B.

Sc INTERIOR DESIGN AND DECORATION

VI SEM

PROJECT MANAGEMENT

UNIT 1
PROJECT PLANNING, SCHEDULING & CONTROLLING

CHAPTER 1
Introduction to project management, construction industry, roles, responsibilities of project managers, types of projects-objectives and project lifecycle,
existing construction practices and project management systems, project team, organization, roles, responsibilities.

INTRODUCTION TO PROJECT MANAGEMENT

● A farmer taking up crop cultivation
● A construction company constructing a bridge Indian Railways changing the meter gauge railway track
to broad gauge
● An FMCG company introducing its products into a new virgin market
● A company hiring fresh graduates
● A student pursuing MBA
What is common to all these? All these are projects. A project is not merely establishing an industry or
constructing a building. It is just something new, something unique, planned and executed for good.

Project is a unique process, consisting of a set of coordinated and controlled activities with start and finish
dates, undertaken to achieve an objective confirming specific requirements, including the constraints of time,
cost and resource.

Project is a temporary endeavor undertaken to create a unique product or service or result.

Project Characteristics Despite above diversities, projects share the following common characteristics.
● Unique in nature.
● Have definite objectives (goals) to achieve.
● Requires a set of resources.
● Have a specific time frame for completion with a definite start and finish.
● Involves risk and uncertainty.
● Requires cross-functional teams and interdisciplinary approach.

Project Performance Dimensions Three major dimensions that define the

project performance are scope, time, and resource. These parameters are
interrelated and interactive. The relationship is generally represented as an
equilateral triangle. The relationship is shown in figure

It is evident that any change in any one of the dimensions would affect the other.
For example, if the scope is enlarged, the project would require more time for
completion and the cost would also go up. If time is reduced the scope and cost
would also be required to be reduced. Similarly any change in cost would be reflected in scope and time.
Successful completion of the project would require accomplishment of specified goals within scheduled time and
budget. In recent years a fourth dimension, stakeholder satisfaction, has been added to the project. However,
the other school of management argues that this dimension is an inherent part of the scope of the project that
defines the specifications to which the project is required to be implemented. Thus the performance of a project
is measured by the degree to which these three parameters (scope, time and cost) are achieved.

Project Life Cycle

Every project, from conception to completion, passes through various phases of a life cycle synonym to the life
cycle of living beings. There is no universal consensus on the number of phases in a project cycle. An
understanding of the life cycle is important to successful completion of the project as it facilitates understanding
the logical sequence of events in the continuum of progress from start to finish. Typical project consists of four
phases- Conceptualization, Planning, Scope Cost Time Figure 1. Project performance dimensions Execution
and Termination. Each phase is marked by one or more deliverables such as Concept note, Feasibility report,
Implementation Plan, HRD plan, Resource allocation plan, Evaluation report etc.

● Conceptualization Phase
The Concept phase, starting with the seed of an idea, covers identification of the product / service, Pre-feasibility,
Feasibility studies and Appraisal and Approval. The project idea is conceptualized with initial considerations of
all possible alternatives for achieving the project objectives. As the idea becomes established a proposal is
developed setting out rationale, method, estimated costs, benefits and other details for appraisal of the
stakeholders. After reaching a broad consensus on the proposal the feasibility dimensions are analyzed in detail.
● Planning Phase
In this phase the project structure is planned based on project appraisal and approvals. Detailed plans for activity,
finance, and resources are developed and integrated to the quality parameters. In the process major tasks need
to be performed in this phase are
• Identification of activities and their sequencing
• Time frame for execution
• Estimation and budgeting
• Staffing A Detailed Project Report (DPR) specifying various aspects of the project is finalized to facilitate
execution in this phase.

● Execution Phase
This phase of the project witnesses the concentrated activity where the plans are put into operation. Each activity
is monitored, controlled and coordinated to achieve project objectives. Important activities in this phase are
• Communicating with stakeholders
• Reviewing progress
• Monitoring cost and time
• Controlling quality
• Managing changes

● Termination Phase
This phase marks the completion of the project wherein the agreed deliverables are installed and project is put
into operation with arrangements for follow-up and evaluation.
Objectives of Project management
There are four major objectives of project management
● Scope: Scope means what are the expectations from you as a project manager and your team. A civil
contractor always has welldefined scope, like all civil works including excavation, foundation, concreting,
brickwork, plastering of all walls as per the attached drawings.
● Performance: A project is always expected to have a well defined performance level. If a project is unable
to adhere to the desired performance of a customer, it is certainly an unsuccessful project.
● Time: A successful project is the one which is completed within the time limits perceived during the
planning. As the cost is dependent on time, time management becomes a crucial activity of project
management.
● Cost: It is dependent on all the above objectives. Mathematically it can be written as: Cost = f (P, T, S).
Therefore, cost is a function of performance, time and scope. If any of the above increases, it is surely going to
increase the cost of the project. Another approach in defining the objectives is the SMART approach. Specific:
Project should target a specific goal Measurable: It should be quantifiable Attainable: It should be attainable with
resources available Realistic: It should be realistic in nature Time Limit: There should be fixed time limits.

