Exploring the Fundamental Principles of Good Management Development Practice as Indices for Sustainable Construction Managers performance in Construction Firms: A Review

Abstract

This review paper evaluated the Construction Firms’ (CFs), Construction Managers’ Performance (CMsP) and Management Development (MD) literature by examining probable associations and correlations between the concepts of MD and construction managers’ performance. Literature review on CFs’, CMs’P, and MD was carried out and the emerging role of MD on CMs was assessed. The paper measured the rational and dynamics of both CMs’P, and MD. The focus of the study was to compare existing descriptive structure through cross-referencing and to conceptual literatures as well integrated both approaches. The study found that there were several aspects of the MD and CMs’P dominions that were mutually inclusive, specifically in the areas of training, development, learning and knowledge, and skills development. The paper concluded that the review concept represent a basis that in turn may enable the pursuit of methodological guidelines for the application and practice of MD in CFs.

Introduction

I. BACKGROUND TO THE STUDY

Construction firms (CF) constitute the sector of the economy that utilises various factors of production through effective use of sciences, technology, and management processes to produce infrastructure or provide services. Construction firms are significant to both individuals and corporate entities due to the constant demand for their products and their relationship with the world economy (Nakhon and Somjintan, 2012; Stacifawn, 2007). For instance, they globally contribute 6–9% (Kanyago, Shukla, & Kibachia, 2017) and nationally, 4.06–4.32% to the Gross Domestic Product (GDP) (Olubimbola, 2022; Okoye, 2016; Aniekwu, Igboanugo, & Onifade, 2015; National Bureau of Statistics, 2014). More significantly, they are used as instruments or yardsticks through which the good or ill health of the nations’ economies are measured and monitored (Innocent, 2019; Nakhon and Somjintan, 2012; Ibronke, 2003).

 However, the responsibility of accomplishment the foregoing significance largely associated with firms’ effective performance. Thus, the effective performance of construction firms has been described as the capability the firm to meet agreed requirements to contract arrangements such as cost, time allocated, quality required, and quantity estimated (Presetya, Natalia & Stella, 2020; Sevilay & Beliz, 2017). It involves the ability to accomplish accepted tasks or responsibilities within predetermined criteria (Emmanue, 2014). Therefore, effective CFs’ performance now received serious concern from both public and private sector clients (Okigbo, Saidu, Ola-awo & Adamu, 2020).  On the other hand, studies observed that most of the works agreed upon in the contract agreement could hardly be achieved as planned by the firms due to their low performance (Tagesse, 2017; Tadesse, Zakaria, Zoubeir, 2016; and Infrastructure Client Group, 2015). This shows that CFs are not adequately performing to the expectations of the clients that they serve (Olubimbola, 2022; Catalão, Cruz & Sarmento, 2021; Yap, Goay, Woon, Skitmore, 2021; Arantes & Ferreira, 2020; Tagesse, 2017; Infrastructure Client Group, 2015).

Similarly, the dismal performance of CFs in delivering construction contract within estimated requirements has been attributed to their labour-intensive nature (Iheme & Chiagorom, 2018; Ofori, 2015; Bamisile, 2004). Labour costs range from 30 to 40% of the total production cost of many construction projects (Zolkafli et al., 2010). Among the labours in the CFs’, construction managers are placed the most important labour because, they makes informed decisions needed for the CFs’ survival in the volatile and highly competitive markets (Ghada, 2021; Nassereddine, Schranz, Bou Hatoum & Urban, 2020; Osuizugbo, 2019) . Above mentioned makes construction firms’ activities more complicated to handle.

Due to the diversity and intricacy of the firm’s activities, the firms require experienced managers with adequate management knowledge and skills in addition to technical experience, which is also important to manage the complicated dimensions of the firm (Muhammad, Sheheryar, Muhammad, Sonia & Muhammad, 2021; Gitika, Pauline, Timothy, John & Brendan, 2017).

The foregoing background motivate management stakeholders in CFs to always search for new programme that can sustain construction managers’ competency for better performance (Smith, Johnson & Anderson, 2019; Hassan & Abdussalam, 2016). In search of new methods to enhance construction managers’ competency for better performance in CFs, this study observes that there exist several studies where literature has at various times advocated for the adaptation of good philosophies and innovative practises from other industries and professions into the construction industry (Adamu, 2019; Christopher, 2014). This attracted the study's attention to the management development (MD) programme.

