This section of the group project focuses on the goals of the proposed construction company in terms of its structure, financial control and marketing.
The section also details the approaches that will be adopted in attaining the set goals in regards to the mentioned aspects.
Structure of the Organization
In terms of the structure of the organization, the primary goal of the proposed company is to have a structure that ensures optimal performance in all the essential areas relating to its businesses. As described by Maduenyi et al. (2015, p. 355), organizational structure dictates the coordination and motivation of the workforce, and influence the level of performance in the organization. Based on this premise, the firm intends to create a structure that would guarantee effective operation critical for the accomplishment of its core functions. The first strategy that would lead to the attainment of this goal is the establishment of the relevant departments. At the helm of the organization will be a board of directors of the company, carefully constituted with the right skill combination relevant to the construction sector. The board of directors will be responsible for determining the direction of the company and safeguard the interest of the stakeholders as well as the shareholders.
Under the directors is a general manager. The general manager oversees the day to day operations of the company. Based on the performance and growth goals, the position of the general manager will be instrumental in ensuring that the operations of the company are not interrupted. As a result, the structure of the company, with the establishment of the general manager position will ensure there is effective oversight of all the operations of the company. In addition to the general manager’s position, various functions within the organization will be classified under different departments each headed by a manager.
The departments of the company will include human resource, construction, estimation, administration and sales and marketing. Each of the departmental heads ensures that only people who are skilled in the area of operation are recruited to take care of the company business. For instance, the human resource department employees people who have the knowledge required for the management of the workforce in the construction industry. According to Thomas (2015, p. 99), classifying the workforce into various departments plays an essential role in the enhancement of efficiency in the operations of the company. Therefore, the proposed structure will be aligned with the overall goal of the proposed construction company.
Financial Control
As a new company in the construction industry, there will be significant levels of financial transactions with the suppliers and the clientele. Specific employees will be responsible for various effective transactions. However, there is a potential for misuse of funds or allocation of financial resources that are not essential to the advancement of the goals of the company. One of the goals of the building company is to ensure there are appropriate allocation and documentation of the financial resources in the course of executing personal or customer’s projects. The decision to attain such high levels of control is based on the adverse implications of financial misappropriations, which may compromise the capacity of the company to attain its goals. Further, lack of such controls may present an opportunity for pilferage of the company’s resources and affect the growth and performance goals.
For the attainment of the finance control goals, the company will have a finance controller to oversee the function. Through the finance controller, the building firm will be able to correct accounting entries. This function will involve for each of the entries made. There will be corresponding proper documentation (Kumara, 2015). As such, it will be possible to ensure the cash, payroll, accounts payable as well as a reconciliation of accounts is adequately executed. The finance controller will also assist the general manager in the making of a vital decision relating to investments in specific projects through offering proper financial analysis.
Besides the recruitment of a finance controller, the proposed building company will also create a conducive environment for the execution of the function of the finance control office. According to Nakiyanga and Dinh (2017, p. 5), the creation of a favourable culture by the leadership of a company is essential in the enabling of the functioning of the finance controller. This means that unless everyone in the organization cooperates with the finance controller, the latter will be at ease to execute his or her duties. For the establishment of a transparent and accountability culture, all the employees of the building company will be briefed about the need to avail documentation for various transactions whenever they are called upon by the finance controller. The departmental heads will also be sensitized about the necessity of remaining accountable as the company strives to adjust to the construction industry business environment. As a result, the finance controller will be able to access any document they need for proper control of the use of the resources.
References
Kumaran, Senthil, 2015. 5 Essential Roles of a Financial Control Team. [online] Invensis. Available at: https://www.invensis.net/blog/finance-and-accounting/5-essential-roles-of-a-financial-control-team/. [Accessed 9 May 2018].
Maduenyi, S., Oke, A.O., Fadeyi, O. and Ajagbe, A.M., 2015. Impact of Organisational Structure on Organisational Performance. [online]. Covenant University. Available at: http://eprints.covenantuniversity.edu.ng/5296/1/Paper%20140.pdf. [Accessed 9 May 2018].
Nakiyaga, B. and Dinh Thi Lan, A., 2017. How organisational culture affects internal control effectiveness: the role played by top management: Case study: Uganda Revenue Authority.
Thomas, O.O., 2015. Effects of Organizational Structure on Job Satisfaction in the Nigerian Financial Sector: Empirical Insight from Selected Banks in Lagos State. NG-Journal of Social Development, 417(3868), pp.1-13.
Thomas, O.O., 2015. Effects of Organizational Structure on Job Satisfaction in the Nigerian Financial Sector: Empirical Insight from Selected Banks in Lagos State. NG-Journal of Social Development, 417(3868), pp.1-13.
