CA3417 Management for Construction: Organizational Structures Analysis

This report, prepared for the CA3417 Management for Construction course, analyzes three organizational structures: functional, product, and matrix. It compares and contrasts these structures based on purpose, complexity, and reporting relationships. The report further explores factors that building design and construction firms should consider to attract and retain knowledge workers in the modern economy, emphasizing autonomy, diversity, encouraging mastery, reinforcing a sense of purpose, and improving employee life. The student then selects and explains the relevance of three key factors—improvement of diversity, encouraging mastery, and provision of autonomy—to their future career in the construction industry, highlighting their potential impact on their work environment and professional development. References are provided to support the analysis.

Running head: CA3417 Management for construction 1
CA3417 Management for construction
Student Name
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CA3417 Management for construction 2
Compare and contrast the following three organizational structures.
Functional organization structure.
This functional structure is considered the most common in organizations. In this type of
structure, an organization is divided into smaller departments with specific roles and tasks
(Karell, 2018). People with similar skills are therefore grouped to ensure each department or
group performs at its peak. The departments may include; sales, finance, and marketing
department.
Product organization structure.
In this structure, an organization is separated into various divisions with each focusing on
a different product or service. Therefore, each product group is controlled by a specific executive
and the executive oversees the product line and everything related to the product line (Pingboard,
2013). An advantage of this structure is that products are organized by category.
Matrix organizational structure.
The matrix organizational is blended of both the divisional and functional organizational
structure. This structure groups employees into two different operational dimensions and
therefore, employees report to two or more bosses (Thompson, 2018). An advantage of the
matrix organizational structure is that employees are responsible for both organizational and
departmental projects.
Similarities.
1. Reporting relationships.
All the structures have overall bosses to whom they have to report both their activities and
progress of processes.
2. Performance.
Even though some of the structures are complex, efficiency in performance is achieved through
applying the various structure in organizations.
3. Purpose.
Each structure has its own detriments, benefits, and detriments that ensure organizations meet the
needs of a specific market.
Differences.
1. Purpose.
In the matrix structure, employees are grouped into two different operational dimensions.
On the functional structure, an organization is divided based on specialized functional areas such
as sales, finance, marketing, and production for the purpose of management (Dili, 2017). Lastly,

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in product structure an organization is separated into various divisions with each focusing on a
different product or service.
2. Complexity.
The matrix structure is more complex majorly due to the two organizational structures in
place. Secondly, the functional structure is regarded as convenient and simple to manage (Dili,
2017). Lastly, the product structure is not as complex as the matrix structure; however, the
structure suitable for larger companies.
3. Reporting relationships.
In the product organizational structure, several teams report to a single manager;
however, decision-making and authority rest on the team members. In a matrix structure,
employees are assigned to two or more managers to who they can report their progress. Lastly, in
the functional organization structure, managers of various functional areas report to one overall
boss that is responsible for all the operational areas (Dili, 2017).
Factors that should be considered by the building design/construction firms to attract and
maintain the knowledge workers.
In the construction and building industry, the lack of experienced and project managers
and professionals has created a hiring crisis that is affecting building/design construction firms
(Peiffer, 2016). Therefore, construction and building firms should take an introspective look at
various factors that allow them to employ various practices to attract and maintain knowledge
workers as well as create a better environment for employees.
To begin with, we have the provision of autonomy. The construction industry is regarded
by most employers to be very controlling and having low flexibility. This means the firms have a
hard time letting go or delegating control to other people (Abuzeinab, Arif, Qadri, & Kulonda,
2018). Therefore, methods to minimize micromanagement, as well as offer increased autonomy,
should be adopted. The methods include; being open-minded to multiple ways of completing a
task, listening to employees needs and goals, cultivating a yes mentality and having the patience
for mistakes. In addition, creating a sense of autonomy is crucial for attracting millennial
workers who seem difficult to attract (Peiffer, 2016). Maintaining existing workers also becomes
easier.
Secondly, we have an improvement in diversity. Lack of diversity is another issue that
affects the construction industry. Having a more diverse workforce attracts more workers at a
time specifically when more people are needed. According to various studies, diversity helps
increase innovation as well as the ability to retain and attract quality people (Adogbo, Ibrahim, &
Ibrahim, 2015). In addition, people want to work in organizations that value them regardless of
their culture, race, gender, or values. According to Debra Nelson, an executive of Brasfield &
Gorrie construction firm, the construction industry is struggling to attract workers specifically
young and vibrant ones, and therefore, increasing diversity may allow the companies attract
more people who think differently hence allowing the companies to outperform and outthink
competition (Peiffer, 2016). Therefore, forming diversity steering committees that perform

