MANAGEMENT COMPETENCIES OF CONSTRUCTIONAL

PROFESSITIONALS FOR SUCCESS COMPLETING

CONSTRUCTION PROJECTS IN SRI LANKA

R.R.G.S. BANDARA
MBA, PGD (Cons Mg,), BEng Tech, (Civil)

This thesis is submitted in fulfilling the requirement of the Degree of

Doctor of Philosophy

Faculty of Business Management

IIC University of Technology
Cambodia

2024
 DECLARATION

I, certify that this thesis does not incorporate without acknowledgement any material
previously submitted for a Degree or Diploma in any University and to the best of my
knowledge and belief it does not contain any material previously published or written by
another person expect where due reference is made in the text.

…………………….……….…….…… ………………………………
Bandara Date

i
 CERTIFICATION OF THE SUPERVISOR

This serves as a declaration that Mr. Wickrama Rathnakumara Punchihewa completed this
research under my guidance and has met the requirements for the Doctor of Philosophy
(PhD) degree offered by the IIC University of Technology, Cambodia, making him eligible to
submit it.

………………..........……………. ……………………………..
Professor Ananda J. Patabendige (PhD) Date

ii
 ACKNOWLADGEMENTS

First of all, I would like to offer my sincere thanks to Senior Professor Ananda J. Patabedige,
was being my supervisor and having faith in me for carrying the responsibility of doing PhD
thesis under his profound guidance. His prominence in giving me this opportunity and his
constant attention and support throughout the research thesis conferred me with a sense of
responsibility. He was always helped me at all times and without his contribution as the
professor in Research Methodology, I would not be able to conclude this research. Apart
from a wonderful teacher, he is great human being and I respect him from the depth of my
heart.

I acquired a great deal of knowledge, especially in management and Organizational success

factors from the PhD program and I would like to convey my heartfelt gratitude to the
lecturing panel of the IIC Technical University, Cambodia.

My wholehearted gratitude and appreciation are hereby extended to the Director of EIPEL
Mr. Vijith Walgamage, my batch mate Wickrma Punchihewa and to the respondents for their
participation in the study.

At last but not least, I would like to give special appreciation & respect to my family for
giving me all the encouragement & support and no expressions could be enough to mention
my appreciation to them. I owe all the achievements in my life including this thesis to them.

R.R.G.S. Bandara

iii
 ABSTRACT

The construction industry’s progress in Sri Lanka was retarded from around 9% in 2019 to
6% of GDP by 2022 after setback brought about from the aftermath of covid -19 and the
bankruptcy announced by the Sri Lankan authorities with forecasting a further reduction of
its growth to 5% for the period of 2024-2047. In this setting, this study aims at exploring the
possible reasons for such a depression in this industry, whether they are management related
causes or some other reasons especially by checking the strength of management
competencies of construction professionals and other causes contributing to development of
construction projects using a mixed method of research approach first, selecting a random
sample of 10% out of the population of corporate level construction professionals. Then
through literature review attempts were made to identify the relevant management skills
needed for construction managers in the construction industry. Accordingly, a large number
of such skills could be identified, and they were categorized into four major management
competencies such as core, cross functional, functional and proactive competencies of
managers based of which four research hypotheses were formed in declarative form. Then,
administrating a questionnaire using mainly Likert method data were collected and
countified. Accordingly, high scores were obtained showing professionals have considerably
a higher level of competencies related to all categories of main competencies. Therefore,
study decide more than management competencies of construction professionals some other
reasons such as scarcity of construction labour, material, financial resources, unfavourable
climatic conditions can badly affect delaying completion of construction projects and
progress of the industry recommending authorities to pay more attention to solve these latter
kinds of problems. Also, the study found the need of increasing construction industry’s
current level of factor productivity introducing the concept of total factor productivity which
is a new concept to this industry in Sri Lanka. Further, it was found that R & D set aside for
this industry was inadequate and recommended for making a higher R & D allocation to
produce and introduce, particularly more cheaper materials like seasoned wood, plastic,
aluminum and other kind of materials as used by developed countries for building industry to
minimize material costs and save natural resources for ensuring the future sustainability of
the industry.

iv
 TABLE OF CONTENTS

Page No.

Declaration ………………………………………………………………………………. i
Certification Of The Supervisor …………………………………………………………. ii
Acknowladgements ……………………………………………………………………… iii
Abstract ………………………………………………………………………………….. iv
Table of Contents ……………………………………………………………………….. v
List of Tables …………………………………………………………………………… ix
List of Figures …………………………………………………………………………... xi
List of Abbreviation …………………………………………………………………….. xii

CHAPTER 1 - INTRODUCTION

1. Introduction ………………………………………………………………….... 1
1.1 Background of the Research ……………………………………………….…. 1
1.2 Problem Statement ………………………………………………………….… 7
1.3 Research Questions …………………………………………………………… 9
1.4 Objectives of the Study ……………………………………………………….. 10
1.5 Hypotheses ……………………………………………………………………. 10
1.6 Significance of the Research ………………………………………………….. 11
1.7 Limitation of the Study ………………………………………………………… 13
1.8 Thesis Structure ………………………………………………………………... 14
1.9 Chapter Summary ……………………………………………………………… 14

CHAPTER 2 - LITERATURE REVIEW

2.1 Introduction ……………………………………………………………………… 15

2.2 Definition of Competencies ……………………………………………………… 15
2.2.1 History of Competencies ………………………………………………… 16

2.3 Theoretical Background …………………………………………………………. 18

2.3.1 Evaluation of Competencies …………………………………………….. 18

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 2.3.2 Workplace Competences ………………………………………………... 19
Page No.

2.4 Theoretical Framework ………………………………………………………….. 20

2.4.1 Competency Framework ………………………………………………… 23
2.4.2 Core Characteristic of Competencies ……………………………………. 24
2.4.3 Dimension of Competencies …………………………………………….. 26
2.5 Conceptual Background …………………………………………………………. 27

2.6 Competence Theory, Policy And Practice ………………………………………. 32

2.7 Quantitative Approach ………………………………………………….………... 36

2.7.1 The Learning And Growth Perspective …………………………………. 37

2.8 Competency Framework ………………………………………………………… 37

2.8.1 Competencies ………………………………………………………………39

2.9 Developmental Trends In Relation To Perceived Competence …………………. 43

2.10 The Impact Of Significant Others On Competence Motivation ………………… 43

2.11 Organizational Success ………………………………………………………….. 45

2.11.1 Profitability of an Organization …………………………………………. 46

2.11.2 Important Elements of a Profit Model …………………………………… 48
2.11.3 Sustainability of an Organization ………………………………………... 48
2.11.4 Stakeholder Satisfaction …………………………………………………. 51
2.11.5 Expansion of Organization ………………………………………………. 53
2.12 Think about before growing a Business …………………………………………… 54
2.13 Disadvantages of Organizational Growth ………………………………………… 54
2.14 Advantages of Organizational Growth …………………………………………… 55
2.14.1 Expansion of Organization Locally……………………………………… 56
2.14.2 Join Local Groups ……………………………………………………….. 56
2.14.3 Hold Contests and Competitions ………………………………………… 56
2.14.4 Offer Local Discounts and Rewards ……………………………………... 56
2.14.5 Partner with Local Businesses and Influencers …………………………... 57
2.14.6 Add Business to any Local Listings ……………………………………… 57
2.14.7 Expansion of Organization Internationally ………………………………. 57

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 Page No.

2.15 Modern Concept of Competencies ……………………………………………….. 59

2.16 Application of Competencies ………………………………………………………60
2.17 The Competencies being used and Supported …………………………………… 62
2.18 Application of Competencies in Developed Countries …………………………... 62
2.19 Application of Competencies in Developing Countries ………………………….. 63
2.20 Identifying the Relationship ……………………………………………………… 64
2.21 Relationship of Core Competencies with Organizational Success ……………….. 65
2.22 Relationship of Cross Functional Competencies with Organizational Success ….. 67
2.23 Relationship of Functional Competencies with Organizational Success ………… 68
2.24 Chapter Summary ………………………………………………………………… 69

CHAPTER 3 - RESEARCH METHODOLOGY

3.1 Introduction ……………………………………………………………………… 70
3.2 Methodology …………………………………………………………………….. 70
3.2.1 Sampling Frame …………………………………………………………. 70
3.2.2 Data Collection ………………………………………………………….. 70
3.3 Sampling Procedure and Sampling Techniques ………………………………… 71
3.3.1 Primary Data …………………………………………………………….. 71
3.3.2 Secondry Data …………………………………………………………… 71
3.4 Nature of the Selected Sample …………………………………………………... 72
3.5 Distribution of Task Group Personal …………………………………………….. 73
3.6 Selection of Sample ……………………………………………………………… 74
3.7 Sampling Accuracy ………………………………………………………………. 74
3.8 Validty of Sample ………………………………………………………………… 75
3.9 Conceptual Model ………………………………………………………………… 75
3.10 Operationalization and Variable Association …………………………………….. 75
3.11 Data Analysis Methods …………………………………………………………… 77
3.12 Analitical Tools and Methods of Data Interpretation …………………………….. 78
3.13 Chapter Summary ………………………………………………………………… 79

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 Page No.

CHAPTER 4 - EMPIRICAL DATA PRESENTATION & ANALYSIS

4.1 Introduction ………………………………………………………………………. 79

4.2 Views of Construction Professionals ……………………………………………... 79
4.3 Analysis …………………………………………………………………………… 95

4.3.1 Analysis of Empirical Findings …………………………………………... 95

4.3.2 Analysis of Core Competencies Indicators ………………………………. 96
4.3.3 Analysis of Cross Functional Competencies …………………………….. 98
4.3.4 Analysis Of Proactive Competencies …………….………………………. 102

4.4 Summary ………………………………………………………………………….. 104

CHAPTER 5 - CONCLUSION AND RECCOMANDATION

5.1 Introduction ………………………………………………………………………. 104

5.2 Overall Summary of the Study …………………………………………………… 105
5.3 Conclusion ……………………………………………………………………….. 108
5.4 Recommendations ………………………………………………………………... 110
5.5 Further Research …………………………………………………………………. 110
5.6 Chapter Summary ………………………………………………………………… 111

LIST OF REFERENCES ………………………………………………………………. 112

Annexure 1 ……………………………………………………………………………….. 118

viii
 LIST OF TABLES

Page No.

Table 1.1 Meterial Cost Rise ……………………………………………………….. 4

Table 3.1 Nature of the Selected sample …………………………………………… 72
Table 3.2 Distribution of Task Group Personal ……………………………………. 73
Table 3.3 Selection of Sample …………………………………………………..…. 74
Table 3.4 Operationalization and Variable Association …………………………… 76
Table 3.5 Specimen Calculation …………………………………………………… 77
Table 3.6 Criteria of Interpretation ………………………………………………… 78
Table 4.1 Views on the impact of communication competency of construction
professionals towards organizational success …………………………… 79
Table 4.2 Views on the impact of HR skills and competencies
of construction professionals towards organizational success …………… 80
Table 4.3 Views on the impact of Analytical thinking competencies
of construction professionals towards organizational success……………. 81
Table 4.4 Views on the impact of Leadership competencies
of construction professionals towards organizational success……………. 81
Table 4.5 Views on the impact of Knowledge Sharing competencies of
construction professionals towards organizational success ……….……… 82
Table 4.6 Views on the impact of creating mutual understanding competencies
of construction professionals towards organizational success……………. 83
Table 4.7 Views on the impact of Team building competencies of
construction professionals towards organizational success……………….. 84
Table 4.8 Views on the impact of Clear goal setting competencies of
construction professionals towards organizational success……………….. 85
Table 4.9 Views on the impact of Project management competencies of
construction professionals towards organizational success………………. 86
Table 4.10 Views on the impact of Decision-making competencies of
construction professionals towards organizational success……………….. 86
Table 4.11 Views on the impact of supervising competencies of

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 construction professionals towards organizational success……………….. 87
Page No.

Table 4.12 Views on the impact of technical analysis competencies of

construction professionals towards organizational success…………….… 88
Table 4.13 Views on the impact of Conflict resolution competencies
of construction professionals towards organizational success………….… 89
Table 4.14 Views on the impact of Problem-solving competencies
of construction professionals towards organizational success……………. 90
Table 4.15 Views on the impact of Negotiation competencies
of construction professionals towards organizational success………….… 91
Table 4.16 Views on the impact of Prediction competencies
of construction professionals towards organizational success……………. 91
Table 4.17 Views on the impact of Prevention competencies
of construction professionals towards organizational success……………. 92
Table 4.18 Views on the impact of planning competencies
of construction professionals towards organizational success……………. 93
Table 4.19 Views on the impact of Participation competencies
of construction professionals towards organizational success……………. 93
Table 4.20 Views on the impact of Performance competencies
of construction professionals towards organizational success……………. 94
Table 4. 21 Part 1 - Core Competencies ………………………………………………. 96
Table 4. 22 Part 2 - Analysis of Cross Functional Competencies …………………….. 98
Table 4. 23 Part 3 - Analysis of Functional Competencies …………………………… 100
Table 4. 24 Part 4 - Proactive Competencies ………………………………………… 102

x
 LIST OF FIGURES

Page No.

Figure 2.1 The Roots of performance and competitive advantage …………………. 25

Figure 2.2 Illustration of the Core Competencies …………………………………… 38
Figure 2.3 Core Competence Decision ……………………………………………… 65
Figure 3.1 Conceptual framework …………………………………………………… 75

xi
 LIST OF ABBREVIATION

AAGR Average Annual Growth Rate

CBSL Central Bank of Sri Lanka
CCI Chamber of Construction Industry
CEO Chief Executive Officer
CFO Chief Financial Officer
CIDA Construction Industry Development Authority
EADS European, Aerospace Defense and Space divisionsd
EG Expert Group
EQF European Qualifications Framework
EQVET European Qualifications for Vocational Education and Training
FDI Foreign Direct Investment
GDP Gross Domestic Product
GPEC Grande Precedence Education Competences
HR Human Resources
HRM Human Resources Management
IC Individual Contributor
ICT Information Communication Technology
ILO International Labour Organization
KPI Key Performance Indicators
KSABs Knowledge, Skills, Abilities, and Behaviors
L&D Learning and Development
MBA Master of Business Administration
OECD Organization for Economic Corporation and Development
R&D Research and Development
RCC Recognition of Current Competency
RPL Recognition of Prior Learning
SD Standard Deviation
SMART Specific, Measurable, Achievable, Relevant, and Timed goals
SME Small and Medium Enterprises
SOEs Stata Owned Enterprises
TFP Total Factor Productivity

xii
TVEC Technical and Vocational Education Commission
TWG Technical Working Group
UK United Kingdom
UNCTAD United Nations Conference on Trade and Development
USA United States of America
WCED World Commission on Environment and Development

xiii
 CHAPTER 1 - INTRODUCTION

1. Introduction
This chapter gives a brief introduction to the overall research, covering background of the
study, the problem statement, presenting research questions, research objectives, hypotheses,
significance of the study and limitations of the research. Finally, the chapter gives the thesis
structure presenting research conclusion in summary form and chapter summary.

1.1 Background of the Research

The global construction market is a massive market and has been valued at $14393.6 billion
by the mid 2022, accounting for 14.2% of the global GDP (https://finance.yahoo.com › news
› global-construction, 2023) while that of Sri Lanka was $12.8 billion in the same period.
However, COVID-19 pandemic and its aftermaths and subsequentrly pronounced status of
bankruptcy have severely affected Sri Lanka’s economy, particularly construction industry by
reducing its GDP ratio from 8-10% in 2019 to 6.2% by 2022 and is now along with ensuing
economic crises has projected to achieve an AAGR of the industry little more than 5% during
2024-2027. Besides, when construction industry is taken, irrespective of countrys’ degree of
development, in almost all countries this industry has become retarded and an expensive
industry mainly due to shortages of human resources and building materials.
This common phnomenan is seen everywhere in almost all the countries as explained by Dfee
(2000) as cited in Andrew et al., (2004). In Britain, labor shortages have often been much
higher than in other countries (Healy et al., 2011). Despite a number of education reforms,
like changes to the school curricula, South Africa still faces considerable skills shortages
(Rasool and Botha, 2011). On average, two third of projects in Australia reported to be
delaying mainly because of the lack of workers (Deegan, 2008 as cited in Healy et al., 2011).
In India, the construction industry lacks sufficient plumbers and construction machine
operators, resulting in a slowing of construction activity and increasing the overall cost of
projects, posing a major challenge to country’s infrastructure development plans (Heikkila,
2012). Heikkila cites statement of then Minister, Manmohan Singh - ‘As our economy booms
and as our industry grows, I hear a pressing complaint about an imminent shortage of skilled
employees. As a country endowed with huge human resources, we cannot let this be a
constraint’ (Government of India, 2011).

1
In Sri Lanka, particularly under the 1977 economic reforms and later with post-war-
expansion more pressure emerged to increase investments in building industry along with
needing more manpower on account of heavy investments on large scale capital projects such
as massive irrigation projects, high-rise buildings, expansion of airports, ports, roads,
highways, land reclamation, water and sanitation sectors (Silva et al., 2016a). As such, the
construction subsector has recorded an impressive growth unill recent past up to 2019
creating great opportunities but facing countless challenges. Yet, in the peak time of the
expansion of the industry exceeding 1.5 million persons of all lvels were employed in this
industry aggravating shortage of skilled and professional workforce as revealed by the
Survey of Training Need Assessment and Skills Gap Analysis (TVEC of Sri Lanka, 2016).
An expert in the Chamber of Construction Industry (CCI) of Sri Lanka, mentions that “due to
the prevailing acute labor shortage, building contractors dig into labor pools of other
contractors by offering more pay to workers, luring them to switch construction sites (Surath
Wickramasinghe, president). In this background, permissions are sought for obtaining
Chinese and Indian workers for sustaining the industry (The Island, May 25th 2016).
Although this issue has been mitigated by developed countries by substitituting machinaries
to labour and by taking other positive short-run and long-run measures, countries like Sri
Lanka has not shown any progresss to handel this issue in a short time. This lack of human
resources is being found in almost all the categories of labouerers such as unskilled workers
(laborers), craftsmen and construction machine operators and experienced construction
professionals (Silva, 2018).
Also these attributes have caused delays in project completion times whether they are large
size public or private sector big projects or small size individual projects. Apart from that
unexpected scarcities of materials and natural disasters too cause delays in construction work.
The scarcity of labour has led to increase labour charges too among most of the labour
categories of persons. Thus, in Sri Lanka, human capital shortage has become not only a
serious management issue but also a national issue which is being frequently discussed at
various industry forums also. Theses evidences show that there is a lack of understanding and
analysis of the phenomenan of skills shortages or skills mismatch when labour with required
skills are not available in the labour market. This problem is not much serious in the case of
obtaining unskilled labour for which since machinaries can be substituted. But skills shortage
is severe for more professional persons such as engineers, architectures, plaaners, lumbers,
electricians so on.

2
In the Sri lankan labour market, skills mismatch has been a protracted character. This feature
was first highlighted by Dudly Sears in 1971 when he was studying reasons for having a high
level of unemployment, at that time, in Sri Lanka as the International Labour Organization
(ILO) teame leader. He found that there was a big unemployment, particularly among the
educated youths. In this respect, Sear’s explanation was that education system at that time did
not provide the required skills for yoths to equipped them with skills employers were looking
for. Since then many critics have been still highlighting skills mismatch as the main reason
for appearing a high level of unemployment in many employment areas, particularly
including building industry.
Thus, skill shortages (gaps) occur when there are differences between expected level of skills
by employers and actual skills possessed by job aspirents. These gaps are frequently seen
among newly trained and passed out persons and graduates from training institutions /
universities. Then, employers attribute this feature to various shoertcomings of the courses
these institutions are offering.
Further, it has been accepted that the scarcity of worker problem can be aggravated on
account of having a lesser productivity among employees mainly on account of a number of
reasons such as following time based payment system, employees’ lethargic work culture for
work and failure of management levels to get more work from emolyees ensuring their job
satisfaction.
Now, in addition to scarcity of human resources, the industry is facing a multitude of
problems such as rising material costs, payment delays, difficulty in importing goods,
suspended government projects, increased interest rates and natural disasters. Also, this is an
industry built around small profit margins (approx. 5-8%), such issues can completely
decimate the cash flow of construction companies.
Also, the sharp increase in the cost of construction materials due to the ever-increasing dollar
rate and inflation rates has made current projects impossible to run. Building material
suppliers are too exploiting this situation by increasing their margins. Most SOEs are not
following the 20% price escalation that was allowed by the cabinet as well. However, as a
result with these expansion higher demand for building materials and labour has led to
increase prices of building materials by a number of folds as shown by the data in the
following table. The table below shows how rapid the increase in construction materials has
been in last two years of 2020 and 2021.

3
Table - 1.1
Meterial Cost Rise

December December
Material 19/04/22 % increase
2020 Rs. 2021 Rs.

Cement 50
850 1275 2175 155.9
kg. bag

Rebart per
165000 250000 595000 260.6
M. ton

Structrual
steel per 170000 330000 750000 341.2
M.ton

0.047mm Zn-
AI Roof sheet 1522 2802 4500 195.7
per mm

Asbestos
Roof sheet 846.55 1127.50 1711.65 102.2
per m

Source: CCI, MVIVO, Home Builders, 26/02/23

Further, the current construction industry is with the practice of wide use of natural resources,
energy, land, soils, water resources polluting environment and not taking sufficient measures
to mitigate them. As a result, now many are talking of introducing a sustainable construction
industry worldwide aiming to minimize natural resource consumption in order to protect
ecological system for future generations as well. Thus, it has become a hot topic to be
discussed in recent international conference on Real Estate Management and Valuation
against the traditional construction practices of extensively use of natural resources and

4
waste. In this setting and against this phenomenan, sustainable construction practices are
recommended and focused to minimization resource depletion, environment degradation
(Hussin et al., 2013). Considering thes constraints, the researcher of this study goes a further
step ahead by introducing another concept new to the Sri lankan industrial sector comprising
construction industry too. That is increasing total factor productivity rather than increasing
partial factor productivity or just the worker productivity. This concept was introduced by
Krugman (1994) and promoted by later economists who tried to define what is meant by
Total Factor Productivity (TFP) and ways and means of increasing TFP for entire economies
or sectors or industries (Oguchi and Hoshino, 2001).
Another aspect related to the productivity is the quality. Productivity can be increased if
output is just increased without paying the due attention to the quality of not only input, but
also production process and output. Therefore, attention should be paid to ensure the quality
at almost all the steps of production process too. The weakness of not taking into account the
quality of construction industry have been recently reported not only in developing countries
like Sri Lanka, Bungladesh etc. but also in developed countries such as Australiya and new
Zeland.
The development of the Sri Lankan construction industry has closely followed the economic
changes during the past decades like many other countries. The economic conditions were the
main factors, which influenced demand trends in the industry. These changes in demand side
resulted in many changes in the supply side of the industry also, and the production
characteristics improved gradually over the period. In this background, the government’s
role too has changed from being an investor to acting as a facilitator. Along with these
changes, particularly after introducing 1977 economic reforms the private sector became the
engine of the grwth (Patabendige, 2006) and thus, in the construction industry too, the
private-sector led construction demand is predicted to predominate in the future with
inceeasing involvement of expatriate contractors over that of the traditional contractors.
Meanwhile, forecasted economic growth, increasing urbanization trends and getting more and
more foreign loans create a healthy demand for construction.
The construction firms are under pressure to change their business strategy to meet the future
demand conditions, particularly to accommodate technological changes and the changing
nature of the project delivery process. The analysis of the supply side characteristics of the
Sri Lankan construction industry reveals that the nature of underdeveloped construction
industry framework and the new project culture will pose many constraints that originate
locally due to financial, technological and management deficiencies of the local firms. Hence,
5
development measures are needed to meet the challenges to benefit from new development in
the construction industry. Institutional reforms and capacity building and the legislative
measures for regulating construction industry activities and motivation of local contracting
community to effectively participate in the implementation of large scale donor-funded and
private sector funded projects are priority areas of concern. The Sri Lankan government
shows a trend in the process of planning to introduce more competitive measures. In this
regard, particularly attention has paid to manpower training and skills development. This is
particularly important for providing the industry with more craftsmen, machine and tool
operators, competitive and adequate workforce to meet the new demand in the industry.
Also, facing to ease the scarcity of physical resources has become a big constraint and it
leads to find and use appropriate construction materials rather than making brick-built
traditional constructions which are more expensive and finding difficulties of obtaining the
required materials. The local building material sector has not geared itself to substite the
cheap and low cost synthetic materials as used by developed country constrcters. The
indigenous supply material industries such as bricks, hard wood, tiles and sand are
experiencing gradual decline in production and availability. Also, designers will continue to
select and specify items with high import content at the expense of spending scarce foreign
reserves. Thus, additional policy initiatives are required to assist the decline in availability of
natural and traditional materials and develop alternative local inputs. In this regard, allocating
more funds for Research and Development (R & D) is indispensable. But countriy’s R & D
allocation is very limited and even less than the prescribed provision for developing countries
like Sri Lanka which is 1% of GDP allocation. But Sri Lanka’s actual share is 1/10 th of that
priscribed share (Alweera, 2023).
The government’s intervention is also necessary to regulate the industry in terms of its
performance, standards and the quality of the services it provides. There are delays in
payments also. It has been estimated that the total overdue payments in the road, buildings
and waters supply sector are more than Rs 100 billion. Recently, with facing economic crisis
all state-sponsored government projects have now been suspended by a gazette notification as
an attempt to reduce its fiscal burden. This holds billions of rupees in payments from
government projects. Thus, the dollar crisis has made it near impossible to obtain required
goods and materials due to the lack of dollars in the local banking sector. Some companies
who had to wait 120 days after opening L/Cs and had to face unbearable losses when the
dollar was floated in an uncontrolled manner. Any hopes of obtaining new projects have also
been squashed due to high-interest rates that are charged by banks. The Sri Lanka Chamber
6
of Construction Industry (CCI) estimates that more than 100,000 will lose their jobs due to
the projects that are halted. In this environment, it is necessary the revitalization of this
important industry by increasing building and construction infrastructure, human resources,
and physical resources in more sustainable ways with lesser costs. As such, this study expects
to evaluate managerial competencies of construction industry professionals for stimulating
tbis industry.

