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CPM 1 - Fundamental Elements of Project Management

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Ce 505

CONSTRUCTION PROJECT
MANAGEMENT

Fundamental elements of a project


management

Engr. lazo
I. Organization and Management
1-1 Definition of Organization
What is organization?
a group of individuals who are cooperating
willingly and effectively for a common goal. It
seeks to know who is to do and what is to be
done.
I. Organization and Management
1-2 The structural organization
It is the formal arrangements that are
established to coordinate all activities in order to
implement a given strategy. Thus, structure
reflects the anatomy of a firm through its focus
on mechanisms and processes that link both
vertically and horizontally the various parts of an
organization.
I. Organization and Management
The structural elements of an organization (5Ms)
a. Men. These are the different members of the
organization starting from the very top of the last
workman in the enterprise.
b. Materials. Represents the materials necessary in
the distribution of functions in the attainment of its
objectives.
c. Machine. The tools necessary in producing its
desired output.
I. Organization and Management

d. Methods. The procedures and ways used in


the course of its actions.
e. Money. The financial resources of the
organization.
I. Organization and Management
Major Elements of Organizational Structures
1. Distribution of functions. The functions to be
performed, the groupings of functions, and the vertical
and horizontal task relationships among functions.
2. Vertical and Horizontal Authority Relationships.
3. Communication and decision processes. The manner
in which formal decisions are made and by whom.
4. Policies. The decision, rules, or guidelines established.
I. Organization and Management
Principles of Good Organization
a. Principle of Objective. A clear and complete definition of the
objective must be known. Any business concern or any
individual must adhere to a definite purpose or aim.
b. Analysis. A sound business judgment attempts to build an
organization through full knowledge of the requirements of
the business.
c. Simplicity. The simplest organization that will serve to attain
the desired objective is considered the best.
d. Functionalism. The organization should be built around the
main functions of the business and not around the individuals.
I. Organization and Management
a. Departmentalization. In big organization, the
scope of operation can be very broad,
necessitating departmentalization to achieve a
smoother flow of operations.
b. Centralization of Authority and Responsibility.
In every organization there should be centralized
executive control or command authority.
c. Limited Span of Control. The number of
subordinates an executive can manage effectively.
I. Organization and Management
1-4 Definition of Management
Management is a process. It is the process of
directing and facilitating the work of people who
are organized for a common purpose.
Management is a function. It is the function of
getting things done through the efforts of others.
It is the application of authority and the
assumption of responsibility.
I. Organization and Management
1.6 Management Concept
Management to be effective must be
systematic. Things can be done better by means of
plan of action. The plan is a step by step outline of
what is to be done and who does what.
Management to be successful must be
scientific. Scientific management has done more
to advance and win the status of mankind today
than has any other single factor.
I. Organization and Management
1-7 Management Structures
The line of responsibility works in two ways:
a. From the executive to the supervisor down to
the workers under his jurisdictions and
conversely.
b. From the workers to those who are in
authority over him.
I. Organization and Management
1.8 The Manager
The manager as executive is the most difficult and with
the highest degree of responsibility. The nature of his job
is varied from the simplest to the most complicated one.
Being the bridge between the board of directors and
stockholders or between top management and the rest of
the agency personnel or between the agency itself and the
general public, he is always blamed for mismanagement,
and yet, he is oftentimes not praised for his success. But
his job is always in his mind no matter where he is.
I. Organization and Management
Quality of an Effective Manager
1. He studies, analyzes and dissects his job.
2. He knows how to delegate the administrative details of
his job.
3. He is willing to delegated and share with his
subordinates the credit of a job well done.
4. He trains and develops his men to prepare them to
assume delegated work.
5. He knows how to control and plan his time.
6. He institutes controls for effective performance.
I. Organization and Management
1-9 Executive Functions
The manager do not do the actual work of an
organization. His specific functions are:
a. To plan
b. To Organize
c. To Direct
d. To Control
I. Organization and Management
1-10 Executive Leadership
Executive leadership is the bridge between objective and
result. Human progress is the crowning glory of success.
Leadership is the ability to motivate subordinates and other
people toward the achievement of organizational objectives.
The ability to influence, persuade and motivate followers is
based largely upon the perceived power of the leader.
A leader must have a goal, which is practical and right. With
such qualities, he will certainly command the respect of others
and be a true leader, but the best training in management is
actual management.
I. Organization and Management
1-11 Delegation of Authority
Delegation of authority is the key to effective
management. Authority is the power of an administrator to
delegate functions to the next ranking executive, who in turn
transmit it to the employees who are charged with the actual
operations.
Authority however, should have a definite limitation to
avoid confusion. The authority vested upon an executive
should preferably be in writing. It should be interpreted
clearly to avoid misunderstanding between the boss and the
subordinates.
I. Organization and Management
1-12 Directing People on the Job
Wha is an Order?
An order is a specific message conveyed by a
leader to a follower for the purpose of
influencing the follower to take desired action.
Orders are either verbal or written.
I. Organization and Management
When to use verbal orders.
1. When the order is simple and the message
can be clearly heard.
2. When privacy is important.
3. When the workers involved are fast learners
and good listeners.
4. When demonstration is involved.
I. Organization and Management
When to have written orders.
1. When precise figures or complicated details are
involved.
2. When orders must be passed on to someone else.
3. When the workers involved are slow to
understand and forgetful.
4. When you want to hold the receiver strictly
accountable.
I. Organization and Management
Categories of orders.
1. Request
2. Suggestion
3. Asking for volunteers
4. Direct order
I. Organization and Management
1-13 How to give effective orders.
The way to give orders effectively, and earn yourself
a reputation as compelling leader, you must.
a. Obtain favorable attention.
b. Clarify your objective.
c. Make it simple and specific.
d. Phrase it tactfully for best results.
e. Explain why it should be done your way.
I. Organization and Management
g. Note his readiness to act.
h. Give him faith in his ability to carry it out.

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