Nature Release

PROJECT MANPOWER MANAGEMENT

Project Manpower Management
Management Processes in
Construction Practice

S. D. Anderson
Fluor Engineers and Constructors, Inc.

R. W Woodhead
University of New South Wales

A WILEY-INTERSCIENCE PUBLICATION

JOHN WILEY & SONS

New York Chichester Brisbane Toronto
Copyright O 1981 by John Wiley &Sons. Inc.
All rights reserved. Published simultaneously in Canada.
Reproduction or translation of any part of this work
beyond that permitted by Sections 107 or 108 of the
1976 United States Copyright Act without the permission
of the copyright owner is unlawful. Requests for
permission or further information should be addressed to
the Permissions Department, John Wiley & Sons, Inc.

Library of Congress Cataloging in Publication Data:

Anderson, Stuart D
Project manpower management.
"A Wiley-Interscience publication."
Includes index.
1. Construction industry-Management.
2. Industrial project management. 3. Work groups.
I. Woodhead, Ronald W., joint author. 11. Title.
HD9715.A2A52 62C.068 80-22090
ISBN 0-471-95979-0
Printed in the United States of America
Preface
This book is concerned with the construction industry's approach to
project manpower management. The project manpower management area
is viewed at two levels: the personal face-to-face management of small
work groups such as construction crews; and the impersonal management
of groups of people such as the field work force, design groups, and proj-
ect teams. The book specifically focuses on the management processes asso-
ciated with the planning, scheduling, enumerating, and performance moni-
toring of the personal and impersonal aspects of project manpower. The
book does not consider in detail the human behavioral aspects of individuals,
personal management styles, or the organizational behavior of trade union
groups beyond referencing the effect each of these areas has on personal and
impersonal manpower management.
The book introduces a new approach to the description and under-
standing of management processes currently found in practice in the con-
struction industry. This new approach is based on a consideration of de-
cision processes in relation to project team organizational structure, man-
agement roles, policies, and decision making systems associated with the
small, medium-sized, and large construction firms.
A basic set of manpower management functions is presented and is
used to portray the various decision processes and the roles performed
by individual decision makers. In addition, the consideration of the pro-
gressive development of the project team organizational structure in re-
sponse to the increasing management effort in solving the problems raised
by the physical separation between the head office and construction site
gives an interesting insight into project management concepts.
The management function approach together with a focus on decision
processes and manager/supervisor roles, as developed in the book, estab-
lishes the framework methodology for viewing management in action.
This methodology is used to describe four basic manpower management
approaches in the project management area of the construction industry.
It is further used to gain an understanding of the organizational behavior
of the project management team especially in relation to the prevailing
construction environment and the modus operandi of the construction
company. Finally, the individual role of the manager/supervisor in the
management team is established in terms of the management functions he
or she performs and the decision processes in which he or she is involved.
Thus the approach enables both head office and field management per-
sonnel to gain a deep understanding of the modus operandi of manage-
 Preface

ment and decision making in construction from the very largest to the
smallest of construction firms.
A considerable amount of practical information is introduced into the
text. This material emerges whenever the methodology is brought to bear
on current management practice in construction. Thus the approach de-
veloped in the book portrays a variety of management attitudes to proj-
ect manpower management in terms of operational policies, the range and
depth of management functions addressed, and the management roles
(job descriptions) played by key decision makers. In this way, the ma-
terial covered has an appeal to both the professional and the student.
The book has been designed to be self-contained. However, the con-
cepts developed have different levels of focus and potential applications
for the reader. This approach provides the reader with the option to
select those subjects within the text that most closely correspond to his
or her interest, background, and professional experience. Thus the book
has multiple entry points from which the reader may embark.
Although the material can be simply read, it has rigor, and there are
chapters and sections of the book that require careful study to gain a full and
comprehensive understanding of the concepts and subject matter pre-
sented. The reader should carefully peruse and gain a basic understanding
of the scope of project manpower management (Chapter 1) and the
methodology that is developed to describe project manpower manage-
ment in construction practice (Chapters 2, 3, and 4). A grasp of these
concepts will then assist the reader in selecting the entry point of interest.
The multiple entry facet of the book broadens its application and use
for both the professional and the student reader. For example, a reader
with a professional interest in project management concepts currently
employed in construction practice can study the project team structures
associated with the small, medium-sized, and large firms (Chapters 5
through 9). If a professional manager is specifically interested in operat-
ing policies of construction firms of various modus operandi, he or she
should read and study in detail those chapters that expose the manage-
ment attitudes and policies of various-sized construction firms (Chapters
10 through 14). The book further provides the professional manager
with a methodology that can be used to analyze the management roles of
decision makers in various construction management environments (Chap-
ters 6 through 9 and Chapter 15). Finally, the construction professional
can compare the project management approach of his or her firm with
that of another firm by contrasting the project team structures, policies,
and decision processes of a firm operating in a different environment (e.g.,
small firm versus medium-sized firm).
While the book presents many management concepts of interest to the
experienced professional, it can also be utilized by the student reader as
a reference source on project management in construction practice. The
book can enhance the student's understanding of management processes
in construction, the changing management roles of various decision mak-
ers as project size and complexity change, and the different modes of
operation of construction firms as characterized by a firm's policies and
decision processes.
 We would like to thank the many individuals from the construction
industry who have contributed to the development of this book and who
have provided critical and constructive comment throughout its writing.
We specifically thank Dick Foley of Felmley-Dickerson Company, Bill
Kuhne of Kuhne-Simmons, Mortan Crane of Crane Construction Com-
pany, Inc., Illinois, Bill Petraglia of Proctor and Gamble, Cincinnati, and
Robert Nebel of Brown & Root, Houston, for their many helpful sugges-
tions.
Finally, we are deeply indebted to E. Caterson, whose dedicated typ-
ing of the manuscript and management of correspondence between Aus-
tralia, South Africa, and the United States made the book a reality.

