01 Introduction to Construction Management

Construction Management
By
Akash Padole
Department of Civil Engineering
Introduction to Construction
Management

Contents
1.1 Concept of Management, Principles of
management, contribution by eminent
personalities towards growth of management
thoughts.
1.2 Significance of construction management,
objectives & functions of construction
management
1.3 Resources required for construction.
Akash Padole 2

Concept of Management
A. Traditional Concept
• Management is the art of getting things done
through others.
• A manager is one who accomplishes organizational
objectives by directing the efforts of others. (C.S.
George)
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B. Modern Concept
• Management is establishing an effective environment
for people operating in formal organizational group.
• Management is the co-ordination of all resources
through the process of Planning, Organizing,
Directing and Controlling in order to attain stated
objectives. (F.W. Taylor)
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Definition of Management
➢ According to Harold Koontz,
• “Management is the art of getting things done
through and with people in formally organized
groups”.
➢ According to Henri Fayol,
• “To manage is to forecast and to plan, to organize, to
command, to co-ordinate and to control”.
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➢ According to F. W. Taylor,
• “Management is an art of knowing what to do, when
to do and see that it is done in the best and cheapest
way”.
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Who are Managers?
• Someone who works with and through other people
by coordinating their work activities in order to
accomplish organizational goals.
• A manager is responsible for planning and directing
the work of group of individuals, monitoring their
performance and taking corrective action when
necessary for the accomplishment of organizational
goals and objectives.
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Managerial Skills
✓ There are three types of skills required by a manager.
• They are:
i. Conceptual Skills- These skills are required by the
employee who are in top level management.
ii. Technical skills- These skills are required by the
employee who are in middle level Management.
iii. Human Relations Skills- These skills are required by
the employee in the supervisory level.
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Levels of Management
• The level of management determines a chain of
command, the amount of authority & status enjoyed
by any managerial position.
• The levels of management can be classified in three
broad categories:
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✓ The role of the Top Management can be summarized
as follows:
• Top management lays down the objectives and broad
policies of the enterprise.
• It issues necessary instructions for preparation of
department budgets, procedures, schedules etc.
• It controls & coordinates the activities of all the
departments.
• It is also responsible for maintaining a contact with
the outside world.
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✓ The role of the Middle Manager can be summarized as
follows:
• They devote more time to organizational and directional
functions.
• They execute the plans of the organization in accordance
with the policies and directives of the top management.
• It also sends important reports and other important data
to top level management.
• They evaluate performance of junior managers.
• They are also responsible for inspiring lower level
managers towards better performance.
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✓ The role of the First line manager can be summarized
as follows:
• Assigning of jobs and tasks to various workers.
• They guide and instruct workers for day to day
activities.
• They are responsible for the quality as well as
quantity of production.
• They communicate workers problems, suggestions,
and recommendatory appeals to the higher level and
higher level goals and objectives to the workers.
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Principles of Management
• Management principles are the statements of
fundamental truth based on logic which provides
guidelines for managerial decision making and
actions.
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FREDRIC WINSLOW TAYLOR
• Father of Scientific Management.
• American mechanical engineer.
• He worked for the improvement of
industrial efficiency.
• Taylor thought that by scientifically,
work would be possible to find ‘one
best way to do it’.
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Principles of Scientific Management
➢ Science not Rule of Thumb:
• Scientific investigation should be used for taking
managerial decision rather than basing decision on
opinion or rule of thumb.
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➢ Harmony, Not Discord:
• Under factory system, manager serve as link
between owner and workers.
• Exist a possibility of class conflict between managers
and workers.
• Taylor emphasized complete harmony between
management and worker.
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➢ Co-operation, Not Individualism:
• Complete co-operation between labour and
management to achieve the best possible result.
• Taylor believed that the basic interest of worker and
management is the same.
• Extension of principle Harmony not discord.
• Equal division of work and responsibility.
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➢ Development of each and every person to his/her
greatest efficiency and prosperity:
• Scientific management stood for worker
development.
• Right men should be engaged in the right job.
• Worker should provided with training.
• Worker should be scientifically selected.
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HENRI FAYOL
• Henry Fayol, also known as the ‘Father of Modern
Management Theory’ gave a new perception of the
concept of management.
• He introduced a general theory
that can be applied to all levels
of management and every
department.
• The Fayol theory is practiced by
the managers to organize and
regulate the internal activities
of an organization. Akash Padole 21

