Learning Organizations in Construction

The transformation of organizations from production-oriented entities to proactive learning entities that continuously leverage the knowledge of the workforce is a primary objective of management researchers. This focus has significant relevance to the construction industry where production-related research has predominantly overshadowed organizational development research. As one effort to change this emphasis, the writers present a research effort designed to study current organization learning techniques and technologies fielded by organizations both inside and outside of the construction industry. Through a series of exploratory case studies, the writers developed a maturity model together with the Construction Industry Institute that provides construction organizations with a framework for developing a learning organization culture. The maturity model focuses on learning organization characteristics of leadership, processes and infrastructure, communication/collaboration, education, and culture at the organization, community, and individual levels. This paper introduces the results of that effort including a presentation of the learning organization maturity model, framework application, and the overall characteristics of a learning organization.     

Exploratory Study of Knowledge Sharing in Contracting Companies: A Sociotechnical Perspective

According to Dede Bonner in 2000, employees hold a wealth of knowledge and experience about their companies, including the products, customers, internal processes, histories, technologies, and competitors. But this knowledge is usually dispersed across scattered individuals and locations. Although learning happens at an individual level, it is usually as a one-time event, without an organizational context or a sense of continuity. Knowledge is kept in people’s minds but not shared in an organization. Not until the 20th century did people start to realize that knowledge is critical to the success of a company and considered to be the pivotal point for aggressive organizational growth in today’s highly competitive marketplace. This is also true for the Hong Kong construction industry. In order to gain a deeper understanding of the current situation of knowledge sharing at the departmental level in contracting companies, this research was carried out with the aims of investigating the main barriers to and finding out the critical factors for and benefits resulting from effective knowledge sharing in the tendering departments of contracting companies in Hong Kong and the United Kingdom. The research reviews existing theories of knowledge and knowledge sharing. It seeks to contribute to the theory of organizational knowledge sharing by providing an explorative account supported by empirical evidence. It also allows management to continuously anticipate and support knowledge sharing activities related to the successful management of construction projects within their particular organizations.     

Knowledge Management to Learning Organization Connection

The changes in the engineering-construction industry of the 21st century require organizations to take a more active role in developing knowledge management and learning organization initiatives. The need to both retain knowledge within the organization and focus on continuous human resource development throughout all levels of the organization is becoming a primary challenge throughout the industry. This paper addresses this challenge by focusing on the question of the link between knowledge management and learning organizations, and how to transform an organization from a focus on knowledge management to a focus on developing a learning culture. Based on a series of studies by the writers into the characteristics of both knowledge management and learning organizations, this paper outlines models of each of these concepts and introduces a bridge that details the level of knowledge management implementation that must be in place prior to an organization having the capacity to move to a learning focus. Additionally, the case studies conducted during the current study provide a basis for presenting potentially unsuccessful paths that may be selected by organizations during the implementation of a knowledge management to learning organization transition.     

Building Learning Organizations in Engineering Cultures: Case Study

The ability of organizations to learn is critical for success. Implementing organizational learning in engineering cultures can be difficult due to a focus on technology instead of people and imbalances among cultures within an organization. A project to transform a medium-sized engineering organization into a learning organization is reported, and the degree, nature, and causes of its success are evaluated. An implementation team developed skills in five disciplines of a learning organization. However the underlying organizational learning concepts were not embraced by the organization at large or incorporated into regular operations. Success was constrained by the organization's ability to share and utilize the knowledge acquired by the implementation team to generate organizationwide commitment to organizational learning. The dominance of the engineering culture and the lack of organizational learning infrastructures and development process experimentation suggest that organizations with a balance among cultures may be more likely to succeed than those dominated by a single culture.     

