ORGANISATION STRUCTURE

1. ORGANISATION STRUCTURE RMK252 Organisation Structure

2. ORGANISATION STRUCTURE Definition: “The established pattern of relationships among the components or parts of the organisation”. (K + R (85) pg. 234) “The framework in which the organisation defines how tasks are divided, resources are deployed and departments are coordinated.” (Daft : 94 : 291) RMK252 Organisation Structure

3. Or • Is defined as: • The set of formal tasks assigned to individuals and departments; • 2. Formal reporting relationships, including line of authority, decision responsibility, number of hierarchical levels and pain of manager control. • 3. The design of systems to ensure effective coordination of employees across departments. RMK252 Organisation Structure

4. Organisational Chart (Formal Structure) Position Line of Command CEO Job discription 1 A B C 2 3 1 2 3 o Level of hierarchy (vertical differentiation) o Authorityo Differentiation (horizontal) o Departmentalization. RMK252 Organisation Structure

5. FORMAL STRUCTURE • Differentiation (Pembezaan) • Integration (Integrasi) • Authority System (Sistem Authority) • Administrative system (S. Pentadbiran • Organisation Chart & Job Description. (Carta organisasi dan keterangan kerja. CONCEPT OF STRUCTURE • Specialization (Pengkhususan) • Scalar principle (prinsip skalar) • Authority (Authority) • Responsibility (Tanggung Jawap) • Associatability (Dipertanggung Jawabkan) • Sperm of control (Bidang Kawalan) • Centralize/decentralize (Pemusatan/bukan pemusatan) • (Pemusatan/bukan pemusatan) RMK252 Organisation Structure

6. Span of Control (Span of Management) Narrow Span CEO Tall/Lean o cosy chain of commando slow decision makingo rigid RMK252 Organisation Structure

7. Wide Span CEO Flat/Fat RMK252 Organisation Structure

8. Types of Organisation Structure 1. Functional Organisation CEO Production Marketing RMK252 Organisation Structure

9. 2. Production/Market Organisation Production Organisation function A B C D E products RMK252 Organisation Structure

10. Market Organisation function 1 2 3 4 - market RMK252 Organisation Structure

11. MATRIX ORGANISATION CEO Other services Function Management Manufacture Sale Finance Personel A B C Future RMK252 Organisation Structure

12. Coordination - a process of integrating the objective and activities of separate work unit (departments or functional areas) in order to realize the organisation’s goals effectively. - communication is the key to effective coordination. - coordination depends on acquisition, transmission and processing of information. RMK252 Organisation Structure

13. APPROACHES TO ACHIEVING EFFECTIVE COORDINATION • Communication is the key; • Coordination is directly dependent on acquisition, • transmission and processing of information; • Coordination as essentially an ‘information processing task. RMK252 Organisation Structure

14. APPROACHES TO ACHIEVING EFFECTIVE COORDINATION 2.Increase Coordination potentiala. Vertical info. System b. Lateral relationship • Basic ManagementTechniquea. Managerial Hierarchyb. Rules and proceduresc. Plans and goals 3.Reduce need for coordinationa. Slack resources b. Independent Management 3 - Approaches (Stoner, 323) RMK252 Organisation Structure

15. Selecting the Approapriate Coordination Mechanism - The key consideration is to match organisation capacity for coordination with its need for coordination. • How much information is required? • How much information in it capable of processing? - Electronic info-processing system is vital in modern management. RMK252 Organisation Structure

16. ORGANISATION STRUCTURE - It refers to the way in which organisation’s activities are divided, organised and coordinated. • Organisation as five-step process: • List the work for accomplishing goals. • Division of work • Departmentalization. • Coordination • Monitor effectiveness and adjustment. RMK252 Organisation Structure

17. ORGANISATIONAL DESIGN Is a process of choosing an organisational structure that is appropriate to a given strategy and a given environment. APPROACHES IN ORGANISATION DESIGN • The Classical Approach: • “One best way” - a set of principles for creating an organization structure that would be effective and efficient in all situation. - Max Weber – bureaucracy based on hierarchy structure at legalised formal authority. Lacking - Too theoritical- Bureaucracy never work- Environmental forces RMK252 Organisation Structure

18. 2. Neoclassical Approach: Try to include human relation and other social factors in the approach. Lacking - ‘One best way’ to design organisation- Strategy and Environmental consideration.- Oversimplify human motivation. • The Environmental Approach (Sturcture and strategy) • - Stable Environment • - Changing Environment – predictable changed. • - Turbulent Environment – unpredictable changed. • - Matching the structure to the environment. • - Mechanistic vs. Organic-Adaptive. RMK252 Organisation Structure

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20. Organizational Characteristics of Stable-Mechanistic and Adaptive-organic Structures. RMK252 Organisation Structure

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22. Organization Structure and Strategic Choice Organization design and structure Environmental determinants Managerial perceptions andstrategic choice Technological determinants Psychosocial determinants RMK252 Organisation Structure

23. Guidelines for Job RedesignSource: J. Richard Hackman and J. Lloyd Shuttle, eds., ImporvingLife at Work (Glenview, II: Scott, Foresman and Co., 1977), With permission of author. Suggested Action Combining tasks Skill Variety Forming natural work units Task Identity Establishing client relationships Task Significance Vertical loading Autonomy Opening feedback channels Feedback RMK252 Organisation Structure

24. Job Characteristic Model Core Job Dimension Critical Psychological States Personal and Work Outcomes Skill variety Task Identity Task Significance Experience meaningful of work High internal work motivation High quality work performance High satisfaction with work Low absenteeism and turnover. Experience responsibility of outcomes of the work. Autonomy Knowledge of the actual results of the work activities. Feedback Employee growth needs strength RMK252 Organisation Structure

25. Temporary Organisation Features of Project Organisation 1. Relationship of Project Team with client organisation Design Client Individual organisation Contractor Surveyor Planner Constuction Project Architect Q S Perform Engineer RMK252 Organisation Structure

26. 2. Interdependences Task of projects • Differentiation • Integration RMK252 Organisation Structure

27. Various Approaches 1. Traditional Method Client Arch. contractor Design team Hand on Method Sub-contractor PD Design Const. Occup. t tender RMK252 Organisation Structure

28. 2. Design and Built Client Contractor Design team PD D/B O t – t1 RMK252 Organisation Structure

29. 3. Turnkey Approach PD D/B O t – t2 4. BOOT PD D/B O RMK252 Organisation Structure

30. Project Management Non-executive Client PM/Executives(Coordinator) Design team Contractor P.M. Executive Client PM Design team Construction Team RMK252 Organisation Structure

31. Construction Management Client PM Design team Management Construction SKL Construction/Trade RMK252 Organisation Structure

32. INTEGRATING CONSTRUCTION TEAM INTO PROCESS Tendering Approaches • Open and Competitive – trade method • 2 stage • Serial • Negotiated • Management Construction RMK252 Organisation Structure

33. THANK YOU RMK252 Organisation Structure