Huntington Beach, California

Kensington, Australia
September I980
 Contents
CHAPTER 1 Project Manpower: A New Approach to a Management Problem 1
1.1 What Is Manpower Management? 1
1.2 Project Management Goals 5
1.3 Molding Pressures in the Project Management
Environment 7
1.4 Methodology for Project Manpower Management 8
1.5 Manpower Management Approaches in Practice 10

CHAPTER 2 A Functional Approach to Manpower Management

2.1 General Management Functions 13
2.2 Dissection Framework for Management Functions 14
2.3 The Basic Building Block Functions 20

CHAPTER 3 The Elements of a Decision Process

3.1 Management Functions 24
3.2 Decision Processes 26
3.3 Portrayal of a Decision Process 28
3.4 Example of a Decision Process: Estimate Preparation 30

CHAPTER 4 The Portrayal of Management Roles 37

4.1 The Management Role of an Individual Manager 38
4.2 The Functional Plot 38
4.3 Organizational Concepts 40
4.4 Portrayal of Project Team Management Roles 47

CHAPTER 5 Project Team Concepts

5.1 Project Team Components 52
5.2 The Traveling Project Manager 54
5.3 Field Based Project Management 59
5.4 Total Field Autonomy 62
 Contents

CHAPTER 6 The Project Team Structure: The Components 65

6.1 The Small Firm Environment 66
6.2 Organizational Structure of the Small Firm 69
6.3 The Project Team 73
6.4 Manpower Management Functions at the
Small Firm Level 77
6.5 Managemcnt Roles in Manpower Management 80

CHAPTER 7 The Project Team Structure: The Traveling Project Manager

7.1 The Medium-Sized Firm Environment 86
7.2 Organizational Structure of the Medium-Sized-Firm 90
7.3 The Projcct Team 94
7.4 Manpower Management Functions at the
Medium-Sized Firm Level 9 9
7.5 Management Roles in Manpower Management 102

CHAPTER 8 The Project Team Structure: Field Based Project Management 110
8.1 Thc Large Firm Environment 111
8.2 Organizational Structure of the Large Firm 114
8.3 The Project Team 121
8.4 Manpower Management Functions at the
Large Firm Level 127
8.5 Management Roles in Manpower Management 130

CHAPTER 9 The Project Team Structure: Total Field Autonomy 139

9.1 The Construction Environment 141
9.2 Organizational Structure: Total Field Autonomy 143
9.3 The Project Team: Total Field Autonomy 145
9.4 Manpower Management Functions:
Total Field Autonomy 151
9.5 Management Roles in Manpower Management:
Total Field Autonomy 154

CHAPTER 10 Policies: The Portrayal of Management Attitude

10.1 Policy Formulation 159
10.2 The Function-Policy Plot 160
10.3 The Portrayal of Policies 163

CHAPTER 11 Management Attitudes: Policies of the Small Firm

11.1 Policies of the Small Firm 166
11.2 Management Attitudes of the Small Firm 167
11.3 Small Firm Policy Plots 169
Contents

CHAPTER 1 2 Management Attitudes: Policies of the Medium-Sized Firm

12.1 Policies of the Medium-Sized Firm 173
12.2 Management Attitudes of the Medium-Sized Firm 175
12.3 Medium-Sized Firm Policy Plots 180

