Modern Construction Project Management, Second Edition

1.PRINCIPLES OF ORGANIZATIONAL STRUCTURES

PRINCIPLES OF ORGANIZATIONAL STRUCTURES Introduction An organizational structure involves a group of people among whom ther e are interaction , communicatio n an d coordination . Ther e i s usually a n objective which the organization aims to achieve under a set of constraints. For example, a contractor's site organization has the objective of completing the works assigned t o him, and the constraints are raw material supplies , labour supplies, finance and so on. There are three principal types of organizational structures: 1. projec t organizatio n 2. functiona l organizatio n 3. matri x organizatio n Project Organizatio n In a project organization , eac h member o f th e tea m i s responsible fo r a particular task . I t i s therefor e task-oriented . A n exampl e o f projec t organization i s a highway project (Fig . 1.1 ) whic h consist s of tunnelling , building and road works. 4 MODER N CONSTRUCTIO N PROJEC T MANAGEMEN T Foreman (tunnel) WD C n wo "33 & C/5 WD WD O E GENERAL FOREMA N r 1 I 1 c WD WD aS i c o U • Foreman (building) -H-rn same as LH.S. same as LH.S. Fig. 1.1 Exampl e of a project organization. This form of organization has the merit of simplicity — each person is clearly instructed in his duty and authority. The disadvantage is that it sometimes does not fully utilize the resources available for each task. Fo r example, the concreting gang attached to the tunnel section does not work in the building section even thought it is idle at times. The merits and demerits of a project organization will be further discusse d in section 4 of this chapter. 3. Functiona l Organizatio n In contrast to the project organization (which is task-oriented), a functiona l organization is specialist-oriented. Specialist s in each field are responsible for their own functions. An example of functional organizatio n is shown in Fig.1.2. PRINCIPLES OF ORGANIZATIONAL STRUCTURES 5 GEI GENERAL FOREMA N Foreman (Concreting) Foreman Forema n (Form work) (Steel ) Foreman (Labourers) Fig. 1.2 Exampl e of a functional organization. From th e organizatio n char t (Fi g 1.2) , on e can see that eac h forema n i s responsible for carrying out work within his own specialism, e.g. for concrete work, steel work and so on. Each specialist contributes to the constructio n of tunnel, building and road works. 6 MODER N CONSTRUCTION PROJECT MANAGEMENT 4. Advantage s an d Disadvantage s o f Projec t Organizatio n and Functional Organizatio n 4.1 A comparison of the characteristics of the two forms of organizations is shown in Table 1.1. Characteristics Project organizatio n • Branc h head s are generalists. • Suitabl e for works which mus t be completed i n a specific time. • Suitabl e for dynamic works . • Suitabl e for relatively smal l organizations. Functional organizatio n • Branc h heads are specialists. • Suitabl e for works which run from calendar year to calendar year . • Suitabl e for routine works. • Suitabl e for large organizations. Table 1.1 Compariso n of characteristics of project organizatio n and functional organization . 4.2 Ther e are some aspects in which the project organizatio n is better than the functional organization. They are shown in Table 1.2. PRINCIPLES OF ORGANIZATIONAL STRUCTURE S Advantages of project organizatio n over functional organizatio n Project organization • Fas t decision, due to simpl e and clear line s of duty an d responsibility. • Mor e innovative , sinc e problems are usually solve d on the spot or within a branch. • Ver y efficient i n achievin g specific target . Functional organizatio n • Bureaucratic , probabl y du e to protectionism betwee n specialist branches . • Les s innovative, sinc e functions ar e separate and problems mus t be referred to the relevant branches . • Les s efficient i n achievin g target. Table 1.2 Aspect s i n which projec t organizatio n i s more advantageou s than functional organization . 4.3 Ther e are also aspects in which the functional organizatio n is better than the project organization. They are shown in Table 1.3. Advantages of functional organizatio n over project organizatio n Project organization • Mor e expensive, becaus...