CE 413 – CONSTRUCTION METHOD AND  The structure defines the relationships among

PROJECT MANAGEMENT members of the project management and the

relationships with the external environment.
Lecture 2. Organization and Management
THE STRUCTURAL ELEMENTS OF AN
INTRODUCTION: ORGANIZATION
The driving force behind every organization is its 1.Men. These men are different members of the
management team. Different teams operate in different organization starting from the very top of the last
ways. There is no universal accurate management to workman in the enterprise.
define the one that is best. 2.Materials. Represents the materials necessary in the
distribution of functions or in the attainment of its
What is Organization Management?
objectives.
 Organization management refers to the art of 3.Machine. The tools necessary in producing
getting people together on a common platform to its desired output.
make them work towards a common predefined 4.Methods. The procedures and ways used in
goal. the course of its actions.
 Organization management enables the optimum use 5.Money. The financial resources of the
Organization
of resources through meticulous planning and
SIX ELEMENTS OF STRUCTURAL
control at the workplace.
ORGANIZATION
Organizational Structure of a small Enterprise:

The Owner is usually the Manager

 Daily contact with all the people in his organization

 One who establishes the policies
 Assign the job to be done
 Follow up on the job for the purpose of direction
and coordination

WHAT IS ORGANIZATION?

 group of individuals who are cooperating willingly

and effectively for a common goal.
 Seeks to know who is to do and what is to be done.
THE MAJOR ELEMENTS OF
 Structured to promote better management ORGANIZATIONAL STRUCTURE
(A good executive maybe able to secure good 1. Distribution of functions.
results with a poor organization, and a good The functions to performed
organization may produce results from a poor The groupings of functions
executive.) The vertical and horizontal task relationship among
functions
“Who is to do and What to do” 2. Vertical and Horizontal Authority
 Relationship ( who are the authority to do
“ It is the performance of the people who fill the position what.)
that determines the success of the enterprise and not the 3. Communication and Decision Process.
organizational design itself”  The manner which formal decisions are
made and by whom.
A management structure is only a vehicle used to attain 4. Policies.
the objectives and goals of an institution, and therefore,  The decision, rules or guidelines established.
must be realistic and responsive to the call for a change
of those needs. “Traditional structures are no longer adequate for
today’s complex organizations”.
THE STRUCTURAL ORGANIZATION
 A management structure is a means of attaining the
Structural organization is the formal arrangements that objectives and goals of an institution. Thus, should
are established to coordinate all activities in order responsive to respect needs and changes on those needs.
implement a given strategy. Peter Drucker

A project organization is a structure that facilitates the PRINCIPLES OF GOOD ORGANIZATION

coordination and implementation of project activities. 1.Principle of objective
 A clear and complete definition of the objective must produce goods or services, which can be sold to others
be known. more than their cost.
The objective serves as the guide to future planning
and action. It may be Considered;
It integrates policies, projects and programs The system through which economic activity was
It enables everybody to act consistently according to a organized by those who seek to make profit.
common goal. Experienced prove that higher accomplishment is
dependent upon the interest and willing cooperation of
2. Analysis. both the project supervisor and the workers.
 A sound business judgement attempts to build an
organization through full knowledge of the requirements What is Management?
of the business. Management is a process.
There should be a study as to whether the project could A process of direct and facilitating the work of people
be finished at the right time and the right price the client who are organized for a common purpose.
will be able to pay. It is the process of combining the efforts and resources
of individuals with a common interest to achieve a
3. Simplicity. desired objective.
The simplest organization that will serve to attain the Management is a function.
desired objective considered the best. Function of getting things done through the efforts of
All activities which are not absolutely necessary, others.
should be eliminated, and those retained should be It is the application of authority and the assumption of
handled in the simplest practical way. responsibility.
Creation of position should be based on paramount An art of handling people..
necessary and all activities which do not pay in terms of
pesos and centavos, should be eliminated.

