ORGANIZATIONAL

STRUCTURE

ENSC 121 – Construction Methods and Project Management

ORGANIZATIONAL STRUCTURE

 An organizational structure outlines how responsibilities and roles

are assigned and grouped throughout an organization.
 Organizations of all sizes require an established, organized structure
to drive business outcomes. However, not all companies function
best with a traditional, hierarchical organizational structure.
 A lack of organizational structure leads to miscommunication, work
delays, poor process flows, and other serious consequences that
stunt business growth.
 In contrast, a robust organizational structure enables employees to
coordinate teamwork, understand their tasks and responsibilities,
reduce conflicts, and boost productivity.
Common Type of Organizational
Structure
Hierarchial structure

 A hierarchial structure is the most common type of

organizational structure.
 This pyramid-shaped structure follows a direct chain of
command from the top (the CEO) and flows down the org chart
through individual teams and entry-level employees.
 The chain of command goes from the highest-level executive to
senior management to team leaders to lower-level employees.
The highest-level executive (typically the CEO) has the most
power and authority on the decision-making process.
Hierarchical structure

Best for: Traditional, stable organizations with clear

authority lines and a need for uniformity and control.
Examples include government agencies, large
corporations, or military organizations.
 Hierarchical structure

Pros of a hierarchal structure:

• Obvious chain-of-command.
• Clearly defined reporting structure and individual
responsibilities.
• Sets clear career path growth.
• Builds suitable skills and specialties.
 Hierarchical structure

Cons of a hierarchal structure

• Can slow down innovation or important changes due to
increased bureaucracy
• Can cause employees to act in the interest of their
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
Hierarchical structure
 Functional structure

o A functional structure groups employees into different

departments by work specialization.
o Each department has a designated leader highly experienced in
the job functions of each employee supervised by them.
o Most often, it implements a top-down (centralized) decision-
making process where department managers report to upper
management.
o Ideally, leaders of different teams communicate regularly and
coordinate their strategies while lower-level employees have little
idea of the processes taking place outside their department.
 Functional structure

Best for: Companies that require a high degree of

specialization and efficiency within each department,
like manufacturing firms.
 Functional structure

Pros of a functional structure

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

Cons of a functional structure

o Can create silos within an organization
o Hampers interdepartmental communication
o Obscures processes and strategies for different
markets or products in a company
Functional structure
 Divisional structure

o In a divisional organizational structure, the company is divided

into different business units that have complete control of their
budget, resources, and strategy – essentially acting as an
independent company.
o Each division can have its own dedicated marketing, sales,
product, and IT teams.
o A divisional structure works well with large enterprises who have
multi-product offerings, have acquired or merged with multiple
business entities, service many geographical regions, and serve
different industries.
 Divisional structure

Divisional organizational structures can be divided

according to a few different factors, including:
o Market-based divisional org structure
o Product-based divisional org structure
o Territory-based/Geographic divisional org structure
 Divisional structure

Best for: Large enterprises that operate in multiple

markets, such as multinational companies or
conglomerates, as it allows each division to focus on its
specific market or product line.
 Divisional structure

Pros of a divisional organizational structure:

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

Cons of a divisional organizational structure

o Can result in duplication efforts like multiple applications
that do the same thing.
o Siloed teams and data with poor knowledge transfer.
o Poor documentation.
o Lack of organizational communication.
o Departments compete against one another.
Divisional structure
Matrix structure

 Within a matrix organizational structure, team members report

to several managers at once.
 A matrix organizational chart 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).
 Matrix structure

Best For: Organizations that need to balance the benefits of functional

and divisional structures, like project-based companies, consulting firms,
or companies involved in complex projects requiring cross-functional
collaboration.
 Matrix structure

Pros of a matrix organizational structure:

o Flexibility to pull employees into more important projects at
will.
o Empower employees to build and test skillsets outside of
their pre-determined roles.
o Faster project deliverables.
o Provides a more dynamic view of the organization.
 Matrix structure

Cons of a matrix structure:

o This often leads to conflicts among leaders and project
managers.
o Confusion on authority.
o Frequency of change leads to fatigue and resistance.
Matrix structure
Process-based structure

