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
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2.
The scalar principle
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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
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It is essential that every one knows his duty, responsibility and
authority/powers
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Authority means right to act, decide and command
Principle of Unity of command
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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
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6.
Principle of departmentation
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7.
Division of organisation into several departments, clearly defined functions
and scope for each department
Principle of specialization
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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
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–
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
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–
–
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
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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
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–
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
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–
–
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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
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
Manager1
Sr.Eng1
Sr.Manager
Manager2
Sr.Eng2
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
Cannot be successful in a system which depends
upon the Ingenuity of its workers
It can be efficient where
Work is of Routine nature
Subordinate and operational staff are limited
Process 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 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
Project
Director
Survey&
Instrumentation
Planning
&billing
ManagerPkg1
Sr.Eng 1
Eng 1
ManagerPkg2
Sr.Eng2
Eng 2
QA/QC
staff
Admin
wing
ManagerPkg3
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
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
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
????? Please….
Questions from previous papers
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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