ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 1

Organization Design and Supervision in Construction

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ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 2

ABSRACT

The construction sector is constantly under pressure to raise productivity, decrease

resource wastage, and increase performance predictability. Organizations that undertake

construction projects and contractors should be able to use scientific and technological

knowledge to integrate various group participants in a systematic way. In order to achieve

organizational goals, individual activities should be best coordinated and combined. To solve

these management issues, the organizations for customers and contractors must be well-

designed. In order to achieve organizational objectives and improve the performance of the

construction sector, their organizational structures must provide the framework within which

management processes have the best chance of reaching maximum performance.

This study aims to ascertain how construction firms are set up for efficiency. The three

sections of the study are as follows: introduction, problem statement, and research methods are

covered in the first portion. The development of a theoretical framework and a review of the

literature comprise the majority of the second half, while the findings, conclusions, and

suggestions that are made in light of the findings and the theoretical background are the focus of
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the third section. In light of the results, it should be highlighted that the study's hypothesis has

been demonstrated to be correct. Additionally, it should be highlighted that high performing

construction firms employ specific managerial techniques more frequently than bad performing

ones. The size of the company and the market the construction firm operates in are two

contingency elements that have a significant impact on how the structure of the company is

designed.

INTRODUCTION

The building and civil engineering sectors of the construction business collectively build,

modify, and repair a vast variety of distinct building and civil engineering structures. The

physical nature of the construction products and their demand are the primary causes of the

industry's distinctive traits. Each project is unique, and each site has its own unique qualities.

The construction business is essentially a site-based production line for other sectors'

products. Drawings, bills of quantities, and specifications depict the designer's objectives, while

trained workers complete the on-site construction and component assembly tasks. The whims of

the weather and the state of the ground might affect construction operations.

The level of activity in the construction sector is influenced by a wide range of economic

factors. These include the overall state of the economy, interest rates, the availability of credit,

and the degree of restraint on public spending. Housing-related activities frequently reflect the

overall state of the construction sector at a given time. The two main areas of activity in the

construction sector are building and civil engineering. They function well together, and many

construction contracts also call for some civil engineering work.

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Generally speaking, building work covers residential, commercial, social, and industrial

buildings and satisfies man's need for shelter, whereas civil engineering work includes the

necessary services to make the building functional. Both the public and private sectors carry out

construction projects, and the respective proportions change over time. Either direct labor

organizations or private contractors complete building construction work. For emergency jobs,

particularly in the maintenance industry, direct labor organizations are advantageous. Based on

their size of operation, private contractors can be categorized into three categories:

1.Large firms

2. Medium firms and

3. Small firms.

In terms of individual project value and project complexity, large construction firms are

capable of taking on enormous construction projects. They typically have a main office and

several branch offices spread out around the nation. They typically produce the most per worker

and are better equipped, financed, and organized, but they frequently run into issues with work

being done on widely separated and shifting sites due to centralized supervision and

management.

In Britain in the late '70s and early '80s, a sizable fraction of the major contractors

struggled with regional subsidiaries, especially during the depression. Only a small percentage of

the larger companies urged their subsidiaries to adapt to the shifting environment and enter new

markets when faced with a poor business climate. The majority of them were hesitant to change

the rules and procedures that were enforced centrally; as a result, many of them have stopped

doing business and many others are technically insolvent.

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Lansley discovered that the main causes of failure were enmity and mutual mistrust

between parent and subsidiary, lack of understanding of the need for changes in objectives,

changes in the status of key personnel, the overzealous pursuit of corporate harmonization, the

inappropriate location of specialist staff, poor power dynamics between unit and parent, and the

adherence to "top down" corporate planning with little involvement from subsidiaries. However,

as a new generation of managers with a better awareness of current circumstances and demands

emerges, the position is shifting.

Medium-sized construction companies frequently take on both building and civil

engineering projects, and they frequently take on relatively substantial contracts. There is

evidence of some polarization between big and small businesses.

The survival of these businesses depends on sound management, which is founded on

efficient training, knowledge, talent, and diligence. They are better financed and outfitted than

small construction enterprises and employ fewer workers than big construction companies.

Compared to large and medium-sized construction firms, small construction firms employ fewer

workers and prefer to operate close to their offices, only traveling further away in exceptional

circumstances.

When compared to the projects conducted by large and medium construction firms, the

construction work carried out by small firms primarily consists of minor new building projects,

renovations, repairs, and maintenance, as well as tiny extensions to existing buildings. A person

or group of people launching a construction company must be aware of every factor that will

influence the company both now and in the future. These elements include the organization of

the company in relation to the kind of work it does, as well as its legal and financial framework.
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 6

Throughout the course of the company, the applicability of the various choices to the structure of

the company is equally crucial. While one type of structure could be acceptable for a new

business, another type might be ideal as the business expands and has more operational

capability.

The type of work the construction firm will execute, the size of its operations, and the

contract relationship it will have with the builder owner are some of the decisions the firm must

make in relation to launching and operating the business. The owners', employees', financial,

equipment, and organizational skills all have a role in determining the type of job the company

will undertake. In the past, many building companies were founded by people who were skilled

artisans. As a result, an electrician who was employed usually founded an electrical construction

company. In a similar way, businesses that specialize in plumbing, excavating, etc. were also

established.

Currently, it is getting harder for a single artisan to launch a prosperous construction

company. The average modern construction company is getting bigger and depends more and

more on managerial abilities. Thus, the founder's physical abilities are no longer the primary

factor in determining the type of labor to be done. Additionally, today's contractor frequently

expands his business to encompass executing a variety of jobs, when in the past there was a

distinct distinction between the types of work a firm conducted.

PROBLEM STATEMENT

The building and construction sector has experienced challenges including a lack of

skilled labor, a restricted supply of locally produced materials, and a number of delays in project

completion. One cannot overstate how crucial it is to keep contracts on time and minimize
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delays. Benefits in construction time are significant because they translate into genuine financial

savings for the building owner, provided that the time saving is not fundamentally more

expensive. The building owner benefits from a shorter contract duration by paying less to the

contractor for the structure's construction as well as by paying less for carrying costs. The

building and construction sector has experienced challenges including a lack of skilled labor, a

restricted supply of locally produced materials, and a number of delays in project completion.