CHAPTER 13 Management Attitudes: Policies of the Large Firm

13.1 Policies of the Large Firm 182
13.2 Management Attitudes of the Large Firm 185
13.3 Large Firm Policy Plots 189

CHAPTER 1 4 Management Attitudes: Policies of the

Autonomous Project Team
14.1 Policies of the Autonomous Project Team 194
14.2 Management Attitudes of the
Autonomous Project Team 198
14.3 Autonomous Project Team Policy Plots 202

CHAPTER 15 Manpower Management Decision Processes 206

15.1 Manpower Management Decision Processes 207
15.2 The PTC Manpower Management Decision Process 213
15.3 The TPM Manpower Management Decision Process 218
15.4 The Field Based Project Management
Decision Process 223
15.5 The Total Field Autonomy Decision Process 229

CHAPTER 16 Project Manpower Management: An Overview

16.1 Changing Management Roles 233
16.2 Effective Project Team Management 237
16.3 The Portrayal of Management Processes 239

APPENDIX Project Manpower Management Functions

A.1 Introduction 240
A.2 The Management Function 241
A.3 Project Manpower Management Functions 241
PROJECT MANPOWER MANAGEMENT
CHAPTER 1

Project Manpower:
A New Approach
to a Management Problem

Construction is the creative activity involved in transforming physical re-

sources into a structure conceived as being useful. It is an inherently satis-
fying activity because people gain satisfaction from the productive applica-
tion of their skills and efforts. This is especially true of work in the construc-
tion environment, where each project is unique, job locations vary so that
factory conditions are nonexistent, and each worker, at whatever level, can
see the result of personal effort and thereby can identify with the con-
structive endeavor.
The effective and coherent development of any construction effort, how-
ever, requires the authority and decisive planning of a management team.
Construction objectives are not achieved without directed effort. Field
events and construction objectives do not happen by themselves but must
be planned and striven for over a considerable period of time. Conse-
quently, the effectiveness of field activity depends upon the skill and effort
of the management team in the procurement and use of resources, and in
its leadership and motivation of the workforce in the achievement of con-
struction goals and objectives.
In construction, as in any other enterprise, people are an indispensable
resource. A person is, however, a very complex and often unpredictable
being. It is not surprising, then, that management of people consumes a
large proportion of the management effort on any construction project.
This chapter introduces basic concepts of project manpower manage-
ment and suggests a framework for viewing the project manpower manage-
ment approaches that currently exist in the construction industry.
1.1 WHAT IS The management of people as a human resource ranges over a wide spec-
MANPOWER trum: from that associated with the management and behavior of an indi-
MANAGEMENT? vidual, through the establishment and management of temporary work
groups (such as crews and design or project team sections), to concern
 A New Approach

with the entire project work force and to the relationships that exist and
develop between management and organized labor. This wide range of
human management concern can be readily divided into four major hier-
archical areas:

1. Human relations
2. Personal management of labor
3. Impersonal management of labor
4. Industrial relations

The hierarchical nature of these four human management areas reflects

a progressive growth in the organizational ways in which people are man-
aged while portraying a progressive loss of individual identity.
Each of these four human management areas poses unique management
problems that affect manpower management. To establish the scope of
project manpower management addressed in this book, it is useful to
elaborate each human management area in more detail so that a frame-
work of reference can be established.

1. Human Relations. This most fundamental human management area

is concerned, first, with those aspects of individual human behavior that
relate to personality and skill level and the requirements of the work en-
vironment, and second, with the detection and resolution of issues that
arise between individuals.
At the individual worker level, this management area is concerned
initially with the selection and hiring processes and the assessment of an
individual's skills, past performance, attitudes toward work, and the
manner in which the individual will fit into a close work environment with
others. Once hired, management concern additionally focuses on the qual-
ity of the work produced and the extent to which the employee can be
relied upon to work without constant supervision.
At the individual manager level this management area is concerned
initially with an assessment of the management potential of the individual,
past managerial experience, and leadership qualities. Once established as a
member of the management team, concern can be directed to improving
the individual's management style so that harmonious and effective rela-
tions can develop between the manager and the workers under the man-
ager's control. Finally, at this human management level, management con-
cern should be directed to the improvement of motivational factors that
strengthen attitudes toward work and with enhancing worker pride in the
quality and performance of the work produced.
2. Personal Management of Labor. This human management area is
concerned with the face-to-face contact and management of small work
groups. It is here called the personal management of labor because the
relevant field managers and supervisors should know the individual mem-
bers of the work group by name, skill level, and reliability and should
strive to develop a close rapport with the group as a whole.
What Is Manpower Management?

