The different forms of organizations are as follows:
.Functional Organization:
- In this type of organization, the whole work is divided in such a way that each person has to perform a minimum number of functions and is responsible for those functions.
- All similar and related work is grouped together under one person.
- An overall functional organization can be helpful when the owner acts as the project manager with a minimum staff, depending on others for the functional expertise.
- This type of organization permits tightest discipline and control of any of organizational concept.
Line Organization:
- This is the oldest and simplest form of organization adopted in construction projects. This is similar to the military organization structure.
- Here, there is a clear line of authority and the responsibilities between the superiors and subordinates are clearly fixed.
- This type of organization is practiced in many private construction programmes and in Government construction projects.
- Facilitates quick decision making and responsibility for any mistakes can be easily fixed.
- Communication from the lower level to the top management is very much handicapped.
Line and Staff Organization:
- This type of organization has worked successfully in the manufacturing industries.
- Many construction companies evolved from a functional organization to a line and staff organization as growth required additional management strengths.
- As the name indicates, this organization is a combination of line and functional organization. The staff responsibility is carried out by the functional specialists with their knowledge and experience, while the line authority maintains discipline and stability in the organization.
- Good combination of specialist services with the project construction team.
- More job opportunities are provided.
Matrix Organization:
- In this type, an attempt is made tp preserve the strong points of both the line personnel and the staff personnel.
- A balanced matrix organization divides the power into functional and project responsibilities.
- This organization structure endeavors to solve the conflicts between the line personnel and the functional staff by opening up lines of communication at all levels through the assignment of dual reporting responsibility to the subordinate managers.
- The functional staffs are having equal powers to enforce the compliance of the project with their specialized skills in design, quality, etc.