 A process-based structure organizes employees into groups or

departments based on steps of a process.
 The leader of the company is listed at the top, as they oversee
all processes. Each step of the process has a supervisor and
employees who do work in that process.
 The chart reads from left to right. One process can not begin
until the process before it is completed.
Process-based structure

Pros
 Can lead to faster and more efficient processes
 Promotes teamwork within departments and across departments
Cons
 Can lead to barriers between departments
 Can lead to miscommunication between departments, especially
during handoffs
Process-based structure
 Network structure

 A network structure goes far beyond your internal company

structure. It’s the act of joining the efforts of two or more
organizations to deliver one product or service.
 Typically, a network organization outsources independent
contractors or vendors to complete the work.
 Network structure

Pros of a network structure:

 Promotes organizational agility and flexibility.
 Fosters collaboration across employees.
 Breaks down silos.
 Creates highly specialized skills in employees.
 Network structure

Cons of a network structure:

o Extremely complex and convoluted.
o Lower formalization.
o There is a feeling of inequality between full-time employees
and contractors/freelancers.
o It’s difficult to know who has final approval.
Network structure
 Flat Organization Structure

 Due to its simple nature, a flat organization structure, also

called a “flatarchy” or a horizontal structure, is typically used
by small businesses and startups.
 Organizations often start with a flat structure and then
transition to a different type of org structure late in their
maturity.
 Flat Organization Structure

Pros of a flat structure:

 More responsibility for employees.
 Open communication.
 Clear path of approval.
 Change and improvement implementation happen fast.
 Rewards adaptability, flexibility, and innovation.
 Flat Organization Structure

Cons of a flat structure:

o Not scalable.
o Often leads to confusion, as employees lack a clear supervisor
or manager.
o Relies on one person to be the decision-maker.
o Leads to employees with generalized skills with a lack of
specializations.
o Difficult to maintain when organizations start to scale.
Flat Organization Structure
Construction Project
Organization
 Construction Project Organization

 A well-structured construction project management team or construction project

organization is critical to the success of any project team; a well-structured
organization provides support for the work being performed.
 Misaligned project organizations have a detrimental effect on the project's
outcome.
 The organizational structure of a construction company refers to the
arrangement of job roles as well as the reporting and operational relationships
between and within these roles.
 Its primary objective is to foster interactions among team members with the
fewest possible disruptions, overlaps, and conflict.
 There is no universally accurate management system that can be used to
determine which is the best.
 Construction Project Organization

 The organizational structure that will be used for the project is a critical
decision in project management.
 The organizational environment, the characteristics of the projects in
which it will operate, and the level of authority delegated to the project
manager should be considered in designing the structure of the
organization.
 There's no ideal form of the construction project organization, it can take
many forms as long as it is applicable for the betterment and effectivity
of the management within the company.
 What is Organization?

 Organization is a group of individuals who are cooperating willingly and

effectively for a common goal.
 It is nothing more than the mechanism by which administration, clients,
coordinates and controls its business.
 Organization is structured to promote better management. However, it is
the performance of the people who fill the positions that determines the
success of the enterprise and not the organizational design itself.
 Structural Organization

 Structural organization is the formal arrangements that are established

to coordinate all activities in order to implement a given strategy.
 Structural Elements of an
Organization

1.Men
2.Materials
3.Machine
4.Methods
5.Money
 Major Component of Organizational
Structure

Distribution of Functions
Vertical and Horizontal Authority Relationships
Communication and Decision Processes
Policies
 Project Organization and Staffing

 Project organization and staffing is the part where organization structure,

individual positions and functions are developed, duties and
responsibilities are defined, teams are formed and training programs are
formulated.
 Establishing an organization for construction project implementation is
an important function of a project manager.
 Staffing is one of the first tasks that must be completed after the
organization's plan has been established.
 Staffing failures frequently result in casualties and ruined careers. A
fundamental requirement for key-personnel selection is that the project
manager is intimately familiar with the candidates and their capabilities.
 Project Organization and Staffing

 Staffing is the most critical aspect of project management.

