CMPM-MODULE3-Organization & Management

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CONSTRUCTION METHODS &

PROJECT MANAGEMENT
ORGANIZATION AND MANAGEMENT

A construction project organizational structure has to help ensure on-time project


completion within the set budget. You have to decide how best to assign responsibility
for scheduling and cost control while making sure the project's working-level teams carry
out the work in the right sequence and according to the specifications. An effective
project organization leaves project team members free to decide on the technical aspects
of their work while ensuring that they act within the project's time and cost constraints.
Structural organization is the formal arrangements that are established to coordinate all
activities in order to implement a given strategy. Thus, structure reflects the anatomy of
a firm through its focus on mechanisms and processes that link both vertically and
horizontally the various parts of an organization.

Framework
Organization of a project differs from that of an operating company because a project
has a limited duration. Employees making up the project team come from a company's
general work force and return there after the project is finished. Salaries, benefits and
disciplinary matters remain with the corporate structure, while work-related decisions
come from the project organizational structure, made up of functional units and
working-level teams reporting to the project manager. Those involved in the project
focus on getting the work done according to the project plan, satisfying specific cost,
scheduling and quality objectives

Functional
Project managers need to control the project's scope and costs, as well as handling
project scheduling. The project manager assigns responsibility for these functions to key
people, and the organizational structure gives them direct access to the working-level
teams carrying out the work. The teams either report back to the functional units on
costs, progress and scope, or they require the approval of the functional managers to
place orders and schedule work. In either case, the lines of reporting go from the project
manager through the functional units to the working-level teams, and back through the
functional units to the project manager.

Technical
Construction projects include a technical component that requires technical training,
expertise and professional qualifications. The project manager organizes the
working-level teams to carry out specific tasks, such as drywall or plumbing, in the right
sequence. The functional units track progress, schedule the work and issue reports back
to the project manager. When the company does not have the expertise in a particular
field, it can hire contractors who interface directly with the functional groups to ensure
that their work meets the requirements of the project.

Quality
Quality control is a specialized function that usually has an independent structure parallel
to the project organization. Two requirements for quality control are that the quality
manager reports directly to project management and that the personnel from the quality
control department have direct access to everyone carrying out work on the project. The
project organization chart generally shows the quality manager directly below the project
manager with a direct reporting path. The remaining access is through a matrix
organization with reporting paths from each functional unit and working-level team back
to the quality assurance department. Through the link to project management, the
quality manager has authority over quality matters throughout the project organization.

WHAT IS ORGANIZATION?

Organization is a group of individuals who are


cooperating willingly and effectively for a
common goal. It is nothing more than the
mechanism by which administration directs,
coordinates and controls its business. It is
indeed, the very foundation of administration. To be specific, organization seeks to know

who is to do and what is to be done.

Structural Elements of an Organization (5 M’s):


1. Men – members of the organization starting from the very top of the last workman in
the organization.
2. Materials – represent the materials necessary in the distribution of functions or in
the attainment of its objective.
3. Machine – the tools necessary in producing its desired output
4. Methods – the procedures and ways used in the course of its action
5. Money – The financial resources of the organization

PRINCIPLES OF GOOD ORGANIZATION

• Principle of Objective – must be known, it serves as the guide to future planning


and action. It integrates policies, projects and programs and it enables every member to
act consistently according to common goal.

• Analysis – study as the work could be finished at the right time.

• Simplicity – The simplest organization that will serve to attain the desired objective is
considered the best. All activities which are not absolutely necessary should be
eliminated, and those retained should be handled in the simplest practical way.

• Functionalism – The organization should be built around the main functions and not
around the individuals.

• Departmentalization – In a big organization, the scope of operation can be very


broad, necessitating departmentalization to achieve a flow of operations

• Centralization of Authority and Responsibility - in every organization there


should be centralized executive control or command authority

• Limited Span of Control – The number of subordinates an executive can manage


effectively.

→ GOOD ORGANIZATION & GOOD EXECUTIVE


A good executive may be able to secure good results
with a poor organization, and a good organization
may produce results from a poor executive. But the
ideal set up is, a combination of a good organization
and a good executive
WHAT IS MANAGEMENT?

According to Kast, 1974, management involves


the coordination human and material resources
toward the attainment of the organization’s goal.

• Management is a process – it is the process


of directing and facilitating the work of people
who are organized for a common purpose. It is
the process of combining the efforts and
resources of individuals with a common interest
to achieve a desired objective.

According to Stoner and freeman, 1989, the processes includes:


1. Planning – process of establishing objectives and appropriate courses of action
before taking action
2. Organizing – arranging an organization’s structure
3. Leading – directing and inspiring the personnel to perform their functions.
4. Controlling – process of motivating actual organization activities to ensure to move
toward its objective

• Management is a function – it is an art of handling people. It is the function of


getting things done through the efforts of others.

MANAGEMENT CONCEPT:
1. Management to be effective must be systematic – Things can be done better by
means of plan of action. The plan is a step by step outline of what is to be done and who
does what.

2. Management to be successful must be scientific – analysis of the operation or work.

3. Management must be humanistic – Application of good human relations “pays off”


through cooperation and coordination leading toward the goal and objective.