1.2 Problem Statement

Most of the construction projects in Sri Lanka are not up to the expectations in terms of
completion time, expected quality, durability and cost effects. Hence, the researcher expects
to find out the reasons for these impacts selecting the research topic, ‘Influence of Managerial
Competencies of Construction Professionals for the Success in Construction Industry in Sri
Lanka’.
Construction industry refers to the industrial branch of manufacturing and trade related to
building, repairing, renovating, and maintaining infrastructures.
(https://www.sciencedirect.com). Large-scale building constructions, whether in the public
or the private sectors are very complex tasks performed by construction professionals,
contractors, design engineers, construction engineers, or project architects who often oversee
and supervise construction employees at different levels continuouely until projects become
completed and even after the completion of the project for a certain trime period. As such,
construction is a process that entails the construction or assembly of infrastructure in the
fields of architecture and civil engineering. If delays are experienced due to some reasons,
they take years and years to complete such projects bearing huge amount of extra funds, and
such instances normally can be seen in public sector construction projects particularly in
developing countries like Sri lanka.
The construction industry highly contributes to national development through getting both
the private sector and the public sector involved in construction projects. The public sector
constructins are considered as larg projects than those of the private sector in Sri lanka, and
they are more connected with developing economic infrastructure in the economy. But
situation in developed countries is different where big private firms undertake construction of
large projects using sub-contractors. This practice now has been adopted by Sri Lanka also.
However, irrespective of the construction firms nature whether they are the public sector or

7
the private sector organizations they should have some common areas of strengths such as
financial management strengths, human capital management strengths, machinery and
company-owned equipment strengths to be successful in constructions undertaken by them.
Out of these strengths this research is particularly trying to examine management issues
which may have impacted on the improvement of the construction industry. Accordingly, the
research would examine the competencies of corporate level leaders (construction
professionals) for successfully carrying out their construction projects. Consequantly,
construction managers or project managers should select onstruction experts who are having
the fundamental construction competencies such as core competence, cross functional
competencies, and functional or technical competence to lead their employees for achieving
an effective construction industry. In addition to these competencies, the researcher
emphasizes that managers must have the ability of taking proactive actions to be successful
their management functions. This involves being proactive and anticipating events before
they occur, as well as being prepared and ready for the incident if it were to occur
(https://www.franklincovey.com/resources/). Thus, proactivity or proactive behavior refers to
self-initiated behavior that endeavors to solve a problem before it has occurred. Proactive
behavior involves acting in advance of a future situation, rather than reacting. Most of the
professionals have not this attribute to perform his duties, hence, it adversely affect to the
project to be completed as initially lanned and organizational success.
Accordingly, every professional connected to the construction projects must have
management competencies for helping subodinates and resolving issues using their core
competencies, cross functional, and functional or technical competencies. Lack of these
comeptencies is very often refelected by showing such shortcomings as financial
mismanagement; disappearance of construction-related materials; Failure to finish projects
on time; weak material requirement planning; increasing maintenance cost; low labour
productivity; low total factor productivity; frequent employee-employer conflicts; scarcity of
skilled labouer; high employee turnover; insufficient job responsibility; delegation and non-
existent of pro-active behavior among managers. As a result, construction managers have
largely failed to accomplish the project or organization's goals and objectives as expected.
Meanwhile, Sri lanka Building Sciety reports that the country’s building industry has dropped
by 70% due to curtailing government construction projects, stopping of many foreign funded
building projects and reducing the private sector building activites due to the current
economic crises causing 60% of skills workers such as woodworkers, carpenters to lose their
employment and 50% of engineers to leave the country and also making material costs to be
8
skyrocated (Liyana Aracchi, 2024 March). According to the Department of Census and
Statistics, the construction industry employed approximately 9.6% to the GDP and involved
nearly 2.6 million stakeholders approximately by 2020. (Daily News 18/03/24). However,
COVID-19 pandemic and its aftermaths and situation of subsequentrly pronounced
bankruptcy have severely affected Sri Lanka’s economy by reducing construction industry’s
GDP ratio from 8-10% to 6.2% after 2020 and is now along with ensuing economic crisis the
AAGR of the industry has projected to achieve a lesser growth ot the construction industry
around 5% during 2024-2027.
Meanwhile, due to the changes taken place since 1977 economic reforms and subsequent
policy changes the government’s traditional role as the major investor in the construction
industry started changing to a regulator and a facilitator allowing the private sector with
foreign participation to be the major partner in the construction industry. Also, role of the
contracting firms, project delivery processes and project procurement sytems changed to meet
new demand conditions. However, along with this new project culture construction industry
begins to face many constraints such as financial, R & D, technological and management
deficiencies in an environment of increasing scarcity of physical inputs for the construction
industry to reach at least to its prior 2020 growth momentum. In this endevear, the researcher
aims at examining how far strengths of such management competencies as core, cross,
functional and pro-active can change constraints such as scarcity of human resources, low
labour and total factor productivities, currently using practice of wastage and depletion of
natural resources and increasing cost of building materials that construction industry faces to
acquire its earlier growth momentum.

1.3 Research Questions

Research questions are derived based on causality of variables shown in the conceptual
model of the study (see the research model in the page No. 80). The conceptual model
considers core, cross, functional and pro-ative managerial skills of construction professionals
as causes or independent variables of the model and the degree of success in construction
industry in terms of its profitability, sustainability and expansion as the effects or dependent
variables. Accordingly, the study’s research topic is developed as ‘Influence of Managerial
Competencies of Construction Professionals for the Success in Construction Industry in Sri
Lanka’. Thus, by finding answers for the questions which are formulated based on above
mentioned 4 kinds of competencies and as shown below the researcher can determine to what

9
extent these causes can affect industry’s success in terms of industry profitability,
sustainability and expansion.

1. To what extent is there an impact of communication ability of construction

professionals on success of construction industry?
2. How far is it possible to agree rhat increasing skills of mutual understanding of
construction professionals have increased the construction industry’s sucess?
3. To what degree team building ability of construction professionals has a favourable
impact on increasing success of construction industry?
4. Is there an influence of leadership ability of construction professionals on success of
construction industry?
5. Does negotiation ability of construction professionals increase success of
construction projects?
6. To what extent has the prediction ability of construction professionals impacted on the
success of a construction project ?

1.4 Objectives of the Study

Main Objective
to find out influence of managerial competencies of construction professionals for the success
in construction industry in Sri Lanka.
Sub Objectives

1. to what extent core competencies have impacted manabgerial skills.

2. to what extent cross competencies have influenced managerial skills.
3. to what degree functional competencies have increased managerial abilities.
4. to what extent mangers are pro-active in making decisions.

1.5 Hypotheses

The following hypotheses are taken into consideration to analyze the research objectives.
H11; The hegiher the core competencies among construction professionals higher is the
expected level of success of construction projects.

10
H12; Better the cross-functional competencies among construction professionals larger is the
level of success of construction projects.
H13; Better the functional competencies of construction managers greater is the success of the
Construction projects.
H14; Better the pro-active competencies of construction among managers quicker is the
completion of building projects.

1.6 Significance of the Research

Construction industry is a leading sector of the Sri lankan economy as shown by its current
value of $12.8 billion and its GDP ratio of 6%, which, however, has now dropped from 8-
10% after 2020. Currently, along with ensuing economic crises, the targeted GDP ratio
expected to be achieved during the period from 2024 to 2027 as 5% (CBSL). In this setting,
current challenge is that how this industry can be revitalized becoming reach at least peak
level of growth experienced before starting Covid 19 pandemic and subsequently faced
economic bankruptcy after 2020. In economic boom period, about 2 million persons were
employed in different jobs in construction industry. However, when facing current recession
and the crisis a large number of workers in this industry became unemployed showing the
fact that this sector is a major segment to absorb a higher percentage of labour if it remains as
a flourishing industry. However, in booming periods also, construction industry finds worker
scarcities in both skilled and unskilled labouerers and this is common to other industries and
sectors of the economy as well. An expert in the CCI of Sri Lanka, mentions that “due to the
prevailing acute labor shortage, building contractors dig into labor pools of other contractors
by offering more pay to workers, luring them to switch construction sites (Surath
Wickramasinghe, president). In this background, permissions are sought for obtaining
Chinese and Indian workers for sustaining the industry (The Island, May 25th 2016).
Although this issue has been mitigated by developed and some developing countries to
certain extent by taking some short-run and long-run measures. Sri Lanka, in this regard, has
not yet shown sufficient progress. Here, lack of human resources is being found in almost all
the categories of labouerers such as unskilled workers (laborers), craftsmen and construction
machine operators and experienced construction professionals (Silva, 2018). Thus, Skills
mismatches can be seen not only in Sri Lankan construction industry but also in other

11
industrial and economic activity areas. Also, skills mismatch among job aspirants in the Sri
lankan labour market has been a lengthen problem.
As a short run measure, machines can substitute to more and more unskilled labourers while
lesser to emount of skilled employees due to skilled labour-capital complmentary hypothesis
(1998). On the other hand, skilled labouer supply can be increased by taking some long-run
measures such as by starting more job oriented courses and expanding more vocational
courses by educational institutes, mainly through vocational training institutes. Also,
introducing fronteer technology developed through Industrial Revolution 3.0 (Digital
Revolution / Age of ICT from 1971) and Industrial Revolution 4.0 (Frontier Technology,
from the 2010s) which include techniques such as cheaper microelectronics, internet, control
instruments, new materials, AI, the Internet of things, robots, three-dimensional printing,
block chain, smart production etc. (UNCTAD, 2022), particularly construction industry
professionals and labour force skills can be further developed as done by other countries.
However, compared to most of the other developing country Sri lanka has yet adopted
Industrial Revolution 1.0 (1771 - 1875) and Industrial Revolution 2.0 (from 1908)
technologies, mainly in the construction industry (Alweera, 2024). As a result, rigour of skills
mismatch situations found in the labour market can be still seen. Thus, skill shortages (gaps)
occur when there are differences between expected level of skills by employers and actual
skills possessed by job aspirents (Sears, 1971). These gaps are frequently seen among newly
trained and passed out persons and graduates from training institutions / universities. Thus,
employers attribute this feature to various shoertcomings of the courses they are offered.
Alternatively by increasing labour productivity and increasing total factor productivity and
using managerial competencies such as core, cross and functional competencies labour
scarcity problem can be mitigated. Moreover, construction industry can introduce more non-
natural materials through R & D expansion and thereby minimizing degradation of natural
environment and resources. Thus, in an environment of depleting natural resources,
researchers such as Krugman (1994) and many others recommend to improve total factor
productivity rather than attempting to increase factor supply distinctly. The following
production function and its variables help to understand the concept of total factor
productivity.
Q = A f (E, C, L, La)
where Q = output (value added), E = enterprise, C = capital, L = land and La = labour, A =
level of efficiency or total factor productivity or technological change, and f = functional
relationship.
12
As such,
Total production (Q) = Efficiency (A) multiplied by Volume of combined inputs
(E, C, L, La).
Total production = Total factor productivity × Volume of combined inputs
Accordingly, total factor productivity can be defined as follows:
Efficiency or total factor productivity = Total production - Volume of combined factors’
contribution to output or as follows:
A = Q - (E, C, L, La) (Oguchi, 2001)
The above relationship shows that efficiency or total factor productivity or the technological
change is the difference between output and contribution of the volume of combined factors
(inputs) to the output. Then, it is necessary to examine the causes that affect increasing the
total factor productivity or efficiency. According to researchers, the acceleration of TFP
growth is attributed to a number of strategies such as openness of the economy, infrastructure
investment, attracting Foreign Direct Investment (FDI) that was expected to work as a vehicle
of technology transfer (Oguchi and Hoshino, 2001), changes in industrial or agricultural
structure, innovation and efficient utilization of technology through intensification of
Research & Development (R & D), adoption of the best technology and managerial and
organizational practices, changing worker attitudes of employees and management for
achieving organizational effectiveness, enhancing the efficiency of labour and skills
development through educational and training (Barro, 1991, and Mankiw, et al., 1992) among
the employees following human resources development strategies and creating positive
attitudes among workers through ensuring job satisfaction. Acquiring capital efficiency
through modernization of plant and equipment, increasing competitiveness and organizational
capabilities, and encouraging firms to link wages to the worker’s productivity are also some
of the important steps that can be taken to improve TFP growth. All these TFP oriented
strategies can be included in core, cross, functional and pro-ative managerial competencies
and following them Construction industry can be revitalized to go even passing its earlier
peak levels.

1.7 Limitation of the Study

This study indicates to examine influence of managerial competencies of construction
professionals for the success in construction industry in Sri Lanka. But research mainly
considers the public sector construction activities. However, it would not be a big issue since

13
most of the private sector constructions, such as hotels, hospital buildings, various factory
buildings are also large building projects employing considerable number of employees. As a
result, managerial issues in bothe areas are more or less the same. Nonetheless, attention is
not much paid to small constructions such as individual houses. In those micro-level
individual projects too, such problems as scarcity of workers, high and increasing cost of
materials can be equally seen. Concequantly, those limitations do not much change the
conclusions arrived at the end of the study.
Another limitation of the study is the small size of the sampel which is 10% of the fifty (50)
large construction organizations professional in Sri Lanka. However, limitations emerged
from this inadequacy of the sample size too could be nuteralized by obtaining more
qualitative information, in addition to the quantitative data obtained since somewhat mixed
research methodology was used.
Obtaining information mainly from top level construction professionals, not paying much
attention to that of grassroot level employees is also another limitation of this study.
Further, this study’s main focus is on traditional construction practices such as cost
minimization, performance and quality objectives. But, against this phenomenan, attention
paid to maintain sustainable construction practices, minimization of resource depletion and
environment degradation is not sufficiently evaluated.
Finally, the study considers only managerial issues leaving other exogeneous variables such
as unexpected natural disasters and political and economic crises and by this also the study’s
scope has become limited.

1.8 Thesis Structure

The thesis consists of five chapters. The chapter - 1 gives a brief introduction to the overall
study,
Chapter - 2 reviews the available literature with regard to the competencies of construction
professionals in relation to the success of the construction industry,
Chapter - 3 provides an overview of the research design utilized to execute the research,
Chapter - 4 presents data and data ana;ysis and,
Chapter - 5 gives the overall summary of the study along with conclusions, recommendations
and further studies to be carried out.

1.9 Chapter Summary

14
This chapter, first, gave a brief introduction to the overall research, covering background of
the study, the problem statement, presenting research questions, research objectives,
hypotheses, significance of the study and limitations of the research. Finally, the chapter
ended giving the thesis structure and chapter summary.

CHAPTER 2 - LITERATURE REVIEW

2.1 Introduction
This chapter reviews the literature related to management competencies of construction
professionals since successful completion of construction projects mainly depends on their
management skills. Accordingly, first attention was paid to define the concept of
management competencies and then evolution of the subject of competencies is presented,
tracing its theoretical aspects and work place requirements. Next, literature review identifies
different competencies and rheir sub-groups and relationships with organizations’
management success for forming a conceptual framework for the study.

2.2 Definition of Competencies

Competence or competency is the ability to do something successfully or efficiently. Also,
competence is the scope of a person or group’s knowledge or skill or abity ( The New Oxford
Dictionary of English, 1998). Further, competencies are the knowledge, skills, abilities, and
behaviors (KSABs) that can be measured or observed and are essential for successful job
performance. Employers can plan how they will organize and grow their personnel by
selecting the appropriate competencies. Identify the employment categories that best suit their
company's needs. Cardy and Selvrajen (2011) classify competencies into two broad
categories: personal and corporate. Personal competencies are possessed by individuals and
include characteristics such as knowledge, skills, abilities, experience and personality.
Corporate competencies belong to the organization and are embedded processes and
structures that tend to reside within the organization, even when individuals leave. These two
categaries not entirely independent. The collection of personal competencies can form a way
of doing things or forming a culture that becomes embedded within the organization. In

15
addition, corporate characteristics can determine the type of personal competencies that will
best work or fit to the organization. A firm can have a lot of competencies but only a few of
them are core competencies: that is a value chain activity in which the firm is regarded as a
better performer than any of its competitors. Moreover, competencies - being components of
a higher level-result from a combination of the various resources. Their formation and quality
depend on two factors. The first factor is the specific capabilities of the firm in integrating
resources. These capabilities are developed and improved in a collective learning process. On
the other hand, the basis for quality of a competence is the resources assortment. This form a
potential for competencies which should be exploited to the maximum extent as depictred
below (Hollensen, 2011).

2.2.1 History of Competencies

The word "competence" initially surfaced as a notion for performance motivation (White,
1959). This idea was further developed by Lundberg (1970) as a "planning an executive
development program". The desire to influence the future, transform the unknown into the
known, and make an effort to lessen the uncertainty that we are forced to deal with on a daily
basis are all aspects of the natural human condition. For example, to assist them deal with the
uncertainties of a two-week period in the fall when a deluge of the insects may wipe out their
whole crop, the Egyptians, for instance, established a deity of locusts. The same need to
lessen uncertainty has motivated researchers to investigate the origins and determinants of
behavior in the workplace. How do we determine a person's ability to succeed on the job
before hiring them?
Over the past 250 years or so, Starting from Scottish economist, Adam Smith, who is
considered as the father of Economics and management specialists such as F. W. Taylor,
considered as the father of Management and his followers considered as pioneers of the
school of scientific management in USA have been trying to figure out what factors influence
performance suggesting some methods fallen to the subject identified as Scientific
Management. Especially, Scientific Management thinkers gave priority to scientific methods
developed by managers and economic factors to increase workers competencies and
productivity. Later, starting from Horthrone experimenters by Elton Mayo from early 1930s
introduced the importance of human factor also for achieving the same purpos. Meanwhile
industrial in 1771 and 1908 and digital/Informatio Communication Technologies (ICT)

16
technologies in 1971 and 2010 onwards significantly contributed to increase individuals and
corporations competencies in almost all the areas (Industry 4.0-UNCTAD, 2022) including
construction industry.
Technical expertise, years of experience, education, certification, and personality traits are
other variables that have been used to try to predict effectiveness in the workplace. In light of
this, research on competences first started in the early 1970s. In 1973, David McClelland
presented a paper arguing that behavioral traits and characteristics are considerably more
reliable predictors of success in the workplace than aptitude tests. Superior performers
engaged in activities that were mostly unrelated to aptitude, skill competence, and experience
level, such as using sound judgment, identifying issues and taking action to solve them, and
setting difficult goals.
Many job studies have been conducted and they propose answer to the following fundamental
questions: What sets excellent workers apart from mediocre performers? These differentiators
may be utilized to help hire better people, evaluate and appraise employees, and assist them
in improving their performance if we are aware of them and can quantify them.
Competencies are the name given to these distinctive qualities. The most helpful explanation
found for the word is that competencies are persistent features or attributes that influence.
The notion of a competency is not entirely clear in the corporate world today. The distinction
between competences and skills is the most confusing. In general, the term "skills" refers to
the knowledge and technical expertise applicable to a particular field or career. Prospecting,
overcoming objections, and closing are all aspects of sales expertise. Drawing and measuring
are both part of drafting. Creating forecasts and writing are managerial competencies. Some
businesses equate competency with skills. Managing a skills database is a time-consuming
and challenging task because every position in a business requires a wide range of talents.
The broader issue is that the emphasis on abilities diverts attention away from the application
and evaluation of competences, which have a considerably more significant role.
For instance, some chief financial officers have a higher understanding of and familiarity
with the financial structure of businesses than do other chief financial officers. Understanding
a balance sheet requires what would refer to as skills and knowledge. Most of researchers
done a lot of searches for Chief Financial Officers (CFOs), and we know that the best CFOs
don't always have a better grasp of balance sheets or other financial concepts than the typical
CFO. More essential, they have the capacity to collaborate with Chief Executive Officers
(CEOs), comprehend company difficulties, and use their financial expertise to have an impact
and influence on the organization. By brainstorming more efficient methods of doing things
17
with the production staff, they are able to contribute to cost reduction in manufacturing
processes. In other words, great performers may be distinguished by their competences rather
than their knowledge or abilities.
Senior managers and top experts have spent hundreds of hours working to compile a list of
abilities critical to various roles in some of the major accountancy and manufacturing
organizations. Although that list may have some value for training and development, this
researcher has never encountered a circumstance in which the advantages of a thorough skill
list came close to justifying the efforts used to compile it. Focusing on knowledge and skills
misses the mark, which is more vital. Having the highest level of expertise. Skills are not
unimportant; far from it. A job requires a minimum degree of proficiency. For example, if
require an electrical engineering expert, if employing an electrical engineer for a position at a
nuclear power plant. But assuming that technical proficiency ensures good performance is a
costly error. Because they are strong in the critical competencies for a role, people with basic
skills who are strong in those competencies will get the information and abilities they need to
excel in that position. If someone with high initiative does not already know the solution to
an issue, they will utilize it to discover it. If those with high levels of service orientation are
unable to solve a customer's issue, they will locate someone who can. Competencies are not
miraculous in any way. The competence paradigm is but one method for decomposing
behavior into its constituent elements. Like any paradigm, it is helpful in as much as it
explains reality as we currently know it and enables us to shape and anticipate the reality of
the future. In as much as they can be used to explain why some individuals do better than
others, in as much as they can be used to assist people perform better, and in so far as they
can be used to help people make decisions that will help them achieve their goals,
competencies are a useful idea. When applied correctly, the competence paradigm is a
panacea for managers looking to strengthen key aspects of their organization.

2.3 Theoretical Background

Organizational success comprises the actual output or results of an organization as measured
against its intended outputs (or goals and objectives). Specialists in many fields are
concerned with organizational success including strategic planners, operations, finance, legal,
and organizational development. In recent years, many organizations have attempted to
manage organizational success using the balanced scorecard methodology where

18
performance is tracked and measured in multiple dimensions, and it directly relates with
organizational success.

