MANAGEMENT STUDIES

IN
CONSTRUCTION BUSINESS

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus - Colombo
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business

Programme PDQS Unit 05 JACS Code N200

Management Studies in Construction

Module Number QS 404 Module Title
Business

Credit Value 15 Module Level H1 Module Value 1.0

Assessment Analytical Portfolio Assessment Weighting 30%

Analyze the requirement of effective “Management Thinking” for the long term
Assignment Title
success in the construction business and engineering service sector.

Lecturer Eng.Mr.C.N.Peirispulle

Student Name B.P.D. Tharindu Student Number CL/PRDQTS/16/11

Handed Over on 22/02/2020 Due Date 22/02/2020

Date Submitted Pass/ Re-Submission

Eng.Mr.C..N..Peirispulle Date
Assessor
Assessed

Date
Internal
Mrs. Harshi Madubhashini Internal 2/28/19
verifier
Verified

Learner
Date
signature

Task Marks Assessment comments

01

Total

General comments

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business
Task 01
AURA CONSULTANCIES

Introduction
Aura Consultancies is a well-established “Quantity Surveying Consultancy Firm” and newly
initiate the Construction consultancy through Project Management consultancy, Investment
management advising for real estate property developers and prospective clients and Bid
Management.

1.0 STRATEGIC PLANNING

Importance of Strategic planning

Strategic planning is a key function of an organization’s management that helps to set

priorities, allocate resources, and ensure that everyone is working towards common goals and
objectives.

However, for strategic planning to be effective, there are two important tools that are needed
a vision and mission statements. These serve as a guide for creating objectives and goals in
the organization, thus providing a road-map that is to be followed by everyone.

Organizational Structure

There are a number of factors that differentiate small-business operations from large business
operations, one of which is the implementation of a formal organizational structure.
Organizational structure is important for any growing company to provide guidance and
clarity on specific human resource issues, such as managerial authority. Small-business
owners should begin thinking about a formal structure early in the growth stage of their
business.

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business
2.0 SUITABLE MANAGEMENT THEORIES

Managers play significant role to success of an organization. The competence of managers

play considerable role in every section of an organization and determine its competitive
advantage. In a typical modern organization, sales managers oversee sales, personnel
managers ensure a productive workforce, while operations managers ensure that all
operations work.

In fact, most of development in the society can be associated with solid supply of managers.
The main objective of managers is to lead an organization to achieve its objectives. All
organizations have goals and purposes for which they are created and managers take the
responsibility of bringing together and using all available resources to realize the goals
(Griffin 2007). Successful managers are therefore those that help an organization to achieve
its goals more effectively and efficiently.

There are many management theories that try to explain the best way those managers can
accomplish their roles. Sadly, however, there is perception that management theories and
practice are irreconcilable. Some managers find various management theories as not
applicable and choose to carry out their managerial roles in their own way.

In Aura Consultancies Should have followed basic management theories as followings

2.1 Financial Management

It is an applied branch of general management. It looks after the finance function of the
business. In itself it constitutes a sub-system of the business enterprises, interrelated very
closely with production, marketing and personnel functions or sub-systems.

Financial management is called upon to take three major decisions:

1. Investment decision
Capital budgeting or financial plan.
2. Financing decision or formulation of the best financing mix or capital structure of the
enterprise
B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business
3. Dividend decision or dividend policy.

Financial management involves the implementation of these three major decisions. The
decisions are interrelated and should be implemented jointly. Together, these vital decisions
determine the value of the enterprise to its shareholders and investors.
Financial management makes use of analytical tools in the analysis, planning and control of
the enterprise involving funds.

2.2 Human Recourse Management

An organization cannot build a good team of working professionals without good Human
Resources.
The key functions of the Human Resources Management (HRM) team include recruiting
people, training them, performance appraisals, motivating employees as well as workplace
communication, workplace safety, and much more.

 Recruitment and Training

This is one of the major responsibilities of the human resource team. The HR managers come
up with plans and strategies for hiring the right kind of people. They design the criteria which
is best suited for a specific job description. Their other tasks related to recruitment include
formulating the obligations of an employee and the scope of tasks assigned to him or her.
Based on these two factors, the contract of an employee with the company is prepared. When
needed, they also provide training to the employees according to the requirements of the
organization. Thus, the staff members get the opportunity to sharpen their existing skills or
develop specialized skills which in turn, will help them to take up some new roles.