One cannot overstate how crucial it is to keep contracts on time and minimize delays.

Benefits in construction time are significant because they translate into genuine financial

savings for the building owner, provided that the time saving is not fundamentally more

expensive. The building owner benefits from a shorter contract duration by paying less to the

contractor for the structure's construction as well as by paying less for carrying costs. Reduced

overhead or preliminary costs for the builder are responsible for the decreased construction costs.

The builder's primary equipment, like cranes and hoists, as well as his management team, such

the project manager and general foremen, are all on the job for a shorter time, which results in a

lower cost.

Many construction projects have run over budget and taken longer than expected to

complete, and some have performed below what would be considered acceptable levels. The

construction sector is under pressure to increase productivity, decrease resource waste, and raise

performance predictability. Implementing organizations lack the ability to effectively integrate

multiple group contributions through the use of scientific and technological expertise.

Additionally, they lack the ability to properly and efficiently manage in the sense that defined

objectives are accomplished through the greatest possible coordination, integration, and

compounding of individual efforts. Efficiency of an organization encompasses more than just

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short-term financial objectives; it also takes into account factors like a sufficient workforce,

employee motivation, job happiness, and social and broader societal concerns.

To solve these management issues, the organizations of the customer and the contractor

must be thoroughly thought out. In order to achieve optimal performance in the service of

organizational goals, these companies' organizational structures must offer a framework for

management processes. Because they can't figure out how to reorganize their business to match

their managerial ability to the volume of work, most organizations, including construction

businesses, never reach their full potential. Structures are formed and constitutive, which means

that they are not static and that they both influence how an organization operates.

Both internal and external (contingency) elements must be taken into account when

creating organizational structure, and changes to any of these aspects must lead to reorganization

of the structure. Which organizational structure format to choose for his organization and how to

allocate responsibility while monitoring control and strategy setting are the two main challenges

facing the manager. The manager's main challenges are deciding which organizational structure

format to use for his company and how to allocate power while keeping an eye on control and

strategy implementation.

OBJECTIVE OF STUDY

To ascertain the connection between construction firm performance and organizational

structure. Goal (target) attainment, company growth, market survival in a competitive

environment, and employee satisfaction are all used as performance indicators.

STUDY HYPOTHESIS
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A construction firm's performance is significantly impacted by its organizational

structure.

SCOPE OF STUDY

In the past, building industry researchers have focused on the actual buildings,

particularly on construction materials and technological advancement. Construction business

management and organization haven't gotten much attention. If no one is going to combine the

unique abilities of its members and new suitable building materials in the best way to meet a

specific client's objectives, there is little sense in the construction industry creating them. There

is a client organization and a contractor’s organization in a building project. Both of these

partners are necessary for the project to be successful. A party's failure to fulfill a contractual

commitment has an impact on how well the project as a whole will function. Sefu studied the

organizational structures of organizations that implement public projects (i.e., clients

organizations), and they came up with a number of recommendations for the best client

organizational structure to be created in order to enhance the performance of public building

projects.

Therefore, this study focuses on the contractor’s organization and seeks to understand

how their organizational structures are created to enhance performance. The companies under

investigation are general contractors working on government-funded projects and are so

registered with the Department of Public Works. Because subcontractors and material suppliers

are all grouped under the main contractor, who oversees overall administration and attendance,

the overall execution of a building project rests on the main contractor. For the construction of

the building project, the general contractor has a contract with the customer, and the
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subcontractors have contracts with the general contractor. Since his contract is solely with the

general contractor, the client does not have to deal with other parties. Additionally, it enables the

subcontractor to focus on his area of expertise while largely delegating project management

duties such as scheduling to the general contractor.

Metric that may be used to gauge an organization's performance include:

1.Goal and objective achievement

2. The company's expansion.

3. Employee contentment.

4. Return on capital invested.

5. Efficiency.

The effectiveness of a structure depends on how successfully it has been able to

accomplish the aims and objectives of the company because structures are created to fulfill

organizational objectives.

STUDY AREA

The structure of major, medium, and small general construction enterprises in Islamabad

is analyzed in the study. A pilot survey conducted by the Pakistan Public Works Department

found that there are 3824 general contractors, 830 of which are situated in Islamabad. There are

115 major, 245 medium, and 446 small construction enterprises among them. Islamabad has the

most contractors overall compared to other Pakistani districts. The majority of contractors have

headquarters in Islamabad and subsidiary offices throughout the rest of the nation. Therefore, the
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research on contractors in Islamabad can be extrapolated to describe how contractors behave in

Pakistan. Regardless of where the company is located, the organizational structure of

construction firms conducting similar types and sizes of work will be the same.

METHODOLOGY

The Pakistan Public Works Department's categorization was utilized to help divide the

contractors into major, medium, and small sized contractors in order to meet the goals. The

Pakistan Public Works Department divides contractors into the following groups:

CATEGORY CONTRACT SUM (in PKR)

A 30,000,000+

B 2,000,000 - 30,000,000

C 1,000,000 - 2,000,000

D 500,000 – 1,000,000

E 250,000 - 500,000

F 150,000 - 250,000

G 74,500 - 150,000

H 0 - 74,500

The aforementioned classification is based on the work the company has done (in terms

of value), the qualified employees it employs, and the construction projects it started and finished
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five years prior to applying to the Pakistan Public Works Department to be added to the list of

contractors eligible to work on public projects.

Therefore, for the purposes of this study, the categorization serves as a framework for

identifying large, medium, and small construction enterprises as follows:

CATEGORY CLASS OF THE FIRM

(i) A & B LARGE FIRMS CONSTRUCTION

(ii) C, D & E MEDIUM FIRMS CONSTRUCTION

(iii) F, G & H SMALL FIRMS CONSTRUCTION

Category No of Class of firm No of

contractors contractors in class

A 90 Large firm 115

B 25

C 45 Medium Firm 245

D 130

E 70

F 120 Small Firm 446

G 226

H 100

Total 3824
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Contractors who had registered with the Pakistan Public Works Department were

generally identified and then categorized into the categories above. Each construction company's

name was scribbled on a piece of paper, which was afterwards grouped together according to the

contractor's class before being mixed up. The names of the contractors were then randomly

selected from a sheet of paper and written down in order of selection. Next, systematic random

sampling was used to select every third contractor name, starting with the first on the list, for an

interview. To prevent prejudice in the selection of contractors, this was done to each type of

contractor.

