Organization & Delegation

CON4157@VTC2021 CC BY-NC-ND P. 1
 Typical Organization Chart

CON4157@VTC2021 CC BY-NC-ND P. 2
 Head Office Document and
Human Resource Material Supply
Administration Plants Manager Contract Manager Safety Manager Quality Control
Manager Manager
Manager Manager

Hardware Software
Mechanics Technical Support Planning Qualtiy Control Document
General Manager HR Officer 02 HR Officer 01 Site Manager Senior QS Safety Officer Purchasing Purchasing
Officer Engineer Engineer Officer Control Officer
Officer Officer

Assistant Assistant Project

Admin. clerk 02 Fitter 02 Fitter 01 Works Supervisor QS (Team 1) QS (Team 2) Safety Supervisor
Engineer Engineer Co-ordinator 02

Project
Admin. clerk 01 Trainee Formen Trainee Trainee
Co-ordinator 01

Labors

CON4157@VTC2021 CC BY-NC-ND P. 3
 Defining Organizational Structure
◼ Organizing – the process of creating an organization’s
structure.
◼ Organizational structure – the formal framework by which
job tasks are divided, grouped, and coordinated.
◼ Organizational design – process of developing or changing
an organization’s structure which involves six key elements:
-
➢ Work specification
➢ Departmentalization
➢ Chain of command
➢ Span of control
➢ Centralization and decentralization
➢ Formalization
CON4157@VTC2021 CC BY-NC-ND P. 4
 Defining Organizational Structure
(Example)
◼ Our Procurement Section of Procurement &
Administration Department is responsible for the
management of a wide range of purchasing
activities which help to sustain the Club's daily
operations and major community development
projects.

CON4157@VTC2021 CC BY-NC-ND P. 5
 Defining Organizational Structure
(Example)
Procurement Section
◼You will carry out pre-contract Quantity Surveyor's duties for all
procurement related functions for both new construction and
maintenance projects
◼assist in development appraisal, establishment of contract strategies
and procurement alternatives
◼assist in the pre-qualification and selection of consultant /
contractor with an optimum balance between technical competence
and tender price and implementation of proper control procedures to
ensure full compliance with established guidelines and policies
◼perform cost data analysis including the upkeep of cost data bank

CON4157@VTC2021 CC BY-NC-ND P. 6
 Purposes of Organizing
◼ Divides work to be done into specific jobs and
departments.
◼ Assigns tasks and responsibilities associated with
individual jobs.
◼ Coordinates diverse organization tasks.
◼ Clusters jobs into units.
◼ Establishes relationships among individuals, groups,
and departments.
◼ Establishes formal lines of authority.
◼ Allocates and deploys organizational resources.

CON4157@VTC2021 CC BY-NC-ND P. 7
 Work Specialization
◼ The degree to which tasks in the organization
are divided into separate jobs with each step
completed by a different person.
◼ Overspecialization can result in human
diseconomies from boredom, fatigue, stress,
poor quality, increased absenteeism, and higher
turnover.

CON4157@VTC2021 CC BY-NC-ND P. 8
 Departmentalization by Type
◼ The basis by which jobs are grouped together
➢ Functional – grouping jobs by functions performed
➢ Product – grouping jobs by product line
➢ Geographical – grouping jobs on the basis of
geography

CON4157@VTC2021 CC BY-NC-ND P. 9
 Functional Departmentalization

◼ Advantages
➢ Efficiencies from putting together similar specialties and people with
common skills, knowledge, and orientations
➢ Coordination within functional area

➢ In-depth specialization

◼ Disadvantages
➢ Poor communication across functional areas

➢ Limited view of organizational goals

CON4157@VTC2021 CC BY-NC-ND P. 10
 Chain of Command
◼ The continuous line of authority that extends
from upper levels of an organization to the
lowest levels of the organization and clarifies
who reports to who.

CON4157@VTC2021 CC BY-NC-ND P. 11
 Chain of Command

◼ Delegation – is the process through which a

manager allocates work to subordinates. In
general, it involves 3 steps:
➢ the assignment responsibility
➢ the granting authority
➢ the creative accountability

CON4157@VTC2021 CC BY-NC-ND P. 12
 Delegation
◼ Responsibility
➢ The duty to perform an assigned task
◼ Authority
➢ The power to make the decisions necessary to
complete the task
◼ Accountability
➢ The obligation employees have to their manager
for the successful completion of the assigned
task
CON4157@VTC2021 CC BY-NC-ND P. 13
 Advantages of Delegation
◼ Allows supervisor to do other more important tasks
◼ Provides training and experience for subordinates
◼ Enhances problem-solving capabilities of staff
◼ Provides a temporary stand-in for supervisor
◼ Keep things going when supervisor is absent
◼ Gets fresh ideas and viewpoints
◼ Gives subordinates a feeling of importance and
participation

