Professional Documents
Culture Documents
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Typical Organization Chart
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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
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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.
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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
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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.
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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.
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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
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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
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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.
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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
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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
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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
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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
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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
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Span of Control
Flat Organization
Tall Organization
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Span of Control
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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.
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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
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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
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Factors that Influence the Amount of
Centralization & Decentralization
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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.
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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
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Mechanistic versus Organic Organization
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Common Organizational Designs
Project Organization
Each member of the team is
responsible for a particular
task (task-oriented).
utilizing resources
Demerit – bureaucratic due to
protectionism between
specialist branches
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Common Organizational Designs
Matrix Organization
Combination of project
and functional
organization
Merit – optimize the
efficiency of an
organization
Demerit – one person
Source from: The Project Management Institute PMBoK® Guide provides examples
of many of the types of breakdown structures.
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END
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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.
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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.
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