Projekbestuur 4AUnit2(2)

Copyright D Kruger 2013 UJ

Project Management 4A

Unit 2:

Corporate and Project Management


• Aim of this Unit:– Focuses on link between corporative and

project management.– Explains concept of large organisations with

extensive range of business and geographically dispersed sites

– Discuss prime purpose of corporate organisation

– Discuss prime purpose of project organisation– Highlights construction as “a peoples activity”– Investigate management systems


– GOAL OF THIS UNIT• To emphasize that to successfully deliver a

construction project, a organisation must have a sound corporative structure, carefully developed systems and a robust project structure.

Corporate vs Project

• Corporate: To develop company ethos, policies, aims and objectives to drive the organisation to survive and grow.

• Projects: To carry out efficiently and effectively those projects the company undertakes.



– Management (page 9)• Fundamental aspect of all human activity• Complex discipline that cross boundaries between many

disciplines. ………….Discuss!• Management is a collection of concepts, principles and

practices.

– Development of management theories• FW Taylor - Principles of production and organization• Frank Gilbreth – time and motion studies• Henry Gantt - ???• Henry Ford – assembly line productions• Henri Fayol – five management processes (plan, organise,

command, co-ordinate and control)


– Management Theories• Systems theory – suggest that an organisation is

the whole, comprising many parts, exists in an environment with many pressures upon its activities.

– This is typically a description of a construction company.

• Contingency theory – focus upon the need for any organisation to adapt to change. Suggest that there is no one correct way to manage an organisation. Management must be totally flexible.

– Again this is a descriptor of the construction industry.


– Management of contracting organisation:• Principle contracting organisation differs from

manufacturing or process organisation– Greater decentralised management– Projects are unique temporary organisations– Parent company manages multiple projects– Wide range of inter-disciplinary elements– Various tiers of management organisations which must

be configured from corporate to project. – Study figure 2.1 : Key elements of management for

construction projects.


Corporative Structure

Corporate or Company Structure

providesOrganisation

Project StructureSite responsibilities

and tasksProject Structure Project Structure


– Corporative Structure (p12)• Strong, recognised and accepted structure is

required. (figs 2.3 & 2.4)

• Maintains rigidity but with sufficient flexibility to accommodate change.

• Structure may be strong vertically aligned (mechanistic) (fig 2.5) or flat informal hierarchy (organic) (fig 2.6).

• Corporative structure must be robust to allow stability for many temporary site organisations.

• Org structure must reflect activities of corporative management as well as site management with clear link between these.


– Prominent organisational influences upon organisational structure

• Study Table 2.2 for detailed discussion• Question: Definition of “organisation” (p 13)

– Organisation chart – identifies:– Functional management disciplines– Responsibilities– Relationships– Chains of command– Communication routes

• See examples in figures 2.3 & 2.4


– Organisational management systems (p15)• A way of doing things• Requires protocols, procedures and instructions• Allows structure, order and stability• Prevents chaos

– ISO 9000 international management system– Management system must fulfill the

company’s business policy.– Various functions should be linked by

interactive and supportive systems– See Figure 2.5 (not linked) & 2.6 (linked)


– System elements• Elements are required to develop, drive, implement

and improve organisational systems over time.• Key elements are:

– Policy– Organisation– Risk assessment– Planning– Implementation– Auditing

Compare with ISO 14001 (Environmental management Systems)


– Systems Documentation (NB: Study figs 2.7 and 2.8)• System is configured to provide broad corporative and

operational structure for managing the whole organisation in a holistic way.

• System exist to provide support to core business units• System set standards and goals• Systems are formalised through documentation• Documentation translates system into operational

management procedures.• Such documentations includes:

– A management system manual

– Management procedures

– Working instructions

– Project management plan


– Effectiveness of management systems (p18)• Requires specific undertaking at both corporative

and project level• Commitment to policy and strategy• Employee ownership of system management

functions through buy-in.• Performance related goals• Good practice guidelines• Adequate training and briefing at project level• Adequate available resources to facilitate system• On-going review and improvement


– Site Management Structure• Site management structures differ from org to org

but evolve and develop as business grows• Emphasis shifts from managing the work from one

office to delegating to sub-organisations

– Configured in such a way to facilitate efficient and effective achievement of objectives and goals

– See figure 2.9 for the site structure of a large principle contracting organisation.

Site

Org

aniz

atio

n



– Summary• Carefully conceived and robust organisational

structure is a prerequisite for effective site management.

• Company mission, policies, aims and objectives must be disseminated through org at both corporate and project level.

• Management systems, sets of procedures and working instructions guides and direct functional management activities.

• Core element is company documentation – Manuals, procedures, working instructions, project plans.

Projekbestuur 4AUnit2(2)

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