CON4157@VTC2021 CC BY-NC-ND P. 14
 Delegation
◼ Here are some responsibilities he should not delegate:
➢ Tasks with authority restriction
➢ Discipline: the power to discipline or reprimand an
individual in a work group is the very backbone of
supervisory authority
➢ Maintaining morale: the leadership aspect of a supervisor is
directly involved in maintaining the constructive attitudes
and spirit of the work group. Deciding what level of group
attitude is acceptable is a matter for the supervisor’s
judgment
➢ Personal problems of subordinate: a supervisor should not
assign a subordinate to deal with the personal problems of
another subordinate

CON4157@VTC2021 CC BY-NC-ND P. 15
 Span of Control
◼ Number of employees that a manager can effectively
and efficiently manage
◼ Determines the number of levels and managers in an
organization
◼ The wider the span, the more efficient the organization
◼ Width of span is affected by:
➢ Skills and abilities of employees
➢ Complexity of tasks performed
➢ Availability of standardized procedures
➢ Characteristics of the work being done
CON4157@VTC2021 CC BY-NC-ND P. 16
 Span of Control

Flat Organization

Tall Organization
CON4157@VTC2021 CC BY-NC-ND P. 17
 Span of Control

CON4157@VTC2021 CC BY-NC-ND P. 18
 Span of Control

◼ When several employees perform either the

same simple task or a group of interrelated
tasks, ??? span of control is possible and
desirable.
◼ When jobs are more diversified or prone to
change, ??? span of control is preferable.

CON4157@VTC2021 CC BY-NC-ND P. 19
 Centralization & Decentralization
◼ Centralization
➢ The degree to which decision making is
concentrated at a single point in the
organization
➢ Top-level managers make decisions with
little input from subordinates in a
centralized organization
➢ Companies with centralized authority
typically require multiple layers of
management and thus tall organizational
structures
CON4157@VTC2021 CC BY-NC-ND P. 20
 Centralization & Decentralization
◼ Decentralization
➢ The degree to which decisions are made
by lower-level employees
➢ Decentralized firms tend to have relatively
fewer layers of management, resulting in a
flat organizational structure

CON4157@VTC2021 CC BY-NC-ND P. 21
 Factors that Influence the Amount of
Centralization & Decentralization

CON4157@VTC2021 CC BY-NC-ND P. 22
 Formalization
◼ The degree to which jobs within the
organization are standardized and the extent to
which employee behaviour is guided by rules
and procedures.
➢ Highly formalized jobs offer little discretion over
what is to be done.
➢ Low formalization means fewer constraints on
how employees do their work.

CON4157@VTC2021 CC BY-NC-ND P. 23
 Organizational Design Decisions
◼ Mechanistic Organization
➢ Rigidly and tightly controlled structure
➢ Tries to minimize the impact of differing human traits
➢ Most large organizations have some mechanistic
characteristics
◼ Organic Organization
➢ Highly adaptive and flexible structure
➢ Permits organization to change when the need arises
➢ Employees are highly trained and empowered to handle
diverse job activities
➢ Minimal formal rules and little direct supervision
CON4157@VTC2021 CC BY-NC-ND P. 24
Mechanistic versus Organic Organization

• High specialization • Cross-functional teams

• Rigid departmentalization
• Clear chain of command
• Narrow spans of control
• Centralization
• High formalization
• Cross-hierarchical teams
• Free flow of information
• Wide spans of control
• Decentralization
• Low formalization

CON4157@VTC2021 CC BY-NC-ND P. 25
 Common Organizational Designs
◼ Project Organization
➢ Each member of the team is
responsible for a particular
task (task-oriented).

➢ Merit – simplicity and each

person is clearly instructed
in his duty and authority.
➢ Demerit – does not fully
utilize the resources
available for each task.
CON4157@VTC2021 CC BY-NC-ND P. 26
 Common Organizational Designs
◼ Functional Organization
➢ It is specialist-oriented.

Specialists in each field are

responsible for their own
functions
➢ Merit – less wastage in
utilizing resources
➢ Demerit – bureaucratic due to

protectionism between
specialist branches

CON4157@VTC2021 CC BY-NC-ND P. 27
 Common Organizational Designs
◼ Matrix Organization
➢ Combination of

project and functional

organization
➢ Merit – optimize the
efficiency of an
organization
➢ Demerit – one person
may work under two
bosses
CON4157@VTC2021 CC BY-NC-ND P. 28
 Site Organization Chart

Source from: The Project Management Institute PMBoK® Guide provides examples
of many of the types of breakdown structures.
CON4157@VTC2021 CC BY-NC-ND P. 29
 END

CON4157@VTC2021 CC BY-NC-ND P. 30
Tutorial Group Exercise
Aims: To build up the mind of organization structure and
the related personnel and their scopes.
Objective: To understand the concept of organization
structure and the roles of stakeholders within construction
industry.

Student to form a group in 4 – 5 persons, find a diagram of

organization from internet and submit onto Moodle within
a limited time. Individual groupmate to present what they
know and share what could be identified by them.

CON4157@VTC2021 CC BY-NC-ND P. 31
Each group to find an organization chart from the
internet and explain what the techniques have
been observed on your choice.
Duplication is not accepted. So please check with
the lecturer for this.

CON4157@VTC2021 CC BY-NC-ND P. 32