Organization of a Construction Company

Administration is an activity aimed at organizing the resources available to any organization or entity, regardless of the type company that is, because it has the necessary characteristics to be part of any type of project and in any type of area. This is the quality of people who study administration because they have the possibility of working in any type of company performing administrative functions.

When we try to see how the administration develops in a construction company we must take into account the way in which the organization is structured, study the way in which the construction company has its organization chart and how the herself.

In construction companies, their organization is expressed through an organization chart, which details what is authority and responsibilities that exist in the company and how to achieve the objectives established by the company.

Among the most used types of organization within a company we have ldepartmental organization Y matrix organization.

The departmental organization It is the administrative process by which the organization is oriented to divide the work through departments or specialized areas that bring together professionals from each area to achieve the maximization of income with the best possible personnel in each area of ​​the company available.

On the other hand, the matrix organization is one in which each area of ​​the company has to intervene in the organization's projects, therefore in this type of organization each one of the areas would have to respond to two different heads: the project manager and the functional manager in charge of the area.

This type of organization is the most used by construction companies, although it has its advantages and disadvantages that must be taken into account.

Some of the advantages are:

• Optimized employment of specialists

• The specialists in the area feel more comfortable with this model, as it allows them to make decisions with more confidence, since they know well the subject they are dealing with.

But among the disadvantages:

• Some conflicts of interest may arise when resources are fair

• The limited staff available to the project manager makes administrative management difficult

• The different opinions of the two supervisors that can cause confusion to the collaborators with their contradictions.

After a construction company decides which organization it is going to use, it prepares its organization chart for delegate the corresponding functions to each person or to each area depending on the organizational system that is going use. It should be noted that if the organizational system that the company decides to use works correctly, the administration applied in the construction company It will be carried out successfully and will help the company to stay afloat as long as the areas and personnel continue to perform their functions and obligations.

The construction companies are a very complex business model but with a lot of growth in recent years, because when applying the methods administrative we can get great results and lead this type of company to success by applying the procedures suitable.