An investigation into the relationship between the corporate culture of South African construction firms and performance

Poor capacity, poor quality, low productivity and low profit margins continue to characterize the majority of South African construction firms. These shortcomings are attributable to poor cultural practices that are often associated with construction firms. In an effort to devise strategies intended to improve the performance of South African construction firms, this research report investigates the relationship that exists between the corporate culture and performance of South African construction firms. An in depth literature review that identified the key corporate culture dimensions that are critical for the success of construction firms was undertaken. Literature advocating for the existence of a positive relationship between corporate culture and business performance was also explored. To ascertain the level of importance attached to the various corporate culture dimensions by South African construction firms, a survey was undertaken amongst senior employees of different sized construction firms in the Gauteng region. The survey revealed that the respondents from the different sized firms were largely similar in their level of appreciation of the various corporate culture dimensions. The study found that there is generally a positive relationship that exists between the corporate culture and performance of South African construction firms. The degree or intensity of the relationship is largely dependent on the size of the organization. Small and medium sized construction firms demonstrated greater appreciation of the positive relationship between corporate culture and business performance. To improve the performance of South African construction firms, the study recommends that research and development, innovation, benchmarking and customer orientation be prioritized. The study further recommends for the development and adoption of effective human resources retention strategies, this should be coupled with appropriate mentoring and career development programme

Strategic management processes in JSE listed construction firms.

MBA thesis - WBSConstruction firms are pivotal to the growth and developmental aspirations of South Africa. For this reason, constant focus on the identification and resolution of the factors that deter South African construction firms from performing optimally is required. Strategic management has emerged as one of the management techniques that can be utilised to grow and sustain business performance. Despite its proven capabilities, strategic management is yet to permeate through the management structures of South African construction firms. A comprehensive literature that discussed the different processes encapsulated in the strategic management process was conducted. Strategic tools and techniques, deliberate and emergent strategies and the application of strategic management in the context of construction firms were also highlighted in the literature review. The data collection method was qualitative in nature whilst semi structured interviews were used as the research instrument. A total of nine interviews were conducted with senior executives of six JSE listed construction firms. The data emanating from the interviews was analysed and thereafter presented as the research findings. The level of resourcing dedicated to strategic issues and the use of strategic tools and techniques was found to be low. The volatile nature of the construction industry was found to be the key factor that dissuades construction firms from planning for the medium to long term. Construction firms were found to be reactive and placed greater emphasis on operational effectiveness. The key message that this study conveys is that senior executives are yet to inculcate strategic management processes in the management of their firms. South African construction firms must embrace strategic management as an all encompassing process that encourages provocative, innovative and revolutionary thinkin