CHAPETR 3

ORGAINAZION MANAGMENT

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Organizational management
 Established social unit composed of people who
coordinate their activities to achieve a common
objective.
 Properties of an organization
Distinct internal processing based on division of labor
A hierarchy of authority
 A system of coordination and control
A collective identity (team work)

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 Large organizations with diverse activities need
to be divided to major tacks into departmental
responsibilities thus leading to some kind of
structure.
 Effective management
clarifying responsibility and authority within
the organization,
 facilitate communication and control,
 improve decision making;
 differentiate among activities
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Elements of organization structure
 job descriptions
 statements indicating the functions
 official delegations
 policies delegations
 financial procedures

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Types of organization structure
 Functional Organization Structures ( U-form
organization )
 Product Organization Structures ( H – form
organization )
 Territorial Organization Structures
 Client Centered Organization Structures
 Matrix Organization Structures
 Multiple structures
The Functional, Product and Matrix Organization
structures are usually used in the construction industry

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Functional/Line Organization
Structure
 The functional organization structure divides the units so
that each has a dissimilar set of duties and responsibilities
 This structure is also called the U – form where the U in
u-form stands for unity.
 Functional organization structures, by orienting people
toward a special activity, concentrate competence in
particularly effective ways
 Functional structures tended to produce superior
products
 Functional structures tend to deemphasize inter-
departmental cooperation by creating boundaries
between departments(disadvantage)
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Functional type of the project management
organization

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Product Structure (H –form organization)

 The product organization structure divides the units on

the basis of products ,projects, or programs
 This type of organizational structural is also called the
H-Form where the H- stands for hybrid.
 Product structures were associated with a better
record of meeting schedules and controlling cots.
 Product structure enables the formation of product-
centered cooperation.
 Product organization structures facilitate innovation
 Possibility of unemployment, career retardation, and
personal development ( disadvantage)

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Product organization Structure

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Matrix Organization Structure
 Matrix organization is a result of efforts to
combine both functional and product (or client
or territorial) structures into a new form.
 It begins with a functional structure with
different functional units, and another structure
organized by product or client, is overlaid upon
the original structure.
 Employees are assigned to a basic functional
department and at the same time, they are
assigned to work on a particular product

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Matrix Structure

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