Exploiting Knowledge Management: The Engineering and Construction Perspective

Construction companies have always relied on their knowledge assets to provide services to clients. In recent years the terminology “knowledge management” has been introduced. Knowledge management (KM) seeks to formalize the manner in which companies exploit their knowledge assets by harnessing organizational knowledge, promoting greater collaboration between groups with similar interests, capturing and using lessons learned on previous projects, etc. This paper investigates how major United States engineering design and construction firms are implementing knowledge management initiatives in order to identify best practice. It adopts a case study methodology to investigate companies’ strategy and implementation, people aspects, and metrics for performance. The study finds that there is a clear distinction between the knowledge management activities undertaken by large engineering design firms and those of construction firms. There is also a much greater emphasis on knowledge sharing, which is just one component of knowledge management. Moreover, some companies have specific KM initiatives while others have activities that are part of their normal business processes.     

Project Management in the Chinese Construction Industry: Six-Case Study

Originating from the West, project management was introduced into China after the country’s economic reforms in the 1980’s and has since spread quickly throughout the whole country, particularly in the construction industry. However, despite the wide adoption of project management practices by construction organizations and the growing recognition of the importance of project management as an enabler of organizational success, empirical studies on project management in the context of the Chinese construction industry have been inadequate. This paper presents the results of an empirical study of six Chinese construction organizations in order to come to a more comprehensive and sophisticated understanding of project management practices in the Chinese construction industry. The findings revealed: (1) a good appreciation of the role of projects and project management and satisfaction with current project management practices; (2) 11 key aspects of project management implementation; (3) 12 resultant value and benefits; and (4) five aspects of the main challenges facing the organizations. Meanwhile, variations in project management practices and the resultant organizational value were identified, first between the three owner- and the three contractor-case study organizations, then between the two construction contractor organizations and the one design contractor organization.     

Examining the Relationship between Organizational Learning Styles and Project Performance

A review of literature on organizational learning suggested that organizations mainly exhibit three types of learning styles: single-loop learning (SLL), double-loop learning (DLL), and deutero learning (DeuL). SLL refers to the detection and correction of errors without adjusting one’s underpinning assumptions about performance requirements. DLL refers to improvement actions which are undertaken in response to the change of one’s underpinning assumptions. DeuL refers to the establishment of a system which propels continuous learning. It has been advocated that effectuating these learning styles are critical for attaining continuous project performance improvement. This paper reports a study that aimed to examine the relationship between organizational learning styles and performance improvement in construction projects. A conceptual model for the same was first developed. Data about the contracting organizations’ practice of learning styles and project performance were collected through a questionnaire survey. Structural equation modeling was used to examine the significance of the relationship between organizational learning styles and project performance improvement. It was found that the attainment of project performance improvement was positively related to the practice of DLL. Further, DeuL was found essential for facilitating the practice of SLL and DLL.     

Ontology-Centered Knowledge Management Using Information Retrieval Techniques

The paper argues that an effective solution to information and knowledge management (KM) needs of practitioners in the construction industry can be found in the provision of an adapted knowledge environment that makes use of user profiling and document summarization techniques based on information retrieval sciences. The conceptualization of the domain through ontology takes a pivotal role in the proposed knowledge environment and provides a semantic referential to ensure relevance, accuracy, and completeness of information. A set of KM services articulated around the selected ontology have been developed, using the Web services model, tested, and validated in real organizational settings. This provided the basis for formulating recommendations and key success factors for any KM project development.     

Organizational Alternatives for Large Projects

Organizing large construction projects can be as confusing and challenging as managing them. Many organizational variations are possible. This paper describes five major organizational alternatives and reviews the advantages and disadvantages of each. The alternatives include: (1) Strong functional organization; (2) functional organization with area coordination; (3) functional organization wth area management; (4) area management with craft discipline staff; and (5) autonomous area organization. This paper also proposes a method for selecting a project organization that involves developing organizational criteria and using these criteria in an evaluation matrix. Such a process could aid managers in meeting the challenge of effective project organization.     

