1. PREPARED BY:-
Karm Balar
ASST. Prof.
S.S.A.S.I.T.
S.S.A.S.I.T G.T.U
SHREE SWAMI ATMANAND SARASWATI
INSTITUTE OF TECHNOLOGY, SURAT
Project Organization
Construction management
1

2. Introduction
A construction company
Forms of business organization
Structure of construction organization
Organizing for project management
Management levels
Traits of a project manager
Important traits of a project coordinator
Contents
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3. Indian construction industry comprises:
nearly 200 firms in the corporate sector and
about 1,20,000 class ‘A’ contractors,
and numerous small contractors,
including individuals, who execute small jobs including repairing and
maintenance.
Various forms of organization and their structure, different management
levels in a construction organization and other issues are discussed in this
chapter.
Introduction
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4. A construction company could be a one-person organization or a larger firm with
several departments,
The primary aim of these companies is to make profit.
The common functions of a construction company are:
General administration,
Estimating,
Managing contracts and personnel,
Design, engineering, purchasing/procurement,
Accounting, and
Managing field construction.
Construction Company
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5. 5
A project organization is a structure that facilitates the coordination and
implementation of project activities. Its main reason is to create an
environment that fosters interactions among the team members with a
minimum amount of disruptions, overlaps and conflict.

6. Types of Organization for project
management / project level
 Frequently used organizational forms for project level…
 Classical or functional organization,
 Pure project or product organization, and
 Matrix organization.
• Functional matrix,
• Balanced matrix,
• Project matrix.
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7. Functional Organization
In a functional structure, the organization is broken into
sections based upon specialty. This organization are
arranged different by function such a marketing,
engineering, production, contract, resources procurement,
HRD, etc., and each headed by a director or specialist
manager .
Its center of power and coordination in concentrated at the
top with chief executive.
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8. Functional Organizations
3–8

9. Classical (Functional) organization
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10. 10

11. Pure Project Organization
• Project organization is a project focused organizational structure
where project manager has the final authority over the project to
make project decisions, priorities, acquire and assign resources.
• A project organization refers specifically to an organizational
structure that has been set up in a manner in which the project
manager leads the group and in which the project manager has the
ultimate authority to make any and all decisions involving
the organization.
• In a project structure, all the work is looked at as a project. The
project manager has complete control, unlike in the functional
structure, and all team members report directly to the project
manager.

12. • Sometimes these team members are permanent, and sometimes they
are hired as temporary workers to help with the project until its
completion. If the organization takes on a large project, it will have all
the necessary resources available to sustain the project and will act
as a small, self-contained company.
• The project manager works with complete autonomy (central
authority, power) over the project, team is on the project full time and
report to the project manager.
• As a project manager, you have the responsibility to take authority,
rather than waiting for someone to give you the authority.

13. © McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-13

14. Pure Project or Product Management
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15. Matrix Organization
- It is used mainly in the management of large projects or product
development processes, drawing employees from different functional
disciplines for assignment to a team without removing them from their respective
positions.
- Matrix management is a type of organizational management in which people with
similar skills are pooled for work assignments.
- The matrix structure combines both the functional and project structures. Each team
member has two bosses; they report both to the functional manager and the project
manager.
- If the matrix is strong, the power resides more with the project manager.
- If the matrix is weak, the power resides more with the functional manager.
- The key is to find a balance in which the power is shared equally.
- Because of its complexity, this type of structure can lead to problems if it is not
used carefully and properly. Good communication is essential for success.

16. Matrix Organization
• This structure utilizes both the functional and divisional chains of
command simultaneously in the same part of the organization.

17. Figure 2.6
Matrix organization
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18. types of structure of Construction Organization /
corporate level
Depending upon the manner in which the authority and
responsibility in an organization , the structure of
construction organization level can be divided in to two
categories…
1. Line or military organization
2. Line and staff organization
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21. 21

22. 22

23. 23

24. 24

25. 25

26. Line and Staff Structure Organization

27. 27

28. Management Levels
 Management level can be defined as ‘a position in management that is stratifiably
differentiable in terms of power, authority, responsibility, and accountability over
resources required to achieve defined objective(s).
 Tenah (1986) identifies five management levels-
 The board of directors level,
 The president’s level
 The construction management level
 The project management level
 The functional management level
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29. Positions in Director level
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30. Positions in Presidents level
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31. Figure 2.9
Positions in Construction Management
level
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32. Figure 2.10
Positions in Project Management
level
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33. Figure 2.11
Positions in Functional Management
level
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34. 1. Common sense
2. Open-mindedness
3. Adaptability
4. Inventiveness
5. Prudent risk-taker:
6. Human , conceptual, and technical skills
7. Fairness
8. Commitment
9. Conflict resolution
10. needs solid basic experience in the relevant field
11. leadership skills
Traits of a Project Manager
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35. Traits of a Project Coordinator
Team building skills Contract implementation skills Project-organization skills
Concern for conciliation
Concern for other’s ego
Understanding of human
psychology
Analytical skills
Motivating skills
Belief in team playing spirit
Timeliness
Facilitating skills
Interpersonal skills
Communication skill
Technical knowledge of the
subject
Resource -utilization skills
Reliance on systematic approach
Understanding of contract clauses
Concern for safety, health, and
welfare of labour and employees
Monitoring skills
Maintaining records
Follow-up quality
Forecasting skills
Planning skills
Relationship with client,
consultant, and contractor
Coordination for achieving
quality
Liaison skill
Knowledge of project finance
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36. Team building skills
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37. Contract implementation skills
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38. Project organization skills
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