CM 156 Lecture 5: Relevance of Organizations PDF

25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA CM 156: Introduction to Management in Construction Lec...

25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA CM 156: Introduction to Management in Construction Lecture 5 – Relevance of Organisations Prof BK Baiden www.knust.edu.gh Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Lecture 5 - Content 1. Definition & Need for organisation. 2. Organisation structure  definition, achievement & forms. 3. Organisation chart  definition, types, purpose and limitations 4. Span of control  definition, factors & types. 5. Organisational relationships - types www.knust.edu.gh Prof. Bernard K Baiden 1 1  25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Definition of Organisation Several definitions exist: “A body set up to meet a set of needs.” “An arrangement of human and physical resources based upon the need to control and integrate the activities of individuals and groups.” “The structure of an enterprise resulting from the division and grouping of work into functions, sub-functions and jobs.” www.knust.edu.gh Prof. Bernard K Baiden 2 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Need for Organisation 1. Serve society and operate as social institutions within the rules and values of society. 2. Respond to social needs and aimed at making conditions better, safer, cheaper, and enhance the quality of life. 3. Achieve objectives that could not be achieved by individuals. Requires coordination of individual efforts to achieve a common goal. www.knust.edu.gh Prof. Bernard K Baiden 3 2  25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Need for Organisation 4. Preserve and extend knowledge, a process that is vital to civilization. 5. Store and develop knowledge and pass it on to the next generations continuously. 6. Provide careers, work and livelihood 7. Bring satisfaction and self-fulfillment to employees through efficiency and control. www.knust.edu.gh Prof. Bernard K Baiden 4 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Organisation Structure - Definition “An arrangement of lines of authority and communication within a firm and allocation duties and responsibilities.” “A sum total of ways in which labour is divided into distinct tasks and responsibilities and coordinated along defined lines of communication” “It is the supporting framework designed for planning and executing of activities of a firm.” www.knust.edu.gh Prof. Bernard K Baiden 5 3  25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Organisation Structure - Achievements 1. Creation of hierarchies and work groups. 2. Mechanism for allocating tasks and responsibilities. 3. Coordination of activities. 4. Setting up of control span. 5. Centralising and decentralising activities. 6. Determining the extent of individual responsibilities. www.knust.edu.gh Prof. Bernard K Baiden 6 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Organisation Structure - Forms Organization structures are created on the basis of arrangement of activities in the organisation. The three main organisation structural forms are: 1.Traditional 2.Divisional 3.Adaptive/Matrix www.knust.edu.gh Prof. Bernard K Baiden 7 4  25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Traditional Based on functional division and departments They are characterised by authority lines for all levels in the management. These include: 1. Line – line of command from top to bottom 2. Line and staff – top to bottom line structure and staff structure for support. 3. Functional – based on function or profession. www.knust.edu.gh Prof. Bernard K Baiden 8 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Divisional Based on the different divisions in the organization. Structure is further grouped into: 1. Products – different types of products. 2. Market– specific markets of operation. 3. Geographical – location. www.knust.edu.gh Prof. Bernard K Baiden 9 5  25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Adaptive Designed as to cope with the unique nature of undertaking and the situations in the organization. There are two types: 1. Project – suitable for undertaking periodic specialised work and development of a unit 2. Matrix – combines the merits of project structure and functional specialization with full time specialized units capable of handling more than one project at a time. www.knust.edu.gh Prof. Bernard K Baiden 10 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Organisation Chart - Definition “A diagram showing the pattern of authority within an organization.” “A diagram showing the formal structure of an organisation and the interrelationships of its parts, positions and jobs.” Shows managers and their sub-workers Shows the relationships between organisation members. www.knust.edu.gh Prof. Bernard K Baiden 11 6  25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Organisation Chart - Purpose 1. Define system of accountability of a firm. 2. Determine employee status within the management hierarchy. 3. Facilitate organisational design. 4. Preparation of management succession plan. 5. Show lines of communication. 6. Show span of control of superiors or management staff. www.knust.edu.gh Prof. Bernard K Baiden 12 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Organisation Chart - Types 1. Hierarchical: Division into different levels with top to bottom line of command. 2. Flat or Horizontal: Few or no levels, used in small or individual unit organizations. 3. Matrix: Same skill groups reporting to their respective managers. www.knust.edu.gh Prof. Bernard K Baiden 13 7  25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Organisation Chart - Limitations 1. Does not show developed social relationships. 2. Relationships shown are often simplistic and do not reflect actual complex relationships. 3. Easily becomes outdated and changes are often resisted. 4. Does not show management style. 5. De-motivates workers who feel their ranks are lower than expected. www.knust.edu.gh Prof. Bernard K Baiden 14 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Span of Control - Definition “The number of employees or immediate subordinates controlled by and reporting to a superior.” “The number of subordinate employees directly accountable to a manager” Two basic spans exist 1.Wide span 2.Narrow span www.knust.edu.gh Prof. Bernard K Baiden 15 8  25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Span of Control - Determinants 1. The nature of subordinates’ work. 2. Skill, capabilities, qualifications, experience of subordinates and manager. 3. Availability and use of ICT. 4. Subordinates’ knowledge of formal work rules and procedures. 5. Management style and organisation approaches. 6. Depth of organisation hierarchy. www.knust.edu.gh Prof. Bernard K Baiden 16 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Wide Span of Control Has more than six horizontal blocks of work functions – flat structure with few levels Subordinates are well trained and enthusiastically carry out instructions. There is high team spirit and superiors are always in touch with the base of the organization. Effective for simple tasks and in organisation with excellent communication. www.knust.edu.gh Prof. Bernard K Baiden 17 9  25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Narrow Span of Control Has a maximum of six horizontal blocks of work functions - tall structure with many levels Superiors are able to focus and give full attention to the needs of immediate subordinates. It facilitates and enhances specialisation of function, easy vertical communication, and effective coordination of subordinates’ work. Employees aspire to rise in status. www.knust.edu.gh Prof. Bernard K Baiden 18 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Organisational Relationships 1. DIRECT Exists between a superior and subordinates Instructions given by superior are expected to be carried out by subordinate Direct line of authority Exist at any level within the organisation. www.knust.edu.gh Prof. Bernard K Baiden 19 10  25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Organisational Relationships 2. LATERAL Exists among employee on an equal level of responsibilities. They are answerable to the same superior Relation promotes collaboration and coordination on matter of mutual benefit. It is a reciprocal relation. www.knust.edu.gh Prof. Bernard K Baiden 20 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Organisational Relationships 3. FUNCTIONAL Exists between a specialist and any member of the organisation. There is an indirect line of authority in other department. Direct line of authority exist within the specialist department. It is a professional advisory relation. www.knust.edu.gh Prof. Bernard K Baiden 21 11  25/08/2022 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA Organisational Relationships 4. STAFF Occurs at higher levels of management. Implies no authority. Carries only an advisory responsibility. www.knust.edu.gh Prof. Bernard K Baiden 22 Department of Construction Technology and Management KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI, GHANA 23 Prof. Bernard K Baiden 12