Ash Mathew
Recruitments, Training`
Rashidmusa
Compensation And Policy
Audnis
Chief Accountant
Amitd1511
Manager It/hr
+7 Others

Dear Seniors,
Earlier I used to work in an IT Company. I have newly joined as a HR Manager in a construction company where there was no HR Department.None of the processes are systematic here.There are only paper records.No soft copy of any important documents.

I am in the process of constructing the HR Department and make the processes systematic.I went through many postings in Cite HR and decided to start with preparing the hierarchy chart and preparing departments and assigning designations and employee codes.I have got the consent from my boss to move ahead with this.
However I need you help in this.

Question1 : As of now there are only accounts, admin,hr (after I joined), marketing departments here. However, there are site engineers, site supervisors,project engineers also.But I am unaware of what department they will belong to. Please suggest me what departments can be created for a construction company..
I have planned about Business Development and Customer Service.
But what about those people who are on site as I mentioned above?

Question2: Also how to assign employee code?Is there any system to follow?

I am loooking forward to your help as I am completely unaware of Construction field.

Regards
Revathi Pillai
Manager - HR
RMS India
From India, Pune

For question no 2 - You can give number starting from one based on the date of joining. Kavitha
From India, Madras
Hi Revathi,
For contruction u have following department:
Planning - u have planning head and executives
Quality - Quality head and executives
Materials and Purchase department
Customer Service Executive (this person does dfollow up on collection and interacts with existign customers frequently)
Marketing department
The project Head may come under the projects / ops dept
From India, Madras
Thanks a lot for your immediate responses.
But Asha I have a doubt that what about the site supervisors, store keepers etc.Which department for them?will they also be under operations?
Regards
Revathi Pillai
From India, Pune
They wil come under projects department,. Site Engineer, SIte supervisors.. all of them. That is they will report to the project head.
From India, Madras
Thanks alot Ms.Asha for your prompt reply.I will consider your points and create departments accordingly.
Also let me take the opportunity to tell you that you have been a very active member of this site.All you replies are sensible and logical.I really appreciate your contribution as it has helped me many a times.
Thanks once again.
Regards
Revathi Pillai
Manager -HR
RMS India
From India, Pune
Thanks Ms.Asha. But do keep on helping me as the construction of HR Department is a very complicated process which cannot be accomplished without the help of seniors like you all.
I also thank Ms. Kavita and Mr.Shijit for their prompt replies.
Regards
Revathi Pillai
Manager - HR
RMS India
From India, Pune
Hi Revathi,
You have already got valuable ideas above..just adding on ...an construction company can also have the following(self -explanatory)
to name a few:
  • civil department
  • architecture dept
  • project cost evaluation dept
  • administrations project
  • budget magagement
  • construction waste mgmnt
  • labor dept
  • safety&health dept
  • legal admin dept
  • Engg dept

