Republic of the Philippines
BOHOL ISLAND STATE UNIVERSITY - Main Campus
College of Engineering and Architecture
6300 Tagbilaran City
Vision: A premier Science and Technology University for the formation of world class and virtual human resource for sustainable development in Bohol and the country
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.
CONSTRUCTION METHODS & PROJECT MANAGEMENT
Activity No. 1
Objective: Students will be able to know what is Organization and Management and how
are they related to each other.
ORGANIZATION & MANAGEMENT
1.1 INTRODUCTION
The driving force behind every organization is its management team wherein different teams
operate in different ways. There is no universal accurate management to define the one that is
best. Just the concept that explains why some operations were managed successfully in the past
to suggest what can be done for the future success.
The organizational structure of small enterprise may be very simple. The owner is usually the
manager and has daily contact with all the people of his organization. He establishes the policies
and assigns the job to be done and follow up on the job for the purpose of direction and
coordination. As his company grows bigger, the problem of organization for grouping, supervising
and serving operations become more complex.
The company may have the most modern plant and equipment, a highly skilled and experienced
labor force, ample materials and financial resources, yet become failure in its purpose of making
profit. There may be reasons and circumstances responsible behind its failure, and most frequent
reason is POOR MANAGEMENT.
1.2 WHAT IS ORGANIZATION?
Organization is a group of individuals who are cooperating willingly and effectively for a
common goal. It is nothing more than the mechanism by which administration directs, coordinates
and controls its business. It is indeed the very foundation of administration. To be specific,
organization seeks to know who is to do and what is to be done.
Organizations are structured to promote better management. However, it is the performance
of the people who fill the positions that determines the success of the enterprise and not the
organization design itself.
A good executive may be able to secure good results with a poor organization, and a good
organization may produce good results from a poor executive. But the ideal set up is a
combination of a good organization and good executive.
When an organization is structurally ill designed, when it passes for a makeshift arrangement,
administration is made difficult and ineffective. On the other hand, when it is logical, clear cut
and streamlined, the paramount need of administration has been met.
Apparently, there is no ideal organization designed to emulate. A management structure is only
a vehicle used to attain the objectives and goals of an institution, and therefore, must be realistic
and responsive for the call for a change of those needs.
Republic of the Philippines
BOHOL ISLAND STATE UNIVERSITY - Main Campus
College of Engineering and Architecture
6300 Tagbilaran City
Vision: A premier Science and Technology University for the formation of world class and virtual human resource for sustainable development in Bohol and the country
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.
1.3 THE STRUCTURAL ORGANIZATION
Structural Organization is the formal arrangements that are established to coordinate all
activities in order to implement a given strategy. Thus, structure reflects the anatomy of a firm
through its focus on mechanisms and processes that link both vertically and horizontally the
various parts of an organization.
Structural Elements of an Organization:
1. Men. These are the different members of the organization starting from the very top
of the last workman in the enterprise
2. Materials. Represents the materials necessary in the distribution of functions or in the
attainment of its objectives.
3. Machine. The tools necessary in producing its desired output.
4. Methods. The procedures and ways used in the course of its actions.
5. Money. The financial resources of the organization.
Major Elements of Organizational Structures:
1. Distribution of functions. The functions to be performed, the groupings of functions,
and the vertical and horizontal task relationships among functions.
2. Vertical and horizontal authority relationship (who are the authority to do what).
3. Communication and decision processes. The manner in which formal decisions
are made and by whom.
4. Policies. The decision, rules or guidelines established.
The common failure of management is its failure to adopt its organizational structure, policies
and procedures, to the growth in size and complexity of the enterprise.
According to Peter Drucker, traditional structures are no longer adequate for today’s complex
organizations. A management structure is a means of attaining the objectives and goals of an
institution. Thus, should be responsive to respect needs and changes on those needs.
1.4 PRINCIPLES OF GOOD ORGANIZATION
Business organizations has conditions peculiar to itself. A set of rules cannot be laid down that
would be applicable to organizations of all enterprises. However, certain underlying principles can
be given and among them are:
1. Principle of Objective. A clear and compete definition of the objective must be
known. Any business concern or any individual must adhere to a definite purpose or aim.
For example, if the aim is to make plans and construct a project, then, the entire
organization must be built with that idea, and those in the company must think and act in
terms of the quality of work. The objectives serves as the guide to future planning and
Republic of the Philippines
BOHOL ISLAND STATE UNIVERSITY - Main Campus
College of Engineering and Architecture
6300 Tagbilaran City
Vision: A premier Science and Technology University for the formation of world class and virtual human resource for sustainable development in Bohol and the country
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.
action. It integrates policies, projects, and programs. It enables everybody to act
consistently according to a common goal.
2. Analysis. A sound business judgment attempts to build an organization through full
knowledge of the requirements of the business. There should be a study as to whether
the project could be finished at the right time and at the right price the client will be able
to pay.
3. Simplicity. The simplest organization that will serve to attain the desired objectives is
considered the best. All activities which are not absolutely necessary, should be
eliminated, and those retained should be handled in the simplest practical way. Creation
of position should be based on paramount necessity and all activities which do not pay in
terms of pesos and centavos, should be eliminated.
4. Functionalism. The organization should be built around the main functions of the
business and not around the individuals. A function is a normal or characteristic way of
doing a task that stands out distinctively by itself. If an organization of any concern is built
around the functions, proper distribution of work could easily be done, thus, eliminating
any one man to become so powerful and so dependable upon to be indispensable.
5. Departmentalization. In big organization, the scope of operations can be very broad,
necessitating departmentalization to achieve a smoother flow of operations.
Departmentalization can be through functions, products, location or by projects of the
organization.
6. Centralization of Authority and Responsibility. In every organization there should
be centralized executive control or command authority. This is necessary in order to have
authority and responsibility definitely fixed. When there is unity of command, every person
knows what he can perform within his scope of authority, knows the things for which he
is responsible of, and also whom to report to or consult in case of problems or doubts.
7. Limited Span of Control. The number of subordinates an executive can manage
effectively.
1.5 ORGANIZATION AND BUSINESS
BUSINESS has been defined as an organization of people with varied skills, which uses capital
and talents to produce goods or services, which can be sold to others of more than their costs,
or it may be considered as; the system through which the economic activity was organized by
those who seek to make profit.
Fundamentally, most construction enterprises are selling the time of their workers, their
machineries, plant, equipment and money. The efficient use of the time and these assets will
determine the amount of profit to be realized, which is the primary goal of investing efforts and
capital in construction business.
To be effective, human activities can be coordinated. Efficient coordination requires much more
than an organizational framework. At the top of the foundation is coordination. This is the
attribute that integrates all the elements of an organization into an operating unity.
Experienced proved that higher accomplishment is dependent upon the interest and willing
cooperation of both the project supervisor and the workers.
Republic of the Philippines
BOHOL ISLAND STATE UNIVERSITY - Main Campus
College of Engineering and Architecture
6300 Tagbilaran City
Vision: A premier Science and Technology University for the formation of world class and virtual human resource for sustainable development in Bohol and the country
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.
ACTIVITY NO. 1
1. There are five elements of an organization (Men, Materials, Machine, Methods and Money),
explain briefly how these elements are incorporated and how are they dependent on each other
in order to achieve a unified goal in an organization. (Ex. How does money work in an
organization? Can a certain activity starts without the necessary equipment?).
2. In your own opinion, when can you say that a certain organization is effective and efficient?
3. Why do you think policy is important in an organization?
4. Provide an organizational matrix that shows horizontal and vertical authority relationship and
explain briefly the difference between horizontal and vertical authority.