2.3.1 Evaluation of Competencies

Employers and present workers can be evaluated and led to concentrate on their strengths and
fix their deficiencies through competency-based evaluations. Performance review is a good
method to assess how workers behave inside a company and provide them with the direction
they require to enhance their performance. In order to be sure that the services provided by
experts are efficient and secure, it is crucial to assess their level of expertise. The social
context in which these people operate as well as evaluation technologies must be taken into
consideration for professional competency evaluation to be reliable. 360-degree assessment:
used to assess the efficiency and competencies of specialist and managerial staff. The
determination of strengths and weaknesses is based on self-assessment and an external
evaluation. The suppliers of feedback can be co-operators, superiors, clients, and suppliers.
However, any other attempt for competence assessment can also utilize the same approaches
or seek alternative suitable ways to analyze behaviors. Both assessment and development
centers employ a variety of simulation techniques to test competencies. A brief examination
of some of the most popular approaches and assessment of best practices in businesses
throughout the world would be fascinating.
Observing the applicant at work is the first and most straightforward way. Because of the
natural working atmosphere, candidates are significantly more at ease and demonstrate their
job-related abilities without the customary evaluation anxieties.
This makes the job of the observers easy as well as they get concrete and relevant examples
of behaviors to be assessed simultaneously, as they can see them in action. Structured
Interviews are another popular method which are open ended questions asked to the
candidate which help explore a particular job related competency better. It happens by asking
very specific questions regarding a past performance, cited as example for a competency by
the candidate and the observer tries to establish the competency by asking questions about it.
A little script would help in understanding better. The list of questions can be long but the
observer has to essentially bring out the fact that if a competency or behavior is displayed,
there is a well-defined intent behind it as well. The next assessment methodology worth
exploring is simulation exercises. As these exercises represent situations from the work life of
the candidate, they can easily relate to it and therefore job related relevant behaviors are

19
exhibited. Some of the important tools used under simulation exercises are: Role Play- Using
role play in simulation exercises reveal a great deal of information regarding the behaviors.
The role play may have a little situation described which is given to the participant and
similar information is provided to the observer however the observers are provided with
certain guiding questions that aid in eliciting the desired behavior.
In order to clearly identify particular actions, it is also a good idea to videotape the role play
so that it may be reviewed with additional observers later on during washouts. In certain
conservative companies, verbatim written reports are used in place of role plays to provide
the same function of documenting the actions for future reference. In essence, the basket
comprises some emails, memoranda, and other material on which the applicant must decide
after giving each item the proper level of priority. It is a time-limited activity, and if it is
administered as a thorough written exercise, the applicants must also justify their choices.

2.3.2 Workplace Competences

The set of observable, quantifiable knowledge, talents, and personal characteristics that
support improved employee performance and, ultimately, successful organizations. It's
crucial to establish the different competences' components in order to comprehend
competencies.
The top 5 competencies in the work place can be mentioned as follows,

 Critical thinking and problem solving.

 Teamwork and collaboration.
 Professionalism and strong work ethic.
 Oral and written communications skills.
 Leadership.

2.4 Theoretical Framework

With reference to the Competencies and organizational success, a considerable amount of
theories have been developed. First classical management theories can be briefly outlined.
Classical Approach; although we’ve seen how management has been used in organized
efforts since early history, the formal study of management didn’t begin until early in the
twentieth century. These first studies of management, often called the classical approach,
emphasized rationality and making organizations and workers as efficient as possible. Two

20
major theories comprise the classical approach: scientific management and general
administrative theory. The two most important contributors to scientific management theory
were Frederick W. Taylor and the husband-wife team of Frank and Lillian Gilbreth. The two
most important contributors to general administrative theory were Henri Fayol and Max
Weber. Let’s take a look at each of these important figures in management history.
Taylor’s experiences at Midvale led him to define clear guidelines for improving production
efficiency. He argued that these four principles of management would result in prosperity for
both workers and managers. How did these scientific principles really work? Let’s look at an
example.
Probably the best known example of Taylor’s scientific management efforts was the pig iron
experiment. Workers loaded “pigs” of iron (each weighing 92 lbs.) on to rail cars. Their daily
average output was 12.5 tons. However, Taylor believed that by scientifically analyzing the
job to determine the “one best way” to load pig iron, output could be increased to 47 or 48
tons per day. After scientifically applying different combinations of procedures, techniques,
and tools, Taylor succeeded in getting that level of productivity. How? By putting the right
person on the job with the correct tools and equipment, having the worker follow his
instructions exactly, and motivating the worker with an economic incentive of a significantly
higher daily wage, using similar approaches for other jobs, Taylor was able to define the “one
best way” for doing each job. Overall, Taylor achieved consistent productivity improvements
in the range of 200 percent or more. Based on his ground breaking studies of manual work
using scientific principles, Taylor became known as the “father” of scientific management.
His ideas spread in the United States and to other countries and inspired others to study and
develop methods of scientific management. His most prominent followers were Frank and
Lillian Gilbreth.
1. Develop a science for each element of an individual’s work to replace the old rule-of
thumb method.
2. Scientifically select and then train, teach, and develop the worker.
3. Heartily cooperate with the workers so as to ensure that all work is done in accordance
with the principles of the science that has been developed.
4. Divide work and responsibility almost equally between management and workers.
Management does all work for which it is better suited than the workers.
A construction contractor by trade, Frank Gilbreth gave up that career to study scientific
management after hearing Taylor speak at a professional meeting. Frank and his wife Lillian,
psychologists, studied work to eliminate inefficient hand-and body motions. The Gilbreth
21
also experimented with the design and use of the proper tools and equipment for optimizing
work performance. Also, as parents of12 children, the Gilbreths ran their household using
scientific management principles and techniques. In fact, two of their children wrote a book,
Cheaper by the Dozen, which described life with the two masters of efficiency.
Frank is probably best known for his bricklaying experiments. By carefully analyzing the
bricklayer’s job, he reduced the number of motions in laying exterior brick from 18 to about
5, and in laying interior brick from 18 to 2. Using Gilbreth’s techniques, a bricklayer was
more productive and less fatigued at the end of the day.
The Gilbreth invented a device called a micro-chronometer that recorded a worker’s hand-
and-body motions and the amount of time spent doing each motion. Wasted motions missed
by the naked eye could be identified and eliminated. Gilbreths also devised a classification
scheme to label 17 basic hand motions (such as search, grasp, hold), which they called
hterbligs (Gilbreth spelled backward with the transposed). This scheme gave the Gilbreths a
more precise way of analyzing a worker’s exact hand movements.
General administrative theory focused more on what managers do and what constituted good
management practice. Henri Fayol, he first identified five functions that managers perform:
planning, organizing, commanding, coordinating, and controlling.
Fayol wrote during the same time period as Taylor. While Taylor was concerned with first-
line managers and the scientific method, Fayol’s attention was directed at the activities of all
managers. He wrote from his personal experience as the managing director of a large French
coal-mining firm. Fayol described the practice of management as something distinct from
accounting, finance, production, distribution, and other typical business functions. His belief
that management was an activity common to all business endeavors, government, and even
the home led him to develop 14 principles of management—fundamental rules of
management that could be applied to all organizational situations and taught in schools.
Division of Work- Specialization increases output by making employees more efficient.
Authority; Managers must be able to give orders, and authority gives them this right.
Discipline; Employees must obey and respect the rules that govern the organization.
Unity of command; Every employee should receive orders from only one superior.
Unity of direction; The organization should have a single plan of action to guide managers
and workers.
Individual interest and the general interest; The interests of any one employee or group of
employees should not take precedence over the interests of the organization as a whole.
Remuneration; Workers must be paid a fair wage for their services.
22
Centralization: This term refers to the degree to which subordinates are involved indecision
making.
Scalar chain: The line of authority from top management to the lowest ranks is the scalar
chain.
Order; People and materials should be in the right place at the right time.
Equity; Managers should be kind and fair to their subordinates.
Stability of tenure of personnel; Management should provide orderly personnel planning and
ensure that replacements are available to fill vacancies.
Initiative- Employees who are allowed to originate and carry out plans will exert high levels
of effort.
Esprit de corps- Promoting team spirit will build harmony and unity within the organization.
Weber (pronounced VAY-ber) was a German sociologist who studied organizations. Writing
in the early 1900s, he developed a theory of authority structures and relations based on an
ideal type of organization he called a bureaucracy a form of organization characterized by
division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal
relationships. Weber recognized that this “ideal bureaucracy” didn’t exist in reality. Instead
he intended it as a basis for theorizing about how work could be done in large groups. His
theory became the structural design for many of today’s large organizations. Bureaucracy, as
described by Weber, is a lot like scientific management in its ideology emphasized
rationality, predictability, impersonality, technical competence, and authoritarianism.
Although Weber’s ideas were less practical than Taylor’s, the fact that his “ideal type” still
describes many contemporary organizations attests to their importance.

2.4.1 Competency Framework

A competency framework is a model that broadly describes Performance excellence within

an organization. Such a Framework usually includes a number of competencies that are
applied to multiple occupational roles within the organization. Each competency defines, in
generic terms, excellence in working behavior; this definition then establishes the benchmark
against which staff are assessed. A competency framework is a means by which organizations
communicate which behaviors are required, valued, recognized and rewarded with respect to
specific occupational roles. It ensures that staff, in general, have a common understanding of
the organization’s values and expected excellent performance behaviors. Competency
frameworks are used throughout the United Nations system, as well as in many government

23
and private sector organizations. What are the components of the framework? The Agency’s
competency framework includes core values, and core and functional competencies. The
definitions of these components are as follows:
Core values are principles that influence people’s actions and the choices they make. They
are ethical standards that are based on the standards of conduct for the international civil
service and are to be upheld by all staff.
Core competencies provide the foundation of the framework, describing behaviors to be
displayed by all staff members. They are defined by occupational roles for a given job.
Functional competencies are defined by duties and responsibilities assumed by staff members
for a given job. Based on the job complexity and level of responsibility, and the seniority of
the occupational role, an average of three to five functional competencies are assigned to a
given job. Given the varied nature of its work, the Agency could adopt numerous core and
functional competencies.
However, following a thorough analysis of all scientific and Administrative fields of work, it
was decided to restrict the Core competencies provide the foundation of the framework,
describing behaviors to be displayed by all staff members. They are defined by occupational
roles for a given job. Functional competencies are defined by duties and responsibilities
assumed by staff members for a given job. The Agency could adopt many core and functional
competencies given the variety of its work, but after carefully examining all scientific and
administrative fields of work, it was decided to limit the number to four core competencies
and eleven functional competencies. According to the analysis's findings, many abilities are
shared across a wide range of professions, and a more uniform approach would guarantee
more efficient and effective human resource management.
Researcher expect to introduce to competency frame work and the research model which is
highly related factor that is to be tested from this research whether or not it is practically
involves for organizational success.

2.4.2 Core Characteristic of Competencies

Core competencies are those finding in value chain functions where a particular firm has a
strong competence. Accordingly, core competencies are value chain activites in which the
company is regarded as better than its competitors (Hollensen, 2011). In this setting,
managers, workers and all others try their best to acquire such core competencies.

24
Figure 2.1
The Roots of performance and competitive advantage

Performance
Tangible ‘assets’
Market shares
(Flexible /short term) ROI etc.

Competitive
Advantage
Perceiv Relative
ed Cost

Core Competencies

Competencies
Tangible ‘assets’
(‘tacit’ knowledge /
long term)
Resources

Source: Hollensen, (2011).

25
An organization may successfully connect the knowledge, skills, and abilities of its people
with organizational goals by using a competence framework, which leads to increased
productivity and business improvement. Therefore, achieving an organization's goals in line
with its mission and mandate requires a well-structured and well-defined competence
framework as recognized as dedining below.
More specifically, competencies make sure that:

 Clearly stated expectations are made, and staff members are given instructions on
how to assume and reinforce desired behaviors in keeping with the mission, values,
and objectives of the company.
 A common language is established to communicate what is required and anticipated
in the workplace, enabling the delivery of consistent, high-quality performance.
 The various facets of human resources management can be integrated, improving
consistency in human resources planning, recruitment, learning and development, and
performance management, and thereby contributing to the streamlining of human
resources operations and ultimately to efficiency gains.
 Fostering employee mobility, organizational transformation, and organizational
culture development.

All human resources management processes, including planning, recruiting, performance

management, and employee development, heavily rely on competencies. They depend on the
intricacy of the tasks included in job descriptions as well as the professional roles and
obligations.

• Competencies are used in job design, which entails deciding on the work's content,
the conditions necessary to do the job, and the interactions between the job holder and
other employees, as part of planning. Competencies in this context guarantee that the
qualities, abilities, and behaviors required to meet the highest performance criteria for
a particular profession are specified.
• Competencies are a crucial component of the hiring process because they make it
easier to evaluate candidates and decide if they are qualified for a position.
• Competencies make it easier to identify individual and agency-wide staff
development goals as well as performance criteria against which personnel will be
evaluated in the context of performance management and staff development.

2.4.3 Dimension of Competencies

26
The term "dimensions of competency" refers to the fact that the evaluation is not just based
on a task but rather encompasses all facets of performance and takes an integrated,
comprehensive approach. Task skills, management and emergency skills, role skills, and
transfer skills must all be taken into account throughout the evaluation process.
The four requirements that must be satisfied in order for someone to demonstrate their
competence to perform a new skill are outlined in the dimensions of competency. Every
verification technique must contain a recorded evaluation. The assessment of theoretical
knowledge often takes place in a training room, although it can also be done on the job (for
example, through verbal questioning that is recorded). On-the-job skill evaluations may
involve a practical exam or simulation. Competencies play a significant role in a worker's
total job duties and are actively considered throughout the annual review process. When an
individual passes a competence test, supervisors are informed that they can perform the
essential duties of the position.
Mainly use following methods to evaluate competencies, though there are various methods
available for measure the competencies.

Recognition of Prior Learning (RPL)

RPL is an assessment pathway to confirm the skills and knowledge that a worker has gained
previously through informal or non-formal training, or through life or other work
experiences. For example, if a worker has been trained and worked on a piece of plant for
several years, but for some reason has never been assessed, the RPL assessment process
could be used. The evidence supplied and assessed for RPL must be valid, sufficient, current
and authentic, RPL should never bypass or shortcut the assessment process. It is a means to
acknowledge that sufficient evidence has been collected to verify competence.

Recognition of Current Competency (RCC)

RCC is an assessment pathway for workers who have previously completed an assessment,
been deemed competent, and are now required to be reassessed to ensure that competence has
been maintained. For example, a worker previously been assessed as competent for issuing
work permits on a company's mine site, may be assessed by RCC when they start work on
another mine site of the same company using an identical work permit system.

2.5 Conceptual Background

27
Competence (also spelled competency) refers to the capacity of an individual's or group's
knowledge or ability, as well as the ability to do an action effectively or efficiently. Both the
"ability to do something well" and the "expertise" are definitions of the word "skill."
Competency is the capability to apply or use the set of related knowledge, skills, and abilities
required to successfully perform 'critical work functions' or tasks in a defined work setting.
Competencies often serve as the basis for skill standards that specify the level of knowledge,
skills, and abilities required for success in the workplace as well as potential measurement
criteria for assessing competency attainment. Competence is a measure of both proven skills
and proven knowledge.
Competence is the set of demonstrable characteristics and skills that enable and improve the
efficiency or performance of a job. The term "Competence" first appeared in an article
authored by R.W. White in 1959 as a concept for performance motivation. In 1970, Craig C.
Lundberg defined the concept in "Planning the Executive Development Program". The term
gained traction when in 1973, David McClelland wrote a seminal paper entitled, "Testing for
Competence Rather than for Intelligence". It has since been popularized by Richard Boyatzis
and many others, such as T.F. Gilbert (1978) who used the concept in relationship to
performance improvement. Its use varies widely, which leads to considerable
misunderstanding. Some scholars see "Competence" as a combination of practical and
theoretical knowledge, cognitive skills, behavior and values used to improve performance; or
as the state or quality of being adequately or well qualified, having the ability to perform a
specific role. For instance, management competency might include systems thinking and
emotional intelligence, and skills in influence and negotiation.
Studies on competency indicate that competency covers a very complicated and extensive
concept, and different scientists have different definitions of competency. In 1982, Zemek
conducted a study on the definition of competence. He interviewed several specialists in the
field of training to evaluate carefully what makes competence. After the interviews, he
concluded: "There is no clear and unique agreement about what makes competency."
Here are several definitions of competency by various researchers:
Hayes (1979): Competences generally include knowledge, motivation, social characteristic
and roles, or skills of one person in accordance with the demands of organizations of their
clerks.
Boyatzis (1982): Competence lies in the individual's capacity which superposes the person's
behavior with needed parameters as the results of this adaptation make the organization to
hire him. Albanese (1989): Competences are individual's characteristics which are used to
28
effect on the organization's management. The competencies which directly relate with the
Organizational success are included under the three types of competencies. There are various
competencies that are straightly impact on the organizational success. Some of key
competencies can be mentioned as follows.
Communication
The ability to successfully transmit or exchange ideas and sentiments is referred to as
communication. According to a number of experts, effective communication skills entail
conveying messages without deceiving or misinforming people.
Human Resources Skills and Competencies
Human resources professionals can perform their tasks successfully thanks to their HR skills
and competencies. Active listening, event planning, objectivity, and team-building techniques
are a few examples of HR competencies.

Analitycal Thinking
To create an opinion or determine if something is correct or wrong, one needs to be able to
comprehend, assess, and analyze the facts and information at hand. This process is known as
critical thinking. In addition to simply being interested in what is going on around them,
critical thinkers link disparate logical concepts to grasp the wider picture.
Leadership
Integrity, self-awareness, courage, respect, empathy, and thankfulness are qualities that make
for a good leader. They should be developing their agility and flexing their influence while
successfully communicating and delegating. Look for ways that all levels of your business
may acquire and develop these essential leadership skills.
Knowledge Sharing
T the way teams learn in businesses may be influenced by knowledge sharing, which is the
reciprocal exchange of ideas and information (Shamsie & Mannor, 2013). It entails the
gathering, arranging, reusing, and dissemination of tacit knowledge, which is frequently
referred to as the implicit understanding of one's own actions.
Creating Mutual Understanding
A shared understanding or consent between two or more persons is referred to as mutual
understanding. It acknowledges that each individual in a relationship has a distinct viewpoint
and that it is crucial to comprehend one another's needs, wants, and opinions.
Project Management
29
Project management is goal-oriented, with an emphasis on accomplishing certain project
objectives while maintaining customer satisfaction. Results are the focus.

 Change-focused: Project management is a tool for organizing the planning and

management of change. It uses flexibility when carrying out tasks in a hazardous
environment.
 Single Responsibility Center: The project manager is the only person or entity
responsible for the success of the project. From the start of the project through its
conclusion, the project manager's function is essential. He is a project champion and
leader. He inspires the team to achieve success.
 Team-based: A multidisciplinary project team with a wide range of expertise and
experience makes up a project management team. The group is committed to the
initiative. Each team member is accountable for a specific unit of work. Self-control is
stressed. Membership involvement is also. The team's composition is adaptable and
varies as needed for the project.
 Coordination along functional lines is necessary for project management. An
organizational matrix has a vertical and horizontal work flow.
 Planning and Control: For continuous improvement, project management needs
integrated planning and control systems.
 Limitations: Project management produces results while staying within the parameters
of time, money, and quality. It is a resource- and time-constrained endeavor.
Customer needs are its primary concern.
1. Body of Knowledge: A body of knowledge for project management includes
concepts like scope management.
2. Management of time
3. Change Administration
4. Integration Control
5. Controlling costs
6. Quality Control
7. Human Resource Administration
8. Conflict Resolution
9. Management of Risk
10. Management of Procurement

30
Decision Making
There are some characteristics of operational decision. An operational decision must be
precise, agile, consistent, fast and cost-effective to be effective. Precise which means good
decision been made by using data quickly and effectively to take the right move. Employees
must be knowledgeable with correct analyses.
Supervising
Success in this position frequently comes from those who have strong management and
interpersonal abilities as well as an affable, self-assured, and encouraging attitude. A great
boss is someone who works hard to learn new things all the time, builds on their strengths,
and recognizes any areas where they can do better.

Technical Analysis
The goal of technical analysis is to recognize and forecast market trends. The fundamentals
of a corporation (such as costs, revenues, etc.) are often given little to no consideration by
technical analysts. They are more interested in identifying predictable stock price trends and
placing bets on the continuation of those patterns.
Clear Goal Setting
The SMART approach, which stands for Specific, Measurable, Achievable, Relevant, and
Timed goals, is used by the majority of corporations. These are particular traits that
successful goal setting use.
Conflict Resolution
The SMART approach, which stands for Specific, Measurable, Achievable, Relevant, and
Timed goals, is used by the majority of corporations. These are particular traits that
successful goal setting use.
Problem Solving
In order to make sense of a situation and provide a clever solution, problem solving requires
both logic and imagination. In actuality, the most effective problem solvers actively foresee
probable future issues and take steps to avoid or lessen their effects.
Team Building
In order to make sense of a situation and provide a clever solution, problem solving requires
both logic and imagination. In actuality, the most effective problem solvers actively foresee
probable future issues and take steps to avoid or lessen their effects.
Negotiation
31
From experience that optimism, assertiveness, and a vivacious, outgoing personality are all
qualities that may be significant assets in negotiation, allowing dealmakers to forge
connections, elicit the interests of others, and effectively advance their own objectives.
Prediction
Major determinants of organizational performance are thought to include top managerial
capital (in terms of inspiration, competence, and communication) and organizational capital
(in terms of external, professional, and employee orientation as well as networking, financial
management, and market emphasis).

Prevention
Measures and activities made in advance to stop the creation of new dangers or hinder their
strengthening. Working around hidden risks and weaknesses is necessary.
Planning
Setting goals and choosing a course of action to achieve them are both part of the
management task of planning. Managers must foresee future situations and be aware of the
current environmental factors affecting their firm.
Partcipation
The following are the goals of employee involvement in management: to increase employee
motivation by being more involved. To provide workers the chance to express themselves
and a sense of importance. To create understanding-based connections that will improve
effort and harmony.
Performance
Performance in management is a tool that helps managers monitor and evaluate employees'
work. The goal of performance management is to create an environment where people can
perform to the best of their abilities and in alignment with the organization's overall goals.

2.6 Competence Theory, Policy And Practice

The following is an overview of the history of competence theory, how it has been influential
in recent European politics and how it has been applied by the European multinational
company Airbus.

