Analyzing the Interrelation Between Management Practices, Organizational Characteristics and Performance Indicators for Construction Companies

Tito Castillo1, Luis F. Alarcón2, José Salvatierra3 & Daniela Alarcón4

1PhD candidate, Department of Construction Engineering and Management, Pontificia Universidad Católica de Chile, Researcher Universidad Nacional de Chimborazo, Ecuador, Av. Vicuña Mackenna 4860, Macul, Santiago, Chile Phone +56 2 23547041, tocastillo@uc.cl
2Professor, Department of Construction Engineering and Management, Pontificia Universidad Católica de Chile, Av. Vicuña Mackenna 4860, Edificio San Agustín 3er Piso, Macul, Santiago, Chile, Phone +56 2 2354 4244, lalarcon@ing.puc.cl
3Assistant professor of Civil Engineering, Department of Civil Engineering, Universidad de Santiago de Chile. Av. Ecuador 3659, Estación Central, Santiago, Chile, Phone +56 2 27182818, jose.salvatierra@usach.cl
4Project Consultant, Production Management Consultants - GEPRO, Av. Vicuña Mackenna 4860, Edificio Mide UC 3er Piso, Macul, Santiago, Chile, Phone +56 2 2354 7050, dalarcon@gepro.cl

Abstract

Recent studies have established the importance of best management practices in company performance measured by productivity, safety and other performance indicators. Research about the relationship between the characteristics of the organization and its performance has not yet arrived to definitive conclusions. This research aims to examine the relationship between management practices, characteristics of organizations and the project performance. Knowing these relations is necessary to achieve better management strategies. This paper presents results of the first application of a benchmarking effort carried out among nine Chilean construction companies. Management practices, grouped in fifteen dimensions, were assessed from data obtained through surveys. Weighted average of the responses from each survey was used to obtain scores for each dimension. Social Network Analysis (SNA) was used to capture characteristics of the organization on relevant issues such as communication; planning and personal issues and its metrics were the input for the analysis performed. Project performance was measured using nine key performance indicators (KPI) that were periodically reported by the companies. Correlation analysis was used to analyse the relationship among management practices scores, social network metrics and KPIs. The results show significant relationships that can be useful to design performance improvement strategies for companies and projects.

Keywords

Lean construction, flow, network, complex, SNA

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Reference

Castillo, T. , Alarcón, L.F. , Salvatierra, J. & Alarcón, D. 2015, 'Analyzing the Interrelation Between Management Practices, Organizational Characteristics and Performance Indicators for Construction Companies ' In:, Seppänen, O., González, V.A. & Arroyo, P., 23rd Annual Conference of the International Group for Lean Construction. Perth, Australia, 29-31 Jul 2015. pp 691-700

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