260 carefully chosen construction companies received questionnaires from research

assistants. The information gathered covers each company's history, ownership, completed

projects, their projected and actual completion times, and their estimated and actual expenses.

The number of permanent employees at each company, their relationships with one another, and

the numerous channels used for coordination and communication. The organization of the

company and the efficacy of communication are highlighted by this data.

Utilizing indicators, such as those for goal attainment, development, and employee

happiness, performance is assessed.

Organizations are effective to the extent that they accomplish their goals, meet the needs

of their members, and develop in their capacity to do both of these things over time (Levitt, R. E.

et al.,1984). To compare organizational performance and goal accomplishment, the goals of each

construction company were determined, and their output was examined. Most businesses have a

variety of objectives, some of which are difficult to gauge. As an illustration, consider participant

pleasure, greater output, or long-term viability. Recognizing different objectives and assessing
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organizational performance on a range of pertinent aspects are crucial. Effectiveness (the extent

to which goals are met), efficiency (the use of resources in achieving goals), and participant

satisfaction are all examples of performance measures (the motivation climate). One way to shed

some insight on how these organizational structures affect project execution is to examine the

projects that the organization has undertaken.

To investigate how contingent elements, such as age and size, market served, and

technology employed, influence the designing of organizational structure, construction firms are

categorized into large, medium, and small size firms. The structures of the firms in each class

that were chosen at random were examined and contrasted with the conceptual framework

created (Zueva, D. et al.,2019). This model aids in determining which of these elements is having

the largest impact on an organization and, thus, has the greatest influence on its character in a

given situation. This approach assisted in determining if building firms exhibit. If the

organizational structure of construction firms is comparable to that of other business enterprises,

then they respond to situational factors in a manner that is similar to other business-oriented

organizations in responding to those situational factors that have been shown to influence

organizational structures and procedures.

After data was gathered through questionnaires and interviews, comparative analysis of

each class of contractors was done with an emphasis on unforeseen circumstances. It was crucial

to include numerous construction firms in each class in order to determine the links and trends

that contribute to effective performance. The comparative method's central idea is the systematic

comparison of a sizable number of organizations in order to forge connections. Investigating the

significant traits, traits, or attributes that are shared by all businesses in a class is another strategy

in comparative analysis.
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What features are crucial for comparison purposes is the main query in this kind of

investigation. Researchers have found that a crucial characteristic of technology is its nature

(whether it be routine or non-routine), and they have indicated that businesses using similar

technologies should have similar structural designs. As the primary variables, some scholars

have concentrated on the environment (certain or uncertain) or aims (profit or service).

Organizational size, structure, participant characteristics, decision-making processes, and

leadership styles are just a few of the variables that have been employed in comparison studies.

There is a growing understanding that no single attribute is suitable for comparison.

LITERATURE REVIEW

Structure of Organization

Different authors have characterized organizational structure in different ways. It can be

summed up by saying that it is a set of interrelationships, authorities, and responsibilities

developed between the contributors to accomplish the goals of the company. The division of

labor, where individuals are assigned various tasks or occupations within an organization, is one

implication of this notion (Tokarskiy, A. et al.,2019). Another implication is that organizations

have ranks or a hierarchy, and the roles that people fill have rules and guidelines that, to differing

degrees, outline how those who hold those roles are to behave.

1.Three essential purposes are served by an organizational structure:

It is meant to accomplish organizational objectives and deliver organizational outputs.

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 16

2. It is intended to reduce, or at the very least, control, the impact of individual

differences on the organization. Structure is established to make sure that people follow

organizational requirements rather than the other way around.

3. It is the environments in which authority is exercised (structure also establishes or

determines which positions have authority in the first place), decisions are made (the information

flow that goes into a decision is largely determined by structure), and organizational activities

are carried out.

Beyond the assessment of the degree of discretion used, the organizational structure

affects an individual. For instance, a person's attitudes to an organization are influenced by their

position within the organization, such as clerk, supervisor, or middle manager2. Although

demographic factors like age or sex are also crucial, it seems that an individual's positions are

more significant (Topchiy, D.et al.,2019). Similar to this, an individual's job happiness is

influenced by organizational structure. While some employees are happier in one sort of

organizational structure than another, others like a different style.

Human qualities and structural features interact; in fact, some things that would seem to

be the results of individual activities may actually have significant structural ties. For instance,

an organization's ability to innovate, which is typically regarded as being essential to its

existence, would depend on the skills of its members. However, (Baldrige and Burnhom) found

that structural factors—such as organizational size and complexity—along with environmental

traits were more closely associated to organizational innovation than individual factors—such as

attitude, age, and education. This may not be the case. The key is that human traits combine with
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 17

organizational structural characteristics to produce the events within organizations, not that

people are irrelevant.

The goal of organizational structure is to realize desired goals, goals that convey the

shared goals of roles and organization's constituent parts (Enshassi, A. 1997). This is usually

disregarded or buried behind the fixation with accurately and elegantly describing the structure

in an effort to be thorough. A written organization structure should be sufficiently clear to enable

the following: 

1. Work is expected, positions are planned and related, and staffing may be finished in

time to take advantage of upcoming job possibilities without being caught off guard.

2. Oral discussions and agreements regarding working relationships can be validated in

writing, particularly when used as a constant reference point, which increases the possibility of

ongoing understanding about each person's role in the workplace.

3. All those impacted by any change in duties can receive prompt, accurate, and nearly

contemporaneous information about the change.