4. Functionalism.
The organization should be built around the main Management Concept
functions of the business and not around the individuals. Management to be effective must be systematic.
If an organization of any concern is built around the  Management to be successful must be scientific
functions, proper distributions of work could easily be  Management must be Humanistic
done, thus, eliminating any one man to become so
powerful and so dependable upon to be indispensable. (Assignment: Defined/Discuss each of the Management
Concept, present your assignment orally.)

5. Departmentalization. The Management Structures.

 To achieve a smoother flow of operations. The primary objective of management structure is to
 Can be through: facilitate the coordination and control over the activities
 functions, of the company.
products No two companies are identical.
 location Each company should be studied in terms of its
or by projects of the organization purpose, size and the nature of its business.

6. Centralization of Authority and Responsibility. In any sizeable organization, there should be delegation
 Necessary in order to have authority and of responsibility because:
responsibility definitely fixed. It is physically impossible for one person to control
 When there is unity of command, every person effectively all the works of a large organization through
knows: personal contact with it.
What he can perform within his scope of authority No person possesses the skills necessary to guide
Knows the things for which he is responsible of, personally the highly specialized activities in a modern
Whom to report and to consult in case of problems or construction business.
doubts.
The line of responsibility works in two ways:
7. Limited Span of Control. 1.From the executive to the supervisor down to the
The number of subordinates an executive can manage workers under his jurisdiction and conversely.
effectively. 2.From the workers to those who are in authority over
him.
Organization and Business
Business had been defined as an organization of people MANAGEMENT CONTROL
with varied skills, which uses capital and talents to
 Group 3 = Humanistic Management
Directing People on the Job

Group 4 = How to give Effective Orders

The Knowledge Workers

Control is a function of management which helps to

check errors in order to take corrective actions. This is
done to minimize deviation from standards and ensure
that the stated goals of the organization are achieved in a
desired manner.
To check or regulate
To keep within limits

Effective Communication System

To the manager, information has four purposes to serve.
1.It must answer the questions what are we going to do?
2.How well we are doing?
3.How can we do better?
4.Does it serve as an aid to coordination?

The Manager
A manager is a person who is responsible for a part of
a company, i.e., they „manage„ the company. Managers
may be in charge of a department and the people who
work in it. In some cases, the manager is in charge of the
whole business.
A manager is a person who exercises managerial
functions primarily. They should have the power to hire,
fire, discipline, do performance appraisals, and monitor
attendance. They should also have the power to approve
overtime, and authorize vacations. He or she is the boss.

Quality of an Effective Manager

1.Analyzes and dissects his job.
2.Knows how to delegate the administrative details of his
job.
3.Willing to delegate to and share with his subordinates
the credit of a job well done.
4.Trains and develops his men to prepare them to assume
delegate work.
5.Knows how to control and plan his time.
6.Institutes controls for effective performance.

Group Reports:

Group 1= Executive Functions

Executive Leadership
Delegation of Authority

Group 2 = Responsibility and Authority Defined

Personnel Coordination
Scientific Management
CE 413 – CONSTRUCTION METHOD AND 5.Return of investments
PROJECT MANAGEMENT 6.Increase in cost
7.Risks
Lecture 3: Decision Making
Introduction: Reasons why Manager insist on Disagreement before
Decision making is the fundamental process of Decision Making.
management. Most of the efforts of Managers are related 1.It is only the safeguard against the decision maker’s
to this process. Unfortunately, decisions do not always becoming the hostage of the organization.
turn out as planned. 2.Disagreement alone can provide alternatives to a
Who makes decision? decision.
 only executive make decisions. 3.Disagreement is needed to stimulate the imagination
 only the manager’s task
(to make decision is a specific task) Reasons for Poor Decisions
1.Errors made in the decision process
Effective Decisions 2.Bounded rationality
What is Decision? 3.Sub-optimism
Is a judgement
A choice between alternatives Elements of decision Process
Rarely a choice between right or wrong 1.See if the problem was generic and could only be
Based on the highest level of conceptual solved through a decision established by a rule, or
understanding. principle.
2.Define the specifications which answer to the problem
Managers who make effective decisions know that one had to satisfy, that is, of the boundary conditions.
does not start with facts, one starts with opinions. 3. The thinking through what is right, that is, the solution
 The main task of a manager is not administration. It which will satisfy the specifications before attention is
is the making of policy, the making of the right given to the compromises, adaptations, and concessions
decision. needed to make decision acceptable.
 The first rule in decision making is that, one does 4. The building into the decision of the action to carry it
not make a decision unless there is disagreement. out.
Right decision demands adequate disagreement 5. The feedback, which test the validity and effectiveness
first. of the decision against the actual course of events.

