ORGANIZATION

DEFINITION

CONSTRUCTION MANAGEMENT (CM)

RECAP
The management and control of
the construction phase of a project

is the art and science of

handling construction projects
 CONSTRUCTION MANAGEMENT

PURPOSE OF CONSTRUCTION MANAGEMENT

• is to control the quality of a project's scope, time /
delivery and cost—sometimes referred to as a
project management triangle or "triple constraints"

RECAP
 SPP DOC. 204-B

CONSTRUCTION MANAGEMENT SERVICES

QUALIFICATIONS
The Construction Manager may be an individual or a firm. RECAP
The individual or the principal of the firm
must be a State-regulated professional,
preferably an Architect with managerial
capabilities and extensive experience in
the field of construction.

The Architect must be a Registered and

Licensed Architects (RLA), with an
updated professional identification card
and must be a member in good standing
of the Integrated and Accredited
Professional Organization of Architects
(IAPOA).
PRE- REQUISITES : BUILDING TECHNOLOGY 5
PROFESSIONAL PRACTICE 3
RECAP
COURSE DESCRIPTION:
It is about the methodologies & tools necessary for each
aspect of the construction project life-cycle broken into
organizing, planning, monitoring & controlling as well as the
theories upon which these are built.

Students will learn about cost & risk control,

developing & applying policies & procedures as well as
subcontractor management, purchasing & project financing.
AR 492A

CONSTRUCTION
MANAGEMENT
 DEFINITION

ORGANIZATION:
• or organisation is an entity—such as
a company, an institution, or an association—
comprising one or more people and having a
particular purpose

• refers to a collection of people, who are

involved in pursuing defined objectives

• A group of individuals who are cooperating

willingly and effectively for a common goal.
 ORGANIZATION

STRUCTURAL ELEMENTS of an ORGANIZATION:

Men: refers to the managerial and non-managerial
personnel employed in an organization
Men
Materials: represent the physical raw materials and
intermediate products (semi-finished goods ) which
are converted and/or assembled into finished
products with the help of certain processes and
Money Materials technology.
5 M’s of
Machine: are the equipment used to process the
Management materials into finished or semi-finished products.

Methods: refer to the normal and prescribed ways of

doing things various operations are performed
Method Machine according to certain systems and procedures.

Money: is the most critical and all purpose resource

because it is used to acquire or hire other resources.
 ORGANIZATIONAL STRUCTURE VS ORGANIZATIONAL CHART

ORGANIZATIONAL STRUCTURE
Board of Directors
• Responsible for some key decisions on investment and
strategies for the overall company.

General Manager
• Set outs company’s mid-long-term development
strategy and management plan and monitor business
implementation.

Financial Department
• Responsible for the company’s daily financial
accounting.

System Integration Department

• Responsible for the specific implementation in terms of
• is a system that outlines how certain existing project book.

activities are directed in order to Personnel Administration Department

• Responsible for employee rating and recruitment.
achieve the goals of an organization Sales & Marketing Department
• Formulates and carry outs the promotion plan.

• These activities can include rules, Technology Department

• Responsible for product’s installation, debugging and
roles, and responsibilities. maintenance.
 ORGANIZATIONAL STRUCTURE VS ORGANIZATIONAL CHART

ORGANIZATIONAL CHART:

• also called organigram,

organogram, or
organizational breakdown
structure (OBS)

• is a diagram that shows the

structure of an organization
and the relationships and
relative ranks of its parts
and positions/jobs
 ORGANIZATION STRUCTURAL VS ORGANIZATIONAL CHART

Key Differences Between an ORGANIZATIONAL STRUCTURE

and an ORG CHART
Organizational structure is designed around the functions a business performs (e.g., sales,
marketing, finance, engineering, etc.).

An org chart is built around people and titles.

Organizational structure defines the purpose, accountabilities, and key performance

indicators (KPIs) for each business function and role.

An org chart shows each person’s job title and may include HR stuff like job requirements.

Once correctly defined, a structure changes infrequently—for example, when there’s a

change in strategy like a new product initiative or a move up to a new stage in the execution
lifecycle.