Organizational structures must be sufficiently dynamic for those in charge of them to

respond to environments of increasing change promptly and productively by taking business

risks. Only a portion of this change, whether it be technological, political, social, or economic,

can be accurately predicted. Therefore, responsibilities must be laid forth in a way that

encourages people to seek out and take advantage of the new chances given by this developing,

mainly unexpected future (Yurgaytis, A.et al.,2018). The design of each individual position must

also be sufficiently adaptable to accommodate and take use of the wide range of individual

characteristics. Every manager's job requires ongoing planning, creating, and modifying of the
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 18

organizational structure to accommodate new opportunities and requirements. Too often,

however, this type of planning is seen as an unneeded interruption rather than as a fundamental

part of managerial job. The use of authority allows managers to subordinate sets of activities and

advance organizational unit cooperation. It is the instrument that a manager uses to exercise

judgment and foster individual performance. Formal and informal organizations can be separated

in groups.

FORMAL ORGANIZATION

Organizations are social units (or human groupings) that are consciously built and rebuilt

to pursue particular objectives. Organizations exhibit certain traits.

1.Divisions of labor, authority, and communications responsibilities that are not made

haphazardly or in accordance with conventional patterns but that are consciously organized to

facilitate the achievement of particular objectives

2. The existence of one or more power centers that manage the organization's coordinated

activities and steer them in the direction of its objectives. In order to improve the organization's

effectiveness, these power centers also continuously assess its performance and, where

necessary, reorganize its structure.

3. Personnel substitution, wherein unsatisfactory individuals may be fired and new hires

may be given their responsibilities. A company can restructure its workforce by promoting and

transferring employees.

Formal structure, which is prescriptive in character and serves as a "blueprint" for how

activities should be related, is often the outcome of explicit decision-making.It is typically

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outlined in formal documents such as role descriptions and organization manuals and is

represented by a printed chart (Huang, C. 2020). Even though it does not make up the entire

organizational system, the formal structure is crucial. It establishes a broad framework and

outlines specific mandated duties, responsibilities, and the connections between them.

INFORMAL ORGANIZATION

Informal organization describes parts of the system that are not expressly designed but

develop naturally from participant interactions and activity. Chester Bernard defines informal

organization as any shared human action without a deliberate shared goal, even if it contributes

to shared outcomes. "A network of personal and social interactions not developed or needed by

the formal organization but forming spontaneously when people associate with one another,"

according to Keith Davis, describes an informal organization. The organization's size, the actual

persons engaged, the issues the group is facing, its shifting leadership, and the ongoing

transformation process all have an impact on these dynamic interpersonal interactions. Managers

need to understand the informal organization and keep a respectful distance from it.

Every company, including construction firms, has both formal and informal

organizational structures. Formal groups are a product of the social nature of humans, who

require acceptance from others and a sense of belonging. This serves as motivation in and of

itself. On construction sites, informal gatherings can be seen during break times, particularly

around lunch and after work.

SIMPLE COMPONENTS OF AN ORGANIZATION

An organization is composed of five fundamental components.

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Strategic Apex

Technostructure Support staff

Middle line

Operating Core

Fig1: Basic components of an organization

OPERATING CORE

The operators who carry out the fundamental tasks that lead directly to the creation of

goods and services make up the operating core of the company. The operators carry out four

primary tasks.

They do four things:

1) protect the inputs needed for production,

2) convert the inputs into outputs,

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 21

3) distribute the outputs, and

4) directly support the input, transformation, and output operations.

Every organization's working core, or the section that generates the vital outputs that keep

it alive, is its beating heart. Organizations, with the exception of the smallest, must develop

administrative components (Blismas, N.et al., 2012). The strategic apex, middle line, and

technostructure are included in the administrative components.

THE STRATEGIC APEX

The organization’s strategic apex is at the top. Those in charge of the organization's overall

management can be found here. Those who directly help the senior management are included in

this. The strategic apex is in charge of making sure that the organization effectively carries out

its objective as well as the needs of individuals who control or otherwise have authority over the

organization (Choudhry, R. M.et al., 2016). There are three sets of obligations in this.

1.The managers of the strategic apex and middle line are responsible for implementing

this process of coordination to the extent that the organization depends on it to ensure that

everything works together as a cohesive whole.

2.Management of the organization's boundary conditions, or its interaction with the

environment, is item number two.

3.The creation of the organization's strategy is the subject of the third set of

responsibilities. Strategy could

regarded as acting as a liaison between an organization and its surroundings. Therefore,

developing a strategy includes interpreting the environment and creating recurrent patterns in
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streams of organizational decisions to address it. Thus, in order to manage the boundary

conditions of the organization, the strategic apex develops an understanding of its environment.

In performing the duties of direct supervision, they seek to tailor a strategy to the organization's

strengths and needs, trying to maintain a pace of change that is responsive to the environment

without disrupting the organization. In particular, in the entrepreneur role, the top managers look

for effective ways to carry out the organization's tasks.

MIDDLE LINE

The chain of official middle-line managers connects the operating core to the strategic

apex (Endenburg, G. 2006). The first line supervisors, who have direct control over the operators

and represent the coordinating mechanism known as direct supervision, are at the end of this

chain, which starts with the senior managers immediately below the strategic apex.

The middle-line manager is directly supervised above and below and is responsible for a

variety of tasks. He gathers "feedback" data on his unit's performance and typically aggregates it

before passing some of it to the managers above him.

More than just engaging in direct supervision is expected of him. He also must manage

horizontal boundary circumstances connected to his own unit's surroundings.

Other divisions of the larger company as well as groups from outside it may be a part of

that environment.

TECHNOSTRUCTURE

The analysts who support the organization by influencing others' work are found in the

technostructure. These analysts may create, plan, modify, or train others to carry out the
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 23

operating work flow, but they do not carry it out themselves. As a result, the technostructure is

only effective when it can apply its analytical methods to enhance the effectiveness of others'

efforts. These analysts are focused on adapting the company to the changing environment, while

those who are preoccupied with control are establishing and maintaining consistent activity

patterns across the organization (Avenier, M. J. 2010). Three different standardization kinds are

matched with three different sorts of analysts. Those who standardize work processes include

work study analysts; those who standardize output include planning and control analysts (such as

long-range planners, budget analysts, and accountants); and those who standardize skills are

personnel analysts (such as trainers and recruiters). Technostructure performance is possible at

all levels of the hierarchy in a fully evolved organization.