THE MANAGER
• Managers – According to Kast, 1974, people who are
responsible for integrating, coordinating and directing activities
of others.
-Manager as executive, is the most difficult and with the
highest degree of responsibility.

Quality of an Effective Manager:


1. Manager studies, analyzes and dissects his/her job.
2. Manager knows how to delegate the administrative details of his/her job.
3. Manager is willing to delegate to and share with his subordinates the credit of
a job well done.
4. Manager trains and develops his men to assume delegated work.
5. Manager knows how to control and plan his time.
6. Manager institutes controls for effective performance.

Executive Functions:
Managers do not do the actual work of an organization. His specific functions are:

1. To Plan - making things happen


2. To Organize - improving the organization will always improve performance
3. To Direct - guiding and overseeing subordinates, they are taught what to do and told
to get on with the job (leadership and coordination)
4. To Control - as the process by which an executive gets the performance of his
subordinates to correspond as closely as possible to chosen plans, orders, objectives, or
policies

Policies and Procedures


→ In planning, the critical task is the formulation of policies
Policies
- general statements, which guide or channel the thinking and action of members of an
organization.
Procedures
- reflection of policy
- involves the selection of a course of action and applied to future activities.
- detailed the manner in which a certain activity must be accomplished.

DELEGATION OF AUTHORITY - the key to effective management. Delegation of task


to a subordinate is a manifestation of faith and confidence towards the ability of a
subordinate. Authority is the power of an administrator to delegate functions to the next
ranking executive, who in turn transmit it to the employees who are charged with the
actual operations.

- In order to have control, the manager must have authority.


Authority should have a definite limitation to avoid confusion.
- preferably be in WRITING
- should be interpreted CLEARLY to avoid misunderstanding

Justifiable praise and commendation should be given the deputy of work well done.
Recognition is a basic human desire and is an incentive for further achievement. This is
one of the means for executive development and or building morale.
Responsibility and Authority
→ Resposibility is “Hell” without Authority.
- BUCK PASSING : There are people who constantly seek for authority, but evade
responsibility.
→ Authority and responsibility must go together. But authority cannot be delegated
completely. It can only be shared.

Eg. The president may delegate any or part of his authority because he may expect to
get the necessary counsel of experienced or specialists workers in the company. Yet,
even with the aid of responsible consultants, there is always that element of risk in
decisions. Decisions should result from the pooling of judgement of those who share in
the responsibility and authority. The president or manager is still held responsible for the
action and liabilities of the company, including the cause of strikes due to labor disputes.

HUMANISTIC MANAGEMENT
It is a universally applicable. Employees who are given definite goals will clearly
understand what they should concentrate their talents on.They know what is expected
and the standards by which they will be measured.

According to Konosuke Matsushita (the founder of Panasonic corporation of Japan), for a


corporation to achieve its objective, it must above all else, succeed in cultivating its
human resources. People-first business philosophy. Make people before it make
products.

DIRECTING PEOPLE ON THE JOB


→ Before you can expect to give orders effectively, you must understand exactly what an
order is and the different kinds of order you can use.

What is an ORDER?
→ An ORDER is a specific message conveyed by a leader to a follower for the purpose of
influencing the follower to take desired tion. Orders are either VERBAL or WRITTEN.

Directing People on the Job


When to use VERBAL ORDER?
1. When the order is simple and the message can be clearly heard.
2. When privacy is important.
3. When the followers is intelligent and reliable.
4. When a demonstration is involved.

When to have WRITTEN ORDER?


1. When precise figures or complicated details are involved.
2. When orders must be passed on to someone else.
3. When the workers involved are slow to understand and forgetful.
4. When you want to hold the receiver strictly accountable.
5. When particular sequence must be followed exactly.
6. When a notice board can be suitably used.
7. When you are quoting general instructions on higher authority.
8. When a record is desirable, perhaps the order may need to be referred to in the future.

How to Give Effective Orders


1. Clarify your objective.

2. Obtain favorable attention.


→ Your main objective is to get him to do what you want him to do and like it. To achieve
this, you must get interested attention so that he will receive and correctly understand
the complete order. Request and suggestions make it much easier for a person to like
doing what you want him to do than a direct order.

3. Make it simple and specific.


→ The order will only be clear and concise when it is simple and specific.

4. Phrase it tactfully for best results.


→ Choose the most suitable kind of orders and phrase it in the way that will produce the
desired effect.

5. Explain why it should be done your way.


→ Even they don't fully agree with the reasoning involved, they appreciate being told
about it.

6. Learn how much information and guidance he needs.

7. Let him have it.


→ Give the information and guidance he needs as clearly and concisely as possible. Make
sure you inspire his confidence in you and the correctness of your order.

8. Inspire his confidence in you and the correctness of your order.

9. Note his readiness to act.


→ Watch his reaction to your order to see whether he has understood it correctly and is
ready to act on it.

10. Give him faith in his ability to carry it out..


→ If there is any difficulty involved in his carrying out your order, he will perform at his
best when he believes in his ability to do it.
→ Show your faith in his ability. if you have any doubts about his competence, keep
them to yourself.

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