An org chart needs to be updated frequently as people come and go. It’s out of date almost
the minute it’s created.
 ORGANIZATIONAL STRUCTURE VS ORGANIZATIONAL CHART

Key Differences Between an ORGANIZATIONAL STRUCTURE

and an ORG CHART

Organizational Function-centric Purpose, Infrequent,

Structure accountabilities, changes with
KPIs (Key strategy
Performance
Indicators)
Org Chart People-centric Titles, job Frequent,
descriptions, HR changes with
stuff people

To repeat, you don’t need an org chart to scale your business, but you
do need a well-designed organizational structure.
 ORGANIZATIONAL CHART

PURPOSE OF THE ORGANIZATIONAL CHART:

• show the major work units that make up the business

• allow employees to identify which unit they are affiliated

with, how it relates to other units, and to whom they are
accountable, and

• identify lines of authority and formal communication

within the organization
 ORGANIZATIONAL STRUCTURE

MAJOR ELEMENTS OF ORGANIZATIONAL STRUCTURES:

Distributions of functions. The
functions to be performed, the groupings
of functions, & the vertical & horizontal
task relationships among functions.

Vertical & horizontal authority

relationships. Who are the authority to
do what

Communication & decision processes.

The manner in which formal decisions are
made & by whom.

Policies. The decision, rules & guidelines

established.
7 TYPES OF ORGANIZATIONAL STRUCTURES:

Functional Horizontal or flat

1 Hierarchical 2 3 4 Divisional
org structure org structure org structure org structures
(market-based, product-based,
geographic)

5 Matrix 6 Team-based 7 Network

org structure org structure org structure
 TYPES OF ORGANIZATIONAL STRUCTURES

1 HIERARCHICAL ORG STRUCTURE

• a pyramid-shaped organizational chart

• most common type of organizational

structure

• the chain of command goes from the

top (e.g., the CEO or manager) down
(e.g., entry-level and low-level
employees), and each employee has a
supervisor
 TYPES OF ORGANIZATIONAL STRUCTURES

1 HIERARCHICAL ORG STRUCTURE

PROS
• Better defines levels of authority and responsibility
• Shows who each person reports to or who to talk to about specific projects
• Motivates employees with clear career paths and chances for promotion
• Gives each employee a specialty
• Creates camaraderie between employees within the same department

CONS
• Can slow down innovation or important changes due to increased
bureaucracy
• Can cause employees to act in interest of the department instead of the
company as a whole
• Can make lower-level employees feel like they have less ownership and can’t
express their ideas for the company
 TYPES OF ORGANIZATIONAL STRUCTURES

2 FUNCTIONAL ORG STRUCTURE

• starts with positions with the highest levels of responsibility at the top and
goes down from there

• employees are organized according to their specific skills and their

corresponding function in the company

• Each separate department is managed independently.

 TYPES OF ORGANIZATIONAL STRUCTURES

2 FUNCTIONAL ORG STRUCTURE

PROS
• Allows employees to focus on their role
• Encourages specialization
• Help teams and departments feel self-determined
• Is easily scalable in any sized company

CONS
• Can create silos within an organization
• Hampers interdepartmental communication
• Obscures processes and strategies for different markets or products in a company
 TYPES OF ORGANIZATIONAL STRUCTURES

3 HORIZONTAL OR FLAT ORG STRUCTURE

• fits companies with few levels between upper management and
staff-level employees

• Many start-up businesses use a horizontal org structure

before they grow large enough to build out different departments,
but some organizations maintain this structure since it
encourages less supervision and more involvement from all
employees.
 TYPES OF ORGANIZATIONAL STRUCTURES

3 HORIZONTAL OR FLAT ORG STRUCTURE

PROS
• Gives employees more responsibility
• Fosters more open communication
• Improves coordination and speed of implementing new ideas

CONS
• Can create confusion since employees do not have a clear supervisor to
report to
• Can produce employees with more generalized skills and knowledge
• Can be difficult to maintain once the company grows beyond start-up status
 TYPES OF ORGANIZATIONAL STRUCTURES

4 DIVISIONAL ORG STRUCTURE

In divisional organizational structures, a company’s divisions have

control over their own resources, essentially operating like their
own company within the larger organization. Each division can
have its own marketing team, sales team, IT team, etc. This
structure works well for large companies as it empowers the
various divisions to make decisions without everyone having to
report to just a few executives.

