ASSIGNMENT

NICMAR / CODE OFFICE

1. Course - NCP 21

2. Course Title - Management in Organisation

3. Assignment No.

4. Date of Dispatch

5. Last date of receipt -

Of Assignment at SODE office

Submitted By

Name :

Registration No. :

Management in Organisation – NCP 21

 ASSIGNMENT

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 had 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 100km radius.

Suggest and discuss an organisation 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 five

buildings, 100 dwellings for white collar workers and 300 dwellings for blue collared

workers. Colony will have market and entertainment complex.

SOLUTION

Scope of work
The scope of work in order to construct a housing colony for an industrial

group is as follows –

 Grading and preparing the site

 Setting forms for footings

 Excavating the soil for roads and buildings

 Metalling and tarring the roads with proper camber

 Construction of footing/foundation including reinforcement, shuttering, concreting,

curing and de shuttering.

 Construction of pillars/columns (up to plinth level)

 Filling the trenches with soil and compacting till ground level

 Construction of plinth including reinforcement, shuttering, concreting, curing and

de shuttering.

 Filling the soil and compacting till plinth level

 Construction of pillars up to lintel level including reinforcement, shuttering,

concreting, curing and de shuttering.

 Construction of lintel including reinforcement, shuttering, concreting, curing and

de shuttering.

 Construction of pillars up to roof level including reinforcement, shuttering,

concreting, curing and de shuttering.

 Construction of roof slab including reinforcement, shuttering, concreting, curing

and de shuttering.

 Along horizontal and vertical line installation of brick work and curing

 Providing ducts and connections for electrical wiring

 Providing frames for doors, windows and ventilators

 Plastering and pointing the interior and exterior areas including roofs of the

buildings and curing

 Treatment of water before pumping

 Providing flooring / tiling in the required floor area

 Providing electrical wiring.

 Providing insulation to the building

 Providing plumbing, water supply and sanitary fittings

 Providing doors, windows and ventilators

 Distempering or whitewashing and colour washing the plastered surface.

 Painting the doors, windows, ventilators, electric posts and iron grills etc

 Providing the drainage system

 Providing the heating and cooling system

 Providing the fire protection systems

 Providing final grading and landscaping of the site

 Completion / occupancy certificate

In order to get these tasks done, the contractor hires more specialized

independent crews known as subcontractors to perform portions or all of the

construction work. For example, the electrical wiring is generally done by one

subcontractor specializing in electrical wiring, while the landscaping is done by a

completely different subcontractor specializing in landscaping.

 Each subcontractor is an independent business and all of them are

coordinated by the contractor who oversees the job and is responsible for completing

the house on time and on budget.

Functions include –

 Thorough planning and research over the project

 Preparing the plan and finalizing it, after working with an architect on detail

adjustments if necessary, on which builders will work on

 Preparing the estimate, both detailed and abstract, for the project .

 Survey the site, check the property boundaries and setback laws, stake out

foundation corners, and set up erosion control

 Ensuring proper alignment of the roadways.

 Taking detailed measurements and executing accurate tests which are necessary.

 Draw up a materials list and get quotes from 2 to 4 supply yards in the area;

including truss design and ordering

 Obtaining construction site insurance

 Providing temporary utilities on site like establishing temporary electricity from

power company

 Planning, designing, and overseeing all processes

 Ensuring designing and implementing adequate procedures and policies

 Assisting with managing all construction workers.

 Meeting the designers and contractors for accurate scheduling, staffing, and cost

analysis.

 Preparing the progress which is required to compute the remaining estimates.

 Decision making to ensure that quality is optimized.

 Preparing budget reports required to compute the estimates and make decisions

accordingly so that the budgets are maintained.

 Ensuring the materials and equipment necessary for each project is ordered so that

it will be delivered within the scheduled amount of time

 Calculating the accurate amount of staff, material, and equipment necessary to

complete a project.

 Training labourers with safety programs on how to properly handle and dispose of

hazardous materials to reduce any hazards or injuries possible during and after

construction.

 Managing the activities of the workforce, material and equipment deliveries.

 Maintaining schedules, production outlines and deadlines for multiple sites.