 Performance Appraisals
HRM encourages the people working in an organization, to work according to their potential
and gives them suggestions that can help them to bring about improvement in it. The team
communicates with the staff individually from time to time and provides all the necessary
information regarding their performances and also defines their respective roles. This is
beneficial as it enables them to form an outline of their anticipated goals in much clearer
terms and thereby, helps them execute the goals with best possible efforts. Performance
appraisals, when taken on a regular basis, motivate the employees.
B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business

 Maintaining Work Atmosphere

This is a vital aspect of HRM because the performance of an individual in an organization is
largely driven by the work atmosphere or work culture that prevails at the workplace. A good
working condition is one of the benefits that the employees can expect from an efficient
human resource team. A safe, clean and healthy environment can bring out the best in an
employee. A friendly atmosphere gives the staff member’s job satisfaction as well.

 Managing Disputes
In an organization, there are several issues on which disputes may arise between the
employees and the employers. You can say conflicts are almost inevitable. In such a scenario,
it is the human resource department which acts as a consultant and mediator to sort out those
issues in an effective manner. They first hear the grievances of the employees. Then they
come up with suitable solutions to sort them out. In other words, they take timely action and
prevent things from going out of hands.

 Developing Public Relations

The responsibility of establishing good public relations lies with the HRM to a great extent.
They organize business meetings, seminars and various official gatherings on behalf of the
company in order to build up relationships with other business sectors. Sometimes, the HR
department plays an active role in preparing the business and marketing plans for the
organization too.
Any organization, without a proper setup for HRM is bound to suffer from serious problems
while managing its regular activities. For this reason, today, companies must put a lot of
effort and energy into setting up a strong and effective HRM.

2.3 Engineering Management

Companies and organizations are invested in hiring engineers who can integrate technical
expertise, savvy business acumen, and effective interpersonal communication skills. Those
who can do this are prime candidates for positions in management. Successful engineering
B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business
managers understand that they must take an integrated view of management in order to
streamline operational activities, meet deliverables on time, and achieve organization goals.
The first step in understanding management is to be aware of the five basic functions of
management which are planning, organizing, staffing, leading, and controlling:
 Planning
In order to reach a goal, a plan must be put into place. Deciding which steps is a part of the
plan is the manager’s duty. Conceiving a plan and communicating it clearly is essential.
 Organizing
Having materials, resources, and finances available and well-organized is essential.
Organization leads to efficiency which saves time, money, and energy.
 Staffing
Recruiting, selecting, and positioning employees is the first part of staffing. Making sure the
right person is assigned to the right job is integral to completing a goal. Managers must
remember that they have a responsibility to lead, as well. Communication and motivation are
necessary for building highly functioning teams.
 Leading
It is common knowledge that not all managers are leaders and all leaders are not managers. It
is incumbent upon managers to learn and practice solid effective leadership skills. Being
authentic and connecting with people on an individual basis are first steps in being an
effective leader.
 Controlling
Effective engineering managers look for constant improvement. Controlling costs, schedules,
and production plans are all essential to managing a project well and finishing within or
under budget. Controlling that which can be controlled, and responding quickly and
efficiently, to those things that do not go according to plan, are all within the purview of an
engineering manager.

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business

Controlling Planning

Directing/
Organising
Delegating

Staffing

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business

Proposed Company Structure

Managing
Director

Director Engineering Director Marketing

and Finance

Chief
Manager
Quantity Chief Civil Chief MEP Manager Manager
HR
Surveyor Engineer Engineer Marketing Finance

Quantity
Project
Surveyor
management Finance
Division Real estate HR Division
Division Division
property

Investment
Managemen
t

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business

3.0 VISION AND MISSION OF THE COMPANY

The mission and vision statements of a company help direct the organizational strategy. Both
provide purpose and goals, which are necessary elements of a strategy. They outline the
audience for the business, and what that audience finds important. By identifying these
elements, the business executives can develop a more step-by-step strategy that helps the
company achieve its mission in the short term, and its vision in the long term.

Mission and vision statements help businesses to outline performance standards and metrics
based on the goals they want to achieve. They also provide employees with a specific goal to
attain, promoting efficiency and productivity.

