ASSIGNMENT NO -1

ON
PRINCIPLE & PRACTICES OF
MANAGEMENT
(PGPM 11)

SUBMITTED TO:
NATIONAL INSTITUTE OF CONTRUCTION
MANAGEMENT
& RESEARCH (NICMAR) PUNE.
SCHOOL OF DISTANCE EDUCATION
(SODE)
By
Mr. xxx
(PGDPM)
Reg.no.-xxx
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MANAGEMENT
IN
ORGANISATIONS

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CONTENTS
SR.NO.
1
2

DESCRIPTION
SCOPE OF WORK
ORGANISATION STRUCTURE FOR THE

PAGE NO.
4
5

3
4
5

PROJECT
COMMUNICATION FLOW
RECOMMENDATIONS
BIBLOGRAPHY/ READINGS

11
13
14

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SCOPE OF WORK:
Construction of Housing Colony consists of 10 Bungalows for senior executives,
20Apartments in 5 buildings, 100 dwellings for white collar workers and 300 dwellings
for blue collared workers. Colony will have market and entertainment complex.
The Key function required to be carried out as follow:
Planning & Scheduling:
Planning involves formulation of a 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 in to a time scale. It shows the
duration and order of various construction activities.
There are basically 2 stages of planning i.e. Pre tender and post tender
stages.
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.
Staffing:
Staffing is the provision of people to fill the position so created. It involves
Recruitment, Job planning, Interviews, selection and placement etc. .
Directing:
The directing function is concerned with the training to the subordinate to
carryout assigned task, supervising their work and guiding their efforts. The
essence of directing lies in the ability to motivate people individually and as
groups.
Controlling:
Controlling is necessary for ensuring effective and efficient working. It
involves constant review of the work plan to check on actual achievement
and to discover and to rectify deviations through appropriate corrective
measures.
Coordinating:
Since authority coverage to the top of the organizational pyramid, it is
necessary to bring together and coordinate the work of various department
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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.

ORGANIZATION STRUCTURE FOR PROJECT:

Directors
of Firms
Administra
tion (HO)
Project
Coordinator
General
Manager
Project
Manager
Store
Keeper

Billing/
QC
Engg.

Billing/
QC
Engg.
Supervisor

Fitter/Carpenter

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Sr.
Engineer
Jr.
Engineer

QA/QC
Engg.Jr.
Engineer

Surveyor Electrician
&
Mechanic

Supervisor
Labour

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Finishing
contractor

Other
labour
contractors

Project coordinator/General manager/ Project Manager/ Construction

Superintendent/ Planning and Controlling Manager, can be single individual.
Project
Manager/
resource
Procurement
Manager/
Construction
Superintendent all can be centralized in one person depending on mass of
project in terms of quantity of project and precision required in work.
However organization structure and number of staff to be deploy directly
proportion to quantum of work and activity required to be carryout in work
and inversely proportion schedule of work in which project has to be
complete.
Site Organization:
After having decided the organizational structure in a construction company,
the next step is to spell out the tasks, power and responsibilities of all its
functionaries. Telling an accountant that he is to look after the accounts work
or telling the foreman that he is to supervise the daily wage workers at the
site is not enough. Specific job detailing i.e. what is to be done by whom, at
what time and how it is to be done is the starting point of the site
organization. Site organization, in simple terms, means how to organize the
construction activities on site. A typical site organization for a division,
headed by an executive engineer. Important Duties/Roles Executive
Engineer: To coordinate the work of various contractors and to check whether
all necessary instructions have been provided to the contractors. To check
the progress of work regularly and to arrange for rectification of faulty
workmanship or inferior quality material. Clearing all bills related to
construction work for which he is the final authority. To carry out technical
audit and settlement of final contractual dues.
Important Duties/Role of Project Manager :
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 head office depending on the size of the project, policy of the
firm, distance from head office and also his standing within the firm. To
organize, direct and control men working under him. To check the Progress of
work regularly in orders to avoid delay in construction work. To call
periodically joint meeting of several key personnel working at the site to
review progress and to issue instruction for speeding up work, if required.
The duties of the resident engineer, Site engineer etc. and are similar to
those of the executive Engineer, Assistant Engineer etc.

