Analysis of structure organization of Sinohydro Corporation Group–5 – US Business Here
Friday, October 23

Analysis of structure organization of Sinohydro Corporation Group–5

4.3 Reduce management layers through establishing function platform and promote headquarter support system

For now, the engineering bureaus apply the three layers organization management system which is from engineering bureaus to branch bureaus to projects. This model has following problems:

  1. Project authority function personnel occupies a large share of project managing staffs. Many talents are wasted in the authority function. With the increase of projects in charged by branch unit, there is a short of managers allocating to each project. It will affect the branch bureau to enlarge its managing scale and at the same time lower the quality of the project management.
  2. There is a large difference in regard to operation in different project management. For example in the aspect of purchase price for materials and equipment, in the aspect of unit price for project contracting as well as in the choice of sub contractor. the degree of standardization is pretty low for the same project in regard of design. The system is not unified. It is not good for standardization and unification of management to branch bureau. The mitigation strategy to solve the problem is functional consolidation and unification of management. Strengthen the support function of headquarter. Part of the managing function can be moved to branch office and canceled the corresponding department in the project department. Important and procedural decisions need support from the headquarter. Project department can become the executing organization focus on production management.
  3. Establish information management platform

The features of traditional organization is pyramidal, top-down. The strict system and specific  integration of power and responsibility as well as regulations insures the effectiveness and efficiency of collects, process and transmit information with manual method. Establishing information management platform such as OAS and ERP can increase company’s ability to collect, process and transmit information. The information system assumes the function of middle level manager to communication, coordination and control. The company could reduce the number of middle level managers to shorten the information channel from upper high level mangers to grass-roots employees. Office Automation System realize the functions of the document flow, approval process, meeting management,etc. This will be much convenient for the employees and regulate the organization structure therefor increase the operation efficiency. Enterprise Resource Planing is beneficial for effective sharing and using the resources of the company. The Enterprise Resource Planing system will effectively organize and transmit the information. The Establishment of information platform is the effective tool to realize the flatization of the organization management. Computer will do most of the managing work through which way to reduce the reliance on people. Through the technology of information technology, the company could cancel some departments properly.

The Sinohydro Corporation Group has its own website. Some member enterprise has its own website too. The websites could access to each other. The member enterprises could establish the OA system on their own website platform. The information platform construction of Sinohydro Corporation Group is in a very early stage. Only through the establishment of real information managing platform will the flatization management be realized.

4.4 Separation of management and operation.

The construction industry in western countries has the structure of pyramid. It forms the main contracting, specialized contracting and labor sub- contracting as well as thorough consulting service system. The enterprises has lots of innovation cooperation for different needs. Lots of engineering project management model were established for different needs of customer. State owned firms of large scale need to establish the belonging organization for operation to make the operation level realize independent management which can provide labor sub contracting service with flexible system.

  • Conclusion

Corporation group is kind of advance organization form in modern enterprise. Due to historical cause, Chinese construction group were established under administration order. The organization structure has its own deficiency and need adjustments.     /

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