SUPPORT STAFF

A considerable number of specialist units exist in almost every large organization to

provide support to the organization outside of its normal operational processes. The presence of

support personnel demonstrates the organization's efforts to include more and more boundary

operations in order to eliminate ambiguity and exert more direct control over its own affairs.

The majority of support units are independent, miniature organizations that typically have

their own version of an operating core.

These units draw resources from larger organizations and then use those resources to give

them specialized services.

However, they operate separately from the primary working core and are only loosely

connected. However, there are other support units that are connected to units above the

functioning core in a sequential or reciprocal order. Depending on who will be using their
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 24

services, support units can be found at different levels of the hierarchy. In order to establish

coordination among its contributors, certain management principles are taken into account when

designing an organizational structure (Zabelle, T. 2001). Each organization is divided into

different sections, with each section carrying out a particular function with the intention of

attaining the overall organization's objectives.

MECHANISM FOR ORGANIZATIONAL COORDINATION

Coordination uses a variety of techniques. Although it should be highlighted that they are

equally concerned with control and communication as they are with coordination, these can be

referred to as coordination mechanisms.

The essential methods by which organizations coordinate their work are explained by five

coordinating mechanisms (Raveendran, M. 2013). This ought to be seen as the structure's

fundamental building blocks and the adhesive that binds institutions together. This include:

MUTUAL ADAPTATION

Mutual adaptation, which places control of the job in the hands of the workers, achieves

coordination of the labor through a straightforward process of informal communication. Mutual

adjustment is a coordinating technique that is naturally used in the most basic of organizations

since it is so straightforward.

Ironically, because it is the only one that functions under extremely challenging

conditions, it is also used in the most complex organizations.

DIRECT SUPERVISION

An organization switches to a second coordinating mechanism as it evolves beyond its most

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 25

basic form. By having one person take charge of the work of others, give them directions, and

keep an eye on their behavior, direct supervision produces coordination.

STANDARDIZATION OF WORK PROCESS

When the contents of the work are predetermined or programmed, work procedures

become standardized. When the plan (for the task) is defined, the coordination of elements is

included, and the need for ongoing communication is subsequently diminished.

STANDARDIZATION OF OUTPUT

When the outcomes of the work, like the product's dimensions or performance, are

specified, the outputs are standardized.

STANDARDIZATION OF SKILLS

When the type of training necessary to accomplish the work is established, skills (and

knowledge) can be standardized even when neither the work nor its results can always be

standardized.

The five coordinating mechanisms are roughly arranged in this manner. The preferred

methods of coordination change as organizational activity becomes more complex, as depicted in

figure 2.
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 26

Standardization of
work

Standardization of
Mutual Adaptation Direct Supervision Mutual Adaptation
output

Standardization of
skills

Fig 2: MECHANISM FOR ORGANIZATIONAL COORDINATION

None of the processes are really necessary for a lone worker. One brain is all that is need

for coordination. But when you add a second person, everything is really different. Now, cerebral

coordination must be achieved. People who operate side by side in small groups typically
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 27

acclimate to one another informally. Mutual adjusting turns become the preferred method of

collaboration.

As the group grows, its capacity for informal coordination decreases, necessitating

supervision. As a result, there is a need for leadership, and one person takes charge of the group's

task. In essence, we're going back to one brain, which now controls others. The preferred method

of coordination is direct supervision.

Another significant change frequently happens when the work becomes more complex. In

contrast to the previous one, where some work control passed from the employee to a supervisor,

standardization is now the focus. The organization is prone to rely on work standardization when

the duties are straightforward and routine (Rohner, P. 2009). However, increasingly complicated

work may make this impossible, forcing the organization to standardize outputs that define the

work's outcome while leaving the workers' choice of process up to them.

However, in complex labor, the outputs frequently cannot be standardized either,

therefore, if possible, the company must settle for standardizing worker skills. Advanced

problem solvers dealing with extremely complex situations must communicate informally if they

are to complete their work. However, should the organization's divided task prove impossible to

standardize, it may be forced to return to full circle, favoring the simplest, yet most adaptable

coordinating mechanism - mutual adjustment. There is a greater demand for a communication

system between these elements after building the fundamental components of an organization

and coordination mechanism.

SYSTEM FOR ORGANIZATIONAL COMMUNICATION

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 28

Information is transferred through communication when the sender and recipient can both

understand what is being said (Weick, K. E. 2003). According to Chester Bernard,

communication is the mechanism that binds members of an organization together to work toward

a common goal; in fact, group action is impossible without communication because coordination

and change cannot be implemented. In an organization, communication serves the following

purposes:

1. establishing and communicating an organization's goals;

2. creating plans to achieve them;

3. allocating people and other resources in the most effective and efficient manner;

4 choosing, fostering, and evaluating organization members;

5. leading, directing, inspiring, and fostering an environment where people desire to

participate;

6.Controlling performance.

Communication moves in three different directions in a successful organization:

downwardly, upwards, and across. Additionally, communication occurs diagonally, involving

individuals from various organizational levels who are not directly reporting to one another, and

horizontally, involving individuals on the same or comparable organizational levels.

Downward communication

People at higher levels of the organizational structure communicate with those at lower

levels in a downward fashion. There is usage of both written and oral communication. These
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 29

include directives and work instructions that are conveyed lower down the chain of command,

beginning at the strategic apex or a middle-line position and becoming more detailed as they do

so.

Upward communication

Upward communication moves up the organizational hierarchy from subordinates to

managers.

Specific information concerning production performance, market data, and functional

data must be known to upper management. As a "management information system," or MIS,

known as the upward control system, performance data is gathered and coded beginning in the

operating core. This information is consolidated as it moves through the hierarchy, reaching the

strategic apex as a wide overview of the performance of the entire organization.

Crosswise communication

The horizontal and diagonal flows are included in this. This style of communication is

used to improve comprehension, speed up the flow of information, and coordinate activities to

meet organizational goals. This flow of communication between the line and the staff was

created to provide information and recommendations from the staff to the line's decision-making.

The technical and support staff are on the other side of the line managers in horizontal

communication.

