Organization and management in construction: a new approach

Operational management theory is considered and the traditional organizational problems experienced in construction and similar organizations, created by the matrix structure of management traditionally used at head office and project levels, are discussed. A new concept that is based on the formation of small but fully- independent functional companies with contractual relationships with the parent organization is introduced. The feasibility of a management structure of this type is considered. It is concluded that the new system is potentially capable of improving the productivity of resource and service groups and creating a rational basis for sharing of professional services nationwide, while at the same time improving such matters as staff motivation, job satisfaction, personal development, unity of command, ease of communication and flexibility in organization.