Nicmarc module 21 PGPPM

1. PGPM11 Page 1
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

2. PGPM11 Page 2
MANAGEMENT
IN
ORGANISATIONS

3. PGPM11 Page 3
CONTENTS
SR.NO. DESCRIPTION PAGE NO.
1 SCOPE OF WORK 4
2 ORGANISATION STRUCTURE FOR THE
PROJECT
5
3 COMMUNICATION FLOW 11
4 RECOMMENDATIONS 13
5 BIBLOGRAPHY/ READINGS 14

4. PGPM11 Page 4
SCOPE OF WORK:
Construction of Housing Colony consists of 10 Bungalows for senior executives, 20Apartments in 5
buildings, 100dwellings forwhitecollarworkersand300dwellings forbluecollaredworkers.Colonywill
havemarket andentertainment complex.
TheKeyfunction requiredto becarriedoutasfollow:
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 concernedwith the training to the subordinateto carryoutassigned
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 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.

5. PGPM11 Page 5
ORGANIZATION STRUCTURE FOR PROJECT:
Directors
of Firms
Administra
tion (HO)
Project
Coordinator
General
Manager
Project
Manager
Electrician
&
Mechanic
SurveyorQA/QC
Engg.
Sr.
Engineer
Billing/
QC
Engg.
Billing/
QC
Engg.
Store
Keeper
Jr.
Engineer
Supervisor
Jr.
Engineer
Supervisor
Labour Finishing
contractor
Other
labour
contractors
Fitter/Carpenter

6. PGPM11 Page 6
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.
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.

7. PGPM11 Page 7
The Scalar Principle:
An organizationalstructure consistsofdifferent levels ofauthority arrangedina 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
differentstructure, andsnot givencorrespondingauthorityto procurethevariousresources,
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.
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
encounteredandability of personinvolved. The optimum spanofcontrol variesfrom 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:

8. PGPM11 Page 8
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
bya projectmanager,who is theagent ofthe client and actson hisbehalf. Heeither appointed
by the client or is position at sight by the construction management consultant of the client.
Hecoordinatesandcommunicates withal the agenciesengagedin projectwork. 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

9. PGPM11 Page 9
Workers' productivity standard is defined as the effort in man-days or man-hours 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.
Workersproductionnormsareexpressedis man-days orman hours,categorywise 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 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.

10. PGPM11 Page 10
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:
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 contractor’s site organization, key persons involved in a project.

11. PGPM11 Page 11
COMMUNICATION REQUIREMENT AND FLOW:
Co-ordinationofworkers their views and finally completion of projectarethe necessarytask
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 veryessential in modernmanagement technique. The job ofmanagerial 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 don’t 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 becauseperformancestandardsasfarmore 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
coursenotusual. The basicplanning problemis therefore,howto decidebetween 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 ³resource 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
resourceforaprojectoverits duration?If resourceavailable 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

12. PGPM11 Page 12
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.

13. PGPM11 Page 13
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.

14. PGPM11 Page 14
BIBLIOGRAPHY / READINGS
MANAGEMENT – A GLOBAL PERSPECTIVE
BY HAROLD KOONTZ
MANAGEMENT IN ORGANISATIONS
THE LESSON BOOK COMPILED BY NICMAR
INTERNET