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ASSIGNMENT
NICMAR / CODE OFFICE
1. Course - NCP 21
2. Course Title - Management in Organisation
3. Assignment No.
4. Date of Dispatch
5. Last date of receipt -
Of Assignment at SODE office
Submitted By
Name :
Registration No. :
Management in Organisation – NCP 21
ASSIGNMENT
Your company has bagged a lucrative contract to construct a housing colony for an
Industrial Group to be located in Western Maharashtra in a coastal belt. You as a Project
Manager had been asked by the company to evolve Organisation Structure with following
conditions:
i Organisation should be as lean and thin as possible with bare minimum of
personnel on company roll up to Junior Engineer level.
ii All supervisors to down below will be temporary for project duration only
to be recruited locally from 100km radius.
Suggest and discuss an organisation structure denoting responsibility, authority,
communication control for all facets of construction work and management functions as
visualized by you.
Housing colony consists of 10 bungalows for senior executives, 20 apartments in five
buildings, 100 dwellings for white collar workers and 300 dwellings for blue collared
workers. Colony will have market and entertainment complex.
SOLUTION
Scope of work
The scope of work in order to construct a housing colony for an industrial
group is as follows –
Grading and preparing the site
Setting forms for footings
Excavating the soil for roads and buildings
Metalling and tarring the roads with proper camber
Construction of footing/foundation including reinforcement, shuttering,
concreting, curing and de shuttering.
Construction of pillars/columns (up to plinth level)
Filling the trenches with soil and compacting till ground level
Construction of plinth including reinforcement, shuttering, concreting, curing and
de shuttering.
Filling the soil and compacting till plinth level
Construction of pillars up to lintel level including reinforcement, shuttering,
concreting, curing and de shuttering.
Construction of lintel including reinforcement, shuttering, concreting, curing and
de shuttering.
Construction of pillars up to roof level including reinforcement, shuttering,
concreting, curing and de shuttering.
Construction of roof slab including reinforcement, shuttering, concreting, curing
and de shuttering.
Along horizontal and vertical line installation of brick work and curing
Providing ducts and connections for electrical wiring
Providing frames for doors, windows and ventilators
Plastering and pointing the interior and exterior areas including roofs of the
buildings and curing
Treatment of water before pumping
Providing flooring / tiling in the required floor area
Providing electrical wiring.
Providing insulation to the building
Providing plumbing, water supply and sanitary fittings
Providing doors, windows and ventilators
Distempering or whitewashing and colour washing the plastered surface.
Painting the doors, windows, ventilators, electric posts and iron grills etc
Providing the drainage system
Providing the heating and cooling system
Providing the fire protection systems
Providing final grading and landscaping of the site
Completion / occupancy certificate
In order to get these tasks done, the contractor hires more specialized
independent crews known as subcontractors to perform portions or all of the
construction work. For example, the electrical wiring is generally done by one
subcontractor specializing in electrical wiring, while the landscaping is done by a
completely different subcontractor specializing in landscaping.
Each subcontractor is an independent business and all of them are
coordinated by the contractor who oversees the job and is responsible for completing
the house on time and on budget.
.
Functions include –
Thorough planning and research over the project
Preparing the plan and finalizing it, after working with an architect on detail
adjustments if necessary, on which builders will work on
Preparing the estimate, both detailed and abstract, for the project .
Survey the site, check the property boundaries and setback laws, stake out
foundation corners, and set up erosion control
Ensuring proper alignment of the roadways.
Taking detailed measurements and executing accurate tests which are necessary.
Draw up a materials list and get quotes from 2 to 4 supply yards in the area;
including truss design and ordering
Obtaining construction site insurance
Providing temporary utilities on site like establishing temporary electricity from
power company
Planning, designing, and overseeing all processes
Ensuring designing and implementing adequate procedures and policies
Assisting with managing all construction workers.
Meeting the designers and contractors for accurate scheduling, staffing, and cost
analysis.
Preparing the progress which is required to compute the remaining estimates.
Decision making to ensure that quality is optimized.
Preparing budget reports required to compute the estimates and make decisions
accordingly so that the budgets are maintained.
