CEM 100 with Prof. Neil Opfer

What are the two types of culture?

Module 3: Company Organization

Organization, Teamwork, & Communication

● Structure impacts:

○ Decision making

○ Costs & efficiencies

○ Overall success and sustainability

● Organizational culture

○ A firm’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior

○ There are two types of culture:

■ Formal expression

● Mission statement

● Code of ethics

● Manuals

● Ceremonies

● Memoranda

What is formal communication?

■ Informal expression

● Dress code

● Work habits

● Extracurricular activities

● Stories

○ Organizational culture ensures that members: If you want to learn more check out What is the mechanism dna uses?

■ Share values

■ Observe common rules

■ Share problem solving approaches If you want to learn more check out What is taxonomic hierarchy?

● Innovation factors:

○ Supportive corp culture: 53%

○ Top management support: 21%

○ Clear process & goals: 13%

○ Creative talent: 5%

● Organizational structure is the arrangement or relationship of positions within an organization

The arrangement or relationship of positions within an organization is called what?

● Structure develops

○ Managers assign work tasks

○ Coordination of diverse activities to reach goals

● What the organizational chart shows:

○ Organizational structure

○ Chain of command

○ Others relationships

○ Lines of communication

Assigning Tasks

● Organizational Structure

○ Purchase lumber from suppliers Don't forget about the age old question of Give examples of eukaryotic cells.

○ Fabricate roof trusses

○ Ship lumber packages and truss packages to jobs

○ Layout framing

● Specialization

○ Managers divide the labor into small, specific tasks and assign to employees to accomplish individual tasks

● Why specialize?

○ Efficiency

○ Ease of training

○ Activities too numerous

● Overspecialization problems:

○ Employees become bored

○ Job dissatisfaction

○ Poor quality work

○ Increased injuries

○ Increased employee turnover If you want to learn more check out What is the main difference between mitosis and meiosis?

● Departmentalization:

○ Grouping of jobs into working units (departments, groups, divisions, etc.) ■ Functional departmentalization

■ Product departmentalization

■ Geographical departmentalization

■ Customer departmentalization

Retailing & Wholesaling

● Selling directly to the buyer

○ Construction specialty suppliers

○ Lumber yards Don't forget about the age old question of What are the important roles in children's development?

○ Hardware stores

○ Big-box stores (Home Depot, Lowe’s, etc.)

Assigning Responsibility

● Delegation of authority

○ Give employees tasks and power to carry them out

● Employee accountability

○ Employees are answerable to a superior

● Delegation creates a responsibility

○ Obligation placed on employees to carry out the task and they are held accountable for the task

Centralization

● Centralized organizations We also discuss several other topics like What is normative age-graded?

○ Authority is concentrated at the top level

● Decentralized organizations

○ Decision-making authority is delegated far down the chain of command Span of Management

● The number of subordinates who report to a particular manager

● A wide span of management exists when a manager directly supervises a very large number of employees

○ Flat Organization

● A narrow span of management exists when a manager directly supervises only a few subordinates

○ Tall Organization

Forms of Organizational Structure

● Line structure

● Line-and-staff structure

● Multidivisional structure

● Matrix structure

Groups & Teams In Organizations

● Group: Two or more individuals who communicate with one another, share a common identity, and a common goal

● Team: a small group whose members have complementary skills, a common purpose, goals, and approach; hold themselves mutually accountable

○ Examples: project teams, product development teams, quality assurance teams (quality circles), self-directed work teams

● Committee: permanent, formal group performing a specific task

● Task force: temporary group responsible for a particular change activity Communications In Organizations

● Formal communications: flow of communication within the formal organizational structure

○ Upward & Downward communication

○ Horizontal & Diagonal communication

● Informal communication: separate from management's formal official communication channels

○ Grapevine

Construction Contracting

Chapter 3: Company Organization

Introduction

● Management of a construction company involves a large number of separate activities ● Construction contractor’s job to coordinate all activities into effective and profitable plan Organization Basics

● Establishing an effective company structure is one of the principal functions of a firm’s management