Management Development (MD) is a prominent area of Human Resource Management (HRM) and a subset of Human Resource Development (HRD) (Cunningham, 2012; Fee, 2001). Various names are used to refer to MD, namely: executive or leadership development, management training, and management education (Victor, 2012; Burgoyne, Hirsh, and Williams, 2004). Management development has been defined as a programme through which managers in a firm advance their competency, attitude, and commitment to better performance at work (Catherine & Muathe, 2018). Additionally, it involves developing suitably qualified managers to take up core management duties, new tasks, and higher-level positions and also preparing managers for replacements in case of vacancies due to transfer, promotion, rotation, retirement, sickness, and other unforeseen issues (Rameshbabu, 2017; Armstrong, 2016); beyond these concepts, MD is designed  to achieve certain goal (s) within the work environment.

The purpose of MD is to create important changes in managers’ job requirements and aim to produce managers who are flexible and adaptable to changing circumstances (Thompson & Davis, 2019; Lerra & Oumer, 2017). For instance, the purpose of MD is to promote managers’ communication skills, decision-making ability, and motivation and nurture future leaders (Brown & Wilson, 2017). Likewise, it enhances managers’ interpersonal relationships and team commitment (Al Zeidi, 2016). Furthermore, MD supports manager administrative functions; for instance, it helps managers in developing organisations’ strategies, policy formulation processes, succession planning, and performance management, among others (Mostafa, Oluwaseun, & Aydin, 2020; CIPD, 2012; Adair, 2013; Archana, 2013). This makes the MD programme to possess unique feature of being a managerial and organisation-orientated programme (Chris, 2014; Cunningham, 2012). It is proactive, reactive, and futuristic in focus (Rameshbabu, 2017). These also result in various classifications of MD, namely formal and informal methods (IES, 2001), traditional passive and experiential techniques (Nusrat, Sandhya, and Fehmina, 2015), and on-the-job and off-the-job development (Farah, Wan-jamallah, & Norizah, 2015).

In contrast Ezeanokwasa (2014) asserted that a lack of efficient and effective MD practise will make managers' skills obsolete, cause managerial stagnation, create managerial plateauing, and result in 4I problems of inefficient, ineffective, incompetent, and inactive managers, which may lead to a potential challenge to firms' performance (Linet, 2017). It is against this backdrop that the research considered it pertinent to study the existing MD programme within the Nigerian CFs to facilitate the practise that could mitigate the prevailing dismal performance in the firms.

II. CONSTRUCTION FIRMS

Construction Firms are sector that utilised various factors of production to develop infrastructure through effective use of managerial, sciences, technology and management know-how to provide constructed products or deliver services (Awad, 2015). The firm aim to undertake and meet the national economic demand, social development objectives, and demand for physical infrastructure facilities within the built environment. It embraces all processes by which physical infrastructures are planned, designed, constructed, procured, maintained, and demolished (Isa, Jimoh, and Achuenu, 2013; Tanzania Ministry of Works, 2003).  Construction firms’ perform various form of construction work which makes the firms to significantly to social and economic development worldwide.

The firms are significant to both individuals and corporate entities due to the constant demand for their products, services and their relationship with the world economy (Nakhon & Somjintan, 2012; Stacifawn, 2007). For instance, they globally contribute 6–9% (Kanyago, Shukla, & Kibachia, 2017) and nationally, 4.06–4.32% (Olubimbola, 2022; Okoye, 2016; Aniekwu, Igboanugo, & Onifade, 2015; National Bureau of Statistics, 2014) to Gross Domestic Product (GDP). The firms ensure sustainable environment, and support social development as well as providing work-force employment in many countries (Innocet and Raphael, 2020; Ameh and Daniel, 2017; Okoye, 2016 and Olarewau and Akinpelu, 2014). More significantly, they are now used as instrument or yardstick through which the good or ill health of the nations’ economies are measured and monitored (Innocent, 2019; Nakhon, 2012; &Ibronke, 2003).