Importance of Project Management

● What has led to increased usage of the concept of project management in recent times? Rapidly changing
technologies: Technologies are changing very fast, so all manufacturing as well as service organizations
have to cope up with technological changes, which provide a big scope for project management.
● High entropy of the system: Changes are very fast. So, energy levels are high. To adapt to the fast
changing world, no organization can stick to old things or systems. Any modification or modernization
leads to the need of project.
● Squeezed life cycle of products: Product life cycle is squeezed to a great extent with innovations taking
place at a very rapid rate. Projects are needed for the upgradation of products.
 ● Globalization impact: All producers and service providers in the present world are exposed globally. They
need to modify their system of operations to match the global practices, thus creating opportunity for
projects.
● Large organizations: They face problems of management of huge workforce and work division, so they
divide their work in projects and create a team to accomplish the objectives in the form of projects. This
has also helped the organization to develop a method for performance appraisal.
● Customer focus: Increased customer focus has been a market trend in recent times. A few years back,
cost reduction was a major formula of success for an enterprise. Thus, there was more emphasis on
standardization. In recent years, customer focus has redirected market towards customization. Though
it is not purely customization, it is more of a combination of standardization and customization. All this
has led to the application of project management.

Roles of project manager

The project manager is responsible for the following key roles during implementation:
Planning: looking ahead to implementation and determining the elements of the project; for each element,
scheduling durations, resources, costs, etc.
Organizing: selecting the project team and determining the team’s responsibilities; Managing: coordinating
activities of the project team, contractors, consultants, clients, and/or financing agency(ies);
Supervising: implementing control techniques for design reviews, construction checks, milestone assessments,
progress meetings, and reports, both informal and formal; and Financial controlling: administering financial
aspects such as invoice approvals, progress certificates, payment of accounts, etc.
● ● ● The project manager is ultimately responsible for implementing and completing the project on time, within
budget and in accordance with technical requirements. ● ● ●
Project management plays a crucial role in the construction industry for several reasons:

Coordination of Resources: Construction projects involve numerous resources, including materials, equipment,
labor, and finances. Project management ensures these resources are effectively allocated and utilized to
complete the project within the constraints of time and budget.

Scheduling and Time Management: Construction projects typically have strict deadlines. Project management
helps in creating realistic schedules, identifying critical paths, and managing timelines to ensure timely
completion of various tasks and the overall project.

Cost Control: Construction projects are prone to cost overruns due to factors like material price fluctuations,
labor issues, and unexpected delays. Project management involves cost estimation, budgeting, and monitoring
expenses to keep the project within budget.

Risk Management: Construction projects are inherently risky due to uncertainties such as weather conditions,
regulatory changes, and unforeseen site conditions. Project management identifies potential risks, develops
mitigation strategies, and implements contingency plans to minimize the impact of risks on project objectives.

Quality Assurance: Maintaining quality standards is crucial in construction to ensure safety, durability, and
compliance with regulations. Project management involves setting quality benchmarks, implementing quality
control measures, and conducting inspections to deliver a high-quality final product.

Communication and Stakeholder Management: Construction projects involve various stakeholders, including
clients, architects, engineers, subcontractors, and regulatory authorities. Effective project management
facilitates clear communication, fosters collaboration, and manages stakeholders' expectations to ensure
everyone is aligned with project goals.

Documentation and Reporting: Construction projects generate vast amounts of documentation, including
contracts, permits, drawings, and progress reports. Project management involves maintaining accurate
documentation and providing regular updates to stakeholders to track progress and make informed decisions.

Health and Safety Compliance: Construction sites are inherently hazardous environments. Project management
ensures compliance with health and safety regulations, implements safety protocols, and promotes a culture of
safety to protect workers and minimize the risk of accidents.

Overall, project management in the construction industry is essential for optimizing resources, managing risks,

ensuring quality, and delivering projects successfully within scope, time, and budget constraints.
 TYPES OF PROJECTS

According to the source of capital:

● Public: Financing comes from Governmental institutions.

● Private: Financing comes from businesses or private incentives.

● Mixed: Financing comes from a mixed source of both public and private funding.

