Construction organisation design - Revision history

Designing Buildings at 08:29, 3 February 2022

2022-02-03T08:29:44Z

← Older revision		Revision as of 08:29, 3 February 2022
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	--[[User:CIOB\|CIOB]]		--[[User:CIOB\|CIOB]]

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Business administration.		* Business administration.
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	* Joint venture.		* Joint venture.
	* Office manual.		* Office manual.
		+	* Organisation design.
	* Partnering and joint ventures.		* Partnering and joint ventures.
	* Personal service company.		* Personal service company.
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	* Types of construction organisations.		* Types of construction organisations.

−	=== External references ===	+	= External references =

	* [5] Bennis, W.: Beyond Bureaucracy. Trans Action July-August 1965.		* [5] Bennis, W.: Beyond Bureaucracy. Trans Action July-August 1965.

Designing Buildings at 09:18, 9 September 2020

2020-09-09T09:18:24Z

← Older revision		Revision as of 09:18, 9 September 2020
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−	~~See also: Types of construction organisations.~~	+	[[File:Businessmeeting280.jpg\|link=File:Businessmeeting280.jpg]]
−		+
−	[[File:Businessmeeting280.jpg]]	+

	= Introduction =		= Introduction =
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	It is therefore logical, that in this kind of situation, companies can group to form a cluster and dispense tasks across members. It also then becomes possible to support a system, which is fully or partially automated for finding, sorting and analysing information in a particular area.		It is therefore logical, that in this kind of situation, companies can group to form a cluster and dispense tasks across members. It also then becomes possible to support a system, which is fully or partially automated for finding, sorting and analysing information in a particular area.
		+
		+	See also: Types of construction organisations.

	-----		-----
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	* [109] Wikipedia_CZ: marketing z [http://cs.wikipedia.org/wiki/Marketing http://cs.wikipedia.org/wiki/Marketing].		* [109] Wikipedia_CZ: marketing z [http://cs.wikipedia.org/wiki/Marketing http://cs.wikipedia.org/wiki/Marketing].

−	[[Category:Construction_management]] [[Category:Cost_/_business_planning]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Organisation]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]

Editor at 14:46, 22 November 2018

2018-11-22T14:46:08Z

← Older revision		Revision as of 14:46, 22 November 2018
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	See also: Types of construction organisations.		See also: Types of construction organisations.
		+
		+	[[File:Businessmeeting280.jpg]]

	= Introduction =		= Introduction =
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	=== Impersonal relationship ===		=== Impersonal relationship ===

−	Weber's believed that the ideal bureaucracy must work with impersonal relationships. To produce rational decisions it is necessary to leave out personal emotions such as passion, love, hate, etc.;	+	Weber's believed that the ideal bureaucracy must work with impersonal relationships. To produce rational decisions it is necessary to leave out personal emotions such as passion, love, hate, etc.

	=== Strong rules ===		=== Strong rules ===
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	=== Promotions ===		=== Promotions ===

−	To maintain stability and give employees a feeling of safety and security there are specific rules for promotion. Promotions are made according to achievements and seniority. Older employees (in the view of time served within the company) are higher up the ladder of competency and it is almost impossible that an individual could achieve several levels of promotion at the same time;	+	To maintain stability and give employees a feeling of safety and security there are specific rules for promotion. Promotions are made according to achievements and seniority. Older employees (in the view of time served within the company) are higher up the ladder of competency and it is almost impossible that an individual could achieve several levels of promotion at the same time.

	=== Technical qualifications ===		=== Technical qualifications ===
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	People are employed based on their qualifications. In the ideal model it is impossible to hire engineering qualified personnel for management functions and vice versa.		People are employed based on their qualifications. In the ideal model it is impossible to hire engineering qualified personnel for management functions and vice versa.