32
Competence like skill is a subject of debate and sometimes controversy, but there is general
agreement that it describes the skills, knowledge, and behaviors required to meet employment
standards in a work environment. The way in which this competence is created, assessed and
applied necessarily varies significantly across sectors and occupations, and there are also
considerable theoretical differences across countries. When the European Commission was
looking to develop the credit transfer system for Vocational Education and training, and
ultimately the European Qualification Frame work, it needed to find the right balance
between existing approaches to the concept of competence. The competence typology
developed by the team that developed the European Credit Transfer and Vocational
Education Training competence typology looked at the three dominant approaches to
competence across Europe and proposed a single framework based on common factors.
The UK pioneered competence based Vocational Education Training with its system of
National Vocational Education Training qualifications, which focused primarily on functional
competence the skills needed to carry out specific work tasks and the knowledge
underpinning those tasks. In France, a more complex approach was adopted in the form of a
triptyque a word borrowed from art which refers to a three paneled painting, such as
Hieronymus Bosch’s ‘The Garden of earthly delights’, which now hangs in the Prado
museum in Madrid. In French, the triptyque refers to knowledge, skills and behaviors,
meaning that people must know things, know how to do things and know how to act
appropriately in order to work as effective team members. The German approach, on the
other hand, is more complex and includes both specific domain knowledge as well as work
process knowledge as well as social competence as well as personal competence, which is
shared with the behavioral domain.
As most European countries had systems that were largely based on one or the other of these
three dominant approaches, it became possible to propose a typology of competence that all
countries could agree on in order to facilitate credit transfer and reciprocity of qualifications
to promote labor mobility. The French approach offered the framework that most closely
aligned with the others and corresponded most closely to Bloom's taxonomy that is widely
used in training, often summarized as knowledge, skills and attitudes, but where attitudes
support behaviors, the meaningful outcome measure. From the point of view of competence
theory, these component dimensions cognitive, functional and behavioral remain the basic
building blocks of competence and are still present in most qualification frameworks.
While the analysis of Europe’s approaches to competence resulted in a best-suited typology
for the proposed competence typology for the European Qualifications for Vocational
33
Education and Training (ECVET), its adoption was more problematic. Instead of adopting
our recommendations, ECVET’s Technical Working Group (TWG) decided to keep the term
‘KW&C’s’ from its original remit and replaced it with the term ‘meta competencies’,
resulting in confusion that competence is an umbrella term and a dimension and meta
competences are a sub dimension. At the same time, the expert group (EG) convened by the
EC to develop the European Qualifications Framework (EQF) kept knowledge and skills
within its typology, replacing them with the terms personal and professional competences,
which were further broken down into four categories i.e. autonomy and responsibility,
learning competence, communication and social competences, and professional and
vocational competence. The inclusion of autonomy and responsibility as competences reveals
the extent of the conceptual confusion, as these are attributes of work organization, rather
than individuals, although responsible autonomy implies a degree of knowledge and
competence. The EQF competence framework eventually shifted back to knowledge, skills,
and competence, but with brackets after competence for ‘responsibility’ and ‘autonomy’. In
follow up initiatives, competence emerged as an overarching concept, a dimension of the
concept, and even as a sub dimension of itself. This suggests that confusion has thrived in
policy implementation.
Given the lack of clarity in policy tools, it’s probably a good thing that their influence on
practice has been relatively small. Many companies were already working on their own
competency frameworks, either on their own or in partnership with other employers within
the same industry, and they have continued to work on them. Some of the first companies to
develop corporate competency frameworks were Daimler. There have also been advances in
European wide competency frameworks, particularly in nursing and welding and in sectors
like chemical processing. The following case study describes a similar parallel development
in the case of Airbus (Airbus Toulouse): The case study was written by the first author, who
supervised managers studying the Aerospace MBA at the Business School of Toulouse
(Toulouse Polytechnic), and the second author who was then a doctoral student at University
Toulouse and who worked for the company.
The aerospace industry, especially in the commercial aircraft sector, is highly cyclical.
Production lags behind demand for air transport and there is a permanent imbalance between
demand and supply. Traditionally, the human capital management approach has been to lay
off employees during a market downturn and then bring them back during the next upturn.
This approach failed at Boeing when IT booms in Silicon Valley attracted laid-off workers.
As a result, aerospace companies started to think strategically about future job and skills
34
forecasting, as well as human capital management to retain core competences. At Airbus, the
human resources team recognized the need to have a system that enabled managers to make
better decisions in relation to future competency needs and to have mechanisms in place to
predict more accurately future competency gaps and to either secure or develop those
competences in the medium-term. In doing so, there was a clear recognition of the
importance of identifying and retaining core competences that underpinned competitive
advantage and avoiding a situation where the majority of higher skills were in older
employees who would soon be retiring.
Airbus had an advanced tool at its disposal called Optimize Skills which involved employees
and managers working together to compare the skills defined by a line manager with the
skills acquired by the person in post. This process compares the individual’s self-assessment
of existing skills with the line manager’s assessment in an Optimize Skills interview,
resulting in the updating of any identified skills gaps and subsequent training requirements.
However, the company was not using a method developed in France to predict future jobs
and skills needs called GPEC Grande precedence education competences which was
considered too complex for such a high tech operation.
The company’s Resource Planning Model was based on the five year Airbus Operating Plan,
which compared workload calculation with workforce capacity (headcount) at the end of the
process. At the end of this process, occupations were added to provide a qualitative estimate
of workload / workforce conversion. Airbus already has one of the most robust competency
management frameworks, but it was mainly focused on current competency needs and
introduced the qualitative dimension too late. The goal was to introduce competency scenario
development and simulation related to the relevant business drivers at the start of the process.
After consulting internal stakeholders, six key needs were identified for the competency
scenario and simulation tool.
For each professional group of experts, questions were asked about qualitative changes in key
competencies involved and quantitative changes via internal mobility internal and external as
well as recruitment and attrition. Participants in the scenario analyses made hypotheses on the
rate of quantitative change while training hypotheses were added on the rate at which
proficiency will be acquired. The maturity of competence management was positively
correlated with forecasting in six divisions of the project. Forecasting seemed to be the
driving force behind competence management, driving improvements in tools and processes
while increasing perceptions of competence gaps to be addressed.

35
In practical terms, the project focused on improving the current Optimize Skills capability
management tool, by designing and deploying a tool and related processes for capability
forecasting and management across the Airbus and European, Aerospace Defense and Space
divisions. This was referred to as ‘EADS Competence Management’ or ‘ECM’. The aim was
to ensure consistent competence management across the EADS divisions. The system was
developed by comparing the current status with future requirements based on simulation of
different scenarios interpreting the ‘EOP’ (EADSEOP). This planning and simulation process
was extensively piloted to test the usefulness of the HR mix options in capturing key ‘make’
or buy’ options in sourcing human capital. The processes were improved with each iteration
based on user feedback actively solicited. The majority of users found the tool ‘user-friendly’
and ‘institutive’. There were some issues with clarity of the graphics, but users generally
appreciated the tool. The tool was first piloted in English and then the refined version was
translated into the four other EADS languages (English, French, German and Italian).
The five elements are: Establishing the 'as is' and 'to be' situations, which are driven by the
operational plan Comparing these to determine future gaps Developing the competence
action plan to meet staffing needs by identifying the best HR mix Developing a customized
software solution to integrate the system within EADS Integrating all competence
management within Airbus Integrating the competence forecasting tool into the EADS
Competence management project All EADS divisions reviewed the tool Making changes to
the competence catalogue Redefining some of the core components of the tool However, the
basic competence forecasting tool and process remained unchanged The technological
solution developed in the project has many lessons for HR professionals, both from a
substantive and a procedural point of view. From a substantive point of view, the key issue
may be how to align business strategies with competency needs and how to assess
competences people have and those they need to acquire. The most important procedural
lesson is the need for strategic support from top management and the engagement of key
stakeholders, such as line managers in various roles. At the time of the project, almost two-
thirds of HR leaders surveyed in French organizations recognized the importance of
maintaining key competences, and expressed a need to improve their systems for predicting
competence needs. Today, only a few organizations have such advanced integrated systems
for human capital management, although this is likely to change with the emergence of
human capital analytics. Airbus was clearly at the frontier of competency management at the
time, and their example is being emulated by other organizations. E study a pioneer in
competence management and industry benchmark.
36
2.7 Quantitative Approach

Based on research in space-time geometry, one airline innovated a unique boarding process
called “reverse pyramid “that has saved at least 2 minutes in boarding time.9 This is an
example of the quantitative approach, which is the use of quantitative techniques to improve
decision making. This approach also is known as management science.
The quantitative approach evolved from mathematical and statistical solutions developed for
military problems during World War II. After the war was over, many of these techniques
used for military problems were applied to businesses. For example, one group of military
officers, nicknamed the Whiz Kids, joined Ford Motor Company in the mid-1940s and
immediately began using statistical methods and quantitative models to improve decision
making.
It involves applying statistics, optimization models, information models, computer
simulations, and other quantitative techniques to management activities. Linear
programming, for instance, is a technique that managers use to improve resource allocation
decisions. Work scheduling can be more efficient as a result of critical-path scheduling
analysis. The economic order quantity model helps managers determine optimum inventory
levels.
Each of these is an example of quantitative techniques being applied to improve managerial
decision making. Another area where quantitative techniques are used frequently is in total
quality management.

2.7.1 The Learning and Growth Perspective

This perspective includes employee training and corporate cultural attitudes related to both
individual and corporate self-improvement. In a knowledge-worker organization, people “the
only stores of knowledge are the main resource. In the current climate of rapid technological
change, it is becoming necessary for knowledge workers to be in a continuous learning mode.
Metrics can be put into place to guide managers in focusing training funds where they can
help the most. In any case, learning and growth constitute the essential foundation for success
of any knowledge-worker organization.
Kaplan and Norton emphasize that 'learning' is more than 'training'; it also includes things
like mentors and tutors within the organization, as well as that ease of communication among

37
 workers that allows them to readily get help on a problem when it is needed. It also includes
technological tools; what the Baldrige criteria call "high performance work systems."

2.8 Competency Framework

A competency framework describes the broad range of competencies that define performance
excellence within an organization. Typically, a competency framework includes several
competencies that are used across multiple occupational roles within an organization. Each
competency defines, in a broad sense, excellence in working behaviors. This definition then
sets the benchmark against which employees are evaluated. The competency framework is an
organization’s way of communicating what behaviors are expected, valued, recognized and
rewarded in relation to particular occupational roles. It helps ensure that employees, in
general, understand what the organization values are and what expected excellent
performance behaviors are. In addition to the United Nations, competency frameworks are
also used in many other government and private sector organizations.
Figure 2.2
Illustration of the Core Competencies

COMPETITOR RESPONSE
Easy Hard

High Core Monopoly

Competencies

PATENTS

Profit Competitive
New Product advantage
Know-how

Price
Place
Low Low

Sources of Market strength

Source: Hollenson, (2011)

38
Core values are part of the Agency's competency framework. Core and functional
competencies are part of this framework. Core competencies are defined as:
Core values are ethical principles that shape people’s behavior and decisions. They are based
on the international civil service’s code of conduct and must be respected by all employees.
The core competencies form the basis of the framework and define the behaviors to be
observed by all employees. They are defined by the job functions for a particular role.
Functional competency refers to the duties and responsibilities that employees take on for a
particular job. Depending on the complexity of the job and the level of responsibilities, as
well as the level of seniority in the industry, an employee’s average functional competencies
range from three to five functional competencies.
Due to the diverse nature of the Agency’s work, it could have adopted a number of core
competencies and functional competencies. However, after an in-depth analysis of all the
science and administrative functions of the Agency, the decision was made to limit the
number to 4 core competencies and 11 functional competencies. Based on the results of this
analysis, many competencies are common across many positions and a more standardized
approach would ensure more efficient and effective human resources management.
The competency framework includes three occupational roles for core competencies and 4
occupational roles for functional competencies. Occupational roles refer to the main purpose
of jobs and the relationship between them. For core competencies, occupational roles are
generally defined as follows:
An Individual Contributor (IC) is a member of staff, usually without supervisor authority,
who is responsible for their own performance and their share of the team’s results.
Manager a mid-level or senior level employee with management responsibilities for human
resources and, or finance who manages the execution of programmatic outcomes. This
typically includes a section head, unit head and team leader.
The Senior Manager is an employee at the level of the Director who is in charge of setting up
the enabling environment and making decisions that affect the whole program, functional
domain. The functional competencies are broadly summarized as follows:
Individual Contributors are employees who are responsible for their own work and contribute
to the success of their team. They are usually not supervisors. An associate is a subordinate or
mid-level general service member or a junior professional who supports others and works
under the supervision of a supervisor. A Specialist is a general service member or a mid or
senior level specialist who has expertise in their field of expertise and works on their own
initiative. A Specialist does not usually have direct supervision over staff; however, they may
39
take on project management duties, including coordination of human resources and, or
financial resources. A manager is a member of staff at Middle or Senior Professional level
who is in charge of human and financial resources and supervises the implementation of
programmatic outcomes. Typical managerial roles include: Section Head, Unit Head, Team
Leader, and Technical Lead.
A Senior Manager is a member of staff at Director or Director-General level who is in charge
of setting up the enabling environment and making decisions that affect the whole program,
functional area.

2.8.1 Competencies

Generally, a competency is defined as a set of abilities, knowledge, characteristics and

behaviors that allow an individual to do a job or an activity well within a role. Because
competencies are observable actions that can be tracked and assessed, they play an important
role in defining job needs and in the recruitment, retention and development of employees.

Core Competencies
Core competencies are at the apex of the organizational hierarchy and are considered
“essential.” They relate to and are central to the organization’s strategic purpose, that is, the
functional areas that, according to the company’s view, generate competitive advantage when
implemented correctly.
The core competency of the organization is the set of skills that a company owns and
nurtures. These skills are its most valuable resource and competitive edge. The company
should create a portfolio of services that add value to these competencies. In 1990, the
authors of the now-famous HBR article “The Core Competency of the Organization” (G.
Hamel, C.K.Prahalad) wrote, “When you’re looking to hire someone for a position within
your organization, don’t just focus on the functional competencies they’ll need to succeed at
the job they’re hired for.”by recognizing the importance of cross functionality and core
competences, new employees have a better chance of succeeding in their career with in the
organization and are viewed as human capital a resource to be nurtured and developed, rather
than a human resource.
Cross Functional Competencies
The cross-functional competencies work across a wide range of organizations and
organizational silos, they support an organization’s capacity to eliminate or reduce silo

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thinking and organizational silo management. Instead, they catalyze such important qualities
within an organization as knowledge sharing across organizational entities. Cross-functional
skills include: Financial skills Computer application skills Market knowledge Research skills.
Functional Competencies
Functional competencies, sometimes referred to as technical competencies are defined by the
specific skills needed on a day to day basis by professionals in a particular industry or role.
These competencies are job specific in nature and relatively easy to define in terms of the
characteristics needed for success.

Correlates of Competence Motivation

By recognizing the importance of cross-functionality and core competences, new employees
have a better chance of succeeding in their career with in the organization and are viewed as
human capital (a resource to be nurtured and developed), rather than a human resource (a
resource to consume).
Most scholars consider Robert White’s classic paper on motivation to be the precursor to
competence motivation theory. White coined the term “effectance” and defined it as a
tendency to “explore and influence” one’s environment. He argued that organisms are
“intrinsically motivated” to engage in interactions with their environment. If these
interactions result in “success” for the production of an observable effect on the environment,
then the individual receives intrinsic rewards such as feelings of “efficacy” and “pleasure”
and is motivated to continue “effect” efforts. White’s theory of competence motivation was
considered a “new” approach because it was distinct from the “traditional drive” theories of
human behavior and “psychoanalytic instinct” theory proposed and “popularized” by the
psychologist Sigmund Freud.
At the end of the 1970s Susan Harter expanded on White's theory to create a more
comprehensive framework that she initially referred to as effectance motivation theory, but
was later more commonly referred to as competence motivation theory. Like White, Harter
focused on enjoyment as a reason why people are motivated to interact with their
environment, but she added a number of other elements. First, she proposed that people’s
effectance or capability motivation can vary across achievement domains that is cognitive,
physical, and social. Within each domain, people are motivated to engage in mastery attempts
for the purpose of developing or demonstrating competence. If their mastery attempts result
in success at an optimally challenging task and if they receive significant social emotional
support for such a task then experience feelings of competence that confidence in their
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competence in that domain and performance control that confidence in their control over their
performance. High levels of competence and control lead to feelings of pleasure, which in
turn leads to maintenance or increases in effectance motivation. In contrast to White, Harter
proposed a negative oriented path, according to which those who attempt mastery but fail at
optimally challenging tasks or are not encouraged or disapproved of by significant social
agents will experience a decrease in their level of competence and control in that domain of
achievement, along with feelings of anxiety and shame.
Harter also added a developmental dimension to her theoretical framework by suggesting that
children who succeed in their first mastery attempts and who receive positive and effective
reinforcement from significant adults will internalize both a self-reward system and a set of
mastery goals. As a result of this internalization of standards for optimal challenge in that
domain, such adolescents will no longer need to rely on social agents to evaluate their
performance or to encourage them to continue with their mastery attempts. Conversely,
children who continually fail in their early mastery attempts or receive disapproving or non-
reward feedback from important adults will not only develop low levels of competence and
control in that domain, but will continue to do so as adolescents and adults.
Harter’s early work sparked much research over the next two decades in academia, social
science, and physical science. However, there has been less interest in competence
motivation theory in recent years, probably because the concept of competence has been
absorbed into other theories of motivation, such as goal-oriented and self-directed motivation.
In 2005 Andrew J. Elliot and Caroline Dweck proposed a more central role for competence
and suggested that the term “achievement motivation” should be changed to “competence”
motivation. Their arguments were based on the following:
(a) Competence motivation is present in everyday life activities,
(b) It has a significant and influential impact on an individual’s emotional and psychological
well-being,
(c) It is applicable across the entire lifespan from infancy to older age,
(d) It is relevant across cultures,
The first research in sport psychology supported the model but also highlighted the
importance of competence as a motivator. In other words, people who perceive themselves as
having high levels of competence in any sport or physical activity context tend to have higher
intrinsic motivation to participate in that activity and have more positive affective reactions to
it than their peers who have lower levels of competence.

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Children and adolescents who perceive themselves as having high levels of competence in a
variety of physical contexts e.g., physical education classes, sport teams are more likely to
continue participating and to show higher levels of effort, persistence, and preference for
more challenging tasks, while peers who perceive low levels of competence exhibit lower
levels of task-oriented behaviors and are, therefore, more likely to stop participating. More
recent research has also shown that perceptions of competence are also linked to physical
activity behavior; children with high levels of physical competence demonstrate higher
frequency and intensity of daily physical activity levels. This connection has also been shown
in intervention studies: children who successfully participate in physical activity programs
show an increase in their perceived physical competence, which increases their motivation to
exercise and their actual activity levels. It has also been shown to be relevant for older adults,
as those who have high perceptions of physical competence are more physically active and
exhibit higher perceived quality of life attitudes than their peers who have lower perceptions
of physical competence. Finally, high perceptions of competence across the lifespan have
consistently been linked to higher levels of global self-worth or self-esteem. These results
reinforce the importance of individuals having high perceptions of ability or competence in at
least one valued achievement domain in order to have overall high self-esteem.

2.9 Developmental Trends in relation to Perceived Competence

Lifelong changes are particularly relevant to the physical domain. First, the number of
domains in which people evaluate their competence seems to increase with age. Young
children (4-7 years of age) tend to only perceive competence in two domains: general
competence and social competence. On the other hand, older children range of 8 to13 years
of age have a somewhat more diverse perception of competence that includes five different
achievement domains: academic, athletic, social, physical, appearance, and behavioral.
During adolescence, this number increases to include three additional domains that is close
friends, romantic relationships and job competence. Other smaller developmental changes
continue to occur throughout the adult years.
Second, research in both cognitive and physical domains has shown that the sources of
information that children use to evaluate their competence change as they mature. For
younger children range of 4 to 7 years of age, the primary sources of information are few and
very specific, such as feedback from significant adults and simple tasks. For example, a child
might say, “I’m really good at throwing,” or “I know I’m good at throwing because my
teacher said so.” During the middle to late childhood years range 7 to 12 years of age the

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number of sources of information used to evaluate a child’s competence increases slightly but
the sources remain very specific. During this time, peer comparison and performance
outcomes; win or lose become more important. The number of sources increases again during
the teen years of range 13 to 18 and most teens have the cognitive ability to use a wider range
of sources that include internal that is achieving self-set goals and external that is feedback
from others, performance results, peer comparisons. Going back to the early Harter model, it
may be important for teens to reach a point where they use multiple sources, and where they
are more able to use internalized sources such as personal satisfaction, rather than relying on
single sources such as peer comparison or externally available sources like coaches’
performance evaluations.

2.10 The Impact of Significant others on Competence Motivation

During this time, peer comparison and performance outcomes with win or lose, become more
important. The number of sources increases again during the teen years of range 13 to 18, and
most teens have the cognitive ability to use a wider range of sources that include internal i.e.
achieving self-set goals and external feedback from others, performance results, peer
comparisons. Going back to the early Harter model, it may be important for teens to reach a
point where they use multiple sources, and where they are more able to use internalized
sources such as personal satisfaction, rather than relying on single sources such as peer
comparison or externally available sources like coaches’ performance evaluations. It is not
only the results of the child's performance that is important, but also the feedback they
receive from their parents. For example, a child playing tee-ball for the first time will learn
from their parents' feedback not only if their attempts to learn a skill are appreciated, but also
how the performance should be evaluated.
Another group of adults that can have a big effect on people’s perception of their competence
and effectiveness in the physical world are coaches, physical education teachers, and physical
activity directors. While positive feedback from these individuals is certainly more conducive
to students and athletes having high levels of perceived competence, it is also important for
teachers and coaches to ensure that that feedback is appropriate. For very young children
between 4 to7 years of age, positive and general feedback such as “Great job, Robert!” can be
helpful. However, for older kids and teens 12 years of age and up, it is important for coaches
and teachers to be sure that the praise they give is appropriate. For example, if a coach gives
too much praise to a 12 year old player who just made it to first on a pitcher's error, the

44
athlete may not feel as good as they should because they think the coach thinks they are
"really bad at batting" when that is the level of performance they are rewarded for. Instead,
the coach should give more contingent praise such as "Robert, you did a great job not
swinging at those bad pitches."
Conclusion of the research can be express as follows by summarizing, the central thesis of
competence motivation theory is that people are attracted to participate in activities they feel
they are competent or capable of doing. In physical activity domains, if the aim is to motivate
people to be physically active or to strive for performance excellence, then it will be
important to design environments that improve their perception of competence. According to
the research and theory so far, improved perceptions of competence can be achieved when
individuals succeed at optimally difficult tasks and receive positive, motivating, consistent,
and information based feedback from significant other people in that environment.
The research done by the Steven Shepard with relation to work place competencies can be
expressed as; in the workplace, competency and competency mean different things. We
discussed these differences in detail in his one of article. As he said, while the terms
“competence” and “competency” sound similar they are not the same, they are important, and
one or the other will fail without the other. So, let’s continue this conversation and discuss the
granular nature of competency and how it can be cultivated.

2.11 Organizational Success

Success in an organization is defined as successfully achieving objectives that further the

company's mission. Usually, this entails carrying out a strategy set forth by the leadership.
Nevertheless, success can also result from grasping unanticipated possibilities. Some
businesses are expanding the notion of success today.
Structure, talent, and behavior the three pillars of organizational success cannot coexist and
must be in harmony with one another. When concentrating on one of these components, keep
the others in mind as well to prevent one area from becoming disproportionately stronger
than the others.
Long-term business success is dependent on organizational effectiveness. It makes
organizations more efficient by helping them stay focused on their objectives. An efficient
organization offers the following advantages: Productivity growth Setting specific objectives
and tracking results might improve production.
It is very important Organizational Effectiveness, achieving organizational effectiveness is a
prerequisite for building a successful business. Increasing organization’s capacity to achieve

45
its objectives is essential for generating shareholder value. It implies long-term success for
organization. Organizational performance evaluations may give businesses insight into the
skills and capabilities of present workers as well as areas where there is room for growth.
You may make the most use of the resources at your disposal to accomplish your goals by
learning how to evaluate and enhance an organization's performance.
There are several indicators available to help an organization concentrate on crucial
organizational goals and advance the business. The more contentious key organizational
KPIs. As "Key" indicators of success, many firms may emphasize revenue, profit, and
expansion.
Environmental factors, working circumstances, organizational culture, political
considerations, economic factors, human resource management, organizational structure, and
leadership are among the aspects that have an impact on organizational productivity,
according to the research.
There are six techniques to increase business performance at a company.

• Establish company objectives.

• Find and nurture talent with the appropriate skills and cultural fit.
• Keep an eye on important indicators and make necessary adjustments.
• Boost the level of staff engagement.
• Utilize employee recognition to convey your appreciation to the staff.

Employees create the finished product, handle money, advertise your company, and keep the
documents needed for decision-making. They work out how to continue producing goods and
offering them to your clients. You wouldn't be able to provide clients with a good or service
if it weren't for your personnel. To succeed as a company, managing people is crucial. People
management techniques for successful organizations can be mentioned as follows, with
strategies for People management that promote Organizational Success.

• Rewards and recognition for our top achievers.

• Recognize contributions and employ appropriate personnel management practices.
• Coaching in careers and skills can help you get better.
• Find the leaders.
• One organization, one objective.
• Final Thoughts.

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Theories, concepts and factors related to the organizational success are key indicators to the
professionals to use them for organizational success. And there some important indicators to
prove organizational success.