Examples of Public Projects-Infrastructure

Transportation infrastructure – Bridges, roads, airports, rail transport, etc.
Water infrastructure – Water supply, water resource management, flood management, proper sewage and
drainage systems, coastal restoration infrastructure
Power and energy infrastructure – Power grid, power stations, wind turbines, gas pipelines, solar panels
Telecommunications infrastructure – Telephone network, broadband network, WiFi services
Political infrastructure – Governmental institutions such as courts of law, regulatory bodies, etc.; Public security
services such as the police force, defense, etc.
Educational infrastructure – Public schools and universities, public training institutes
Health infrastructure – Public hospitals, subsidized health clinics, etc.Recreational infrastructure-Public parks
and gardens, beaches, historical sites, natural reserves

Examples of Private Projects

1. Residential Construction:Single-family homes, apartments, condominiums, etc. Financing may come

from mortgages, private loans, or investments from developers or real estate firms.
2. Commercial Construction: Office buildings, retail stores, restaurants, hotels, etc. Financing often
comes from private investors, commercial loans, or real estate investment trusts (REITs).
3. Industrial Construction: Factories, warehouses, manufacturing plants, etc.Financing can be sourced
from private investors, industrial loans, or corporate funding.
4. Institutional Construction: Schools, hospitals, universities, government buildings, etc.Financing may
come from government budgets, grants, or bonds issued by public institutions.
5. Specialized Construction: Projects such as sports stadiums, entertainment complexes, theme parks,
etc.Funding often involves a mix of private investment, sponsorships, and public financing in some
cases.
6. Mixed-Use Developments:Projects combining residential, commercial, and/or recreational
spaces.Financing typically involves a combination of private investments, bank loans, and sometimes
government incentives.

In all these cases, private financing can play a significant role, either as the primary source of funding
or in combination with public funding or incentives. Private investors, developers, banks, and other
financial institutions often provide capital for construction projects in exchange for returns on their
investments.
Public-Private Partnership (PPP)?
A public-private partnership (PPP) unites the public and private sectors to carry out a project or offer a service
that is typically handled by the public sector. Public-private partnerships (PPPs) come in a variety of shapes and
sizes, depending on the private party’s level of involvement and risk tolerance. Normally, the conditions of a PPP
are outlined in a contract or agreement to specify the obligations of each partner and allocate risk. When private-
sector technology and creativity are combined with public-sector incentives to finish projects on schedule and
within budget, these collaborations are successful.

Advantages of Public-Private Partnership (PPP)

● The benefit of a PPP is that when appropriate cooperative agreements between the public and private
sectors are employed, the management abilities and financial savvy of private enterprises may result in
better value for money for taxpayers.
● When a project is funded through a public-private partnership, it can either be completed sooner or
become feasible because investments are made by the private sector entity for a predetermined amount
of time.
● Public services may become more effective, efficient, and competitive as a result of PPP. In a situation
when there are budgetary constraints, it can raise additional funding and supplement the limited public
sector capacities.
● PPP does not constitute privatisation because it entails the government’s complete retention of
responsibility for delivering the services. The division of risk between the public institution and the private
sector is clearly defined.
● The private company is chosen through an open, competitive bidding process and is compensated
depending on performance.
● In developing nations when governments are constrained in their ability to borrow money for significant
projects, the PPP approach may be an alternative.
● It may also provide the necessary knowledge for large-scale project planning or execution.

Public-Private Partnership (PPP) models

Commonly adopted models of PPPs include Build-Operate-Transfer (BOT), Build-Own-Operate (BOO), Build-
Operate-Lease-Transfer (BOLT), Design-Build-Operate-Transfer (DBFOT), Lease-Develop-Operate (LDO),
Operate-Maintain-Transfer (OMT), etc.These models are different on the levels of investment, ownership control,
risk sharing, technical collaboration, duration, financing etc.

BOT (Build–Operate–Transfer):

It follows a standard PPP paradigm where the private partner is in charge of designing, constructing, operating
(during the agreed-upon period), and handing back the facility to the public sector. The project’s private sector
partner must provide the funding and assume responsibility for its construction and upkeep (usually a greenfield
project). The public sector will permit business partners to charge users for services. A key illustration of the
BOT concept is the national highway projects that NHAI has leased out under the PPP form.

BOO (Build–Own–Operate):

According to this approach, a private entity will retain ownership of the newly constructed facility.The public
sector partner consents to “buy” the goods and services delivered by the project on mutually acceptable terms
and circumstances.

BOOT (Build–Own–Operate–Transfer):
In this BOT form, the project is turned over to the government or a private operator after the agreed-upon
period. Highway and port construction utilises the BOOT concept.

BLT (Build-Lease-Transfer):

The asset is leased to the public entity for a medium duration and is owned by the private company.In this
case, the public entity is in charge of financing the investment.

BOLT (Build–Own–Lease–Transfer):

In this strategy, the government grants a building concession to a private company (and possibly designs it as
well).The facility may be owned by a private business, which may then lease it to the public sector and transfer
ownership of the facility to the government after the lease term.

