What departments shall I create??

Dear Revathi,

These sites will not be permanent right. Its just that for the current projects they have assigned the specific site engineers and supervisors.

After 6 - 8 months they will move on to other projects.

So I dont think u will have to have depts for seperate sites. They will all have the same responsibilities.

(I guess u meant the site as current projects)

Hi Revathi,
Only to-day I happen to see your question about HR for a construction Company.
Normally, The Company has Higher Management, Middle Management, Down the line operations:
Constuction Company:
Directors-Technical - They are fully responsible for the entire operations of the company as far as acquiring contracts, and seeing to it whether to tender or not. Checking the Estimation with the Contracts Manager and decision taken at the Board Meeting with all Directors. Finance and Banking will be discussed with the Finance Director and with Board of Directors and Cont. Manager generaly not involved with Corporate Finance. But once the Finance is allotted to the Project then he has to ensure that the Project is executed and general revenue to meet up all the cast flow.
Director- Finance - will have under him : FINANCE MANAGER/CHIEF ACCOUNTANT, ASST.ACCOUNTANT, COST ACCOUNTANT, DATA ENTRY OPERATORS. AND LIKE
General Manager:
Manger - HR.& Operations.
Project Departments: CIVIL, MECHANICAL, HVAC, PLUBING, ELECTRICAL & INSTRUMENTATION, AND THE LIKE AND LIKE ETC.
FIRST COMES
TENDERING & ESTIMATION
PLANNING
AUTO CAD & DESIGN
PROCUREMENT- PURCHASER
CONSTRUCTION/CONTRACTS MANAGER
PROJECT MANAGER-( ONE PROJECT MANAGER FOR EACH PROJECT IF THE PROJECT IS LARGE) OR PROJECT MANAGER FOR EACH DIVISION OF ACTIVITY.
SITE ENGINEERS ( EACH ACTIVITY ONE OR MORE)
SITE ACCOUNTANT/ COST ACCOUNTANT/ PROJECT ACCOUNTANT ( ONE FOR ALL OR TWO AS THE CASE MAY BE - PLUS ASSISTANTS)
SITE SUPERVISORS
FOREMAN
DRAFTSMAN/DRAUGHTSMAN -AUTO CAD, PRIMA VIERA
STORE-KEEPER
SAFETY OFFICER
WORKFORCE-MASON, CARPENTER, DRIVERS, FORK-LIFT OPERATORS, DUCT ERECTORS, PLUMBERS, FABRICATORS, WELDERS, ELECTRICIANS, AIR-CONDITIONING MECHANICS, AND GENERAL WORKERS-LIKE HELPERS AND OTHERS, OFFICE BOY/TEA BOY.
SECURITY PERSONNEL

Now you drawout a company organization chart showing who stands where and then you will come to know how to give line organization.

As per the line of work undertaken by the company category of peoples will be added and you can create a name for that.

Here comes:
Attendence Card: Normally I used to creat different colour of card for Major Labour Force like Plum/Elect/Civil etc. to know who this worker is w/o looking into the details, but on looking at the card itself we identify who he is.
Company Policy for attendence: What normally do is daily wages peoples get paid on days they work. So the incentive monthly is that if they put 26 days work (i.e.inclu. days if sunday or etc. worked, but not for daily o.t. hrs. they get) then they will be paid 2 days extra days as exgratia. Even if they put 25 days in a month (w/o o.t. daily basis ) they they are paid 1 day extra wages. So people are tuned to give attendence and our work wont suffer due to absent.
Yearly leave 15 days are paid. But here we take into account the total days worked in a year as 300 days is the per year working. So 15/300 ..then how many days they worked it will be computed they will be paid every year along with bonus. So absent is not paid at all.
Monthly paid permanent peoples leave are recorded and as per their agreement and company rules they are dealt with.
Generally:
Getting a Full Bio-Data of the people (old and new) to get filled in with details of their family and their contact numbers and also a nomination form is filled in by the employee is taken on record to meet with in the eventuality of something happened then who will be paid all their dues. This will ease the companies litigation and avoid more complication. This may be updated yearly to keep it up-to-date to note any change in their status. Also if any employee wishes to amend the status this can be done any time.