Ensuring the materials and equipment necessary for each project is ordered so that
it will be delivered within the scheduled amount of time
Calculating the accurate amount of staff, material, and equipment necessary to
complete a project.
Training labourers with safety programs on how to properly handle and dispose of
hazardous materials to reduce any hazards or injuries possible during and after
construction.
Managing the activities of the workforce, material and equipment deliveries.
Maintaining schedules, production outlines and deadlines for multiple sites.
Directing all construction related functions and ensuring proper follow up of all
the procedures.
Ensuring proper compaction after each layer of metalling and tarring.
Coordinating the schedule and communications that are necessary.
Strictly following the laws and guidelines and company procedures.
Preparing design evaluations and monitor that the projects are completed within
the specific time table.
Scheduling plans deliveries, and organizing materials.
Monitoring costs and expenditures throughout project
Overseeing all aspects of an entire housing contract
Inspecting the site daily, ensure that plans are properly executed and keeping the
records of the work progress.
Maintaining an adequate amount of labourers in delays and peak times and
coordinating the activities accordingly.
Maintaining the documents and contracts properly before, during and after the
construction process.
Regular meeting of the owners, contractors, and designers to ensure there are no
discrepancies on coordinating their ideas. In case of discrepancies, resolve the
issues.
Communication Flow
The Communication process sets the stage for information and message
flow through an organization. The elements of the process include:
someone to send the message (the encoder)
some means for channeling it
someone to receive it (the decoder)
feedback mechanism.
Communication planning pulls the project together. The communication
plan should outline:
• Who (lines of communication sender- and receiver-responsibility and authority)
• What (scope of communication and format)
• How (e-mail, document, telephone, meeting, presentation)
• When (schedule)
• Feedback (confirms message received and understood – document control)
• Filing (retrieval, storing, disaster recovery)
Formal communication
Formal communication, written or oral, follows the chain of command of
the formal organization. The communication flows from the manager to his
immediate subordinates. Each recipient then re-transmits the message in the selected
form to the next lower level of management or to staff members. Formal
communication normally encompasses the transmittal of goals, policies, instructions,
memoranda, and reports; scheduled meetings; and supervisory-subordinate
interviews.
Communication flows in four directions: downwards, upwards, and
horizontally and laterally. The following figure shows the flow of communication in a
construction firm.
Downward communication starts at the top i.e. a manager and flows down
through the project levels to the employees. The major purpose of downward
communication is to provide subordinates with information on goals, strategies and
policies. Downward communication is used to inform, direct, coordinate, and
evaluate employees In this type of organizational communication, distortion of the
actual information occurs. It is likely to be filtered, modified, or halted at each level
as managers decide what should be passed down to employees. This could be made
effective by feedbacks.
Upward communication - . When communication flows from employees
to managers, it is called upward communication. It transfers from subordinate to
superior as that from worker to foreman, from foreman to company manager, from
company’s manager to general manager and from general manager to the chief
executive or the board of directors. In this way, the upward communication makes a
chain. Upward communication can be used in order to keep managers aware of how
employees feel about their jobs, their co-workers, and the organization. A climate of
trust, respect, and participative decision making will encourage considerable upward
communication
Horizontal communication occurs between people on the same level of the
hierarchy and is designed to ensure or improve co-ordination of the work effort. It is
formal communication, but does not follow a chain of command. Effective horizontal
communication can prevent tunnel vision in the organization. Horizontal
communication facilitates the l inking of different areas of expertise and this may
encourage innovation.
Lateral communication takes place between people at different levels of
the hierarchy and is usually designed to provide information, co-ordination or
assistance to either or both parties. Lateral communication cuts across both work
areas and organizational levels. It has the potential to create problems if employees
don’t keep their managers informed
Informal communication
The communication outside the formal organizational structure that fills
the organizational gaps, maintains the linkages, and handles the one-time situations.
Informal communication does not follow authority lines as in the case of formal
communication. It is implicit, spontaneous multidimensional and diverse. Often it
works in group of people, i.e. when one person has some information of interest; he
passes it on to his informal group and so on.
Informal communication, commonly called “the grapevine”, can begin
with anyone in the organization and can flow in any direction. The grapevine’s prime
function is to disseminate information to employees that is relevant to their needs.