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The setting up of a suitable organization for various civil engineering works is

all the more necessary because the construction industry is a competitive
field of endeavors which is susceptible to many risks, variable labours
condition and diverse construction problems. In order to be effective, an
organization has to follow certain basic principle given below:
Principle of Objectives:
The organizational objectives should be clearly defined. The structure of the
organization should be geared to achieve these objectives at minimum cost
and effort.
The Scalar Principle:
An organizational structure consists of different levels of authority arranged
in a hierarchical manner. The line of authority should be clearly defined from
the chief executive at the top to the first line supervisor at the bottom. This
is known as Scalar principle. The importance of scalar principle lies in the
fact that the understanding of authority relationships within an organization
becomes easier. It also throws light on how different parts of an organization
are created and held together.
Principle of balance between Authority and Responsibility:
In order to work properly, it inessential that everyone knows his duty,
responsibility and authority of powers. Authority means right to act, decide
and command. The delegate will not be able to perform his task properly
unless he is given necessary powers. So, whenever a task is assigned to a
person, he must be given sufficient power to exercise control in order to
achieve desired objectives. Responsibility is the obligation of a subordinate
to perform any job allotted to him by his superiors. A person, who is assigned
responsibility to do a certain job must be given appropriate authority to
achieve the same. Thus authority and responsibility go hand in hand and
must be balanced rationally to produce best results. For example, if a civil
engineer in a construction firm is asked to carry out constructions of different
structure, ands not given corresponding authority to procure the various
resources, responsibility given to the civil engineer would be illogical and
unbalanced.
Principle of Unity of command:
Each person in an organization must know to whom he has to report and
from whom he has to receive order. He should also know the persons both
upwards and downwards whom he is to consult. The principle that each
subordinate report to only one superior is called the "Unity of Command".
This not only avoids confusion but also helps in maintaining definite line of
commands. In order to avoid indiscipline, delay,
Disorder and undermining of authority, a subordinate should receive orders
from only one superior and not from a number of superiors.
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Principle of Span of Control:

According to this principle, there is a limit to the number of subordinates an
executive can effectively supervise. There are many factors on which the
span of control depends, such as the type of work, whether routine or
repetitive, level in the organization, type of problems encountered and ability
of person involved. The optimum span of control varies from person to
person and job to job. Sometimes number six is taken as the effective span
of control.
Principle of Depart mentation:
Depart mentation means the division of an organization in to several distinct
departments or sections. This helps in increasing efficiency and facilitates
the execution of work. In order to obtain optimum results, the function and
scope of each department must be clearly defined.
Principle of Specialization:
According to this principle, activities of the organization should be grouped
as per the functions and assigned to individuals according to
their specialization.
Principle of Communication:
The number of supervisory levels in an organization must be kept as small as
possible. This helps in shortening the line of communication for passing on
information, instructions and suggestions from the chief executive level to
the first line supervisor.
Principle of Flexibility and stability:
Flexibility and stability in an organization are closely inter-related. On the one
hand, an organization should be flexible enough to assess the changes which
often become necessary because of internal and external situations. While
on the other hand, the organization must be stable enough to withstand any
organizational change which becomes necessary for the accomplishment of
its objectives.
Principle of Motivation and Professional Growth:
The organizational structure should be such that it provides enough
opportunities to its personnel for its professional growth and upward or
lateral mobility. Job roles should be such that each member of an
organization achieves professional satisfaction and is motivated towards
loyalty for the organization.
Principle of Continuity:
The organizational structure should be dynamic so that it not only provides
for the activities necessary to achieve its objectives but also for the
continuation of such activities in the future.
This maintains a link between the past and the future. The project
management team is led by a project manager, who is the agent of the client
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and acts on his behalf. He either appointed by the client or is position at