 Directing all construction related functions and ensuring proper follow up of all the

procedures.

 Ensuring proper compaction after each layer of metalling and tarring.

 Coordinating the schedule and communications that are necessary.

 Strictly following the laws and guidelines and company procedures.

  Preparing design evaluations and monitor that the projects are completed within the

specific time table.

 Scheduling plans deliveries, and organizing materials.

 Monitoring costs and expenditures throughout project

 Overseeing all aspects of an entire housing contract

 Inspecting the site daily, ensure that plans are properly executed and keeping the

records of the work progress.

 Maintaining an adequate amount of labourers in delays and peak times and

coordinating the activities accordingly.

 Maintaining the documents and contracts properly before, during and after the

construction process.

 Regular meeting of the owners, contractors, and designers to ensure there are no

discrepancies on coordinating their ideas. In case of discrepancies, resolve the

issues.

Communication Flow

The Communication process sets the stage for information and message

flow through an organization. The elements of the process include:

• someone to send the message (the encoder)

• some means for channeling it

• someone to receive it (the decoder)

• feedback mechanism.
 Communication planning pulls the project together. The communication

plan should outline:

• Who (lines of communication sender- and receiver-responsibility and authority)

• What (scope of communication and format)

• How (e-mail, document, telephone, meeting, presentation)

• When (schedule)

• Feedback (confirms message received and understood – document control)

• Filing (retrieval, storing, disaster recovery)

Formal communication

Formal communication, written or oral, follows the chain of command of

the formal organization. The communication flows from the manager to his immediate

subordinates. Each recipient then re-transmits the message in the selected form to the

next lower level of management or to staff members. Formal communication normally

encompasses the transmittal of goals, policies, instructions, memoranda, and reports;

scheduled meetings; and supervisory-subordinate interviews.

Communication flows in four directions: downwards, upwards, and

horizontally and laterally. The following figure shows the flow of communication in a

construction firm.
 Downward communication starts at the top i.e. a manager and flows down

through the project levels to the employees. The major purpose of downward

communication is to provide subordinates with information on goals, strategies and

policies. Downward communication is used to inform, direct, coordinate, and evaluate

employees In this type of organizational communication, distortion of the actual

information occurs. It is likely to be filtered, modified, or halted at each level as

managers decide what should be passed down to employees. This could be made

effective by feedbacks.

Upward communication - . When communication flows from employees to

managers, it is called upward communication. It transfers from subordinate to superior

as that from worker to foreman, from foreman to company manager, from company’s

manager to general manager and from general manager to the chief executive or the

board of directors. In this way, the upward communication makes a chain. Upward

communication can be used in order to keep managers aware of how employees feel
 about their jobs, their co-workers, and the organization. A climate of trust, respect, and

participative decision making will encourage considerable upward communication

Horizontal communication occurs between people on the same level of the

hierarchy and is designed to ensure or improve co-ordination of the work effort. It is

formal communication, but does not follow a chain of command. Effective horizontal

communication can prevent tunnel vision in the organization. Horizontal

communication facilitates the l inking of different areas of expertise and this may

encourage innovation.

Lateral communication takes place between people at different levels of the

hierarchy and is usually designed to provide information, co-ordination or assistance to

either or both parties. Lateral communication cuts across both work areas and

organizational levels. It has the potential to create problems if employees don’t keep

their managers informed

Informal communication

The communication outside the formal organizational structure that fills the

organizational gaps, maintains the linkages, and handles the one-time situations.

Informal communication does not follow authority lines as in the case of formal

communication. It is implicit, spontaneous multidimensional and diverse. Often it

works in group of people, i.e. when one person has some information of interest; he

passes it on to his informal group and so on.

 Informal communication, commonly called “the grapevine”, can begin with

anyone in the organization and can flow in any direction. The grapevine’s prime

function is to disseminate information to employees that is relevant to their needs.

In the construction industry, the following are informal communication

methods:

• Regular contact

• Mind reading

• Motivation to speak

However, for the efficient working of any organization both formal and

informal communications are required.

Project communication instruments

Frequent communication with a project team is always important.. Internet

and server-based communication tools can help. Project managers should consciously

schedule time every day to communicate with team leaders and members.