Hi Revathi,
Only to-day I happen to see your question about HR for a construction Company.
Normally, The Company has Higher Management, Middle Management, Down the line operations:
Constuction Company:
Directors-Technical - They are fully responsible for the entire operations of the company as far as acquiring contracts, and seeing to it whether to tender or not. Checking the Estimation with the Contracts Manager and decision taken at the Board Meeting with all Directors. Finance and Banking will be discussed with the Finance Director and with Board of Directors and Cont. Manager generaly not involved with Corporate Finance. But once the Finance is allotted to the Project then he has to ensure that the Project is executed and general revenue to meet up all the cast flow.
Director- Finance - will have under him : FINANCE MANAGER/CHIEF ACCOUNTANT, ASST.ACCOUNTANT, COST ACCOUNTANT, DATA ENTRY OPERATORS. AND LIKE
General Manager:
Manger - HR.& Operations.
Project Departments: CIVIL, MECHANICAL, HVAC, PLUBING, ELECTRICAL & INSTRUMENTATION, AND THE LIKE AND LIKE ETC.
FIRST COMES
TENDERING & ESTIMATION
PLANNING
AUTO CAD & DESIGN
PROCUREMENT- PURCHASER
CONSTRUCTION/CONTRACTS MANAGER
PROJECT MANAGER-( ONE PROJECT MANAGER FOR EACH PROJECT IF THE PROJECT IS LARGE) OR PROJECT MANAGER FOR EACH DIVISION OF ACTIVITY.
SITE ENGINEERS ( EACH ACTIVITY ONE OR MORE)
SITE ACCOUNTANT/ COST ACCOUNTANT/ PROJECT ACCOUNTANT ( ONE FOR ALL OR TWO AS THE CASE MAY BE - PLUS ASSISTANTS)
SITE SUPERVISORS
FOREMAN
DRAFTSMAN/DRAUGHTSMAN -AUTO CAD, PRIMA VIERA
STORE-KEEPER
SAFETY OFFICER
WORKFORCE-MASON, CARPENTER, DRIVERS, FORK-LIFT OPERATORS, DUCT ERECTORS, PLUMBERS, FABRICATORS, WELDERS, ELECTRICIANS, AIR-CONDITIONING MECHANICS, AND GENERAL WORKERS-LIKE HELPERS AND OTHERS, OFFICE BOY/TEA BOY.
SECURITY PERSONNEL

Now you drawout a company organization chart showing who stands where and then you will come to know how to give line organization.

As per the line of work undertaken by the company category of peoples will be added and you can create a name for that.

Here comes:
Attendence Card: Normally I used to creat different colour of card for Major Labour Force like Plum/Elect/Civil etc. to know who this worker is w/o looking into the details, but on looking at the card itself we identify who he is.
Company Policy for attendence: What normally do is daily wages peoples get paid on days they work. So the incentive monthly is that if they put 26 days work (i.e.inclu. days if sunday or etc. worked, but not for daily o.t. hrs. they get) then they will be paid 2 days extra days as exgratia. Even if they put 25 days in a month (w/o o.t. daily basis ) they they are paid 1 day extra wages. So people are tuned to give attendence and our work wont suffer due to absent.
Yearly leave 15 days are paid. But here we take into account the total days worked in a year as 300 days is the per year working. So 15/300 ..then how many days they worked it will be computed they will be paid every year along with bonus. So absent is not paid at all.
Monthly paid permanent peoples leave are recorded and as per their agreement and company rules they are dealt with.
Generally:
Getting a Full Bio-Data of the people (old and new) to get filled in with details of their family and their contact numbers and also a nomination form is filled in by the employee is taken on record to meet with in the eventuality of something happened then who will be paid all their dues. This will ease the companies litigation and avoid more complication. This may be updated yearly to keep it up-to-date to note any change in their status. Also if any employee wishes to amend the status this can be done any time.
I think it would be useful to you..to explore it any further as you may desire.
Regards
Rama
Chief Accountant
Cont. Company

Great Content Mr. Rama.

I have a clarification that can benefit Revathi - Won't Auto cad and Draftsman come uner the planning department?

