Set Up of a Construction Business

7/28/2019 Set Up of a Construction Business

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Set Up of A ConstructionBusiness and Introduction to the

Conceptof

Professionalism toImprove Overall Production

Set Up of A Construction Business


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Growth: Diversification.

There are some retail businesses that seek to growthrough diversification. As there are risks involved instarting up a new company expansion so are there inexpanding to a new product line or services. However,a careful analysis of the risks ad costs against benefitsand a proper general planning will increase the

company annual turnover. There are many ways to diversify which include the

following:

New related products/services to existing customers

New market for existing products/services

New products/services for new markets.


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Company Name This involves given your business an identity. The business corporate name shall be brief

and precise in a way it reflects the activities of a company.

It is very important to take time to develop that is easy to describe, fits on signs, and works.Do not choose a name you cannot live with.

The business name will be legal right to be used in signs, bank accounts, checks, and any

other legal transaction that the company may be involved in. Even though there is a

likelihood of name duplication, it is important to note that a company has a right to protect

and defend its name once you have built a business around it.

Mission Statement A company mission statement describes the reasons and purpose of setting up the

business.

It summarily in clear language describes the company product/services, how to attract

customers/clients, usually no more than two lines.

Typical mission statement read thus:

Hildebrandt Construction aims to provide high quality craftsmanship in the commercial

construction industry at a very competitive cost. It is the goal of the company to achieve a

greater reputation for quality and on-time delivery than the current competitors on the

Island


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Process ManagementBusiness Process Management (BPM) is the result of the convergence of many trends,

among which are business process modelling, quality management, change management,

distributed computing, workflow management and business reengineering (Smith and

Fingar 2003).

Functions of Management

According to Henry Fayol (1916) to manage is to forecast and plan, to organise, to

command, to co-ordinate and to control". Whereas Koontz and ODonnel come with the

most widely accepted functions as Planning, Organizing, Staffing, Directing and

Controlling.

Planning

Planning is a management function that involves setting of goals and establishing a

projected course action on when, how, and whose responsibility is it to accomplish

them. Generally planning involves


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Forecasting, Establish objectives, Mapping strategies, Develop policies, And setting of goals.

Organising

Organising as a process involves division of work into functions, sub-functions, bringing

together related activities, assigning of duties and responsibilities to employees,

delegating authority and power, and coordination of authority and responsibility

relationship.

job specification, span of control, unity of command, coordination,

Staffing

This is the function of management which involves the recruiting suitable and

competent hands to man the organisation structure and keeping it manned. Staffing is only effective when the right man is assigned to the right job. According to

Kootz and ODonnel, Managerial function of staffing involves manning the

organization structure through proper and effective selection, appraisal &

development of personnel to fill the roles designed un the structure.

Staffing involves:

Manpower planning (Analysing the organisation structure requirement) Recruitment, Selection, placement and termination

Training and development

Remuneration

Performance appraisal

Promotion and transfer


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Directing

Directing is a managerial function that where the actual enterprise operational activities

start-off.

Directing is not just about issuing order from a superior to subordinates, but rather It is

about supervising, guiding, and motivating the latter to achieve the organisational goals. It

is characterised by the following: Supervising: overseeing the work assigned to subordinates

Motivation : Inspiring the subordinates through recognising and rewarding hard work

Leadership: process of guiding and influencing the subordinates by managers to achieve

organisation objectives

Communication: this involve the passing of information experience and opinion etc.

from one person to another

Controlling

This is the managerial function concerned with ensuring that actual operational

activities conform to planned operations.

Effective control system helps to predict any deviation prior their occurrence. The

entire managers in an organisation have a responsibility to controlling in theirrespective departments.

Controlling as a process involve:

Establishing performance standards

Measuring individual and organizational performance

Comparing actual performance to planned performance standards

Taking corrective actions


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Organisational Structure

Organizational structure can be defined as theways in which responsibility and power areallocated and work procedures are carried out byorganizational members (Dewar and Werbel1979)

The organisational structure of a company showslevels of management divisions and subdivisionsof that organisation. The responsibilities of

employees in big/small or complex organisationsare typically defined by what they do, who theyreport to, and for managers who reports to them.


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Functional Organisation Structure

This is the most adopted type of business organisations.

The organisation is structured into departments such as production,marketing, human relations, accounts etc.

The management from above centrally coordinate the different specialised

departments. This is most suitable for medium to large companies. There is also a friction

there tends to be lack of coordination between departments.


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Production organisation structure

This form is many a time employed in businesseswhere functional form is deemed no longer effective.

As an organisation sees a need a new product orservices, it may change to a product organisationstructure.

It is a form of business organisational structure where

grouping of activities is on the basis ofproduct/services lines.

It has been important in multi-line, and large scalebusinesses.


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Matrix Organisation Structure

This form of organisation structure is a combination of functionaland product form of departmentalisation in same organisationstructure.

Employees from different functions are drawn to form teams towork on a project until its close out, then they are returned to their

initial functions. In engineering business for instance each of the functions is woven

into different projects being handled by the business organisation.

Project leaders usually make business decisions as well as at the topcorporate and top functions level.

It has the advantage of people from different functions can identifyproblem from their perspective as there are different range of skillsinvolve in a particular project.


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Total Quality Management (TQM)

The construction industry for a long time has the concern ofachieving an acceptable level of quality.

The wasted of expenditures of time, money and resources (bothhuman and material) has been attributed to lack or inefficientquality management procedures.

Total Quality Management (TQM) concepts were developed bymanufacturing industry as a measure to counter these wastages. In

America and Japan where TQM has been adopted, a survey revealsthat there has been increase in productivity, decrease in productcost and improved product reliability. (Arditi and Gunaydin 1997).