At the construction crew level this labor management area is concerned

with the performance of all construction work, the attainment of accept-
able productivity levels and work quality, and the development of har-
monious work relations between the crew members and field supervisors.
The critical areas requiring constant attention are the allocation of work
assignments among the individual crew members that best matches their
skills and level of performance, the development of efficient work patterns,
and the consequent proper sizing of crews.
3. Impersonal Management of Labor. This human management area
is concerned with the decision processes and management effort associated
with the planning, scheduling, enumerating, and performance monitoring
of large groups of personnel at the field work force, design group, and
project management team levels. It can be considered as an impersonal
management effort insofar as the individual identities of members are lost,
and to the extent that group totals and overall performance indicators are
considered in decision processes.
At the field work force level, for example, management concern is di-
rected to determining the labor content of a project, establishing desirable
or attainable project manpower profiles, enumerating and scheduling the
number of construction crews that will work the project, and the moni-
toring, recording, and general overall management of the total work force
as a whole.
4. Industrial Relations. This human management area is concerned
with the contractual and jurisdictional aspects of dealing with trades and
organized labor groups, the availability of skilled labor, and the terms
under which individuals are hired, paid, and worked. In the majority of
construction projects industrial relations guidelines are negotiated and/or
established before construction work begins. These guidelines thus be-
come constraints under which all other human management areas operate.
At the work force level, management concern focuses on the availabil-
ity of skilled labor, the size of local labor pools, and the establishment of
close relations with key representatives of organized labor groups and
local hiring halls. In addition, management effort is directed to the resolu-
tion of restrictive work practices and jurisdictional issues that interrupt the
otherwise orderly progression of work.
At the crew level of labor management, concern is focused on the sizing
of crews to meet industrial relations guidelines and on the issuing of work
assignments that eliminate or minimize the occurrence of jurisdictional
disputes.

Each of the four human management areas presented above have been
described, at least in broad outline form, in terms of areas of management
concern. In addition, each human management area has been focused on
representative construction management problems at the workface, crew,
and project levels. Using these human management areas and descriptions
as a frame of reference, it is possible to focus on a meaningful definition
of project manpower management as addressed in this book.
The scope of manpower management, as distinct from the manner in
 A New Approach

which it is performed and organized, can be outlined in terms of the de-

cision processes it addresses and by the techniques, documents, and infor-
mation flows used by these decision processes. The project manpower
management decision processes considered in this book cover both the
personal and impersonal human management areas described above and
are affected by both the human relations and industrial relations human
management areas. The latter two human management areas will not be
considered in this book in any detail beyond identifying ways in which
they affect personal or impersonal manpower management.
Using this approach, manpower management can be defined in terms
of all the decision processes relating to:

1. The determination of the size of the project work force (whether

field work force, design group, or field management team).
2. The acquisition of labor and control of the size of the project work
force over the life of the project.
3. The structure and breakdown of the project work force into work
groups such as crews and management sections.
4. The planning, scheduling, directing, and monitoring of manpower
activity.
5. The sizing and composition of specific crews in relation to the work
content of project activities and the work assignments to individ-
ual crew members.

As indicated above, the scope of project manpower management can be

presented in terms of the description and structuring of typical manage-
ment decision processes. Collectively, the description and structuring of
typical management decision processes for each of the above management
areas, provides an extensive framework for viewing the scope of project
manpower management. For such a framework to be useful for the por-
trayal of management processes, it is necessary to inject a focus on man-
agement roles, policies, and the impact of organizational structures on
project manpower management processes and styles of management. Thus
for example each decision process can be illustrated by describing the
manner in which managers implement their decision processes through
management techniques that are commonly used in practice. Similarly, a
consideration of the organizational and management solutions to prob-
lems raised by the separation of project sitc and head office and the por-
trayal of the management roles adopted by the various project team mem-
bers broadens the presentation of the manpower management area to the
extent that a practical focus emerges.
The scope of project manpower management addressed in this book is
seen in terms of the management roles of key decision makers, the policies
that guide them as they perform decision processes, and the organizational
structures and management environment in which they operate. To provide
a basis for such a viewpoint, it is necessary to understand the various
management goals that relate to the project management area and the
Project Management Goals