Depending on your organization’s focus, there are a few

variations to consider.
 TYPES OF ORGANIZATIONAL STRUCTURES

4 DIVISIONAL ORG STRUCTURE

TYPES OF DIVISIONAL ORG STRUCTURE
MARKET-BASED DIVISIONAL ORG STRUCTURE
• Divisions are separated by market, industry, or customer type.
• A large consumer goods company, like Target or Walmart, might separate its durable goods (clothing,
electronics, furniture, etc.) from its food or logistics divisions.
 TYPES OF ORGANIZATIONAL STRUCTURES

4 DIVISIONAL ORG STRUCTURE

TYPES OF DIVISIONAL ORG STRUCTURE

PRODUCT-BASED DIVISIONAL
ORG STRUCTURE

• Divisions are separated by

product line.

• For example, a tech company

might have a division dedicated
to its cloud offerings, while the
rest of the divisions focus on the
different software offerings—
e.g., Adobe and its creative
suite of Illustrator, Photoshop,
InDesign, etc.
 TYPES OF ORGANIZATIONAL STRUCTURES

4 DIVISIONAL ORG STRUCTURE

TYPES OF DIVISIONAL ORG STRUCTURE

GEOGRAPHIC DIVISIONAL
ORG STRUCTURE

• Divisions are separated by region,

territories, or districts, offering more
effective localization and logistics.

• Companies might establish satellite

offices across the country or the globe
in order to stay close to their
customers.
 TYPES OF ORGANIZATIONAL STRUCTURES

4 DIVISIONAL ORG STRUCTURE

PROS
• Helps large companies stay flexible
• Allows for a quicker response to industry changes or customer needs
• Promotes independence, autonomy, and a customized approach

CONS
• Can easily lead to duplicate resources
• Can mean muddled or insufficient communication between the
headquarters and its divisions
• Can result in a company competing with itself
 TYPES OF ORGANIZATIONAL STRUCTURES

5 MATRIX ORG STRUCTURE

• looks like a grid, and it shows cross-

functional teams that form for
special projects

• For example,
an engineer may regularly
belong to the engineering
department (led by an
engineering director) but work
on a temporary project (led by a
project manager). The
matrix org chart accounts for
both of these roles and
reporting relationships.
 TYPES OF ORGANIZATIONAL STRUCTURES

5 MATRIX ORG STRUCTURE

PROS
• Allows supervisors to easily choose individuals by the needs of a project
• Gives a more dynamic view of the organization
• Encourages employees to use their skills in various capacities aside from their
original roles

CONS
• Presents a conflict between department managers and project managers
• Can change more frequently than other organizational chart types
 TYPES OF ORGANIZATIONAL STRUCTURES

6 TEAM-BASED ORG STRUCTURE

• are made of teams working towards a common goal while working on
their individual tasks

• is meant to disrupt the traditional hierarchy, focusing more on

problem-solving, cooperation, and giving employees more control
 TYPES OF ORGANIZATIONAL STRUCTURES

6 TEAM-BASED ORG STRUCTURE

PROS
• Increases productivity, performance, and transparency by breaking down silo
mentality
• Promotes a growth mindset
• Changes the traditional career models by getting people to move laterally
• Values experience rather than seniority
• Requires minimal management
• Fits well with agile companies with Scrum or tiger teams

CONS
• Goes against many companies’ natural inclination of a purely hierarchical structure
• Might make promotional paths less clear for employees
 TYPES OF ORGANIZATIONAL STRUCTURES

7 NETWORK ORG STRUCTURE

• helps visualize both internal and

external relationships between
managers and top-level
management

• not only less hierarchical but are

also more decentralized and more
flexible than other structures

• focuses more on open

communication and relationships
rather than hierarchy
 TYPES OF ORGANIZATIONAL STRUCTURES

