Evaluation of incentive mechanisms on performance-based contracting systems in South Africa and Nigeria

Ogwueleka, A C (2015) Evaluation of incentive mechanisms on performance-based contracting systems in South Africa and Nigeria. PhD thesis, University of Pretoria, South Africa.

Abstract

This thesis focuses on evaluating the use of incentive mechanisms for improving project performance in construction projects in South Africa and Nigeria. The literature review reveals that there is no existing framework or model for adopting incentive mechanisms in construction projects in both countries. Most incentive schemes adopted in construction projects are usually focused on achieving a single performance metric. This has led to overinvestment of one‟s effort in one area at the expense of other performance metrics. This study advocated the need to incorporate the key performance metrics, such as cost, time, quality and safety/health in incentive mechanisms and develop a framework for incentive mechanisms targeted towards improved performance. The study further investigated on the sociological and operational constructs for evaluating performance in relation to incentive mechanisms. The literature review established that human social interactions play a significant role in achieving project success; these interactions are governed by workforce behaviour and are measured using sociological constructs. Likewise, the operational activities can significantly influence the attainment of performance goals. To achieve the research aim and also address the research problem, the study adopts these specific objectives: to assess the impact of incentives on employee motivation and identify positive motivational drivers that bridge the gap; to evaluate the sociological and operational constructs of performance in relation to incentive mechanisms; to appraise the economic impact of incentive mechanisms; and to adopt the research outcomes to model for incentive payoffs and develop a framework for incentive mechanisms. An explanatory sequential approach of mixed methods research approach was adopted for data collection which is based on ontology and epistemology philosophies. First, a quantitative survey was conducted using a stratified probability (random) sampling technique. The findings from the questionnaire survey were then transformed into semistructured questions for case study interviews. Second, a qualitative survey was conducted using non-probability (purposive) sampling technique. The outcomes from the questionnaire survey and case study were adopted to develop a framework for incentive mechanism consisting of three components. Results of the validation process revealed that the top ranked economic challenges associated with the use of incentives can be resolved through the implementation of the developed framework for incentive mechanisms. This thesis recommends the need to develop a software programme incorporating the three components of incentive mechanism framework for effective usage.

Item Type: Thesis (Doctoral)
Thesis advisor: Maritz, M J
Uncontrolled Keywords: Nigeria; South Africa; bridge; case study; economic impact; employee; motivation; probability; project performance; project success; questionnaire survey; safety; workforce
Index terms: Nigeria, case study, project success, mixed method, social interaction, interaction, implementation, incentive payoff, epistemology, project performance, sampling, survey, philosophy, ontology, programme, motivation, literature review, performance metric, interview, performance-based, South Africa, economic impact, validation, questionnaire, construction project
Subjects: sociology, project controls, philosophical studies, performance measurement, education and knowledge transfer, project management theory and practice, professional development, knowledge theory, data analysis and analytics, data collection methods, financial analysis, behavioral psychology, Geography, production management, psychology, economic analysis, contractual arrangements
Topics: Human Resources, Time Control, Information Management, Research Practice, Business Strategy, Cost Management, Quality Management, Project Management, Geographical Context, Procurement
Descriptive scope: 5 PCTEA

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