Communication is the glue that holds a team together working toward the same goals.

Project communication, is internal and external communication between

members of an organization at all levels in order to achieve a mutual goal or goals.

 Project
Communication

Internal External
Communication Communication

Figure 2 Project communication

Source: (Adopted from Le Roux, 1999: 286)

To achieve goals, it is necessary to communicate or interact at various

levels of the organization. This is known as internal communication. Members also

have to communicate with individuals or groups who are not members of the project.

This is referred to as external communication

Instruments of internal communication

Different methods of instruments of internal communication exist:

• Oral communication occurs in the form of meetings, discussions groups, talks,

including the grapevine, interviews, announcements and conservations, both

face to face and over the telephone.

• Written communication takes place by means of letters, circulars, memoranda,

manuals, reports, seminars and minutes of meetings.

 • Non-verbal communication can convey powerful messages in the business

world by means of gestures, appearance or attitudes.

• Electronic communication –It is possible to send messages all over the world at

a very high speed. Messages can be sent and received using computer

terminals, electronic mail (e-mail) and fax facilities.

Instruments of external communication

Every member of a project is involved in communication with customers,

share holders, the media, the government, labour unions, the community and members

of the general public, on a daily basis. The external communication to each conveys a

particular image to the outside world.

Intercultural communication is in many ways far more complicated, e.g.

languages, because participants need to be aware of an increased potential of

misunderstanding. Project team members are part of different sub-cultures. In a project

team there may be communication problems because of these differences and

expressions in different professions.

COMMUNICATION IN THE CONSTRUCTION INDUSTRY

The survey was conducted to establish the current performance of

professional consultants in respect of their communication and communication

instruments in the construction industry. Professionals (architects, engineers, project

managers and quantity surveyors) were requested to respond to the questionnaire. More

than a thousand questionnaires were sent to these professionals in the RSA. The

response rate was less than 10%.

 The following are some of the most important findings:

• Communication is strategic- now more than ever. In an information-driven age,

communication is an integral part of the corporate strategy.

• Writing is still the core skill for communication. Verbal, written and contractual

communication was rated almost the same in importance.

• Results on communication instruments indicate which instruments are high in

importance and for which professionals

Effective communication can contribute towards the success of a project.

Figure 5. Importance of communication instruments used by professionals

Source: (University of the Free State, Department of Quantity Surveying and

Construction Management, 2007) (The ratings are: 1= low, 3= intermediate, 5 = high)

For each project, it is important that the project-related information is fully

documented to ensure that all the people involved understand what has and is

happening. Each project has a great deal of communication and documentation. With

many projects using the same communication instruments, over and over again, the

running of the project will be much easier and more understandable if communication

instruments, plans, structure and flows are a standard process. Standardization will

provide a system for effective management that is not too complex, and may contribute

towards the effective execution and completion of a project.

Assigning responsibility

TASKS THAT HAS TO BE PERFORMED WHO PERFORMS

THE TASK
Aligning and laying of bricks to construct brickwork by applying
Brick layer
mortar and finishing the surface by plastering.
Setting the concrete forms, ensuring correct depth and pitch,
Cement mason
levelling, placing, finishing, protecting and repairing concrete.
Charging construction costs which include labour, material

supervision, tools, equipment costs, supplies and insurance cost Construction

to the applicable contract cost. Preparing financial statement data, accountant

sales commissions, overhead and marketing journal entries.

Managing the flow of paperwork and electronic correspondence,
Construction
track and administer changes, update drawings interact with
Administrative
subcontractors and consultants, complete building permit
Assistant
requirements and noting phase completion dates.
Analyzes the company's costs, does cost-benefit analysis,

analyzes the cost for each production unit, determine methods for

allocating complex processes to units to create exact unit costs, Construction Cost

matches costs to customers to evaluate customer profitability, Analyst

determine process improvement methods, evaluate the

performance.
Oversee functions related to Electrical, Mechanical, Electronic

Packaging, ensures design meet customer expectations, develops

process specifications and design standards, assign projects to

Construction Design
drafters, designers, monitors performance and results of each
Services Supervisor
employee, evaluate departmental processes, recommend

improvements, administer personnel functions, interact and

communicate with customers.

