The research will be about ASWAR engineering and general contracting company. It was established in 1985 by the founder and General Manager Mr. Saadallah Eid. ASWAR is one of the leading companies in the contracting business and has many global certificates, like ISO9002, and an appraisal certificate from the ministry of education, that enables them to be one of the leading companies in the market. ASWAR has a branch in every Emirate in the UAE and its main branch is located in Abu Dhabi.
ASWAR has handled many projects in the past all around the UAE like the construction of boys and girls’ secondary school at Silla in 2001, construction of five commercial buildings in Khalifa City at Abu Dhabi in 2006, and construction of Masafi hospital at Fujairah at 2008. The company is also handling some projects that are soon to be completed in the coming quarter of next year; 800 students school in Silla. Organization’s Environment “It is defined as all elements that exist outside the boundary of the organization and have the potential to affect all or part of the organization.
” (Daft, 2010) Internal Factors: The internal factors can be very crucial to the companies system from the inside, where the system has to work smoothly and as efficient as possible, but there are always ways to break down the system and cause problems internally and these can be more devastating than the external factors. The employees are all smart with almost the same backgrounds, and if they are working in a group they can do almost everything, so the mutual understanding between the employees is excellent in the company.
If the mutual understanding didn’t exist in between the employees then the system fails, nobody can work in a group and everybody wants to do this and that. This is where the company’s management system fails, to be more specific the human resources department. They companies system is centralized with the rules and regulations they are tough, but when it comes to the dress code and small matters then the managers are more open minded about that.
The employees can wear whatever they want as long as it is proper, and about holidays like if the company doesn’t have a lot of projects then a holidays are granted easily, so the pressure on the employee is not a lot, and with that they can focus on what’s more important which is work. It’s a nice working environment with no troubles of having to work by the book. All these issues count up to how efficient the employees are, so by creating a good working environment then the focus on work can be better.
External Factors: External factors are factors that affect companies unintentionally. They can vary from natural disasters to economical crisis’s that can affect the company in a lot of ways. Natural disasters for example, if it rains in Abu Dhabi for a couple of days, then a lot work can get delayed. Wet conditions don’t allow building using concrete, due to the rain, and with that it can cause a delay in work causing the company to lose a lot of money for each day that they are late.
Economical crisis in the world can cause unexpected problems, like what happened in 2008 where a lot of companies were shut down and people were fired due to the company’s inability of paying the employee’s wages. It did affect ASWAR, but just to an extinct, where they don’t have a lot of projects anymore. People cannot come up with the money to build what they want, due to the loose of money within the crisis. The decreased amount of projects causes the company to let go of some of the employees, just to keep the company going.
Shortage in resources, war and public holidays, all of that can cause the company lots of money and time wastage. When the resources needed are not available then the whole project can get delayed. As for war can be a big factor of shutting down the company where would want to stay in a war zone. Public holidays are really very hard to deal with sometimes, where all the governmental sectors are on holiday, and the private sectors are still working, and they need some paperwork to be done but they can’t, so that causes delays, loose of money, problems within the company.
These can be the major factors that can affect ASWAR in a way where it causes all of the side effects mentioned above. Organization Chart Mr. Saadallah Eid is the General Manager of the company; everything happens after he or the Deputy GM, Mr. Wissam Khalil, gives the green light. Key or top employees report directly to any of those two. On the other hand, the regular employees report to their superiors like Mr. Ahmed Yaghi, Mr. Sundhar S. , and Mr. Basil Juoda. Organization Structure According to Richard L.
Draft in his book of Understanding the Theory and Design of Organizations, he states that an organization structure ” designates formal reporting relationships, including the number of levels in the hierarchy and the span of control of managers and supervisors; identifies the grouping together of individuals into departments and of departments into the total organization; and includes the design of systems to insure effective communications, coordination, and integration of efforts across departments. ”
In other words, its shows how the organization is composed, what structure do they use (vertical or horizontal), span of control, how involved are the employees, and many other things about the organization and how does it run. A more in-depth study of ASWAR’s organizational structure will be examined below: Work Specialization Work specialization shows how specialized are the employees in the tasks that they do. In other words, it shows if an employee specializes in a single task/job or if he can perform other tasks.
According to the Deputy GM, Mr. Wissam Khalil, the organization consists of highly specialized employees who perform only specific types of tasks. On the other hand, the construction workers that the organization hires are not very specialized. Chain of command Chain of command shows the organizations hierarchy, and span of control. ASWAR is following the vertical hierarchy, in other words every employee has to report to his supervisor which reports the person above him and so on till the issue reaches top management for a decision.
The manager or supervisor in ASWAR watches over 10 to 15 employees on average, this number of employees isn’t a lot and allows for an efficient supervision of the employees, since the employees are only around 250. On the other hand, since the construction workers, carpenters, plumbers, etc are about 1,500, a supervisor watches over 30 employees on average. The supervisors can handle supervision of the laborers more easily because the tasks that they are assigned to aren’t that complicated and do not require a lot of expertise.
This structure is good during this time of crisis, were there isn’t much work as before. The organization has to be guided firmly in order to pass this crisis successfully with the least losses, or none if possible. Centralization According to Richard L. Draft in his book of Understanding the Theory and Design of Organizations, he states that “Centralization refers to the level of hierarchy with authority to make decisions”. ASWAR has centralized span of control which indicates that every decision is being made by the General Manger or Deputy GM. Formalization
“Formalization is the degree to which an organization had rules, procedures, and written documentation. “(Daft, 2007) . ASWAR has a certain degree of formalization, where the organization stresses on the safety and well-being of its employees and on construction workers. However, they don’t stress on the dress code and they don’t have many rules and regulations. Empowerment of Employees “Empowerment is the delegation of power or authority to subordinates; also called power sharing. ” (Daft, 2007). ASWAR’s employees are motivated to work because the company provides them with a challenging and competitive environment.
On the other hand, only key personnel (like management members and project managers) are involved with the decisions making of the organization. Mechanistic Structure “A mechanistic structure is an organizations system that is market by rules, procedures, a clear hierarchy of authority, and a centralized decision making. ” (Daft, 2007). In other words, a mechanistic structure usually means a vertical structure. ASWAR has a mechanistic structure, which explains the vertical structure and the centralization in the organization.
Although this structure isn’t the best, it is good for work efficiency, task division, and a stable working environment, especially in this time of crisis where the employees are a little worried about losing their jobs. (Miles & Snow, 2003) Environment and Organization Structure The term Environment refers to the organizational environment which the company relates to. It primarily includes, Industry, raw material, human resources, financial, market, economic, government, Sociocultural, international sector (Daft, 2010).
These changing sectors could create opportunities as well as threats to the organization. Thus, the company should carefully build and modify its structure upon the characteristics of its environment. Environment and organization structure are two dimensions, each dimension is divided to two parts. First, the environment is indentified to be either certain or uncertain. Second, structure is set to be either mechanistic or organic. Ultimately, these two variables generate four different situations for a company.