The Effective Managers Second Element in the Decision Process

Expected to make effective decisions 1.What the decision has to accomplish?
Does not make a great many decisions. 2.What are the objectives, the decision has to reach?
Know that the decision must be based on principle and 3.What are the minimum goals it has to attain?
should be made on the merits of the case. 4.What are the conditions it has to satisfy?
Insist on alternatives, so that he can make the most In Science this is known as the “Boundary Conditions.”
appropriate one.
The Major Element in Decision Process
Decision maker perhaps reviews of the situation may Converting the decision into action.
reveal the following
1.An error in the actual implementation
2.An error in calculation. Budgeting the Time
Effective Managers know that:
Decision Process Time is a limiting factor
1.Indentify the problem Time is a unique resource
2.Specify objectives and the decision criteria Time is absolutely irreplaceable
3.Develop alternatives
4.Analyze and compare alternatives Note:
5.Select the best alternatives The main task in the work of a manager is the time
6.Implement the chosen alternative spent working with people
7.Monitor results to ensure the desired results are Relations with other knowledge workers are really time
achieved. consuming
The decision maker must identify the criteria by which Mixing personal relations and work relations is time
proposed solutions will be judged. consuming.
1.Capital People decision is time consuming
2.Time
3.Profits First Things First
4.Maintenance The one secret of effectiveness is concentration.
Effective managers do first thing first and they do one 11. In determining the nature and degree of disciplinary
thing at a time. action that is made necessary by some improper act of an
No matter how the manager manages his time, the employee, the intent should be considered.
greater part of it will still not be his own. 12. Discipline should be constructive.
“There is always a time deficit.” 13. Except in cases of extremely serious offenses, no
disciplinary action should be permitted to take place until
TIMING is the most important element in the success of the supervisor has actually talked the situation over with
any effort the employee.
14. Discipline should not be administered on an entirely
Employee Discipline routine basis.
Discipline is the means that management uses to bring 15. Maintain a constant and sincere interest in your
employees behavior under control. people’s welfare on and off the job.
16. Motivation is the secret of good discipline.
Control within this context has three major
dimensions: Activity/ Output: (By group)
1. As a means of establishing awareness on the part of Read an article about decision making of a business
the employees regarding the proper behavior, attitude, related to Construction and other related Civil
and conduct in their jobs. Engineering Services.
2. As a means of establishing an atmosphere conductive a. Note the title of the article, author, and publication
to working together efficiently. date.
3. As a means of correcting or reforming employees who b. Digest according to what you understand about this
commit dimensions: any infraction or violation of Lecture 3.
company rules and regulations. c. Present in class with presentation slides.

Principles of Discipline
1. Disciplinary action should not be taken unless there is
an obvious necessary for it.
2. The reason for disciplinary action should be made
clear.
3. Give the man a chance to present his side of the story,
and do not argue.
4. There should be no favoritism or discrimination in any
disciplinary action.
5. Reprimand should be given as soon as possible after
the occurrence of the act.
6. Forgive and forget.
7. Never discipline anyone in the presence of others.
8. The discipline that is inflicted must be just, but
sufficiently severe to meet the requirements of the
situation.
9. Disciplinary measure should be applied by the
immediate superior of the employee affected, rather than
by some other higher executive.
10. In general, negative disciplinary action cannot be
successfully applied to large groups of employees
representing a substantial portion of one’s organization.