DBFO (Design–Build–Finance–Operate):

According to this approach, the private party is solely responsible for the project’s design, building, financing,
and operation throughout the concession period.

LDO (Lease–Develop–Operate):

In this kind of investment arrangement, the public sector organisation or the government keeps ownership of the
newly built infrastructure facility and receives payments under the conditions of a lease with the private promoter.
It is primarily used for developing airport facilities. A private partner is in charge of designing, constructing,
operating (during the agreed-upon period) and handing over the facility to the public sector. This is a typical
public-private partnership model.

DBOT is a variant of the build-operate-transfer (BOT) contract model where the contractor is responsible for both
the project’s design and construction. Because it identifies a single point of accountability for delivering the
project and seeing it through to operation, this approach may be appealing to some clients. The DBOT contract
is different from a design build finance and operations (DBFO) contract, in which the contractor also finances the
project and leases it to the client for a predetermined amount of time (perhaps 30 years), after which the
development reverts to the customer.

DCMF (Design–Construct–Manage–Finance):

In this case, the asset is constructed and run by the private sector for a predetermined time. This time frame can
range from 20 to 50 years. For renting out the asset at that time, the Government pays the contractor. By diverting
public spending from significant infrastructure development projects, this model may help establish funding
sources for other public initiatives. The following are some examples of DCMF PPP models: jails, courts, public
hospitals, etc.

OMT (Operate–Maintain–Transfer):

The OMT model is comparable to the BOT model, with the exception that, unlike the BOT model, OMT does not
call for the concessionaire for a project. For a predetermined amount of time, the concessionaire is responsible
for maintenance under the OMT model. Some other types of Public-private-partnership (PPP) Models Different
types of PPP include Concessions, Leases / Affermage, Full Divestiture, Contract Plans, and Performance
Contracts. Management Contract Model
In this model, a public facility or service is managed, either entirely or in part, by a private organisation. In this
approach, the public body (government) retains ownership of the asset or facility, but a private firm takes over
the day-to-day management of the facility. The private entity’s risk exposure is minimal because it is not obligated
to make any capital expenditures and is permitted to charge a set fee.

Lease Contract Model

According to this concept, the asset is leased, depending on the circumstance, to either a private organization
or a public entity. The private organization is permitted to generate income through operations.

BOT Annuity
This technique is used to construct roadways, mostly for NHAI projects where the possibility for revenue
generation is low. The asset must be designed, constructed, managed, and maintained by the private
business. The private entity’s risk is minimal, though, as it consistently receives a fixed amount as an annuity
from the public entity throughout the contract.

Engineering-Procurement-Construction(EPC) Model
In this model, the asset is designed, financed, and constructed by the private entity. The public agency that built
the asset eventually receives ownership of it. The public entity pays the private entity a lump amount in exchange
for playing the role; the private business is not responsible for operations and management. The NHAI is
constructing highways with the use of this model.

Hybrid Annuity Model (HAM)

In this arrangement, the private company is required to invest the remaining 40% of the project cost after paying
40% of it from the public entity. The public company continues to be in charge of ownership and operations; the
private business is simply required to contribute engineering knowledge. Project management systems come in
various types, each tailored to meet different needs and preferences. Here are some common types of project
management systems:

Traditional/Sequential Project Management Systems:

Waterfall: This approach follows a linear, step-by-step process, where each phase (such as initiation, planning,
execution, monitoring, and closure) is completed before moving on to the next. Tools like Microsoft Project or
Primavera P6 are commonly used for waterfall project management.

Agile Project Management Systems:

Scrum: Agile methodologies like Scrum emphasize iterative development, collaboration, and adaptability. Tools
like Jira, Trello, or Agilefant are often used for managing agile projects, allowing teams to plan, track progress,
and adapt to changing requirements.

Kanban: Kanban focuses on visualizing workflow and limiting work in progress. Tools like KanbanFlow, Trello,
or LeanKit support Kanban-style project management, enabling teams to visualize tasks, track progress, and
manage workloads.

Hybrid Project Management Systems:

Hybrid approaches combine elements of both traditional and agile methodologies to suit specific project
requirements. Tools like Microsoft Project, Smartsheet, or Asana offer features that support hybrid project
management, allowing teams to customize workflows, collaborate effectively, and manage projects with
flexibility.

Lean Project Management Systems:

Lean methodologies aim to maximize value and minimize waste by continuously improving processes.
Tools like LeanKit or Aha! support lean project management principles, enabling teams to streamline
workflows, identify bottlenecks, and optimize resource utilization.

Collaborative Project Management Systems:

These systems focus on fostering collaboration and communication among team members. Tools like
Basecamp, Slack, or Microsoft Teams offer features that facilitate real-time communication, file
sharing, and collaboration, helping teams work together more effectively regardless of their chosen
project management methodology.

