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Construction Project Organization

The document discusses different types of organizational structures for construction projects including functional, project-based, and matrix structures. It outlines the key characteristics of each type as well as their advantages and disadvantages.

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Rica Jewel Vista
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72 views2 pages

Construction Project Organization

The document discusses different types of organizational structures for construction projects including functional, project-based, and matrix structures. It outlines the key characteristics of each type as well as their advantages and disadvantages.

Uploaded by

Rica Jewel Vista
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Construction Project Organization

What is an Organization?
When two or more people work together to achieve a group result, it is an organization. After the objectives of
an organization are established, the functions that must be performed are determined. Personnel requirements are assessed
and the physical resources needed to accomplish the objectives determined.
1. Construction Project Organization
Project organization is the structure of the project. It is created separately, with specialists and workers from
various departments. These personnel work under the project manager. Project organizations is a process. It provides the
arrangement for decisions on how to realize a project.
2. Types of Organizational Structure
Functional organizational structure
The functional organization structure helps organizations run their business and earn profit. This type of structure suits
organizations intended to produce some product or service on a continuous basis.
Here, employees feel secure, perform well and tend to be highly skilled. The project manager doesn’t have any
role in functional organization, and even if he exists, his role will very limited and he will be known as either the
expediter or coordinator.
3. Advantages and Disadvantages
The following are a few benefits of the functional organization structure:
o Employees are grouped as per their knowledge and skills.

o Employees are very skilled and efficient

o Their role and responsibility is fixed

o The hierarchy is very clear, and employees don’t have to report to multiple bosses.

o Employees feel secure

o Employees have a clear career growth path.

o Within the department, cooperation and communication is excellent.

The following are a few disadvantages of the functional organization structure:


o Employees may feel bored due to the monotonous

o If the performance appraisal system is not managed properly

o The cost of high skilled employee is higher.

o The departments have a self-centered mentality.

o Communication is not good among the departments

o Employees may have little concerns and knowledge about anything happening outside their department.

o The functional structure is rigid

o Due to bureaucratic hierarchy

o Generally the functional manager makes decisions autocratically without consulting the team members.

o When the organization becomes larger, functional areas can become difficult to manage due to their size.

o Functional departments may be distracted by their own goals

Project-based Organizational Structure

- refers to the creation of an independent project team, the team’s management is separated from the
parent organization’s other units, have their own technical staff and management, enterprise assigns
certain resources to project team, and grant project manager of the largest free implementation of the
project.
Advantages
 In a project-based organizational structure, employees are assigned to projects and report to the project manager.
The project manager conducts performance appraisals and prepares career development plans for project team
members. This improves employee loyalty to project goals.
 Moreover, because the project manager has direct control and authority over project operations, flexibility and
response time to changing circumstances improve.
Disadvantages
 Without devising procedures to share knowledge between projects, learning in the company suffers. Projects need
their own resources and expertise; as a result, duplication of resources is another problem with project-based
organization. Additionally, when personnel keep moving from one project to another, professional growth and
career continuity of employees suffer. Managers should strive to clarify the contribution of the project to the
overall mission of the company to avoid ambiguity for employees
Matrix Organizational Structure

- facilitates the horizontal flow of skills and information. It is used mainly in the management of large
projects or product development processes, drawing employees form different functional disciplines
for assignment to a team without removing them from their respective positions.
Advantages
o Better condition and control

o Adaptable to dynamic environment

o Effective utilization of resources

o Particular management

o Sufficient time for top management

o Excellence in inter disciplinary specialization

o Development of teamwork

Disadvantages
o Violation of unity of command

o Costly structure

o Problem of overspecialization

o Difficult to balance

o Feeling of insecurity

o Lack of white consideration

Prepared by:
Sebanes, Mary Rose

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