This is a project-based organizational chart, showing the organization of function units and responsibilities of a specific construction project. The project manager takes the whole charge of the project, and under him is the project supervisor, who lead the overall construction work. The project supervisor needs to supervise several function units, including construction group, material division, security office, inspection, document, warehouse, etc. The construction team has two shifts, and each one with a group leader, taking control of four main activities – woodworking, steelworking, installing and plastering.
Functional Organization Structure Main Advantages:
- Offers a high level of specialization.
- Employees are possible to become experts.
- Staff working skills can be effectively improved.
- could enhance the work efficiency and productivity due to the specialized skills and technology.
- Employees are highly motivated as they see clearly their career path within the functional units.
- Functional specialization can minimize the cost of operation.
- Leads to high-quality technical problem-solving.
When referring to the functional organizational structure, employees are grouped based on their roles and functions, resulting in functional units such as marketing, HR, finance, etc. Generally, the heads of these specialized units will report to the top management of the company. According to the company’s size, the functional units might be further divided into smaller units. The sub-division type of organizational structure seems to be the most common organizational structures that many companies have applied.
KPI is shorted for key performance indicator. It is a type of business metric used to evaluate factors that are crucial to the success of an organization. It demonstrates how effectively a company is performing to achieve key business targets and let organizations know if they are on track. A KPI is a performance measurement tool, it can be associated with an org chart. By presenting the KPI in an org chart, you can clearly identify the quantifiable performance measures for each position.
Here shows a road construction company’s organizational chart:
Organizational structure is the framework of a company through which individual work can be effectively coordinated and managed. A good organizational structure should be developed based on the following principles:
The ultimate goal of organization design is to achieve the strategic objectives. Therefore, the design should aim at serving to reach the goals. It should be designed with the optimal position arrangement that makes the most benefits for the final goals.
What’s organization and what’s organizing?
Organization: Organization is a group of people who work and cooperate together in order to achieve a particular aim.
Organizing: Organizing contains the following aspects:
- Identify all business processes involved and make a classification.
- Divide key processes into groups.
- Authorize leaders to supervise each group.
- Make necessary rules and regulations.