From India, Mumbai
Thanks Ms.Kavita for your valuable input. A few of the departments which you have given is required in the future such as Safety and Health dept, Legal dept. Can you please explain me what is Labor dept?Is it related to labor grievances?
Regards
Revathi Pillai
Manager -HR
RMS India
From India, Pune
Yes Revathi, it would also cover the various Acts such as
  • Industrial Disputes Act
  • Minimum Wages Act
  • Workmen Compensation Act
  • Building & other construction welfare acts etc
In future you can also have an Training & Employment dept ..to meet the recruitment of skilled engg/workers for ur firm
From India, Mumbai
You can also distribute the project in to Mechanical ie like fabrication, designing and civil then it will be easy for the HODs for distribution and also the performance evaluation part. Ensure that a HOD should have not more than 7 - 8 people reporting.
Material supervisor and all comes under warehouse, you can also have purchase and the head for ware house and purchase may be a manager - materials or else you can have ware house manager and purchase manager seperately.
I believe your works might be at different locations then you require an administrative person to look in to their day to day activities.
The other areas a person for liasioning and for statutory compliances. Once you continue you may require to cover more areas accordingly you can add some more sections basing on the need.
Thanks and regards - kameswarao
From India, Hyderabad
Dear Mam,
I'm also working in Construction Company. When i joined, first i prepared master database of all the employees. I had sorted employee nos. based on their date of joining.
I maintain my MIS:-
1) Grade wise
2) Location wise
3) Department wise
Admin
Systems
Legal
Liason
Finance & Accounts
HR
Marketing & Business Development
Projects & Execution
Procurements & Contracts
Top Mgt
I had included other support staff in admin department only.
and in my opinion projects department consists of all the designations project managers, engineers, site supervisors etc. Only Tendering & Procurements may be considered as seperate department & may not be included in projects.
Regards,
Niraja
From India, Hyderabad
I am surprised to know that being HR Manager working in such responsible position you don't know even basic's of HR management and has to take shelter of novice trainees of Citehr. Do you think this internet base advise will work I bet you that this is impossible to implement because until you have proper understanding of business process and key core busienss verticles you cannot just create boxes as departments and decide what is fit into this boxes.
This is showing yoru inexperience baby. I have sympathy wit you. But you must first learn about business processes of construction industry and your organization structure then discuss with your key core department heads and arrive at final conclusion. Discussion in this forum is not solution. You will get solution from within your organization as every organization is unique and they own typical business model delegation of authority and span of control.
Rashid
From Saudi Arabia
I am surprised to know that being HR Manager working in such responsible position you don't know even basic's of HR management and has to take shelter of novice trainees of Citehr. Do you think this internet base advise will work I bet you that this is impossible to implement because until you have proper understanding of business process and key core busienss verticles you cannot just create boxes as departments and decide what is fit into this boxes.
This is showing yoru inexperience baby. I have sympathy wit you. But you must first learn about business processes of construction industry and your organization structure then discuss with your key core department heads and arrive at final conclusion. Discussion in this forum is not solution. You will get solution from within your organization as every organization is unique and they own typical business model delegation of authority and span of control.
Rashid :ph34r:
From Saudi Arabia
Dear All,
Can anybody help me out with some difficulty which i am facing while preparing the Operations department.Actually we have 2 to 3 sites and each site has site supervisors.site engineers,etc.Now how can i prepare the Operations dept?Shall i split on the basis of site?but if i do so then it will be a temporary one as sites will be closed and new sites will open...Please help...
Regards
Revathi Pillai
Manager -HR
RMS India
From India, Pune
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)