2.11.1 Profitability of an Organization

It may be beneficial for financial and accounting experts to monitor cash flow inside a firm. It
is important determine whether aspects of business procedures are working by monitoring a
company's revenues and costs. May find it helpful as a financial and accounting expert to
build and manage a profit model. Under this sub topic explains profit models, their
significance, the many varieties, and their essential elements.
A profit model, also known as a business model, is a company's strategy for maximizing
earnings and effectiveness. For a firm, a profit model serves as the entire budget. The model
can take into consideration how a company will produce and export its goods or services,
how much you want to spend on marketing, and any other costs that could arise. Paying for
insurance, salary, and power are examples of additional costs.
Profit models are crucial since they let maximize income for companies. It may demonstrate
how much money have left over after covering all other costs, which might foster future
development within a business. Possessing profitable business strategies might help a startup
company draw in fresh investors and job candidates. Investors and prospective workers may
take notice of team when it has a well-thought-out profit model because it might be a sign of
their potential for success. Profit models are still crucial to an established corporation since
they maintain companies current with industry trends. Keeping model updated on a regular
basis might help keep informed of emerging trends or prospective obstacles.
Various profit models are there in the theory, that are applicable for the business according to
their business type. Different profit models are applicable to various company models in
various sectors. Four typical profit model types are listed below:

1. Model for production; Making the real product or service is the focus of a production
model. Need to buy the components for making items, and need to recruit qualified laborers
to put them together correctly. These two elements are samples of the kinds of things may put
in the production model. When the finished product is ready, the business for which work
could sell it to retailers, wholesalers, or customers directly. Production costs will pay for
themselves when sell the goods.

47
2. The leasing or rental model; the larger materials that a business needs to manufacture its
products are covered by the renting or leasing approach. This can include structures,
machinery, real estate, cars, and other machinery. For instance, if hire bulldozers from a
merchant of construction equipment for a predetermined period of time, may pay the rental
firm ahead when borrow the equipment and then return it once time period is over.
Incorporate the machine's cost into the rental model.
3. A spokesperson; the public is reached by organization via the advertising approach.
Businesses that follow this strategy frequently rely on advertising as their main source of
income despite offering a free product. Selling other businesses ad space in periodicals or on
internet falls under this category. For instance, a business may pay to insert pop-up ads in no-
charge mobile video games.
4. Fourth-party model; when a company sells its services to a third party, it receives
payment through a commission model. Can get a regular base salary as an employee in
addition to commissions for any kind of sale made within pay period. For instance, may be
employed by a clothes company and market shirts to a retail store.

2.11.2 Important Elements of a Profit Model

The elements of a profit model have a logical structure, and a company's effectiveness is
crucial to guaranteeing that its profit margin exceeds its costs. The four essential elements of
a profit model are as follows:

1. Creation; before a company can offer the finished product to customers, a service or
good must go through the manufacturing component. The objective is to produce the
item or service you're selling quickly and cheaply. It's critical to produce goods at a
low cost since otherwise, the cost of doing business may adversely affect profit
margins.
2. Operation; the equipment for the workers and the product can all be included in the
operating component. The operation might be more productive if the staff members
have received thorough training on the equipment and attend frequent training
sessions. The workers might increase efficiency for your team because they are

48
 knowledgeable about their tasks and may feel secure enough in their position to move
quickly.
3. Marketing and sales; the goal of the sales and marketing element is to promote your
brand and business. It's your responsibility to pique your target market's curiosity.
You may achieve this by using billboards, television commercials, magazine adverts,
billboards, and the Internet. To generate favorable word-of-mouth about your good or
service.
4. Delivery; The completed product or service is delivered to the customer as part of the
delivery component. It's crucial to deliver your goods on time to the customer since
happy customers are more likely to have a favorable opinion of the business. They are
much more inclined to make another purchase from you when they have a favorable
opinion of your company. You could also wish to ask customers for their opinions in
a survey once they've gotten your goods. By doing so, may check to see whether they
have any suggestions for the business or item.

2.11.3 Sustainability of an Organization

Organizational sustainability is about providing organizations with the people and

frameworks required for success in the 21st-century global economy, as opposed to
environmental sustainability, which is about the environment. Having the leadership, talent,
global perspective, and change strategies required to meet the particular difficulties
companies are now confronting is what is meant by organizational sustainability. They
consist of, but are not restricted to:

 Maximizing a global talent pool that spans four generations and several cultural
contexts
 Establishing a welcoming workplace
 Educating future leaders to take advantage of diversity
 Worldwide development of female talent
 Putting into practice individualized diversity tactics as opposed to generic ones
 Having meaningful conversations across boundaries

Sustainability is the most fascinating and cutting-edge subject for academics, executives,
consultants, rivals, and customers of contemporary businesses. But structural integration and
modernization have made sustainability more important. The fact that there is disagreement
about the definition of "sustainability" is its sole undeniable quality. The advantages and

49
goals of practically all possible performers are represented by a huge number of definitions
that encompass development and environmental objectives, local and global applications, and
a wide range of institutional contexts. It is understandable that there is some ambiguity over
what the idea of "sustainability" implies given the several ways the term is employed.
Understanding the term's popular origins is crucial for developing empathy for sustainability's
many facets. The United Nations' World Commission on Environment and Development
(WCED) paid close attention to the discussion around sustainable development.
The United Nations established WCED in 1983 to address the problems of fast deterioration
and its effects on global environmental systems' ability to support social and economic
development. The outcome was a famous manifesto called "Our Common Future." This
document, sometimes referred to as the Brundtland Report in honor of the commission's
chairwoman, identifies sustainable development as the primary instrument for determining
future global development policies. According to Brundtland (1987), "development that
meets the needs of the present without compromising the ability of future generations to meet
their own needs" is what is meant by sustainability. The phrase "sustainability" is all-
encompassing, general, and imprecise. Sustainability refers to everything that influences
decision-making, including its social, economic, and environmental implications.
However, the concept of organizational sustainability is well-liked in contemporary
corporations. The capacity of organizations to cope with sustainability has substantially
increased, and an increasing number of workers and graduates has skills and knowledge in
this field. However, assuming that businesses would care about sustainability just because
they can may not be fair. This is especially valid during difficult economic times. The culture
of an organization that supports sustainability and has underlying shared presumptions,
attitudes, and ideas on the solution of sustainability problems is what drives organizational
sustainability. Through corporate decision-making and organizational practices, it affects
organizational behavior (Ketprapakorn and Kantabutra, 2022).
The preservation of cultural values, traditions, history, culture as a whole, and the question of
whether a particular culture will survive are all part of sustainability in culture, which is also
connected to sustainable development and sustainability. Culture is the driving force behind
economic, social, and environmental sustainability, from cultural legacies to creative
businesses. The competitiveness of industrial systems is increased when organizational
strategy and sustainability are aligned (Amui et al. 2017).Sustainable development, on the
other hand, is a strategy for coordinating citizens to assure their long-term existence. This
necessitates taking into account both present and future imperatives, such as social and
50
economic equality and the preservation of the environment and natural resources. Therefore,
the study made an effort to concentrate on the many definitions and conceptualizations of
organizational sustainability. This essay contends that in order to address the particular
problems that businesses are currently experiencing, organizations must have the necessary
leadership, resources, global viewpoints, and change management techniques. Consequently,
ensuring organizational sustainability entails giving firms the personnel and frameworks
required for success in the twenty-first century's global economy. These include building a
workplace where everyone feels welcome, utilizing a global talent pool that comprises
individuals from several cultures and four generations, and training leaders how to exploit
diversity to their advantage.
The three pillars of organizational sustainability are frequently the emphasis. Companies need
to be sustainable in order to thrive in the market nowadays. Organizational reorganization is
necessary for sustainability, just like it is for digital change. Investor needs, consumer wants,
regulatory obligations, talent acquisition, and productivity gains are all aided by giving
sustainability first priority. The desire for a more sustainable way of conducting business,
however, can be linked to a number of issues, such as the requirements of globalization,
corporate scandals, the global economic crisis, and requests for increased company
monitoring from external stakeholders. Therefore, the aim of this study is to contribute to the
definition and conceptualization of "organizational sustainability" in light of the operational
and environmental characteristics of each business.
According to Varsei et al. (2014), organizational sustainability refers to the integration of
sustainable development objectives such as societal fairness, economic effectiveness, and
environmental exposures into an industry's operational environment. Therefore, sustainability
in the manufacturing industry refers to the essence of products or services that are
environmentally friendly, although the methods used to achieve them differ in their intended
use. Sustainability might be different from that of the services sector in other industries, such
as manufacturing. According to Paul Shrivastava (1995), unsustainable industrial operations
in the past are what are causing the current environmental difficulties. Additionally, the
forces of global capitalism have embraced the intensity of global economic activity, which
has been backed by effective trade agreements centered on the number of resources above the
durability of the earth (Daly, 2005; Meadows et al., 2004). Beyond natural resource
restrictions, it suggests a potential crisis of scarcity for organizations that directly and
negatively impact their commercial activities, especially economic activities. The ecological
or environmental crisis is still present and affects business in its social, economic, political,
51
cultural, and socio-ideological dimensions (Mebratu, 1998; Published by the United States'
Michigan Department of Licensing & Regulatory Affairs (Reg. No. 802790777) registered
Research & Innovation Initiative Inc. 2002 (O'Connor). As a result, organizational plans
need to take into account discussions and recommendations pertaining to sustainable growth
and sustainability (Husted, 2005; Vachon, 2010; Gorokhova, 2014; Borim-de-Souza et al.,
2015).

2.11.4 Stakeholder Satisfaction

The level of satisfaction among company's many stakeholder groups, including customers,
workers, investors, suppliers, partners, regulators, and communities, is a crucial measure of
how successfully company is serving their needs and expectations. Stakeholder satisfaction
may be measured and improved to improve brand recognition, customer loyalty, innovation,
productivity, and profitability. Learn how to evaluate and enhance stakeholder interactions by
applying the corporate accountability framework and stakeholder theory. Finding out who
stakeholders are and what matters to them is the first step. Stakeholders may be categorized
using a stakeholder map or matrix based on their importance, influence, and impact on
company. Along with these factors, should think about how people communicate with and
interact, as well as their beliefs, objectives, requirements, and expectations. This will enable
to organize stakeholder involvement into priority areas and adjust tactics as necessary.
Measuring stakeholders' satisfaction with performance and connection is second phase. To
gather and evaluate feedback, may utilize a variety of techniques and resources, including
surveys, interviews, focus groups, reviews, ratings, testimonials, complaints,
recommendations, retention, and loyalty. Along with own goals and aims, should measure
achievements against those of rivals and industry norms. In order to accurately assess
stakeholder satisfaction, need examine both its quantitative and qualitative components,
including its levels, causes, gaps, and trends.
By resolving the problems and possibilities found in the previous stage, may increase
stakeholder satisfaction in the third step. For each stakeholder group, may include objectives,
steps to take, roles to play, due dates, and resources in a stakeholder action plan or dashboard.
Additionally, should routinely assess progress and effect and share findings and
accomplishments to stakeholders. By meeting or surpassing their expectations, resolving their
issues, attending to their requirements, and respecting their beliefs, should strive to add value
for stakeholders.

52
Engaging stakeholders in a deep, continuing conversation that fosters cooperation, trust, and
mutual gain is the fourth phase. To connect and communicate with stakeholders, may utilize a
variety of platforms and channels, including emails, newsletters, social media, blogs,
webinars, events, and consultations. Additionally, should ask them for their opinions and
reply to any that they may have as well as include them in the decision-making and
innovation processes. Should work to promote a culture of openness, responsibility, and
responsiveness that values and takes into consideration the opinions and interests of
stakeholders.
The fifth stage is to engage and involve stakeholders in the success of company and its social
effect. To encourage and reward stakeholders, may utilize a variety of strategies and
incentives, including co-creation, co-ownership, recognition, appreciation, awards, discounts,
and loyalty programs. Additionally, should give them the knowledge, instruction, assistance,
and training they require in order to realize their objectives. In order to motivate and
empower stakeholders to act as ambassadors and allies, should work to foster a sense of
ownership, belonging, and cooperation.
The sixth stage is to adapt to your stakeholders in a dynamic and uncertain environment by
predicting and meeting their changing requirements and expectations. Market research, data
analytics, scenario planning, risk assessment, and contingency planning are just a few of the
sources and techniques you may use to keep an eye on and analyze the trends, opportunities,
and threats that influence your stakeholders. Additionally, you should be adaptable and
nimble in modifying your strategy and course of action as necessary. You should also
disclose and justify your adjustments to your stakeholders. In order to create value for your
stakeholders in the short and long terms, you should strive to be proactive, inventive, and
resilient.

2.11.5 Expansion of Organization

Organizational growth is something many businesses strive for, regardless of their size. It has
the potential to provide companies with a variety of benefits, including greater ability to
withstand market fluctuations, increased power and greater efficiencies from economies of
scale. Understanding the key stages of organizational growth can be essential to ensuring the
longevity of your company. In this article, we discuss what organizational growth is, explore
its benefits and drawbacks and learn its stages.

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When a business is in organizational growth, it might explore expansion and may start
looking for new ways to increase income. Organizational growth is frequently influenced by
trends in industry growth, the lifespan of a firm, and the owners' ambition to create equity
value. A business or organization can expand in a variety of ways, including.
For small and medium-sized firms with limited resources, this method may be beneficial.
These alliances can aid small businesses in obtaining the resources required to stay up with
the quick changes in supply, demand, competition, and other variables. Creating joint
alliances or ventures can provide firms the freedom to switch to new initiatives once the first
is finished or to restructure agreements so that they can continue to collaborate. And
Subcontracting is one sort of alliance agreement that enables businesses to concentrate on the
areas of their operations where they excel. Joint ventures and other commercial partnerships
may give partners access to new markets, creative ideas, fresh perspectives, and cutting-edge
technology, all of which can help the partner company thrive.
Licensing products; it's possible for a business to wish to develop and flourish by licensing
its most cutting-edge goods or technologies. As rivals may eventually copy anything a firm
creates or produces, this tactic could be great for businesses with their own exclusive
technology. One strategy that businesses may take to get the most out of their technology is
licensing. It's also a technique to gain access to the funds required to support future research
and development initiative
Tapping into new markets; by obtaining access to new markets, some organizations are
able to see tremendous organizational expansion. A small business might experience
tremendous development through increasing the demand for its services or goods, particularly
in a sector where competition has not yet been completely established.
Outside financing; many businesses, especially smaller ones, need outside capital to support
their growth. To expand their business, they look for funding from banks, venture capital
firms, governmental organizations, or individual investors.
Product expansion; in order to support growth and increase income, businesses employ
growth strategies that complement their goods and services. One such technique is product
expansion, whereby a company can increase the scope of its goods or services or revamp
existing ones in order to increase sales and profits. When a new technology is developed or
when more traditional kinds of technology become obsolete, for instance, a tech corporation
might employ product growth tactics.
Forward acquisition; organizations can also use mergers and acquisitions as a means for
profitability and growth. A forward acquisition growth involves buying component
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companies that are essentially a part of an organization's distribution chain. For example, if
you own a supermarket, you can use a forward acquisition to purchase additional properties
to convert to your supermarket brand. This allows your business to move competition out of
the way while gaining access to new markets.

2.12 Think about before growing a Business

The phrase "cash reserve" may also be used to describe the liquid assets that your business
has on hand to cover short-term and emergency finance requirements. Of course, cash is the
most liquid asset, but short-term stable assets that are unlikely to depreciate in value, like
money market funds, can also function as cash reserves for businesses since they make it
possible to access your funds fast.
Increased marketing efforts, forging a partnership, introducing new goods or services,
merging with or buying another company, adding staff and franchisees, and growing online
are all examples of expansion. The benefits of corporate expansion abroad could also exist.
Whatever motivations for weighing the benefits and drawbacks of growing company, keep in
mind that expansion may be a disruptive force, affecting every area of company, including
your workforce, resources, and finances.
Therefore, it's crucial to take into account both the pros and negatives. If you're thinking
about launching somewhere else, have a look at the crucial questions to address before
expanding into new markets.

2.13 Disadvantages of Organizational Growth

The following are some drawbacks of organizational growth:

 Lack of resources: Business may require a loan to cover expansion expenditures, such
as the purchase of additional machinery or office space.
 Increased manufacturing volume may compromise quality, which might result in a
decline in sales or clientele.
 Loss of control: As your business expands, it may be essential to assign managerial
responsibilities or divide the task across various locations.
 Increasing capital needs: As business expands, may need a larger workforce,
additional buildings or equipment, and more investments.
 Increased employee turnover: If there is offer, staff more work to do, it may lower
their morale and productivity or even cause them to leave the organization.

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2.14 Advantages of Organizational Growth

Some advantages of organizational growth include following principals;

Attracts new customers; reaching out to new markets or a different group of clients is one
of the biggest motivations for organizational growth. Even if a successful business may
already have a strong consumer base, there is always room for expansion, particularly if it
entails the introduction of new services or goods.
Economies of scale; economies of scale are an additional advantage of organizational
expansion. As your business expands and you place larger orders, suppliers and vendors may
give you discounts or exclusive deals. Frequently, you receive a larger discount from
suppliers or merchants the more you purchase. This implies that you may get more goods or
supplies for a very cheap price and that you can save money to expand your business and
make it even more successful.
Establishes revenue streams; wider product and service options may become available as an
organization grows. By doing this, your business may diversify its revenue sources, reducing
its reliance on just one primary service or product.
Offers branding opportunities; making sure your business or product's target audience
identifies certain qualities with it is what branding is all about. By focusing on online
channels where your audience congregates, outreach marketing, which is the activity of
looking for groups or people that have an interest in what your business has to offer, may
help you build your brand. By using marketing techniques that can raise your brand's
exposure among current and potential consumers, you can enhance the possibility of reaching
a larger audience as your business expands.

2.14.1 Expansion of Organization Locally

Opening a second location, hiring more salespeople, stepping up marketing efforts, adding
franchisees, forming an alliance, launching new goods or services, breaking into untapped
markets, acquiring, or merging with another company, going global, and expanding online
are all examples of business expansion. Start-up, expansion or scale-up, maturity, and exit are
common life cycles that businesses go through as they develop. And sooner or later, company
owners will have to weigh the benefits and drawbacks of growing their enterprise. If make
the right decisions, the journey may be thrilling.

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2.14.2 Join Local Groups

To effectively market small companies locally, concentrate on the neighborhood. People

desire a sense of belonging, and being a part of that community might provide an advantage
over other national or even multinational businesses. Some of these neighborhood
organizations could host local events, online gatherings, and Facebook pages. May also
become a member of community's Chamber of Commerce, which provides special
advantages including company health insurance, better financing alternatives, and even
roadside help. Even while some organizations need a charge to join, all of them give access to
meetings and events where may promote business. They are a fantastic opportunity to create
alliances, establish connections with other proprietors of small businesses, and take on more
responsibility in your neighborhood. During lockdown, internet and digital events are still
appropriate venues for corporate promotion.

2.14.3 Hold Contests and Competitions

Making connections between the online and offline worlds, raising brand recognition, and
enhancing social media marketing may all be done by holding contests and competitions?
Social media is the best approach to advertise a contest and increase word-of-mouth. Ask
neighborhood clients to share photos on social media using relevant (and local!) hashtags and
give rewards to those who receive the most recommendations.

2.14.4 Offer Local Discounts and Rewards

Everyone likes getting a deal on goods and services, so offering discounts to those who order
online is a great way to get people's attention. Large discounts and vouchers are another great
way to get customers' attention. Add city name to the hashtags and discounts so customers
know it's from town.

2.14.5 Partner with Local Businesses and Influencers

To be an influencer, you don't need a million followers. According to research, micro-

influencers outperform celebrities with millions of followers in terms of engagement and
conversion rates. Build ties with well-known local influencers and people in the area or sector

57
who are well-known and have a sizable following. They might not expect to get paid because
they are micro-influencers and this may not be their full-time job. They could be open to
collaborating with in exchange for cost-free goods or experiences, which will enable to
reduce your expenses. Influencers can help company or brand get recognition, but they can
also help by producing a ton of high-quality media that can utilize for future promotion.
Brand will not only be exposed to the followers of influencer, but it will also strengthen the
impression that the company is a part of the neighborhood.

2.14.6 Add Business to any Local Listings

Ensure that are listed in every local directory in the region. This may be a database, citations,
or an online yellow pages. A minor charge per citation could be necessary, but it will increase
the visibility of company and generate connections to the website. Checking where the rivals
are being linked to and seeing if can get the same connections is another method for finding
listings. Most essential, remember to include website, company address, and contact
information.

2.14.7 Expansion of Organization Internationally

Exchanges and links between nations have increasingly risen as a result of globalization.
More than ever, human activity is connected to other human activity worldwide. Businesses
have the chance to expand internationally, seize new opportunities, and make use of
resources available in other nations (Lin et al., 2020). The rise of possibilities, however, is
accompanied with the emergence of risks. Companies are continuously under pressure and
require a strong strategy to be competitive because of an increase in competitors, new
technology, and quick innovation. They must make sure they have a sustainable market
position in order to survive and perform successfully. To fulfill this goal, they might employ
a variety of strategies, with market expansion being one of the most common (Sun, 2019).
Growth on a global scale needs to be properly planned. It is a plan and a major task for
business owners, not a chance or a gift. According to Eitzen and Sartorius (2012), growth is
mostly employed to create superior value or achieve a superior strategic position. Such
progress is also fueled by resources and motivation. Success depends on management's
capacity to foster and promote development (Eitzen and Sartorius, 2012). To drive the
expansion, the business requires the appropriate people in the right positions. Another

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problem is the growth-at-all-cost mentality, which refers to an expansion ambition driven by
managers that may not be totally consistent with maximizing shareholder value. Financial
restrictions exist as well, such as liquidity restrictions. Therefore, a thorough and well-
defined plan is required for global expansion (Bhattacharya, 1992).
There are too many different ways to cover them all in one essay. Because it is under
represented in the literature, this study will concentrate on international market entry, which
is also known as internationalization. The most widely used tactics are joint ventures and
acquisitions.
In order to close this gap in the literature, this topic. Giving firms that have never seen such
growth access to excellent practices for internationalization is a secondary objective. It is an
experiential knowledge that businesses reserve for themselves, and this thesis tries to
condense this information to some level in order to make it more widely known.
Internationalization is a component of an organic growth strategy focused on company
growth with an emphasis on market development. Internationalization, by definition, is the
process through which a business enters a foreign market to offer its products and services.
The quickest method to achieve this is when a company exports its services while keeping
manufacturing or resources domestically. However, it's challenging to establish a close
relationship with clients.
Businesses that expand internationally must be extremely cautious throughout the evaluation
phase. As they work to avoid any blind spots and surprises, they must gather data in this first
phase on the variables that will impact their chances of success (Rugman and Verbeke, 2004;
Haapanen et al., 2020). This time frame is critical since it will determine whether the
internationalization process is successful or unsuccessful (Castagna et al., 2020). The
objective is to comprehend the organization's position and function within a company, an
industry, and a market (Guercini and Milanesi, 2019). Answering the following questions can
help you gain a full picture of the overseas market: Where, When, and Why? How then? 2020
(Bai et al.). To put it another way, to comprehend: the location chosen, the time of the
growth, the reasons for it, and the internationalization plan. Beginning with the site, the
business should be aware of the specifications and uniqueness of the (Rugman and Verbeke,
2004) Targeted nation. When expanding internationally, businesses are primarily examining
assets and resources. Raw resources, skills, knowledge, and invention are only a few
examples. Clientele or individuals (Bai et al., 2020). Businesses should simultaneously
evaluate the many main entrance hurdles include money, the environment, operations
(performances), and (Castagna et al., 2020) organizational. Additionally, some regions have
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significant variations with the growth might be hampered or damaged by the home nation
(Rugman and Verbeke, 2004).
The type of industry is also related to the rate of expansion. For instance, it is well recognized
that R&D-intensive operations hinder internationalization (Bryl, 2014). The diversity of the
senior management team therefore affects decision-making, and by extension, strategy.
The internationalization agenda is shaped by the interaction of different experiences,
priorities, and strategic orientations (Haapanen et al., 2020; Chung and Yoon, 2020). A
variety of viewpoints on the table improves problem initiation but impedes member
consensus (Haapanen et al., 2020). Additionally, when expanding internationally, businesses
must make substantial organizational adjustments in order to adapt to the new market
(Bartlett and Ghoshal, 1989). The home country strategy must typically be modified to create
a new one that suits the values and consumers of the host nation better (Yoder et al., 2016;
Zahra et al., 2001). Success or failure of a company depends heavily on its capacity to
transfer and adapt culture across boundaries. Failure to create coherence and consensus, it
must handle cultural variety (Luo, 1999). Finally, businesses need to have a strong network if
they want to increase their chances of survival. These strategic partnerships may be
established with regional businesses to not only obtain resources but other businesses moving
operations overseas to cut expenses and risks (Luo, 1999; Castagna et al.2020). Early on,
survival is facilitated by this grouping of businesses (Castagna et al.)