• Fayol's "14 Principles" was one of the earliest
theories of management to be created, and remains
one of the most comprehensive.
• He's considered to be among the most influential
contributors to the modern concept of management.
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“14 Principles” of Management”
1. Division of Work – When employees are specialized,
output can increase because they become increasingly
skilled and efficient.
2. Authority – Managers must have the authority to give
orders, but they must also keep in mind that with
authority comes responsibility.
3. Discipline – Discipline must be upheld in organizations,
but methods for doing so can vary.
4. Unity of Command – Employees should have only one
direct supervisor.
5. Unity of Direction – Teams with the same objective
should be working under the direction of one manager,
using one plan. Akash Padole 23

6. Subordination of Individual Interests– The interests of
one employee should not be allowed to become more
important than those of the group. This includes
managers.
7. Remuneration – Employee satisfaction depends on fair
remuneration for everyone. This includes financial and
non-financial compensation.
8. Centralization – This principle refers to how close
employees are to the decision-making process. It is
important to aim for an appropriate balance.
9. Scalar Chain – Employees should be aware of where they
stand in the organization's hierarchy, or chain of
command.
10. Order – The workplace facilities must be clean, tidy and
safe for employees. Everything should have its place.
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11. Equity – Managers should be fair to staff at all
times, both maintaining discipline as necessary and
acting with kindness where appropriate.
12. Stability of Tenure of Personnel – Managers should
strive to minimize employee turnover. Personnel
planning should be a priority.
13. Initiative – Employees should be given the
necessary level of freedom to create and carry out
plans.
14. Esprit de Corps – Organizations should strive to
promote team spirit and unity.
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MAX WEBER
• Weber created the Bureaucratic
Theory, which says an
organization will be most efficient
if it uses a bureaucratic structure.
• Weber's ideal business uses
standard rules and procedures to
organize itself.
• He believed this strategy was
especially effective for large
operations.
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➢ The theory includes the following five principles:
1. Task specialization – Weber stressed the importance
of each employee fulfilling a specific role within a
company.
2. Hierarchy – Weber wanted each company to have a
clear hierarchy within the organization.
3. Formal selection – When selecting leaders,
businesses view a person's qualifications. They
should be appointed to certain roles based on
qualifications, which means they won't be elected
by vote.
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4. Rules and requirements – These ensure everyone
knows what's expected of them. Weber wanted
business to have uniform standards, and rules are
essential to achieve this goal.
5. Impersonal – The rules and regulations make a
business structure impersonal. Promotions aren't
about emotions or personal ties, but rather
performance.
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ELTON MAYO
• Elton Mayo's experiments
showed an increase in worker
productivity was produced by the
psychological stimulus of being
singled out, involved, and made
to feel important.
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• Hawthorne Effect can be summarized as “Employees
will respond positively to any novel change in a work
environment like better illumination, clean work
stations, relocating workstations, etc.”
• Employees are more productive because they know
they are being studied.
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What is Construction Management?
• Construction management is the overall Planning,
Coordination, and Control of a project from Inception
to completion aimed at meeting a client’s
requirements in order to produce a functionally and
financially viable project.
Akash Padole 33

Significance of Construction Management
• Under Developed to Developing country through major infra-
projects such as multipurpose river valley projects, industrial
development projects, NHDP projects, Irrigation Canal
projects, Railway Projects, Port development projects etc.
• On an average about majority of the total expenditure of our
5 year plans is invested in construction works.
• Construction is an everlasting activity across the globe.
• Construction is a major economic activity in India and playing
important role in the development of the country
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• Every sector of our economy involves construction
activities.
• Construction industry Provides employment on large
scale.
• If construction project schedules are not maintained, the
cost increases.
• Use of machine and equipment's in construction industry
increases the quality of construction.
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• India is still developing country (scope for
construction)
• The input of the labor, capital, machinery and raw
materials can never become production without the
catalyst of management
• In order to ensure that the huge resources invested
in the construction industry are deployed efficiently
for the benefit of society it needs Construction
Management Professionals.
Akash Padole 36