Hey Revathy why dont u prepare some thing like this and then get more input:
Like:

Planning Department
Head Planning
Sr. Planning Executive / Planning Executive
Draughtsman / draftman
Architects - (if u r not outsourcing this, I guess they come under planning - but pls check)

Likewise for each dept chart it out. U may get additional input for expert HRS in COntruction Industry.

Dear Mr. Rashid,
I respect your inputs and expertize. You should also note that when our superiors wants some work then we should do some spade work and go to them and discuss then only they can add some more poetential inputs. Begining is very very critical and I appreciate Ms. Ravathi's initiation in knowing the things which she is not wellversed, we as HR professional are very popular for our people orientation and we should support our friends who are in the same feternity instead of critisizing, critique is better than criticizm. I value your inputs saying that she should do the spade work with in their organization at the same time I also expect that you will support the people in future instead hurting.

Ms. Revathi - organogram need to be prepared as a whole. each and every site there may be people under different verticles, you should prepare a two way reporting structure ie., administratively all the people will be reporting to the site in-charge and functionally they will be reporting to the concerned HOD. Otherwise it will be difficult for the site in-charge to manage the operations as he / she will be responsible for Profit and loss a/c. of that particular site.
Eg: A HR / Finance & Accounts / Purchase etc people will be there in each site and for all day to day and for all administrative purposes will be reporting to the site in-charge and for all functional purposes they will be ( in dotted line ) will be reporting to the functional heads.
Pl. prepare the structure for one site and replicate the same for all the sites, this will become an SOP and an utmost clarity across organization.
I believe you are clear, pl. feel free to post your doubts till you get a clarity. Even you can obtain the contact numbers of the pople whom you feel resourceful, interact and get expertize. We all started our careers like this only and now we are able to give some inputs to the needy. Nobody in the world is 100% perfect and if any body feels he is a .........................
Thanks and regards - kameswarao

Ms.Rama,
Thanks for your detailed explanation.I am now almost clear with the functioning of a construction company.Thank you once again.

Regards
Revathi Pillai
Manager - HR
RMS India

Ms.Asha the reason why I am planning not to create a Planning department as of now is that ours is a growing company.There is no one who handles the planning part.So I am planning to develop the follwoing departments:
HR
Admin
Accounts
Finance
Commercial (which will include the materials and purchase)
Operations(which can include Site engineers, supervisors)
Business Development
Marketing
Customer Service(which will include Client service engineer)

However, the problem is with operation dept.as we have a factory also which has a factory manager.Is it sensible to include them in Operations or need a create a dept as Production?

And Thanks Mr.Kameswarao for your support as I was a bit upset by reading that posting.Anywaz, I m planning of not create a site-wise org chart as we Admin,Finance & purchase centralized.Also the labors are on a cotractual basis.So, i feel I need nt include them in the chart.
Please correct me if I am worng.

Regards
Revathi Pillai
Manager - HR
RMS India

Hi Revathy...

I would like to clarify. You had mentioned that it was a construction company.
The kind of set up that I worked with was for a promoter (u see here we outsource architects and labourers for a project) So there was no question of Factory Manager involved. May I know what exactly the plant is focusin on?

Like do u have construction materials too?

Can u explain what kind of service ur company provides? (this will help even others give better ideas)

HR & Admin can be one dept (Just a suggestion)
Finance can be one dept and accounts executive can come under that

If you have a seperate factory which produces construction material etc then it is a different activity and Factory manager is responsible for that factory only.
Factory manager is different.
I opine that instead of operations managers you should designate the chief of all projects as works manager & each project head as project manager.
Even though you have contract and casual labour working in sites, it will be easy if you have a structured organogram for each site.
Thanks and regards - kameswarao

Dear Revathi,

You can also develop a department called Supply Chain Management where the following division will be there:
1. Inventory (Store keepers/Store Asst/Inventory Controller/Stock, Material related activities)
2. Logistics (Fleet Manager/Fleet Admin/Transportation/Drivers/Service etc)
3.Product Availability (Material purchasing/Ordering/ - purchase related)
4. Project Division (Site engineers/Supervisors/project related/Customer care)

If you want to merge Logistics and Project together, you can form a Service Centre Department where all the logistics and project activities will be there.

BR
Jaleel
Dubai