Optimal Project Organizational Structure for Construction Management

This study relies on the trend model to investigate various modes of coordination among team members of construction projects. According to the project network developed based on the characteristics of a project, the trend model establishes an activity relationship matrix (ARM) to identify the activity relationships within the construction process. ARM is used to construct an organizational structure for project management and a communication resistance matrix that shows the efficiency of communication and coordination among the members of the project team. To evaluate various organizational structures and their coordination efficiencies, this study utilizes the analytical hierarchy process to quantify the strength of an organizational structure and identify the optimal structure for project management. Through quantitative modeling of communication efficiency among organizational team members, an objective function for calculating the total resistance index is used to determine the optimal organizational structure available to execute the project. This study demonstrates how the trend model may be applied in the future for evaluating the coordination efficiencies of various organizational structures.     

Project Management Process Maturity (PM)2 Model

This paper presents the project management process maturity (PM)2 model that determines and positions an organization’s relative project management level with other organizations. The comprehensive model follows a systematic approach to establish an organization’s current project management level. Each maturity level consists of major project management characteristics, factors, and processes. The model evolves from functionally driven organizational practices to project driven organization that incorporates continuous project learning. The (PM)2 model provides an orderly, disciplined process to achieve higher levels of project management maturity.     

Moderating Effect of Organizational Learning Type on Performance Improvement

It has been advocated that information available from a performance measurement system (PMS) is an invaluable source of knowledge for contracting organizations. As such, it has been suggested that performance improvement can be achieved if contracting organizations can capitalize on the learning opportunities accorded from feedback derived from a PMS. Literature on learning also suggests that organizations display three types of learning: (1) single loop, double loop and Deutero. This paper reports a study that aims to (1) empirically test the positive effect derived performance feedback on performance; and (2) identify the extent to which the learning types have significant impact on performance improvement. Data on performance, performance feedback available, and responses were collected through a questionnaire survey. Pearson correlation and multiple moderated regression were used to accomplish research objectives (1) and (2), respectively, as mentioned. The findings suggested that there is a significant correlation between performance improvement and feedback from a PMS. It was found that all three forms of organizational learning can contribute to performance improvement and are not mutually exclusive. Nonetheless, double-loop learning practices that addresses the root causes of underperformance were found to be more versatile in facilitating improvement in efficiency and effectiveness.     

Model for Organizational Governance Structure Choices in Construction Joint Ventures

Due to the recent trend of utilizing joint ventures (JVs) in construction, construction firms are faced with the challenges in managing construction JVs. Among those challenges, the choice of organizational governance structure has a profound impact on JV performance, but receives little attention. The objective of this study is to investigate the choice of organizational design in construction of JVs and the underlying rationales of the choice. Through the theoretical lens that integrates both cost and resource perspectives, we develop a model that focuses on four major factors for determining governance structure choices, namely, corporate cultural difference, trust, needs for procurement autonomy, and motivation for learning. A case study of eight JVs in the Taiwan High Speed Rail project was conducted to empirically evaluate the proposed model. It is shown that the eight cases studied jointly replicate the linkage between the hypothesized determinants and the governance structure choices and reasonably support the proposed model.     

Prototype System for Knowledge Problem Definition

Attitudes to knowledge management (KM) have changed considerably as organizations are now realizing its benefits. Implementation, however, has been facing serious difficulties attributed either to not being able to anticipate the barriers when planning KM strategies or to using inappropriate methods and tools for implementation. These difficulties are more critical in construction due to the fragmented nature of the industry. This paper suggests that proper definition of a KM problem at the early stages of developing the KM initiatives will result in better control over the KM barriers. A methodology for identifying KM problems within a business context is then introduced. The methodology is encapsulated into a prototype software system, which facilitates its deployment in organizations and provides online help facilities. The methodology, development, operation, and evaluation of the prototype are described. The paper concludes that the prototype offers considerable potential for delivering a clarified KM problem and a distilled set of issues for an organization to address. This represents a significant first step in any KM initiative.     