Total Quality Management (TQM) flow chart

F Aff i Q li


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Factors Affecting Quality

Management Commitment and Leadership

For TQM to succeed the management has to see it as matter of priority and uphold it.

This effort has to be supported by thorough understanding of the total quality management by thesenior management who then guide the organisation towards the realisation of higher quality goalsin its undertakings.

It should be noted that TQM is more of control rather than participation.

figure above shows Total Quality Management (TQM) elements and the factors

that affect quality in construction project process

T i i


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Training

In total quality management (TQM) achieving required quality is everyonesresponsibility.

Training cuts across all level of a company employee from management tolabourers.

A company should have well prepared training plans for the management,

engineers, technicians, home and field office staff, support personnel and fieldlabour.

Team work

The TQM approach to team participation is rally round is to make sure all

the departments involved have a clear understanding of the concept and

are actively involved in achieving project quality objectives. For a customer satisfaction teams composed of department

representatives are necessary to implement TQM throughout the

organisation.

Statistical Methods

Statistical methods is involves with the scientific problem solving to TQMprocess.

These methods provide working team with the tools to detect problems that

may affect project quality.

Statistical data provides information in a precise language that can easily be

understood by all team members, to verify, repeat, and reproduce

measurements based on data, to determine the past, present and to a lesserdegree the future status of a work process.


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Supplier Involvement

A project quality cannot be successfully achieved without adheringto designers specification.

The materials, equipment, and any other installation to be supplied

by vendors shall conform to specification. It is important for a construction company to establish a long term

relationship with reputable suppliers and subcontractors.

For a construction company to achieve quality objectives, suppliersand subcontractors selection should not only be based low-bid, butalso the quality of product/services

Other factors that affect Total Quality Management (TQM) are:

Cost of quality

Customer/client Service

Other construction industry specific factors such as quality of codesand standards, Drawings and specifications, Constructabilityanalysis


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Introduction of Concept of

Professionalism to Improve Overall

Productivity Who is a Professional?

A professional is a person who is paid to undertake aspecialised set of tasks and to complete them for a fee.

(Gaminini 2012)

Qualities and Characteristics of a Professional

With regard to technical expertise:

Technically competent; A good professional has greatlearning drive; Teaches younger members of hisprofession; A good professional gives professional adviceonly when he thinks he is qualified to do so


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With regard to orientation toward service:

He understands that the knowledge he has acquired in to bepositively used to assist clients.

He earns his living and earns respect of people, he does not seek

excessive profit at the expense of his clients A good professional tries to understand his clients requirements as

well as his firms goals and does his utmost best to meets them.

With Regards to Integrity:

He treats client and co-workers with respect, he is polite in hisdealings with them, he is punctual, flexible in team work and inaccommodating to their needs. He keeps company secrets asconfidential.

A good professional is fair in his dealings withers others, patient,does not gossip or cheat. He possesses the virtue of justice.

He performs the work to which he is assigned diligently, that whichhe cannot he lets his client or boss know.


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With Regards to Advancing Profession:

He tries to bring in new innovations to improve services rendered by his profession.

He collaborates with his fellow professionals whenever the need arises (showing

professional courtesy) and does not criticise any member in public.

He upholds the ethical values in his profession. He believes that the way and manner

he delivers his services has direct or indirect effect on his profession.

He takes interest in his professional community. He tries to promote solidarity among

professional members. He wants to help younger members in the profession to grow.

With Regards to Ethics:

He always works in accordance with his profession work ethics. He feels responsible

for knowing and observing the ethical norms e.g. codes of ethics. He contribute in

changing any code of ethics if the need arise.

He recognises with the civil laws, regulations, safety regulations, building codes and

so forth.

What is Professionalism?Webster's Dictionary defines it as, "the conduct, aims, or qualities that characterize or

mark a profession or a professional person.

How is Professionalism Judged?

Professionalism is not just about how good, neat, or our corporate we look in our dress

thats only the starting point!


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Competence

Professionals get the job done.

They are reliable because they have proven that they have the capabilities to

deliver.

Communication skills

Professionalism is when you can effectively communicate your skills and talents

to the market place to something productive.

A Professional speaks with assertively without being aggressive or

confrontational.

Demeanor

He exudes professionalism in his actions.

He always presents with confidence, calmness no matter how difficult a situation

is.

Image

Dressing professionally garners a good first impression from clients.

How we dress is one of the first things people notice when they meet you.


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Steps for Inspiring Professionalism in an Organisation

1. Establish the Rules

Employees come from different cultures and often times coming from other organisations,

we cannot assume that they know what is expected of them to do or not to do to think and

act professionally. The organisation shall first establish the rules of professional behaviour that are expected

to guide on the employees in discharging their duties.

This involves formulating written organisational policies, procedures, and code of conducts

that recognises values, standards, and principle of behaviour in tangible form.

2. Teach the rules

The next step is to ensure, as a manager, that the employees understand these rules. This involves induction to new employees, presentations, seminars, to teach employee that

professionalism is for everyone.

A handbook which shows the guiding principles for professional behaviour should be

issued to all employees. This will enable them to obtain first-hand guidance for how they

should apply the rules in their individual circumstances and environment.

3. Ensure compliance

The third step is to ensure compliance to these rules. The manager should as a matter of

importance provide on-going reminders and reinforce by recognising and rewarding the

professional behaviours desired.

The managers need to insist that professionalism standards are maintained. This they do by

addressing behaviour that is unprofessional. Erring employees should be brought to order

using the company laid down procedure.

Documents

Set Up of a Construction Business