Therefore, performance of construction firms’ is now becomes an area of serious concern to both public and private sector clients (Okigbo, Saidu, Ola- awo & Adamu, 2020). The responsibility of achieving foregoing success in the construction firms largely associated with their effective performance.

A. Construction Firms Performance

Researchers have different views on firm performance for instance; construction firms’ performance have been described as capability to meet with agreed requirements such as cost, time allocated, quality required and quantity estimated (Presetya, Natalia & Stella. 2020; Sevilay & Beliz, 2017). It involves the ability to accomplish accepted tasks or responsibilities within pre-determined criteria (Emmanue, 2014). Saeed and Asghar (2012) affirmed that CFs performance is a measure of input and output that involves efficiency and effectiveness, leading to a favourable return to firm goals. It is explained as the ratio of the projected unit rate to the accomplished task within acceptable gauges i.e. time, cost, speed, and quality. It further viewed as a measure of the relationship between predetermined or expected standards and actual results chieved at hand (Shehata & Gohary, 2011). Although, Presetya, Natalia, & Stella (2020); Sevilay and Beliz (2017) have consider firms’ performance as capability to meet with agreed requirements such as cost, time allocated, quality required and quantity specified. However literature revealed that construction firm performance can be influence, determined, regulated at three different levels, namely, external level, organisational level or employees’ level in particular construction managers (Nosizo, 2016).

B. Construction Manager

Unlike many organisations whose performances are enhanced by new emerging technologies; CFs are still labour-intensive (Yona, Raphael, and Eunice, 2015). This is because the firm largely depends on human resources to carry out its major activities (Okoro, Musonda, & Agumba, 2017). Thus, in terms of importance among human resources in CFs, Construction managers were ranked higher than other employees because they are the brain behind the informed decisions needed for the firm to survive in a dynamic and highly competitive market environment; the decisions that cannot be easily replicated (Ghada, 2021; Nassereddine, Schranz, Bou Hatoum & Urban, 2020; Osuizugbo, 2019).

Construction Managers (CMs) are set of employees that utilised principles of management process through subordinates to ensure efficient and effective utilisation of resources toward accomplishing the predetermined goal (Administrative Staff College of Nigeria, 2018 (ASCON); Nusrat et al., 2015). They are usually graduates from higher institutions such as universities, polytechnics, and colleges; they are expected to receive adequate training in sciences, technology, and management principles. Construction managers oversee the overall execution (planning, design, and production management) of construction projects, utilising their managerial, scientific, and technological skills to efficiently and effectively manage and utilisation of all resources for optimum performance. They are responsible for planning, organising, directing, and controlling the resources and events or programmes (Muhammad, Sheheryar, Muhammad, Sonia, & Muhammad, 2021). They are ultimate basis and active agent of production; while others resources are passive factors. They are unique assets that cannot be easily replicated by other competitors, CMs’ form the brains behind the informed decisions needed for the CFs’ survival in the volatile and highly competitive markets (Ghada, 2021; Nassereddine, Schranz, Bou Hatoum & Urban, 2020; & Osuizugbo, 2019)

It is knowledge that skilled managers are innovative, capable of delivering complex or demanding projects for better competitive advantage (Emmanuel, 2014). Qualified construction manager ensure optimum resource utilisation, effectiveness and ensure continuous improvement to attain maximum firm success (Nesphor, 2015). Thus, achieving a competitive advantage by CFs largely depends on the quality of managerial resources available in the firm (Muhammad, Sheheryar, Muhammad, Sonia, & Muhammad, 2021). The quality of services offered by construction firms depends largely on the quality of management resource firms possesses. Therefore, success of CFs largely relay on quality of construction managers’ performance.

C. Construction Managers’ Performance

Construction Manager Performance is defined as an ability of a manager to accomplish tasks or responsibilities within predetermined standards; it is concerned with work achievement after exerting effort. It also involves conduct or actions demonstrated by the manager that can be measured in relation to the degree to which they contribute to job success (Jagero and Komba, 2012). The dynamic nature of construction firm is one of the major contributors to managers' performance being historically poor for a long time (Liphadzi, Aigbavboa, &Thwala, 2018; Ronan & Thomas, 2012; Hirsh & Carter, 2001).