2.15 Modern Concept of Competencies

The abilities that were highly valued over the previous ten years are likely to be replaced by a
new set of talents, according to a new report by PSI. This is because of changes in the
workplace brought on by COVID-19, digital transformation, and other factors. The top seven
competences from the last 10 years have been determined by PSI using feedback from its
international clientele in a variety of jobs, organization sizes, and sectors. The World
Economic Forum's Future of Work skills report was combined with developing themes
observed in practice during the previous year in order to forecast the new core competences
need for the changed world of work.
These new abilities represent adaptability in the way we use technology, think, interact with
others, and manage our own well-being. The emphasis on soft skills, together with the
capacity to embrace diversity and adapt to change, are crucial in the contemporary
workplace, and PSI anticipates that they will have a significant influence on success in the

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workplace of the future. Together, they give people a strong basis for adapting to change,
ambiguity, and complexity, allowing them to move beyond merely surviving to really
excelling at their jobs.
Because they examine and identify real behaviors that can be assessed and improved,
competencies have shown to be a reliable way to gauge success at work. The psychologists
and behavioral scientists at PSI have conducted decades of study on workplace behavior and
performance, and they are familiar with the combination of work qualities that may support
career success. "Today's world of work is continuously changing, and this presents a
significant challenge for organizations when hiring and managing their most valuable
resource: their people," said Dan Hughes, Director of International Research and
Development at PSI. "Competencies continue to provide a simple, clear, and observable way
to determine what 'good' looks like in a job and measure performance. Our aim is to help
organizations understand which competencies are important to their success."

2.16 Application of Competencies

Competencies help your employees know what to do and how to do it. They tell your
employees what they should do and how they should do it to achieve organizational success.
They show your employees what behaviors and actions will be appreciated, acknowledged
and rewarded. A competency framework allows an organization to effectively match the
skills, competencies and knowledge of its employees to organizational priorities, leading to
business growth and efficiencies. This is why a well-defined and well-defined competency
framework is essential for achieving an organization's objectives in line with mission and
mandate.
To put it another way, competencies guarantee that:
• There are clear roles and responsibilities and staff are taught how to take on and support
behaviors that align with the mission, culture and objectives of the organization.
• A common language is created that describes what is required and what is expected in the
workplace to ensure consistent and high-quality performance.
• The different parts of HR can be combined, improving consistency in HR planning, hiring,
L&D, and KPIs and ultimately improving the efficiency of HR operations and achieving
efficiencies.
• Gaps in skills are bridged, strengths are honed and career development needs are clarified.

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• Employee mobility, organizational transformation and culture development are all
supported
Using systems thinking to understand how linked social, economic, and environmental
systems are, as well as taking the long-term effects of decisions, is an application of 21st-
century sustainability competences can be mentioned as follows.
1. Critical thinking and problem-solving: The ability to analyze complex sustainability
challenges and develop innovative solutions.
2. Systems thinking: Understanding the interconnectedness of social, economic, and
environmental systems and how they impact sustainability.
3. Collaboration and teamwork: Working effectively with diverse stakeholders, including
communities, organizations, and governments, to address sustainability issues.
4. Communication and media literacy: The ability to effectively communicate sustainability
concepts and engage the public through various media platforms.
5. Ethical reasoning and social responsibility: Understanding and applying ethical principles
in decision-making regarding sustainability, as well as recognizing the social impacts of
sustainable practices.
6. Cultural competency: Appreciating and understanding diverse cultures and perspectives,
particularly in the context of sustainability and global challenges.
7. Technological literacy: The ability to use and leverage technology to promote
sustainability, such as renewable energy systems or digital tools for data analysis.
8. Resilience and adaptability: The capacity to respond and adapt to changing environmental
and social conditions, and to promote long-term resilience in communities and ecosystems.
9. Systems leadership: The ability to inspire and mobilize others towards sustainable action,
and to lead transformative change at the individual, organizational, and societal levels.
10. Life-long learning: Recognizing that sustainability is an evolving field and committing to
continuous learning and professional development in order to stay up-to-date with new
knowledge and best practices. When think about above competencies, they explore the deep
idea in each and every competencies how should gain these competencies by any individual
to win the challengers he or she met.

2.17 The Competencies being used and Supported

The term competencies is used extensively throughout the Agency and is an integral part of
every human resources management function, including planning, recruiting, performance

62
management, and staff training. Competencies are based on occupational roles and duties, as
well as the intricacy of duties described in job descriptions. In the planning stage,
competencies are used in job design, where the content of the job, the requirements to
execute the job and the relations between the jobholder and other employees are identified. In
this stage, competencies define the characteristics, skills and behaviors required to meet the
performance requirements for a particular job. Competencies are an essential part of the
recruitment process, as they allow candidates to be evaluated to determine if they are suitable
for the role. From performance management to staff development, skills help define
performance metrics against which employees will be evaluated and define cycles of personal
and Agency-level staff development needs.

2.18 Application of Competencies in Developed Countries

For people to prosper in a world that is changing quickly and for societies to advance without
leaving anybody behind, it is essential to strengthen global competency. Citizens need not
only the skills to be competitive and prepared for a new world of work, but more importantly,
they need to develop the capacity to analyze and understand global and intercultural issues. In
a context where we all have much to gain from growing openness and connectivity, and much
to lose from rising inequalities and radicalism. To provide opportunities for everyone and
establish a common regard for human dignity, it is crucial to develop social and emotional
skills as well as values like respect, self-confidence, and a feeling of belonging. The OECD is
actively engaged in For PISA 2018, the OECD is actively working to evaluate global
competency. For more inclusive communities, we can build global competency together
(Ramos, Gabriela).
International competence means global competency is a multifaceted skill. Capable persons
internationally can address intercultural, global, and local issues concerns, recognize and
value diversity worldviews and perspectives interact successfully and equitably interacting
with others, and use caution in favor of sustainability and general wellbeing.
Schools are essential in supporting young people's development of global competency. They
may present chances for young people to Analyze current world events critically significant
to the global community as well as to their own existence. They can instruct pupils in to
employ in a vital, efficient, and responsible manner social networking networks and digital
information. Schools can promote cross-cultural awareness and regard by permitting kids to
participate in encounters that promote admiration for many races, tongues, and cultural

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groups Sinicrope, Norris, and Watanabe; Bennett, 1993; 2007). Additionally, schools are well
positioned to improve young people's comprehension where they fit into the world and the
society, and enhance their decision-making skills, and enact change (Hanvey, 1975).

2.19 Application of Competencies in Developing Countries

The multinational environment that Chilean (Developing country) construction firms

currently work in necessitates having the ability to respond swiftly to changes, difficulties,
and opportunities. Flexibility, initiative, and a variety of skills are attributes that corporate
employees must possess in this new context. Particularly for site supervisors, competency
standards are being imposed on them for which they are unprepared. Social skills are
becoming more crucial since tasks are no longer as strictly defined as they once were and are
now more service-oriented (National Centre for Vocational Education Research, 2003).
Construction businesses of all sizes, in response to these new requirements, must include the
management of their own employees in their management plans, notably the enhancement of
their competences. There is a substantial gap between the necessity for construction
businesses to execute new competitive strategies and the actual daily conduct of their human
resources management and development in Chile since the sector has been sluggish to value
non-professional workers. These companies frequently have a military-style organizational
structure with well-defined lines of power and superior-subordinate connections. As a result,
site supervisor engagement in workplace decision-making is virtually nonexistent (Serpell
and Rodriguez, 2002). One of the least developed areas of the economy in Latin America is
the building industry. Comparing the situation to the construction business in affluent nations
reveals how apparent the issue is. The application of contemporary technology methods to
address the different issues the Latin American construction industry faces is infamously
inadequate (Serpell and Rodr'guez, 2002).
Construction firms have a history of showing a strong resistance to change, continuing to use
the same techniques even when they are neither the safest nor the most effective as long as
they provide positive outcomes. This predicament has its roots in the cultural characteristics
of Latin Americans, who exhibit a high degree of mistrust when confronted with an
unfamiliar environment. The outcome is a cautious attitude toward any circumstance that
deviates from what is seen as typical (Rodr'guez, 2001).
The strong resistance to change demonstrated by construction companies, which frequently
stick to the same work methods as long as they produce good results, even though those

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methods are neither the safest nor the most efficient, is one of the many factors contributing
to this underdevelopment. This predicament has its roots in the cultural characteristics of
Latin Americans, who exhibit a high degree of mistrust when confronted with an unfamiliar
environment. The outcome is a cautious attitude toward any circumstance that deviates from
what is seen as typical (Rodr'guez, 2001).
Though it is a developing country, professionals of construction industry in Sri Lanka play
vital role for the development of the infrastructure. The government of Sri Lanka has taken
action to develop competencies of workers of most of the fields. At present, unfortunately,
due to economic crisis, construction industry is collapsed in Sri Lanka. Since the
competencies of Sri Lankan construction professionals, they are moving to abroad, it shows
the competencies are match with the requirement of the local and international construction
industry.

2.20 Identifying the Relationship

All organizations today operate in a highly competitive environment that need change to
successfully adjust to changing market conditions. Examining the part that diverse human
variables play in the management and implementation of change projects is crucial in this
setting. After all, one of the most important elements that favorably affect organizational
transformation is good leadership. However, leaders must have a certain set of skills in order
to manage the transition process successfully. The current study's goal is to examine the
connection between leadership abilities and the effectiveness of organizational transformation
processes. A handful of the most well-known leadership abilities have been included into a
unique study model. The key data required to experimentally validate the suggested research
paradigm were collected using a quantitative study and a structured questionnaire.
Construction professionals from construction industry make up the final sample for this
study. According to the findings of the statistical study, there are statistically .significant
correlations between core competency, cross functional competency and functional
competency with organizational success. The effectiveness of the organizational
transformation process has also been demonstrated to be statistically significantly positively
correlated with each competencies.

2.21 Relationship of Core Competencies with Organizational Success

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It combines business expertise with efficient use of human abilities, core competency is a key
to competitive advantage and, as such, is a crucial success element of exceptional
organizations and trend-setting businesses (Godbout, 2000: 77).
A core competence is a special ability or technology that adds distinctive value for customers.
For instance, logistics management is Federal Express' (Fed Ex) key capability. The
cumulative human knowledge and the organizational structure, which affects how employees
interact, are the fundamental personifications of an organization's distinctive qualities. An
organization's fundamental competences vary and adapt as it expands, develops, and responds
to the external environment. Core competences are so adaptable and change over time. They
don't stay fixed and stiff. The offered resources may be used to the fullest extent by the
company, and they can be linked to fresh opportunities presented by the environment.
Resources and capabilities serve as the foundation upon which a business builds and
implements value-adding strategy in order to generate a profit and become strategically
competitive.

Figure 2.3
Core Competence Decision

Source:
Resources are inputs used by a company in its manufacturing process. These might be
organizational, financial, technical, physical, or human. The likelihood that the company will
have core competency increases with the uniqueness, value, and firm-specificity of its
resources. The firm's shortcomings should be eliminated while its strengths should be built
upon. The ability of a company to coordinate its team of resources so that they may be used

66
more effectively and efficiently is referred to as its capability. Organizational systems,
procedures, and control mechanisms typically result in organizational competencies. These
have an ethereal quality. A company may have special and important resources, but if it lacks
the capacity to use them efficiently and productively, it cannot develop core competencies.
The organizational strategy may create new resources and competencies or strengthen current
ones, therefore strengthening the organization's core strengths.
Core competences aid a company in differentiating its goods from those of its competitors,
cutting costs relative to them, and gaining a competitive edge. It aids in generating value for
customers. Additionally, key competences aid in the development of new products and
services.
The organization's future is determined by its core strengths. These determine the attributes
and framework of an international, competitive organization. Innovative techniques replace
core competencies. New technologies can be created by utilizing core competencies. They
guarantee that consumers receive high-quality goods and services.
Leading management gurus CK Prahalad and Gary Hamel first used the phrase "core
competency" in a renowned Harvard Business Review essay. Prahalad and Hamel pioneered
the idea and set the standard for businesses to adhere to in practice by offering a framework
for businesses to compete and attain sustainable competitive advantage.
A company's core strengths may include its outstanding technological competencies,
effective customer relationship management, and highly effective business procedures. To
put it another way, each company excels in a certain area compared to its rivals, can apply
this area of strength to other markets and products, and ultimately generates value for the
customer. The consequences for real-world practice include the need to develop key
competencies and build the business model around them rather than placing too much
emphasis on areas where the organization lacks ability. This is not to argue that other skills
should be overlooked or undervalued. Instead, the premise underlying the notion is that
businesses should capitalize on their primary advantages.
Can be seen as examples that many businesses have benefited from the application of this
theory and that they have been successful in achieving competitive advantage and sustainable
strategic advantage if take the examples from real world companies and evaluate their core
competencies.
For instance, Walt Disney Corporation's core competencies include its capacity for show
animation and design, the company's mastery of the storytelling craft, and the effective and
productive management of its theme parks. Hence, Walt Disney Corporation would be well
67
advised to configure its strategy around these core competencies and build a business model
that complements these competencies.

2.22 Relationship of Cross Functional Competencies with Organizational

Success

Cross-functional cooperation enables several departments to exchange best practices while

working together to achieve a shared objective. A cross-functional team becomes
considerably more agile and better utilizes the collective knowledge of the group when they
use not just one best practice but those from five different departments.
Any objective can be accomplished with focus, but doing so when collaborating with several
teams or departments can be challenging. Say, for instance, that it is introducing a new
feature. To effectively launch upgrades on the market, probably need to incorporate
stakeholders from engineering, customer success, marketing, design, and sales. The term
"cross-functional collaboration," also known as interdepartmental collaboration, refers to
teamwork in which several operational departments of an organization cooperate to address
issues and achieve deadlines. Because it combines many viewpoints and skill sets, this kind
of team cooperation may be a very effective way to solve problems.
Team members have the possibility to collaborate and open up doors for creativity who
otherwise may not have the chance to meet. However, effective cross-functional cooperation
can only take place when the necessary abilities, structures, and direction are in place. This
manual will cover:
When individuals from several teams or departments collaborate on a particular project or
objective, this is known as cross-functional cooperation. To generate better ideas, address
complex issues, and produce better results inside an organization, it makes use of the various
talents and specialized expertise of each team member. Depending on the demands of the
project, the team members participating in cross-functional cooperation might be at any level
or in any position, including marketing interns, customer success managers, and engineers
and team members. Teams are required to work independently and without the guidance of
their respective bosses to accomplish the project. The project will be managed and led by one
team member, and each of the other team members will have a distinct function to play. The
cross-functional team's project is often something the team members’ work on in addition to
their regular daily activities.

68
Long enough spent in a department, you could start to observe teams growing apart. Lower
levels of interaction with the other employees might ultimately lead to stress,
misunderstanding, or a sense of isolation, even while this distance may help you focus on
your task.
The more groups you merge to form a single cross-functional team, the better the
brainstorming sessions will be, and the more you'll understand the overall picture of the
business. Each of these factors boosts worker engagement, which subsequently boosts output
and job happiness. As they develop new workflows for each distinct project, team leaders of
these cross-functional cooperation groups will be able to simplify procedures. Utilizing
efficient frameworks for cross-functional collaboration is one aspect of this. Since each new
project could have a different crew, there is a chance to improve productivity. Team members
may contribute by putting what they've learned from prior projects into practice to enhance
procedures and assist in quickly identifying and resolving problems.
The implementation of cross-functional cooperation may cause some growing pains in the
early phases of cross-functional initiatives, but they are outweighed by the long-term benefits,
which surpass any temporary productivity stalls.

2.23 Relationship of Functional Competencies with Organizational

Success

Functional competences, which contribute to overall organizational productivity, are more

akin to technical skills of an employee. It is more about the abilities that workers must have
in order to carry out technological tasks for a business. Functioning abilities are particular to
people who work in a given job, like sales, finance, or marketing, etc. The precise abilities
and behaviors needed to perform each role within the function should be reflected in the
functional competencies. The overarching departmental plan or goal should be aligned with
these capabilities. Additionally, you may map expected competency levels by position,
recognizing the skills needed for the particular role rather than the degree of seniority.
Individuals may lead and do their jobs more successfully by being aware of these abilities.
Additionally, it gives workers a consistent language to interact with and comprehend
throughout the organization, regardless of whether they switch between functions. It may
create more accurate job descriptions by first establishing the capabilities and the degree of
performance required for each post. These should not only include the job title, salary, and
general description of the position, but also the main duties and goals of the position, as well

69
as how these fit into the organization as a whole. They should also include information on the
competencies needed to perform the position, showing employees the attitudes, morals, and
technical skills needed to succeed in a given position.
Additionally, it makes it simpler to assess performance and more effectively pinpoint skill
and competency gaps. Then, to fill those gaps, specific, concrete training plans may be
created. As a team manager, you can successfully succession plan because you are aware of
the precise criteria for a position and can recognize possible candidates who possess the
necessary abilities and attitudes. It actually helps them, you, and the business if you inform
future candidates and current employees on the role needs and capabilities, regardless of the
structure or size of your organization. Once they're in place, be sure to continually assess
them to make sure they remain accurate and pertinent because job needs change as your
organization does. If a job description has to alter in any significant ways, to improve
organizational success, it directly relate with functional competencies.

2.24 Chapter Summary

This chapter reviewed the literature related to management competencies of construction
professionals since successful completion of construction projects mainly depends on their
management skills. Accordingly, first attention was paid to define the concept of
management competencies and then evolution of the subject of competencies was presented,
tracing its theoretical aspects and work place requirements. Next, literature review identified
different competencies and rheir sub-groups and relationships with organizations’
management success for forming a conceptual framework for the study.

70
 CHAPTER 3 - RESEARCH METHODOLOGY

3.1 Introduction
The methodology for the current research is explained in this chapter. It includes the process
of developing the research question, how primary data are collected, and the type of
secondary data used, how data are presented and analyzed, how the results are interpreted,
and how recommendations are made in light of the results. The chapter finishes with
information on the degree of correctness of the findings, the level of reliability of the
samples, the validity of the suggestions, etc., in addition to the methodology used in the
research process.

3.2 Methodology
This study uses a mixed research methodology containing qualitative and quantitative
methods of data collection and analysis. The research domain was attempted to be narrowed
down to a researchable level in order to maintain the topic's balance and its symmetrical
character, however this effort revealed some limitations that were inaccessible.
Accordingly, the conceptual framework of the study in which an empirical survey would be
conducted, competencies (X variable), was selected.
Organizational success (Y variable) was the theoretical phenomenon through which a
significant amount of theoretical background was framed and developed in accordance with
the information provided in the first and second chapters in chronological order.
Competencies, at which the conceptual component of the current research was designed in
accordance, have a partial but significant impact on organizational success, which is the
degree to which an organization achieves the results that society expects of it. The conceptual
element of the current research was designed in accordance with the Competencies at which
organizational success, or the amount to which an organization achieves the outcome that
society expects of, is affected by. However, this influence is only partial. The method of
analyzing competencies was acknowledged to include core, cross-functional, and functional
competencies.

71
3.2.1 Sampling Frame
Construction Industry Development Authority (CIDA) is the apex organization for the
registration of contractors in Sri Lanka. Researcher decided to select as population C1 grade
contractors. According to the information in the website if the CIDA, Number of C1
contactors are seventy one (71). Questionnaire sent through Google form, WhatsApp, and
other possible communication media. Five numbers of forms are sent to the each
organization. Total number of questionnaire sent to the all organizations are 284.

3.2.2 Data Collection

A sample is 10% out of 284 corporate level construction professionals were chosen,
representing C1 contractors as cross section of the construction sector. Hence size of the
sample is 28 numbers of construction professionals.

3.3 Sampling Procedure and Sampling Techniques

Since a questionnaire is the most effective and efficient technique for gathering data, it was
utilized as the research tool. A sample made up of corporate level construction professionals
was selected in order to conduct the questionnaire in accordance with the current research.
Table 3.1 below explains population sample and other demographic variables of construction
professionals’ such as their status, age, experience, academic background, and professional
background.

3.3.1 Primary Data

Primary data is collected from the constructional professionals who work in both government
and private sector in the construction industry in Sri Lanka. These professionals work in the
head office of the organizations and the project level in the field bearing such posts as
managing directors and executive managers and engineers etc.

3.3.2 Secondry Data

Secondary data is collected from reports published by government institutions like CIDA,
World band, Central bank and from other published materials such as research papers,
articles, papers and magazines etc.

72
3.4 Nature of the Selected Sample

Table 3.1
Nature of the Selected sample

Type of the
Construction
professionals

qualification

qualification
Age (Years)
No available

Professional
Experience
No chosen

Academic
284 28 Corporate Head Status 35- 10<30 Master MBA
(10%) level Office 60 Degree (25%)
constructio Executi (30%) Post
n ves Degree Graduate
professiona And Level (15%)
ls Managi (50%) Charter
ng Diploma (60%)
Directo (20%)
rs

Source: Compiled by the writer

In accordance with Table No. 3.1 above, 10% of the sample from the population of 284 was
chosen using a full randomized block system to ensure that it was both efficient and
representative using random numbers were used considering rheir stratification as 15% of the
selected has completed a Post Graduate Diploma, 25% of are well-qualified and have passed
at least an MBA, and 60% has acquired Charter in Engineering. Irresepective of these
differences sample, many other ways is homogeneous.

73
3.5 Distribution of Task Group Personal

Table 3.2
Distribution of Task Group Personal

Corporate Level
Civil Engineering Construction Institutions
Construction professionals

Maga Engineering (Pvt) Ltd 31

Micro Engineering 15

Senok Trade Combine (Pvt) Ltd 17

Tudawe Brothers (Pvt) Ltd 11

A M S K Constructions (Pvt) Ltd 18

Blue Ocean Construction 12

Central Engineering Services (Pvt) Ltd 12

Access Engineering Plc 14

R N Construction (Pvt) Ltd 22

Edward & Christie (Pvt) Ltd 19

N E M Construction (Pvt) Ltd 31

Dockyard General Engineering Services (Pvt) Ltd 17

D P Jayasinghe Piling Co. (Pvt) Ltd 8

Commercial Construction Consotium 9

Saw Engineering (Private) Limited 7

Advantis Projects & Engineering (Pvt) Ltd 21

74
 George Steuart Engineering (Pvt) Ltd 10

Engineering Design And Construction Company (Pvt) 10

Ltd

Total 284

Source:

Table 3.2 shows that there were 284 employees overall, of whom 10% were chosen at
random to make up the sample. Consequently, 28 members of the work group who are
employed on a permanent basis.
3.6 Selection of Sample

Table 3.3
Selection of Sample

Corporate Level
Reason for
Construction Total
selection
professionals

Length of the 28 Experience 28

sampling frame

Stage one 28 (100%) 10% at random 28

Source: Compiled by the writer

As per table 3.3, one stage, random, stratified sampling method was applied to select 28
construction professionals from 284 Corporate Level Construction professionals of the
organizational hierarchy.

75
3.7 Sampling Accuracy
The sample's reliability has a significant impact on the accuracy of the results. The sample
must initially be representative. Second, the sample's basic units were to be selected at
random. In terms of the current study, a full randomization block design was employed to
select the basic units, allowing for 100% accuracy, and a one-stage random sampling
procedure was utilized to ensure that the sample was completely representative.10% of the
elementary units were selected from various sampling frame segments, ensuring the high
efficacy of the samples that were selected entirely at random using random number tables.
(The degree of homogeneity affects the sample's efficiency.) Therefore, the elementary units
were chosen using a single stage of stratified sampling.

3.8 Validty of Sample

Validity of the sample is highly important o the research, hence, sample is selected to cover
the whole construction industry; Building construction, Highway construction, Irrigation,
Water related structures Road construction, Hydropower station construction, Airport
construction, and etc. In addition to that, moat experience and well-established organizations
were selected for the sample.