In the construction industry, the following are informal communication
methods:
• Regular contact
• Mind reading
• Motivation to speak
However, for the efficient working of any organization both formal and
informal communications are required.
Project communication instruments
Frequent communication with a project team is always important.. Internet
and server-based communication tools can help. Project managers should consciously
schedule time every day to communicate with team leaders and members.
Communication is the glue that holds a team together working toward the same goals.
Project communication, is internal and external communication between
members of an organization at all levels in order to achieve a mutual goal or goals.
Figure 2 Project communication
Source: (Adopted from Le Roux, 1999: 286)
To achieve goals, it is necessary to communicate or interact at various
levels of the organization. This is known as internal communication. Members also
have to communicate with individuals or groups who are not members of the project.
This is referred to as external communication
ProjectCommunication
Internal Communication
External Communication
Instruments of internal communication
Different methods of instruments of internal communication exist:
Oral communication occurs in the form of meetings, discussions groups, talks,
including the grapevine, interviews, announcements and conservations, both
face to face and over the telephone.
Written communication takes place by means of letters, circulars, memoranda,
manuals, reports, seminars and minutes of meetings.
Non-verbal communication can convey powerful messages in the business
world by means of gestures, appearance or attitudes.
Electronic communication –It is possible to send messages all over the world
at a very high speed. Messages can be sent and received using computer
terminals, electronic mail (e-mail) and fax facilities.
Instruments of external communication
Every member of a project is involved in communication with customers,
share holders, the media, the government, labour unions, the community and
members of the general public, on a daily basis. The external communication to each
conveys a particular image to the outside world.
Intercultural communication is in many ways far more complicated, e.g.
languages, because participants need to be aware of an increased potential of
misunderstanding. Project team members are part of different sub-cultures. In a
project team there may be communication problems because of these differences and
expressions in different professions.
COMMUNICATION IN THE CONSTRUCTION INDUSTRY
The survey was conducted to establish the current performance of
professional consultants in respect of their communication and communication
instruments in the construction industry. Professionals (architects, engineers, project
managers and quantity surveyors) were requested to respond to the questionnaire.
More than a thousand questionnaires were sent to these professionals in the RSA. The
response rate was less than 10%.
The following are some of the most important findings:
Communication is strategic- now more than ever. In an information-driven age,
communication is an integral part of the corporate strategy.
Writing is still the core skill for communication. Verbal, written and contractual
communication was rated almost the same in importance.
Results on communication instruments indicate which instruments are high in
importance and for which professionals
Effective communication can contribute towards the success of a project.
Figure 5. Importance of communication instruments used by professionals
Source: (University of the Free State, Department of Quantity Surveying and
Construction Management, 2007) (The ratings are: 1= low, 3= intermediate, 5 = high)
For each project, it is important that the project-related information is fully
documented to ensure that all the people involved understand what has and is
happening. Each project has a great deal of communication and documentation. With
many projects using the same communication instruments, over and over again, the
running of the project will be much easier and more understandable if communication
instruments, plans, structure and flows are a standard process. Standardization will
provide a system for effective management that is not too complex, and may
contribute towards the effective execution and completion of a project.
Assigning responsibility
TASKS THAT HAS TO BE PERFORMED WHO PERFORMS
THE TASK
Aligning and laying of bricks to construct brickwork by
applying mortar and finishing the surface by plastering.Brick layer
Setting the concrete forms, ensuring correct depth and pitch,
levelling, placing, finishing, protecting and repairing concrete.Cement mason
Charging construction costs which include labour, material
supervision, tools, equipment costs, supplies and insurance cost
to the applicable contract cost. Preparing financial statement
data, sales commissions, overhead and marketing journal
entries.
Construction
accountant
Managing the flow of paperwork and electronic
correspondence, track and administer changes, update drawings
interact with subcontractors and consultants, complete building
permit requirements and noting phase completion dates.
Construction
Administrative
Assistant
Analyzes the company's costs, does cost-benefit analysis,
analyzes the cost for each production unit, determine methods
for allocating complex processes to units to create exact unit
costs, matches costs to customers to evaluate customer
profitability, determine process improvement methods, evaluate
Construction Cost
Analyst
the performance.
