1. Introduction – Identification of Basic Bindings in the Company
Lecture was elaborated with the help of grant project of Ministry of Education, Youth and Sports, FRVŠ n „Innovation of Subject Financing of Building Order“
Introduction – Identification of Basic Bindings in the Company

2. Specifications of the Building Industry
Each building object is unique
Production equipment moves to the product - building object
Long production cycle, complicated production process
High dependence of the production process on weather
For construction there are used product from all branches of national economy that then influence the result quality of the building object
As a product of the building production is considered the building order
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3. Subject of Building Market
Investor
corporation or individual, from his sources the building is financed and that usually ensures its preparation and realization. Investor usually becomes the owner or the user of the building, in the relation towards supplier he is in a role of a customer
Designer
corporation or individual ensuring a supply of a project documentation of a building
Supplier
corporation or individual that realize building works and ensures a supply of a building object
Sub supplier
corporation or individual that is by main supplier entrusted with realization of specified part of works on a building order
Provider of financial sources
corporation that provide to investor financial sources for a realization of a building order
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4. Kinds of Building Production
Building production it is possible to divide into following kinds:
Basic structural production
Includes supplies of building works realized own workers or sub suppliers
These supplies it is possible next to divide into following kinds of production:
Main building production
Includes supplies of building works realizes mainly on fabric (foundations, horizontal and vertical constructions etc.)
Associated building production
Includes professions and handcrafts
Subsidiary production
Includes preparation of resources and facilities needed for basic structural production, e.g. production of intermediate products and production of building materials
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5. Property a Sources of the Property Coverage in the Building Company
Long-term property
Long-term intangible property
Long-term tangible property
Long-term financial property
Short-term property
Supplies (stocks)
Accounts receivable (receivables)
Financial property
Sources of the property coverage
In-house sources (own capital)
The registered capital
The capital funds
The funds created from net (after-tax) profit
The economic result
Extraneous sources (liabilities)
Liabilities
Bank credits and loans
Reserves
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6. Returns in a building company
In monetary units expressed outputs of a company
Classification of returns
According to the kinds:
Returns from the sale of goods
Returns from the sale of own production
Financial returns
For needs of enumerating of economic result:
Operational
Financial
Extra
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7. Costs in a building company
In monetary units expressed consumption of property and work in order to achieve outputs
Classification of costs
According to the kinds
Consumption of material
Wage costs
Consumption of services
Depreciation and amortization
Financial costs
According to the purpose, for that they were consumed
Production
Administrative
Costs for research and development
Calculation classification
Direct costs
Overhead costs
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8. Objectives of a Building Company
Basic objectives of a building company
Maximization of market value of a company
Maximization of benefits of company’s owners
Maximization of a profit as a difference between returns and costs
Profit = Returns – Costs
Particular functional departments allows the assurance of maximum
profit:
By maximization of returns
By minimization of costs
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9. Functional Departments of a Building Company
Functional departments ensuring the achievement of basic objectives of
a building company
Marketing department
Trading and technical department
Production department
Department of sub-supplies management
Economic department
Department of the stock management
Personal department
Legal department
Investment department
Quality management department
Other departments
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10. Organizational Structure of a Building Company
Formal structure of organizational units in the formally organized company
Main objective of an organizational structure
Delegating of authorities of the owner (owners) of a company to the management from the reason of limited managing abilities of the owner
Achievement of maximally possible efficiency of production based on effectively running system of management
Basic suppositions for the organizational structure creation
Identification of activities necessary for the company’s objectives achievement
Aggregation of identified activities into organizational units (specialization)
Dividing of authorities and responsibilities of organizational units and responsibilities for organizational units
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11. Organizational Structure of a Building Company
Way of organizational units creation
Functionalization
Specialization according to company’s functions
Specialization of organizational units on specific activities
Diversification (specialization according to an object), an object can be in the form of:
Group of products
Product
Market
Project
From this dividing basic kinds of organizational structure result:
Line organizational structure
Project organizational structure
Matrix organizational structure
Divisional organizational structure
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12. Line Organizational Structure
Characteristics:
Base on particular functions a company is divided into partial departments
Each department is responsible for realization of directly defined activity
Employees of the department are directly subordinated to heads of particular departments
Partial departments communicate with each other through heads of particular departments
Advantages:
Clear determination of subordination and superiority
Possibility of reaching of high specialization in the frame of the department
Efficient work for one chief
Disadvantages:
Sometimes quite long information flows (communication among departments usually through they heads)
Low involvement for whole company’s objectives (above all the best effort for department not for the company as a whole)
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13. Line Organizational Structure
TOP MANAGEMENT
MANAGEMENT A A1 A2 A3
MANAGEMENT B B3 B2 B1
MANAGEMENT C C3 C2 C1
MANAGEMENT D D3 D2 D1
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14. Project Organizational Structure
Characteristics:
In the frame of basic organizational structure of a company there is provisionally created new organization oriented on a realization of certain project (a load with specific features)
Project structure is interdisciplinary, there is named the head of the project that creates team of workers of various professions needed for the project solution
Kinds of project organizational structure (according to the way, how much the basic structure
is influenced):
Co-ordination of the project
Line still dominates
Head of the project only connects workers creating the team
Workers work on the project in the frame of their position in the line structure
Net project organization
In parallel with the existing structure there the new fully organizationally independent project team arises
Workers of the project team are completely freed form their duties in the frame of the department and they are fully subordinated to the head of the team
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15. Project Organizational Structure
MANAGEMENT OF PROJECT 1
TOP MANAGEMENT
MANAGEMENT A
MANAGEMENT C
MANAGEMENT B A1 A2 A3 B3 B2 B1 C3 C2 C1
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16. Matrix Organizational Structure
Characteristics:
Primary structure is created according to the one criteria (e.g. line structure) and it is connected with the secondary structure created according to the second criteria (e.g. project structure)
This form can better react to changes in the surrounding through project managers
However this higher elasticity brings a failure of a management unity
It concerns about “structure of two chiefs”, where the first chief is represented by head of the department and the second is represented by head of the project or order (site manager)
Financing of Building Order

17. Matrix Organizational Structure
TOP MANAGEMENT
MANAGEMENT A
MANAGEMENT C
MANAGEMENT B
MANAGEMENT OF PROJECT 1
MANAGEMENT OF PROJECT 2
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18. Divisional Organizational Structure
Characteristics:
Structure intended mainly for high companies with wide portfolio of production
According to the kind of output the company is divided into particular divisions (dividing according to the product - similar with the project structure)
Particular divisions are organized according to the line or project organizational structure
Divisions in the project structure are completed by departments common for the whole company
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19. Příklad divizionální organizační struktury
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20. Organizační struktura - Skanska
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