DE LEON, DWIGHT KENNETH H.

MODULE 2, COURSEWORK #3
2019100954 CE-3
CE175-1C, E01

Coursework #3

1. What is an organizational structure and how it is important in the operations of the

construction firm and to the construction project?

Organizational structure establishes the formal reporting and operational

responsibilities and links inside the company, which dictates how workflows through a
corporation. The organizational chart for a construction firm provides a straightforward
graphic representation of the functions and hierarchy inside the company. Although
overlap is very frequent, many construction organizations seek to separate positions into
regions or functions that are in charge of a specified set of duties.

2. What are the factors considered in building an organizational structure?

Clarity, understanding, decentralization, stability, and adaptability are the essential

characteristics to consider while developing an organizational structure.

• Clarity - When a company maintains clarity, all of its personnel are fully aware of every
facet of their roles. In other words, both employees and managers should be aware of
the unique activities needed to accomplish each employee's goals. The reporting
structure and the information sources used during the decision-making process should
be completely transparent.
• Understanding - When all employees are aware of their place in the organization's
larger scheme, understanding is attained. This knowledge heavily relies on the
infrastructure of the organization, which includes its physical, behavioral, and cultural
components. The everyday activities of employees and the underlying company
culture, which shapes both their actions and emotions, must both be considered by
management.
 • Decentralization - All conversations and decisions in a centralized organization are
made by top-level management alone, with no involvement from lower-level
employees. Conversations between individuals who handle the day-to-day operations
of the company are hampered by centralization. Decentralization is important because
it fosters free communication between employees at all levels and encourages
information exchange that is impossible in centralized organizations. One effective
method of decentralizing decision-making within an organization is the effective
delegation of authority.
• Stability / Adaptability - A well-structured company actively searches for and responds
to environmental changes. At the same time, the organization must be capable of
preserving stability amid turbulent situations. The ties that can only be made between
individuals through organizational procedures allow for this simultaneous stability and
adaptability. Long-term performance maintenance is dependent on the daily growth of
an organization's culture and structure

3. Does improvement/revision/updating of organizational structure necessary? Discuss.

To implement a new strategy is the primary justification for corporate restructuring.

A strategy lays forth a plan for how a company will use its key resources to achieve its
strategic goals. To make sure that the two aspects continue to support one another when
you change your approach, you frequently need to modify your organizational structure.
For instance, this may occur when you:

• transition from a start-up to a scale-up company

• take on a partner, or introduce change in management
• move into new product lines
• prepare your business for growth
• expand your business overseas

Knowing when an organizational shift is approaching will help you get ready for it and
put procedures in place that will ensure the expansion of your company. You can find
prospective adjustments by analyzing your strengths and limitations. For strategic analysis,
you can utilize the SWOT, PESTLE, and other models.
4. Prepare a sample organizational structure of the following:

a) Construction Company

b) Project (Construction of a 45-storey Mixed-Use Building/Tower)