The organization's ability to coordinate actions through communication is essential to its

very survival. Only efficient communication can lead to coordination and integration. Lesikar
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 30

created a simpler communication model that focuses on the context in which communication

occurs, as seen in figure

Fig 3: Simplified communication model By R.V. Lesikar

The model depicts fundamental information transfer from a sender to a receiver as well as

a variety of other crucial factors that may affect transmission.

FINDING AND ANALYSIS

This chapter examines how construction companies are set up to carry out the building

tasks that their clients require. The goal is to determine how successful these structures are at

carrying out their goals and upholding a high degree of performance. The study's contractors

comprise the previously mentioned small, medium, and large construction enterprises

(Rowlinson, S. M. 1996). Within this broad category of contractors, an effort is made to identify

existing constructions. The internal and external (contingency) factors that affected the design of
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 31

these structures are identified, and they are contrasted with what has been covered in the

literature study and within an organizational analysis framework.

In particular, factors that affect internal design to achieve internal consistency, such as

coordination mechanisms used in each category of contractors, components of the company that

affect how it operates, internal organization design parameters, and communication system are

established to see if they are inconsistent with factors already covered in the previous chapters.

Contingency variables include the firm's size, as measured by the number of employees,

departmentation (unit size), and the type of construction projects it takes on.

Whether the building project involves basic or complicated building structures, the

technical system the firm uses is regarded in terms of the method of construction the firm uses.

Companies create their organizational structures to achieve their goals (objectives). The

management process includes structuring, and the effectiveness of management has a profound

impact on every facet of behavior within an organization. Management policies have a strategic

component that gives the company a chance to perform successfully and an operational

component that has to do with how well the organization's internal tasks are carried out. The

study examines how internal design and contingency factors affect how structures are designed

and how the performance of the structure is affected.

The data gathered is shown in the table below.

Large Firms Medium Firms Small Firms

No of Contractors 115 245 446

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 32

No of firms selected 38(33%) 81(33%) 147(33%)

for interview

No of firms that 17(69%) 52(64%) 93(63%)

responded to

questionnaire

Sample of response of firms

Large Firm Medium Firm Small firm

High performance 14(84%) 41(80%) 65(70%)

firms

Low performance 3(26%) 11(20%) 32(30%)

firms

Firm performance

The majority of contractors in the nation are small construction companies. The

companies in this category of contractors were discovered to carry out renovation, maintenance,

and repair, as well as modest building projects. Compared to individual projects carried out by

companies in other classes of contractors under consideration, the individual projects are

typically limited in scope and have a low economic value. According to 86% of the construction

companies surveyed, the building projects this class of contractors undertake are located in the

study's area, and just 14% carry out work in areas other than Islamabad. These 86% of

businesses favor projects in the study area because they employ fewer workers, which lowers

their transportation, maintenance, and overhead costs.

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 33

This group of contractors asserts that there is intense competition for construction jobs. In

Islamabad, the same market is served by 446 small construction companies. Due to intense

competition, 41 construction companies left the industry to start other types of businesses; these

are the companies that could not be reached by phone or registered physical address. Of the 41

construction companies, three were found to be operating furniture manufacturing and hardware

stores. Their closing was caused by the industry competition they encountered and losses

incurred from late payments.

Small businesses also lack departmental organization and trained people. These

businesses' failures can be largely ascribed to a lack of managerial talent and expertise. The

entrepreneurs started their businesses despite lacking fundamental management abilities since

they anticipated making large profits in the construction sector. Additionally, the contract

agreements' lack of a pricing structure has led to underpricing of work, which explains why

many public building projects started by this class of contractors are abandoned after they realize

they are losing money on the project due to the low prices offered for it.

The management (owner) of these businesses has a pretty straightforward connection

with his accountant. The manager takes on all of the company's management responsibilities. He

is in charge of sales, marketing, and production, which includes budgeting, planning, and project

management. He makes all of the decisions. The manager, who is in charge of both finance and

accounting, reports to the accountant.

HIGH AND LOW PERFORMING SMALL CONSTRUCTION FIRMS ARE

COMPARED
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 34

Table below compares the capital investments made by small construction enterprises to

those made by other groups of contractors.

Equipment Total owned Average No.

by 80 No. per firm

small firms

Concreate mixer 48 0.60

Lorries 54 0.68

Vibrators 29 0.38

Hoist 16 0.20

Blockmaking machine 11 0.14

Scroller 11 0.14

Total No. of 169 -

Plant/Equipment

Average No. of - 2.12

Plants/Equipment

Plant/Equipment - Small building contractors

According to 60% of construction companies, the foreman is in charge of the company's

plant and equipment, while 40% gave the management of the company that authority. When

work calls for the use of certain plants or equipment that the company does not own, it hires such

items.56% of the businesses rent out these facilities while they are not in use, while 16%

maintain and store them for future use.

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 35

According to question 21 of the questionnaire, public construction projects carried out by

this class of contractors had delays and cost more than the initial contract amount. According to

68% of the businesses surveyed, the difference between the expected and real costs is caused by

rising labor and material costs, while unforeseen ground conditions, additional work, bad

weather, and non-payments are the main causes of construction time delays.

Even though these issues aren't specifically related to the contractor, they do have an

impact on how well the building projects they work on turn out.

Particularly poorly performing construction enterprises lack a clear organizational

structure in these businesses. This has something to do with this terrible performance. The

manager is responsible for the company's general management and production functions. If work

is divided up and individuals are hired to handle particular areas, some of these issues may be

lessened.

Small construction companies tend to have centralized power, with the manager (owner)

taking on all duties. The strategic apex, which consists solely of the manager, is what makes

these businesses unique.

Because the manager controls the company, there is informal communication between the

manager (owner) and his employees, and the organizational structure is horizontal.

