Developing Incentive Strategies for Implementation of Lean Construction

Luis F. Alarcón1 & Loreto Seguel2

1Professor of civil Engineering, Universidad Católica de Chile, Escuela de Ingeniería, Casilla 306, Correo 22, Santiago, Chile, e-mail: lalarcon@ing.puc.cl
2Graduate Research Assistant, Graduate Research AssistantUniversidad Católica de Chile, Escuela de Ingeniería, Casilla 306, Correo 22, Santiago, Chile, e-mail: lseguel@puc.cl

Abstract

This paper describes a methodology that has been developed by a group of Chilean construction companies to select employee and organizational incentives to encourage participation and commitment to the implementation of improvement actions in their organizations. These companies are carrying out joint efforts to implement lean practices that will lead them to gain improved competitiveness in their markets. The selection of incentives to introduce changes in an organization goes beyond the economic aspects and should address a full range of aspects and levels within the organization, involving upper and middle management, and workers. This paper focus mainly in the incentives for middle management, a level that has been found to be key for successful implementation of changes in the organizations. The methodology considers theoretical aspects as well as attitudes and perceptions obtained from each organization. The focus of the methodology is in identifying “drivers for change” at different levels: individuals, organizations and as a group of companies. As a result the methodology support the selection of incentives at each one of the levels addressed.

Keywords

Employee Incentives; lean construction; organizational change; human resource management

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Reference

Alarcón, L.F. & Seguel, L. 2002, 'Developing Incentive Strategies for Implementation of Lean Construction' In:, Formoso, C.T. & Ballard, G., 10th Annual Conference of the International Group for Lean Construction. Gramado, Brazil, 6-8 Aug 2002. pp 403-414

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