TECHNICAL PAPERS
Sep 1, 1986

Case Study of Organizational Changes

Publication: Journal of Construction Engineering and Management
Volume 112, Issue 3

Abstract

This paper documents a case study of the organizational evolution, over a ten‐year period, of a U.S. electric utility company in support of the construction of a two‐unit nuclear generation facility. A number of principles for designing an organization are summarized, and it is suggested that these be used in the organizational planning process. Seven major reorganizations are described, and these changes are compared to the organizational planning principles. The project was half complete before all key engineering and planning functions were consolidated under a single manager. It was approximately 80% complete before the authority of the project director was commensurate with his responsibilities. It is shown how the project authority structure emerged as functional but was later changed to a projectized one. After several realinements, a matrix organization was tried. A strong project structure replaced the matrix structure when the resources of the entire organization were committed to completing the project.

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References

1.
The Business Roundtable, More Construction for the Money—Summary Report of the Construction Industry Cost Effectiveness Project, New York, N.Y., Jan., 1983.
2.
Carvalho, E. R., and Morris, P. W. G., “Project Matrix Organizations—or How to Do the Matrix Swing,” Proceedings of the Project Management Institute, Los Angeles, Calif., 1978, pp. IV‐D.1‐IV‐D.13.
3.
Davis, S. M., and Lawrence, P. R., Matrix, Addison‐Wesley, Reading, Mass., 1977.
4.
Galbraith, J., Designing Complex Organizations, Addison‐Wesley, Reading, Mass., 1973, p. 114.
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Mescon, M. H., Albert, M., and Khedouri, F., Management, Harper and Row, New York, N.Y., 1981, pp. 261–262.
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Paulson, B., Fondahl, J., and Parker, H., Development of Research in the Construction of Transportation Facilities: A Study of Needs, Objectives, Resources and Mechanisms for Implementation, Technical Report No. 223, Department of Civil Engineering, Stanford Univ., Stanford, Calif.
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Theodore Barry & Associates, A Survey of Organizational and Contractual Trends in Power Plant Construction, Los Angeles, Calif., Mar., 1979.
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Thomas, H. R., Keating, J. M., and Bluedorn, A. C., “Authority Structures for Construction Project Management,” J. of Constr. Engrg. and Mgmt., ASCE, Vol. 109, No. 4, Dec., 1983, pp. 406–22.
9.
Thomas, H. R., and Keating, J. M., A Case Study of the Organizational Effectiveness of an Electric Utility for the Planning and Construction of a Nuclear Generating Station, Constr. Management Research Series No. 16, Dept. of Civil Engrg., The Pennsylvania State Univ., University Park, Pa., July, 1982.

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Go to Journal of Construction Engineering and Management
Journal of Construction Engineering and Management
Volume 112Issue 3September 1986
Pages: 358 - 369

History

Published online: Sep 1, 1986
Published in print: Sep 1986

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Authors

Affiliations

H. Randolph Thomas, M. ASCE
Assoc. Prof., Dept. of Civ. Engrg., Pennsylvania State Univ., University Park, PA 16802
Allen C. Bluedorn
Assoc. Prof. of Management, Univ. of Missouri, Columbia, MO 62511

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