MEDIUM SIZED CONSTRUCTION FIRMS

The table below compares medium-sized construction enterprises with high and bad

performance.
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 36

Low performing firms High performing firms

No of firms 11(20%) 41(80%)

Objectives make profits - profits

- attract clients maximization

- attract more

clients

- achieve growth

Ownership -Sole - sole

proprietorship proprietorship

-partnership

company

Type of Building works major building

construction work maintenance and works

undertaken repair maintenance and

repair

major renovation

works

Range of PKR 4,000,000 - PKR. 5,000,000 -

individual 54,000,00 80,000,000

projects value the

firm has

undertaken and

completed
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 37

No. of permanent 2-10 2-15

employees in the

firm

Method of -competition -competition

securing contracts - negotiation - negotiation

Subsidiary firms none 18 firms have

subsidiary firms

Credit facilities 30% firms receive 67.5% firms

credit facilities receive credit

from suppliers and facilities

manufactures of

materials

Plant owned - concrete mixers - cranes

- cranes - forklift

- concrete mixers

- dumpers

- rollers

Major clients Public and private Public and private

Labor turnover 46% labor turnover 12% labor turnover

Upgrading 20% firms have applied to be 42.5% firms have applied to

upgraded to higher category be upgraded to higher

of contractors category of contractors

HIGH AND LOW PERFORMING MEDIUM COMPARISON COMPANIES

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 38

The second-largest group of contractors in the nation are medium-sized construction

companies. These construction companies have been around for a while because, on average,

66% of them were started more than ten years ago.

Contractors in this class offered a variety of opinions about the way the Ministry of

Public Works classifies construction firms. 67% stated the technique is acceptable since a

construction firm must meet a number of requirements in order to be included in a particular

category.

The determinants include the kind of job the company can do or has done, its financial

capacity, the quantity of personnel, and their education. While 11% did not respond to the

question, 20% felt that the procedure was not warranted because there were many "underhanded"

arrangements made in the registration and upgrading of construction enterprises.

45% of the high-performance firms in this class have already applied to the Ministry of

Public Works for an upgrade to a higher category of construction firms because they have met

their initial goals. Additionally, a significant portion of these contractors' contracts are

negotiated, which suggests that they have developed a clientele or made a name for themselves

in the construction sector.

Compared to small construction firms, medium firms have staff departmentation. These

divisions include of estimating, administration, accounts, and personnel. As the number of

employees and management requirements grew, these companies experienced both horizontal

and vertical growth, as contrast to small businesses, whose growth is primarily horizontal. A

middle line manager who oversees these departments is in charge of their performance and has
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 39

assigned some degree of power. Direct communication exists between these departments. The

general manager keeps an eye on the company's overall performance.

These types of contractors work on significant construction projects, maintenance and

repair projects, and major restoration projects. They carry out projects for both public and private

customers. Only 6% of these construction companies only work in Islamabad, whereas 94% of

them complete construction projects in other districts besides Islamabad. This can be explained

by the fact that these companies employ more people and are more willing to take chances than

small construction companies. This is one method of attempting to diversify a company's

operations so they can operate in more areas in order to compete in a cutthroat market.

72% of the medium enterprises were initially classified as small contractors and 72% of

the medium firms were later upgraded to the group this study classifies as medium firms. They

also showed increasing people, departmentation, and tasks undertaken. These were some of the

companies identified as high-performing medium-sized businesses, while 28% displayed a

constant structure, indicating that they began off as medium-sized businesses and are still

included in the same category as construction enterprises.

In this category of construction enterprises, there are two organizational charts that

display different links. Charts are as they are displayed in the image below.
 ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 40

General Manger

Accountant Site Manager

Foreman Foreman

Fig4: Low performing construction company structure

Around 20% of medium-sized businesses had the organizational hierarchy depicted in

figure 4, while 80% did so in figure 5.

Managing director

Contact Personnel
manager manager

Quality surveyor Site agent Accountant

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 41

Foreman Foreman
Fig 5: high-achieving medium-sized construction companies

In contrast to low performing medium construction firms, which are unable to take on

construction projects with costs greater than PKR 54 million, high performing medium

construction firms have more departments and specialized staff, as shown in Figure 5. They also

have more capital investment and take on projects with a maximum monetary value of PKR 80

million.

LARGE CONSTRUCTION FIRMS

Large construction enterprises with high and low performance are compared in Table

bellow

Low performing firms High performing firms

No of firms 3(26%) 14(84%)

Ownership - sole - sole

proprietorship proprietorship

- partnership - partnership

- company

- multinationals

Type of major - Major building

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 42

construction buildings works

undertaken works - civil

engineering

works

Range of minimum minimum

individual PKR Kshs. 8,000,000

projects 4,000,000

value the

firm has

undertaken

and

completed

Method of - completion - completion

securing - negotiation - negotiation

contracts

No. of 2-12 5-15

permanent

employees

Subsidiary 50% firms 33% firms have

firms have subsidiary firms

subsidiary

Credit 75% firms 90% firms

facilities benefit from benefit from

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 43

credit credit

facilities facilities

from suppliers

and

manufacturers

Plant owned - cranes - cranes

- forklift - forklifts

- rollers - caterpillars

- caterpillars - excavators

- vibrators

Labor 23% labor 7% labor

turnover turnover turnover

LARGE CONSTRUCTION COMPARISONS OF HIGH AND LOW PERFORMING FIRMS

In comparison to Islamabad’s medium (245) and small (446) construction enterprises, this

category of contractors has the fewest number of firms at 115.

88% of big construction companies were established between 15 and 38 years ago. Fifty percent

of the firms said yes and stated that all contractors' merit is taken into account, including capital

investment, financial capability, personnel with relevant experience, and the kind of work the

firm is capable of doing. 20% of respondents replied no and cited the fact that the current

registration process presumes a construction firm must have experience, even though some firms

are created and succeed despite having no experience. 30% of the companies didn't respond to

the question. Profit maximization, gaining more clients, and achieving expansion are among the
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 44

goals listed by these businesses in order to decentralize their operations and reach a larger

market.

84% of these businesses are single proprietorships or partnerships, while 16% are corporations or

multinationals. These companies divide their workforce into departments like people, estimates,

planning, and administration. For both public and private clients, they embark on construction

projects that entail sizable building operations as well as civil engineering operations. This group

of contractors has worked on some complicated projects that required substantial financial

investments.

 High performing large enterprises invest significantly more capital than low performing large

construction firms. Compared to medium-sized and small-sized construction enterprises, large

construction firms invest more capital. Plant managers are in charge of the plants and equipment

in 84% of the large enterprises we spoke with, while foremen are in charge of the plants and

equipment in 16%.

