The present study is an attempt to address the efficiency and performance of
construction companies in Egypt. This study highlights and compares different types of
organizational structures of contracting firms of classification “A". Comparison covers
Functional, Divisional and Matrix organizational structures. It analyses and evaluates
the effect of the organizational structure on the contracting companies' performance
and success. Restrictions of contracting firms of classification “A" according to
EFCBC (Egyptian Federation for Construction and Building Contractors) on
companies' performance are investigated. Seven main contracting firms of
classification “A" representing private, business and public sectors are considered in
the present field survey. The field study is conducted by using survey questionnaire,
personal interviews for the companies' employees and formal data from the selected
companies. Obtained results show that the organizational structure operates in its
highest efficiency when hiring minimum number of most qualified personnel.
Moreover, avoiding centralization i.e. routine; bureaucracy and long paper work have a
significant impact. This research confirmed the domination of functional organization
structure in Egyptian companies. The study concludes that a composite structure
between matrix and functional organizational structure based on (geographical location
or project type), may be recommended as the optimal organizational structure for
contracting firms of class “A" in Egypt.