 The staff is ultimately responsible for the project's completion.
Additionally, the majority of the project's cost will be incurred by staff.
 As a result, it is critical to be extremely precise in planning and
acquiring the appropriate staff at the appropriate time and for the
appropriate duration.
 Additionally, it is critical to maintain staff motivation and to ensure their
safety and wellbeing.
Example of Organizational
Structure
 Organizational structures are essentially blueprints for how businesses
are run and managed, as well as how information is communicated
within the organization.
 Organization is developed based on certain parameters, such as
determination and grouping of activities, assigning of activities to
department, decisions and actions defining hierarchy of relationships
among the department, divisions and sections; and providing
coordination lines among people and tasks.
 1. Organization structure for Large
Project

o The project manager is either at the top or in the middle of large projects.
o For instance, a construction firm will have a general owner or CEO, but the
project manager will oversee numerous projects throughout the area.
o The project manager with whom he communicates is either the home
office support group or the central office administration.
o He may also contact the project's designer and construction management
consultant.
o The project manager will supervise the project engineer, and the project
engineer will oversee the various sites
 1. Organization structure for Large
Project

o Various departments report to the project engineer, including the administrative

department (site management), the finance department (billing, and cash
management), and the procurement department (materials procurement).
o Additionally, there are also engineering professionals supervised by project
engineers. For example, civil engineers work in the structural department;
architects work in the architectural department (on designs); sanitary engineers
work in the sanitary department (on plumbing and sanitary layout); electrical
engineers work in the electrical department (on electrical layout and wiring);
and mechanical engineers work in the mechanical department (on machineries).
o For a project to succeed, top management must clearly define and delegate the
necessary authority to the project manager. Without sufficient authority, the
project manager cannot perform effectively, risking failure.
1. Organization structure for Large
Project
 2. Organizational Structure for Small
Project

o For small projects, the organizational structure must be clear and concise
to ensure smooth company operations.
o In such cases, the project manager often doubles as the project engineer,
overseeing both technical and administrative tasks.
o The support groups, including finance and administration, report to the
project engineer.
o The technical group consists of foremen for masonry, carpentry, plumbing,
electrical, and steelworks, while administrative services handle
accounting, cashiering, and procurement.
o Simple structures are ideal for small projects since fewer employees are
needed to manage the limited scope of work.
2. Organizational Structure for Small
Project
 3. Interrelationships Among the Project
Participants

o In a project involving multiple participants—such as a general

contractor, subcontractor, and specialty contractor—the organizational
structure plays a crucial role.
o The project owner or client communicates with the planner, designer,
and construction management consultant.
o The contractor, who reports to the owner, receives input regarding the
design and execution. A project manager, reporting to the contractor,
can also communicate with the planner and consultant.
 3. Interrelationships Among the Project
Participants

o If the owner is absent and an issue arises, the designer or consultant

can inform the project manager to resolve it.
o The project manager oversees various departments, divisions, and
contractors, including subcontractors and specialty contractors hired for
tasks beyond the general contractor's scope.
o While the organization chart reflects hierarchical relationships, it does
not capture how the project will function, which depends on effective
communication, information flow, coordination, and collaboration.
3. Interrelationships Among the Project
Participants
Position Chart
o A position chart lists employee names or titles, the
positions they hold and the reporting relationships
between them and their superiors.
o Position charts are popular in smaller organizations,
but are also used by individual groups within larger
organizations.
Position Chart for Small Organization
Position Chart for Large Organization
Roles and Responsibilities
 1. C-Levels Executive

o In the organization chart outlining team hierarchy, C-level

executives stand at the top.
o C-level executives are responsible for setting the project’s
overall goals and strategies, as well as determining the
budget and timelines.
o As the utmost influential decision-makers in charge of the
larger picture, C-level executives are responsible for
making strategic business decisions that will shape an
organization’s future.
 1. C-Levels Executive

There are several C-level positions that vary between

industries.
o CEO (Chief Executive Officer)
o CFO (Chief Financial Officer)
o COO (Chief Operating Officer)
o CMO (Chief Marketing Officer)
 2. Project Executive/ Senior Project
Manager

o The next construction project team hierarchy level

belongs to project executives, a.k.a. senior project
managers.
o This is the highest non-C-level position responsible for
macro-level construction project management.
o Senior project managers maintain closer contact with
clients and oversee the project’s day-to-day activities.
 2. Project Executive/ Senior Project
Manager