Mission and vision statements aren’t only necessary for employees and business owners
when it comes to the organizational strategy. They also apply to external stakeholders like
customers, partners and suppliers. The mission and vision statements can be used as public-
relations tools to attract media attention, engage specific audience segments and develop
business partnerships with like-minded companies.

3.1 Mission
The mission statement of the organization outlines the company’s business, its goals and its
strategy for reaching those goals. It focuses more on where the company is at the present time
and the tactical steps it wants to use to achieve its objectives. The mission statement of a
company can be used to shape the culture of the organization.

When establishing a mission statement for your company, outline what it is your business
does, who you serve and how you serve them. Those are the three most critical elements of a
business’ mission statement.

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business
While the mission statement focuses on more tactical aspects of the business, the vision
statement looks to the future of the company. The vision statement provides the direction in
which the company wants to go. Together with the mission statement, it helps to create the
organizational strategy for the business.

3.2 Vision

When drafting a vision statement for your business, answer questions about what your hopes
and dreams are. What kind of future do you want to see, and how does the company play a
part in making that happen? Are you aspiring to make some kind of change, and how will you
make it?
Amazon’s vision statement is
“To be Earth’s most customer-centric company, where customers can find and discover
anything they might want to buy online.”
It provides a clear direction for employees.

For the small business that makes handcrafted baby clothes, a vision statement might be

“To be the first choice for new parents looking to outfit their babies in artisanal handmade
clothing that is designed and crafted with the utmost attention to detail.”

It shows exactly where the company wants to go in the future and how it intends to attain that
status. It also contains their key selling point.

Proposed Vision and Mission to our Company

Vision

“Be a first choice of Construction consultancy”

Mission

“To create value for our shareholders, meeting needs with services that are reliable, quality
and economic, provide opportunities to grow professionally for the employee”

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business

4.0 QUALITY POLICY

Top Management is responsible for establishing, reviewing and maintaining the quality
policy and quality objectives. The quality policy should build on corporate objectives and
values and be appropriate to the purpose and context of the organization. The policy should
demonstrate a commitment to continual improvement. The quality policy must be
communicated, understood and applied throughout the organization.

A quality statement lays out our firm's working practices and commitment to providing a
good service.

QUALITY POLICY – AURA CONSULTANCIES

 CUSTOMER FORCUSED
Adhering to product specifications and requirements to meeting customers’ expectations and
satisfaction. This management revolution diverts from a service centered approach to a
customer centric style. In the end, the quality of a service is all about whether or not it meets
customer requirements.

 INTEGRITY
We are sincere, kind, air and just in all our dealings with everyone

 TEAMWORK
We achieve mutual growth by respecting one another’s individuality and opinions and by
sharing knowledge and ideas.

 INNOVATION
We listen to our stakeholders and continuously seek ways to improve our work and business.

 PROFESSIONALISM

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business
We make sustained efforts to improve our skills and proficiency so that we can provide high
quality service.

5.0 ORGANIZATIONAL BEHAVIOR AND CULTURE

One of the superiority features of an organization over other organizations is having loyal and
committed human forces. Commitment causes increased profitability and reduced service
abandonment and leads to increased efficiency and improvement and increased service
quality by influencing personnel performance.

 Team Work
Team is in fact a working group which has all conditions for a real team and its members are
totally committed to each other's promotion and success. This commitment often leads to
team development. A team with high executive power specifically performs all actions better
than other teams and meets all logical expectations of the members. Teamwork is a mental
and emotional preoccupation in individuals in group situations.

 Motivation
Motivate them to help each other for achieving group goals and to participate in the work
responsibility. Teamwork is a tool for increasing working creativity, which implicitly leads to
consolidation of job satisfaction. Focus and attention to effectiveness and efficiency of
working teams requires teamwork spirit. so that members or elements of working teams are
able to do team work and team activity. The way of interaction and activity of members is
important and crucial in success or failure of the teams, thus teamwork culture should be
institutionalized in the organization prior to formation and establishment of working teams.

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business
6.0 STRATEGIC MANAGEMENT PROCESS

Strategic management is the process of managing, planning, and analyzing in order to reach
all organizational goals. Strategic management helps an organization see where it currently
stands, where it will be in the future staying on the current course, and where it would like to
be in the future. Strategic management takes advantage of organizational resources to create a
strategy that helps get closer to or reach their goals.

