E-ISSN:2583-1747

Research Article

Construction Industry

Management Journal for Advanced Research

2022 Volume 2 Number 2 April
Publisherwww.singhpublication.com

Crisis Management in Indian Construction Industry

P Srinivasan1*
DOI:10.54741/mjar.2.2.3

1* P Srinivasan, Pg Student, Department of Management, Kongu Engineering College, Erode, Tamilnadu, India.

Construction projects typically involve a wide range of technologies, materials, and equipments, which in turn creates uncertainty and associated crises. In order to effectively resolve and prevent future crisis situations, it has been necessary for the major participants involved in construction projects, such as engineers, managers, and owners, to implement crisis management. This paper has analysed the major factors that influence the implementation of crisis management in construction projects critically. The data is gathered through a questionnaire survey of the various construction engineers, managers, and owners. Statistical tools are used to identify and analyse the most important variables. Supplier relations, manpower availability, design changes, time contingency, management strategies, crisis management team unavailability, safety issues, and environmental factors are all included in this category.

Keywords: construction, projects, crises, supplier relationship

Corresponding Author How to Cite this Article To Browse
P Srinivasan, Pg Student, Department of Management, Kongu Engineering College, Erode, Tamilnadu, India.
Email:
P Srinivasan, Crisis Management in Indian Construction Industry. Manag. J. Adv. Res.. 2022;2(2):15-18.
Available From
https://mjar.singhpublication.com/index.php/ojs/article/view/15

Manuscript Received Review Round 1 Review Round 2 Review Round 3 Accepted
2022-04-05 2022-04-15 2022-04-25
Conflict of Interest Funding Ethical Approval Plagiarism X-checker Note
Non Nil Yes 10.22

© 2022by P Srinivasanand Published by Singh Publication. This is an Open Access article licensed under a Creative Commons Attribution 4.0 International License https://creativecommons.org/licenses/by/4.0/ unported [CC BY 4.0].

Introduction

Demonstrating the nation's infrastructure relies heavily on the work being done on construction projects. Because of the length of time involved and the wide range of sectors that will be affected by the project's completion, long-term initiatives like these are rife with complications and unknowns. As is inevitable in any process involving complicated circumstances, these uncertain events frequently lead to crisis. During a crisis, an organisation appears to lose the ability to perform complex situations with regular practises. As the name suggests, crisis management is a process that involves taking small, incremental steps over time in order to avoid or minimise the consequences of any given crisis. Due to the many complexities involved in the construction process, construction projects are more susceptible to crisis situations. Crises can be managed with the least amount of harm by any organisation that employs effective crisis management strategies. Construction companies must have a crisis management plan to deal with any issues that arise. Attempts have been made in this paper to implement crisis management in construction projects by identifying the various factors that could lead to crisis situations in construction projects. This study, as stated above, aims to identify the factors that could lead to a construction project crisis. Various engineering and management personnel involved in the construction industry were asked to complete a questionnaire survey in order to identify the factors.

Literature Review

The research has been carried out with the help of literature study made from various literatures related to crisis management implementation in construction projects. The literature findings revealed about the characteristics of crisis and decision making with the help of leadership styles (Abdullah et al., 2014), crisis management in Turkish construction industry during economical crisis (Emin et al., 2006), learning process involved in crisis management for complex organizations (Lagadec P. 1999), crisis preparedness for effective crisis management in construction companies (Loosemore M. 2000), the development and application of situational crisis communication theory in protecting organization reputation during a crisis (Coombs W. T. 2007),

crisis management model and recommendation system for construction industry (N. T. Nguyen, 2013), nature and management of crisis in construction projects as projects-as-practice observations (Markus and Timothy, 2007), planning for crisis management in project management (Mallak and Kurstedt, 1997), Communication and organizational crisis management (Seeger et al., 2003), applicable vision, mission and effects of strategic management on resolving crisis (Pinor Altiok, 2011), crisis management in planning and media relations for design and construction industry (Reid J. 2007), crisis management from global crisis to national crisis in case of European Union Countries (Paula et al., 2013), preliminary study on improving efficiency of Government crisis management (Wei wang, 2011), Anatomy of organizational crisis in contingencies crisis management (Hwang P. and Lichtenthal, 2000), importance of crisis communication in effectice crisis management of construction projects (Michal Vondruska, 2014) and approaches and process for innovative crisis management in construction projects (Selim et al., 2015).

Research Methodology

Objective

Identifying major factors that influence implementation of crisis management in construction projects is primary goal of this study

Scope

Construction project owners, engineers, and managers only are focus of this investigation.

Data Collection

Questionnaire surveys are used to gather data from owners, engineers, and management staff involved in various construction projects. Thirty statements about factors governing crisis management implementation in construction projects made up second half of this questionnaire, which included demographic information about respondents. They are asked to rate their experiences with crisis management in construction pro. on 5-point scale.