Specialized Project Management Systems:

Certain industries or specific project types may require specialized project management tools tailored
to their unique needs. For example, construction projects might use tools like Procore or PlanGrid for
managing construction documentation and workflows, while software development projects might use
tools like GitHub or GitLab for version control and collaboration.

Integrated Project Management Systems:

Integrated project management systems combine various project management functionalities into a
single platform. Tools like Monday.com, Wrike, or ProjectManager.com offer comprehensive solutions
that include features such as task management, scheduling, resource allocation, budgeting, reporting,
and more, providing teams with a centralized platform for managing all aspects of their projects.

Ultimately, the choice of project management system depends on factors such as project
requirements, team size and structure, preferred methodologies, budget constraints, and
organizational preferences. It's essential to evaluate different options to find the best fit for your
specific project management needs.
Organization: Meaning and Types

Introduction
The organizational structure seeks to establish relations among all the persons working in the
organization. Under the organizational structure various posts are created to perform different
activities for the attainment of objectives of the enterprise. Relations among persons working on
different posts are determined. The purpose of defining the relation is to clarify as to who is superior
and who is subordinate. Therefore, it can be asserted that the establishment of relations among various
persons working in the enterprise is called organizational structure.
Organizational structure cannot be similar for all the organizations because the nature of work and its
size are different in respect of each enterprise. So, organizational structure is designed in accordance
with these characteristics of the enterprise. Thus, there can be many forms or designs of organizational
structure. Organizational structure once decided may also undergo changes as the situation changes.

Definitions of organizational structure: –

According to Hurley, “Organization structures are patterns of relationship among the various positions
in a firm and among the various people occupying the positions.”

According to William H. Newman, “Organization structure deals with the overall organizational
arrangement in an enterprise.”

Designs/Forms/Types of organizational structure:

There are different types of organizational structures. Different business enterprises have different
organizational structure depending upon their characteristics. However, whatever formal
organizational structure a firm chooses, there is a parallel structure that runs along with any formal
structure that is called as informal organisational structure. The formal organisation is usually
delineated by an organisational chart and job descriptions. The official reporting relationships are
clearly known to every employee. Along with the formal organisation, there exists a parallel structure
which evolves on its own out of the patterns of human interaction within an organisation that are not
officially prescribed. This is known as informal organisation , also known as grapewine. Formal
organisational structures are categorised as:

1. Line Organization
2. Line and Staff Organization
3. Functional Organization
4. Committee Organization
Line Organizational Structure:

Line organization is the simplest and the oldest form of organization. A line organization has only direct,
vertical relationships between different levels in the firm. In this type of organizational structure only
one type of authority exists. i.e. line authority. Here authority flows vertically from top to bottom. It is
also known as military organization

Features:
1. Simplest form of organizational structure.
2. Authority flows vertically in a straight line from top to bottom.
3. Only one type of authority exists i.e.line authority.
4. Specialized services do not exist in this organization.
5. Line officers have complete authority to do their respective functions. They can independently take
decisions in their areas.
6. Unity of command is observed in this organization structure.
7. Departmentalization may exist in this form of organization depending upon the organizational needs.

Advantages:

1. A line structure tends to simplify and clarify responsibility, authority and accountability
relationships. The levels of responsibility and authority are likely to be precise and understandable.
2. Promotes fast decision making.
3. Simple to understand.
4. Because line organizations are usually small, management and employees have greater closeness.

Disadvantages:

1. Neglects specialists in planning

2. Overload key persons.
3. Inadequate communication
4. Monopoly over decisions.
5. Not suitable for large sized concerns.
6. scope of favoritism since the departmental head is almost all in all the same for the activities of his
department.
A variant of simple line organization is Departmental Line Organisation. Departmentalization may exist
in this form of organization depending upon the organizational needs. In the departmental line
organization the General manager is at the top of the hierarchy and many departments are created
under him. For the establishment of the departments all the activities of the enterprise are divided
among different groups. For example, purchase of material and production will be under the
department of production, finance department will take care of accounts and finance; the job of sales
and advertisement will be handled by the marketing department and similarly the function of staffing
be performed by the personnel department. A head of every department is called departmental
manager who handles the work of every department . However, this organizational structure is suitable
for small sized firms only where the business produces only a single product.

(2) Line and staff organization:

Line and Staff organisation is in a way extension of line organisation. Under this organization structure,
two types of authorities exist together , line authority and staff authority. The function of line managers
is similar to their functioning under the line organization but some staff or experts are also appointed
as advisors to the line officers. The function of line officers is to take decisions, while the function of
the staff officers is to advice them. Staff officers are experts in their respective fields and offer useful
advice after analyzing the problems presented by the line officers. In this way the work of thinking and
execution is done by different persons and this removes the main flaw of the line organization. It can
be adopted in case of medium to large business enterprises.

