CONSTRUCTION MANAGEMENT AND ADMINISTRATION Construction Management and Administration

CONSTRUCTION MANAGEMENT AND ADMINISTRATION

Construction Management and Administration: Unit-I 1. Significance of Construction Management 2. Objectives of Construction Management 3. Functions of Construction Management 4. Construction Management team 5. Principles of organization 6. Types of organization

Organization • An organization is a collection of people working together in a coordinated and structured fashion to achieve one or more goals

Principles of Organization Basic principles 1. Principle of objectives – 2. The scalar principle – 3. 4. Clearly defined objectives, organization structure to achieve objectives at minimum cost and effort Clearly defined line of authority Principle of Balance between authority and responsibility – It is essential that every one knows his duty, responsibility and authority/powers – Authority means right to act, decide and command Principle of Unity of command – Each subordinate should report to only one superior. Avoid confusion, indiscipline, delay eg. Indian Army

Principles of Organization Basic principles 5. Principle of Span of control – 6. Principle of departmentation – 7. Division of organisation into several departments, clearly defined functions and scope for each department Principle of specialization – 8. Limit no. of subordinates for effective supervision Eg. Student teacher ratio, worker to supervisor ratio Activities of the organisation should be grouped as per functions and assigned to individuals according to their specialization Principle of communication – – The no. of supervisory levels must be kept as small as possible Increased line of communication(vertical/horizontal) may result in lower overall efficiency and profit

Principles of Organization Basic principles 9. Principle of flexibility and stability – – – Flexibility and stability are inter related Flexible enough to assess the changes Stable enough to withstand organizational changes 10. Principle of motivation and professional growth – – Provide enough opportunities to its personnel for their professional growth and up word or lateral mobility Job roles of each member should be able to achieve professional satisfaction and motivate towards loyalty for the organization 11. Principle of continuity – – Dynamic organizational structure to continue activities in future also Maintain a link between the past and the future

Types of organization üOrganizational structure is defined as Division of labor and patterns of coordination, communication, workflow, and formal power that direct organizational activities üThe basic structure of the organization depends upon – – Size Nature of business Complexity of problems Distribution of authority and responsibility üOrganizational structure can be classified into three types 1. Line organization 2. Line and staff organization 3. Functional organization

1. Line Organization ü One of the simplest forms of organization ü Structure is based on scalar principle of organization (i. e. , Clear and direct line of responsibility and authority) ü A pyramid of several horizontal levels ü It is closely linked to the concept of central administration ü Concentration of directive processes in the hands of few people ü Commonly adopted in Civil Projects ü Followed in most govt. deportments, autonomous engineering organizations ü Also called military organization/scalar organization/ vertical organization

1. Line Organization (Govt. Engg Org) Chief Engineer SE 1 EE 1 AE 1 JE 1 AE 2 JE 2 EE 2 AE 3 SE 2 SE 3 EE 3 SE: Superintending Engineer EE: Executive Engineer AE: Asst. Engineer JE: Jr. Engineer

1. Line Organization (Autonomous Engg. Org. ) Managing Director General Manager Sr. Manager 1 Sr. Eng 1 Sr. Manager 2 Sr. Eng 2

1. Line Organization Merits 1. 2. 3. 4. 5. It is simple and easy to understand It permits quick decisions Each individual is responsible to a single person and there is no scope for shifting of responsibility It promotes discipline among the employees Faults can be easily and quickly detected due to fixed responsibilities of various individuals Demerits 1. 2. 3. 4. HODs are over burdened as all decisions have to be taken by them. Due to this , personnel are unable to innovate A delay in decision making by top management may bring the system to a stand still and adversely affect the efficiency of the organization There is a general lack of communication from lowers upwards. While there is good communication from top to bottom, the top management handicapped due to lack of feedback from lower levels Concentration of authority may lead to certain undesirable practices such as partiality or favoritism

Scope of Line Organization üCannot be successful in a system which depends upon the Ingenuity of its workers üIt can be efficient where üWork is of Routine nature üSubordinate and operational staff are limited üProcess is continuous eg. Refining, Spinning, Sugar manufacturing etc.

2. Line and Staff Organization • Key men assisted by specialists in different fields • Staff in an organization are experts, who have no line of authority but whose function is largely advisory • Staff functions are research, design, planning, scheduling and recording performance • Discipline and stability is maintained by line authority

2. Line and Staff Organization Chief Engineer Surveyor SE 1 EE 1 AE 2 Admin wing Vigilance Architect SE 2 EE 2 SE 3 staff Design wing Accounts branch Line Function

2. Line and Staff Organization staff Project Director Survey& Instrumentation Planning &billing Manager. Pkg 1 Sr. Eng 1 Manager. Pkg 2 Sr. Eng 2 QA/QC Admin wing Manager. Pkg 3 Design wing P&M Line Function

2. Line and Staff Organization Merits 1. 2. 3. 4. 5. 6. Functional expertise and experience is available from staff personnel It is based upon planned specialization Specialized work is done by staff and line personnel can devote their time to achieve sectional targets It provides more job opportunities Due to staff specialization there is more efficient utilization human and physical resources Quality of product is better Demerits 1. 2. 3. 4. The staff may be ineffective due to lack of authority to enforce their decisions As duties and responsibilities are not clearly defined, there is bound to be some confusion in the relation ship of the line and staff personnel Line members may some times resent the viewpoint of staff members and vice versa. This may lead to friction and misunderstanding between line and staff personnel The overhead cost increases because of high salaries of staff personnel

Scope of Line and Staff Organization This type of organization is preferred for medium and large scale Industries/Construction companies depending upon their internal structure, production activities and span of business area

3. Functional Organization üBasis for this organization is specialization üWork is carried out by specialists based on function üAll similar and related work is grouped together under one person üIn order to perform his function a person has to report to several superiors for different phases or aspects of the work üA subordinate will be directly commanded by no. of superiors

3. Functional Organization Project Manager Site Engineer Foreman 1 Account Officer Foreman 2 Store Keeper

Functional Organization CEO Finance Production Marketing

3. Functional Organization Merits 1. 2. 3. 4. Division of labor is done on the basis of function specialization The functional efficiency of individuals increases due to a limited number of specialized activities Manual work is separated from mental work Quality of work is enhanced due to specialization Demerits 1. 2. 3. 4. 5. 6. Each person has to report to a number of superiors which weakens discipline This type of organization is at variance with the principle of unity of command There is no clear cut line of authority and this leads to confusion among personnel working at lower levels It is difficult to pin point responsibility which may adversely affect the morale of the organization Coordination is more difficult Overhead costs are increased due to a number of specialists

Scope of functional organization • Not commonly found in practice in its pure form • It is suitable for large research and manufacturing concerns • Best when a firm makes only one or a few products

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Questions from previous papers Mention the types of organizations What is Unity of command? What is significance of CM? What is the principle of flexibility and stability? What are the functions of CM? What are advantages of line and staff organization? Explain the objectives of a project and phases of management? What is line organization and mention its advantages and disadvantages? What are the objectives of CM? Discuss the importance of line and staff organization with its advantages and disadvantages • What is functional organization and discuss its advantages? • What are the functions of CM? • • •

Assignment Questions…… 1. What are the objectives and functions of CM? 2. Explain the role of each constituent of the construction team 3. Explain the main principles for developing an organization for effective and efficient working 4. List the types of organizations and explain the suitability of each type for different construction agencies