Construction-Organization.pdf
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Construction-Organization.pdf
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INVESTIGATIONANDMODELINGOFCRITICALSUCCESSFACTORSINCONSTRUCTIONORGANIZATIONSEmadElwakil1,MohammadAmmar2,TarekZayed3,MuhammadMahmoud4,AhmedEweda1andIbarhimMashhour41PhDStudent,ConcordiaUniversity,DepartmentofBuilding,Civil&Environ.Eng.,1455DeMaisonneuveBlvd.West,Montreal,Quebec,CanadaH3G1M8.2AssociateProfessor,StructuralEngineeringDept.,FacultyofEngineering,TantaUniversity,Tanta,Egypt.Presently:
VisitingScholar,BCEEDepartment,ConcordiaUniversity,Montreal,Quebec,C.3AssociateProfessor,Building,Civil,andEnvironmentalEngineeringDepartment,ConcordiaUniversity,Montreal,Quebec,Canada,email:
zayedencs.concordia.ca4M.A.ScStudent,ConcordiaUniversity,DepartmentofBuilding,Civil&Environ.Eng.,1455DeMaisonneuveBlvd.West,Montreal,Quebec,CanadaH3G1M8.ABSTRACTProfitandsuccessareconsideredthemaindriversofanyorganization.Achievingthissuccessisbasedonmanyfactorswhichhaveadirecteffectontheperformanceoftheseorganizations.Predictingconstructionorganizationsperformancehelpsdefinetheweakorganizationpointsinordertoimproveitsperformanceandincreasetheprofit.Inconstructionorganizations,itismoredifficulttoachieveormaintainascientificstrategytomeasuretheircurrentsuccessduetothediversityandcomplexityofconstructionorganizations.Previousstudiesusedquestionnairesandinterviewswithtechnicalandprofessionalpersons.However,mostofthesestudiesconcentratedonthecriticalsuccessfactorsonprojectlevel.Thescopeofthisstudyistoinvestigatethemostsignificantorganizationalsuccessfactorswithfocusonconstructionorganizations.Thispaperaimsatdeterminingmostsignificant(i.e.critical)successfactors,andtodevelopamodeltopredictthecompanyperformancebasedonthesecriticalsuccessfactors.Thepotentialsuccessfactorsweresurveyedfromtheliteraturestudy.Aquestionnairewaspreparedforevaluatingtheeffectofthosepotentialsuccessfactorsonorganizationalperformance.ThedatacollectedwereanalyzedusingArtificialNeuralNetworks(ANNs).Neuro-Shellsoftwarewasusedtorankthepotentialsuccessfactorsutilizingthedataobtainedfromdifferentconstructionorganizations.Thecriticalsuccessfactorswereusedin-turntodevelopaNNpredictionperformancemodelofconstructionorganizations.Themodelcanbeusedtopredicttheperformanceofaconstructionorganizationbasedonestimatedvaluesofitssuccessfactors.350CopyrightASCE20092009ConstructionResearchCongressDownloaded07Jan2011to202.108.77.87.RedistributionsubjecttoASCElicenseorcopyright.Visithttp:
/www.ascelibrary.orgINTRODUCTIONCurrently,theworldiswitnessingconstructionbooming.Profitandsuccessareconsideredthemaindriversofanyorganization.Achievingsuccessisusuallybasedonmanyfactorswhichhavedirecteffectontheperformanceoforganizations.Inconstructionorganizations,itismoredifficulttoachieveormaintainascientificstrategytomeasuretheircurrentsuccessduetothediversityandcomplexityofconstructionorganizations(Abraham2002).Predictingperformanceofconstructionorganizationshelpsdefineweakpointsinordertoimproveitsperformanceandincreasetheprofit.KaplanandNorton(1993)concludedthatitiscriticaltomeasureandcontrolnewstrategiesaftertheyhavebeenputtoworkattheoperationalphaseofconstructionorganizations.Inaresearchconductedtomeasuretheperformanceonexecutivemonitoringsystem,Holophan(1992)provedthatcriticalsuccessfactors(CSFs)arethebestmethodologytodevelopanexecutivemonitoringsystemtocontaincorporate-wideindicatorsofsuccess.Successisthemainaimofanyorganization.Manyresearcheffortshavebeendonetodeterminethesuccessfactorsbutmostofthesestudieshavebeendoneontheprojectlevelnotontheorganizationallevel.ThedeterminationofCSFswasapproachedviavariousmethods.Themostcommonlyusedmethodsarequestionnairesandinterviewswithtechnicalandprofessionals.MostoftheconstructionorganizationsCSFsarequalitativeratherthanquantitative.Toreachconstructionorganizationsuccess,itwasfoundthatthereisaneedtodeterminethesefactorsanddeterminethecriticalonesattheorganizationallevel.AmodelcanbebuildtorelateorganizationsuccesswithCSFs,whichcanthenbeusedlatertopredictandimproveorganizationalperformance.Thescopeofthepresentstudyistoinvestigatethemostsignificantorganizationalsuccessfactorswithfocusonconstructionorganizations.ThemainobjectiveistospecifyCSFsafterprioritizingpotentialsuccessfactorsanddeterminingtheirimpactontheperformanceofconstructionorganizations.Thisstudywentthroughthefollowingorganization.Literaturereviewofcriticalsuccessfactorsandpreviousmodelingworkwascarried-out.Extensiveeffortsweredonetocollectdatafromvariousconstructionorganizations.Dataanalysiswasperformedusingartificialneuralnetworktechnique.Theneuralnetworktechniquewasusedtorankpotentialsuccessfactorscoveredinthequestionnaire.Aregression-basedmodeltopredictorganizationalperformancewasdeveloped.TheproposedmodelwasverifiedandthenvalidatedusingR2statisticalmeasure.LITERATUREREVIEWOrganizationasatermhasmanydifferentdefinitions.ItisdefinedaccordingtotheAmericanHeritageCollegeDictionary(1993)as:
“Anorganizationisastructurethroughwhichindividualscooperatesystematicallytoconductbusiness.”Aldrich(1979)definedtheorganizationas:
“Goaldirectedboundary-maintainingactivitysystems.”Thedefinitionofsuccesshasbeenchangedandmoredevelopedtoincludethequalityoftheprojectasanindicationofsuccess.Theprojectsuccessdiffersfromonepersontoanotherandthesuccesscriteriaarechangingaccordingtotheprojectitself.However,successismostlydefinedastheoverallachievementofaprojectgoalsandexpectations(ParfitandSanvido1993).Manufacturing,communication351CopyrightASCE20092009ConstructionResearchCongressDownloaded07Jan2011to202.108.77.87.RedistributionsubjecttoASCElicenseorcopyright.Visithttp:
/www.ascelibrary.organdotherindustriesusedtherevenuegrowthratemeasurementoveraperiodoftimeasafactortodeterminesuccess.Thepreviousdefinitionsofsuccessareprojectoriented.Moreover,theyarenoteasilymeasurablewhethertheyarequantitativeorqualitativefactors.CSFsasaconceptandtheirapplicationstobusinessarenotnew;itdatesbackto1960sbyDaniel(1961).CSFsappearedfirstininformationsystemindustrytoidentifyexecutiveinformationneeds(Rockart1979).Rockart(1981)approachedanddescribedtheprinciplesofsuccessfactorstomakeasystematicwayofidentifyingtheneededinformationforexecutives.Rockart(1982)definedCSFsas“thelimitednumberofareasinwhichsatisfactoryresultswillensuresuccessivecompetitiveperformanceoftheorganization.”RockartandBullen(1981)differentiatedbetweenthegoalsandCSFsthroughthetraditionalstrategicplanningandmanagement,wherethegoalandobjectivesarefairlywellknownbuttheCSFsdefinitionismuchlessclear.However,theorganizationgoalsaredefinedtobethetargetsthatareestablishedtoachievetheorganizationsmission.Theyareveryspecific,knownwhatandwhentobeachieved,bywhomandshouldhaveaquantitativemeasurableelements(Richard2004).Rockart(1979)identifiedfourprimesourcesofCSFsforanyorganizationworkinginanyindustry,whichare:
1.Structureoftheindustry:
hasitsownsetofCSFswhicharedependentonitscharacteristics.2.Competitivestrategy,industrypositionandgeographiclocation:
Eachorganizationhasitsownstrategiesandstrategicplanduetothenatureoftheindustryinwhichitoperates.3.Environmentalfactors:
theeffectsoftheenvironmentupontheorganizationbehaviorareessentialtounderstandtheCSFs.4.Temporalfactors:
CSFschangewiththechangeoftheorganizationpriorities,wheretheareasofactivityforsuccesschangesandsomeactivitiesbecomemorecriticalandotherbecomelesscritical.AhmedandDye(1994)addressedthecommonessentialattributesofbusinessorganizationsthroughoutanextensiveliterature.Theseattributesshouldbetakenintoconsiderationwhileanalyzingorganizationperformance.Theseorganizationalperformancecriteriaandtheirsub-factorsaresummarizedinTable1.Camp(1995)gavealistofthemostimportantinternalbusinessprocessesthatmightbeconsideredwhenevaluatingfirmsperformanceagainstothercompetitors.Thelistincludes:
MarketManagement,ProductDesignandEngineering,ProductOperations,CustomerEngagement,LogisticsandInventoryManagement,ProductMaintenance,BusinessManagement,InformationandTechnologyManagement,FinancialManagement,andHumanResourceManagement.Thefirstsixfactorsareconsideredoperationalbusinessprocesses,whiletherestaresupportbusinessprocesses.Infurnitureindustry,Buxey(2000)describedthevariousstrategiesofAustraliancompanies,inwhichthemainstrategiesattributesareproductinnovationandquality,brandimage,excellentcustomersupport,outsourcing,relocationtooff-shoresitestolowercost,andtariffprotection.QuesadaandGazo(2007)modeledaprioritizationtoolforrankingCSFsandkeyperformancemeasuresandinternalbusinessprocessesinfurnitureorganizations.AsaresultofQuesadaandGazo(2007)352CopyrightASCE20092009ConstructionResearchCongressDownloaded07Jan2011to202.108.77.87.RedistributionsubjecttoASCElicenseorcopyright.Visithttp:
/www.ascelibrary.orgstudy,itwasconcludedthatthemostcriticalinternalbusinessprocessesfortheofficefurniturecompanieswerecustomerengagementandproductoperations.Table1:
PerformanceCriteriaandFactors(AdoptedfromCaballeroandDye1999)BusinessExperiencePersonnelFinancialNumberofyearsinbusinessNumberof
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