Characteristics of Line and Staff Organization: –

(1) The work of ‘thinking’ and ‘execution’ is divided into two parts. The staff executives do the ‘thinking’
function while the line executives do the executive function.
(2) The line authority of the line manages is similar as in line organisation and the benefit of the advice
of the staff experts also become available.
(3) The subordinates of the line executives remain their subordinates alone and they cannot be treated
as the subordinates of the staff executives.
(4) The experts have only the right to tender advice, its rejection or acceptance depends on the line
executives.
(5) The principle of unity of command remains implemented because the orders are received only
through a single officer.
(6) The movement of authority is from top to bottom.

Figure 3: Line and Staff Organisation

Advantages of Line & Staff organisation are as follows:
1. Sound decision: Sound decision making is possible in this organisation structure as specialist advice
of staff managers is available to line executives for decision making.
2. Specialisation possible: The work of thinking and execution are divided and, therefore, the staff
executives and the line executives attain specialisation in their respective fields. It also increases
organisational efficiency.
3. Advantage of line organization: This organisation system is an improved version of the line
organization, therefore, it has all the advantages of line organisation.
4. Research facilities: The staff executives do not have to remain busy in daily routine and the line
executives ask for their suggestion only in special circumstances. Therefore, the staff executives have
enough time at their disposal for research work. During this time they discover new procedures which
benefit the enterprise.
5. More facility of expansion: Legal and other complexities are increasing in modern business. In these
circumstances the expansion of business becomes difficult. However, when an organisation has the
services of the experts available to it, expansion becomes easy.
6. Decrease in production costs: Experts find out new methods of production which make it easier to
produce of good quality products with minimum cost.
7. Discipline: In this organisation because of the unity of command there is no problem on account of
discipline.
Apart from advantages there are some disadvantages also which are:-
(i) Conflict between Line and Staff Authority: Even through a line and staff structure allows higher
flexibility and specialization it may create conflict between line and staff personnel.
(ii) Dependence on Experts: Line managers may not like staff personnel telling them what to do and
how to do it even though they recognize the specialists’ knowledge and expertise.
(iii) Some staff people have difficulty adjusting to the role, especially when line managers are reluctant
to accept advice.
(iv) Staff people donot have any authority in implementing their advice, this may discourage them and
may also lead to line and staff conflict.
(v) Costly : This organisational structure is costly to operate as staff experts are specialists and hence,
high remuneration need to be paid to them. Also, their services may not benefit the organisation since
implementation of their advice is solely in the hands of line managers.
The line and staff organisation is suitable for medium to large sized business. Since the legal and other
complexities have increased, it has become almost a dream to achieve success in business in the
absence of experts. The chief drawback of this kind of organisation is the conflict between two types
of authorities. Their conflict can be ended by clearly defining their relations.
(3) Functional organization: – The father of Functional organization is Fredric W. Taylor who is better
known as the father of Scientific Management. Functional organization is completely based on the
principle of specialization and under it the ability of the experts is fully utilized. In Functional
organization, specialists are put on the top positions throughout the enterprise who have the authority
to give advice and also get it implemented. Their authority is known as functional authority.

Taylor recommended that there should be functionalization not only at the top level but also at the shop
level where workers have to produce goods.

The whole work in the organization is divided in various departments. Similar type of work and
transactions are put in one department under the control of a departmental manager who is
responsible for carrying out various activities of their departments in the organization. Various
departments are known as functional areas of management viz., Purchases, Sales, Finance,
Production, and Personnel etc. In functional organization, at the top level of management, a
 subordinate anywhere in the organization will be controlled and commanded directly by number of
managers operating in different departments.

For example, any functional heads and Marketing Director can direct the subordinates throughout the
organization. This means that subordinates receives orders from several specialists, managers
working above them.

The following diagram shows the functional organisation at the top level:

Not only at the top level, Taylor recommended functionalization at the foreman level also.
Functionalization at the foreman level has been called as Functional Foremanship by Taylor. Rather
than a single foreman supervising many workers (usually 40-50), he advocated appointment of eight
different specialist foremen discharging different functions. Every worker in the organization is directly
connected with these foremen.

The eight specialist foremen are:

(a) Route Clerk, (b) Instructions Card Clerk, (c) Time and Cost Clerk, (d) Shop Disciplinarian, (e) Gang
Boss, (f) Speed Boss, (g) Repair Boss, and (h) Inspector. The first four bosses operate from Planning
Department, whereas the other four function in the production department and are known as Executive
Functional Bosses.

Suitability: – This system is useful for big business enterprise having a large scale production and
where experts’ knowledge is necessary.