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culture surveys and audits can be essential in raising awareness of diversity across all levels in
construction firms hence maintaining and attracting the knowledge workers.
Thirdly, we have encouraging mastery. Construction firms need to provide employees
with opportunities to master and continually learn their craft. According to the CEO of Batson-
Cook Construction, Randy Hall, one of the most efficient ways of encouraging mastery and
continual learning is through leadership programs (Peiffer, 2016). Through leadership, training
can be conducted across various employees hence enabling them understand various parts of the
business they might not easily see. Besides, companies that promote leadership programs or
tracks allow employees to strive for such programs hence creating a sense of honor for workers.
This may become an intrinsic motivation for the employees within the organization hence
maintaining them (Schultz, 2017). Attracting knowledgeable workers from outside also becomes
easier and efficient.
Fourthly, reinforcing a sense of purpose. By clearly reinforcing the purpose of a firm,
keeping employees happy with their jobs as well as improving job retention becomes
uncomplicated (Hickman, & Silva, 2018). This is because employees are able to understand what
and why they are working towards hence having the motivation to achieve the goals and
objectives in question. In addition, in order to attract and maintain dynamic workers, providing
the workers with a reinforced vision and purpose of the company keeps them happy and
articulated to achieve the vision.
Lastly, we have improving the life of employees. This goal is somehow difficult to
achieve but contributes most to ensuring employee retention. Every employee desires a better
lifestyle and therefore, if that is provided to them, increasing productivity and loyalty to the
organization they work for becomes achievable (Hedley, 2015). For instance, providing health
and wellness programs to construction employees may improve their lives in one way or another.
In addition, encouraging employees to speak up when they are going through hard times or
having family-related obligations may create a sense of respect and trust between employees and
employers (Peiffer, 2016). Therefore, the probability of maintaining and attracting other
knowledgeable employees into the workplace increases exponentially.
Application.
Among the factors highlighted, three of them that stand out for me include; improvement
of diversity, encouraging mastery and provision of autonomy. These factors are relevant to my
future work in various ways. To begin with, the improvement of diversity will allow me to work
in various companies effectively. In addition, my motivation to deliver more and be more
productive may increase hence benefitting the company in question. Secondly, encouraging
mastery is crucial to me since it may help me improve my abilities and skills. This may also
provide me with better job opportunities or promotions in the future. Lastly, the provision of
autonomy is also important to me since it offers a productive environment to work in. For
instance, having good relations with managers may provide an effective atmosphere to work
without having too much supervision or control.

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References
Abuzeinab, A., Arif, M., Qadri, M. A., & Kulonda, D. (2018). Green business models in the
construction sector: an analysis of outcomes and benefits. Construction
Innovation, 18(1), 20-42.
Adogbo, K. J., Ibrahim, A. D., & Ibrahim, Y. M. (2015). Development of a framework for
attracting and retaining women in construction practice. Journal of Construction in
Developing Countries, 20(1), 99.
Dili, C. (2017). Difference Between Matrix and Functional Structure | Matrix vs Functional
Structure. Retrieved from https://www.differencebetween.com/difference-between-
matrix-and-vs-functional-structure/
Hedley, G. (2015). How to Attract Employees to Your Construction Company. Retrieved from
https://www.forconstructionpros.com/business/business-services/article/12134725/how-
to-attract-employees-to-your-construction-company
Hickman, C. R., & Silva, M. A. (2018). Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
Karell, D. (2018). 4 Types of Organizational Structures | Point Park Online. Retrieved from
https://online.pointpark.edu/business/types-of-organizational-structures/
Peiffer, E. (2016). 5 ways construction companies can attract and retain the best employees.
Retrieved from https://www.constructiondive.com/news/5-ways-construction-companies-
can-attract-and-retain-the-best-employees/415437/
Pingboard. (2013). Types of Business Organizational Structures. Retrieved from
https://pingboard.com/blog/types-business-organizational-structures/
Schultz, B. (2017). How to Attract the Next-generation of Construction Workers. Retrieved from
https://www.forconstructionpros.com/business/article/20863076/how-to-attract-the-
nextgeneration-of-construction-workers
Thompson, J. (2018). Functional Vs. Matrix Organization Structure. Retrieved from
https://bizfluent.com/info-8149155-functional-vs-matrix-organization-structure.html