sight by the construction management consultant of the client. He
coordinates and communicates withal the agencies engaged in project work.
In particular, he is accountable for planning, mobilizing, and motivation
directing, coordinating and controlling all the activities at the project site
which are necessary for achieving the project objectives of time, cost &
quality. Loosely, the site in-charge of a major contractor is also referred as
contractor's project manager or general manager or construction manager.
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. To quote example, Turnkey
contractor's project management team comprising of heads of staff and line
department of a typical housing units building construction project of
bungalows, Apartments etc. as shown below:
Establishing Workers' Productivity Standards The basic equation for
determining the workers required for accomplishing a specific activity is as
Workers required = Work quantity X Workers' productivity Standards/
Completion Period
Workers' Productivity Standards = Worker's output norms X production
efficiency factor
Workers' productivity standard is defined as the effort in man-days or manhours needed for accomplishing a unit quantity of work, while working
efficiently but allowing for normal delays and wastage.
Work quantity of the activity involved is expressed in standard work units.
Completion period is taken as working days or hours planned or earmarked
to accomplish the task.
Workers production norms are expressed is man-days or man hours, category
wise required for accomplishing the unit work.
Production efficiency factor is the multiplier used to convert production
norms into productivity standards expected under job condition at the site.
In this basic equation for determining manpower, the quantity of work to be
performed can be accurately estimated from the construction drawings and
specifications. If the work is to be completed within the stipulated period, the
variable in assessment of workers requirement is the productivity standard.
Authority to carry out function:
I.S. 10302: 1982, Indian standards on "Unified nomenclature of workman for
civil engineering", published by its construction management section
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committee includes around95 categories of labours. The trade categories

and crew sizes used for determining construction output also varies with
various agencies publishing output planning norms. On the whole, for a given
project, nomenclature of the trade categories needed for workers' planning,
mobilizing and monitoring productivity, should be identified and
standardized.
Suitable sub junior level Workers
Construction works:
Shuttering Carpenter, wood Polisher, Carpenter helper, concrete Mason,
Mason, Tiling Mason, Mason helper, rebar fabricator, rebar helper, Painter,
painter, helper, Electrician, Electrical helper, Plumber/Pipe Fitter, Plumber
Helper, General Helpers.
Mechanical Trade:
Light vehicle drivers, Heavy vehicle drivers, equipment operators,
Blacksmith, welder, sheet fabricator, auto Electrician, Mechanic/operator,
Helpers, Riggers and other categories.
Actual strength of workers category wise or construction work adjustment for
daily manpower requirement:
Sr. Engineer:
To check the specifications of construction jobs in regard to the quality of
materials, method of workmanship. To plan and organize construction work in
his section in order to avoid delay in the process of work. To keep a record of
all measurements of work done and tests carried out at site. To report
regularly to the executive engineer on all the above matters.
Junior Engineer/Supervisor/Foremen:
To supervise the execution of work at the site in their respective sections. To
place indents of material well in advance to avoid delay in the progress of
construction work. To control and provide technical guidance to workers. To
check and test materials for quality and quantity. To measure the quantity of
work done for the purpose of payment and progress. To report regularly to
the assistant engineer on all matters related to site.
Role of Mistry/Skilled worker:
This category includes carpenters, steel fixers, machine operators, drivers,
fitters, pipe jointers etc. They are usually recruited locally for their respective
jobs. Their job is to keep the work going at the right speed and in the right
manner in their sections.
Role of Laborers:

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They are the ones who assist skilled workers and performed many unskilled
jobs at the site. The expect the right payment and need to be given
clear instructions regarding what to do.
In contractors site organization, key persons involved in a project.

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COMMUNICATION REQUIREMENT AND 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 co-ordinate 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 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.
On the human level, controls often comes down to telling people what to do
and criticizing them or applying other pressures if they dont do what they
are told. This aspect of controlling performance is inescapable. It can pose a
problem because many people do not like to be controlled or to be corrected
for off-standard performance. To a certain extent, the difficulty must be
simply endured. Part of the unique responsibility of the managerial job is to
exert this control over subordinate and to accept and deal with any negative
effects as expressed in anger, resentment, complaints or temporarily
lowered morale. A supervisor who cannot at least partly offset the human
problems of control will be at a distinct disadvantage because performance
standards as far more successful when they are willingly accepted by the
people who must strive to meet them. 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
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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 resource
scheduling. Project duration being fixed, to level or to smoothen the resource
demand avoiding peak sand 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.

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RECOMMENDATIONS
The data available is inadequate, since there are no details regarding the
finance available for the project. If it had been given, it would have been
more feasible to decide the strength of manpower and would also help for
better resource allocation of the project.

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BIBLIOGRAPHY / READINGS
MANAGEMENT A GLOBAL PERSPECTIVE
BY HAROLD KOONTZ
MANAGEMENT IN ORGANISATIONS
THE LESSON BOOK COMPILED BY NICMAR
INTERNET

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