Advantages of Functional Organization: –

● Full use of Experts’ Knowledge because he knows that his decision will be implemented.
● Efficiency is increased by separating mental function from manual function since workers are
advised by experts.
● Mass Production possible because of the availability of the benefit of specialization.
● Functional structure permits flexibility and organizational structure can easily be adjusted as per
expansion or contraction needs of the business.
 Some of the disadvantages are: –

● Violation of Principle of Unity of Command which is an important principle of management. It leads to

complexity and confusion ,reducing work efficiency.
● Co-ordination in functional structure becomes difficult in view of the help sought from functional
experts.
● Difficult to Fix Responsibility since principle of unity of command which is the most important principle
of management is disobeyed.
● Functional organisation is characterised by conflict among experts due to disagreement on certain
issues.
● Maintenance of specialist’s staff of the highest order is expensive for a concern.

(4) Committee Organization: –

Committee Organization is not a form of business organization which can be implemented

independently. In other words, it cannot be implemented as a regular and independent organization. It
is used with purpose of helping the other regular forms of organization.

According to Newman, “ A committee consists of a group of people specially designed to perform

some administrative acts”.

Types of Committees: – In business organization generally four types of committees are established:-

(1) Advisory Committee: – When a committee possesses the authority of staff executives or the
experts, it is called advisory committee. Experts in different fields are appointed as members of the
committee who take decision only after mutual deliberations. They however do not have the authority
to get these decisions implemented.

(2) Executive Committee: – A committee which has the authority to take decisions and also get them
implemented is called executive committee. Board of Directors in the company organization is an
example of executive committee. Whatever decisions are taken by the Board of Directors they are
implemented through the medium of the General Manager.
(3) Joint Consultative Committee: –In this committee the representatives of the workers and managers
deliberate upon the common interests and make mutual relations sweet.

(4) Special Purpose Committees: – Committees which are appointed with special aims are called
special purpose committees like budget committee, pay committee, financial consultation committee,
etc. Features of Committee Organisational Structure:

(a) Formed for managing certain problems or situations

(b) committee decisions are temporary in nat.ure

Advantages:
1. Committee decisions are better than individual decisions.
2. Better interaction between committee members leads to better co-ordination of activities
3. Participative decision making which also promotes and leads to creative thinking.
5. Basics for reducing conflicts
6. Better commitment for implementation
7. Better solution for complicated problems
Disadvantages:
1. Committees may delay decisions, consume more time and hence more expensive.
2. Group action may lead to compromise and indecision.
3. More chances of conflict
4. Very high probability of ‘Buck passing’
5. Lack of secrecy
6. Probability of diversion from main issue.
The Informal Organisation

An informal organisation is a set of relationships and patterns of human interaction within an

organisation which are not officially prescribed. Alongside the formal organisation, an informal
organisation structure exists which consists of informal relationships created not by officially
designated managers but by organisational members at every level. Since these informal relationships
cannot be avoided , they can be used for the benefit of the organisation if handled judiciously. The
informal organisation has the following characteristics
(i) Its members are joined together to satisfy their personal needs (needs for affiliation, friendship etc.)
(ii) It is continuously changing
(iii) The informal organisation is dynamic.
(iv) It involves members from various organisational levels.
(v) It is affected by relationship outside the firm.
(vi) Certain people are assigned greater importance than others by the informal group.
vii. Even though an informal organisational structure does not have its own formal organisational chart,
it has its own chain of command:
Benefits of Informal Organisation:
(i) Assists in accomplishing the work faster.
(ii) Helps to remove weakness in the formal structure.
(iii) Lengthens the effective span of control.

(iv) Compensates for violations of formal organisational principles.

(v) Provides an additional channel of communication. (vi) Provides emotional support for employees.
 (vii) Encourages better management.

Disadvantages of informal organisation:

(i) May work against the purpose of formal organisation.
(ii) Reduces the degree of predictability and control.
(iii) Reduces the number of practical alternatives.
(iv) Increases the time required to complete activities. v) spreads rumours
Summary:

In this chapter we have studied different types of organizational structures. There are mainly two types
of organizational structures: Formal and Informal Organization structures. Formal organization means
an organization in which the responsibilities, authority and mutual relationships among all the
employees working in an enterprise are clearly defined. Formal organization can be categorised in to
four parts which are (1) line organization (2) line and staff organization (3) functional organization and
(4) Committee organization. Each type of organization has their advantages and disadvantages. Each
type of organization is suitable for different type of business depending on many factors like nature of
business, its size, technology used, long term goals and the environment etc. And the second type is
informal organization, which is not established deliberately but comes into existence because of
common interests, tastes, religious and communal relations. Both formal and informal organisational
structures exist simultaneously in an organisation.
Existing construction practices can vary significantly depending on factors such as location, available
resources, technology, regulations, and cultural preferences. However, some common construction
practices exist across many regions:

