Business organizations has conditions peculiar to itself. A set of rules cannot be laid down that would be applicable to organization of all enterprises. However certain underlying principles can be adapted such as; 1. Objective 2. Analysis 3. Simplicity......
The aim is to build a house in 45 days. , then the entire organization must be built with that idea, and those in the company must think and act in terms of the quality of work. The objective serves as the guide to future planning and action
There should be a study as the whether the project could be finished at the right time and the right price the client will be able to pay.
Creation of a position should be based on paramount necessity.
The nature of the business determines the main function of the business. The nature is the proper basis for organization to be established.If an organization of any concern is built around the functions, proper distribution of work could easily be done, thus eliminating any one man to be so powerful and so dependable upon to be indispensable..... “ No man is indespensable.”
Ce 522 a
CE 522A CONSTRUCTION MANAGEMENT
ORGANIZATION <ul><li>A group of individuals cooperating willingly and effectively for a common goal
Organizations are structured to promote better management
However, it is the people that fill the position that determines the success of the enterprise and not the organization itself. </li></ul>
STRUCTURAL ORGANIZATION <ul><li>The formal arrangement of individuals that are established to coordinate all activities in order to implement a given strategy. </li></ul>
Structural Elements of an Organization ( 5 M's) Men - the different members of the organization Materials – represents the materials necessary in the distribution of functions or in the attainment of its objectives Machine – the tools necessary in producing its desired output Methods – the procedures and ways used in the course of its actions Money – the financial resources of the organization.
Principles of A Good Organization <ul>1. OBJECTIVE 2. ANALYSIS 3. SIMPLICITY 4. FUNCTIONALISM 5. DEPARTMENTALIZATION 6. CENTRALIZATION OF AUTHORITY and RESPONSIBILITY 7. LIMITED SPAN OF CONTROL </ul>
Principle No.1 <ul>OBJECTIVE – a clear and complete definition of the objective must be known... Any business concern or individual must adhere to a definite purpose or aim. <li>Ex. to build a house in 45 days..... </li></ul>
Principle no.2 <ul><li>ANALYSIS – A sound business judgement attempts to build an organization through full knowledge of the requirements. </li></ul>
Principle no.3 <ul>SIMPLICITY - the simplest organization that will serve to attain the desired objective is considered the best. </ul>
Principle no. 4 <ul><li>FUNCTIONALISM - the organization should be built around the main functions of the business and not around the individuals.
A function is a normal or characteristic way of doing a task that stands out distinctively by itself. </li></ul>