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Project Management & Construction Practice

Chapter 4

Construction Project Organisation

Dr Mohamad Syazli Fathi
UTM RAZAK School of Engineering & Advanced Technology UTM International Campus Tel: 03-2615 4211 Mobile Number: 013-3557207 Email: syazli@ic.utm.my Blog: http://dda3033.wordpress.com

December 10, 2012

Please refer to:

Types of Project Organizations

Chapter 13

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Growth of Project Oriented Organizations

There are many reasons for the rapid growth, but most of them can be grouped in four general areas:
Speed and market responsiveness have become absolute requirements for successful competition The development of new products, products processes processes, or services regularly requires input from diverse areas of specialized knowledge

Growth of Project Oriented Organizations

Four reasons for growth (cont.) (cont )
Rapid expansion of technological possibilities in almost every area of enterprise tends to destabilize the structure of organizations A majority of senior managers rarely feel much confidence in their understanding and control of the activities in their areas

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Introduction
There are several possible organizational approaches to the design and construction of a project. The major concepts addressed here include: Functional Task force Line and staff Matrix

Organizational Concepts - Project Accountability Task Force

Project Accountability Task Force Owner

Project Manager

Design Manager

Support Services

Construction Manager

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Project Accountability Task Force

Notably successful when a self-sufficient organization is required required. Task forces work best when all team members can be located physically in the same area to foster close relationship, when attempting something new without organized standards and when the team is made up of very experience members members. Large remote overseas construction projects are generally organized on a task force basis.

Project Accountability Task Force

Weaknesses Advantages
Hi High h adaptability d t bilit High understanding of the overall task and can foster an excellent team spirit if given the proper leadership. The task force features close relationships and can be responsive i to t new ideas id and d methods. Poor stability Everyone may not have corporate p home for long g term career development or for continuity of employment between assignment periods Everyone may not understand his or her own task There are no functional checks and balances to preserved workmanship p p quality and accepted standards.

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Organizational Concepts Line and Staff Task Force

Line and Staff Task Force Owner

Design Division

Project Manager

Construction Division

Design Manager

Support Services

Construction Manager

Line and Staff Task Force

The line and staff organizations has worked well in the manufacturing industries. industries Many construction companies evolved from a functional organization to a line and staff organization as growth required additional management strengths. Line responsibility is often indicates by a solid line on organization charts while staff responsibility is shown as a dotted line.

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Line and Staff Task Force

Weaknesses Advantages
Combination of functional strengths and expertise with the project oriented team. This form of organization strikes a balance between overall control of both craftsmanship and project objectives. Provides a high corporate memory and if managers are memory, given diversified assignment, offer an excellent climate for developing project manager. Are sometimes evident in the conflict between the operating organization and and the functional staff Organizational structure tend to be somewhat top heavy, and overall cost mat exceed more simplified operating concepts.

Organizational Concepts - Functional Organization

Functional Organization Owner

Project Manager

Design Division

Construction Division

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Functional Organization
Traditionally been used in the construction industry. The strengths of these approaches will include: include: High stability High professional standards Incorporation of the latest technology And an excellent corporate memory

Notable success has been achieved by functional organizations when design and construction do not fully overlap, thus minimizing interaction. In this case, the overall project management plan can be said to be on a functional basis, using
a separate designer and a separate contractor or construction manager.

Functional Organization
Weaknesses Advantages
Everybody knows where they stand compared to others Understands their tasks Has a permanent home base Permits the tightest discipline control of any organization concept Low adaptability Minimum appreciation pp of overall project objectives Overly rigid operating rules Resistance to change Difficulty in developing well-rounded Project Manager

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Organizational Concepts Matrix Organization

Matrix Organization
Most design-build organization and a number of public owners have developed p some form of the matrix organization. g This organizational form is something of a cross between a task force and a functional organization and represent an attempt to preserved the strong point of each. The matrix organization endeavors to solved the conflicts between the operating line organization as represented by the project manager and the functional staff by opening up lines of communications at all levels and through assigning subordinates managers dual reporting responsibility. The matrix organization combines functional strengths with the advantages of a project oriented team.

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Matrix Organization
Weaknesses
Difficulties in precisely defining accountability to both functional and project manager. Observation have shown that in many organizations the strongest managers often dominate and that individual team members may be unsure of their position in the pecking order. The organization form generally has the highest overall management and administrative cost.

Advantages Ad antages
It foster an excellent climate for developing project managers, retain access to the corporate memory and allows control of both craftsmanship and project objectives.

Project Matrix Organizations