pressures that mold the management environment. Once this is accom-

plished, a start can be made on the development of a methodological ap-
proach to project manpower management.
1.2 PROJECT The success of a construction company, as with any company, is measured
MANAGEMENT in terms of the profit it earns. Since construction is project oriented, the
GOALS ability to generate profit rests with the success of each project management
team in its management of the construction project. The primary goal of
project management, therefore, is to build an optimum facility with ac-
ceptable quality workmanship within a specified time frame and at an
allowable cost (results achieved). If this primary goal is achieved, the
project management effort will contribute to the profit of the company.
At the project team level however project management success is
achieved in many complementary ways: by the results achieved; by the
quality of work performed; by the ability to anticipate and cope with
problems; by the development of a highly coordinated and motivated
team; by thc individual's pride and satisfaction in being involved with the
project; and by the contribution from the efforts of the management team
to the profit of the company.
The primary project management goal is achieved through the effective
utilization of five resources: machinery, material, manpower, money, and
management. The latter resource, management, can be evaluated in terms
of its collective skill, know-how, and effort. Of these five resources, man-
power is often the most difficult to manage, because people are a complex
and volatile resource. Cocsequently, prediction of manpower levels and
productivity targets, together with monitoring and measuring work prog-
ress, presents a significant challenge to the project management team. In
addition, construction and project progress can be achieved only through
the attainment of effective man-hour effort and the meeting of scheduled
milestone dates. Thus project management achievement depends on the
successful obtainment of forecasted productivity and manpower levels.
The successful outcome of a project also depends heavily on the skill,
efficiency, and effectiveness of the management team; consequently, man-
agement know-how becomes a vital resource. This key management re-
source is often overlooked or taken for granted when assessing the project
management team's utilization of the other resources.
The ability to manage the five resources has a definite impact on the
profit potential of any construction project. In terms of building construc-
tion and other types of projects associated with small and medium-sized
construction firms, manpower is the only resource that is totally managed
in the field. Material and machinery costs are more-or-less fixed on these
types of projects, with some savings poqsihle through timely purchases and
payments or the effective and efficient use of construction equipment. Cash
flow analysis can assist in the attainment of profit by the prevention of
liquidity problems and the reduction of interest costs through timely pay-
ments. In many cases, the competitive edge in building construction goes
to the company that can generate profit through successful manpower
management techniques.
The labor dollar content of a project in the small to medium-sized firm
 A New Approach

construction environment is significant enough that effective manpower

management can reduce labor costs and thereby increase profits for the
company. Furthermore, the size of thc direct field labor force in this
environment is such that reducing crew sizes, even if by one worker, and
the cultivating of more productive and motivated crcws through better
management will reduce costs, increase profits, and more than compen-
sate for the increased cost of applying improved management techniques.
The primary objective remains to maximize profit, and effective manpower
management provides a means of achieving this construction management
goal.
AS the construction environment expands into large firms and multi-
million dollar projects, the importance and/or focus of the five resources
changes, especially for industrial construction projects such as process or
power plants. These projects, for example, normally require significant
material control efforts both in the home office and in the field. Although
construction manpower is also an important factor in the project manage-
ment process, manpower is no longer the only field managed resource.
Nonetheless, it is still a critical aspect of project management and a re-
source that can, if managed effectively, provide profit. Although the
material and plant machinery cost component is a greater percentage of
the total project cost, the labor cost component is still significant, mainly
because the total cost of these projects is so high. Thus, substantial labor
cost savings are possible through effective manpower management tech-
niques, especially when direct field labor dollars are being expended at a
level such as $500,000 or more a day.
In the large project environment, predictions of manpower levels and
productivities become more critical because of the size of the labor force.
The magnitude of the labor force itself raises additional problems, such as
keeping track of where people are working and in coordinating work so
as to prevent wasted time. These types of problems and the magnitude of
the management effort needed to control them inherently causes a signifi-
cant growth in the size of the project management team. For this reason,
management know-how becomes a critical resource, and the managerial
skill of the project team members becomes an essential component for
successful project management. The engineering, design, and construction
project further compounds manpower management because of the large
engineering and design task forces required for such projects. In this area
of project costs, a considerable number of labor dollars are expended.
Thus thc effective management of the management team itself is critical to
successfully meeting allowable budgets.
While successful management of manpower can lead to labor cost re-
ductions, it also impacts progress, which has a direct influence on meeting
specified project time frames or schedule completion dates. Since man-
power is a vital aspect of achieving progress and scheduled target dates,
predicting manpower levels, productivity, and other factors related to
manpower assume greater importance.
Meeting scheduled completion dates is just as critical as meeting allow-
able budgets, because if the facility is not available on time, the client/