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 principles1. Principle of objectives

– Clearly defined objectives, organization structure to achieve objectives at minimum cost and effort

2. The scalar principle– Clearly defined line of authority

3. 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

4. Principle of Unity of command – Each subordinate should report to only one superior. Avoid confusion,

indiscipline, delay eg. Indian Army

Principles of Organization

Basic principles5. Principle of Span of control

– Limit no.of subordinates for effective supervision Eg. Student teacher ratio, worker to supervisor ratio

6. Principle of departmentation– Division of organisation into several departments, clearly defined functions

and scope for each department

7. Principle of specialization– Activities of the organisation should be grouped as per functions and

assigned to individuals according to their specialization

8. 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 principles9. 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

Organizational structure is defined as Division of labor and patterns of coordination, communication, workflow, and formal power that direct organizational activities

The basic structure of the organization depends upon– Size– Nature of business– Complexity of problems– Distribution of authority and responsibility

Organizational structure can be classified into three types

1. Line organization

2. Line and staff organization

3. Functional organization

1. Line Organization

One of the simplest forms of organization

Structure is based on scalar principle of organization (i.e., Clear and direct

line of responsibility and authority)

A pyramid of several horizontal levels

It is closely linked to the concept of central administration

Concentration of directive processes in the hands of few people

Commonly adopted in Civil Projects

Followed in most govt. deportments, autonomous engineering organizations

Also called military organization/scalar organization/ vertical organization

1. Line Organization (Govt.Engg Org)

Chief Engineer

SE 1

EE 1

AE 1

JE 1 JE 2

AE 2 AE 3

EE 2 EE 3

SE 2 SE 3

SE: Superintending EngineerEE: Executive EngineerAE: Asst. EngineerJE: Jr. Engineer

1. Line Organization (Autonomous Engg. Org.)

Managing Director

General Manager

Sr.Manager

Manager1

Sr.Eng1 Sr.Eng2

Manager2

Sr.Manager

1. Line Organization

Merits1. It is simple and easy to understand2. It permits quick decisions3. Each individual is responsible to a single person and there is no scope for shifting of

responsibility4. It promotes discipline among the employees5. Faults can be easily and quickly detected due to fixed responsibilities of various

individuals

Demerits6. HODs are over burdened as all decisions have to be taken by them. Due to this ,

personnel are unable to innovate7. A delay in decision making by top management may bring the system to a stand still

and adversely affect the efficiency of the organization 8. 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

9. Concentration of authority may lead to certain undesirable practices such as partiality or favoritism

Scope of Line Organization

Cannot be successful in a system which depends upon the Ingenuity of its workers

It can be efficient whereWork is of Routine natureSubordinate and operational staff are limitedProcess is continuous eg. Refining, Spinning, Sugar

manufacturing etc.

• 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

2. Line and Staff Organization

Chief Engineer

SE 1

EE 1

AE 1 AE 2

EE 2

SE 2 SE 3

ArchitectSurveyor Design wing

Accounts branchVigilance Admin

wing

staff

Line Function

2. Line and Staff Organization

Project Director

Manager-Pkg1

Sr.Eng 1

Eng 1 Eng 2

Sr.Eng2

Manager-Pkg2

Manager-Pkg3

Planning &billing

Survey& Instrumentation

Design wing

P&MQA/QC Admin wing

staff

Line Function

2. Line and Staff Organization

Merits1. Functional expertise and experience is available from staff personnel2. It is based upon planned specialization3. Specialized work is done by staff and line personnel can devote their time to

achieve sectional targets4. It provides more job opportunities5. Due to staff specialization there is more efficient utilization human and physical

resources6. Quality of product is better

Demerits7. The staff may be ineffective due to lack of authority to enforce their decisions8. As duties and responsibilities are not clearly defined, there is bound to be some

confusion in the relation ship of the line and staff personnel9. 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

10. 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

Basis for this organization is specialization

Work is carried out by specialists based on function

All similar and related work is grouped together under one

person

In order to perform his function a person has to report to several

superiors for different phases or aspects of the work

A subordinate will be directly commanded by no.of superiors

3. Functional Organization

3. Functional Organization

Project Manager

Site Engineer

Foreman 1 Foreman 2

Account Officer

Store Keeper

CEO

Finance Production Marketing

Functional Organization

Merits1. Division of labor is done on the basis of function specialization2. The functional efficiency of individuals increases due to a limited number of

specialized activities3. Manual work is separated from mental work4. Quality of work is enhanced due to specialization

Demerits5. Each person has to report to a number of superiors which weakens

discipline6. This type of organization is at variance with the principle of unity of

command7. There is no clear cut line of authority and this leads to confusion among

personnel working at lower levels8. It is difficult to pin point responsibility which may adversely affect the

morale of the organization9. Coordination is more difficult10. Overhead costs are increased due to a number of specialists

3. Functional Organization

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

????? Please….

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