Scorecard Approach to Benchmarking Organizational Safety Culture in Construction

This paper promotes adopting the balanced scorecard tool to benchmark organizational safety culture in construction. It argues that this tool has the potential to provide a medium to translate the organization’s safety policy into a clear set of goals across four perspectives: management, operational, customer, and learning. These goals are then further translated into a system of performance measures that could effectively communicate a powerful strategic focus on safety to the entire organization. Four perspectives have been developed to represent all stakeholders, thereby ensuring that a holistic view of safety is used for strategic reflection and implementation. The paper argues that by selecting and evaluating the appropriate measures, in each perspective, requirements can be identified, and actions to the identified goals can be aligned and facilitated. The proposed balanced scorecard approach should therefore enable construction organizations to pursue incremental safety performance improvements. Work-in-progress is briefly reported to give insight into the potential applicability of this approach.     

Multicriteria Financial Portfolio Risk Management for International Projects

While opportunities for international construction firms have been growing with globalization, the risks involved with international construction projects are increasing significantly. However, due to the complex skein of various risks, it is difficult to evaluate the severity of risk variables at the corporate level and to examine key success factors in an attempt to maximize a firm’s value under the challenging global business environment. This paper focuses on a financial portfolio risk management for international projects to integrate the risk hierarchy of both individual projects and at the corporate level, which applies a multicriteria decision making method to maximize the total value of firms. To demonstrate the approach, a case study is conducted based on real projects collected from a multinational general contractor. Finally, we present lessons learned as well as guidelines for the application of these lessons to future projects through a workshop with industry practitioners.     

Authority Structures for Construction Project Management

Many practitioners believe that how one organizes to support a major construction project will have a significant impact on the successful completion of the project. This paper provides a primer on authority structures. The basic corporate organizational forms are described and construction examples are given. The basic authority structures for project management are also described. These forms are the functional, pure project, and matrix. For each form, the advantages and disadvantages as they relate to the project manager's ability to support the project are cited. Nine factors that influence the choice of authority structure are discussed. The role of the project manager is described. His effectiveness as a manager is related to the organizational form, hierarchy within the organization, authority gap, management style, and the ability to resolve conflict. Six principles for developing a project organization and selecting a project manager are given.     

Strategic Assets Driving Organizational Capabilities of Thai Construction Firms

This research study aims to identify strategic assets which currently drive and enhance the organizational capabilities of construction firms. There were 258 sets of questionnaires assessing the level of importance given to 106 substantial resources underlying six organizational capabilities of Thai construction firms that were analyzed. Using factor analysis, these 106 items were reduced to 14, which were termed strategic assets. These 14 strategic assets were then classified based on their influence on the six organizational capabilities. The results indicate that Thai construction firms concentrate mostly on developing excellent reputation, creating strong bargaining power with suppliers and subcontractors, and strengthening the firm’s financial stability. However, they do not give much importance to effective risk and investment management, continuous development and innovation, and explicit strategic management. These findings provide in-depth insight to comprehensively understanding a Thai construction firm’s capabilities. These 14 strategic assets should thereafter be used to develop a practical tool for managers of construction firms to evaluate their firm’s strengths and weaknesses as well as to identify strategic assets required to enhance competitiveness in the market.     

Case Study of Organizational Changes

This paper documents a case study of the organizational evolution, over a ten‐year period, of a U.S. electric utility company in support of the construction of a two‐unit nuclear generation facility. A number of principles for designing an organization are summarized, and it is suggested that these be used in the organizational planning process. Seven major reorganizations are described, and these changes are compared to the organizational planning principles. The project was half complete before all key engineering and planning functions were consolidated under a single manager. It was approximately 80% complete before the authority of the project director was commensurate with his responsibilities. It is shown how the project authority structure emerged as functional but was later changed to a projectized one. After several realinements, a matrix organization was tried. A strong project structure replaced the matrix structure when the resources of the entire organization were committed to completing the project.