THE DESIGN OF MANAGEMENT THE DESIGN OF MANAGEMENT STRUCTURE STRUCTURE

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THE DESIGN OF MANAGEMENT STRUCTURE

Start by considering:• The size of the structure• Their composition• The degree of centralization• Overall project performance depends not only on

how individuals perform, but more importantly on how individuals will work together in groups, in large organizations to achieve project’s objectives.

RESEARCH MODEL (Process model productivity on site)

Organisational Factors

Contract management

Finance

Etc

PROJECT WORK ENVIRONMENT

Pre-construction Activities (1) D1. Client brief D2. Project objectives D3. Specification D4. Design/build-ability D5. Contractual arrangement D6. Planning D7. Scheduling D8. Estimating

Site/Project Manager (2) Characteristics D9. Experience/capability D10. Leadership style D11. Authority/influence D12. Goal commitment D13. Involvement

Labour (6) Characteristics D39. Subcontracting

Labour D40. Direct labour

Management (3) Factors D14. Clarity of tasks D15. Team work D16. The style of management D17. Safety management

Management (4) System D18. Planning D19. Communication D20. Controlling D21. Co-ordinating

Resource (5) Management D22. Labour selection D23. Labour control D24. Material selection D25. Material handling D26. Plant D27. D31. Waste on site D32. D38. Delay and Disruption on site

Motivating Factors (7) D41-D46 Hygiene Factors D47-D55

P R O D U C T I V I T Y

Project Performance Time Cost Quality Safety

Job Satisfaction

Effort Rewards

Ability and Skill of worker

THE DESIGN OF MANAGEMENT STRUCTURE

The management in the project setting, as in any other, involves the following:

• Organization• Planning• Direction• Controlling• Decision making• Integration

THE DESIGN OF MANAGEMENT STRUCTURE

• Coordination• Leadership• Motivation• Team-building• Conflict management• Welfare• Administration• Communication

THE DESIGN OF MANAGEMENT STRUCTURE

• In a one man firm, all the activities of management may be concerned in one person, as illustrated below:

GENERALMANAGER

SUPERVISORYEXECUTIVE

PERSONNELPURCHASING

MAINTENANCEOFFICE

DEVELOPMENT

FINANCEDESIGN

PRODUCTIONMARKETING

OPERATIVES

THE DESIGN OF MANAGEMENT STRUCTURE

GENERALMANAGER

SUPERVISORYEXECUTIVE

PERSONNELPURCHASING

MAINTENANCEOFFICE

DEVELOPMENT

FINANCEDESIGN

PRODUCTIONMARKETING

OPERATIVES

THE DESIGN OF MANAGEMENT STRUCTURE

• As the small business expands. • the most logical division is into specialist

operations. • the functions of general management

might be retained by the owner of the firm.

THE DESIGN OF MANAGEMENT STRUCTURE

CONTRACTMANAGER

MARKETINGPRODUCTIONDESIGNFINANCE

DEVELOPMENTOFFICE PURCHASINGPERSONNEL MAINTENANCE

OPERATIVES

THE BASIC BUILDING BLOCKS OF THE ORGANIZATION STRUCTURE

• Traditionally, this would take in the form of a functionally organized, hierarchical structure.

The hierarchical structure should show:• How general manager, other managers,

employees, professionals and staff are grouped to form the basis ‘foundation blocks’ groups of the organization structure.

THE DESIGN OF MANAGEMENT STRUCTURE

• How these groups are consolidated into large organizational groups?

• large functional groups or ‘departments’• and mixed function ‘organizational units’

THE DESIGN OF MANAGEMENT STRUCTURE

• How large are functional groups or ‘departments’?

• How mixed function ‘organizational units’ are consolidated to either company or project.

• The division of employees in terms of specialization of function, in the project (i.e. finance, production or marketing).

• The integration of employees.• The levels of authority within the organization.• The span of control of managers.

BASIC MANAGERIAL GROUP• Group exist all levels in the management

hierarchy.• The basic managerial, professional and staff

groups are the function blocks of hierarchical organization chart.

• The subordinate of members of the group may be foremen, and are more generally the first managers.

• Or specialist such as accountant, engineers or software analysts.

THE DESIGN OF MANAGEMENT STRUCTURE

• The organization structure of basic management group will take of the four forms:

• Functional• Horizontal• Mixed• Matrix

GROUP STRUCTURE

• The organization structure of a basic group will have: • Functional group• These groups are made of individuals of the same

functional, technical or professional specialist (i.e. marketing or finance etc.).

• This specialization by function leads to an efficient division of labour and utilization of resources. See figure below.

GROUP STRUCTUREGENERALMANAGER

OPERATIONSDEPARTMENT

ADMIN-DEPARTMENT

ENGINEERINGDEPARTMENT

ENGINEERINGDEPARTMENT

CONSTRUCTIONGROUP

DESIGNGROUP

FINANCEGROUP

PURCHASINGGROUP

B CA B CA

B CA B CA

B CA

GROUP STRUCTURE

GENERALMANAGER

OPERATIONSDEPARTMENT

ADMIN-DEPARTMENT

ENGINEERINGDEPARTMENT

MATRIX MANAGERGROUP A

ENGINEERINGDEPARTMENT

CONSTRUCTIONGROUP

DESIGNGROUP

FINANCEGROUP

PURCHASINGGROUP

B CA B CA

B CA B CA

B CA

MATRIX ORGANIZATION-IDENTICAL TO F.L HARRISON

GROUP STRUCTURE

Horizontal groups Might become necessary for individual functional

groups to work with people from other functional groups.

This kind of relationship defines secondary groups that are horizontal groups.

In this kind of relationship (generally ill-defined) there are no clear superior or superior-subordinate relationships.

GROUP STRUCTUREMixed groups they are made up of individuals from different

functional, technical or professional backgrounds.

This form of group is used for smaller organizational unit,

Example of mixed groups are: when a group of skilled workers have been

given a task to complete collectively. Mixed group are not as productive as functional

groups.

GROUP STRUCTUREMatrix Groups• the matrix group is a form of organization

which attempts to combine the efficient group of people, associated with the functional organization, and the effectiveness or goal achievement and teamwork potential associated with the mixed form of organization.

GROUP STRUCTURE

The matrix group is a secondary form of organization.

It formally integrates people from different functional groups into a mixed group.

It is under a separate matrix group manager.

THE DESIGN OF MANAGEMENT STRUCTURE

Figure above shows the additional matrix group, project manager to the conventional structure.

Its function is to manage and integrate the individuals noted as ‘A’ on the project in which they are involved.

THE DESIGN OF MANAGEMENT STRUCTURE

The functional or parent groups are maintained and the matrix group members thus belong to two groups and report to two superiors.