Research On Influencing Mechanism Of Organizational Structure Design On Cost Management In Real Estate Development Enterprise

As real estate development industry comes to maturing, intensity of real estatemarket competition is increasing sharply, cost management capability is regarded as oneof the main sources of enterprise’s competition. Therefore, the importance of costmanagement has been widely recognized. Because Organizational structure is a carrierof enterprise’s cost management activities, there is a close relationship exists betweenmanagement effectiveness and organizational structure. Lots of improvements of costmanagement can achieved through a variety of organizational measures in practices, infact they have achieved some results. In existing literatures, they only propose theimportance of the organizational structure designing to cost management from manyisolated points. On the other hand, they have not yet explained how and whyorganizational designing influence the progress of cost management deeply enough.Some of organizational measures are blind in some degree, many undesirablephenomena of cost management occur frequently. From all of those, we can see thedirective function of the literatures to cost management system building of real estatedevelopment enterprise is not strong.The core content of this paper includes three aspects:Part1focus on Analyzing the relationship between real estate developmententerprise organizational structure designing and cost management，Respectively, fromchanges in the cost management focus under different forms of organizational structure,dynamics and structure of measures to quantify the organizational structure of thevariable cost management effectiveness and cost management improvements launchedthree anglesPart2focus on how and why organizational structure designing influences costmanagement. The main contents of the organizational structure of the design stage ofdecomposition analysis for enterprise development, organizational design functions,organizational structure designed horizontal dimension, vertical dimension of theorganizational structure design, job design work, group control mode selection andoperation processes, Meanwhile through value chain analysis of the real estatedevelopment enterprise cost management and reasonable decomposition, the main costdrivers include land bank strategy, investment estimation, quota design, design drawings quality, financing, vendor management, project bidding, vendor selection, tendering,design change, field visas, contract preparation, price calculation and payment, such as13Days sales outstanding, correspondence between the process and impact analysis ofcost drivers and organizational structure designPart3focus on proposing the basic principles and design elements of real estatedevelopment organizational structure based on cost management. The basic principlesinclude: specialization and collaboration, moderate division, functions boundary effects,reasonable decentralization, flattening the organization, responsibilities seamless,mutual restraint and streamline. Organizational design highlights include: Departmentof combinations, powers and authority, span of control and level design work contentand process design.