Senior PM’s key responsibilities:

Watching the schedule and budget
Compiling reports
Supervising compliance with specifications
Boosting teamwork
Collaborate with superintendents and foremen
 3. Architect

o Although architects generally don’t get involved in

construction work, they are a necessary part of the
construction team.
o Construction companies hire architects to work on
particular projects, often at the start of planning.
o Architects need to possess an extensive portfolio of
professional experience to be eligible to work with a
construction company.
 3. Architect

An architect must tick all the boxes below in terms of

knowledge and experience:
o Functionality
o Reliability and safety
o Sustainability
o Aesthetics
 4. Construction Project Manger

o Although construction project managers don’t have

the word “Senior” in their position title, they’re still
integral to the process.
o They coordinate all team members, manage the
estimated budget, monitor the purchasing of
necessary materials, cooperate with vendors, and
keep the construction schedule on track.
 4. Construction Project Manger

As the person in charge of managing the construction

process, CPMs have the following responsibilities:
o Estimating and budgeting
o Management and scheduling
o Communication
o Quality control
5. Assistant Project Manager

o Viewed as the junior project manager, an assistant is

responsible for completing the tasks delegated by their PM.
o These are future PMs in training who perform considerable
legwork at the direction of their PMs.
 5. Assistant Project Manager

Some of the core tasks of an Assistant project manager may

include but are not limited to:
o Project planning and budgeting
o Documentation
o Quality control
o Site coordination
Assistants should have over 2 or 5 years of professional
experience until they are promoted to a Project Manager’s
position.
 6. Subcontractor

o Subcontractors are specialized workers who fulfill a

specific scope of tasks delegated to them by the
general contractor.
o They are free agents usually hired on a contractual
basis and don’t have a direct work relationship with
the owner. Instead, subcontractors report to the
general contractor or the project manager.
 6. Subcontractor

Subcontractors have their own set of responsibilities, including

but not limited to the following:
o Assembling and installing the equipment and materials
o Keeping track of the necessary tools, supplies, and
equipment
o Managing their own team members (if applicable)
Subcontractors should have relevant working experience and
a portfolio of previous projects to prove their knowledge and
relevant competence.
 7. Vendor

o Any person or company providing the necessary

materials for the construction project.
o They are contracted to supply, deliver, and install the
specific products required for a particular job.
o As a vendor, you may need to provide warranties and
guarantees for the materials you are supplying.
 8. Construction Superintended

o Construction project managers have the option to

appoint a superintendent, the person in charge of
supervising and coordinating construction activities
on-site.
o With overlapping responsibilities and roles with PMs,
superintendents are responsible for taking care of on-
site labor and materials.
 8. Construction Superintended

Their duties include but are not limited to the following:

o Overseeing construction sites
o Creating detailed reports
o Inspection
 9. Structural Engineer

o Structural engineers are responsible for ensuring that all

buildings and structures comply with safety regulations.
o Inspecting a future building’s drawings to see if it meets
stability requirements implies conducting detailed
calculations.
o Structural engineers are an integral part of every
construction project, whether it’s a residential building,
commercial center, hospital or sports facility.
 9. Structural Engineer

o Constructing a building for people to live, work and

spend free time requires great attention to safety and
comfort details and the complete collaboration of all
team members.
o As with every other team member’s task, structural
engineers should constantly communicate with all
other professionals involved in the project.
 10.Field Engineer or Site Clerk

o Field engineers (site clerks) provide support to the construction

team on-site.
o Their duties go beyond just taking notes, as they are expected
to collaborate with all teams and assist in day-to-day
operations.
o While working on daily tasks, field engineers always keep
updated building plans in mind and report to the general
foreman or superintendent.
o In addition, site clerk duties involve providing constant updates
to chief engineers who are unable to visit the site every day.
 10.Field Engineer or Site Clerk