−	Weber's model is an idealised design, a concept of theory, which was believed by Weber to be the most effective design for companies in early 20th century. However bureaucracies were much criticised by sociologists and philosophers, including Karl Marx, for example. They suggested that bureaucracies are used primarily to control people and have strict rules, which stifle the enthusiasm and initiative of the employees.	+	Weber's model is an idealised design, a concept of theory, which was believed by Weber to be the most effective design for companies in early 20th century. However, bureaucracies were much criticised by sociologists and philosophers, including Karl Marx, for example. They suggested that bureaucracies are used primarily to control people and have strict rules, which stifle the enthusiasm and initiative of the employees.

	Bureaucracies have been used for many years in many companies with many modifications to Weber's idealised model. This has produced a pragmatic evaluation of the bureaucracy concept and many scholars and management consultants, including the famous Peter Drucker and others, observed it closely and proposed modifications to the Weber's model. Warren Bennis summarised some of the bureaucracy deficiencies as follows [5]:		Bureaucracies have been used for many years in many companies with many modifications to Weber's idealised model. This has produced a pragmatic evaluation of the bureaucracy concept and many scholars and management consultants, including the famous Peter Drucker and others, observed it closely and proposed modifications to the Weber's model. Warren Bennis summarised some of the bureaucracy deficiencies as follows [5]:
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	--[[User:CIOB\|CIOB]]		--[[User:CIOB\|CIOB]]

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Business administration.		* Business administration.

Editor at 11:45, 18 May 2018

2018-05-18T11:45:01Z

← Older revision		Revision as of 11:45, 18 May 2018
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	* Limited liability partnership.		* Limited liability partnership.
	* Joint venture.		* Joint venture.
		+	* Office manual.
	* Partnering and joint ventures.		* Partnering and joint ventures.
	* Personal service company.		* Personal service company.

Editor at 11:45, 14 May 2018

2018-05-14T11:45:55Z

← Older revision		Revision as of 11:45, 14 May 2018
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	The classical organisation is most often associated with bureaucracy. The design of the bureaucracy is attributed to Max Weber and dates back to the beginning of 20th century. Weber specified what he believed was an ideal company structure. Some characteristics of Weber's ideal bureaucracy structure can be described as [107], [73]:		The classical organisation is most often associated with bureaucracy. The design of the bureaucracy is attributed to Max Weber and dates back to the beginning of 20th century. Weber specified what he believed was an ideal company structure. Some characteristics of Weber's ideal bureaucracy structure can be described as [107], [73]:

−	* Positions arranged in a hierarchy: According to Weber: 'The organisation of offices follows the principle of hierarchy: that is, each lower office is under the control and supervision of a higher one.' Herbert Simon [96] identified similarities of the hierarchy design with nature and the laws of physics, when he stated: 'Each cell is in turn hierarchically organised into a nucleus, cell wall, and cytoplasm. The same is true of physical phenomena such as molecules, which are composed of electrons, neutrons, and protons.';	+	=== Positions arranged in a hierarchy ===
−	* Specialisation: Bureaucracy is based on specialisation, power and competence. Each level of the structure has to know its competence, goals and the subjects that it is in charge of. The authority that is giving orders is very important in bureaucracies. Orders come only from this authority and not from anywhere else. Each part of the chain in the bureaucratic model knows precisely its competence in order not to conflict with things under the care of other parts of the organisation;	+
−	* Impersonal relationship: Weber's believed that the ideal bureaucracy must work with impersonal relationships. To produce rational decisions it is necessary to leave out personal emotions such as passion, love, hate, etc.;	+	According to Weber: 'The organisation of offices follows the principle of hierarchy: that is, each lower office is under the control and supervision of a higher one.' Herbert Simon [96] identified similarities of the hierarchy design with nature and the laws of physics, when he stated: 'Each cell is in turn hierarchically organised into a nucleus, cell wall, and cytoplasm. The same is true of physical phenomena such as molecules, which are composed of electrons, neutrons, and protons.';
−	* Strong rules: The ideal bureaucratic company is a strong one. To achieve stability even when the personnel inside the company are changing there must be a set of abstract rules for all circumstances. This includes all of the company rules; from specifications of particular internal processes and how to accomplish them, to permits and prohibitions for employee behaviour;	+
−	* Promotions: To maintain stability and give employees a feeling of safety and security there are specific rules for promotion. Promotions are made according to achievements and seniority. Older employees (in the view of time served within the company) are higher up the ladder of competency and it is almost impossible that an individual could achieve several levels of promotion at the same time;	+	=== Specialisation ===
−	* Technical qualifications: People are employed based on their qualifications. In the ideal model it is impossible to hire engineering qualified personnel for management functions and vice versa.	+
		+	Bureaucracy is based on specialisation, power and competence. Each level of the structure has to know its competence, goals and the subjects that it is in charge of. The authority that is giving orders is very important in bureaucracies. Orders come only from this authority and not from anywhere else. Each part of the chain in the bureaucratic model knows precisely its competence in order not to conflict with things under the care of other parts of the organisation;
		+
		+	=== Impersonal relationship ===
		+
		+	Weber's believed that the ideal bureaucracy must work with impersonal relationships. To produce rational decisions it is necessary to leave out personal emotions such as passion, love, hate, etc.;
		+
		+	=== Strong rules ===
		+
		+	The ideal bureaucratic company is a strong one. To achieve stability even when the personnel inside the company are changing there must be a set of abstract rules for all circumstances. This includes all of the company rules; from specifications of particular internal processes and how to accomplish them, to permits and prohibitions for employee behaviour;
		+
		+	=== Promotions ===
		+
		+	To maintain stability and give employees a feeling of safety and security there are specific rules for promotion. Promotions are made according to achievements and seniority. Older employees (in the view of time served within the company) are higher up the ladder of competency and it is almost impossible that an individual could achieve several levels of promotion at the same time;
		+
		+	=== Technical qualifications ===
		+
		+	People are employed based on their qualifications. In the ideal model it is impossible to hire engineering qualified personnel for management functions and vice versa.