Visiting the site, determine feasibility of preliminary plans by

comparing user's need with structural, electrical, or mechanical

system constraints, revises preliminary plans, prepares design Construction Design

development and final working drawings of proposed projects, Technician

prepare specifications in preparation for bidding, reviews and

approves or investigates requests for payments.

Establishing and enforcing purchasing policies; identifying

resources; negotiating quality, delivery, and price agreements and Construction Director

leases; maintaining ethical standards.

Overseeing financial budgets and staff, purchasing land or Construction Division

homes, implement and complete construction projects to meet President

scheduled timelines, ensure home buyers are satisfied within the

communities of completed construction projects.
Engage in the design of temporary structures, quality assurance

and quality control, building and site layout surveys, on site

material testing, concrete mix design, cost estimating, planning

Construction
and scheduling, safety engineering, materials procurement, and
Engineer
cost engineering and budgeting, , maintain project control of

labor and equipment for safety, to ensure the project is on

schedule and monitor quality control.

Using estimating software bid price for a project owner is
Construction
estimated, decides whether a proposed new product will be
Estimator
profitable, tracks actual costs as the project develops.
Studying blueprints, be familiar with building codes, schedule
Construction
and supervise employees, perform construction duties,
Foreman
scheduling materials and equipment.
Cleaning and leveling the site, excavate for the foundation, build

retaining walls , handle the building materials, including

transporting, identifying and allocating, use construction Construction Laborer

equipment, setting up right of ways, install sewers, water pipes,

dispose hazardous waste.

Handling administrative tasks, have good time management and

human resources management, enter data into a timekeeping and

scheduling system, gather status information, and help to produce Construction

status charts., choose contractors to perform various aspects of Manager

the work, such as plumbing, electrical work and painting, ensure

homes are being erected according to building and safety codes.

Interviewing customers; following warranty guidelines; Construction Quality

scheduling work with subcontractor; monitoring and evaluating Assurance

subcontractor work. Coordinator

Oversee and coordinate the planning, implementation, and

supervision of the project quality control plan., maintain records

relating to testing data, apply statistical quality control

Construction Quality
procedures., develop quality control reports, post construction
Manager
reports and detailed progress reporting , obtain and investigate

complaints; compile and update customer satisfaction

information.
Managing crews of workers at construction sites, responsible for

the efficient use of labour, machines and materials, plan,

schedule work, keep records of the materials used and the Construction

progress made, ensure safety rules are followed, communicate Supervisor

company rules and policies to the workers, read blueprints and

plans, oversee the training of newly hired laborers.

Preparing the right-of-way, constructs pipeline by studying

demand estimates; assess sites and watercourse crossings; Pipeline Construction

conducts various test to ensure the flow of water through the Manager

pipe.
Preparing and installing roofing, repair and thatch the roofs of

various buildings and structures, binds, insulate and seal Roofer

openings in the roofs.

Developing staking sheets; completing and filing forms and

sketches; requesting payment of permit and easement fees; Staking Aide

defining staking requirements.

Planning surveys; verifying construction location; defining lines

and grades, topography, underground facilities, cut and fill; Surveyor

providing maps, calculations, documentation, and illustrations.

Inspects workplaces and directs employees to ensure that people

and property are kept safe at all times, enforce legal regulations

and establish more effective procedures , regularly inspects Safety Supervisor

equipment, tools, and building materials to ensure quality and

safety.
Direct safety programs to train labourers on how to properly

handle and dispose of hazardous materials according to

procedures and policies set by personal corporation regulations Safety Director

and state laws, to reduce any hazards or injuries possible during

and after the site’s construction.

Provide quotations to potential clients, complete work orders,

and identify new potential clients and install tile flooring, shower Tile Setter

walls, and kitchen back-splashes.

Organization Structure
Board of Directors

Chairman

Vice Chairman
and
Managing Director

General Manager

Construction
Manager

Project Manager
and
Contract Manager

Engineering Manager
 Since most of the departments can be outsourced, the structure will be a

lean and modular one. The departments like human resources, marketing and legal

departments can be outsourced. The contract manager is responsible for handling all

the subcontracts. Thus the organizational chart shown in the figure is a very lean one.

