Group Members Muhammad Zohair B-15086

Zohaib Hassan B-15077

Mubasher Rasheed B-15107

Comparison of Various Organizational

Structures Used in Construction Industry

Organizational Structure:

is about how to use one of the basic resource people , and how to facilitate overcoming the communication barriers at organizational interfaces (Enshassi 1997)

Need of an Organizational Structure Structure gives members clear

guidelines for how to proceed. Structure binds members together. Structure in any organization is

inevitable.

Types OF Organization Structures

Functional Organization Structure

Project-type Organization Structure

Matrix Organization Structure

Functional Organization Structure

Most Common type Of Organizational Structure.

Work Best for Small organizations. Organization is grouped based on

specialization by functional areas. Limited authority. Limited Career Path.

Functional Organizational Structure

Functional Organizational Structure

ADVANTAGES

1. It has high degrees of specialization.2. Coordination is established3. Managerial Efficiency is increased4. Minimal Duplication of Efforts5. Training is facilitated6. Equal Weight age to All Function

Functional Organizational Structure

DISADVANTAGES1. Slow response time.2. Ignorance of Organizational Objectives.3. Difficulty in Interdepartmental

Coordination4. Hurdle in Complete Development.5. Conflict of Interest.

Project-type Organizational Structure Each project is operated like a mini

company. The project type organization is well

positioned to be highly responsive to the project objectives and customer needs.

A project type organization can be cost-inefficient.

In project type organization resources are not shared.

Each project team tends to be isolated. There may be some company wide

support functions that serve all the projects.

Project-type Organizational Structure In project type organization detailed and

accurate planning and effective control system are required.

Project organization structures are primary in companies.

Project organization structures are prevalent in construction.

Project managers have a high level of authority to manage and control the project resources.

personnel are specifically assigned to the project and report directly to the project manager.

The project manager is responsible for the performance appraisal and career progression of all project team members while on the project.

Project-type Organizational Structure

Project-type Organizational Structure ADVANTAGES1. The project manager have complete

authority and maximum control over the project.

2. The lines of Communication are strong and Open.

3. The system is highly flexible and capable of rapid reaction times.

4. The appraisal of employees based upon the performance of the project.

5. The focus of the resources is towards the achievement of the organization goals.

Project-type Organizational Structure DISADVANTAGES1. Duplication of efforts.2. Difficult to find a project manager

having both general management expertise and diverse functional expertise.

3. Administrative duties of project manage may be demanding and job could be quite stressful.

4. Due to fear of impediments in career growth some employees may not prefer to leave their department.

Matrix Organizational Structure Introduction

1. It’s a typical organizational structure.2. It’s a combination of both functional and

project type organizational structure.3. In this type skills of the employees are shared

between functional department and project management team as needed.

4. Generally employees work under two bosses5. Authority of functional manager flow

downward 6. Authority of the project manager flows

sideways.

Matrix Organizational Structure An organizational form in which there are multiple

lines of authority and some individuals report to at least two managers.

This structure exist in large multi projects organizations.

Employees are considered to be shared resources between the project team and functional units.

Recognize the dynamic nature of the project and allows for the changing requirements.

Matrix Organizational Structure

Matrix Organizational Structure Types OF Matrix organizational

Structure

1. Strong Matrix

2. Balanced Matrix

3. Weak Matrix

Matrix Organizational Structure Strong Matrix :1. Most authority and power lies with the

project manager.2. The project manager has a full time

role. Balanced Matrix:1. Power is shared between functional

manager and project manager.2. Project manager has full time role,

he has only part time project.

Matrix Organizational Structure Weak Matrix:1. Project manager has a part time role

with very limited power and authority.

2. This structure is very close to the functional organization structure.

3. Functional manager controls the project budget.

Matrix Organizational Structure ADVANTAGES1. Facilitate quick response to changes,

Conflicts and project needs.2. Flexibility of establishing independent

policies and procedures of each project.3. Project manager has authority to

commit company resources.4. Project team can get the highly skilled

personnel they require.5. People can be selected based on skills

and suitability.

Matrix Organizational StructureDISADVANTAGES1. Initially, more effort and time is needed

to define policies ,procedures, responsibilities and authority relationship.

2. Employees may have to report to two bosses which can add confusion and conflicts may arise.

3. Sometimes unclear priorities may also confuse the employees.