	Weber's model is an idealised design, a concept of theory, which was believed by Weber to be the most effective design for companies in early 20th century. However bureaucracies were much criticised by sociologists and philosophers, including Karl Marx, for example. They suggested that bureaucracies are used primarily to control people and have strict rules, which stifle the enthusiasm and initiative of the employees.		Weber's model is an idealised design, a concept of theory, which was believed by Weber to be the most effective design for companies in early 20th century. However bureaucracies were much criticised by sociologists and philosophers, including Karl Marx, for example. They suggested that bureaucracies are used primarily to control people and have strict rules, which stifle the enthusiasm and initiative of the employees.
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	= Information processing view =		= Information processing view =

−	The information processing view focuses on the company as a system, which receives, gathers, processes and produces information. Because there are many other similar systems outside interacting together (other companies and the environment) the organisation must deal with some degree of uncertainty. The uncertainty is defined by Jay Galbraith as 'the difference between the amount of information required to perform the task and the amount of information already possessed by the organisation' [35]. Companies need to respond to change coming from outside and adapt to survive. Tushman and Nadler [103] suggest that 'Given the various sources of uncertainty, a basic function of the organisation's structure is to create the most appropriate configuration of work units (as well as the linkages between these units) to facilitate the effective collection, processing, and distribution of information.'	+	The information processing view focuses on the company as a system, which receives, gathers, processes and produces information. Because there are many other similar systems outside interacting together (other companies and the environment) the organisation must deal with some degree of uncertainty. The uncertainty is defined by Jay Galbraith as 'the difference between the amount of information required to perform the task and the amount of information already possessed by the organisation' [35].
		+
		+	Companies need to respond to change coming from outside and adapt to survive. Tushman and Nadler [103] suggest that 'Given the various sources of uncertainty, a basic function of the organisation's structure is to create the most appropriate configuration of work units (as well as the linkages between these units) to facilitate the effective collection, processing, and distribution of information.'

	Tushman and Nadler formulate the following propositions about an information processing theory:		Tushman and Nadler formulate the following propositions about an information processing theory:

Editor at 11:55, 10 May 2018

2018-05-10T11:55:33Z

← Older revision		Revision as of 11:55, 10 May 2018
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	* Personal service company.		* Personal service company.
	* Special purpose vehicles.		* Special purpose vehicles.
		+	* Succession planning
	* Types of construction organisations.		* Types of construction organisations.