Traditional Construction Methods:

● Traditional construction methods have been used for centuries and often rely on locally available
materials and craftsmanship. These methods can include techniques such as adobe construction,
timber framing, stone masonry, or bamboo construction, depending on the region's resources and
climate.
Modern Construction Techniques:
● Modern construction practices involve the use of advanced materials, equipment, and technologies to
improve efficiency, durability, and safety. This can include techniques such as reinforced concrete
construction, steel framing, prefabrication, modular construction, and 3D printing.
Green Building Practices:
● With increasing awareness of environmental sustainability, green building practices aim to minimize
the environmental impact of construction projects. This can involve using eco-friendly materials,
implementing energy-efficient designs, optimizing waste management, incorporating renewable
energy sources, and obtaining green building certifications such as LEED (Leadership in Energy and
Environmental Design) or BREEAM (Building Research Establishment Environmental Assessment
Method).
Building Information Modeling (BIM):
● BIM is a digital representation of a building's physical and functional characteristics. It allows
architects, engineers, and contractors to collaborate more effectively throughout the project lifecycle,
from design and construction to operation and maintenance. BIM helps improve coordination, reduce
errors, optimize construction sequencing, and enhance decision-making.
Lean Construction Principles:
● Lean construction principles focus on maximizing value and minimizing waste throughout the
construction process. This involves practices such as just-in-time delivery, continuous improvement,
collaborative planning, and reducing variability to improve efficiency and productivity.
Safety Protocols and Regulations:
● Safety is a top priority in construction, and adherence to safety protocols and regulations is essential
to protect workers and minimize accidents. This includes implementing safety training programs,
providing personal protective equipment (PPE), conducting regular inspections, and complying with
local building codes and occupational health standards.
Project Management and Collaboration Tools:
● Construction projects often involve complex coordination among multiple stakeholders, including
architects, engineers, contractors, subcontractors, suppliers, and clients. Project management and
collaboration tools such as construction management software, cloud-based platforms, and mobile
apps help streamline communication, document management, scheduling, budgeting, and reporting.
Off-site Construction and Prefabrication:
● Off-site construction involves assembling building components or entire modules in a controlled
factory environment before transporting them to the construction site for installation. Prefabrication
techniques help improve construction speed, quality control, and cost efficiency by reducing on-site
labor and material waste.

These are just a few examples of existing construction practices, and the industry continues to evolve
with advancements in technology, materials, and sustainability practices. Collaboration, innovation,
and a focus on efficiency and safety are key drivers shaping the future of construction practices.
A project team is a group of individuals assembled to work together temporarily to achieve a specific
goal or complete a project. Project teams typically consist of members with diverse skills, expertise,
and roles, each contributing to different aspects of the project. Here are some key roles commonly
found in a project team:

Project Manager: The project manager is responsible for overall project planning, execution,
monitoring, and control. They coordinate the efforts of team members, set objectives, allocate
resources, manage timelines and budgets, and communicate with stakeholders.
Team Members: Team members are individuals who contribute their skills and expertise to accomplish
specific tasks or deliverables within the project. They may include subject matter experts, technicians,
engineers, designers, developers, analysts, or other specialists depending on the project's
requirements.
Stakeholders: Stakeholders are individuals or groups who have an interest or influence in the project's
outcome. They may include clients, sponsors, investors, end-users, regulatory bodies, community
members, or other relevant parties. Stakeholders provide input, feedback, and support throughout the
project lifecycle.
Functional Managers: Functional managers oversee specific departments or areas within the
organization and may provide resources, guidance, or support to project team members. They ensure
that team members have the necessary tools, training, and resources to fulfill their roles effectively.
Project Sponsor: The project sponsor is typically a senior executive or leader who provides direction,
resources, and support for the project. They champion the project within the organization, secure
funding, align project objectives with business goals, and help resolve conflicts or issues that may
arise.
Advisors/Consultants: In some cases, project teams may include external advisors, consultants, or
subject matter experts who provide specialized knowledge, guidance, or support on specific aspects
of the project. These individuals offer insights, best practices, or recommendations to enhance project
success.
Support Staff: Support staff may include administrative assistants, clerical personnel, or other support
roles that assist with project coordination, documentation, scheduling, or other administrative tasks to
facilitate the smooth operation of the project.

Effective project teams rely on collaboration, communication, accountability, and shared goals to
achieve success. Each member plays a crucial role in contributing to the project's objectives, managing
risks, resolving conflicts, and delivering value to stakeholders. Clear roles, responsibilities, and
expectations help ensure that the project team functions cohesively and efficiently throughout the
project lifecycle.