Oversee functions related to Electrical, Mechanical, Electronic
Packaging, ensures design meet customer expectations,
develops process specifications and design standards, assign
projects to drafters, designers, monitors performance and results
of each employee, evaluate departmental processes, recommend
improvements, administer personnel functions, interact and
communicate with customers.
Construction Design
Services Supervisor
Visiting the site, determine feasibility of preliminary plans by
comparing user's need with structural, electrical, or mechanical
system constraints, revises preliminary plans, prepares design
development and final working drawings of proposed projects,
prepare specifications in preparation for bidding, reviews and
approves or investigates requests for payments.
Construction Design
Technician
Establishing and enforcing purchasing policies; identifying
resources; negotiating quality, delivery, and price agreements
and leases; maintaining ethical standards.
Construction
Director
Overseeing financial budgets and staff, purchasing land or
homes, implement and complete construction projects to meet
scheduled timelines, ensure home buyers are satisfied within the
communities of completed construction projects.
Construction
Division President
Engage in the design of temporary structures, quality assurance
and quality control, building and site layout surveys, on site
Construction
Engineer
material testing, concrete mix design, cost estimating, planning
and scheduling, safety engineering, materials procurement, and
cost engineering and budgeting, , maintain project control of
labor and equipment for safety, to ensure the project is on
schedule and monitor quality control.
Using estimating software bid price for a project owner is
estimated, decides whether a proposed new product will be
profitable, tracks actual costs as the project develops.
Construction
Estimator
Studying blueprints, be familiar with building codes, schedule
and supervise employees, perform construction duties,
scheduling materials and equipment.
Construction
Foreman
Cleaning and leveling the site, excavate for the foundation,
build retaining walls , handle the building materials, including
transporting, identifying and allocating, use construction
equipment, setting up right of ways, install sewers, water pipes,
dispose hazardous waste.
Construction
Laborer
Handling administrative tasks, have good time management and
human resources management, enter data into a timekeeping
and scheduling system, gather status information, and help to
produce status charts., choose contractors to perform various
aspects of the work, such as plumbing, electrical work and
painting, ensure homes are being erected according to building
and safety codes.
Construction
Manager
Interviewing customers; following warranty guidelines;
scheduling work with subcontractor; monitoring and evaluating
subcontractor work.
Construction Quality
Assurance
Coordinator
Oversee and coordinate the planning, implementation, and
supervision of the project quality control plan., maintain records
relating to testing data, apply statistical quality control
procedures., develop quality control reports, post construction
reports and detailed progress reporting , obtain and investigate
complaints; compile and update customer satisfaction
information.
Construction Quality
Manager
Managing crews of workers at construction sites, responsible
for the efficient use of labour, machines and materials, plan,
schedule work, keep records of the materials used and the
progress made, ensure safety rules are followed, communicate
company rules and policies to the workers, read blueprints and
plans, oversee the training of newly hired laborers.
Construction
Supervisor
Preparing the right-of-way, constructs pipeline by studying
demand estimates; assess sites and watercourse crossings;
conducts various test to ensure the flow of water through the
pipe.
Pipeline
Construction
Manager
Preparing and installing roofing, repair and thatch the roofs of
various buildings and structures, binds, insulate and seal
openings in the roofs.
Roofer
Developing staking sheets; completing and filing forms and
sketches; requesting payment of permit and easement fees;
defining staking requirements.
Staking Aide
Planning surveys; verifying construction location; defining lines
and grades, topography, underground facilities, cut and fill;
providing maps, calculations, documentation, and illustrations.
Surveyor
Inspects workplaces and directs employees to ensure that people
and property are kept safe at all times, enforce legal regulations
and establish more effective procedures , regularly inspects
equipment, tools, and building materials to ensure quality and
safety.
Safety Supervisor
Direct safety programs to train labourers on how to properly
handle and dispose of hazardous materials according to
procedures and policies set by personal corporation regulations
and state laws, to reduce any hazards or injuries possible during
and after the site’s construction.
Safety Director
Provide quotations to potential clients, complete work orders,
and identify new potential clients and install tile flooring,
shower walls, and kitchen back-splashes.