3.9 Conceptual Model

Figure 3.1
Conceptual framework

Core- Organizational
Competencies profitability

Cross-
Competencies
Organizational Organizational
success sustainability
Functional
Competencies
76

Organizational
Pro-active
Expansion
Source:

3.10 Operationalization and Variable Association

It is necessary to operationalize variables or characterize them in a form that enables precise

measurement. They could be operationalized as continuous or categorical variables.
Continuous variables are expressed as absolute numbers for each subject in the sample,
whereas categorical variables are expressed as category frequencies over the entire sample.
There are various reasons why continuous data shouldn't be transformed into categorical
variables, but the most crucial one is that precision and statistical power are lost. However, in
some cases, such as when variables can't be measured precisely, it might be acceptable to do
so. Confounding factors produce erroneous (or suppress true) correlations by increasing (or
decreasing) the apparent effect of an independent variable on the dependent variable.

Table 3.4
Operationalization and Variable Association

Dependent
Independent Variable (X) Indicators
Variable(Y)

1. Communication
Core- 2. HR skills and competencies
Competencies competencies 3. Analytical thinking
of 4. Leadership
Organizationa
Construction
l Success
Professionals Cross 5 Knowledge Sharing
(Y)
Functional 6 Creating mutual
Competencies understanding

77
 7 Team building
8 Clear goal setting

1. Project management
2. Decision making
3. Supervising
Functional
4. Technical analysis
Competencies
5. Conflict resolution
6. Problem solving
7. Negotiation

9 Prediction
10 Prevention
Proactive
11 Planning
Competencies
12 Participation
13 Performance

Source: Compiled by the Writer

3.11 Data Analysis Methods
For each factor, the standard deviation (SD) was calculated in addition to the arithmetic mean
score (x bar). According to statistical criteria, the larger the standard deviation value, the
higher the variance (dispersion), and as a result, the relevant factor becomes insignificant (not
important). On the other side, the smaller the standard deviation value, the greater the
influence, making the factor important and also the supplied factor is treated as 'variable'
which affects to change the dependent variable (Y variable). Accordingly, a row-column
order has been used to tabulate all indicators (factors). The sample is provided below.

Table 3.5
Specimen Calculation

Likert score score score score score

Response
scale X X X X X

2 15 6 10 20 7 14

78
 1 9 9 8 8 14 14

0 0 0 0 0 0 0

-1 3 -6 -6 0 -4 0

-2 1 -7 -4 0 -3 0

Mean 0.4 1.6 5.6 2.8 5.6

Stdev 7.1 7.1 8.8 7.6 7.7

Source: Compiled by the writer

3.12 Analitical Tools and Methods of Data Interpretation

As previously mentioned, data (views) were gathered through the administration of a
questionnaire; these data were tabulated according to their similarity; percentages were then
calculated to assess the relative differences of respondents' opinions; as a result,
interpretations of findings were given as percentage values. The following table displays the
specific findings.

Table 3.6
Criteria of Interpretation

Mean SD Interpretation Decision

Closer to Zero Zero Highly significant Not a variable effect

Closer to Zero Low Significant Not a variable

Closer to Zero High Insignificant Variable in effect at lower level

79
 Closer to One Zero Highly significant Variable in effect

Closer to One Low Significant Variable in effect Encouraging

factor

Closer to One High Insignificant Variable not effect

Closer to Two Zero Highly significant Variable effect at high level

Encouraging factor

Closer to Two Low Significant Variable effect

Essential factor

Closer to Two High Insignificant Variable effect

Source: Compiled by the writer

3.13 Chapter Summary

This chapter identified mixed research methodology for carrying out the study. Then,
attempts wre made to develop the research problem, how primary data are collected, and the
type of secondary data used, how data are presented and analyzed, how the results are
interpreted, and how recommendations are made in light of the results. The chapter finishes
with information on the degree of correctness of the findings, the level of reliability of the
samples, the validity of the suggestions, etc., in addition to the methodology used in the
research process.

CHAPTER 4 - EMPIRICAL DATA PRESENTATION & ANALYSIS

80
4.1 Introduction
This chapter presents the data and information collected from corporate level construction
professionals about their management competencies and opinions of construction
professionals’ practical ability of using their management competencies through giving the
questionnaire developed based on the variables of the model, such as core, cross functional.
Accordingly, the collected data are summarized, and they are presented in the chapter
through 26 tables.

4.2 Views of Construction Professionals

Table 4.1
Views on the impact of communication competency of construction professionals towards
organizational success

Communication

Status Responses and

%

Strongly agreed 15 53.6

Agreed to some extent 9 32.1

Neutral 0 0.0

Cannot agree 3 10.7

Cannot agree at all 1 3.6

Total 28 100.0

Source: Compiled by the writer

According to Table 4.1, 53.6% of sample has indicated that, they strongly agree to the fact
that the communication competencies of construction professionals has high impact on
organizational success indicating that 53.6% strongly agreed of that while telling 32.1% of
sample has indicated that, they agree to the some extent of the fact that communication

81
competencies of construction professionals has an impact on organizational success. 10.7%
of the sample has indicated that they cannot agree with the fact that communication
competencies of construction professionals have an impact on organizational success. Finally,
1% of samples have indicated that they cannot agree at all with the fact that communication
competencies of construction professionals has no impact on organizational success.

Table 4.2
Views on the impact of HR skills and competencies of construction professionals towards
organizational success.

HR Skills and Competencies

Status Responses and

%

Strongly agreed 19 67.9

Agreed to some extent 6 21.4

Neutral 0 0.0

Cannot agree 3 10.7

Cannot agree at all 0 0.0

Total 28 100.0

Source: Compiled by the writer

According to Table 4.2, 67.9% of sample has indicated that, they strongly agree to the fact
that HR skills and competencies of construction professionals has an impact on
organizational success. 21.4% of sample has indicated that, they agree to some extent to the
fact that HR skills and competencies of construction professionals has an impact on
organizational success. 10.7% of the sample cannot agree while everybody, as a whole
believing that some effect is there from the fact that HR skills and competencies of
construction professionals has no impact on organizational success.

82
Table 4.3
Views on the impact of Analytical thinking competencies of construction professionals
towards organizational success.

Analytical Thinking

Status Responses and %

Strongly agreed 7 25.0

Agreed to some extent 14 50.0

Neutral 0 0.0
Source:
Cannot agree 7 25.0

Cannot agree at all 0 0.0

Total 28 100.0

Compiled by the writer

According to Table 4.3, 25% of the sample has indicated that they strongly agree while 50 %
agreed to some extent to the fact that analytical thinking competencies of construction
professionals has an impact on organizational success. 25% of sample has indicated that, they
cannot agree with the fact that Analytical thinking competencies of construction professionals
has an impact on organizational success.

Table 4.4

83
Views on the impact of Leadership competencies of construction professionals towards
organizational success.

Leadership

Status Responses and %

Strongly agreed 20 71.4

Agreed to some extent 6 21.4

Neutral 0 0.0

Cannot agree 2 7.1

Cannot agree at all 0 0.0

Total 28 100.0

Source: Compiled by the writer

According to Table 4.4, 71.4% of sample has indicated that, they strongly agree to the fact
that Leadership competencies of construction professionals have an impact on organizational
success. 21.4% of sample has indicated that, they agree to some extent to the fact that
Leadership competencies of construction professionals has an impact on organizational
success. 7.1% of sample has indicated that, they do not agree to the fact that Leadership
competencies of construction professionals have no impact on organizational success.

Table 4.5
Views on the impact of Knowledge Sharing competencies of construction professionals
towards organizational success.

Knowledge Sharing

Status Responses and

84
 %

Strongly agreed 6 21.4

Agreed to some extent 12 42.9

Neutral 0 0.0

Cannot agree 6 21.4

Cannot agree at all 3 10.7

Total 28 100.0

Source: Compiled by the writer

According to Table 4.5, 21.4% of sample has indicated that, they strongly agree to the fact
that Knowledge sharing competencies of construction professionals has an impact on
organizational success. 42.9% of sample has indicated that, they agree to some extent to the
fact that Knowledge sharing competencies of construction professionals has an impact on
organizational success. 21.4% of sample has indicated that, they cannot agree to the fact that
Knowledge sharing competencies of construction professionals has an impact on
organizational success. 10.7% of sample has indicated that, they cannot agree at all to the fact
that Knowledge Sharing competencies of construction professionals has no impact on
organizational success.

Table 4.6
Views on the impact of creating mutual understanding competencies of construction
professionals towards organizational success.

Creating mutual understanding

Responses and
Status
%

Strongly agreed 10 35.7

85
 Agreed to some extent 10 35.7

Neutral 0 0.0

Cannot agree 6 21.4

Cannot agree at all 2 7.1

Total 28 100.0

Source: Compiled by the writer

According to Table 4.6, 35.7% of the sample has indicated that, they strongly agree to the
fact that creating mutual understanding competencies of construction professionals has an
impact on organizational success. 35.7% of sample has indicated that, they agree to some
extent to the fact that creating mutual understanding competencies of construction
professionals has an impact on organizational success. 21.4% of sample has indicated that,
they cannot not agree to the fact that creating mutual understanding competencies of
construction professionals has an impact on organizational success. 7.1% of sample has
indicated that, they cannot agree not at all to the fact that creating mutual understanding
competencies of construction professionals has no impact on organizational success.

Table 4.7
Views on the impact of Team building competencies of construction professionals towards
organizational success.

86
 Team building

Status Responses and %

Strongly agreed 6 21.4

Agreed to some extent 12 42.9

Neutral 0 0.0

Cannot agree 6 21.4

Cannot agree at all 3 10.7

Total 28 100.0

Source: Compiled by the writer

According to Table 4.7, 21.4% of sample has indicated that, they strongly agree to the fact
that Team building competencies of construction professionals has an impact on
organizational success. 42.29% of sample has indicated that, they agree to some extent to the
fact that Team building competencies of construction professionals has an impact on
organizational success. 21.4% of sample has indicated that, they cannot not agree to the fact
that Team building competencies of construction professionals has an impact on
organizational success. 10.7% of sample has indicated that, they cannot agree at all to the fact
that Team building competencies of construction professionals has no impact on
organizational success.

87
Table 4.8
Views on the impact of Clear goal setting competencies of construction professionals towards
organizational success.

Clear goal setting

Status Responses and %

Strongly agreed 8 28.6

Agreed to some extent 12 42.9

Neutral 0 0.0

Cannot agree 8 28.6

Cannot agree at all 0 0.0

Total 28 100.0

Source: Compiled by the writer

According to Table 4.8, 28.6% of sample has indicated that, they strongly agree to the fact
that Clear goal setting competencies of construction professionals has an impact on
organizational success. 42.29% of sample has indicated that, they agree to some extent with
the fact that Clear goal setting competencies of construction professionals has an impact on
organizational success. 28.6% of sample has indicated that, they cannot agree with the fact
that Clear goal setting competencies of construction professionals has an impact on
organizational success.

88
Table 4.9
Views on the impact of Project management competencies of construction professionals
towards organizational success.

Project management

Status Responses and %

Strongly agreed 24 85.7

Agreed to some extent 4 14.3

Neutral 0 0.0

Cannot agree 0 0.0

Cannot agree at all 0 0.0

Total 28 100.0

Source: Compiled by the writer

According to Table 4.9, 85.7% of the sample has indicated that, they strongly agree to fact
that Project management competencies of construction professionals has an impact on
organizational success.14.3% of sample has indicated that, they agree to some extent the fact
that Project management competencies of construction professionals has an impact on
organizational success.

Table 4.10

89
Views on the impact of Decision-making competencies of construction professionals towards
organizational success.

Impact of Decision making

Status Responses and %

Strongly agreed 14 50.0

Agreed to some extent 14 50.0

Neutral 0 0.0

Cannot agree 0 0.0

Cannot agree at all 0 0.0

Total 28 100.0

Source: Compiled by the writer

According to Table 4.10, 50% of sample has indicated that, they strongly agree to the fact
that Decision making competencies of construction professionals has an impact on
organizational success. 50% of sample has indicated that, they agree to some extent to the
fact that Decision making competencies of construction professionals has an impact on
organizational success.

Table 4.11
Views on the impact of supervising competencies of construction professionals towards
organizational success.

Supervising

Status Responses and

%

Strongly agreed 10 35.7

Agreed to some extent 9 32.1

90
 Neutral 0 0.0

Cannot agree 5 17.9

Cannot agree at all 4 14.3

Total 28 100.0

Source: Compiled by the writer

According to Table 4.11; 35.7% of sample has indicated that, they strongly agree to the fact
that supervising competencies of construction professionals has an impact on organizational
success. 32.1% of sample has indicated that, they agree to some extent to the fact that
supervising competencies of construction professionals has an impact on organizational
success. 17.9% of sample has indicated that, they cannot agree to the fact that supervising
competencies of construction professionals has no impact on organizational success. 14.3%
of samples indicated that they cannot agree at all to the fact that supervising competencies of
construction professionals has no impact on organizational success.

Table 4.12
Views on the impact of technical analysis competencies of construction professionals towards
organizational success.

Technical analysis

Status Responses and %

Strongly agreed 13 46.4

91
 Agreed to some extent 9 32.1

Neutral 0 0.0

Cannot agree 5 17.9

Cannot agree at all 1 3.6

Total 28 100.0

Source: Compiled by the writer

According to Table 4.12, 46.4% of sample has indicated that, they strongly agree to the fact
that technical analysis competencies of construction professionals has an impact on
organizational success. 32.1% of sample has indicated that, they agree to some extent to the
fact that technical analysis competencies of construction professionals have an impact on
organizational success. 17.9% of sample has indicated that, they cannot agree to the fact that
technical analysis competencies of construction professionals have no impact on
organizational success. 3.6 % of sample has indicated that, they cannot agree at all to the fact
that technical analysis competencies of construction professionals has no impact on
organizational success.

Table 4.13

92
Views on the impact of Conflict resolution competencies of construction professionals
towards organizational success.

Conflict Resolution

Status Responses and %

Strongly agreed 4 14.3

Agreed to some extent 12 42.9

Neutral 0 0.0

Cannot agree 5 17.9

Cannot agree at all 7 25.0

Total 28 100.0

Source: Compiled by the writer

According to Table 4.13; 14.3% of sample has indicated that, they strongly agree to the fact
that Conflict resolution competencies of construction professionals have an impact on
organizational success. 42.9% of sample has indicated that, they agree to some extent to the
fact that Conflict resolution competencies of construction professionals have an impact on
organizational success. 17.9% of sample has indicated that, they cannot agree to the fact that
Conflict resolution competencies of construction professionals have no impact on
organizational success. 25 % of sample has indicated that, they cannot agree at all to the fact
that Conflict resolution competencies of construction professionals have no impact on
organizational success.

93
Table 4.14
Views on the impact of Problem-solving competencies of construction professionals towards
organizational success.

Problem Solving

Status Responses and %

Strongly agreed 8 28.6

Agreed to some extent 16 57.1

Neutral 0 0.0

Cannot agree 3 10.7

Cannot agree at all 1 3.6

Total 28 100.0

Source: Compiled by the writer

According to Table 4.14, 28.6 % of the sample has indicated that, they strongly agree to the
fact that Problem solving competencies of construction professionals has an impact on
organizational success. 57.1% of sample has indicated that, they agree to some extent to the
fact that Problem solving competencies of construction professionals have an impact on
organizational success. 10.7% of sample has indicated that, they cannot agree to the fact that
Problem solving competencies of construction professionals has no impact on organizational
success. 3.6 % of sample has indicated that, they cannot agree at all to the fact that Problem
solving competencies of construction professionals has no impact on organizational success.

94
Table 4.15
Views on the impact of Negotiation competencies of construction professionals towards
organizational success.

Negotiation

Status Responses and %

Strongly agreed 6 21.4

Agreed to some extent 18 64.3

Neutral 0 0.0

Cannot agree 4 14.3

Cannot agree at all 0 0.0

Total 28 100.0

Source: Compiled by the writer

According to Table 4.15, 21.4 % of sample has indicated that, they strongly agree to the fact
that negotiation competencies of construction professionals have an impact on organizational
success. 64.3 of sample has indicated that, they agree to the some extent to the fact that
negotiation competencies of construction professionals has an impact on organizational
success 14.3% of sample has indicated that, they cannot agree to the fact that negotiation
competencies of construction professionals has no impact on organizational success.

95
Table 4.16
Views on the impact of Prediction competencies of construction professionals towards
organizational success.

Prediction

Status Responses and %

Strongly agreed 6 21.4

Agreed to some extent 9 32.1

Neutral 0 0.0

Cannot agree 6 21.4

Cannot agree at all 7 25.0

Total 28 100.0

Source: Compiled by the writer

According to Table 4.16, 21.4% of sample has indicated that, they strongly agree to the fact
that Prediction competencies of construction professionals have an impact on organizational
success. 32.1% of sample has indicated that, they agree to some extent with the fact that
Prediction competencies of construction professionals have an impact on organizational
success 21.4% of sample has indicated that, they cannot agree to the fact that Prediction
competencies of construction professionals have no impact on organizational success. 25% of
sample have indicated that, they cannot agree at all to the fact that Prediction of competencies
of construction professionals have no impact on organizational success.

Table 4.17
Views on the impact of Prevention competencies of construction professionals towards
organizational success.

Prevention

Status Responses and

96
 %

Strongly agreed 10 35.7

Agreed to some extent 8 28.6

Neutral 0 0.0

Cannot agree 6 21.4

Cannot agree at all 4 14.3

Total 28 100.0

Source: Compiled by the writer

According to Table 4.17, 35.7% of sample has indicated that, they strongly agree to the fact
that Prevention competencies of construction professionals have an impact on organizational
success. 28.6% of sample has indicated that, they agree to some extent to the fact that
Prevention competencies of construction professionals have an impact on organizational
success. 21.4% of sample has indicated that, they cannot agree to the fact that Prevention
competencies of construction professionals have no impact on organizational success. 14.3%
of sample has indicated that, they cannot agree at all to the fact that Prevention competencies
of construction professionals have no impact on organizational success

Table 4.18
Views on the impact of planning competencies of construction professionals towards
organizational success.

Planning

Status Responses and %

Strongly agreed 20 71.4

Agreed to some extent 8 28.6

97
 Neutral 0 0.0

Cannot agree 0 0.0

Cannot agree at all 0 0.0

Total 28 100.0

Source: Compiled by the writer

According to Table 4.18, 71.4% of sample has indicated that, they strongly agree to the fact
that planning competencies of construction professionals have an impact on organizational
success. 28.6% of sample has indicated that, they agree to some extent to the fact that
planning competencies of construction professionals have an impact on organizational
success.

Table 4.19
Views on the impact of Participation competencies of construction professionals towards
organizational success.

Participation

Status Responses and %

Strongly agreed 7 25.0

Agreed to some extent 14 50.0

Neutral 0 0.0

Cannot agree 4 14.3

Cannot agree at all 3 10.7

Total 28 100.0

Source: Compiled by the writer

According to Table 4.19, 25% of sample has indicated that, they strongly agree to the fact
that Participation competencies of construction professionals have an impact on

98
organizational success. 50% of sample has indicated that, they agree to some extent to the
fact that Participation competencies of construction professionals have an impact on
organizational success. 14.3% of sample has indicated that, they cannot agree to the fact that
Participation competencies of construction professionals have no impact on organizational
success. 10.7% of sample has indicated that, they cannot agree at all to the fact that
Participation competencies of construction professionals have no impact on organizational
success.

Table 4.20
Views on the impact of Performance competencies of construction professionals towards
organizational success.

Performance

Status Responses and %

Strongly agreed 14 50.0

Agreed to some extent 14 50.0

Neutral 0 0.0

Cannot agree 0 14.3

Cannot agree at all 0 10.7

Total 28 100.0

Source: Compiled by the writer

According to Table 4.20, 50% of sample has indicated that, they strongly agree to the fact
that Performance competencies of construction professionals have an impact on
organizational success. 50% of sample has indicated that, they agree to some extent to the
fact that Performance competencies of construction professionals have an impact on
organizational success.

99
4.3 Analysis

4.3.1 Analysis of Empirical Findings

For this study, empirical data are collected using five-point Likert scales. Accordingly, scale
was given as high positive effect (2), moderate effect (1), null effect (0), negative effect (-1)
and highly negative effect (-2) along on the scale and the scale is shown below.

-2 -1 0 1 2

2 High positive effect

1 Moderately positive effect

0 Null effects

-1 Negative effect

-2 High negative effect

The arithmetic mean (x bar) of the views of respondents was used as the “score” for each
indicator and the standard deviation (SD) of each score was used to check the variability of
factors (indicators) that have been affected in each situation.
Variable effect (whether the given variable significant or not, was assessed in terms of
statistical criteria as shown in the methodology chapter (Chapter 03).
Accordingly, smaller the standard deviation value considered as larger the effect of views of
which statistically known as “significant”.
The larger the standard deviation value, considered as, smaller the effect of such views of
which statistically known as “insignificant”.

100
The above criterion was used to choose relevant factors in each case of the analysis which
given below.
Furthermore, it should be noted that this part of the chapter presents the results that were
obtained through the empirical survey which are used to test the hypothesis. The analytical
tables for each core variable of the Competencies are given below.

4.3.2 Analysis of Core Competencies Indicators

Table 4. 21
Part 1 - Core Competencies

Likert
Level of
Factor Influencing Score S/D Degree of Influence
Significance
Mean

Views on the impact of 1.8 13.8 Variable influenced Significant

communication competency of to increase success up
construction professionals to some extent
towards organizational success

Views on the impact of HR 8.2 17 Variable highly Significant

skills and competencies of influenced to
construction professionals increase success
Towards organizational success

Views on the impact of 4.2 9.4 Variable highly Significant

Analytical thinking influenced to
competencies of construction increase success
professionals
Towards organizational success.

Views on the impact of 8.8 17.7 Variable highly Significant

Leadership competencies of influenced to
construction professionals increase success

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 Towards organizational success.

Likert Mean = 5.7

Source: Compiled by the writer

Views of Corporate Level Construction professionals indicate that communication

competencies of construction professionals have positive impact on organizational success.
According to the views of Construction professionals, indicate that the HR management
competencies also has been positively influenced to the Core competencies up to higher level.
Views of Corporate Level Construction professionals indicate that analytical thinking
competencies has been positively influenced up to higher extent to the Core competencies of
Construction professionals thereby could have been affected to increase Organizational
Success. According to the views of Corporate Level Construction professionals’ leadership
competencies have been positively impacted to the Core competencies up to a higher extent.

As per table 4.21, influences of all above factors were found significant since the standard
deviation is larger than one. Analysis of data in connection with the present research revealed
that four variables selected to analysis the Core competencies of Construction professionals
of Construction Industry i.e. Communication competency for communicate each other
relevant to the organization, HR skills and competencies which is related to the manage and
get the works very efficiently, Analytical thinking to plan and other day today duty to do
properly without delay, and Leadership competency for guide subordinate and to be a model
to them to improve performance of the team were found significant as the Mean (x-) is larger
than zero
Further, the mean values indicate that impact of communication competency, HR skills and
competencies, Analytical thinking, Leadership all which are attributes of core competencies
were found positive. Therefore, conclude that these variables have impacted the Core
competencies and consequently the job success of Construction professionals. However, the
mean values indicate the impact of research indicators showing larger mean value than zero.
Since the present Competencies of the Construction professionals have positively influenced
success, generally increase the Organizational Success.
Since, the theory state that the larger the standard deviation the more variance in the results.
Data points in a normal distribution are more likely to fall closer to the mean. In fact, 68% of

102
all data points will be within ±1standard deviation from the mean, 95% of all data points will
be within + 2standard deviation from the mean, and 99% of all data points will be within
±3standard deviation.
Statisticians have determined that values no greater than plus or minus 2 standard deviation
represent measurements that are closer to the true value than those that fall in the area greater
than ± 2standard deviation. Thus, analytical result shows most of the standard deviation
relation to the core competencies are found to be within the 2standard deviation and hence,
results are reliable.
Therefore, First Hypothesis ‘The Better the Core Competencies of construction
professionals larger the expected level of Success of the Construction Organization’ is
accepted.

4.3.3 Analysis of Cross Functional Competencies

Table 4. 22
Analysis of Cross Functional Competencies

Likert
Level of
Factor Influencing Score S/D Degree of Influence
Significance
Mean

Views on the impact of

Variable influenced
Knowledge Sharing competencies
1.8 7.2 to increase success of Significant
of construction professionals
the Organization
towards organizational success.