Editor at 15:25, 24 April 2018

2018-04-24T15:25:10Z

← Older revision		Revision as of 15:25, 24 April 2018
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	* Consortium.		* Consortium.
	* Contingency theory.		* Contingency theory.
		+	* Environmental scanning.
	* Limited company.		* Limited company.
	* Limited liability partnership.		* Limited liability partnership.

Editor at 16:46, 19 March 2018

2018-03-19T16:46:08Z

← Older revision		Revision as of 16:46, 19 March 2018
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	= Introduction =		= Introduction =

−	The internal structure of a company is called the Organisation Design. The internal structure of the company affects its efficiency, effectiveness and ability to respond to new opportunities, which can affect the level of organisational profit. This article discusses several organisational designs, their historical development and the advantages and disadvantages of some of the most popular designs.	+	The internal structure of a company is called the Organisation Design. The internal structure of the company affects its efficiency, effectiveness and ability to respond to new opportunities, which can affect the level of organisational profit.
		+
		+	This article discusses several organisational designs, their historical development and the advantages and disadvantages of some of the most popular designs.

	= Classical organisation theory =		= Classical organisation theory =
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	== Project designs ==		== Project designs ==

−	The modern trend in business is to supply services rather than just goods. The specialisation of companies means that they are focused on their core business and for support services they need complementary services from appropriate partners. The complete service (one-stop-shop) includes a large number of activities for the supplier. A 'complete service' could be treated as project management. The company needs to manage the whole business cycle from communicating with the customer and specifying what they need, through making or developing a product, to delivering and maintaining it. Moreover the company can have many simultaneous projects producing different types of outputs, in contrast with the classical company structure where the company produces only centrally specified types of outputs. In this form of company it is not possible to centrally plan what each unit will do because each project needs something different. To aid this business strategy the project design structure has appeared.	+	The modern trend in business is to supply services rather than just goods. The specialisation of companies means that they are focused on their core business and for support services they need complementary services from appropriate partners. The complete service (one-stop-shop) includes a large number of activities for the supplier. A 'complete service' could be treated as project management. The company needs to manage the whole business cycle from communicating with the customer and specifying what they need, through making or developing a product, to delivering and maintaining it.
		+
		+	Moreover, the company can have many simultaneous projects producing different types of outputs, in contrast with the classical company structure where the company produces only centrally specified types of outputs. In this form of company it is not possible to centrally plan what each unit will do because each project needs something different. To aid this business strategy the project design structure has appeared.

	[[File:Typical_project_organisation_structure.jpg\|link=File:Typical_project_organisation_structure.jpg]]		[[File:Typical_project_organisation_structure.jpg\|link=File:Typical_project_organisation_structure.jpg]]
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	[[File:Horizontal_organisational_structure.jpg\|link=File:Horizontal_organisational_structure.jpg]]		[[File:Horizontal_organisational_structure.jpg\|link=File:Horizontal_organisational_structure.jpg]]

−	In order to be a successful horizontal structure, all employees need to be fully informed and trained. Communication between and inside the team is crucial. People should be provided with full data, not just some parts, and in conjunction with this information an ability to interpret it to produce better decisions. Also typical is direct contact between team members and suppliers or customers. This produces less bias in information than if they were going through many layers of the organisation and makes it possible to react quickly to customer's requirements or problems.	+	In order to be a successful horizontal structure, all employees need to be fully informed and trained. Communication between and inside the team is crucial. People should be provided with full data, not just some parts, and in conjunction with this information an ability to interpret it to produce better decisions.
		+
		+	Also typical is direct contact between team members and suppliers or customers. This produces less bias in information than if they were going through many layers of the organisation and makes it possible to react quickly to customer's requirements or problems.