From India, Madras
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.
From Saudi Arabia
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
From Saudi Arabia
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.
From India, Madras
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
From India, Hyderabad
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
From India, Pune
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
From India, Pune
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
From India, Madras
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
From India, Hyderabad
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
From United Arab Emirates, Dubai
Ms.Asha basically our company provides construction material i.e. steel mainly..But recently it has started undertaking projects.i.e. we supply manpower also. Thats why we have a factory.i agree with Kraos suggestions, factory is a different entity.So I can create a department called production where all the factory ppl can come. and operations dept will include site ppl If its wrong then please rectify.
Regards
Revathi Pillai
Manager - HR
RMS India
From India, Pune
Dear Raveti,
First Congrulation for joining construction company. Its a very difficult to maintain the Hr of any construction company.
But Regarding your co. some deptt list belo
Pre Sales
Sales
Customer Care
Marketing
Media
Hr
Account
Material
Project
planning
surveyaor
Archetict
Interior Design
Admin
For different site wise
Same the code shd be grp/site/dept/no of employee
Thanks
Amit Jain
From India, Ghaziabad
Dear Revathy,
You need to confirm a few things before we work on one:
Pls let me know if you have the following ppl in the recent extended service for supply of manpower:
Site Engineer
Site Supervisor
Quantity Surveyor / estimator
Head / Manager - Projects
Quality Controler
Materials incharge
Manager - Purchase
Draftsman / Auto Cad / Draughts Man
Customer Service executive
the pls list out the positions in the Factory
There is a Factory Manager
pls list the others.
Once you give us the list of existing positions, we can do it easily!
PS: Make sure u give it seperately - i.e ppl in Factory and ppl in Projects.
From India, Madras
Hi Revathi,
Our seniors have aptly mentioned about various departments you can include in your organization.
I would like to answer your second question. For employee ID you can assign a 6-7 digit code. Usually, system / software are used.
I would suggest you to get some ERP package installed since you stating with HR department. This would be going beyond excels sheets.
ERP packages like peoplesoft has this delivered functionality of generating employee codes automatically and you can store and perform all realted activities for employee through system.
All the best!
From India
You can also form
Engineering Dept:
1. Planning Dept -
(-Manager - Planning
-Sr Engineer -Planning
-Jr Engineer -Planning
-Site Supervisor)
2 Contracts Dept
3. QA Dept
  • Purchase & Stores Dept
- Purchase
- Stores
  • Marketing & Sales Dept
-Marketing
- Sales
-Customer Care
6. Accounts
7. Administration
- Admin
- Security
8. HR
**About Employee ID: you can take 10 Digit Employee ID (Say 1000000001, 1000000002 …& so on)
-Store keepers you can put in stores Dept
- Site Supervisors you can put in Engineering Dept
From India, Pune
Hi Ash,
Thanks for your clarification;
Actually, A team is consits of Tech.Engineers, Draftsman, and Estimators; Because once a project tender is received it is verified by the Cont.Manager/Tech.Director, Chief Accountant/Finance Manager and Auto Cad Draftsman. Please remember that "Draftsman" is the trade name common, but just because drawings are being done from manual to computerized "Autocad" it is defined as 'Auto Cad' draftsman.
So at the H.O. or Planning Department level there will be Draftsman(s) to study the project, knowing the technical details of the projects, and it will be discussed with all the peoples at the H.O. level. Even after Tender and obtaining the job constantly it is reviewed during progress of the work and for estimation of procurements and additional work involved with the same basic infrastruction available in the project; eg. additional floors, or additonal pipe lines or additonal fixtures etc.
So in a given one unit i.e. one project there will be Project Manager, Project Engineers,Project Accountant, Design and Quantity surveyor, Admn. Assistant & H.R., Site Engineers, Site supervisors, foreman, other trade workers, Drivers for operations like driving trucks, forklift, cranes and other mobile equipments. plus workers-helpers.
Normally each project the entire operations and allotment of work is done by the Admn.Assistant HR with the instrucitons of Project Manger and he only overseas it. He keep track of attendance for pay roll and their leave and absentism and arranging replacements etc. if any one go on leave. If any additional manpower is required it may be sought either thru H.O. from other projects or hired temperoarity directly at site for short duration.
Like wise legal aspects of Professional Tax, PF, ESIC and Contract Labour Act. and Minimum Wages act. and Workmens Compensation Act. and taking care of all Insurance for works and Medical for all stafs come under the H.R.
The subject is very very large and deep deep if we start discussing. But once you strart fitting each peg then things will fit into order.
Thanks everyone whoever has read my details given coments.
Regards,
Mr.Rama
Chief Accountant
Cont.Co.


From Saudi Arabia
Hi Ms Revathi,
Refering to your query titled "What departments shall I create?? ", I want to mention that I am going through the same situation wherein I have accepted this challenge of initiating an HR department.The only difference is of industry, as I am working for a trading company in Paper Industry.
So, please help me with your experiences and learning as you must have accomplished some of your goals and I have started a month back.
My questions are exactly the same.
Waiting for your reply.
My email id is
So, if you can mail me some material regarding the same, it will be of great help.
I also thank Ms. Asha for her inputs and expect the same guidance in my case.
Regards,
Gunjan
From India, Mumbai
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