Tile Setter
Organization Structure
Since most of the departments can be outsourced, the structure will be a
lean and modular one. The departments like human resources, marketing and legal
departments can be outsourced. The contract manager is responsible for handling all
the subcontracts. Thus the organizational chart shown in the figure is a very lean one.
Board of Directors
Chairman
Vice Chairmanand
Managing Director
General Manager
Construction Manager
Project Managerand
Contract Manager
Engineering Manager
The sub junior level workers who can be temporary and locally recruited
are –
General construction workers
Heavy truck drivers
Mechanic and repair helpers
Plumbers and pipe fitters
Structure metal workers
Supervisors
Cement masons
Construction helpers
Well drillers
Line installers and repairers
Material moving machine operators
Number Of Personnel At Each Level
The following are the number of people required –
White collared workers – 90
Blue collared workers – 260
The break up will be as follows
BLUE COLLARED WORKERS
Job Title No. of workers
Brick layers 25
Cement Masons 25
Construction Foreman 30
Construction Laborer 86
Construction Supervisor 15
Pipeline/ Plumber 10
Roofer 15
Staking Aide 10
Surveyor 2
Safety Supervisor 15
Tile Setter 15
Electrician 12
WHITE COLLARED WORKERS
Job title No. of workers
Construction accountant 4
Construction Administrative Assistant 10
Construction Cost Analyst 3
Construction Design Services Supervisor 5
Construction Design Technician 15
Construction Director 1
Construction Division President 1
Construction Engineer 15
Construction Estimator 5
Construction Manager 5
Construction Quality Assurance coordinator 2
Construction Quality Manager 2
Safety Director 2
Chief Operating Officer 1
Construction Project Manager 10
Account officer 4
Store Managers 5
The assumption taken here is that the bungalows are of around 3000
square feet and the apartments are of 1000 square feet.
The number of people required in each department in a construction
project varies with respect to the area of the place as well as the cost and time. If the
housing colony has to be completed in a short span of time, then the number of
workers required will be more and the cost will increase. If the budgets are high then
obviously, more labour can be used to complete the work faster.
Recommendations –
Construction is a labour-intensive industry, which places heavy reliance
upon the skills of its workforce.
In the construction sector, a very fast employment growth is expected.
Additionally, excellent job opportunities will exist as the number of job openings
exceeds the number of qualified applicants. Thus, the retention of good people is
very crucial
The structure of the firm should be such that the firm is able to focus on its core
activities and outsourcing is cost effective. Something that can be done by the
firm at a better quality and lower costs should not be outsourced unless a proper
strategy is in place for supporting the same.
Good manpower considering shortage of skilled employees in the labour market
and the reduction in the number of qualified workers proper forecasting and
planning is necessary. Shortage of workforce results in delays leading to a cost
escalation.
Availability of workforce differs from region to region. Even the cost of man
hours is different in different places. Thus it is necessary to keep these factors in
mind before proceeding with the project.
Pre-planning for the manpower should be done with a proper estimation of the
required personnel. This will be of great help to avoid labour related uncertainties.
Management should understand construction industry and realize the importance
of labour resource issues and the need for long-term planning of labour resource
requirements, so allowing them to train and retrain people to address the predicted
skill shortages.
Communication is very important in construction sectors. Communication within
project-based environments presents special challenges. Many of the problems
that develop in construction projects are a result of both the temporary and inter-
disciplinary nature of project teams - each player having a different employer
compounds this arrangement. Practical guidance should be provided on possible
solutions to communication problems.
The construction industry is characterized by the predominance of migratory and
unskilled labour. Therefore, there is need to expand the training and skill
certification programs both in terms of content as well as geographical reach.
Ways should be considered so that employee motivation can be improved by
making use of the principles of human resource management. Through the
practice of the philosophies of strategic human resource management, it is
possible to develop a high level of consistency between organizational and
individual needs.
Thus, the success as a company is dependent on every person who works
there. The collective commitment of every employee to common goals and common
values is what makes the organization a leader in the industry. The firm should
provide career opportunities that offer current rewards in the form of comprehensive
and competitive compensation and benefits as well as meaningful advancement
opportunities. It is important to attract, develop and retain the most highly skilled
workforce in the industry. The company should have an excellent work force with a
commitment to training and development opportunities for employees in every
position in the company.