We can conclude that organizations’ workforces are not aware of their organization’s overall
strategy, if the strategies being utilized are unsuccessful, and if strategies are not being
budgeted for. As an organization, planning and strategizing for the future is one of the most
beneficial initiatives we can take.
The process of strategic management includes goal setting, analysis, strategy formation,
strategy implementation, and strategy monitoring.

Let’s take a look at how each of these steps ties into the overall strategic management
process.

 Goal Setting

The first part of strategic management is to plan and set your goals. Set the short and long
term goals of the organization and make sure that these are shared with all members of the
organization. Explain and share how each member of the team will have an impact on the
organization reaching this goal. This will help give each member of the team a sense of
purpose and will give their job meaning.

 Analysis

During this stage of the process, it is important to gather as much information and data as
possible. This information will be integral to creating our strategy to reach our goals. This
step of strategic management entails becoming aware of any issues within the organization
and understands all of the needs of the organization.

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business
 Strategy Formation

In this strategic management step, we will use all the intelligence and data you have gathered
to formulate the strategy that we will use to reach whatever goal you set. Identify useful
resources we have, and also seek out other resources we will need to set up our strategy.

 Strategy Structure

This is arguably the most important part of the entire strategic management process. At this
point, each member of the team should have a clear understanding of the plan and should
know how they play a part within it. This is the stage where our strategy is put into action.

 Strategy Feed back

During this stage, our strategy will already be in play. At this point, we should be managing,
evaluating, and monitoring each part of our strategy, and ensuring that it aligns with the end
goal. If it does not, this is the time where you would make tweaks and adjustments to
strengthen the overall plan. This is the stage where we will track progress and have the
opportunity to deal with any unexpected shifts in the strategy.

7.0 THE IMPORTANCE OF FORECASTING FOR PROPER BENCHMARKING

PROCESS

The construction industry in Sri Lanka, which is one of the largest industries in the present.
So competitive of market is higher than past also in future. Aura Consultancies is going to be
a spared our services through the Project Management consultancy, Investment management
advising for real estate property developers and prospective clients and Bid Management.

So we have to think about our future development and our competitors. Hence we should
forecast for proper Benchmarking process for better future.

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business
Benchmarking analysis is an invaluable tool for today’s management consultants.
Benchmarking involves comparing a current data set to historical data sets or data from
industry peers. It can help consultants determine where clients are ahead of competition,
identify areas for client improvement, boost the quality of the firm, and increase the firm’s
competitive value.
But benchmarking can be a complex process. In order to dive deep and understand the why
behind the data, benchmarking requires more than simply comparing two sets of numbers.
Worthwhile benchmarking can thus require a number of different tools and methodologies,
depending on the project’s analytical focus. As with any analysis that involves a lot of data,
the process can be costly and time consuming.
Consultants must collect data, often from multiple sources, clean and reformat it, and load it
into whatever tool they use. The complexity of benchmark analysis, in fact, is perhaps why
few firms are making use it today. Complex, manual processes can be dangerous to
consultants as they are time consuming and error prone, making them susceptible to faulty
conclusions.

The answer for today’s consultants is to automate the benchmarking process and map the data
to specific models. By automating, consultants can reach conclusions faster and ensure that
no errors occur. By using data models, consultants can ensure that data will be collected
consistently over time. This consistency will allow them to draw more accurate conclusions.
The benefits of automating benchmark analysis are numerous.

Here are just a few that we’ve identified.

 Select a product, service or process to benchmark

 Identify the key performance metrics
 Choose companies or internal areas to benchmark
 Collect data on performance and practices
 Analyze the data and identify opportunities for improvement
 Adapt and implement the best practices, setting reasonable goals and ensuring
companywide acceptance

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus
 Professional Diploma in Quantity Surveying
Management Studies in Construction Business
In addition to helping companies become more efficient and profitable, benchmarking has
other benefits, too, such as:
 Improving employee understanding of cost structures and internal processes
 Encouraging team-building and cooperation in the interests of becoming more
competitive
 Enhancing familiarity with key performance metrics and opportunities for
improvement company-wide
In essence, benchmarking helps employees understand how one small piece of a company’s
processes or products can be the key to major success, just as one employee’s contributions
can lead to a big win.

Reference
https://en.wikipedia.or
https://www.usnews.com/best-colleges#
https://www.iso-9001
https://link.springer.com/

B.P.D.Tharindu
CL/PRDQTS/16/11
ICBT Campus