Ogwueleka, A C and Udoudoh, F P (2018) The impact of risk and reward dynamics in incentive compensation plans in the Nigerian construction industry. International Journal of Construction Management, 18(3), pp. 247-259. ISSN 1562-3599
Abstract
There is a general concern of adopting incentive compensation plans to motivate employees effectively. The major focus is to ensure that risks and rewards are commensurably and fairly distributed among contracting parties to achieve specific project objectives. The paper assesses the how risks and rewards can be combined together in a compensation plan within the Nigerian construction industry. An exploratory sequential approach was adopted in the research survey. The research findings reveal the most critical risk factors as financial stability, contract conditions, environmental factors and bank interest rate. The most important factors in rewarding for the key performance indicators were identified as measurement and correction of works, reasonable claims of extension of time, minimize defects and response to incident rate. The study provides an insight on how to combine risks with rewards in an incentive compensation plan. The paper recommends that project practitioners should consider the use of incentive plan by incorporating risk factors to achieve efficiency in project delivery.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | incentive compensation plans; Nigerian project performance; risk elements |
| Index terms: | incentive plan, environmental factor, interest rate, practitioner, stability, survey, construction industry, compensation, project delivery, dynamics, risk factor, project performance, contracting party, efficiency, contract condition, key performance indicator |
| Subjects: | data collection methods, dispute resolution, practitioner, environmental science, project delivery, economic analysis, management, structural engineering, contract structure, performance management, project management theory and practice, industry analysis, environmental hazards, systems engineering |
| Topics: | Legal Issues, Quality Management, Human Resources, Contract Administration, Business Strategy, Engineering Principles, Research Practice, Project Management, Roles and Professions, Sustainability, Procurement |
| Descriptive scope: | 4 PCTE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here