Industry Structures and Activities

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Organizational structure is tied to the effectiveness of a company to execute its mandate. If a firm reconsiders its organizational structure, management restructuring is done to increase to increase the efficiency and effectiveness of the organization. Zaki (403) has depicted that there is no one perfect organizational structure, especially in the construction industry. The primary reasons firms engage in organizing is for responsibility, authority, and accountability. Organizing brings together duties, people, and resources for the same goal of achieving the objectives of a company. There exist four organizational structures; a company chooses the best fit structure to enable achievement of its goals. Traditional structure Five decades ago, organizational structures were a common sight since companies had one or two product lines hence conflicts were not an often occurrence. This type of structure is not commonly used in construction firms in the contemporary times. Under the traditional structure, coordination of projects is complex as much time is needed for a decision to get approval (Zaki 404). Figure 1(Zaki 404) Functional structure Functional organizational structure groups employees according to their capabilities and specialization. Functional structures work well with medium sized companies. The presence of well-developed products or services in a firm will dictate the use of functional organization structure. Career development for members who exhibit competency is possible under this structure (Zaki 406). Communication is easier due to the existence of well-established vertical channels. Functional mangers have absolute authority to control the budget where

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