Last reviewed 16 Sept 2026 · 8 min read
Organisation and its principles
Organisation is the structure of roles, authority, responsibility and relationships that enables people to work together towards objectives.
Principles of organisation
| Principle | Meaning |
|---|---|
| Unity of objective | All parts work towards common goals |
| Unity of command | Each person receives orders from one superior only |
| Span of control | Number of subordinates a manager can effectively supervise — narrower for complex work |
| Scalar chain | Clear line of authority from top to bottom |
| Delegation | Authority passed down with responsibility; responsibility cannot be fully delegated |
| Parity of authority and responsibility | Authority should match responsibility |
| Division of work / specialisation | Work divided according to skills |
| Flexibility and simplicity | Structure adapts to changes |
Fayol's 14 principles of management
Division of work; authority and responsibility; discipline; unity of command; unity of direction; subordination of individual interest to general interest; remuneration; centralisation; scalar chain; order; equity; stability of tenure; initiative; esprit de corps.
Types of organisation
| Type | Features | Merits | Demerits |
|---|---|---|---|
| Line (military/scalar) | Direct vertical authority from top to bottom | Simple, clear authority, quick decisions, discipline | Overloads top managers, no specialists, rigid |
| Line and staff | Line managers command; staff specialists advise (planning, quality, safety, legal) | Expert advice with unity of command; suits large projects | Line–staff conflicts; staff lacks authority |
| Functional (Taylor's functional foremanship) | Work divided by function; workers receive orders from several functional foremen (e.g. route clerk, instruction card clerk, time and cost clerk, disciplinarian, gang boss, speed boss, repair boss, inspector) | Specialisation, efficiency | Violates unity of command, confusion, conflicts |
| Committee | Groups of persons for decisions/advice | Pooled judgement, coordination | Slow, diluted responsibility |
| Project / matrix | See Construction Planning & Project Management | Project focus | Dual authority (matrix) |
Site organisation of a construction project
A typical contractor's site organisation (large project):
- Project Manager — overall responsibility.
- Planning and billing engineers, quality control engineer/laboratory, safety officer (staff functions).
- Construction managers / section in-charges → site engineers → supervisors/foremen → gangs of workers.
- Stores and purchase, plant and machinery, accounts and administration, human resources.
In government departments (e.g. PWD), the hierarchy commonly runs: Chief Engineer → Superintending Engineer (circle) → Executive Engineer (division) → Assistant Engineer (sub-division) → Junior Engineer (section).
Duties of a site engineer / junior engineer (typical)
- Setting out works; ensuring work as per drawings and specifications.
- Supervising labour and contractors; quality control — checking materials and tests.
- Recording measurements in the MB and maintaining site registers.
- Preparing progress reports; planning daily/weekly work; material requisitions.
- Ensuring safety and housekeeping; coordinating with other agencies.
- Handling hindrances and issuing site instructions (as authorised).
Site layout planning
The site layout shows the location of temporary facilities to ensure efficient, safe and economical operations.
Facilities to be located:
- Access roads, gates, security, parking.
- Site office, laboratory, first aid room.
- Stores — cement godown (raised floor, waterproof, near mixing point), steel yard, aggregate stockpiles, fuel store.
- Batching plant/mixers — near aggregate stockpiles and cement store, with access for transit mixers.
- Crane positions — covering the work area and unloading points; hoists.
- Fabrication yards — reinforcement bending, formwork, precast.
- Water and power supply, drainage.
- Labour camps, toilets, canteens (away from hazardous areas).
- Waste disposal area.
Principles: minimise material handling and travel distances; avoid double handling; keep safe clearances from excavations and overhead lines; separate pedestrian and vehicle routes; allow for changes as work progresses; protect materials from weather and theft.
Site records and registers
| Record | Purpose |
|---|---|
| Site order book | Instructions to the contractor by the engineer-in-charge, acknowledged by the contractor, with compliance noted |
| Hindrance register | Records hindrances/delays (drawings not issued, site not available, departmental materials delayed) with dates — basis for extension of time |
| Cement register | Daily receipt, issue and balance of cement (especially departmental cement) |
| Steel and other material registers | Receipts, issues and balances |
| Measurement book | Measurements of work done |
| Daily progress report / site diary | Work done, labour and equipment deployed, weather, visitors, problems |
| Test registers | Results of material and concrete tests (cube register, slump) |
| Labour register / muster roll | Attendance and wages |
| Drawing register | Issued drawings and revisions |
| Equipment log book | Working and idle hours, fuel, breakdowns |
| Safety register / accident register | Inspections, incidents |
Materials and stores management
Objectives
Ensure the right material, in the right quantity, of the right quality, at the right time and place, at the right price, with minimum inventory cost and no wastage or pilferage.
ABC analysis
Items classified by annual consumption value:
| Class | Share of items (approx.) | Share of value (approx.) | Control |
|---|---|---|---|
| A | ~10% | ~70% | Tight control, frequent review |
| B | ~20% | ~20% | Moderate control |
| C | ~70% | ~10% | Simple control |
Other classifications: VED (vital, essential, desirable — criticality), FSN (fast, slow, non-moving), HML (high, medium, low unit price).
Economic order quantity (EOQ) — minimises the sum of ordering and carrying costs:
= annual demand; = ordering cost per order; = carrying (holding) cost per unit per year. At EOQ, annual ordering cost = annual carrying cost.
Reorder level demand during lead time safety stock Maximum stock reorder level reorder quantity minimum usage during minimum lead time (commonly used formula)