Descriptive Statistics

There were 134 valid responses from various owners, engineers, and managers involved in construction projects in southern India after questionnaire survey was completed.


Factors Considered for the Study

Factors that influence the implementation of crisis management in construction projects will be studied using findings from literature and real-time observations.

  • Supplier relationship
  • Material costs
  • Government norms
  • Financial aspects
  • Manpower availability
  • Crisis prediction
  • Information system
  • Design changes
  • Change or appointment of managerial personnel
  • Contingency plan
  • Control over possible human errors
  • Feedback on field operation
  • Satisfactory employee performance
  • Cultural differences
  • Psychological counselling
  • Scheduling variances
  • Hostile client approach
  • Learning from past
  • Contractors performance
  • Safety issues
  • Environmental factors

Analysis and Discussions

General

The statistical software tool SPSS (Statistical Package for Social Sciences) is used to analyse the data.

Reliability statistics

Cronbach's alpha method is used to examine the reliability of the data before it is analysed. This is a common technique for determining whether or not the data is reliable. Cronbach's alpha value of 0.839, as suggested by Nunnaly, showed a high degree of internal consistency in the results (1978).

Principal Component Analysis

It is possible to reduce large set of data to smaller number of variables using principal components analysis. Components analysis aims to explain as much variance as possible with as few as possible primary components. The Kaiser-Meyer-Olkin measure of sampling adequacy is used to ensure that sample size is adequate prior to analysis. The sampling adequacy was found to be 0.728, which is acceptable. Since data is spherical, it can be reduced using Barlett's sphericity test. SPSS software was used to extract data, and initial eigen values were used to measure variance. In principle components analysis, varimax extraction technique was used for rotation. We started with 30 factors, but after eliminating those with low loadings, we now have 8 major factors. Following are some of most important considerations that were made.

  • Supplier relationship
  • Manpower availability
  • Design changes
  • Time contingency
  • Management strategies
  • Crisis management team unavailability
  • Safety issues
  • Environmental factors

Table 1: Principal Components Analysis

FactorsNo. of factorsEigen valuesPercentage varianceCumulative Percentage variance
Supplier relationship55.33817.79317.193
Manpower availability54.14913.83131.625
Design changes42.3067.68739.312
Time contingency31.7165.71845.031
Management strategies41.5215.06950.100
Crisis management team unavailability41.3244.41454.514
Safety issues21.2214.06958.582
Environmental factors31.1053.68462.266
KMO Measures of sampling Adequacy: 0.728Bartlett’s test of sphericity: Chi- Square Value: 1362.754

Mean Score Analysis

Mean score analysis of identified significant factors is carried out using descriptive statistics method of frequency distribution.


The following paragraphs go over the findings of the mean score analysis.

Table 2: Mean Score Analysis

FactorsMean scoreStandard deviationCo efficient of variation
Supplier relationship2.630.6960.265
Manpower availability2.290.6780.296
Design changes3.660.8950.245
Time contingency2.790.7250.256
Management strategies3.050.4710.154
Crisis management team unavailability3.530.9760.276
Safety issues2.060.7530.365
Environmental factors2.620.6750.258

The unavailability of the crisis management team and design changes have the highest mean scores of the eight major factors, with a combined score of 3.66. Managerial strategies, time contingency, supplier relationship, environmental factors, manpower availability and safety issues are all included in the following sections (2.06).

Conclusion

According to the findings of this study, eight major factors govern the implementation of crisis management in construction projects: supplier relationships, availability of manpower, modifications in the design, time contingency, strategies for managers, absence of a crisis management team, safety concerns, and environmental considerations.

In addition, descriptive statistics were used to calculate the mean score. Changes in design and a lack of a crisis management team were found to have the highest mean scores when analysed alongside other significant factors.

Consequently, owners, engineers, and managers of construction projects view design changes and the lack of a crisis management team as critical factors in crisis management implementation.

References

1. Coombs W. T. (2007). Protecting organization reputation during a Crisis: The development and application of situational crisis communication theory. Corporate Reputation Review, 10, 163-176.

2. Emin Ocal, Emel Laptali Oral, & Ercan Erdis. (2006). Crisis management in Turkish construction industry. Building and Environment, 41, 1498–1503.
3. Genti Beqiri. (2014). Innovative business models and crisis management. Procedia Economics and Finance, 9, 361-368.
4. Granville King. (2002). Crisis management & team effectiveness: A closer examination. Journal of Business Ethics, 41, 235–249.
5. Hwang P, & Lichtenthal JD. (2000). Anatomy of organizational crisis. Contingencies Crisis Management, 8, 29-140.
6. Ian I. Mitroff, Paul Shrivastava, & Firdaus E. Udwadia. (1987). Effective crisis management. The Academy of Management Executive, 1(3), 283-292.