	As stated in Byrne [15] many American international companies like AT&T, Motorola, GE, Xerox and others have adopted the horizontal structure to increase their effectiveness.		As stated in Byrne [15] many American international companies like AT&T, Motorola, GE, Xerox and others have adopted the horizontal structure to increase their effectiveness.
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	* Excellence: Because each partner brings its core competence to the effort, it may be possible to create a 'best-of-everything' organisation. Every function and process could be world-class – something that no single company is likely to achieve alone.		* Excellence: Because each partner brings its core competence to the effort, it may be possible to create a 'best-of-everything' organisation. Every function and process could be world-class – something that no single company is likely to achieve alone.

−	= Business ~~clusteres~~ =	+	= Business clusters =

−	Even though a business cluster is not an organisational structure in its true sense it still belongs to some part of organisational theory. A business cluster 'consists of several enterprises that have entered into a formal, continuing association in order to pursue some activities in common and derive maximum benefit from such synergy [105].' This closely resembles the definition of a virtual organisation. There is a tendency for companies of a similar kind in a specific region to do business in close cooperation. These associations then bring their members a number of advantages; specialisation, lower costs per unit, better access to raw materials, production savings and bilaterally useful cooperation with institutions (universities, research institutes, consultant companies, etc.) and, very importantly, support of local governments.	+	Even though a business cluster is not an organisational structure in its true sense it still belongs to some part of organisational theory. A business cluster 'consists of several enterprises that have entered into a formal, continuing association in order to pursue some activities in common and derive maximum benefit from such synergy [105].' This closely resembles the definition of a virtual organisation. There is a tendency for companies of a similar kind in a specific region to do business in close cooperation.
		+
		+	These associations then bring their members a number of advantages; specialisation, lower costs per unit, better access to raw materials, production savings and bilaterally useful cooperation with institutions (universities, research institutes, consultant companies, etc.) and, very importantly, support of local governments.

	The business cluster's structure is usually composed of:		The business cluster's structure is usually composed of:
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	[[File:Structure_of_a_business_cluster.jpg\|link=File:Structure_of_a_business_cluster.jpg]]		[[File:Structure_of_a_business_cluster.jpg\|link=File:Structure_of_a_business_cluster.jpg]]

−	To sustain competitive pressure from many companies in the market they need to systematically gather information about their rivals and based on that information make decisions. Gathering information is sometimes a problem for small and medium-sized enterprises (SMEs), not only for financial or personnel reasons, but also because SMEs may not know what they want to find out or they do not have enough time for detailed analysis. It is therefore logical, that in this kind of situation, companies can group to form a cluster and dispense tasks across members. It also then becomes possible to support a system, which is fully or partially automated for finding, sorting and analysing information in a particular area.	+	To sustain competitive pressure from many companies in the market they need to systematically gather information about their rivals and based on that information make decisions. Gathering information is sometimes a problem for small and medium-sized enterprises (SMEs), not only for financial or personnel reasons, but also because SMEs may not know what they want to find out or they do not have enough time for detailed analysis.
		+
		+	It is therefore logical, that in this kind of situation, companies can group to form a cluster and dispense tasks across members. It also then becomes possible to support a system, which is fully or partially automated for finding, sorting and analysing information in a particular area.

	-----		-----
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	* Business process outsourcing (BPO).		* Business process outsourcing (BPO).
	* Consortium.		* Consortium.
		+	* Contingency theory.
	* Limited company.		* Limited company.
	* Limited liability partnership.		* Limited liability partnership.

Designing Buildings at 10:04, 27 December 2016

2016-12-27T10:04:08Z

← Older revision		Revision as of 10:04, 27 December 2016
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	* Business model.		* Business model.
	* Business process outsourcing (BPO).		* Business process outsourcing (BPO).
		+	* Consortium.
	* Limited company.		* Limited company.
	* Limited liability partnership.		* Limited liability partnership.

Designing Buildings at 15:14, 9 September 2016

2016-09-09T15:14:32Z

← Older revision		Revision as of 15:14, 9 September 2016
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	It is reproduced here in a slightly modified form with the kind permission of the [[User:CIOB\|Chartered Institute of Building]].		It is reproduced here in a slightly modified form with the kind permission of the [[User:CIOB\|Chartered Institute of Building]].
		+
		+	--[[User:CIOB\|CIOB]]

	= Find out more =		= Find out more =