fig 3.4, 3.5 & 3.6)

Authoritarian leader controls amount and natureof work of subordinates

Democratic group determines own work


schedule and methods Laissez-faire abdication of responsibility.

Subordinates make decisions

Charismatic leader attracts a personal following

who puts great faith in quality of leader.


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Construction Site Management Construction Site Manager (CSM) conducts,

controls, administers and heads the

construction team on site. SM stands at the heart of the construction

process


SM plays crucial role in the success of theirorganisations

SM must have key managerial skills

Prime functions are communicating, planning& organizing.


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Key managerial skills for Construction SiteManagers

See table 3.1 for rankingwhy is this?

Forecasting

Planning


Controlling

Motivating

Co-ordinating Communicating


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Construction Site Manager Most demanding, responsible function in

construction process.

Characterised by high work overload, longworking hours, high level of conflict.

SMs must be dedicated individuals with


extremely strong character. SM link between senior management and site

personnel.

Control of day-to-day activities using clearlydefined targets of performance.


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Time allocation for Construction SiteManagers

See figure 3.8

Administration 25%

Work allocation 19%


Checking 14%

Problem solving 11%

Health & safety 9% Other 7%


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Key issues for attaining an efficient & effectiveconstruction site (Study Table 3.2)

Managing people = respect and courtesy

Enforcement of rules = fairly and consistent Innovation = create correct environment

Lead by example


-

working practices

Communication = all involved

IT = be familiar and make best use of IT

Training = undergo and ensure adequate training

Delegation = be prepared to delegate


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Critical success areas for CSM Completion of project on time

Completion of project within budget

Attaining specified quality levels

Problematic issues affecting above


ea a e y cons era ons Obtaining information (communication flow)

Technical knowledge (CPD requirements)

General paperwork & administration verytime-consuming!


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Summary See text block on page 39 Future extremely prosperous

Shortage of skilled workers

Contracts are under-staffed

Site-based paperwork ever-increasing

Extremely long working hours

Evolvement of site managers role Position of immense responsibility

Training crucial



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Organisation Development & Growth(p39)

Methods of growth:

Internal development

Acquisition or merger


Vertical - acquisition of supplier Horizontal combining with similar activity

Conglomerate completely unrelated

Joint development - JVs Choice between above is trade-off

between cost, speed and risk.


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Strategic Analysis and corporativeplanning (see Fig 3.12)

For correct decisions regarding growth

Key issues: Human factors

Timeliness


Business principles

Steps required Current objectives

Internal appraisal External appraisal


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Network Organisations (new corporativestrategic thinking)

Four types are available (table 3.4)

Productive network (in one organisation) Bilateral network (joint ventures)

Hun Network (Turnkey projects)


Federation (partnerships) Applicable to construction as mechanism for

obtaining/maintaning competitive advantage

in dynamic environment


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Best Practice and Benchmarking (p49) Implementing best practice is acid test for any company

Companies face stiff competition

National boundaries are no longer constraints

Production excellence and best practice is central element in

overall success

For Ps of Best Practice Purpose


Process

Performance measurement

Implementation process (fig 3.15) Identify best practise

Benchmark

Identify critical success factors (CSF)

Formulate strategy for improvements


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Management Theory Fayols approach

Activities of the organisation

Elements of management Principles of management

Webers ideas


Distinguished between power and authority Three categories of leaders

Charismatic

Traditional (custom)

Bureaucratic


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Management theories Taylor

Obsessed with maximising efficiency

Assumed people to be essentially lazy,disinterested in organisation, basically irrational,

incapable of self-control.


studies)

Proposed Scientific Management


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Motivational theories Maslow

Pyramid of ascending needs (fig 3.16)

Need acts as motivators as long as it remainsunsatisfied.

Motivators subject to change depending on


Workers as capable of self-motivation and control

Management has role of catalyst and facilitator

(see table 3.6 for implementation)


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Motivational theories F Herzberg (Fig 3.17 & Tables 3.7 & 3.8)

Demotivators & motivators

Differentiate between factors that lead to job-satisfaction and those leading to job dissatisfaction

Satisfaction and dissatisfaction are not opposites


Motivator factors and hygienic factors

Motivators primary cause of satisfaction

Hygienic factors primary cause of unhappiness


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Motivation Influences

External influences (community, family, social

class) Social comparison

Expectations


Individual differences


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Systems Approach for Construction (p71) Construction project is a temporary

organisation specifically formed to complete a

definable purpose. Starting point is the site

S stem anal sis


Define the system primary task Establishment of boundaries

Identify component parts of system

Inputs, conversion process, outputs, feedback loops

Define the environment of the system


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Morale

Morale is the attitude of individuals and groups

towards their work and the working environment.

Morale determines how well or how badlypeople perform

Factors to identify and measure


Labour turnover Level of absenteeism

Timekeeping

Number of accidents Quality of work

Number of grievances & disputes


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Influences on Morale Adequacy of Supervision Lack of leadership

Poor delegation

Inadequate knowledge of job

Poor interpersonal skills

Lack of carin and su ort


Victimisation Excessive disciplinary measures

Personality conflict

The job itself Too much or too little work

Organisational climate


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Group Dynamics Formal and informal groups

Group processes (table 3.9)

Group pressure



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Organisational culture Vital aspect for motivation, morale and

change management

Can be formed or influenced by: Society culture

Dominant leader


Company history Competition

Customers

Legislation Goals, values and beliefs


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Case Study Carefully read the case study and answer

questions 1 3.



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Summary

Crucially important to ensure maintenance and

improvement of construction site efficiency andeffectiveness.

Importance of motivations and morale on a


.

Case study highlights most of the theory covered.

Documents

Project Man Slide 3