Organisation is defined as a system by which a group of workers get together and work jointly to achieve a common goal through a system of consciously coordinated activities. The study of an'organisation involves
- the study of the interrelationships of different people or group of people in the hierarchy of an enterprise;
- an attempt to explain, predict and influence the behaviour of the individuals and groups in the, enterprise; and
- development of an effective system of communication, a means of problem solving and a means of facilitating decision making.
Thus, in general, an organisation is basically a pattern in which large number of people, in numbers large enough to make it impossible to have intimate one-to-one contact, are engaged in the complexities of various tasks and relate themselves into the conscious systematic establishment to accomplish mutually agreed purposes.
In the organisation of a construction company like any other organisational set up, there is a grouping of persons, specialists and generalists, to perform specific set of activities and bear the full responsibility of jobs allotted to them.
The organisation is not a stationary process. It is continuously changing. As an organisation expands new problems creep in. Some can be visualized, while others could not be anticipated. Various functions of management are evolved and applied to various individuals. Various groups are formed and function. Several groups are combined to form a division and several divisions to form the complete organisation. No sooner does an organisation is formed or a reorganization is effected, the situation changes and the planned structure becomes inappropriate requiring further reorganization. The situation is really volatile in the present context of rapid knowledge explosion, exponential progress of technology and stiff competition due to market globalization. What is therefore required is to design and develop an organisational structure which is capable of being modified continuously to fit in any new situation in this rapidly changing scenario without massive upheaval in the basic setup.
Once the organisational structure is designed and approved, a chart called the "organisation chart" is prepared to explain the hierarchy of the organisation, its management, decision making process and routes of communication. It also serves the purpose of indicating the career development and promotional route to the new entrants. It saves much time and energy in explaining the duties and powers to each individual and also avoid duplication of work and responsibilities. The organisation chart is prepared for the enterprise as a whole, for each of its zones, divisions, subdivisions and groups. The process of charting itself indicates the process of efficiency. An organisation which can not be charted easily and automatically indicate that there is an ambiguity and confusion in the process of decision making, responsibility sharing and communication.
A good organisational structure does not by itself produce good performance. However, u poor organisational structure do make good performance impossible, no matter how efficient and creative the individuals are. Thus, the most important aspect of management is "MANAGING THE MANAGEMENT".
In this unit, the basic parameters of organisational design, and important aspects pertaining to organisational structure, culture, environment and productivity have been dealt with. The unit also discusses the various organisational forms, their respective merits and demerits and suitability for construction organisation.
Objectives
After studying this unit, you should be able to
- define "organisation", in general, and "construction organisation", in particular and understand its basic structure,
- describe the basic parameters of organisational design and appreciate the need of organisational restructuring,
- explain the different variables identified as the dimensions of an organisational structure,
- discuss the salient features of organisational culture, environment and productivity,
- identify and differentiate the various organisational forms, and
- select the suitable organisational form for construction organisation.
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