Views on the impact of creating

Variable largely
mutual understanding
influenced to
competencies of construction 4 10.9 Significant
increase success of
professionals towards
the Organization
organizational success.

Views on the impact of Team 2.4 9.1 Variable influenced Significant

building competencies of to increase success of

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 construction professionals
the Organization
towards organizational success.

Views on the impact of Clear Variable largely

goal setting competencies of influenced to
4 9.8 Significant
construction professionals increase success of
towards organizational success. the Organization

Likert Mean = 3.05

Source: Compiled by the writer

Views of Corporate Level Construction professionals indicate that Knowledge sharing

competencies of construction professionals has positive impact on organizational success.
As according to the views of Construction professionals, indicate that creating mutual
understanding, competencies also has been positively influenced to the Cross functional
competencies up to level of some extent. Views of Corporate Level Construction
professionals indicate that Team building, competencies has been positively influenced up to
higher extent to the Cross functional competencies of Construction professionals thereby
could have been impacted to increase Organizational Success. According to the views of
Corporate Level Construction professionals clear goal setting competencies have been
positively impacted to the Cross functional competencies up to a higher extent.

As per table 4.22, influences of all above factors were found significant since the standard
deviation is larger than one. Analysis of data in connection with the present research revealed
that four variables selected to analysis the Cross functional competencies of Construction
professionals of Construction Industry i.e. Knowledge Sharing that is very important to
upgrade subordinates who work under the construction professionals, creating mutual
understanding also vital factor for the construction professionals who work among the
various personal belong to various cultures. Team building is another special factor for the
constructional professional because any difficulty task can be complete with cooperation of
the team, Clear goal setting is specific attribute of cross functional competency that help to
complete any task with less errors or faults were found significant as the Mean (x -) is larger
than zero.

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 Further, the mean values indicate that impact of 5. Knowledge sharing competency, creating
mutual understanding, Team building, clear goal setting which are attributes of cross
competencies were found positive. Therefore, conclude that these variables have impacted
the Cross functional competencies and consequently the job success of Construction
professionals. However, the mean values indicate the impact of research indicators relation to
the second hypothesis. Since the present Competencies of the Construction professionals
have positively influenced success, generally increase the Organizational Success.
The theory states that the larger the SD the more variance in the results. Data points in a
normal distribution are more likely to fall closer to the mean. In fact, 68% of all data points
will be within ±1SD from the mean, 95% of all data points will be within + 2SD from the
mean, and 99% of all data points will be within ±3SD.
Statisticians have determined that values no greater than plus or minus 2 SD represent
measurements that are closer to the true value than those that fall in the area greater than ±
2SD. Thus, analytical result shows most of the SD relation to the core competencies are
found to be within the 2SD and hence, results are reliable.
Accordingly, Second Hypothesis ‘The Better the Cross Functional Competencies of
construction professionals larger the expected level of Success of the Construction
organization’ is accepted.
Table 4. 23
Part 3 - Analysis of Functional Competencies

Likert
Degree of Level of
Factor Influencing Score S/D
Influence Significance
Mean

Views on the impact of Project Variable effect at highly

management competencies of construction high level Significant
10.4 21.1
professionals towards organizational Encouraging
succes5.6s. factor

Views on the impact of Decision making Variable effect at highly

competencies of construction professionals high level Significant
8.4 12.5
towards organizational success. Encouraging
factor n

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Views on the impact of supervising Significant
competencies of construction professionals 3.2 11.4 Variable in effect
towards organizational success.

Views on the impact of Technical analysis Variable in effect Significant

competencies of construction professionals 5.6 12.5 Encouraging
towards organizational success. factor

Views on the impact of Conflict resolution Significant

Variable in effect
competencies of construction professionals 0.2 10.4
at lower level
towards organizational success.

Views on the impact of Problem solving Variable in effect Significant

competencies of construction professionals 5.4 9.7 Encouraging
towards organizational success. factor

Views on the impact of Negotiation Variable in effect Significant

competencies of construction professionals 5.2 9.3 Encouraging
towards organizational success. factor

Likert Mean = 5.5

Source: Compiled by the writer

Views of Corporate Level Construction professionals indicate that the Project management
competencies of construction professionals have positive impact on organizational success.
The views of Construction professionals indicate that the Decision making, competencies
also has been positively influenced to the functional competencies up to level of some extent.
Views of Corporate Level Construction professionals indicate that Supervising, competencies
has been positively influenced up to higher extent to the functional competencies of
Construction professionals thereby these competencies have impacted increasing
Organizational Success. According to the views of Corporate Level Construction
professionals on technical analysis was about 50%. Conflict resolution competencies of
construction professionals have positive impact on organizational success. As according to
the views of Construction professionals, indicate that the Conflict resolution, competencies
also has been positively influenced to the functional competencies up to some extent. Views

106
of Corporate Level Construction professionals indicate that Problem solving, competencies
has been positively influenced up to higher extent to the functional competencies of
Construction professionals thereby they can have a clear impact to increase Organizational
Success. According to the views of Corporate Level Construction professionals, they have
clear Negotiation Competencies and have positively impacted the functional competencies up
to higher extent.
As per table 4.23 impacts of all above factors were found significant since the mean values
are larger than one. Analysis of data in connection with the present research revealed that
seven variables selected to analyze the functional competencies of Construction professionals
of the Construction Industry i.e. Project management always challenging competency,
Decision making depend upon person to person experience and knowledge, supervising roles
should have getting work done by others capability, technical analysis improves of logically
thinking and correct decision making ability, conflict resolution manage people and make
team unity, problem solving always help to improve harmony among the team, negotiation
always share and contribute ideas and make selection most appropriate were found significant
as the Mean (x-) is larger than zero.
Further, the mean values indicate that impact of seven attributes of functional competencies.
They all are significant and hence, functional competencies were found positive. Therefore,
conclude that these variables have impacted the functional competencies and consequently
the job success of Construction professionals is higher. However, the mean values indicate
the impact of research indicators relation to the third hypothesis. Since the present
Competencies of the Construction professionals have positively influenced the success, and
hence, generally increase the Organizational Success. Further, analytical result shows that
most of the SD values to the functional competencies are found to be within the 2SD and
hence, results are reliable.
Accordingly, Third Hypothsis ‘The Better the Functional Competencies of construction
professionals, the larger the expected level of Success of the Construction organization’ is
accepted.

4.3.4 Analysis of Proactive Competencies

Table 4. 24
Part 4 - Proactive Competencies

Factor Influencing Likert Score S/D Degree of Level of

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 Mean Influence Significance

Views on the impact of Prediction

Variable in
competencies of construction
effect at lower Significant
professionals towards organizational 0.2 10.7
level
success

Views on the impact of Prediction

Variable in
competencies of construction 2.8 11.5
effect at lower Significant
professionals towards organizational
level
success.

Views on the impact of planning

Variable in
competencies of construction Highly
effect at higher
professionals towards organizational 9.6 17.3 Significant
level
success.

Views on the impact of Participation

Variable in
competencies of construction
effect at lower Significant
professionals towards organizational 3.6 9.7
level
success.

Vies on the impact of Performance

Variable in
competencies of construction Highly
effect at higher
professionals towards organizational 8.4 12.5 Significant
level
success.

Likert Mean = 4.9

As shown by table 4.24 all the variables impacted proactive competencies are significant and
therefore the views of Corporate Level Construction professionals indicate that Prediction
Competencies of construction professionals has positive impact on organizational success.
According to the views of Construction professionals, indicate that the Prevention
Competencies also has been positively influenced to the proactive competencies up to higher
level. Views of Corporate Level Construction professionals indicate that Planning
Competencies have been positively influenced up to higher extent to the proactive
competencies of Construction professionals thereby could have been affected to increase

108
Organizational Success. According to the views of Corporate Level Construction
Professionals Participation competencies have been positively impacted to the proactive
competencies up to a higher extent.
As per table 4.24, influences of all above factors were found significant since the standard
deviation is larger than one. Analysis of data in connection with the present research revealed
that four variables selected to analysis the proactive competencies of Construction
professionals of Construction Industry i.e. were found significant as the Mean (x -) is larger
than zero Further, the mean values indicate that impact of Prediction, Prevention, Planning,
Participation, Performance all which are attributes of proactive competencies were found
positive. Therefore, conclude that these variables have impacted the proactive competencies
and consequently the job success of Construction professionals. However, the mean values
indicate the impact of research indicators showing larger mean value than zero. Since the
present Competencies of the Construction professionals have positively influenced the
success, generally increase the Organizational Success.
Since, the theory state that the larger the standard deviation the more variance in the results.
Data points in a normal distribution are more likely to fall closer to the mean. In fact, 68% of
all data points will be within ±1standard deviation from the mean, 95% of all data points will
be within + 2standard deviation from the mean, and 99% of all data points will be within ±
3standard deviation.
Statisticians have determined that values no greater than plus or minus 2 standard deviation
represent measurements that are closer to the true value than those that fall in the area greater
than ± 2standard deviation. Thus, analytical result shows most of the standard deviation
relation to the core competencies are found to be within the 2standard deviation and hence,
results are reliable.
Accordingly, Fourth Hypothesis ‘Better the pro-active competencies of construction
managers, quicker is the completion of building projects” is accepted.
The greater the projected level of success of the construction project, the more competent the
construction specialists are. H1: The expectation of success for construction organizations
increases with better core competencies. H2; Greater cross-functional abilities lead to higher
levels of performance for construction firms, which reduces costs and increases efficiency
overall, since the team works cooporatively.H3: The success of construction companies
increases with better functional competencies, which leads to increased performance and
client trust. H4: The success of construction organizations increases with pro-active
competences, which leads to client dependability and higher performance.
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4.4 Summary
This chapter presented the data and information collected from corporate level construction
professionals about their management competencies and opinions of construction
professionals’ practical ability of using their management competencies through
administering the questionnaire developed based on the variables of the model, such as core,
cross functional. Accordingly, the collected data were summarized, and they were presented
in the chapter through tables.

CHAPTER 5 - CONCLUSION AND RECCOMANDATION

5.1 Introduction

This, as the final chapter of the study recount, first, gives the overall summary of the study
revealing the entire background of the research to form its research problem, questions,
objectives, hypotheses and other steps involved with the study. Then, the chapter gives the
study conclusion based on the results of the hypotheses testing. Next, it presents
recommendations for policy makers to consider when forming their future policies for

110
developing the construction industry in Sri Lanka along with the areas identified to be
considered by future researchers. The chapter ends with giving a summary for the chapter.

5.2 Overall Summary of the Study

The construction sector is a subcategory comes under industrial sector of the economy. The
size of the industrial sector is about 8% of the country’s GDP and relative to the industrial
sector its size is about 28%. These figures show its significance to the economy. COVID-19
pandemic and its aftermaths and subsequently pronounced status of bankruptcy have severely
affected construction industry by reducing its GDP ratio from 8-10% in 2019 to 6.2% by
2022 and is now along with ensuing economic crises has projected to achieve little more than
5% during 2024-2027. Besides, when construction industry is taken, irrespective of a
country’s degree of development, in almost all countries this industry has become retarded
and an expensive industry mainly due to a number of reasons such as shortages of human
resources and building materials. These shortages particularly, human resources are more
pronounced in countries like Britain, Australia, South Africa and even in India.
In this regard when Sri Lanka is concerned, particularly under the 1977 economic reforms
and later with post-war-expansion more pressure emerged to increase investments in
building industry along with needing more manpower on account of heavy investments on
large scale capital projects such as massive irrigation projects, high-rise buildings, expansion
of airports, ports, roads, highways, land reclamation, water and sanitation sectors (Silva et al.,
2016a). As a result, the construction subsector has recorded an impressive growth until 2019.
In the peak time of the expansion of the industry exceeding 1.5 million persons were
employed in this industry giving more pressure shortage of skilled and professional
workforce forcing building contractors to dig into labor pools of other contractors by offering
more pay to workers, luring them to switch construction sites (Surath Wickramasinghe,
president). In this background, even permissions are sought for obtaining Chinese and Indian
workers for sustaining the industry (The Island, May 25th, 2016). Apart from these
unexpected scarcities of materials and natural disasters too cause delays in construction work.
The scarcity of labour has led to increase labour charges too. Thus, in Sri Lanka, human
capital shortage has become not only a serious management issue but also a national issue
which is being frequently discussed at various industry forums also. Theses evidences show
that there is a lack of understanding and analysis of the phenomenon of skills shortages or
skills mismatch when labour with required skills are not available in the labour market. This

111
problem is not much serious in the case of obtaining unskilled labour for which since
machines can be substituted. But skills shortage is severe for more professional persons such
as engineers, architectures, planners, plumbers, electricians and so on.
Further, this scarcity of worker problem is aggravated on account of having a lesser
productivity among employees mainly on account of several reasons such as following time-
based payment system, employees’ lethargic work culture and failure of management levels
to get more work from employees. Moreover, in addition to scarcity of human resources, the
industry is facing a multitude of problems such as rising material costs, payment delays,
difficulty in importing goods, suspended government projects, increased interest rates and
natural disasters.

Further, the current construction industry is with the practice of wide use of natural resources,
energy, land, soils, water resources polluting environment and not taking sufficient measures
to mitigate them. As a result, now many are talking of introducing a sustainable construction
industry worldwide aiming to minimize natural resource consumption to protect ecological
system for future generations as well. Thus, it has become a hot topic to be discussed in
recent international conference on Real Estate Management and Valuation against the
traditional construction practices of extensive use of natural resources and waste. (Hussin et
al., 2013).
Considering these constraints, the researcher of this study goes a further step ahead by
introducing another concept new to the Sri Lankan industrial sector including construction
industry too. That is increasing total factor productivity rather than increasing partial factor
productivity or just worker productivity. This concept was introduced by Krugman (1994)
and promoted by later economists who tried to define what is meant by TFP and ways and
means of increasing TFP for entire economies or sectors or industries (Oguchi and Hoshino,
2001).
Another aspect related to productivity is quality. Productivity can be increased if output is
just increased without paying due attention to the quality of not only input, but also
production process and output. Therefore, attention should be paid to ensuring quality at
almost all the steps of production process too. The weakness of not considering the quality of
construction industry has been recently reported not only in developing countries like Sri
Lanka, etc. but also in developed countries such as Australia and New Zealand.
The development of the Sri Lankan construction industry has closely followed the economic
changes during the past decades like many other countries. In this background, the

112
government’s role too has changed from being an investor to acting as a facilitator. Along
with these changes, particularly after introducing 1977 economic reforms the private sector
became the engine of the growth (Patabendige, 2006) and thus, in the construction industry
too, the private sector led construction demand is predicted to predominate in the future with
increasing involvement of expatriate contractors over that of the traditional contractors.
Meanwhile, forecasted economic growth, increasing urbanization trends and getting more and
more foreign loans create a healthy demand for construction.
The construction firms are under pressure to change their business strategy to meet future
demand conditions, particularly to accommodate technological changes and the changing
nature of the project delivery process. The analysis of the supply side characteristics of the
Sri Lankan construction industry reveals that the nature of underdeveloped construction
industry framework and the new project culture will pose many constraints that originate
locally due to financial, technological and management deficiencies of the local firms. Hence,
development measures are needed to meet the challenges to benefit from new development in
the construction industry. Institutional reforms and capacity building and the legislative
measures for regulating construction industry activities and motivation of local contracting
community to effectively participate in the implementation of large-scale donor-funded and
private sector funded projects are priority areas of concern. The Sri Lankan government
shows a trend in the process of planning to introduce more competitive measures. In this
regard, particularly attention has paid to manpower training and skills development. This is
particularly important for providing the industry with more craftsmen, machine and tool
operators, and a competitive and adequate workforce to meet the new demand in the industry.
Also, facing to ease the scarcity of physical resources has become a big constraint and it leads
to find and use appropriate construction materials rather than making brick-built traditional
constructions which are more expensive and finding difficulties of obtaining the required
materials. The local building material sector has not geared itself to substitute the cheap and
low-cost synthetic materials as used by developed country constructors. The indigenous
supply material industries such as bricks, hard wood, tiles and sand are experiencing gradual
decline in production and availability. On the other hand, designers will continue to select
and specify items with high import content at the expense of spending scarce foreign
reserves. Thus, additional policy initiatives are required to assist the decline in availability of
natural and traditional materials and develop alternative local inputs. In this regard, allocating
more funds for Research and Development (R & D) is indispensable (Alweera, 2023).

113
There are delays in payments also. It has been estimated that the total overdue payments in
the road, buildings and waters supply sector are more than Rs 100 billion. Recently, with
facing economic crisis all state-sponsored government projects have now been suspended by
a gazette notification as an attempt to reduce its fiscal burden. Also, the dollar crisis has made
it near impossible to obtain required goods and materials. Due to these constraints according
to the Sri Lanka Chamber of Construction Industry (CCI), more than 100,000 will lose their
jobs. In this environment, it is necessary the revitalization of this important industry by
increasing building and construction infrastructure, human resources, and physical resources
in more sustainable ways with lesser costs. Thinking in this line, this study aims to evaluate
managerial competencies of construction industry professionals for stimulating the
construction industry.

5.3 Conclusion

Most of the construction projects are not up to expectations in terms of completion time,
quality, durability and cost effects. In this case, for construction projects to be successfully
completed they must have certain common areas of strengths such as financial, human capital
and management, and machinery equipment strengths and so on. Out of these strengths this
research is particularly trying to examine management capabilities of construction
professionals for project completion successfully. Accordingly, based on management
competencies such as core competencies, cross functional competencies, functional
competencies and proactive competencies, the study carried out to judge whether managers
can lead their employees and other resources for finishing building projects as expected by
investors through making four hypotheses and testing them collecting empirical evidence
related to different sub-objectives under each of core, cross functional, functional, and
proactive competencies, accordingly;
a. The core competency category includes such sub-competency areas as construction
professionals’ communication competencies, HRM competencies, analytical thinking
competencies, and leadership competencies were measured with making a hypothesis,
‘The better the core competencies of construction professionals higher is the expected
level of success of the construction projects’. Since all the sub-factors under core
competencies were found significant the hypothesis is accepted. As a result, the study
concludes that core competencies are important for construction professionals for

114
 successful completion of construction projects and existing construction professionals
are adequately possessing core competencies.
b. The cross functional competency category can include such sub-competency areas as
knowledge sharing competencies, mutual understanding competencies, team building
competencies and clear goal setting competencies and they were measured with
making a hypothesis, ‘The better the cross functional competencies of construction
professionals larger is the expected level of success of the construction projects’. Since
all the sub-factors under the cross functional competency were found significant the
hypothesis is accepted. As a result, the study concludes that cross-functional
competencies are important for construction professionals for successful completion of
construction projects and existing construction professionals are adequately possessing
cross functional competencies.
c. The functional competency category consists of such sub-competencies as project
management competencies, decision making competencies, supervisory competencies,
technical analysis competencies, conflict resolution competencies, problem solving
competencies, and negotiation competencies. They were measured with making a
hypothesis, ‘The better the functional competencies of construction professionals, the
larger is the expected level of success of the construction projects’. Since all the sub-
factors under the functional competencies were found significant the hypothesis is
accepted. As a result, the study concludes that functional competencies are important
for construction professionals for successful completion of construction projects and
existing construction professionals are adequately possessing functional competencies.

d. The proactive competency category comprises of such-sub competencies as prediction

competencies, planning competencies, participation competencies, and performing
competencies. They were measured with a making hypothesis, ‘The better the pro-
active competencies of construction managers, quicker is the completion of building
projects’. Since all the sub-factors under the proactive competencies were found
significant the hypothesis is accepted. As a result, the study concludes that proactive
competencies are important for construction professionals for successful completion of
construction projects and existing construction professionals are adequately possessing
proactive competencies.

115
Thus, as a whole the study concludes that construction projects in Sri Lanka are delayed and
not up to the expected requirements mainly because of other reasons such as delays of
obtaining building materials, poor quality of such materials and their price escalation,
payment delays, labour scarcities rather than construction professionals’ management
deficiencies.

5.4 Recommendations

 Steps should be taken to overcome the issue of labour scarcity found in the
construction industry.
 Supply of building materials should be eased and increased.
 More R & D effort should be directed for producing synthetic materials to be used for
reducing traditional, natural materials with the intention of protecting the environment
and sustainability.
 Attention should be made to understand total factor productivity rather than partial
factor productivity, especially in an environment of rapidly decreasing scarce
resources.

5.5 Further Research

 Future research should be directed to find alternative methods and materials to be

introduced for building industry like developed countries rather than using old, aged
methods which requires a larger volume of natural materials such as sands, stones, bricks,
cement and hard woods which are scarce and more expensive for obtaining and
constructing buildings using these materials make completion time consuming as well.

 Attempts must be made to introduce total factor productivity concept to construction

professionals for reducing management costs and make the construction industry more
efficient since this concept is new to many in Sri Lanka.

116
5.6 Chapter Summary

This final chapter first gave the overall summary of the study revealing the entire background
of the research to form its research problem, questions, objectives, hypotheses and other steps
involved with the study. Then, the chapter presented the study conclusion based on the results
of the hypotheses testing. Next, it presented recommendations for policy makers to consider
when forming their future policies for developing the construction industry in Sri Lanka
along with the areas identified to be considered by future researchers. Finally, the chapter
ended with giving this study summary.

117
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 Annexure 1

Questionnaire for collecting information for the research conducted on The

relationship of construction professionals' competencies with
organizational success in the construction sector in Sri Lanka.
Instructions: Tick the answers by marking ‘X’ in relevant box (Please consider that
information collected through this questionnaire is strictly used only for research purpose
and responses will be kept confidential).

Background

1. Your Designation
 General manager
 Project Manager
 Construction Manager
 Site Manager
 Engineer (Site Eng: Design Eng: Planning Eng:,Q A &QC Eng: etc.)
 Architect
 Quantity Surveyor
 Individual Consultant
 Other or add option

2. What is your age?

 20 - 29 years
 30 - 39 years
 40 - 49 years
 50 - 59 years
 60 - 69 years
 70 - 79 years

124
 3. What is your academic qualification?
 Diploma Level (NDT, HND, etc)
 Bachelor’s degree
 Post Graduate Diploma
 Master's Degree
 Doctorate/Ph.D.
 Other or add option

4. How is your industrial experience level in Sri Lankan construction industry?

 Undergraduates & Fresh Graduates (With Academic level training experience)
 0-5 years of experience
 5-10 years of experience
 10-15 years of experience
 15+ years of experience
 Other or add option

5. Professional background
 Affiliate Member
 Associate Member
 Corporate Member
 Fellow Member
 Other or add option

6. Do you agree that communication ability of construction professionals has an impact

on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

125
 Cannot agree -1

Cannot agree at all -2

7. Do you agree that skill/human resource ability of construction professionals has

an impact on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

8. Do you agree that critical thinking ability of construction professionals has an

impact on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

9. Do you agree that knowledge sharing and learning ability of construction

professionals has an impact on success of a construction organization?

Strongly agreed +2

126
 Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

10. Do you agree that creating mutual understanding ability of construction

professionals has an impact on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

11. Do you agree that project management ability of construction professionals has
an impact on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

127
12. Do you agree that Decision making ability of construction professionals has
an impact on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

13. Do you agree that clear goal setting ability of construction professionals has an
impact on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

14. Do you agree that conflict resolution ability of construction professionals has an
impact on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

128
 Cannot agree -1

Cannot agree at all -2

15. Do you agree that problem solving ability of construction professionals has an
impact on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

16. Do you agree that team building ability of construction professionals has an
impact on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

17. Do you agree that negotiation ability of construction professionals has an impact
on success of a construction organization?

129
 Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

18. Do you agree that supervising ability of construction professionals has an impact
on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

19. Do you agree that technical analysis ability of construction professionals has
an impact on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

130
 Cannot agree at all -2

20. Do you agree that predictability of construction professionals has an impact

on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

21. Do you agree that prevention ability of construction professionals has an impact
on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

22. Do you agree that planning ability of construction professionals has an impact
on success of a construction organization?

Strongly agreed +2

131
 Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

23. Do you agree that participation ability of construction professionals has an impact
on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

24. Do you agree that performance ability of construction professionals has an impact
on success of a construction organization?

Strongly agreed +2

Agreed to some extent +1

Neutral 0

Cannot agree -1

Cannot agree at all -2

132
____________________________________________________

133