These make coordination of construction activities more complex; thus, managers’ roles become harder; thereby affecting firm performance (Riham & Tarik, 2020). Due to intricacy of the construction firms’ activities, the CFs required experienced construction managers with adequate management and leadership competence to manage it various complicated activities.

The foregoing concept has revealed that construction managers play fundamental role in supporting and ensuring CFs’ success. These added concerned and aggravated the interest of management stakeholders in the firm to continuously develop construction managers’ competency for better performance which lead to search for new technique that could enhance construction managers’ performance (Smith, Johnson, & Anderson, 2019; Hassan & Abdussalam, 2016).Consequently, this demand for internal reform towards creating alternative, innovative approach and systems that can enhance managers’ competency for better performance. In search of new methods to enhance construction managers’ competency for better performance, this study adapted Management Development (MD) programme.

D. Concept of Management Development

Before exploring the definitions of management development, it is important to review the meanings of the constituent parts of management development separately. The concept of management development involves composite aspects of improving managers’ capability in a workplace where different form of trainings and developments techniques are bringing or combining together to prepare managers to take up core management duties and greater responsibilities (current or future) in a workplace. It encompasses various constructs such as development, education and training intervention in a work organisation, the three terms complement one another on the one hand and how they differ on the other to improve managers’ performance.

1) Definitions of Management Development

According to Aliya (2018), Harlan (2016); Chris (2014), and Cunningham (2012), Management Development (MD) is a prominent area of human resource management (HRM) and a subset of human resource development (HRD). MD involves systematic and ongoing development initiatives through which manager competence are enhance using integration of on-the-job and off-the-job in a firm to aid the manager to perform optimally (Harlan, 2016). Researchers have different views on the perception of MD; as a result, various names are used to refer to MD, namely: Executive development, management training, management education, and continuous management improvement, but the term MD is used more frequently in the current literature (Victor, 2012; Burgoyne, Hirsh, &Williams, 2004; Hirsh & Carter, 2002; IES, 2001).

Victor (2012) described MD as a strategic plan that provides managers with opportunities to transform previously learned theories into actual work requirements. Rameshbabu (2017) expressed MD as a useful tool for creating managers who are sufficiently competent to take on new responsibilities and higher-level jobs and preparing managers to be ready for replacements in the event of vacancies. In addition, Lerra and Oumer (2017) defined MD as a programme that enables managers to learn organisation oriented knowledge and advance in their organisational hierarchy in sufficient quantity and quality.

2) Categories of Management Development (MD)

There are controversies and variations in researchers' views on the classes of MD. These views resulted in various classifications of MD; therefore, the context and practise of MD vary considerably among practitioners, researchers, and across various organisations (Atiya, 1994). In light of the above backdrop, management development is classified into various forms (Khurana, Khurana, and Sharma, 2009). According to the Institute for Employment Studies (IES) (2001), MD can be organisation-driven, i.e., informal, outsourced, or formal. The informal or active learning type of MD includes induction, coaching, and mentoring methods. These methods are vivid for developing relevant practical experience and skills and provide deep-seated changes with a coherent view to make the manager more flexible and fit into the busy work life, which is difficult to achieve through formal methods. While the formal form of the MD programme has defined contents, durations, and predetermined goals, both are detailed and clear to the trainer, trainee, and employer (Aidash, 2013). Formal MD is described as a planned programme established based on the identified needs through performance appraisal (SweSwe, Linda, and Neil, nd). With formal MD techniques, managers attend programmes outside the work environment for a certain period, or they will be present at a workplace and learn on a part-time basis. Formal MD intervention programmes comprise MBAs, conferences, seminars, education, and workshops (Ronan and Thomas, 2014; Hortovanyi and Ferincz, 2014). The method can be outsourced in diverse ways through professional institutions, business schools, commercial training, and small training partnerships (IES, 2001).

According to Farah, Wan-jamallah, Norizah (2015), and Enga (2017), the most popular MD methods used by firms are grouped into on-the-job and off-the-job, on which the study is based.