Plants/Equipment Low performing High Performing

firms (total no. firms (total no.

of plants/ of Plants/

equipment) Equipment)

Cranes 5 25

Concrete mixers 7 130

Lorries 10 217

Forklift 3 8

Vibrators 2 50
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 45

Exactors 2 25

Dumpers - 47

Bulldozers - 42

Rollers - 37

Total No. 29 581

Average No. Per 7.25 27.67

Construction firm

PLANT EQUIPMENT - MAJOR CONSTRUCTION COMPANIES

In comparison to 41% of medium construction enterprises that later upgraded to the group this

thesis characterizes as large construction firms, 23% of large construction firms began as small

businesses. These businesses shown an increase in staff, departmentalization, and projects done.

These companies are likewise included in the group of high-performing large construction firms

identified by this thesis, and 36% of them displayed a stable organizational structure, suggesting

that they were created and initially registered as such

 ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 46

Managing director

Contact Personnel
manager manager

Quality surveyor Site agent Accountant

Wage staff Account Staff

Foreman Foreman

figure 6.

Figure 6 represents the organizational structure from about 16% of the businesses surveyed.

These were labeled as low-performing contractors, although figure 7's organization chart is

present in 84% of the contractors in this class who were interviewed. Using the above-mentioned

performance measures, these companies were identified as high performing contractors.

 ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 47

Managing director

Contact General manager

manager

Personnel
Quality surveyor Plant Manager Accountant
manager

Site agent Wage staff Account Staff

Foreman Foreman

The managing director is responsible for the firms' overall performance and works with

other departments to accomplish organizational goals and objectives. Vertical reporting lines go

along functional departmental lines for each middle line manager. Vertical and horizontal

expansion is more prevalent in large businesses. The managing director is informed on the status

of each site by the contract manager, who oversees all construction projects the company takes

on. The measurement of the works is the responsibility of the estimator/quantity surveyor. He

works with the client's quantity surveyor to coordinate the final account and prepares

intermediate valuations.
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 48

He also participates in placing orders for domestic and nominated subcontractors. He

updates the contract manager on the firm's ongoing building projects' overall financial situation.

The plant manager is in charge of the machinery and equipment that the company owns,

and when work calls for it, the company must hire machinery. In order to reduce idle capacity, he

creates a program outlining how plant and equipment are used across numerous sites. This

allows him to rent out any plants that aren't being used. The engineer/site agent is in control of

the site and is in charge of the work being done there. He creates work schedules and plans, as

well as manages the entire site. Foremen who are in charge of different work trades report to

him. The general manager is in charge of hiring and motivating staff members, and he is

interested in the general welfare of the workforce. The general manager, who is in charge of both

finance and accounting, reports to the accountant.

The managing director serves as the strategic apex and is given overall accountability for

the company. The middle line managers are composed of the contract and general managers.

Each of these managers gathers input regarding the project performance of his own unit and

provides the managing director with that information. The technostructure or functional

specialists who support the line manager are the engineer/site agent, estimator/quantity surveyor,

and others. Their authority is restricted to their particular field of expertise, and they are in a line

of authority with one another. The fundamental labor in the creation of a building project is done

by foremen, who make up the operational core. The accountant supports the organization outside

of the regular work flow and performs staff duties.

CONCLUSION
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 49

This study was designed primarily as an investigation of the relationship between the

organizational configuration of construction firms and their performance as well as how it relates

to the model of organizational configuration of other business enterprises in terms of its

sensitivity to the contingency factors that have been found to influence the organization

configuration of other business enterprises and, as a result, pull their structure to one or other

parts of the firm.

Additionally, the study's methodology was described. It was believed that an intricate

theoretical framework was necessary in order to fully address the issue stated in the study

objectives. The data acquired through surveys and interviews was examined and observations

regarding the problem's sources were made using this framework as a foundation. While 23% of

large construction firms were initially small firms and 41% were once medium enterprises that

were upgraded to their current level, 72% of medium construction firms started as small firms

and evolved into medium firms. Due to the manager's (owner's) desire to keep control of his

company, about 18% of small construction firms, particularly those determined to be performing

poorly, have remained small firms for a number of years.

Small construction companies are typically sole proprietorships, which means that their

financial situation is entirely dependent on the business owner. Small construction companies

with poor performance eventually exit the market. Small contractors face intense competition for

construction jobs, and as a result, a company's ability to exist depends on how well it performs in

the market. However, some companies manage to endure thanks to the passion of their owners.

Small business owners take on all managerial responsibilities, including those related to finances,

production, and decision-making.

ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 50

As the owner's needs evolve throughout time, so do the company's goals. High-

performing small businesses have largely accomplished their initial aims and objectives,

exhibited some signs of development (as seen in their organizational chart), and now take on

more construction projects than they did before. In comparison to small construction

organizations, medium-sized construction enterprises are more coordinated and organized. Small

businesses interact horizontally. Small businesses expand in both horizontal and vertical

directions as they become medium-sized businesses. Delegation of tasks and decentralized

decision-making are also prevalent, becoming more so as the construction company expands

from a medium-sized to a large-sized construction firm.

A construction company's performance is significantly impacted by its organizational

structure. Anyone planning to launch a construction company needs to be aware of how crucial

the structure is to deciding the firm's performance. He must be aware of the necessity of

maintaining integration and coordination among his staff members and directing their efforts

toward accomplishing the company's goals. The structure of the corporation should be based on

elements like the size of the company and the market in which it intends to operate. While still

exercising control, he should delegate some power and make some decisions.

The choice of construction companies should include an additional dimension of

analyzing the firm's organizational structure in order to successfully complete public

construction projects. It is important to take into account the track record of the construction

company seeking for a public project. Along with other considerations, the organization structure

of the company should be a factor in choosing a contractor. To complete public construction

projects, construction companies should be chosen that exhibit the traits and organizational

structures that this thesis identifies as high performing construction firms in each category.
ORGANIZATION DESIGN AND SUPERVISION IN CONSTRUCTION 51

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