A site clerk’s main duties include:

o Keeping detailed work records
o Organizing construction documents
o Ordering supplies
o Keeping track of job expenses and budgets
o Ensuring the adequate flow of communication between
tradespeople, suppliers, and other teams involved
o inspect the building for any issues and defects
 12.Mechanical Engineer

o Mechanical site engineers are involved in construction

projects that rely heavily on specialized tools and
machinery.
o This implies they must have knowledge of machinery
used in construction, as well as their maintenance.
 12.Mechanical Engineer

A mechanical engineer’s duties include the following:

o Supervising and monitoring the installation, dismantling
and maintenance of project machinery
o Testing and inspecting tools for possible defects
o Making sure all machines meet safety requirements
o Interpreting construction designs and breaking them
into digestible chunks for their fellow engineers
o Providing technical support in times of need
 13. Quality Assurance Engineer

o Quality assurance (QA) or quality control (QC)

engineers take responsibility for ensuring a
construction project meets all of its specifications and
corresponds to the industry’s regulations.
o QA experts inspect the entire construction process to
monitor each step of the construction project
implementation.
 13.Quality Assurance Engineer

The main duties of QA engineers include:

o Creating QA/QC process plans
o Analyzing construction plans and testing processes
o Ensuring a building meets safety, health and environmental
requirements
o Implementing quantitative and qualitative data analysis
o Communicate with outsourcing assembly suppliers
o Testing materials used in the construction process
o Conducting periodic review meetings with the team to assess
performance
 14.Foreman

o On a construction site, the Foreman is in charge of making sure

everything runs well.
o They are in charge of ensuring that the construction workers and
supervisors have a direct line of communication.
o A foreman's key responsibilities include coordinating dayto-day
chores, creating worker schedules, overseeing the site's quality,
and managing the budget.
o They must also keep their superiors informed about the project's
development. Construction supervisor and construction manager
are two possible job titles for a foreman.
 15.Mason

o One of the most significant men in the building

industry is a mason.
o Tiles, bricks, and other cement-based products are
installed by them.
o They also have to deal with a lot of heavy equipment
and are frequently given a lot of responsibilities.
 16.Plumbers

o Plumbing fixtures for drainage and water systems are

installed, modified, maintained, and repaired by
plumbers.
o The installation and maintenance of sanitary systems
such as bathtubs, showers, toilets, and sinks is part of
their job description.
o They also take care of household appliances like
dishwashers and water heaters to make sure they work
properly.
 17.Electricians

o The electrical systems in new homes and buildings are

assembled, installed, and wired by electricians.
o Electrical systems are used to provide light, heat, power,
air conditioning, and refrigeration. After the building has
been partially constructed, electricians normally install the
wiring.
o Schematics and wiring diagrams are followed by them.
o Aside from that, they set up electronic equipment and
signaling systems.
 18.Construction accountants

o Construction accountants are responsible for

calculating and overseeing all aspects of a project's
finances.
o Budget planning for building projects, cost analysis,
and review of purchase orders, invoices, and supplier
contracts ate among their responsibilities.
o Their purpose is to keep track of and manage all
construction expenditures that have been projected.
 19.Finance manager

o In a construction business, the finance manager is in

responsible of correctly recording income and
expenses, monitoring budgets, reporting on the
company's and project's financial status, and
managing cash flow.
 20.Procurement manager

o To ensure that the construction company's projects

are completed in the most cost effective and
acceptable manner possible, the procurement
manager obtains all of the essential materials.
o In addition, the procurement manager ensures that
the materials arrive on time and on budget.
Training
 Training

o Training is the process of acquiring and improving

skills, knowledge, attitudes, and behaviors that
enable engineers and workers to perform their tasks
more efficiently, whether through introductory or
supplemental training.
o The objectives of training are varied depending on the
requirements of the project.
 Training

Enumerated below are the typical objectives of

training:
1. To orient new recruits or workers;
2. To ensure that the project engineers and workers
know exactly their task;
3. To improve skills, productivity, job performance and
aptitude based on acceptable standards.
 Training

o Training approaches include on-the-job training,

classroom settings, conferences, group discussions,
supervisory training, case studies, and role-playing.
o More formal training methods involve attending
seminars (locally or internationally) and pursuing
formal academic degree programs, such as national
or doctoral degrees for specialized fields like design.
END OF LECTURE

THANK YOU FOR LISTENING!!!