GROUP 1

MANAGEMENT STRUCTURE

A management structure is how a company organizes its management hierarchy.

Management structures appear in every type of organization including government departments,

nongovernment organizations (NGOs), charities, and even of course in the construction industry.

We should all know that choosing the correct management structure ensures an organization’s

continued growth, content employees and profitable returns for the company and also to the

investors. If we will be choosing the wrong structure this would create such tensions between

employees and project managers, and also allows so much inefficient work practices that

supposed to be done and this would eventually reduce the profitability of the company. In the

worst case an incorrect management structure can lead to company closure and we do not want

that to happen.

In terms in construction industry, a combination of outdated management structures,

inefficient business processes, poor work-place relationships, and vague communications

between head office, project managers, engineers and the workers in site have almost caused the

collapse of management structure. This explains the different types of management structures

that are in use, their advantages and disadvantages, and provides examples of where to use each

one. In addition, it discusses other factors that should be considered when assessing management

structures in rapidly changing market conditions. Key components of management structures

There are a number of key components that underpin a management structure and should be

considered when implementing a new structure.

 A simple management structure is used predominately by small or entrepreneurial

companies; in these case, the company owner defines the tasks, communicates the strategic goals

and uses their authority to influence their staff. One important factor is the technologies that are

being used within the company in the construction industry. In terms of management structures,

technology relates to the range of technical infrastructure used to perform the company’s day-to-

day operations. For instance, the technology used within an engineering consultancy to deal with

projects that have varied amounts of complexity is very different form the technology used

within retail banking to deal with a standard set of transactions. The final factor to consider is the

measure of effectiveness used within an organization. Whilst this provides a balanced view of

performance, it takes many resources to implement and report upon and may increase the level of

bureaucracy.