The sub junior level workers who can be temporary and locally recruited

are –

 General construction workers

 Heavy truck drivers

 Mechanic and repair helpers

 Plumbers and pipe fitters

 Structure metal workers

 Supervisors

 Cement masons

 Construction helpers

 Well drillers

 Line installers and repairers

 Material moving machine operators

Number Of Personnel At Each Level

The following are the number of people required –

White collared workers – 90

Blue collared workers – 260

The break up will be as follows

BLUE COLLARED WORKERS

Job Title No. of workers
Brick layers 25
Cement Masons 25
Construction Foreman 30
Construction Laborer 86
Construction Supervisor 15
Pipeline/ Plumber 10
Roofer 15
Staking Aide 10
Surveyor 2
Safety Supervisor 15
Tile Setter 15
Electrician 12

WHITE COLLARED WORKERS

Job title No. of workers
Construction accountant 4
Construction Administrative Assistant 10
Construction Cost Analyst 3
Construction Design Services Supervisor 5
Construction Design Technician 15
Construction Director 1
Construction Division President 1
Construction Engineer 15
Construction Estimator 5
Construction Manager 5
Construction Quality Assurance coordinator 2
Construction Quality Manager 2
Safety Director 2
Chief Operating Officer 1
Construction Project Manager 10
Account officer 4
Store Managers 5
 The assumption taken here is that the bungalows are of around 3000 square

feet and the apartments are of 1000 square feet.

The number of people required in each department in a construction project

varies with respect to the area of the place as well as the cost and time. If the housing

colony has to be completed in a short span of time, then the number of workers

required will be more and the cost will increase. If the budgets are high then obviously,

more labour can be used to complete the work faster.

Recommendations –

Construction is a labour-intensive industry, which places heavy reliance

upon the skills of its workforce.

• In the construction sector, a very fast employment growth is expected.

Additionally, excellent job opportunities will exist as the number of job openings

exceeds the number of qualified applicants. Thus, the retention of good people is

very crucial

• The structure of the firm should be such that the firm is able to focus on its core

activities and outsourcing is cost effective. Something that can be done by the firm

at a better quality and lower costs should not be outsourced unless a proper strategy

is in place for supporting the same.

• Good manpower considering shortage of skilled employees in the labour market

and the reduction in the number of qualified workers proper forecasting and
 planning is necessary. Shortage of workforce results in delays leading to a cost

escalation.

• Availability of workforce differs from region to region. Even the cost of man hours

is different in different places. Thus it is necessary to keep these factors in mind

before proceeding with the project.

• Pre-planning for the manpower should be done with a proper estimation of the

required personnel. This will be of great help to avoid labour related uncertainties.

• Management should understand construction industry and realize the importance of

labour resource issues and the need for long-term planning of labour resource

requirements, so allowing them to train and retrain people to address the predicted

skill shortages.

• Communication is very important in construction sectors. Communication within

project-based environments presents special challenges. Many of the problems that

develop in construction projects are a result of both the temporary and inter-

disciplinary nature of project teams - each player having a different employer

compounds this arrangement. Practical guidance should be provided on possible

solutions to communication problems.

• The construction industry is characterized by the predominance of migratory and

unskilled labour. Therefore, there is need to expand the training and skill

certification programs both in terms of content as well as geographical reach.

• Ways should be considered so that employee motivation can be improved by

making use of the principles of human resource management. Through the practice
 of the philosophies of strategic human resource management, it is possible to

develop a high level of consistency between organizational and individual needs.

Thus, the success as a company is dependent on every person who works

there. The collective commitment of every employee to common goals and common

values is what makes the organization a leader in the industry. The firm should provide

career opportunities that offer current rewards in the form of comprehensive and

competitive compensation and benefits as well as meaningful advancement

opportunities. It is important to attract, develop and retain the most highly skilled

workforce in the industry. The company should have an excellent work force with a

commitment to training and development opportunities for employees in every position

in the company.