Organizational Structure: Overview
Most large businesses have the same type of organizational structure. This paper will be discussing OURS Corp.. , Tetra Tech, Inc. , and AMES Pl. These three companies are all involved in the construction industry. These companies have many similarities as well as differences. This paper will also explain the organizational functions and how they influence organizational structure and design. OURS, Tetra Tech Inc. And AMES are all providers of engineering, consulting, construction management, and focus on infrastructure and the environment. Each company operates in various countries. The business structure for all three companies includes a Board of directors, Upper management, and front-line management. Upper management is thus broken down by Vice Presidents of the companies sectors including Energy and Construction Division, Oil & Gas Division, and Corporate Initiatives. The three companies being discussed contain project managers, architects, and design engineers.
Each of the three companies have a system of hierarchy that is followed for each project that is underway. Delegation is important in such a large industry and requires many level management involvement in projects. Organizational structures that these companies use branch off into various directions, including the vice presidents of areas involved in the project that is responsible for specific areas. Safety directors, environmental managers, lead architect/designer are usually the most visible at the beginning of a construction project.
This hierarchy develops as ground breaking begins. Employees in specialized areas are brought in such as plumbers, interior designers, welders, and electricians. Each specialty usually has a project manager above them. These people are in charge of the day to day operations of the construction project. The diagram of a reporting structure below shows a generalized formula for the organizational chart for a project. The horizontal structure of these companies allows for employees to report up in the chain of command and vice versa for the individuals at the top of the hierarchy.
This construction allows for the specialized areas to communicate effectively with all individuals that are involved in the building of a structure. There are many aspects to constructing a building that must be overseen and controlled. A seemingly minor mistake can lead to large and costly corrections, this is why the reporting structure of the organization is so important. Organizational functions are important for the success for all three organizations. Each business must market itself appropriately to prospective consumers.
The consumer markets for all three of these companies are large and cover multiple countries. OURS states “We help clients meet their operational and environmental challenges by providing services throughout every phase of the project life cycle, including front-end studies; environmental management; engineering and process design; procurement, construction and construction management; facility management and maintenance; and closure. We partner with industry clients to help increase productivity, reduce costs and improve overall performance” (www. Ours. Com, 2014).
The company’s statement is their marketing design for the consumer and covers the products and services that are being sold to the consumers. Each company has a similar statement and is used to market their business, and acquire new clients while maintaining the network of consumers that they have already obtained. Finance is another function that affects these companies; the financial department for any company is responsible for many facets of the organization. The finance department is in control of budgets, which includes equipment, product, and service purchases.
Tetra Tech’s income stems from fees for professional, technical, construction, construction management services, along with program management. Revenue for this business, along with AMES and OURS, is done through their abilities to attract and retain productive employees, identify business opportunities, and secure new and existing client contracts. Human Resources role in an organization has grown to be an essential part of an organization. Human Resources are no longer Just a personnel management department, it has become an essential part of an organization.
The HRS departments of large corporations must be knowledgeable in their organizations businesses. “HRS leaders are a strong advocate for at least four sets of values: strategic, ethical, legal, and financial” (Bateman & Snell, 2011). Human Resources for these organizations include the HRS planning processes. The HRS planning processes include market recasts, labor supply forecasts, reconciling supply and demand, and Job analysis. All of the companies we have discussed use internal recruiting, external recruiting, and use a selection process for hiring new or advancing established employees.
Each sector of these companies must adhere to the policies established within the agreed upon HRS framework which is designed for equal opportunity employment. These are considered the standard operating procedure guidelines. The organizational structure is important for both large and small companies. With AMES, Tetra Tech, ND OURS, the companies are very large and encompass many industries. The size of the companies creates complexities and the need for increased control. The size of a business can offer advantages that smaller companies cannot.
Larger businesses are able to offer lower costs per unit, larger purchasing power, and easier access to capital. Big companies are able to compete on the global market such as the ones in the paper. Within AMES, Tetra Tech, and OURS the companies use the differentiations design due to the complex nature of the companies. This allows for the controlling aspect needed to run the businesses efficiently. Large construction companies seem to operate with similar reporting structures.