7 NETWORK ORG STRUCTURE

PROS
• Visualizes the complex web of onsite and offsite relationships in companies
• Allows companies to be more flexible and agile
• Give more power to all employees to collaborate, take initiative, and make
decisions
• Helps employees and stakeholders understand workflows and processes

CONS
• Can quickly become overly complex when dealing with lots of offsite processes
• Can make it more difficult for employees to know who has final say
 ORGANIZATION

3 ELEMENTS to be CONSIDERED when ORGANIZING WORK:

Division of Work

In establishing an organization structure,

the total work to be done must be divided
into units, such as departments
 ORGANIZATION

3 ELEMENTS to be CONSIDERED when ORGANIZING WORK:

Facilities and
Working Conditions

While divisions of work

are being established, the
physical aspects of
organizing must also be
considered.

These aspects include providing the necessary equipment and materials for
employees to be able to complete their work, and arranging the layout of the
facilities so that all work flows smoothly and provides the best working conditions
possible.
 ORGANIZATION

3 ELEMENTS to be CONSIDERED when ORGANIZING WORK:

Employees

Employees should be matched to

work that they are prepared to do.

That means that they have the

necessary preparation and skill to
complete the assigned tasks.
 STRUCTURAL ORGANIZATION VS ORGANIZATIONAL CHART

4 PRINCIPLES OF GOOD ORGANIZATION:

1. Responsibility and Authority.

• Responsibility is the obligation to do an assigned

task.
• In a good organization, the assigned tasks are
clearly identified so all employees know exactly
the work for which they are responsible.
• Authority is the right to make decisions about
assigned work and to make assignments to
others concerning that work.
• Authority is delegated from the top of the
organization to others at lower levels.
 STRUCTURAL ORGANIZATION VS ORGANIZATIONAL CHART

4 PRINCIPLES OF GOOD ORGANIZATION:

2. Accountability.

• Accountability is the obligation to

accept responsibility for the
outcomes of assigned tasks.

• When any manager assigns

responsibility and delegates
• Although the manager is ultimately responsible for authority to an employee, the
the work, the employee is accountable to the manager does not give away the
manager for performing the assigned work responsibility for ensuring that the
properly, including the quality, quantity, and
completion time.
work is completed and for evaluating
• The manager, in turn, is accountable to his or her the quality of that employee’s
boss for the outcomes of all work done in the unit. performance.
 STRUCTURAL ORGANIZATION VS ORGANIZATIONAL CHART

4 PRINCIPLES OF GOOD ORGANIZATION:

3. Unity of Command.
• An important principle of good organization is
unity of command.
• Unity of command means that no employee
reports to more than one supervisor at a time
or for a particular task.
• Confusion and poor work relations result when
a person has work assigned by and is
accountable to more than one supervisor.

• The person may not know which assignment to

• Teams need clear assignments of responsibility and perform first or may receive conflicting
authority for their tasks, and all team members need to be instructions regarding the same work
aware of who is in charge of each activity. assignment.
• Ultimately the entire team and its supervisor are • With the increasing use of teams, problems
responsible for the results produced. with unity of command are more likely to occur.
• A team member cannot shift the blame to someone else • Teams and their supervisors must practice the
or fail to undertake a share of the workload if that same careful organization of work as when
organizational structure is to work successfully. more traditional structures are used.
 STRUCTURAL ORGANIZATION VS ORGANIZATIONAL CHART

4 PRINCIPLES OF GOOD ORGANIZATION:

4. Span of Control.

• Span of control is the number of employees that any

one manager supervises directly.
• Organizations must establish a reasonable span of
control for each manager.
• The manager who supervises too many people is
overworked and unable to perform all duties effectively.
• On the other hand, valuable time is wasted if a
manager has too few people to supervise.
• That manager may supervise each person too closely
or spend too much time in no management work.
• In general, the span of control is larger at the lower
levels of an organization than at the higher levels