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Effective Management Strategies for Small and Medium Construction Firms

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15 diapositives · 300 Views · Jul 11, 2014

This guide explores the management of small (1-49 employees) and medium-sized (50-249 employees) construction firms within the EU, where a significant portion of the workforce is small businesses. It emphasizes the importance of functional organization, negotiation skills, and effective delegation of responsibilities. Leaders are defined not only by their vision but also by their ability to communicate and inspire their teams. The structure of management and the project organization are key to achieving successful outcomes. Essential skills and roles for leaders in construction management are also discussed.

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  1. MANAGEMENT OF SMALL/MEDIUM FIRM Paweł Bilski Piotr Mazur Paulina Wawryca

  2. THE SMALL FIRM • Number of employee: 1-49 • In theEuropean Union are 1 100 000 construction firmswith 91% employing less than 10 people. • Management betweentheman on the top and theworkers. • Functionallyorganised. • 60% of theworkisobtained by negotiation and therestfromcompetitivetenders. • Thepolicy of the company is to usemixture of labour-only and directlyemployedsubcontractors.

  3. ORGANISATION STRUCTURE Responsible for: -Contact with clients/ architects etc. -Preparation of tenders/ obtaining work -Submission and adjudication PRINCIPAL OWNER decisions -Pre-contract arrangements -Letting of subcontracts -Planning -Payment to subcontractors/ suppliers -Establishing policy -All decision making

  4. PROJECT ORGANISATION Levels of management PRINCIPAL Level 1 Level 2 Construction site manager Construction site manager Subcontractors Subcontractors

  5. THE MEDIUM-SIZED FIRM • Number of employee: 50-249 • A team approach to the management of the company has to be established by the appointment of directors for contracts, surveying, estimating, office organisation and financial aspects of the business. • Policy decisions must be communicated throughout the organisation. • Development of teamwork is necessary at all levels of management. • Delegation of responsibility at all levels of management must be established. • Control and reporting procedures must be established for reporting on contract performance during the progress of construction projects. • The staff know the person they are responsible for reporting to.

  6. ORGANISATION STRUCTURE Levels of management Level 1 Level 2 Level 3 Level 4

  7. PROJECT ORGANISATION Contractordirector Financial reports Contracts performance Clientcontact Responsible for thecontrol and coordination of projects Reporting on progress/ financial performace Contracts manager Organisation of subcontract resources on an individualproject Short-termplanningprocedures Weeklyreports Construction manager Subcontractorsengaged on project Headofficeinput to projects

  8. The Role of a leader

  9. Definition of a leader • „Leader is considered to be someone with vision and ability to articulate that vision to the team, so vividly and powerfully that it becomes their vision” • “A leader is someone who brings to the situation a clear and compelling sense of the future as well as an understanding of the actions needed to get there successfully” • „Leader is a person that holds a dominant or superior position within its field, and is able to exercise a high degree of control or influence over others”

  10. Differentroles of a leader • The most fundamental role of a leader is to define the organizational goal, formulate plans and organize people to achieve the goals through the execution of plans.

  11. Vision - It defines the purpose, or simply “What to do?” A vision includes determining the next product or feature, finding new markets for the product, adoption of new technology etc. • Strategy - It articulates the plans, “How to achieve the vision?” Plans or strategies demonstrate the job knowledge or the skills of a leader. It includes restructuring organization, product management, strategic management etc. • People - “Who should carry out the Strategy?” How to make people accomplish the strategy and hence the goal,and explaining the vision of the organization and the reason, why the organization exists. The people skills include providing inspiration & motivation, establishing relationship, intelligently using power and position of leadership etc.

  12. Making decisions • Representing the organization internally and externally • Connecting the people in the organization • Integrating the personal goals with organizational goals • Solicits support

  13. Whatmakes a good leader? • Ability to adapt swiftly and to deal with ideas and concept that have potential • Ability to stimulate workers` creativity • Knowledge • Communication skills • Ability to motivate team to work • Responsible • A friend, philosopher and guide

  14. References • Cooke B., Williams P., Construction planning, programming and control, Wiley-Blackwell, 2010 • http://www.practical-management.com/Leadership-Development/Role-of-an-Organizational-Leader.html • http://yourhrmguide.com/content/leadership-skills • http://www.managementstudyguide.com/role_of_a_leader.htm

  15. THANK YOU!