Off-the-Job development techique, is a form of development carried out outside the work environment or within the work place but not part of everyday activity, aims to enhance current and future managers' job’ requirements. The programme focuses more on the theory, concepts, and principles of management. It is typically a structured programme with a formal approach with the aid of professionals in related fields (Oyeyemi, 2013).

According to Yikeber (2016), the Off development method usually takes place either outside al work environment or within but completely off-normal job to allow full attention on learning, focus more on theories, provide learning documents or text material, and support autonomy of expression. The programme usually takes place in formal, organised, or established institutions that have been specially equipped and staffed for both managerial and technical training with a view to enhancing the capability of their manager and organisation at large.

Off-the-job MD programmes are carried out through various techniques, such as lectures, role play, field visits, sensitivity or T-group training, and discussion methods. Other techniques include conferences, seminars, simulation (basket exercise, case study, management, or business game), and brainstorming methods; these include vestibule training and adventure learning (Victor, 2012; Anthea, 2016). Furthermore, off-the-job MD techniques encompass professional and career development, instructor-led classroom discussions, and instructional activities (Ronan and Thomas, 2014).

Off-the-job MD methods are designed to impact manager job requirements; for instance, they provide managers with a frontier management concept, establish managers’ scientific research basis (both qualitative and quantitative skills), promote analytical thinking and problem identification and solving skills, encourage open-mindedness, and serve as a means of integrating interdisciplinary knowledge. Off-the-job training supports communication skills, time management, interpersonal skills, and social skills. More importantly, off-the-job training improves manager decision-making abilities in an integrated manner to resolve complex issues and develop leadership skills (Mostafa, Oluwaseun, and Aydin, 2020; Krebt, 2017; Anabela, Alves, Leão, and Senhorinha, 2016; Chiang and Lee, 2016). Off-the-job approach emphasises theories and concepts and also the pursuit of objective knowledge about management issues that can be applied in a relatively scientific and rational manner. It creates management scientists capable of analysing and applying theoretical principles to address a problem (Burgoyne, Hirsh, and Williams, 2004).

Similar to off-the-job MD methods, on-the-job MD methods are designed to improve managers’ job requirements in the workplace, like CFs; for instance, on-the-job methods promote managers' potential talents, increase managerial retention, develop job-related skills, and impact competencies in younger managers. Other on-the-job learning objectives are to ensure manager readiness for replacement, take on higher positions and responsibilities, help enhance managers’ experience on various job challenges, thus gaining a wide variety of knowledge and skills across various functions, and broaden managers’ outlook on various activities in a firm. Furthermore, on-the-job training helps top management identify their successors by providing junior management with a practical outlook on decision-making. This method assists the manager in accumulating wisdom and experience while improving communication skills, behaviour, and performance (Mulatu & Jeilu, 2018; Kazi, 2017; Farah, Wan-jamallah & Norizah, 2015; Nusrat, Sandhya & Fehmina, 2015). Foregoing has a strong influence on manager overall performance in a given organisation, like a construction firm. On-the-job approach seeks to emancipate managers to have a critical level of reflection that enables managers to become reflexive about their knowledge, develop new modes of action, and formulate practical action. The technique goes a long way towards promoting the learning and development of practicing managers, who can quickly adapt to and learn from the situation to address complex management practises for meeting future firms’ needs (Hirsh and Carter, 2002; Burgoyne, Hirsh,, & Williams, 2004).

Conclusion

This study evaluates reasonable relationships between the concepts of MD and CMs’P. It is apparent that the underlying definitions of MD and CMs’P were diverse there were aspects of convergence or corresponding similarity that supported harmonies between the two concepts. The outcome of this study are the result of a process of studying various MD and CMs;P philosophy in order to identify mutually corresponding criteria. Overall, review shows that there are may sign that the selected MD concept correspond with the CMs’P concept to some degree in that both share a common theoretical understanding that concentrates on enhancing knowledge, proficiency, training and development. Although the MD and CMsP structure represented different aspects of research, they were nevertheless complementary references on several of scopes. Finally, the paper represents a basis that in turn may enable the search of methodological guidelines for the adaptation and practice of MD in the CFs to improve overall CMs’ performance.

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