Analyzing Organizational Structure for Contracting Firms' of Classification "A", Egypt

Abstract

The present study is an attempt to address the efficiency and performance of construction companies in Egypt. This study highlights and compares different types of organizational structures of contracting firms of classification "A". Comparison covers Functional, Divisional and Matrix organizational structures. It analyses and evaluates the effect of the organizational structure on the contracting companies' performance and success. Restrictions of contracting firms of classification "A" according to EFCBC (Egyptian Federation for Construction and Building Contractors) on companies' performance are investigated. Seven main contracting firms of classification "A" representing private, business and public sectors are considered in the present field survey. The field study is conducted by using survey questionnaire, personal interviews for the companies' employees and formal data from the selected companies. Obtained results show that the organizational structure operates in its highest efficiency when hiring minimum number of most qualified personnel. Moreover, avoiding centralization i.e. routine; bureaucracy and long paper work have a significant impact. This research confirmed the domination of functional organization structure in Egyptian companies. The study concludes that a composite structure between matrix and functional organizational structure based on (geographical location or project type), may be recommended as the optimal organizational structure for contracting firms of class "A" in Egypt.

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