● Organizational structure is the foundation for the operating management of a business ○ Provides the operating framework that makes a successful and profitable business possible

● Primary objective of any organizational plan is to establish an effective operating routine for each element of the company

General Considerations

● Organizational frameworks must be sufficiently stable to assure action ○ Must also be sufficiently flexible and adaptive to meet changing needs ● Authority: the ability to act or to make a decision without the necessity of obtaining approval from a superior

○ May be delegated to others

● Responsibility: the accountability of a supervisor for the successful accomplishment of an assigned duty

○ May be assigned to subordinates but supervisor remains accountable to their own superior

● Duty: a specifically assigned task that CANNOT be delegated to another Principles of Organization

● Companies must devise an organizational plan that best suits their particular operation ● An effective organizational plan for the enterprise helps remove confusion, indecision, buck passing, duplicated efforts, and neglected duties

List of Duties

● A level of breakdown of a list of duties should be appropriate for the size of the company and number of employees involved

● Example of duties pertaining to different functional levels:

○ Executive

○ Accounting & Payroll

○ Procurement

○ Estimating

○ Construction Operations/Project Engineering

○ Construction

○ Yard Facilities

Division Of Duties

● After listing duties the next step is to subdivide them into groups ● The list of duties for any given position is referred to as its job description ● A large organization will likely have members with relatively narrow job responsibilities and be more specialized in their jobs

Organizational Structure And Organization Chart

● Next step after ensuring employment positions established will accomplish duties, is to link positions together into an integrated company operational structure ● Common practice to establish departments within a company that operate semi-independently from other departments

○ Referred to as developing a functional form of organizational structure ○ Each department created is divided vertically

■ Vertical division refers to the establishment of lines of supervision with each individual along a line being accountable to the person

above and acting as a supervisor to those below

Staffing

● Supervisory personnel are typically selected on the basis of their field construction knowledge/technical ability, not their management

training/experience

○ Technical ability alone does not assure managerial success

Communications

● Proper functioning of business depends on exchanging information both within the firm and with external agencies

● Periodic meetings of various groups within company management are necessary ○ Provide an opportunity to check and communicate current status of

operations, convey information, exchange ideas, etc.

The Manual Of Policies And Procedures

● Policies and procedures should be set forth in a manual made available to all company personnel

● Policies serve as guides for action by all levels of company management and provide uniform and consistent guidance in the handling of problems

● Policies and procedures manual must be explicit concerning keeping records ○ Government agencies require that certain business records are kept

The Employee Handbook

● Every company should distribute an employee handbook that describes company personnel policies

○ By doing so companies can be assured that all employees are informed and know what their expectations are

Plan Implementation And Adjustment

● All members of the team must be consulted when decisions are made concerning a wide range of details

● After the plan is finalized there is a period of adjustment as people adapt to it Responsibility, Authority, And Delegation

● Responsibility: a personal assignment for which one is held accountable

● Authority: the power to act and make decisions that are necessary in the process of meeting one’s assigned responsibilities without needing approval from a superior ● Delegation: the process of assigning specific responsibilities and authorities to individual employees

○ Object is to ensure effective functioning of the organization as a whole ○ Should emphasize productivity, quality of the work environment, sensitivity to the needs of employees, and enhancement of morale in the workplace

Making The Organization Work

● A positive environment in the workplace and a favorable work atmosphere are basic factors in a company’s employee relations program

Decision Making

● Company policy and management plan should ensure that effective business decisions are made promptly and positively

● Indecision, procrastination, and vacillation serve only to frustrate those awaiting the decision

Personnel Development

● A plan for the personal improvement of each employee is an important management responsibility

Training Of Replacements

● The development and support of aspiring talent is one of the keys to success ● A person who does not develop successors from among subordinates due to a dominant personality or fear of their job security is not an effective manager Motivation

● People within companies should be encouraged to do what needs to be done ● Motivated workers are more productive and work more safely

Summary And Conclusions

● Company organization is an indispensible management function

● Effective company owners/managers build a structure that meets the needs of the company and its employees and allows the company to fulfill its goals