Objectives of Construction Management
• Completing the work within estimated budget and
specified time.
• Providing safe and satisfactory working conditions
for all personnel and workers.
• Taking sound decisions at the lowest practical
management level through delegation of authority.
• Motivating people to give of their best within their
capacities.
• Creating an organization that works as a team.
Akash Padole 37

Functions of Management
✓ There are five types of Functions of management.
• They are:
1. Planning- Defines the goal & establishing strategy.
2. Organizing- Includes determining what task has to be
done, who is to do them.
3. Staffing- Includes recruitment of people and training
them towards the project.
4. Leading- Includes the motivating the employees and
directing the activities.
5. Controlling- It is the process of monitoring the
performance.
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1. Planning and Scheduling:
• Planning involves formulation of a number of
alternative realistic work plan for achieving specified
objectives and finally selecting a plan which is best
suited from the stand-point of available resources
and constraints imposed upon the project.
• It essentially covers the aspects of “what to do” and
“how to do it”.
Akash Padole 39

• Scheduling is the fitting of the final work plan to a
time scale.
• It shows the duration and order of various
construction activities.
• It deals with the aspect of “when to do it”.
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2. Organizing:
• Organizing is concerned with
– Division of the total construction work into
manageable departments/ sections.
– Systematically arranging various operations by
delegating specific tasks to individuals.
– The relationship between various personnel are
established.
– The organizational structure of the project is
depicted by a flow chart.
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3. Staffing:
• Organizing involves the division of project work into
sections and staffing is provision of people to fill the
positions so created
• Staffing functions include
– Recruiting the right people
– Arranging staff training courses
– Carryout proper staff assessment
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4. Directing or Leading:
• The directing function is concerned with training
subordinates to carryout assigned tasks, supervising
their work and guiding their efforts.
• The essence of directing lies in the ability to motivate
people individually and as groups to utilize their
creative efforts in achieving specified objectives.
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5. Controlling:
• Controlling is necessary for ensuring Effective and
Efficient working.
• It involves a constant review of the work plan to
check on actual achievements and to discover and
rectify deviations through appropriate corrective
measures.
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• The essentials in management control are:
– Actual performance measurement (Progress,
quality, cost),
– Comparison of actual and planned performance,
– Analysis of shortfall in performance, identification
and implementation of suitable remedial
measures.
Akash Padole 45

Resources for Construction Industry
• Materials
– Aggregate, Cement, Bitumen, Steel, etc.
• Manpower
– Unskilled, Skilled, Operators, Engineers, Managers, etc.
• Machinery
– Mixing plants, Transit mixers, cranes, boom placers,
concrete pumps, rollers, pavers, graders, etc.
• Funds
– ADB (Asian Development Bank), World Bank, State/Central
Govt., PSUs (Public sector undertakings), etc.
• Space
– Govt. land /private land
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Materials
• Brick, stone, timber, cement, water, aggregate, paint,
electrical fittings, lime, sand etc.
• Material schedule showing quantity, quality and time of
delivery should be prepared with reference to work schedule
• Plan the adequate supply of material.
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Manpower
• Timely employment of just required numbers of
workmen of right trade and skill.
• Over-manning and under-manning both are bad.
• Sudden fluctuations in labor strength should be
avoided.
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• Draw a chart of manpower needed using CPM
network.
• Adjust schedule and requirement avoiding sudden
fluctuations.
• Ascertain availability of right trade and skill for
recruitment.
• Maintain a reasonable ratio between supervisor and
workmen.
Akash Padole 49

Machinery
• Requirements depends on type of project.
• Batching plant, mixer, trucks, vibrator, tractors,
excavators and cranes etc.
• Equipment schedule or calendar should be prepared.
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• Equipment's can be transferred from one site to
another or can be purchased new depending on
economic analysis.
• Non-availability of right equipment or tool may lead
to financial loss or can hold up the work.
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Funds/Money
• All other resources depends on availability of funds.
• So financial resources should be planned very
carefully.
• ADB (Asian Development Bank), World Bank,
State/Central Govt., PSUs (Public sector
undertakings)
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Govt. land/ Private land
• Most important resource.
• Govt. land/ Private land .
Akash Padole 53

Project Management
• An application of knowledge, skills, tools and
technique to meet the project requirements.
• The objective is to use the optimum resources to
accomplish a goal in minimum time.
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01 Introduction to Construction Management

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